The annual evaluation of the general manager is a clear duty of a cooperative board of directors. It’s a very important task. An evaluation of the general manager is an opportunity to revisit the direction and performance of the cooperative. When done correctly, the evaluation process will strengthen ties between board and manager and align management with board objectives. Here are three recommendations for improving the manager evaluations at your cooperative.
1. Evaluate What Matters Most
One challenge of manager evaluation is that potentially, there is a lot to evaluate. Further, some of the manager’s duties might be hard to evaluate or observe. If you choose criteria based on the functions of management, you might develop a list like this:
i
- Actively and accurately assesses competitive forces
- Makes timely adjustments to the changing business environment
- Helps to craft a successful strategic approach
- Develops and implements effective timelines and goals
- Budgets for current and future operating needs
- Ensures cooperative resources are available and ready for customer use
Organizing
- Effectively hires and trains high-quality employees
- Assigns resources to their best use
- Delegates managerial duties effectively
- Plans and accommodates organizational growth
Leading
- Motivates employees toward excellence
- Cultivates board relations
- Communicates with members
- Promotes the company vision
- Mentors and grooms future managers
Controlling
- Reports financial results in a clear and timely manner
- Monitors cooperative performance
- Appropriately adjusts budgets throughout the year
- Makes staffing changes when needed
- Conducts employee evaluations and gathers employee feedback
Further, you can consider the manners in which the manager conducts their self. The manager’s personal skills, attributes, and competencies might also be important. Additional criteria might include the following:
Interpersonal
- Communication Skills
- Listening
- Empathy
- Emotional Intelligence
- Working with Others
- LeadershipMentoring
- Friendliness
Technical
- Industrial Knowledge
- Marketing
- Equipment Operations
- Software Knowledge
Conceptual
- Abstract Thinking
- Problem Solving
- Adaptability
- Analysis
- Diagnosing Problems
- Forecasting and Predictions
- Decision-making
One solution to organizing all these potential criteria is to consider the stewardships of the manager. Every cooperative manager has responsibilities toward the operations of the cooperative, the board, and the members. To help further, consider if your evaluation criteria are focused on the mission of the cooperative. In doing this, better questions begin to emerge:
Cooperative
- Recruits, trains, and retains quality employees.
- Maintains and protects the functionality of cooperative assets.
- Demonstrates result-driven use of cooperative funds.
- Focuses on cooperative mission.
Board
- Provides frequent and thorough reports of cooperative financial condition.
- Communicates market opportunities and risks in a timely manner.
- Interprets market conditions affecting financial performance.
- Informs board of potential legal threats and conflicts of interest.
Members
- Actively recruits new membership.
- Is knowledgeable of individual members and seeks their input.
- Promotes the mission of the cooperative to members.
- Is focused on customer service.
2. Include Professional Development
Don’t forget that the manager is also a valuable asset to the cooperative. Your evaluation might include goals for self-improvement of leadership skills or industry knowledge. The manager might self identify some of these goals as well as other relevant criteria for the cooperative, board, and members. Questions might include:
Manager
- Mentors employees for future leadership.
- Exemplifies integrity for the cooperative.
- Listens to member-owner concerns.
- Analyzes cooperative performance and suggests needed corrections.
3. Give Evaluation the Time it Deserves
Successful manager evaluation is not an annual event – it is a year-long process. When your board approach to manager evaluation is to invite the manager in to award a bonus, or take them to lunch, or any other solitary event, you are failing to protect the cooperative. Proper evaluation starts immediately following the prior evaluation by establishing the evaluation criteria for the coming year. This is to be agreed upon by board and manager. Monthly board meetings should take time to revisit and assess the evaluation, noting evidence of performance. Executive sessions are useful times to briefly discuss management performance and discuss any needed adjustments to evaluation criteria, or management actions. At the end of the year, the board chair can ask for an evaluation from each board member and the manager. Doing this will help to elevate the annual evaluation to a constructive process for both cooperative and manager.
Park, John. “Evaluating the Cooperative Manager.” Southern Ag Today 5(5.5). January 31, 2025. Permalink
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