Most large companies have the resources and processes to manage the traditional “build, invest or buy” decisions of their organization and execute on deliverables to grow their businesses. For “build” decisions, R&D and product development units are skilled at creating new products and services using the latest technology. For “investment” or “buy” decisions, well-staffed finance, corporate development (M&A), and corporate venture capital (CVC) teams are in place to work on acquisitions and external investment opportunities.

But why is “partnering” not also a consideration in those “build, invest, or buy” decisions when corporations are pursuing growth, innovation and transformation opportunities? In part,

Over the past 15 years, Venadar has helped structure or support Corporate Venture Capital groups (“CVCs”) at a range of Fortune 500 companies, each looking to invest in start-ups to gain strategic
insights and a competitive edge. We have shared best practices for launching, funding, fueling, and managing CVCs. Yet sadly, over time, we have seen many CVCs that have failed to fully deliver on the goals and objectives that were fundamental to their creation, and that have failed to evolve with the times as corporate growth and innovation efforts moved away from financial venture investments toward strategic partnerships and

Companies should take a “dual approach” to strategic planning that balances an internally oriented planning process led by management with an externally oriented process led by a Strategic Planning Committee of the Board of Directors.

A Harvard Business Review article by Jeffrey Sonnenfeld commented that “The highest-performing companies have extremely contentious boards that regard dissent as an obligation and that treat no subject as undiscussable.”

Having served, advised, and served on over 50 Boards of Directors over my career, I am constantly reminded that while the primary function of every Board is to work with management to develop, refine, and evaluate