What can we learn from the OpenAI crisis? That reputation has the power to establish the value of a company.
If you are not up to date with what is happening, I suggest reading the summary made by The New York Times, in the #TheMorning newsletter. Available here.
A lowered de Sam AltmanCEO of OpenAI, through the company’s board, initiated what appears to be the biggest crisis in the technology sector of recent times.
Without further details, breach of trust was the reason given for the shutdown of one of the biggest references in Artificial Intelligence from the company that, until now, leads the Generative AI race.
What happened next was a series of mistakes, from the point of view of crisis gesture. The result? Loss of two investment funds that would provide new resources to one valuation of US$ 86 bilhes, in addition to the breach of trust and the risk of losing more than 550 employees. That’s it for now.
Before every posted word, meeting, transaction, etc., you need to take into account the impact on the organization’s image. The simple game rule: actions generate direct effects on resultsin profits.
this is how it works Reputation Economy. I already wrote an article about it here.
That said, we can learn great lessons from this crisis:
- Before making a decision, analyze the context. Apparently, the board did not consider the consequences of the dismissal and the impacts on the organization.
- Before going public, align messages with stakeholders. OpenAI’s main investor, Microsoft, was not informed about the dismissal, which intensified the crisis!
- Establish truth-based communication. The dismissal was handled on a cold note, accusing the former CEO and casting suspicion on his reputation.
- Local crises become global in 2 hours. That is what happened!
- Employees are the main spokespersons or detractors – of a company in a crisis scenario. The letter from OpenAI employees states that in a crisis, the internal public comes first.
- Altman’s departure worries OpenAI investors, proving the importance of Reputation Economy on this account.
- Timing! Crisis does not combine with slowness. The OpenAI Board remained silent on the dismissal decision, while the world crumbled around them.
- Transparncia! The reasons for Sam Altman’s dismissal were discussed by several influential company executives. The Council remained silent, increasing distrust about its own competence. And, according to The Shift newsletter, ensured that Altman became the hero of this story. Until now, much of the attention has focused on the value that was destroyed. ChatGPT is the most attractive product of a generation. If it had continued to evolve as planned, it would probably have elevated OpenAI to the position of being one of the three or four most important technology companies in the world..
Lastly, one more tip: journalist Kara Swisher interviewed Satya Nadella yesterday, for her podcast “On with Kara Swisher“. Check it out here.
