The Board Management Maturity Model

The way boards operate by the way it prepares for meetings and reviews issues, prepares reports and manages data – changes over time. The board is usually unaware of this, however a well-designed maturity model could aid them in understanding and tracking their growth.

While an annual review brings an unbiased approach in assessing governance practices, the assessment of board management maturity offers a more in-depth and comprehensive analysis. These assessments also provide boards an easy path to take them to the next level of governance maturity.

Most boards begin at the bottom of board management maturity. They are apathetic boards who are aware of their responsibilities and public image, but view governance as an overriding burden on their ‘proper duties of managing the company. The first step is moving the board away from viewing governance as a burden for the administrative and toward developing their own strategic thinking skills.

Maturity models typically have three to five levels which evaluate the effectiveness of governance methods within a company. They assess domains such as control of risk board management, stakeholder engagement and the effectiveness of governance. The first stage, Level One is usually established by unplanned processes without formal standards or alignment, while the third and second stages are characterized by more clearly documented and well-known methodologies. These may include benchmarking, interviews, or questionnaires. Interviews can reveal the team’s passion and commitment to a specific process as well as surveys administered by a third party independent are more systematic. They also provide a more balanced view of the board’s current maturity level.

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