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01. LEADERSHIP COMPETENCIES
Company's proficiency in essential leadership skills necessary for effective decision-making, team management, and organizational success. This section aims to assess a candidate's ability to inspire, guide, and drive forward initiatives within an executive or managerial role.
- How would you rate the executive team's ability to articulate a clear and compelling vision for the organization's future?
- How effectively does the executive team demonstrate strategic thinking in their decision-making processes?
- To what extent does the executive team display strong communication skills, including active listening, clarity, and transparency?
- How well does the executive team adapt to changes in the business environment and industry trends?
- How would you rate the executive team's ability to foster a culture of innovation and creativity within the organization?
- To what degree does the executive team exhibit emotional intelligence in their interactions with employees, stakeholders, and peers?
- How effectively does the executive team collaborate and work together to achieve common goals?
- How well does the executive team demonstrate resilience and problem-solving skills in overcoming challenges and setbacks?
- To what extent does the executive team empower and develop their direct reports and teams?
- How would you rate the executive team's ability to inspire and motivate employees to perform at their best?
- How effectively does the executive team manage conflicts and resolve disputes within the organization?
- To what degree does the executive team demonstrate integrity and ethical leadership in their actions and decisions?
- How well does the executive team delegate responsibilities and empower others to take ownership of their tasks?
- How would you rate the executive team's ability to navigate and lead organizational change initiatives?
- To what extent does the executive team seek feedback and continuously strive for personal and professional development?
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02. BOARD
Effectiveness of the board members and their decision-making process. The assessment aims to identify areas of improvement in terms of governance, risk management, and strategic planning.
- Are board members formally oriented to the mission as well as the programs and activities of the organization?
- Are board members informed about programs and activities of the organization both in orientation as well as periodically throughout the year so that they are able to make informed decisions based on current activities and emerging challenges facing the organization?
- Does the board review the mission statement regularly and compare it to the activities and programs of the organization to ensure that the organization’s resources are being expended in fulfillment of the mission?
- Does the board maintain contemporaneous records (minutes) of meetings and keep the records indefinitely in an easy-to-access location for ready reference? Do the board meeting minutes document the decisions made, highlighting the major points of fiscal or strategic import, but not detailing the discussion? What is the level of quality keeping, following and resolving these records?
- Are decisions/actions of committees that have authority to act in place of the full board also recorded contemporaneously?
- What is the level of quality of board operating procedures for such actions as elections and removal of board members, notice of meetings and amendments by laws?
- What is the level of quality of spokesperson designated by the board for communication(s) with the media? Are other board members aware that they should not speak to the media but should refer inquiries to the spokesperson?
- Does the board explore options before arriving at a decision? Does the board ask: “What could go wrong? What will we do about it? How will we pay for it?”
- Are there attendance policies in place and enforced for board members who fail to participate?
- Is the board comprised of a diverse group of members who represent a broad range of expertise, experience, professional and socio-economic, geographic or cultural backgrounds?
- Are board members “independent” meaning that they receive no compensation and have no familial or business relationship with each other or the nonprofit?
- Are board members provided with regular financial reports well in advance of meetings so that they can read the reports and bring their questions to the meetings?
- Are quorums reached for meetings, and is the requirement of a quorum enforced?
- Do board members stay informed about the organization’s activities? Are background materials provided in advance of each meeting? Do board members ask questions and seek clarification on matters before them?
- Does the board have a conflict of interest policy? Is the policy followed?
- What is the level of quality of the board process to facilitate board members’ disclosure of conflicts of interest, such as a conflict questionnaire that is circulated at least annually?
- Does the board engage in a thoughtful process of approving the compensation of the CEO and key employees, that includes comparing the CEO’s salary and benefits to other staff leaders in organizations of similar budget size, similar mission and program activities and in a similar geographic area? What is the quality of the process, documentation and adherence?
- Is the board made aware of the organization’s policy to protect whistleblowers and the process for employees or clients/consumers to raise concerns and for the organization to address complaints?
- Is the board aware of the organization’s document retention and destruction policy?
- Is the board aware of the organization’s personnel policies and that they apply to the board’s role as supervisor of the CEO/executive director?
- Is the board aware of the insurance coverage the organization has that is applicable to its own conduct?
- Is there a process of (board approval)/(to inform the board) of contracts with vendors and independent consultants that will inform them both who is being contracted with as well as the compensation/payments made?
- Is the board informed about restricted grants to the organization and advised upon their fulfillment consistent with the terms of the restrictions?
- Is the board aware of the process of reaching agreement with donors relating to unusual or non-standard gifts, such as through the use of a gift agreement policy?
- Does the board review state and federal filings whether or not the review is prior to their being filed with the state or government?
- Is the board aware of the organization’s policy to protect whistleblowers?
- Is the board aware of the organization’s policies to retain certain documents and only discard or destroy the organization’s business documents in accordance with a document retention/destruction policy?
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03. ACCOUNTS
Financial transactions, accounting practices, and financial reports of an organization. The assessment aims to ensure accuracy and transparency in financial reporting.
- Before approval of transactions involving expenditure of funds, does the board ask, “Is this the best use of our resources?”
- Are proper books and records kept of all transactions?
- Do the accounts comply with requirements for external scrutiny?
- Are accounts formally approved at an annual meeting?
- Are incoming receipts banked promptly and regularly?
- Is the safe custody ensured for all valuables held on premises?
- Are keys of safe or cash box signed for and is in the company proper management of work with cash?
- Is insurance held to cover contents of safe or cash box?
- Is all incoming money banked and no amounts held over for petty cash feeding/replenishment?
- Is a written statement of banking and custody procedures available to all staff and volunteers?
- Are there controls over receipt books?
- Are regular checks made to ensure records are accurate?
- Are regular checks made to ensure no discrepancies between records?
- Are checks made by someone other than the original recording officer?
- Are any restrictions placed on donated income identified and observed?
- Are all expenditures properly authorized? Is there supporting documentation required and maintained for all expenditures? What is the quality level of control all account expeditures?
- Are check books kept in secure place with access only by nominated persons?
- Is the preparation of payments undertaken by someone other than the authorizing officer?
- Is a written statement of policy and practice on payment procedures available to all staff and volunteers?
- Are regular bank reconciliations carried out?
- Are instructions to open or close accounts properly authorized and/or reported?
- Are checks made to ensure that there are no dormant accounts?
- Are bank statements regularly inspected by officers not assigned bookkeeping duties?
- Are cross checks made between bank records and the income and expenditure records?
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04. FINANCE
Financial management practices, including budgeting, forecasting, and investment decisions. The assessment aims to identify opportunities for improvement and optimize financial performance.
- Are annual budgets prepared and approved to cover both income and expenditure?
- Is performance measured against budgets at regular intervals?
- Do the professional development of company includes building strong relationships with banker(s), creditor(s) and other important financial professionals in community and industry?
- It is common for all members of the board to read and interpret financial statements and reports.
- There is full understanding the causes of low profits such as inadequate expense control, high interest and low sales volume.
- The company has the ability to analyze the causes and effects of these problems and the capability of calculating key financial ratios and determining trends affecting business growth.
- Prices are appropriate by industry standards, accepted by customers and ensure profitability. Fixed and variable costs are reviewed and updated periodically.
- Company has the capacity to accurately assess financial needs for growth, understand the impact of fast growth on each area of corporate operation, and assess the effect of growth strategies on the company’s debt structure and debt servicing capabilities.
- Company’s professional responsible for record-keeping and financial statements is knowledgeable about sources of financing. Tax records and regulations are updated and documentation stored for convenient retrieval.
- Financial statements are prepared in a timely manner and are used to diagnose positive and negative conditions affecting operation. All information required for business valuation is retained and updated.
- What is the level of control of cash management techniques allow effective monitoring of accounts receivable, customer payment and deposits, collections, etc., e.g. cash not required for operations is invested, etc.
- Credit policies are established and enforced for all customers. Financial stability is established before credit is extended. Payment policies allow the firm to take advantage of discounts offered by vendors.
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05. LEGAL
Compliance with legal regulations and internal policies. The assessment aims to identify areas of risk and ensure legal compliance.
- Does legal counsel review all contracts, orders, and license and service agreements?
- Do you always use a standard, verified contract?
- Do you limit your liability in all contracts to avoid consequential loss, punitive damages, stipulated damages or liquidated damages?
- Do you include warranties and other disclaimers in your contracts and promotional material?
- Do all disclaimers and limitations of liability in your contracts conform to applicable legal requirements in terms of typeface and content?
- Are all warranties specific and realistic?
- Do your contracts include a severability clause, arbitration clause and “force majeure” wording?
- Do you include RFPs and contract performance obligations?
- Do you confirm whether or not critical employees are expected to be present throughout the course of the contract?
- Are your contracts specific regarding agreed-upon definitions, performance specifications and obligations, timetables, dealing with changes and dispute resolution procedures?
- Do you document any changes made to product and service specifications and deliverables?
- For longer-term contracts, do you conduct a thorough risk assessment of the entire project?
- Do you communicate plans to discontinue producing a product or to discontinue its service to all customers?
- Do your contracts limit your liability in the event one of your outsourced suppliers fails to deliver as promised?
- Do you carefully review the prior liabilities and loss experience generated by any organizations being considered for merger or acquisition?
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06. HUMAN RESOURCES
Practices related to employee recruitment, retention, development, and engagement. The assessment aims to identify areas of improvement and optimize workforce performance.
- Recruitment methods include procedures that ensure the company interviews and hires employees who are qualified to play a role in the future goals of the firm.
- Employee policies are established, known by employees and assure legal compliance. Job descriptions and organizational charts have been developed. The latter allows communication to flow from the bottom up as well as from the top down.
- Company policies, record-keeping and employee training allow the business to continue operation without interruption regardless of illness, vacation or other absence.
- Employee policies, benefits, insurance and training procedures are reviewed at a minimum annually.
- Policies and actions comply with local, state and federal laws.
- Motivational methods, remuneration and management style is sufficiently effective to limit turnover. Time management and productivity analysis is used to improve operations and is included in all employee performance reviews.
- Are Personnel records kept and held separately from wage records?
- Are wage/salary levels properly authorized and recorded?
- Are checks made to verify existence of employees?
- Are cash payments avoided wherever possible?
- Are staff employed in compliance with state/federal regulations?
- Are background checks completed, particularly for staff assigned financial duties?
- Is a plan held showing organizational structure to employees and there is regular update of org. structure presented to employees?
- Are lines of authority and reporting laid down in writing and communicated to all staff?
- Are all staff including volunteers given proper training?
- Is professional advice taken where appropriate?
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07. STRATEGY
Strategic planning and execution processes. The assessment aims to identify areas of improvement and optimize the organization's overall strategic direction.
- How would you rate the extent to which the organization's values are clearly defined and consistently communicated by the executive team?
- To what degree does the organizational culture foster open communication and transparency among employees?
- How well does the executive team promote diversity, equity, and inclusion within the organization's culture?
- How effectively does the executive team lead by example in demonstrating behaviors that align with the organization's values and culture?
- To what extent does the organizational culture encourage collaboration and teamwork among employees?
- How would you rate the organization's commitment to employee well-being, work-life balance, and professional development?
- How well does the executive team handle and respond to feedback and suggestions from employees?
- To what degree does the organizational culture promote innovation, creativity, and risk-taking?
- How effectively does the executive team address conflicts and maintain a positive work environment?
- How would you rate the organization's efforts to recognize and reward employees for their contributions and achievements?
- To what extent does the organizational culture support a sense of belonging and engagement among employees?
- How well does the executive team ensure alignment between the organization's culture and its strategic objectives and goals?
- Do you have a clear understanding of your strategic objectives and how they align with the long-term objectives of your company/business?
- Are you constantly looking for opportunities to expand or diversify your business, or are you focusing on improving what you already have?
- Do you have an analysis of the competition and of the industry in general, to make sure that your strategy adapts to changes in the market?
- Are you taking current and future market trends into account to guide your strategic decisions?
- Do you have a contingency plan to address potential challenges or threats that may arise in the future and how would they impact your long-term strategy?
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08. DEVELOPMENT
R&D processes, technologies, and initiatives, including research design and data management, hardware and software knowledge, IT security, and infrastructure.
- Do you have organized your research department?
- Do you regularly revew report about the R&D progress?
- Do you have a strategic research and development plan for the future of your company/business?
- Do you regularly evaluate the performance and effectiveness of your research and development projects?
- What is the quality of formal process for the selection and prioritization of research and development projects, and does it align with your long-term strategic goals?
- How would you rate the executive team's willingness to embrace and drive innovation within the organization?
- To what extent does the executive team encourage experimentation and risk-taking to foster innovation?
- How effectively does the executive team promote a culture of continuous learning and improvement?
- How well does the organization adapt to changes in the external business environment, such as market trends, technological advancements, and regulatory shifts?
- To what degree does the executive team prioritize investments in research and development (R&D) and innovation initiatives?
- How would you rate the organization's ability to anticipate and respond proactively to emerging opportunities and threats?
- How effectively does the executive team collaborate with internal and external stakeholders to drive innovation?
- To what extent does the organization leverage emerging technologies and digital transformation initiatives to enhance its products, services, and processes?
- How well does the executive team empower employees to contribute ideas and innovations across all levels of the organization?
- How would you rate the organization's track record in successfully bringing innovative ideas to market or implementing new initiatives?
- To what degree does the executive team foster a culture of adaptability, resilience, and agility to navigate uncertainty and change?
- How effectively does the organization measure and track key performance indicators (KPIs) related to innovation and adaptability?
- How extensively are your research processes digitized, including data collection, analysis, and collaboration?1 = low rate, 10 = high rate
- To what extent are digital tools utilized for ideation and brainstorming within the R&D team?1 = low rate, 10 = high rate
- How well-integrated are your R&D systems with other organizational software, such as project management tools or collaboration platforms?1 = low rate, 10 = high rate
- What level of automation exists in your experimental and testing processes, including the use of laboratory information management systems (LIMS)?1 = low rate, 10 = high rate
- How are digital technologies used for simulation, modeling, and virtual prototyping in your R&D activities?1 = low rate, 10 = high rate
- How effectively does your R&D department leverage big data analytics and machine learning for pattern recognition and trend analysis?1 = low rate, 10 = high rate
- How advanced is your use of artificial intelligence (AI) or machine learning (ML) in the discovery and development of new products or solutions?1 = low rate, 10 = high rate
- How well are collaborative digital platforms used for knowledge sharing and communication among R&D team members?1 = low rate, 10 = high rate
- How comprehensive is your R&D knowledge repository, and to what extent is it accessible through digital channels?1 = low rate, 10 = high rate
- How well-prepared is your R&D department in terms of cybersecurity and data protection as part of digital research practices?1 = low rate, 10 = high rate
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09. LEGAL & RISK
Company's comprehension and management of legal obligations and potential risks within the business environment. This section aims to assess a candidate's understanding of regulatory frameworks, compliance requirements, and their ability to mitigate various forms of risks that may impact organizational operations.
- How would you rate the executive team's understanding of relevant legal requirements and regulations impacting the organization?
- To what extent does the executive team ensure that the organization operates in compliance with applicable laws, regulations, and industry standards?
- How effectively does the executive team monitor changes in legislation and regulations to proactively address compliance risks?
- How well does the organization manage legal and regulatory risks associated with its operations, products, and services?
- To what degree does the executive team oversee the implementation of internal controls and policies to mitigate legal and compliance risks?
- How would you rate the organization's efforts in conducting regular compliance audits and assessments to identify areas of non-compliance?
- How effectively does the executive team communicate legal and compliance requirements to employees and stakeholders?
- To what extent does the organization have mechanisms in place to address and remediate compliance violations or breaches?
- How well does the executive team ensure transparency and accountability in reporting legal and compliance-related matters to the board of directors and other stakeholders?
- How would you rate the organization's adherence to ethical standards and corporate governance principles?
- To what degree does the executive team manage and mitigate legal and compliance risks associated with third-party relationships and partnerships?
- How effectively does the organization handle data protection and privacy compliance requirements, including GDPR, CCPA, or other applicable regulations?
- How well does the executive team address environmental, health, and safety regulations relevant to the organization's operations?
- To what extent does the organization have a robust whistleblowing and reporting mechanism in place for employees to raise concerns about legal or ethical violations?
- How would you rate the organization's overall culture of compliance and commitment to upholding legal and ethical standards?
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10. COMMUNICATION
Company's proficiency in various aspects of communication crucial for effective leadership and organizational success. This section aims to assess a candidate's ability to convey ideas, information, and expectations clearly, persuasively, and appropriately across different channels and stakeholders.
- How would you rate the clarity and effectiveness of communication from the executive team to employees and stakeholders?
- To what extent does the executive team demonstrate transparency in their communication regarding organizational decisions and performance?
- How well does the executive team actively listen to and consider input from employees and stakeholders?
- How effectively does the executive team communicate the organization's values and ethical standards to employees?
- To what degree does the executive team foster an open and inclusive communication culture within the organization?
- How would you rate the executive team's responsiveness to employee concerns and feedback?
- To what extent does the executive team lead by example in upholding ethical standards and integrity in their actions and decisions?
- How effectively does the executive team address conflicts of interest and potential ethical dilemmas within the organization?
- How well does the executive team ensure compliance with ethical guidelines and industry standards?
- To what degree does the executive team promote accountability and responsibility in their communication and decision-making processes?
- How would you rate the executive team's efforts in fostering a culture of trust and mutual respect within the organization?
- To what extent does the executive team communicate the organization's strategic direction and goals to employees in a clear and compelling manner?
- How effectively does the executive team communicate with external stakeholders, such as investors, customers, and the community?
- How well does the executive team handle crisis communication and manage reputation risks?
- How would you rate the overall ethical leadership demonstrated by the executive team in guiding the organization's actions and decisions?
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11. TOOLS
Tools and technologies to support its business processes. The assessment aims to identify opportunities for improvement and optimize the use of tools and technologies.
- Are you using the most updated and effective tools and technologies to improve the productivity of your company/business?
- Do you have project tracking tools that allow you to monitor the progress of your projects and make sure that deadlines and objectives are being met?
- Do you use effective collaboration and communication tools to foster collaboration among team members?
- Do you have data analysis tools to obtain valuable information about the performance of your company/business and make adjustments accordingly?
- Are you using automation tools to simplify repetitive tasks and improve efficiency in your company/business?