In the Firing Line: The impact of project and portfolio performance on the CEO
- by Melissa Centurio Lopes
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What
are the primary measurements for rating CEO performance?
For corporate boards, business analysts,
investors, and the trade press the metrics they deploy are relatively binary in
nature; what is being done to generate earnings, and what is being done to
build and sustain high performance?
As
for the market, interest is primarily aroused when operational and financial
performance falls outside planned commitments for the year. When organizations
announce better than predicted results, they usually experience an immediate
increase in share price. Likewise, poor results have an obviously negative
impact on the share price and impact the role and tenure of the incumbent CEO.
The
danger for the CEO is that the risk of failure is ever present, ranging from
manufacturing delays and supply chain issues to labor shortages and scope
creep. This risk is enhanced by the involvement of secondary suppliers
providing services critical to overall work schedules, and magnified further across
a portfolio of programs and projects underway at any one time – and all set
within a global context. All can impact planned return on investment and have
an inevitable impact on the share price – the primary empirical measure of
day-to-day performance.
Read this complete complementary report, In the Firing Line and explore what is
the direct link between the health of the portfolio and CEO performance. This
report will provide an overview of the responsibility the CEO has for
implementing and maintaining a culture of accountability, offer examples of
some of the higher profile project failings in recent years, and detail the
capabilities available to the CEO to mitigate the risks residing in their own
portfolios.
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