Setting Goals for Your CEO

Step-by-Step Guidance for setting up goals for your CEO

Link the chief executive’s annual goals to the organization’s strategy, vision, and mission and keep them measurable and focused on results.

1. Focus on Results linked to the Vision of your Organization

Boards often do a great job working with the chief executive to develop the strategic plan but don’t always take the next step to tie the annual goals of the chief executive to the agreed-upon plan.

Consider one key result that, if not accomplished in the coming year, would put the strategic plan at risk. Goals build on each other. It may be that a three-year goal must be broken into annual actions to be achieved. The process of goal setting can also help the board consider how to achieve their own goals.

Many boards attempt to identify all the activities and behaviors they expect the chief executive to perform rather than isolating the key results required for the success of the organization. Effective goals focus on one or a few targeted results or outcomes. Keep in mind that an activity — implementing a new marketing plan, for example — or a behavior — such as communicating effectively — is a means to a result. Activities and behaviors are important, but they aren’t usually impactful on their own. They are a path to impactful results and results are what the board is tasked with assessing.

Identify the three most important result-oriented goals. Some boards then find it helpful to pause and ask: Are these the three goals that above all others need to be accomplished? Are these goals the ones the chief executive should be held accountable for or should any of them be assigned to a board committee or member?

2. Consider if the Goals are Sustainable and Balanced

An organization can improve its sustainability in a variety of ways. Profitability can be achieved by increasing contributed or earned revenue or by laying off staff, eliminating services, or postponing initiatives. Consider asking these questions during the goal setting process:

• Are we achieving these results at the detriment of other results?
• For how long will these results make our organization sustainable?

3. Identify Auxiliary Goals for Others to Accomplish

When identifying goals for the chief executive, it’s important to realize that their success in attaining results often depends on others meeting related sets of goals. These auxiliary goals support the chief executive’s goals, and are the responsibility of others, such as the board. Examples include goals related to a capital campaign or the introduction of a plan to diversify the board. These goals, like the chief executive’s, should also be based on results, not activities. The chief executive will set auxiliary goals with the staff.

4. Scan for Potential Obstacles or Hurdles

If your organization developed a strategic plan recently, it’s likely that an environmental scan identified the external and internal factors that can impact the organization. Using that information, while also incorporating fresh impressions and data, identify potential obstacles or hurdles that may prevent the chief executive from achieving their goals. Identifying these obstacles or hurdles will help the board understand what needs to be supported and funded to enable the chief executive’s success.
The chief executive should be included when goals are being set. This allows them to participate in the process, buy into the results, or raise concerns as to why they may not be achievable, align the work, and put everyone on the same page.

5. Clarify Metrics and Dates

It’s essential to include metrics or measurements and due dates in the chief executive’s goal statements so it is obvious when the goals have been met.

6. Cascade and communicate the goals throughout the Organization

Cascading the goals through the organization creates horizontal and vertical alignment, helping to minimize conflict and build interdependent focus on outcomes. The chief executive can cascade the goals throughout the organization to ensure goal achievement.

Goal setting is vital to not only the chief executive performance evaluation process but, more importantly, to the long-term success of the organization. When goals link to the organization’s strategy, vision and strategic plan, are results-oriented, measurable, balanced, and agreed to by the board and the chief executive, the board’s work at performance evaluation will be more easily achieved,

This resource, initially written by Joyce Henderson, Ph. D., has been revised and updated.

101 Resource | Last Updated September 4, 2025