A board’s maturity is a tool that lets you evaluate how well your board manages itself. Its goal is to assist the board members improve https://healthyboardroom.com/five-stages-of-the-board-management-maturity-model/ their performance and make the company more efficient. The process usually involves the self-administration of a questionnaire after which a meeting with consultants to analyze the results. Most models use a scale of three to five levels to evaluate the different aspects of the board’s performance. The first level is characterized by impromptu processes without formal standards or alignment, whereas the third and fourth levels have more well-defined and documented processes.
The most important thing to consider in any maturity model is the way it is designed to prioritize learning for your board. Knowing your board’s maturity level allows you to easily determine the skills you’ll need to learn next. Certain models offer generalized estimates of the time it will take to move up one level (e.g. “A level change will take approximately six months with a 25% decrease in productivity”.
The majority of boards start at the bottom of the maturity scale. They are the hesitantly compliant ones that understand their responsibilities and exposure. They are reluctant to dedicate more time and resources than they need to governance, because they are unable to focus on their actual tasks of managing.
They need to be aware 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, evaluation, and funding. It is a high-risk activity that tests your knowledge, imagination and willingness to take calculated risks in an unorganized and interconnected external world of physical environment, politics economics, social technological developments and demographic trends.