What is a Board Management Maturity Model?

- 23 de maio de 2023

https://healthyboardroom.com/

A maturity model for board management is a tool used to determine how well your board of directors is managing itself. Its goal is to assist board members improve performance and make the company more efficient. The process usually involves the self-administration of a questionnaire after which a meeting with consultants to interpret the results. Most models use three to five levels to assess the various aspects of the board’s performance. The first level is characterized as impromptu, with no formal standards or alignment. The third and fourth levels are more specific and contain processes.

The most important feature of any maturity model is the way it prioritizes your board’s development. If you know your board’s current status is it is easy to identify the skills you’ll require to acquire next. There are models that provide general estimates of the time it takes to get to an individual level (e.g. “a level change is approximately six months and an increase of 25% in productivity”).

Most boards start at bottom of the maturity scale. They are the hesitantly conscientious ones who know their obligations and risks. They are reluctant to devote more time and resources than they need to governance because they are unable to focus on their more important tasks of managing.

They need to understand that ‘governing,’ an entirely different, unique and a completely different job is not the same as executive management. It requires a completely distinct level of professional development, assessment, and funding. It is a risk-taking activity that tests your understanding of the world and your ability to take considered risks against an interconnected and messy external world of politics, physical environment economics, social technological advancements and demographic trends.

Written by wadminw