Started At The Bottom Now We’re Here

I’m working on a report that should be released by the end of the year on “CEO Chatter” (working title – if you have a better suggestion, send it to me). ?Our senior partners and I travel the world chatting with CEOs about their challenges, vision, and transformation efforts. And we want to let you know: what are CEOs actually chatting about? ?

The major theme these last few quarters has been a move from top line growth to bottom line efficiency. Amidst a global economic cooldown, CEOs are increasingly focusing on optimizing operations and cutting unnecessary costs. They are prioritizing sustainable profitability over rapid expansion, shifting their strategic emphasis to long-term financial health.?

It’s the standard playbook, and sure, it works… for a while.?

But here’s the truth: if you think focusing on the bottom line is going to save you without addressing your culture, you’re in for a rough ride. Your culture is either going to save your bottom line or sink it. So, let's stop pretending like the two aren't connected.?

Look no further than Boeing as a glaring example of what happens when you forget about culture and you focus only on the balance sheet.?I was in NYC this week on Bloomberg talking about the tragedy that is Boeing just yesterday:

This company was once one of the most highly regarded engineering powerhouses in the world. Since their executives pivoted to focus solely on the bottom line, they’ve lost their quality, their culture, and now, their workforce. Last quarter they reported a $6.1B loss. That’s what ignoring culture can get you.?

Kelly Ortberg made a call to shift the culture at Boeing, but he talked about the buzz word values that are being “revisited.” Culture is not on your posterboard. Culture is how people think and act to get results. And at Boeing, they’re acting with their picket signs. ?

Culture is not a nice-to-have, feel-good initiative that you can delegate to HR while you focus on the "real" work of running the business. That kind of thinking is what separates the companies barely scraping by from the ones absolutely crushing it.?

Here’s the reality: culture drives results. You think slashing budgets is the answer? It might be part of it, but if you aren’t looking at the bigger picture—like, say, how your employees are making decisions at every level—you’re just putting duct tape on a sinking ship.??

Here’s where some CEOs get it wrong: they think cost-cutting is a magic bullet.? When employees check out, they don’t innovate. They don’t care. And trust me, they’re already browsing LinkedIn for their next gig.? Or worse, they’ve gone dark. They stay at your company and do the bare minimum to not get fired or noticed by your overworked middle managers.?

Here’s what you need to do: build a culture that drives accountability, rewards performance, and makes people want to come to work and give their best. Because when you’ve got a culture where people care—where they’re engaged and aligned with your goals—that’s when you see the magic happen. That’s when you stop talking about the bottom line and start delivering on it.?

So What Do You Do Now??

1. Stop Kidding Yourself About What’s Really Hurting Your Business?

Culture isn’t a soft, fluffy concept—it’s the thing driving (or killing) your results. Address the real issues—whether it’s leadership misalignment, disengaged employees, or a lack of accountability. Do the hard work. Fix it. And don’t expect a magic fix overnight.?

2. Create a Culture of Accountability That Drives Performance?

This isn’t about more meetings or some new HR initiative. It’s about creating a culture where people know their results matter, and they have a direct impact on the business. When people feel empowered and accountable, they perform. Period.?

3. Invest in Leadership That Gets It?

If your leaders are still operating under the old-school "command and control" mentality, you’ve got a problem. Invest in leaders who understand how to build and maintain a results-driven culture. And if they’re not delivering? Get new ones.?

So ask yourself: Is your culture driving results, or is it quietly killing them??

You want to fix your bottom line? Start with your culture because you can’t cut your way to growth.?

?Elsewhere In Culture?

As I discussed on Bloomberg, Boeing’s situation underscores the consequences of focusing on the bottom line at the expense of culture. Their decision to cut pensions and prioritize cost-cutting over employee well-being has led to a costly strike, further damaging their reputation and operations. The $6 billion loss reported last quarter is a direct result of these decisions, proving that ignoring culture can have devastating financial consequences.?

Boeing’s leadership recognizes the need for a cultural reset, but rebuilding trust with their employees and restoring the company’s once-strong reputation will be a long and challenging process. While offering financial incentives, such as wage increases, the deep wounds caused by past pension cuts continue to fuel employee dissatisfaction. Without addressing these cultural issues, Boeing will struggle to return to its former glory.?

The recent drop in jobless claims to 227,000 highlights more than just a resilient labor market—it underscores the critical role workplace culture plays in retaining talent. As CEOs navigate the complexities of economic uncertainties, from hurricanes to strikes, the consistent takeaway is clear: companies with strong, trust-driven cultures are weathering these storms more effectively. Employees are staying put, and layoffs remain minimal because when leadership prioritizes trust, engagement, and support, people are more likely to stay committed.?

For CEOs, this is a crucial moment to reflect on the culture within their own organizations. Are you fostering a workplace where employees feel secure, valued, and empowered to contribute? The numbers show that even amidst uncertainty, turnover and layoffs are not inevitable. By building a culture rooted in trust, where communication is clear and relationships are strong, you can not only retain top talent but also ensure that your organization thrives—no matter what external challenges arise.?