Five Stages Of The Board Management Maturity Model

The concept of maturity is focused on achieving business success by improving a company’s competitiveness by evaluating its business processes’ maturity. Here is more about the board management maternity model.

What is a board management maternity model?

The maturity model of board management implies stages of development of the organization following standardized models for assessing the level of management maturity. It is determined by various characteristics, including mission, values, strategy, and organizational structure. The advantage of this model is its flexibility since it is possible to evaluate, for example, resource management within the portfolio management framework and “pull up” it without aiming at the whole company.

Today there is no single approach to determining the board management’s maturity level. Unfortunately, there is no such extensive practice that it is possible to compare the effectiveness of models in the long term.

Basic stages of the board management maternity model

There are 5 primary levels of the maternity model in the evolution of the board management:

  1. Initial level

This level is inherent in most start-ups and small companies. Doing business here is chaotic and directly related to the struggle for survival. The company, as a rule, does not have a development strategy: the main attention is paid to solving momentary tactical problems. One of the characteristic features of the initial level of organizational maturity is spontaneous information connections in the company, which are accumulated in the management and are mainly of a reference nature. The effectiveness of management largely depends on a small group of like-minded people and the leader’s personality – on how clearly he understands the goals and objectives of developing the company’s management systems.

  1. Repeatability level

At this maturity level, the board can already successfully implement the planned projects, which is achieved through strict management, operational planning, and control. Core business processes become repeatable and manageable, and they become sustainable. Companies are starting to look for ways to reduce costs and, above all, by optimizing repetitive processes. Organizations at this level are characterized by the automation of basic components, such as personnel, accounting, and wages.

  1. Level of regulation

At this level, processes become formalized and so repeatable that they can be described and documented. For example, in companies, there are descriptions of the role functions of employees within the organization or a list of tasks that an employee must perform within a particular unit. All processes are standardized, documented, and combined into a common information flow. Thanks to this, the organization has the opportunity to analyze information on all aspects of management activities.

  1. Manageability level

The organization develops internal corporate quality standards. The company has established strategic and operational relationships, and feedback is actively used for decision-making, particularly customer data. Attempts to make decisions based not only on the analysis of previous experience but also on forecasts of future development and strategic planning, taking into account trends, cause the organization to gradually move to the last, highest level of organizational development.

  1. Level of optimization

Reaching this level is extremely difficult. Here, quality management by quantitative indicators occurs throughout the chain of interrelated processes, and the modification or improvement of the system is based on the feedback results. The organization is characterized by the construction of strategic plans and optimizing ways to achieve them. The company’s strategy aims to achieve organizational, financial, and technological advantages. The current state of all branches of human knowledge and applied technologies provide many opportunities for the speedy passage of this path but requires skills and professional skills in their correct application. 

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