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From http://www.nytimes.com/2006/10/15/business/yourmoney/15frien...

But the board also lost sight of the task at hand, according to Kent Lindstrom, an early investor in Friendster and one of its first employees. As Friendster became more popular, its overwhelmed Web site became slower. Things would become so bad that a Friendster Web page took as long as 40 seconds to download. Yet, from where Mr. Lindstrom sat, technical difficulties proved too pedestrian for a board of this pedigree. The performance problems would come up, but the board devoted most of its time to talking about potential competitors and new features, such as the possibility of adding Internet phone services, or so-called voice over Internet protocol, or VoIP, to the site.

The stars would never sit back and say, ‘We really have to make this thing work,’ ” recalled Mr. Lindstrom, who is now president of Friendster. “They were talking about the next thing. Voice over Internet. Making Friendster work in different languages. Potential big advertising deals. Yet we didn’t solve the first basic problem: our site didn’t work.”




It's unclear why that should be a board-level discussion in the first place. I doubt board meetings at Amazon or Google involve people benchmarking performance.


Because it was killing the company. The reason board meetings at Amazon and Google don't involve people benchmarking performance is that the sites are competently run. But anything that is putting the company's future at risk is a legitimate question for the board to talk about.




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