Vanilla Board Structure

A breakdown of the key lessons from the OpenAI board crisis and recommendations for standard startup board governance, emphasizing simplicity and focus on core business needs.

Key Takeaways from OpenAI Crisis

• Most startups don't need complex board structures like OpenAI
• Focus should remain on product-market fit rather than governance
• Standard "vanilla" board approaches are sufficient for most companies

Recommended Board Structure Elements

• Competent oversight

  • Put qualified people in place
  • Keep structure simple and standard
  • Focus on basic governance needs

• Avoid Common Mistakes

  • Don't overcomplicate governance structure
  • Don't copy complex structures from unique companies like OpenAI
  • Don't get distracted from core business priorities

What Not To Do (Lessons from OpenAI)

• Non-profit board structure for a for-profit company
• Board members with no equity stake
• Board members with limited operational experience
• Lack of clear communication channels
• Insufficient transparency with stakeholders

Priority Focus Areas

• Product-market fit should be primary focus
• Growth and business fundamentals
• Basic governance needs
• Standard board oversight

Why Simple Works Better

• Allows focus on core business needs
• Reduces unnecessary complexity
• Maintains clear lines of accountability
• Enables faster decision making
• Prevents governance distractions

The key message: Don't let governance structure distract from building the actual business. Keep it simple and standard unless there's a compelling reason not to.