How a board performs itself in the way it prepares for meetings, examines issues, makes reports and handles data — changes over time. Aboards don’t know this however a maturity model can help them chart their development.
While an annual review can provide an element of objectivity in assessing governance practices, a board management maturity assessment gives a deeper and more comprehensive analysis. These assessments also provide boards with an outline of how to take them to the next level of governance maturity.
Most boards begin at the smallest level of the maturity of their management. They are boards that are and observant, who recognize their obligations and public visibility but view governance as a burden to their «real» jobs of running the business. Moving to the next level — level Two is the first step in shifting boards away from a view of governance as a burden to the company and toward developing home competence in strategic thinking.
Models of maturity are typically divided into three to five levels, which evaluate the standard of governance in an company. They evaluate the effectiveness of areas like the supervision of risk, board management involvement of stakeholder groups and the effectiveness of governance. The first stage, Level One, is typically defined by impromptu processes without formal standards or alignment, while the third and the second levels have more clearly documented and standardized methods. These methods can be based on interviews, questionnaires or benchmarking. Interviews can reveal www.healthyboardroom.com/is-your-team-ready-to-handle-a-board-crisis/ a team’s commitment and enthusiasm for particular processes while surveys administered by an independent third party are more methodical and offer more objective information about the board’s current state of maturity.