Strategic Planning in the Small Business

Unit 6

TP 6-6

INSIDE

BOARD

MEMBERS'

CHARACTERISTICS

ADVANTAGES:

* Superior,

pertinent

technical backgrounds

" Demonstrated

leadership

ability

• Immediate
  availability

*

Dedication

to the firm's

success

* Comprehension

of

needs and attitudes

of company's

stakeholders

* Meets

legal requirements

"

Knowledgeable

of firm's

affairs, technology

and industry

DISADVANTAGES:

* Must report

to CEO

• may be
  intimated to
  question him

* May

not be able

to be objective

on some

matters

* More

narrow backgrounds

(generally)

* Weakens

the board's

independence

*

Lesser degree

of stakeholder

and society

representation

• Does
  not provide
  checks and
  balances

Ford,
Roger H. Boards
ofDirectorsand the Private!y
Owned Firm - A
Guidefor Owners, Officers,
andDirectors. Thb.
2.2 p. 24. Copyright

Quorum,

1992. Reproduced
      with permission of Gmenwood
      Publishing Group,
      Inc., Westport, CT.

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