Why Process Matters More than a CEO's Personality

High-performing boards ensure a CEO's accountability through thoughtful structure, consistent feedback, and a clear understanding of their role.

- ROOPA KUDVA

IN MANY BOARDROOMS, the conversation around CEO performance often leans heavily on personality. Is the CEO dynamic? In control? Inspiring? While these traits are important, relying solely on them or past success is a governance risk. True accountability must rest on process, not perception.

High-performing boards ensure accountability through thoughtful structure, consistent feedback, and a clear understanding of their role. When done well, this becomes a powerful tool to drive alignment, mitigate risk, and enable long-term value creation.

Start with a structured process

The foundation of CEO accountability is a structured, yearlong process, not a crisis response. It begins with clarity on what success looks like. Every year, the board and the CEO should jointly define key performance indicators covering both short-term metrics (such as revenue growth, profitability, and customer metrics) and long-term outcomes (innovation, culture, talent, and ESG).

This alignment creates shared priorities and ensures expectations are realistic, measurable, and forward-looking. It also allows for mid-course corrections if needed—due to new opportunities or external shocks. Flexibility does not mean vagueness; it means goals can evolve, but accountability remains.

The Nomination and Remuneration Committee (NRC) plays a critical role in facilitating goal-setting and overseeing evaluations. The clarity of its mandate, access to data, and quality of its discussions shape the outcome.

Both incentives and design matter