A model of board management maturity is a tool that helps determine how well your board of directors is managing itself. Its aim is to assist the board members improve their performance and help make the business more efficient. The process typically involves an assessment that is self-administrated after which a meeting with consultants to analyze the results. The majority of models employ a three to five level scale to evaluate different aspects of the performance of your board. The first level is characterized as impromptu and without formal standards or alignment. The second and third levels are more specific and incorporate processes.
The most important characteristic of any maturity model is how it prioritizes learning for your board. Knowing your board’s current maturity level helps you determine what skills you need to acquire next. Certain models offer generalized estimates on how long it will take to go to a higher level (e.g. “A level change takes about six months with a 25% decrease in productivity”.
Most boards start at the lowest point https://healthyboardroom.com/how-to-choose-the-best-software-solution-for-your-data-security-needs/ of their maturity. They are the least compliant ones that understand their obligations and risks. They are hesitant to invest any more than the minimum time and resources into governance because it distracts from their ‘proper jobs’ of managing.
They are the people who have to be forced to accept that governing is a distinct and very different job from executive management. It requires professional development and assessment and the appropriate funding. It’s a risky job that tests your imagining and understanding, as well as the willingness to take calculated risks in a complex and interconnected external environment of politics and economics.
