Evaluating CEO performance: Not everything that counts can be counted

"Many management thinkers argue that it is no longer enough to do well financially; companies also need to improve the well-being of (or at least not harm) the communities in which they operate, the environment, and their employees," wrote Morten T. Hansen, Herminia Ibarra, and Urs Peyer in The Best Performing CEOs in the World, the cover story of the most recent issue of Harvard Business Review. "That's the good news. The bad news is that stellar performance on both dimensions is no common or easy feat."

Research "examined the correlation between the financial performance of leaders on our list and their social and environmental performance." The conclusion was that a new way of evaluating the performance of CEOs is needed that is "less obsessed with quarterly earnings and more focused on the long term" ... READ MORE

Released by Forbes - 21 January 2013