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The Board Management Maturity Model
How a board performs itself by the way it prepares for meetings, examines problems, creates reports and manages data – changes over time. Boards are often unaware of this, however a well-designed maturity model can help them understand and chart their development.
A board management maturity assessment is more thorough and comprehensive than an annual review. These assessments also give boards an outline of how to take them to the next level of governance maturity.
Most boards begin at the lowest level in board management maturity. They are apathetic boards who are aware of their responsibilities and public appearances but view governance as an overriding burden on their ‘proper duties in managing the company. Moving to the next level – Two Two is the initial step in moving boards away from a view of governance as a burden on the administration and towards developing home-based competence in strategic considering.
Models of maturity usually contain three to five levels which evaluate the standard of governance techniques within a business. They evaluate the effectiveness of areas like risk management and management of boards stakeholder engagement, the effectiveness of governance. The first stage, Level One is usually defined by informal processes without formal standards and alignment while the second and third stages have more clearly defined and understood methodologies. These methodologies could be based on interviews, questionnaires or benchmarking. Interviews can reveal the team’s enthusiasm and commitment to a specific procedure as well as surveys administered by a third party independent are more systematic. They also give a more balanced picture of a board’s current maturity level.
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