This site uses cookies to provide you with a more responsive and personalized service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Bookmark Email Print page

The model

The Business Maturity Model serves as framework to develop and build a balanced and better performing organisation

On this page you will find a short introduction into the Business Maturity Model (BMM) which forms the foundation of the BMM methodology. The first part of the model defines an organisation in five pillars and four levels of development. Other parts include the environmental analysis, performance measurement and an assessment of the ability to change. By means of one of the online Business Maturity Scans all these elements can be assessed to come to an analysis of those issues to be handled by an organisation to realise its ambition.

The pillars and levels of development of an organisation

The Business Maturity Model has been developed by Deloitte in collaboration with Utrecht University. The model describes the degree to which businesses have developed their internal organisation. This description subdivides the internal organisation into five pillars (strategy formation, organisation & processes, governance, information technology and people & culture), each pillar with four levels of development.

Level 1: Pioneer level
The first level is the pioneer level. The organisation operates with an initial vision as its most important guiding principle. The employees collaborate in an informally organised manner, which is possible because of the organisation’s limited size.

Level 2: Process level
The next level of development is the process level. The organisation begins to professionalise and to make and record process agreements by departments or teams. Within this ‘island organisation’, each unit operates with its own systems and procedures. Whilst collaboration within the units is structured, collaboration between units still takes place on an ad hoc basis.

Level 3: System level
The third level of development is the system level. The entire organisation operates with uniform processes, procedures and systems. The organisation’s various units exchange information and work together in a well-organised manner on jointly-formulated strategies and organisational objectives.

Level 4: Network level
The highest level is the network level. The organisation has involved the value chain partners in the network and collaborates with them in areas such as strategy formation, information exchange and management of the value chain. Systems, processes and procedures have been coordinated with each other both internally and externally, and there is extensive collaboration across the value chain.

The more balance, the higher the performance

Two assumptions are important:

  1. The more balanced the development of the five individual pillars (synchronisation), the higher the performance.

    The better the balance between the 5 pillars, the better the performance

  2. In highly competitive industries, companies that have a high level of development will perform better than those that are less developed. Within the public sector the level of development is also pushed upwards, but in this case due to wishes and demands from the surroundings (politics and public).

    The bigger the pressure from the environment, the higher the required performance level to be able to perform

Both assumptions have been scientifically tested. Research among different populations, as well as public as private, shows that the presumed relations between level of development and performance exist. An organisation which is in balance and has a level of development fitting the environment, is called a complexity master. These organisations perform up to 30% better than average.
Specifically this means that:

  • A balanced development on all pillars is necessary for an organisation to perform well
  • A high level of development most of the time leads to improved performance. This however depends on the environment of the organisation and the level of development the environment requires

In addition to this organisational framework BMM also includes an environmental analysis, analysis of organisational performance and the ability to change. As framework the Business Maturity Model aids with developing and building a more balanced organisation. This frequently includes the use of one of the online Business Maturity Scans to assess the current and desired level of development. Combined with an assessment of the complementary elements, it is possible to have an extensive analysis in a short time frame on those issues an organisation has to handle to realise its ambition.

Submit a request for proposal

Contact

Wim Scheper
Partner
Tel: +31 (0)88 288 12 49

BMM team

Deloitte RSS feed  Deloitte YouTube  Deloitte Google+  Deloitte Facebook  Deloitte LinkedIn  Deloitte Twitter 

© 2014. See legal for more information.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see deloitte.nl/about for a more detailed description of DTTL and its member firms.

In The Netherlands the services are provided by independent subsidiaries or affiliates of Deloitte Holding B.V., an entity which is registered with the trade register in The Netherlands under number 40346342.