Effective Governance has reviewed over 600 boards in the 25 years. From these reviews, we have developed a way to quantitatively compare their performance with boards at a similar stage of maturity and to provide a guidance for improvement. Our maturity model is a two dimensional structured approach for describing the principal characteristics of an organisation or a project at various stages of maturity. A powerful feature of such models is that it is quite easy to assess an organisation’s current level of performance by matching it with one of the typical characteristics on a grid. An equally powerful feature is that it is very easy to see what the organisation needs to do next in order to improve its performance. It also allows an organisation to benchmark its level of maturity against other organisations, because those making the assessments have a common understanding of what constitutes a particular level of performance against each measurement category.
The Board Maturity Benchmark Model consists 19 dimensions that can be categorised into four sections:Gummibear test
- Board Structure
- Key Board Functions
- Board Processes
- Board Effectiveness
Each dimension has 5 levels:
- Formative – Governance practices are either non-existent or in the very early stage of development.
- Developing – Shortfalls in governance practices may have been identified and initial steps have been taken to rectify them.
- Acceptable – Performance and compliance requirements in governance practices are in place, but there is still room for improvement
- Advanced – Governance practices in place exceed the minimum performance and compliance requirement.
- Leading Practice – Governance practices are recognised by others to be of the highest standard.
To assess organisations within our framework we require three points of data collection:
- Firstly, a comprehensive assessment of the organisation is conducted against our framework by the Company Secretary (or someone with equivalent knowledge) via an online survey.
- The Company Secretary’s responses are reviewed by Effective Governance. This review includes an audit of relevant governance documentation with respect to the framework.
- An online survey with the board to gain agreement on the proposed current level of maturity with directors being asked to determine the level of maturity for the organisation for each dimension.
The outcome of this data collection is a report which provides an organisation with clear milestones of what processes and documentation are required to take the organisation from its current state to its future desired state.
To find out more on the process, survey and outcomes please feel free to contact us or request a proposal.