The Board Management Maturity Model

How a board functions – the way that it organizes meetings, looks at issues, makes reports and manages data changes over time. Boards are generally unaware of this, but a well-designed maturity model can aid them in understanding and charting their growth.

A board management maturity assessment is more thorough and comprehensive than an annual review. These assessments provide boards with a roadmap that can help them reach the next level of governance maturity.

The majority of boards begin at the lowest stage of board management maturity. These are unwillingly compliant boards who recognize their responsibilities and publicity but find governance like an imposition on their ‘proper duties of managing the company. Getting to the next level – Level Two – is the first step in shifting boards away from seeing governance as a burden to the company and towards developing their home proficiency in strategic planning.

Models of maturity typically have three to five levels which examine the quality of governance strategies within a company. They evaluate domains such as risk supervision, board management and stakeholder engagement. The first stage, Level One, is typically defined by informal processes without formal standards and alignment. However, the third and second stages are characterized by more clearly documented and understood methodologies. These techniques can be based on interviews, questionnaires or benchmarking. Interviews can reveal the team’s enthusiasm and dedication to a particular procedure while surveys conducted by an independent third party are more systematic. They also provide an accurate view of the board’s current maturity level.

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