Stocked with a spouse, a cousin, and a lawyer or accountant, it convenes annually, at best, to comply with state laws. Worse, it costs money. By taking such a lackadaisical approach, you may be missing an opportunity. A formal, independent board of directors can be a valuable resource to help with long-range planning, strategic issues, and personnel matters.
Outside directors bring a fresh perspective and new ideas.
For fast-growing companies, they provide a crucial check on hastily executed management decisions. For family businesses, they can help sort out complex relationships and hold management accountable to family members who, though owners, aren't active in the business. It's also a group of supporters and empathetic listeners who are enthusiastic and care for your success. Some owners don't realize it is feasible or that anyone qualified would be interested in serving. But any company with 50 or more employees should consider setting one up, says Ivan Lansberg, a management consultant in New Haven.