Setting the Scene for CEO Training in Perth for NFPs

In the not-for-profit sector, the CEO is the linchpin between mission and execution. Their ability to lead strategically, ethically, and effectively directly impacts service delivery, compliance, and staff morale. But while many Boards focus rightly on governance, risk, and compliance, CEO development can become a blind spot. In Perth’s NFP landscape, especially across aged care and disability services, boards must play an active role in building CEO capability.

This article unpacks how NFP Boards can support CEO training and performance development, without crossing governance lines or undermining operational leadership.

The challenge: CEO capability is often overlooked

A high-functioning CEO is essential for operational performance, regulatory compliance, and long-term organisational health. However, many Boards are unsure how to support capability development without interfering in day-to-day operations.

Inadequate CEO support can lead to:

• Missed strategic goals due to lack of execution support

• Vicarious liability for governance oversights

• Declining workplace culture and staff engagement

• Difficulty with succession due to leadership pipeline gaps

While Boards are not responsible for managing the CEO, they do have a duty to ensure capability, clarity of purpose, and performance accountability.

Why it matters: Risks to the NFP sector in Perth

In the aged care and community sectors, where compliance requirements are high and public trust is critical, underperformance at the CEO level can have outsized consequences.

According to the ACNC’s guidance on Governance Standards, Boards must ensure their organisation is run in a manner that complies with legal obligations and furthers its charitable purpose. This includes oversight of key personnel like the CEO.

A lack of structure in leadership development can:

• Undermine service delivery outcomes

• Lead to staff turnover and retention issues

• Attract scrutiny from regulators or funding bodies

• Affect the wellbeing of vulnerable service users

When leadership fails, it’s not just operational—it becomes a governance failure.

Practical strategies for boards to build CEO capability

Here are some effective ways Boards can contribute to CEO training and capability development:

• Clarify the CEO’s strategic role

  Ensure alignment between CEO goals and the organisation’s strategy. Clear KPIs linked to Board-endorsed objectives create a foundation for performance and accountability.

• Conduct structured performance reviews

  Move beyond informal check-ins. Use a formal, transparent process to assess leadership effectiveness, identify development areas, and guide goal-setting.

• Support leadership development opportunities

  Invest in coaching, training programs, or CEO peer networks. These initiatives support growth and increase leadership resilience.

• Define an escalation pathway for underperformance

  Establish processes to raise concerns respectfully and in line with governance obligations. Clear expectations promote transparency and trust.

• Prioritise remediation over reaction

  Consider development, mentorship, or structured feedback before moving toward termination. Ethical management of CEO challenges protects organisational integrity.

• Ensure alignment with legal and compliance frameworks

  All reviews, feedback, and decisions about the CEO must align with employment law and governance standards.

Key strategies include: 

• Issue escalation frameworks: Ensure there is a clear process for raising and addressing concerns about CEO performance; ensuring the incumbent CEO is aware of the consequences of sustained under performance

• Remediation before termination: If performance concerns arise, Boards should investigate whether appropriate support, training, or mentorship could resolve the issue before considering dismissal. 

• Alignment with legal and compliance obligations: CEO evaluations and potential terminations must align with employment law and governance standards to avoid legal complications. 

• Governance failures often occur when Boards either ignore warning signs or react too slowly to correct leadership issues. Foresight and structured engagement are crucial. 

Key Takeaways for NFP Boards

• CEO capability is a critical governance responsibility, not just an operational concern.

• Boards can strengthen leadership without overstepping by setting clear goals, reviewing performance, and supporting development.

• In Perth’s NFP sector, where compliance and reputation are paramount, proactive oversight is essential.

• Investing in leadership now helps avoid crisis later.

How Anson can help strengthen your governance approach

At Anson Management Consulting, we understand the nuances of governance in the not-for-profit and care sectors. Our team works with NFP Boards across Perth to enhance leadership effectiveness and governance capability.

We offer support in:

• Designing structured CEO review processes

• Facilitating Board–CEO goal alignment workshops

• Advising on succession planning frameworks

• Providing independent governance reviews

If your Board would benefit from a checklist to assess current leadership development practices, contact us today to get started.

Frequently Asked Questions

1. How can a Board evaluate a CEO without micromanaging?

Use a structured review process that focuses on strategic alignment and agreed KPIs. Avoid day-to-day operational interference.

2. Is CEO training a governance responsibility?

While not direct trainers, Boards must ensure the CEO has access to leadership development and the support needed to fulfil their role effectively.

3. What happens if a CEO underperforms?

Follow an agreed escalation pathway, start with support, coaching, and performance planning. If necessary, ensure actions align with legal obligations.

4. How often should CEO reviews take place?

Annually at minimum, with mid-year check-ins encouraged. Consistency ensures accountability and ongoing development.