Governance, Maturity Matrix

SubFocus Level 1 - Limited Level 3 - Basic Level 5 - Advanced
Principles Governance has little practical experience with the concept of discontinuous discovery+ Portfolios are built that include 'speculative bets' which are managed to different sets of rules Governance explicitly addresses the challenges of discontinuous discovery in all its research decisions
Board members see themselves as beyond the constraints of behavioral management Board member behaviors are managed, but after-the-fact Governance explicitly incorporates mgmt. of organizational behaviors into their own activities
Structure Governance is shared across board members with little regard for specialization, except perhaps for audit and liability Governance responsibility is segregated into types of investments The organizational structure and roles for board members is largely designed in reference to Behavior Fundamentals+ in investments
Oversight Mechanisms
 
Board members personally involved in the evaluation of investment team progress Board members authorize their delegates to perform and report back team evaluations Board members commit to arms length+ independent evaluations of R&D investments
Board members tend to follow a one-size-fits-all+ approach to evaluations Board members tailor evaluations differently for 'speculative bets', i.e., highly innovative R&D Board members commit to tailored evaluations based on the specific needs of each investment team
Sustainability (of the governance function) Governance gives little guidance on evidence gathering and risk management, except where when it makes major decisions affecting the rest of the R&D organization Governance provides guidance on evidence gathering and risk taking, but doesn't follow the guidance itself in the evaluation of R&D investments Do as I do. Governance sets the example for evidence gathering and risk management for the rest of the R&D organization.
Decision Making Authority Decisions are made based on fixed criteria (usually financial). Recipients of decisions submit to the decision Decision making authority based on the charisma or political pull of a few individuals, whose decisions are respected Implications of decisions for organizational behaviors weigh equally with other criteria. Recipients respect the decision making authority

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