Governing Innovation in Practice: The Role of the Board of Directors
I said: I am going to challenge my board! Because what is a board for?
For me, I think the board basically has two tasks:
The first one is to assure that they have a good CEO and that he performs.
And the second one is to assure that the direction is the right one for the interest of the group.
Peter Brabeck-Letmathe, Chairman of Nestlé SA1
A first look at the board's role in governing innovation raises a paradox. On the one hand, the board must manage risk, ensure stakeholder benefits, and, in general, keep the company on an even keel into the future. On the other hand, in fulfilling that mission the board is likely to dampen the company's appetite for innovations ...