Acting on the new role
Audacious brings the supervisory board on “the curve”
The Supervisory Board's new role
The Supervisory Board
has been added a new role:
Leading radical innovation...
Competition from any know and unknown angle
The democratisation of knowledge, assets and access to finances has opened the marketplace for all parties with an idea and a passion.
Consequently, there are no longer any industry barriers and competition and disruption can come from all directions - in essence shortening the lifetime of our products significantly.
This is an opportunity and a threat. It's a fact that challenge the very fundamental theories build and rely our business upon.
Radical innovation has become the responsibility of the Supervisory Board
Whilst Core- and Adjacent innovation stays as the responsibility of the CEO, seeking the opportunities and setting the boundaries for Radical innovation has become the new role for the Supervisory Board.
Three main characteristics lift the initiative with the Supervisory Board instead of with the CEO as conventional Corporate Governance practice would state:
Challenge the Charters
As democratisation de facto has removed industry barriers, the management of radical innovation implies selecting which industry to play in - which often challenge the charter of the company.
Change of Charters - defining the company's "mission" and in the industry in which to play - is a matter for the Supervisory Board.
Size and impact:
Radical innovation initiatives are per default high impact project - and might hold significant budgets to them - which automatically call for the Supervisory Board to engage.
Successful projects are funded via either Holding or via the Balance Sheet, which again is the domain of the Supervisory Board.
Radical innovation is per definition non-operational and has its strategic focus far away for the current operation.
Therefore, to protect the current business and the radical initiatives, the two are to be separated and the roles split.
The CEO undivided attention is to be set on running, optimizing and developing the current business at Core and Adjacent level.
The Supervisory Board leading the radical innovation initiatives in a true division-X setup.
This setup ensures clear focus for all parties, removes uncertainty from the organisation, prevent the organisational immune system to attack and ensures delivery on all tasks.