Board of Directors as a Strategic Sparring Partner

Roman Lombriser ()
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Roman Lombriser: FHNW, Forrer Lombriser & Partner AG

A chapter in New Living Cases on Corporate Governance, 2021, pp 41-43 from Springer

Abstract: Abstract What role can board of directors play in the strategy process of an SME? The case of “Light-Tech” (a luxury lamp producer) shows how. The chairman and several of the other directors had bad feelings about the issue of technology replacement. Contrary to the top management team, they were not convinced that the breakthrough of the new LED technology in the market was still far away. To address this issue, the board of directors—together with the executive team—performed a scenario analysis for about 3 hours. Then, the board requested the top management team to formulate a precautionary strategy which much better prepares the SME for the pessimistic scenario. Result: 2 years later, the pessimistic scenario reveals itself as reality. By performing a scenario analysis together with the top management team, the board of directors were able to play an important role as constructive sparring partners.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:mgmchp:978-3-030-48606-8_8

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DOI: 10.1007/978-3-030-48606-8_8

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