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Because the executive director is so central to the success or failure of the agency, evaluation of the executive director by the board is an important component of the board's responsibilities. But too often evaluations (and job descriptions) are undertaken only when the board has become unhappy with their chief executive. An annual, written evaluation both documents the executive director's achievements and shortcomings, and helps the executive director understand areas for improvement or where the board is insufficiently informed. Typically, a committee of the board (often the board officers) leads the evaluation process, reports on the evaluation to the entire board, and recommends salary for the next year.

Once. a Board of Directors understand the relationship between the Cooperative’s legal documents, (By—Laws, Regulatory Agreement, and the Occupancy Agreement), and the Management contact the Board can develop a system of evaluating Management’s performance. One way is by “Evaluating Management by Objectives.