1. They have different perspective on issues. They aren’t tainted by the existing board’s view on issues and haven’t been part of the politics that have created the issues.
2. They have experiences and views from other industries that may have already experienced and solved the problems or issues being discussed.
3. They have a new network of resources for the board to consult.
4. They will ask new and different questions to stimulate the board’s decision-making process.
5. You need to bring in someone who is not a specialist, but someone who has been involved in all areas of running a business.
6. They can bring a new understanding of a subject that the board does not have. Outside directors usually have a specialty (i.e. industry knowledge or skill set) they leverage to educate the boards they join.
For example, one of my specialties is tax planning and fraud detection. I help boards understand the places where they can save taxes and also places where the company might be leaking money because of fraudulent employees.