Business Communication and Character

Even the best communication can’t contain this much damage. The OpenAI saga, starting with the surprise firing of the CEO, illustrates the power of employee activism and the importance of communication planning.

The OpenAI board’s poor planning and decision making have led to angry investors, the loss of several key leaders and, as of now, more than 700 additional employees threatening to quit if the board doesn’t resign. The petition was fueled by employees posting on X, “OpenAI is nothing without its people.”

Employees have power because of their numbers and because of Microsoft’s promise to hire them, according to the signed letter. However, they also demand that Sam Altman and Greg Brockman be rehired, which may be unlikely since Microsoft quickly hired the pair to start a new subsidiary. In a 2:53 am, cover-all-bases tweet, Satya Nadella expressed continued confidence in the OpenAI team, and then slipped into the same paragraph Microsoft’s hiring of OpenAI’s two outsted leaders to start the new venture: “And [by the way] . . . .”

The employees who may join them include Mira Murati—the first to sign the letter—who was appointed interim CEO and replaced within two days. The biggest surprise might be #12 on the list—Ilya Sutskever, whom earlier reports blamed for the termination decision. Sutskever’s “regret” tweet doesn’t quite take responsibility, focusing on his “participation” (and if he were just following along) and his intention (which scarcely matters compared to the impact):

I deeply regret my participation in the board's actions. I never intended to harm OpenAI. I love everything we've built together and I will do everything I can to reunite the company.

Further confusing those of us on the sidelines—or perhaps simply displaying an impressive swell of forgiveness—Altman replied with three heart emojis.

One obvious lesson for business communication students is to think carefully before making major changes. Faculty teach communication planning that considers who needs to know what information and how each audience might react to the news. The board clearly underestimated negative reactions by investors and employees.

As this circus continues, I’m sure students will learn more about what to do and what not to do when communicating change—and making good business decisions.

Image source.