23andMe Board Drama: MSP Lessons in Strategy and Resilience

The recent resignation of all independent directors from DNA-testing company 23andMe reveals significant issues in governance and strategy alignment that serve as critical learning points for Managed Service Providers (MSPs). The high-stakes boardroom exit, coupled with CEO Anne Wojcicki’s struggle to keep the company’s strategic plans on track, offers lessons in governance, leadership, and resilience that MSPs can use to strengthen their own operations.

Here are five key takeaways from the challenges at 23andMe that MSPs can apply to drive sustainable growth and adaptability.

1. Align Leadership and Board Goals

The board’s mass resignation points to a fundamental breakdown in alignment between CEO Anne Wojcicki’s vision and the board’s expectations. For MSPs, establishing a clear, shared vision across leadership and the board is essential. This alignment reduces potential conflicts, particularly during transformative phases, and provides a stable foundation for strategic decisions.

2. Diversify Revenue Streams for Stability

23andMe’s dependence on a single product (DNA testing) limited its revenue potential and growth. This highlights the importance of revenue diversification for MSPs. By expanding service offerings—such as cybersecurity, cloud solutions, and consulting—MSPs can create more resilient business models, protect cash flow, and offer clients comprehensive support.

3. Prioritize Balanced Governance

Wojcicki’s dominant voting control restricted the board’s influence, showing the need for balanced governance structures. MSPs should cultivate governance that empowers the board with the authority to influence strategic direction while allowing for a balanced control structure. This fosters accountability, encourages strategic insight, and supports long-term organizational health.

4. Pursue Innovation with Clear ROI

23andMe’s investment in drug development drained resources without yielding profit. For MSPs, innovation is essential, but every new venture should be guided by clear ROI goals. Evaluating profitability potential before committing resources ensures that innovation drives sustainable growth rather than becoming a financial burden.

5. Adapt Quickly to Market Changes

Facing market pressure, 23andMe pivoted to telehealth, particularly in weight-loss drug prescriptions. This shift highlights the value of adaptability. MSPs should likewise be prepared to adjust focus as market demands evolve, whether by shifting emphasis toward AI, cybersecurity, or emerging tech. Flexibility enables MSPs to stay competitive and capture new opportunities.