How a Board Chair Can Set First-Year Actionable KPIs for a New CEO
When a new CEO steps into a nonprofit leadership role, the first year is both a learning period and a critical time for building momentum. One of the most important responsibilities of the Board Chair is to provide clarity, direction, and measurable expectations — and that starts with setting meaningful and actionable KPIs (Key Performance Indicators). Well-crafted KPIs not only give the CEO a framework for success, but also create accountability and alignment with the organisation’s strategic goals.
Here’s how a Board Chair can go about establishing strong, actionable KPIs for a new CEO’s first year:
1. Begin with Strategic Alignment
Start by reviewing the organisation’s current strategic plan. Every KPI should map directly back to one or more strategic priorities. If the nonprofit is in a growth phase, KPIs might focus on revenue expansion, infrastructure, or staff development. If it’s a period of consolidation, the focus might be on sustainability or improving impact measurement.
Tip: Ask: What does success look like one year from now?
2. Engage the Full Board
While the Chair leads the process, input from the full Board ensures broad alignment and buy-in. Use board meetings or a dedicated performance subcommittee to discuss key organisational needs and how the CEO can drive results in year one.
3. Focus on Achievable, Measurable Goals
First-year KPIs should be ambitious but realistic. They must be specific, measurable, achievable, relevant, and time-bound (SMART). Consider setting KPIs across a few key domains, such as:
- Financial sustainability (e.g., meet or exceed fundraising targets)
- Team leadership (e.g., complete an organisational structure review)
- Stakeholder engagement (e.g., meet with top 20 donors and partners)
- Strategic execution (e.g., develop a 3-year operational roadmap)
- Board relations (e.g., conduct a successful board retreat or orientation)
4. Prioritise Learning and Culture
Remember, the first year is also about listening and learning. Include KPIs that encourage the CEO to understand organisational culture, staff dynamics, and community relationships. Examples include conducting a 90-day listening tour, initiating employee feedback loops, or engaging in DEI strategy development.
5. Build in Regular Check-Ins
Performance shouldn’t be evaluated once a year. Set quarterly or biannual checkpoints where the Chair and CEO meet to review progress, revisit priorities, and adjust KPIs as needed.
6. Document and Formalise
Once KPIs are agreed upon, document them clearly and include them in the CEO’s performance agreement. This transparency creates accountability for both the CEO and the Board.
Setting thoughtful KPIs is one of the most important ways a Board Chair can support a new CEO. It’s about setting the tone, defining success, and empowering the CEO to lead with clarity. Done well, it builds a strong foundation for trust, results, and long-term impact.
