Managing Uncertainty: The Power Dynamics within Open AI’s Leadership

Leaders in nonprofits are constantly faced with challenges and must manage uncertainty to help their organization fulfill its mission. In this case study, we first illustrate the power dynamics issues faced by OpenAI, a 501(c)(3) nonprofit and its for-profit with a timeline of events from the press. Second, we focus on three governance points: 1) OpenAI’s hybrid governance structure, which makes it difficult to manage competing priorities, 2) the multiple stakeholders OpenAI impacts, 3) and all the unique trust relationships among board members, which are constantly changing and need to be reevaluated. Third, throughout the three governance points, we weave in specific explanations and examples of: the types of power, guidelines for effectively using power, contingencies of power, influence tactics, and responses to power. We provide a set of discussion questions and a turnkey teaching note with multimedia resources and activities for instruction with students and consultants.