A model of maturity for the board is a tool that helps determine how well your board of directors is managing itself. Its goal is to assist the board members improve their performance and make the business more successful. The process typically involves an online questionnaire that is self-administrated and then a discussion with consultants to interpret the results. Most models employ a three-to-five level scale to evaluate different aspects of the performance of your board. The first level is described as impromptu, with no formal standards or alignment. The third and fourth levels are more defined and contain processes.
The most important characteristic of any maturity model is the way it is designed to prioritize learning for your board. Knowing the current level of maturity of your board allows you to easily determine the skills you’ll need to acquire in the future. Some models include generalized estimates of how long it will take to move to a higher level (e.g. “A level change can take about six months and a 25% decrease in productivity”.
The majority of boards start at the lowest level of maturity and are the ones that are reluctantly acquiescent who know their responsibilities and personal risk. They are reluctant to dedicate more time and resources than necessary to governance because it distracts them from their ‘proper’ jobs of managing.
They are the ones who must be made to accept that governing is a separate, distinct job from executive management. It requires training and assessment, as well as the appropriate funding. It is a risky activity that tests your imagination and understanding, as well as the willingness to take calculated risks in a complex and interconnected world of economics and politics.
www.healthyboardroom.com/is-your-team-ready-to-handle-a-board-crisis/
Leave a Reply