In this week's Rolling Across My Desk (RAMD), I want to talk about emotional leadership. About how hard it is for leaders to admit to the mistakes that lead to layoffs and how employees pay the price – not just through losing their jobs, but through the emotional turmoil that comes from blaming themselves. Netflix, Stripe, and Warren Buffett offer some lessons. But first, I'm excited because we are just a few days away from our twice-yearly CG Meetings. ---------------------------- 1. Our CG Meetings begin soon ---------------------------- It's just remarkable to see so many smart leaders come together across our CG Councils (private councils for non-competing peer leaders) to ask for help and give help to each other. The level of honesty and trust is astounding. It's a thing of beauty and so rare in this world. This is good people helping good people. Member companies typically pay for membership because we help these leaders make better, faster decisions on everything, including how and when to use AI effectively and ethically. If you want to learn more about this small but mighty community, reply and I'll connect you to someone on my team. We've been running it for almost 25 years and we care deeply about our mission to help good people rise. ---------------------------- 2. Netflix lays off 1,000 ---------------------------- Last week, Netflix announced it was laying off approximately 1,000 employees, or 6% of its workforce. It also replaced its chief content officer and head of film. What a hardship for those 1,000 people. I'm so sorry. We are here for them. Even worse, the co-CEOs did not take responsibility for the mistakes they made that led to this moment. Here's my video on LinkedIn about it: https://lnkd.in/p/gQcg-H9U ---------------------------- 3. Netflix has a strategic problem ---------------------------- These layoffs came from a failure in strategy and customer experience. Netflix’s strategy for the last two decades has been to create/provide a high volume of TV shows and movies, using algorithms to dictate creative direction and selection. But this strategy stopped working several years ago when new competitors for people's viewing time – especially YouTube and TikTok – started redefining everything. ---------------------------- 4. Qualified Play Days are down --------------------------- One of the key internal metrics that Netflix tracks is called “qualified play days,” which measures how often people log in and watch. QPDs have been in decline for some time now. Another metric – average monthly viewing per Netflix member – fell steeply from 66 hours in the first half of 2023 to 49 hours in the first half of 2026. Bottom line: customers are paying for Netflix, but spending considerably less time watching it. And that’s bad in the long run because when people watch less, they’re less likely to renew. ---------------------------- 5. And the content has never been great --------------------------- Making matters worse, Netflix’s content, for the most part, has never been that good. While we can all name a few standouts ("Stranger Things"...), most shows have been OK at best. But that was the strategy. Create a bunch of stuff using data to target niche audiences. Quality was never the focus. It was quantity. Again, they made a few high-quality shows along the way. But today even the most popular shows on Netflix are losing 50–80% of their opening audiences when they return for a second season. Uh oh. --------------------------- 6. Stock is down nearly 50% ---------------------------- As a result of all this, the Netflix stock price has declined almost 50% in the last 12 months, including a 5% drop in the last day because its recent earnings report showed slowing growth. But what interests me most here is the emotional challenge of confronting these problems. ---------------------------- 7. It's hard to change ---------------------------- Look, I have a lot of empathy for Netflix leadership. It is emotionally hard to change a strategy that has made you successful. They've known about the problem. But recognizing a problem and doing something about it are two different things. The reason is that moving forward is not just an intellectual exercise in deciding what to do. That's the easy part. Everyone forgets the hard part, which is the *emotional* challenge of changing course. ---------------------------- 8. Good Strategy/Bad Strategy ---------------------------- A great book that helps explain this is Richard Rumelt's Good Strategy/Bad Strategy. Rumelt argues that the failure to take action is a common strategic problem faced by many. And we should have some human sympathy for the leaders failing to do it. ---------------------------- 9. Yet, it’s the employees who pay ---------------------------- Yet, we also have to remember employees suffer when management gets things wrong. Netflix was not at fault for YouTube’s success. But they are responsible for acting faster *and* for taking responsibility when they don't. That's part of the job. ---------------------------- 10. They did not admit mistakes ---------------------------- Netflix's layoff memo thanked departing employees and promised support. It is better than some I've read. But the co-CEOs did not say “I'm sorry.” And they did *not* acknowledge their mistake of not moving faster to address the challenge. “[the Co-CEO] Ted is never going to admit it’s his mistake, so others will take the fall," wrote the Financial Times this morning. ---------------------------- 11. Stripe showed another way ---------------------------- When Stripe had to lay off employees after the pandemic surge subsided, Patrick Collison did two things. First, he said he was "sorry." He used that word. Then he took full responsibility for the "mistakes" he made. And again, he used that exact word. That’s important. He could have said some version of "This wasn't my fault. I made no mistake. Who could have foreseen how quickly the pandemic surge would subside?" And he would not have been wrong. Almost no one saw it. But he nonetheless accepted his responsibility, admitted his mistake and apologized. What he did is a master class in emotional leadership...I encourage you to read his letter here: https://stripe.com/newsroom/news/ceo-patrick-collisons-email-to-stripe-employees ---------------------------- 12. This matters ---------------------------- How companies conduct layoffs matters. Certainly it matters if they provide severance and other support. But taking responsibility for mistakes and apologizing matters too. When companies do NOT do that, then laid-off employees can feel like they did something wrong. And that has a big negative impact on the quality of their job search and can leave emotional scars lingering for the rest of their career. ---------------------------- 13. Warren Buffett admits his mistakes ---------------------------- One of the most successful CEOs ever, Warren Buffett, admits his mistakes all the time. He never gaslights his employees. Interestingly, Patrick Collison and his brother were with me at a Berkshire Hathaway annual meeting about a decade ago (they came separately but then joined my group for a drink after the meeting). I’d like to think that their honesty in their email may have had something to do with what they learned from Buffett. ---------------------------- 14. WBRG ---------------------------- Speaking of Buffett, our World of Business Reading Group (WBRG.org) is based on Warren Buffett's philosophy. Yes, students learn the basics of business and finance, and how to think about companies and markets. But they also get examples of his emotional leadership – of his talking openly about mistakes and apologizing for them. ---------------------------- 15. WBRG sign-ups --------------------------- If you are interested in this pro bono program for yourself, or for a high school or college student in your life, then sign up to get emailed when application windows open: Spring 2027 adult class notifications: https://www.wbrg.org/adult-notification Summer 2027 High School/College notifications: https://www.wbrg.org/student-notification ---------------------------- 16. CG/Never Search Alone Live and in Person ---------------------------- Switching topics...we just had a great local meetup in NYC with 60 people. NSA alum Aly Kasberg surveyed members to find out what kind of local experience they would like (outdoors at a bar) and then organized it. Now we want to find more volunteers in other cities around the U.S. and the world. Are you interested? Here’s a link with more info: https://forms.gle/91gLgEmbpzFyNUnJ7 ---------------------------- 17. Wanna dance all afternoon with me? ---------------------------- We need more community right now. So come join me and about 30 people on Sat, Nov 21, for some awkward dancing at an ’80s Daytime Disco. More info here: https://0sulml7kjpu.typeform.com/to/jCPwAOVS ✨✨✨✨✨✨✨✨✨ 💃💃💃💃💃💃💃💃💃 With love and sequins, Phyl P.S. We thrive on volunteers (including me). If you want to help, please review the volunteer opportunities below. ---------------------------- 1. First, a message about book sales ---------------------------- Book sales are our sole source of funding for Never Search Alone. I donate every dollar I receive from those sales to run the program. Live every non-fiction and self-help book this year, our sales have declined, and we are now running a deficit. That means we are not generating enough to pay for the technology and operations that keep the free program running. If you know someone who's looking for a job, consider buying them a copy: https://www.amazon.com/Never-Search-Alone-Seekers-Playbook/dp/B0BJ486SJ1 You'll be helping that person and helping us keep Never Search Alone free for everyone. ---------------------------- 2. College Edition is coming soon --------------------------- We are in final production on the College Edition of Never Search Alone! The book is re-designed from the bottom up to give students the hope and support they need to find a job in this tough job market. Know a college student or recent grad? Sign up to be notified when the pre-order form is available: https://0sulml7kjpu.typeform.com/to/E9w5PGgU ---------------------------- 3. Social Media Volunteer – URGENT ---------------------------- We need someone who can develop a social media strategy, create campaigns, and track engagement for Never Search Alone. Learn more and apply here: https://forms.gle/fvjAD58HNyxcXu5H6 ---------------------------- 4. NYC 2027 Pride March Coordinator ---------------------------- We are looking for someone to coordinate a successful NYC 2027 Pride March for our NSA community! This will be our third year, and it's a lot of fun and a great way to build community. Learn more and apply here: https://forms.gle/1p5hwrAUwH2zFxf47 ---------------------------- 5. Local City Hosts ---------------------------- We would like to find volunteers to host several events in their cities where NSA members can build friendships, network, and have some fun together. Learn more and apply: https://forms.gle/vEkgtxCuZcxhgbpm7 ---------------------------- 6. High School and College World of Business Reading Group (WBRG.org) ---------------------------- Our high school and college business literacy program is going really well. Based on the philosophy of Charlie Munger and Warren Buffett, it is taught live in small Zoom classes by senior executives with serious business and investing experience. You can sign up to be notified when applications open for our summer 2027 program. Applications will open sometime in January 2027, and we typically run out of space quickly: https://www.wbrg.org/student-notification ---------------------------- 7. JSC Moderator Application for Alums ---------------------------- We are looking for Job Search Council alums who have a job and are willing to come back and moderate a Job Search Council. Details here: https://docs.google.com/document/d/1Du74FGMpr32jG3Nv4LPZO38b__1pHpd2dj4dJEH1K1w/edit?usp=sharing Apply here: https://forms.gle/yB74Xjz4tMYsECeJ9 ---------------------------- 8. Looking for Recruiters ---------------------------- If you are a recruiter and want to help job seekers discover their Candidate-Market Fit, please consider volunteering. You control how many sessions you do a month, and it's a great way to give back. https://docs.google.com/forms/d/e/1FAIpQLSd5vLUurBne89xPMpM8whVfnhc-dNCTm-v6PMHrAr0A4BCWxg/viewform ---------------------------- 9. Podcast Contacts? ---------------------------- To help spread the word about Never Search Alone, we are trying to get me onto some larger podcasts (like Lenny's, which had a huge impact). Do you know anyone at the podcasts listed in this document or other podcasts with large audiences? https://docs.google.com/document/d/1PmcXy4ZTmW_IcXZQ3qB7-Y6-AtCsnv-U/edit?tab=t.0#heading=h.ndit9t56zy2y If you have contacts, please let our volunteer Liz Nilsen know at liznilsen4@gmail.com. ---------------------------- 10. Media Contacts? ---------------------------- Business Insider published a feature following the journey of one of our Job Search Council members who was laid off while pregnant. It opens with: “Getting laid off broke my heart... and I couldn't stop myself from crying.” Read more: https://www.linkedin.com/feed/update/urn:li:activity:7374445590107176961/ Note: this came from a job seeker talking to a reporter. If you know any reporters, please encourage them to write about us or reach out to Liz Nilsen at liznilsen4@gmail.com with potential contacts. ---------------------------- 11. Are you a Sales or Biz Dev Professional? ---------------------------- David Ploshay, a Never Search Alone member, is hosting periodic virtual gatherings for people who work in sales or business development. The next gathering will be on Friday, October 23, at 1 p.m. ET. If you're interested in participating, please post in the #role-sales-careers channel on the Never Search Alone Slack. Or send David a LinkedIn invite or message: https://www.linkedin.com/in/davidploshay This email was sent to [email address suppressed]. If you are no longer interested, you can unsubscribe instantly: https://collaborativegain.createsend1.com/t/t-u-ydirjluk-l-r/ Collaborative Gain, Never Search Alone, Slow Art Day, and WBRG 1350 Avenue of the Americas, 2nd Floor New York, NY 10019