Abstract: One of the most important decisions a board will ever make is the hiring of a Director/Manager. Other than a district’s general counsel and some rare additional exceptions for large special districts, the Director/Manager is the only individual the board hires and supervises. Another important consideration in hiring within special districts, the Director/Manager will report to the entire board. Having a unified board is important for the organization to move forward effectively. Clearly understanding your role as a policy maker will help in hiring that right person for day to day operation. A through understanding of the District’s unique mission and the demographics is key to hiring the right person and developing a contract that meets all of the requirements of the organization and the community that it serves. Community involvement and scrutiny are factors that could influence the board decision on compensation and other benefits in the contract for the Director/Manager. Elected officials can be swayed by public opinion and sometimes it’s hard to explain to public why an individual, using taxpayers dollars receive the types of benefits and compensation packages Within the contract, there should also be a complete understanding of how the Director/Manager is going to be evaluated. The evaluation process is important to the organization and key to the organization moving forward. One major challenge with evaluations is the amount of contact trustees have with their Director/Manager. The trustees interaction will likely occur only during board meetings which could be quarterly or monthly. A tool such as a 360-degree performance appraisal that includes feedback from a supervisor, subordinates, colleagues and customers can help trustees with evaluation process. Open communications and a vision will create an environment in which contracting and evaluating the Director/Manager will result in an effectively run district.