How to Run a CAO Performance Review

A CAO performance review is one of the most important conversations a Council will have this term. Done well, it builds trust, clears up expectations and helps the CAO grow. Done badly, it leaves friction that lasts for years.

Guillermo has been the CAO in the room with Council, and has been through a full 360 review himself (feedback gathered from Council, from the people who report to the CAO, and from the CAO's own self-assessment). This guide sets out what works. It builds on the free CAO Performance Evaluation Toolkit from the Canadian Association of Municipal Administrators (CAMA), which we recommend every Council read.

One thing first. A performance review is not a termination process. If Council is thinking about the CAO's future, that calls for a different conversation, and for independent legal and HR advice.

1. Treat it as a year-round process

The review is the summary of conversations that have already happened, not a surprise. Regular check-ins through the year keep expectations current and make the annual review easier. Some Councils add short quarterly reviews, in March and June for example, so goals that stop being realistic can be adjusted early. There is no single national rule. In some provinces and territories an annual review is required by legislation. In British Columbia it is not, but a review is usually written into the CAO's employment contract, so check the contract first, then your own provincial Act. Confirm your closed-meeting and privacy rules with your corporate officer or solicitor before you start.

2. Let the CAO start the process

CAMA's model starts and ends with the CAO. Before anything begins, the CAO meets the Mayor to propose the approach. Settle these questions at that meeting:

• Who chairs the process?
• Will a neutral third party help, or will a Council sub-committee lead?
• Which template and measures will be used? Both sides use the same one.
• Is there a stakeholder survey?
• How do any compensation terms in the CAO's contract fit in?
• What is the timeline, with a date for every step?

The Mayor then takes these questions to Council in a closed (in camera) meeting, and reports Council's decisions back to the CAO. Everyone then knows the plan before it starts.

3. Agree the goal before you write a question

Three goals work well: build trust between the CAO and Council, hold the CAO accountable for shared expectations, and support the CAO's growth as a leader and manager. The process itself should be candid, inclusive, comparable from year to year, and a complement to the CAO's other measures, such as annual objectives or a mandate letter (a short letter setting out Council's expectations of the CAO for the year).

Have Council confirm these goals and check that its priorities show up in what gets asked.

4. Decide who gives feedback

A balanced 360 hears from:

• All members of Council, including the Mayor
• The CAO's direct reports
• A small group of staff one level further down (six to eight works well)

External stakeholders see only part of the CAO's work. Their view is valuable but different, so hear from them in interviews rather than in the survey. Report results by group, not by person, and combine comments so no one can be identified. In a small organization, agree before anyone answers how groups of fewer than five will be handled.

5. Use numbers and conversations together

A short survey gives you comparable numbers. Interviews give you the reasons behind them.

• The survey: about ten minutes, one scale, two open questions. Use the same scale every year so results can be compared.
• The interviews: about 45 minutes, confidential, with a short list of questions.
• The CAO's self-assessment: the CAO completes the same template first, so Council can compare views.

Organize the survey around themes Council recognizes: how the CAO leads themself, leads others and leads the organization, how the CAO works with Council, and how the CAO manages process and budget. Ask about behaviours people can actually observe. Keep factual yes-or-no items, such as whether the CAO attended a conference, in the self-assessment.

A caution from CAMA: numbered ratings alone can hide more than they show, because some people grade hard and others tick the top box. Use numbers for comparison, and make sure the written comments and the conversation carry the real feedback.

6. Interview questions that work

• What were the CAO's most notable accomplishments this year, and what made them possible?
• What should the CAO keep doing?
• What would you like the CAO to do differently?
• What should the CAO focus on developing next year?
• What should the CAO's most important organizational goals be?

Ask people to be specific and to give examples. Specific feedback is the kind a CAO can act on.

7. Keep HR out of it, and use a neutral party

Councils often lean on the HR director for expertise, but HR reports to the CAO, which puts them in an awkward position. The Clerk can support the process on Council's behalf.

A neutral third party removes that problem. They run the survey and interviews, keep responses confidential, read every comment before it is shared, and report by group. People are more candid with someone outside the organization, and the CAO hears the message without the messenger. CAMA's view is that the cost is small next to the cost of a breakdown in the Council and CAO relationship.

8. The 360 itself takes about eight weeks

Running the survey and interviews at the same time keeps the 360 itself to about eight weeks:

• Week 1: Council confirms the goals and participants. The Mayor or sub-committee confirms the template. The CAO is briefed.
• Week 2: Finalize the survey, invitations and interview schedule.
• Weeks 3 to 4: Interviews.
• Weeks 4 to 5: Survey open, with reminders. Every member of Council completes it by the close date.
• Week 6: Analysis. Every comment is reviewed before it is shared.
• Week 7: Report. Debrief the CAO, then the Mayor and the committee chair.
• Week 8: Debrief Council in camera, then meet with the CAO to discuss the report and sign it off.

Allow time before this for the CAO's information package and the Mayor and Council planning meetings, and time after it for goal setting. CAMA's sample calendar for the whole cycle runs from mid-August to early December. Start from the date Council wants the results and work backward. Count the eight weeks from the day Council confirms the process, not from the day the idea is raised. A missed Council meeting or a holiday period can add two to four weeks.

9. Debrief in the right order

Once the report is ready, hold four conversations, in this order:

1. The CAO first, in private. There are no surprises, and the CAO has time to take it in before anyone discusses it.
2. Then the Mayor and the committee chair who sponsored the process.
3. Then Council, in camera, without the CAO. Council decides how feedback will be discussed, what to do with comments raised by only one person, who chairs the conversation, and what outcome it wants. Any compensation decision is made here, following the terms in the CAO's employment contract.
4. Then Council and the CAO together, in camera, to discuss the report and sign it off.

The joint meeting should be a conversation, not Council reading out opinions. The CAO files the signed report. Agree what will be said publicly and what actions will follow. Performance feedback stays in confidence, and nothing else from the closed meeting is discussed outside it.

10. Give feedback well, then set goals

• Give feedback early. Don't save it up.
• Don't use the review to vent.
• Say what outcome you want, not only what went wrong.
• Ask how the problem started, and involve the CAO in the fix.
• Be honest in praise too. A glowing review followed by a call for change leaves everyone stunned.

Then finish with the future. Set goals for the coming year that are specific, measurable, assigned, realistic and time-bound, and tie them to Council's strategic plan. CAMA suggests at least two meetings: one for Council's vision and priorities, then one to approve the CAO's goals. A mandate letter is a good way to record them. Then check in partway through the year, and ask everyone what to improve next time.

Working with us

Ferrero Forward runs CAO performance reviews built on this approach. If you would like to talk about a review for your Council, book a no-cost conversation.

Further reading: the CAMA CAO Performance Evaluation Toolkit is free from the Canadian Association of Municipal Administrators. First published in 2017 and updated in 2023, it includes a CAO guide, a Mayor and Council guide, a sample template and a mandate letter.