Strategic Planning in the Small Business

Unit 6
TP
6-5(continued)

OUTSIDE

BOARD MEMBERS'

CHARACTERISTICS

DISADVANTAGES:

* Supplement

the skills and information

of

management team.

* May frequently

skip meetings

due to more

pressing demands.

" Limited

availability beyond

regular board

meetings.

" Limited knowledge

about firm's

internal

affairs.

• Limited knowledge
  about the industry and

technology.

*

Possible conflict-of-interest

problems.

" May

have a lower degree of

dedication to the

success of the firm.

• Expensive

* Some studies

suggest that the number

of out­

side directors

is inversely proportional

to thi.

success

of the firm.

376