Both Google and OpenAI strategically leaked their Code Red declarations. This wasn’t accidental – it was deliberate use of the framework for external signaling. When “Code Red” reaches the New York Times, it burns the boats. There’s no pretending things are fine after that.
Google’s Code Red memo reached the press within weeks of ChatGPT’s launch. The leak communicated that leadership considered the threat genuinely existential – not just concerning. It signaled to investors that the response was serious. It told competitors that Google wouldn’t roll over. It assured customers of commitment to remaining competitive.
Three years later, OpenAI’s internal urgency scale leaked similarly. The pattern repeated because it works. The Code Red vocabulary provides dramatic, specific signaling that vague statements like “we’re really concerned” cannot match.
Framework Analysis
The leak serves multiple strategic functions simultaneously:
Internal commitment device: Once Code Red is public, backsliding into complacency becomes impossible. Every employee knows the stakes. Every manager knows their performance is being watched. The public declaration burns the boats – there’s no retreat available.
Investor communication: “Code Red” tells shareholders that leadership recognizes existential risk and is responding with appropriate intensity. It’s more credible than earnings call reassurances because it acknowledges the threat’s severity.
Talent signal: Top performers want to work on existential challenges, not incremental improvements. Code Red attracts people who thrive in high-stakes environments while warning those who don’t that intensity is coming.
Strategic Implications
The framework provides vocabulary for signaling that organizations otherwise lack. How do you communicate “this is serious but not catastrophic” (Orange) versus “this threatens our existence” (Red)? The tiers provide precise language for calibrated external communication.
Strategic leaking requires strategic timing. Leak too early and you look panicked. Leak too late and the market has already written you off. The leak should come after initial response is underway but before external observers conclude you’re in denial.
The Deeper Pattern
The Code Red declaration becomes a tool, not just an internal classification. The vocabulary’s external recognizability – everyone understands what “Code Red” means – transforms internal crisis management into strategic communication.
Key Takeaway
Both Google and OpenAI intentionally leaked their Code Red memos. The leak burns boats internally, signals seriousness externally, and provides vocabulary that vague reassurances cannot match.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
