What is a Board Management Maturity Model?
A board management maturity is a tool that lets to assess how your board is managing itself. Its objective is to help board members improve performance and make the company more efficient. The process typically involves a self-administered questionnaire and a subsequent meeting with consultants who interpret the results. The majority of models employ three to five levels to assess the various aspects of the board’s performance. The first level is characterised by impromptu processes without formal standards or alignment, while the third and fourth levels have more identified and defined processes.
The most important thing to consider in any maturity model is how it is designed to prioritize learning for your board. Knowing your board’s current maturity level allows you to easily determine which skills you’ll need learn in the next. Some models provide generalized estimates of the time it will take to move to a higher level (e.g. “A level change will take approximately six months, with a 25% reduction in productivity”.
The majority of boards begin at the bottom of the maturity scale those who are grudgingly obedient who know their responsibilities and personal risk. They are reluctant to allocate more time and resources than necessary to governance, because it takes them away from their actual tasks of managing.
They must realize that governing, an entirely different, unique and completely different job is not the same as executive management. It requires a totally distinct level of professional development assessment, funding, and evaluation. It is a risky activity that tests your understanding of your imagination, creativity and willingness to take considered risks against a messy and interlinked external world of physical environment, politics economics, social technological developments and demographic trends.