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Over time, the way in which a board conducts itself – how it prepares for its meetings, looks at issues, makes reports, and manages changes, data, and other information. The board isn’t aware of this, but a maturity model can help them chart their progress.
While an annual review can provide a good level of objectivity to evaluating governance practices the assessment of board management maturity provides a deeper and more comprehensive analysis. These assessments provide boards with a roadmap that will help them reach the next level of maturity in governance.
The majority of boards start at the smallest level of board management maturity. They are boards that are willingly compliant, who understand their responsibilities and the public’s exposure but see governance as an imposition on their ‘proper jobs’ of running the business. The first step is moving board members away from a view of governance as a burden for the administrative, and towards developing their own strategic thinking skills.
Models of maturity are typically divided into three to five levels which assess the level of governance in an organization. They evaluate the effectiveness of areas like control of risk, board management engagement of stakeholder and governance effectiveness. The first stage is typically established by impromptu methods without formal standards or alignment, while the third and fourth levels are more firmly documented methodologies. These methodologies could include interviews, questionnaires or benchmarking. Interviews can reveal the team’s commitment and enthusiasm for certain procedures while surveys conducted by an independent third party are more systematic and provide a more balanced view of a board’s current level of maturity.
www.healthyboardroom.com/five-stages-of-the-board-management-maturity-model/