Is Your Co-op’s Leadership Up to Par? How to Build a Strong Evaluation Process

For co-ops, conducting regular evaluations of executive management is not just about tracking performance; it’s about upholding democratic values and ensuring leadership remains aligned with the overall cooperative. An evaluation process provides an opportunity to assess how well leadership is meeting the goals of the co-op, strengthens transparency and member engagement, and encourages growth for both individual leaders and the cooperative as a whole.

Without regular evaluations, co-ops may miss opportunities to address leadership challenges or fully exercise the participatory principles of a co-op.

‍Below are a few common questions we hear from our clients about executive management evaluation:

‍Q: First things first, who actually does executive management evaluation? 

A: Executive management review is a Board responsibility.

The evaluation of executive leadership is ultimately the responsibility of the Board– remember, the Board is responsible for oversight of management. If your cooperative is too small to have an elected Board, then your membership will be responsible for this task. The Board (or membership)  then typically delegates the evaluation process to a committee. The committee – who do the work of gathering feedback, interpreting it, and making recommendations – are the body who own the actual evaluation process. The committee facilitates the actual process of getting the evaluation done, but the Board retains final accountability for making decisions based on that feedback.

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Q: To include or not to include direct reports?

A: Either works!

One question we often hear is whether staff who report directly to executive leadership should be included on the executive evaluation committee. While there can be concerns about potential bias, or whether the reporting structure would influence feedback, including direct reports can actually add valuable insights. These members will have firsthand experience working with leadership and can offer a unique perspective on the day-to-day dynamics that might not be captured by Board members alone. What’s especially important here is ensuring that employees have a safe method of expressing that feedback. This may be less of a concern for committees that perform more of a management role, but regardless, the bedrock of a strong evaluation process is safety in expressing feedback – both positive and negative.

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Q: Can my cooperative include non-Board members on the committee? 

A: Yes!

One of the benefits of board committees is that they allow the board to pull other employees of the company into the work of the board. We encourage committees to be inclusive of non-board members, particularly if there is a logistical or strategic reason to include them. For example, if your cooperative has an HR Director or someone whose role is related to personnel, they should probably be included in a committee related to evaluation. This can be a great way to gather diverse perspectives and ensure that feedback is as comprehensive as possible. Again, the final responsibility for executive evaluations remains with the Board, even if non-Board members are involved.

‍Q: What tools can my cooperative use to gather feedback about our executive management?

A: We encourage cooperatives to use similar processes to evaluate their executive managers as are used with all employees at the company.

That being said, it is often wise to find broader and wider reaching ways to gather feedback as an executive manager's role and impact is often expansive. For example, you could implement a feedback survey, or conduct short interviews with key staff and the manager's direct reports. Make sure that the metrics your executive managers are being rated against are clear – Do they have a job description? Does your company use behavioral anchors or another performance management system? 

We encourage evaluation committees to gather feedback on the strengths and accomplishments of the executive manager, their areas for improvement, and the general behavior and approach of the individual. A performance evaluation should also include next steps – this might look like a development plan to address areas that need improving, or a plan for how the cooperative might invest in the manager's future growth through professional development. 

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Q: Any other advice?

A: Here are a few tips:

• Consider bringing in an outside advisor or professional to support the board in the evaluation process. A third party can reduce some of the stress of evaluating one's boss. 
• Create a culture of ongoing productive feedback. A once-a-year evaluation is not the place to give small scale feedback, but rather to think about someone's overall performance. The board should build in other ways to give feedback to the executive manager regularly. 
• Write it down. Make sure that a final evaluation report and development plan are written and filed in the company's records appropriately. The board may want to revisit the report to remind themselves of the plan that was made with the executive manager. 
• Don't forget, the board should also plan to evaluate itself! 

‍Conclusion: Balancing Inclusivity and Effective Accountability

As you think about your executive evaluation process, the main goal should be to balance inclusivity and accountability. This process isn’t just about assessing performance; it’s an opportunity for co-ops to practice their democratic governance principles and make sure the co-op has opportunities to evaluate their leadership. 

If you’re looking to enhance your co-op’s executive evaluation process or build a more robust leadership structure, reach out to the ICA Group. Based on our decades of experience with successful worker co-ops across the country, we can offer technical support to ensure your co-op’s leadership is transparent, accountable, and aligned with your values. Reach out to explore how we can help strengthen your governance and build a more sustainable, democratic workplace.

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