A Letter amid Turbulence
On July 24, 2025, Microsoft CEO Satya Nadella sent a company‑wide memo titled “Recommitting to our why, what, and how”. The timing was significant — just days earlier, the company announced approximately 15,000 layoffs as part of a strategic shift toward AI and cloud services. 📄 Read the memo
In his message, Nadella focused on three things:
- Why Microsoft exists
- Whatpriorities matter most now
- How the company will move forward in the short term
It was calm, composed, and clear — exactly what you’d expect from a leader trying to stabilize a workforce in shock. But here’s the problem: stabilizing is not the same as navigating.
The Missing Dimensions in the Message
In moments of large-scale change, leaders must do more than reaffirm their purpose and processes. They must also:
- Define a clear destination so everyone knows where the organization is heading.
- Acknowledge the barriers that will make the journey difficult.
Nadella’s memo didn’t address either. That left Microsoft’s employees with clarity about the present — but little sense of the long‑term direction or the challenges they’d face getting there.
A Framework for Full-Scale Navigation
This is where the NEWS Compass®, developed by Aviad Goz, comes in. It’s a leadership tool designed for moments exactly like this — when the ground is shifting and the path ahead is uncertain.
The Compass asks leaders to work through four directions at every crossroads:
- North – Destination: WHERE do you want to go?
- East – Purpose: WHY do you want to go there?
- West – Route: HOW will you get there?
- South – Barriers: WHAT could stop you?
The strength of the model is in its completeness. Skip any one direction, and your plan is less resilient.
How the Compass Would Have Changed the Message
1. North – Destination Instead of focusing only on immediate priorities, Nadella could have set a 3‑ to 5‑year direction and vision. For example, a market leadership target in developing enterprise AI for a host of needs by a certain date. This would have given employees a shared endpoint to work toward.
2. East – Motivation He reaffirmed Microsoft’s mission, but didn’t connect it explicitly to a long‑term destination. Showing how the company’s values and drivers align with its AI strategy would have deepened commitment.
3. West – Route The memo described some “how,” but mostly for the short term. Outlining major phases — such as workforce reskilling, R&D milestones, and market expansion plans — would have bridged today’s reality with tomorrow’s goal.
4. South – Barriers This was the biggest omission. Naming the competitive pressures, skill gaps, and cultural adjustments required after layoffs would have shown realism and built trust.
Why This Matters Beyond Microsoft
PwC’s 27th Annual Global CEO Survey (2024) found 45% of CEOs doubt their current business model will survive the next decade without major change, and 97% are already making reinvention moves. ( PwC 2024 CEO Survey)
In such an environment, omitting North and South is a missed opportunity. Employees — and markets — need both the vision and the acknowledgment of reality to stay aligned through change.
The Leadership Lesson
Anchoring the present is necessary, but it’s not enough. Leaders who navigate uncertainty well:
- State the destination so clearly that it can’t be misunderstood.
- Connect it to a values and purpose that inspire.
- Map the route in terms that show progress is possible.
- Name the barriers so they can be addressed together.
Closing Thought
Nadella’s memo steadied Microsoft in a difficult week. But with the full NEWS Compass®, it could have done more: not just calming the waters, but charting the course through them.
When the ground shifts, an anchor will keep you in place. A compass will get you where you need to go.