An innovative Board set a Tone for Culture of Innovation.
There are different types of boards around, some Boards are "working Boards" and have to provide hands-on advice, information, and oversight; other Boards have a more strategic purpose in advising the corporate oversight. Many Boards are often stuck with a view of the rear mirror mindset, looking at the past quarter results, supervising the audit, and reviewing a budget of the coming months. Does Board overall spend enough time on planning for the future -that means dealing with innovation choices?First and foremost, the board must be able to understand, advise, and vote on any material innovation, whether technology driven, or not: The role of board directors and executives in the drive for innovation is to take a long view on corporate strategic planning, innovation needs to be key element in strategy, and BoD challenges the organization to consider three tiers of planning: 1) short term (managing today’s business profitably), 2) medium term (evaluating how to extend or grow the core business within a 3-5 year timeline), and 3) explore innovation and opportunities for transformational business directions for the long-term viability of the business (look at investment scenarios which can dramatically and positively distinguish the success of the organization for decades to come.). BoD as monitors and mentors are a devoted team aligning corporate strategy with shareholder expectations.