The Power of a Board Skills Matrix
Any successful organisation relies on a strong, capable board to steer it toward growth and resilience. But how do you ensure your board has the right mix of skills to meet your strategic goals and governance obligations?
That’s where a Board Skills Matrix can be a powerful tool – enabling you to assess and optimise your board’s collective expertise.
What is a Board Skills Matrix?
A Board Skills Matrix is a framework – usually in a chart or spreadsheet format - that evaluates the qualifications, knowledge, and experience of your board members.
It maps out the capabilities required by the board to successfully govern the organisation, matching them up with the skills of each board member, and identifying any gaps that need to be filled.
The completed matrix becomes a vital tool to guide decisions about training, recruiting new members, or reorganising the board to ensure it is balanced and effective.
Think of it as an audit for your board’s skill set - one that ensures they’re equipped to tackle challenges and drive your organisation’s success.
Should Your Organisation Have One?
For businesses, not-for-profits, and other organisations, having and disclosing a Board Skills Matrix is more than a good idea - it’s a governance best practice. It ensures your board can fulfil its responsibilities while staying aligned with your organisation’s mission.
It also allows investors and stakeholders to benefit from greater clarity and insight into the board's expertise and capabilities.
Importantly, for ASX-listed companies, a skills matrix is a compliance requirement. But beyond compliance, it’s a roadmap for building a well-rounded, future-ready board.
What Should Be Included in a Board Skills Matrix?
A good matrix includes skill categories that are relevant to your organisation, such as:
Strategic Planning and Leadership
Corporate Governance
Risk Management and Compliance
Financial Expertise
Legal Knowledge
Qualifications
Business Development
Industry-Specific Knowledge
Marketing Experience
Project Management
Emerging priorities like Sustainability, Technology, and Diversity
How is it Created?
Once the essential categories have been decided, each board member should be asked about their experience and strengths. This can be done through surveys, interviews, or self-assessments.
These skills are then listed alongside the relevant category in the matrix, allowing you to spot any skills gaps or overlap. This gives you insight to where improvements can be made - such as adding new members with specific expertise.
What Benefits Can a Board Skills Matrix Bring to Your Organisation?
By ensuring your board members possess a diverse range of skills and experience aligned with your organisation’s goals, you benefit from:
Improved Governance: A diverse and balanced board enhances decision-making and oversight.
Strategic Alignment: Identify skills critical for achieving your goals, such as technology expertise for digital transformation or sustainability knowledge for ESG initiatives.
Succession Planning: The matrix helps you pinpoint gaps and plan for future appointments or upskilling opportunities.
Stakeholder Confidence: Demonstrating your board’s collective expertise inspires trust in investors, donors, or clients.
Ready to maximise your board’s potential? MJSP’s governance consulting services can guide you in establishing a Board Skills Matrix. We can also support with board setup, training, and review, refining practices, reviewing constitutions, and much more. Give us a call to discuss elevating your governance today.