A model of board management maturity is a tool that helps determine how well your board of directors manages itself. Its objective is to help board members improve performance and help make the business more successful. The process typically involves an online questionnaire that is self-administrated, followed by a consultation with consultants to analyze the results. Most models employ a 3-to-5 levels scale to assess different aspects of the performance of your board. The first level is characterised by unplanned processes without formal standards or alignment, while the second and third levels have more clearly defined and documented processes.
The most important aspect hop over to this web-site of any maturity model is the way it prioritizes the board’s learning. Knowing your board’s maturity level helps you determine which skills you’ll need learn next. Some models also contain generalized estimates of the time it takes to move up the level at which you are currently (e.g. “a level change is approximately six months and a 25% productivity reduction”).
Most boards start at the low end of the maturity scale. They are the reluctantly compliant ones that understand their responsibilities and exposure. They are reluctant to devote more time and money than is necessary to governance because it is a distraction from their actual tasks of managing.
They must be taught to realize that governing, an entirely different, unique and a completely different job is not the same thing as executive management. It requires a completely separate level of professional education assessment, funding, and evaluation. It’s a risky endeavor that tests your imagination, understanding and willingness to take calculated risks in a complicated and interconnected external world of economics and politics.