Innovation Strategy for Renewal and Growth

Innovation is the driving force for the successful development of the family enterprise in a dynamic economy. All important aspects of the business strategy have to be “somehow” included in the agenda of the board. The question is: what can the nonexecutive board members contribute to this discussion and what should, therefore, be the details of the board agenda? We visualize the situation of a normal board with a good portion of nonexecutive board members and the duty of supervision as well as advice. It should be noted that among the German family enterprises we are finding more and more “Strategy Boards.” This strategy board is not involved in the supervision or the approval of annual reports or financial transactions. The strategy board acts parallel to the supervisory board. It deals with topics of strategic interest to the management and/or the owners of the enterprise and contributes its advice to those decision-makers.