SECU and OpenAI, what went wrong!

Before I discuss this dysfunction between the board of directors and leadership at OpenAI and SECU, we must understand that today, a credit union is a technology company, not just a place to make deposits and take out loans. Almost everything in a credit union is built on multiple technology platforms and applications.

The recent happenings at OpenAI and SECU have a lot of similarities. Both organizations demonstrate the dysfunction resulting from the board of directors interfering with organizational autonomy. In the fast-paced financial services and technology world, companies often find themselves at the intersection of innovation, differentiation, and corporate governance. While a board plays a crucial role in guiding an organization’s strategic direction, there are instances where their involvement stems from not wanting things to change. That is what is happening at SECU. When the organization sees a need to progress forward, adopting new technologies, new services, and new products, and the Board of Directors wants things to stay the same, there is a danger of the Board’s governance becoming interference. This strains that delicate balance between leadership autonomy and corporate oversight. Yes, effective corporate governance is crucial for the success and sustainability of any organization. But, a vital component of this governance structure is the relationship between the board of directors and the executive leadership team. Striking the right balance between board involvement and operational autonomy is a delicate task that became a dysfunction at OpenAI and SECU.

 

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