The CEO's Role in Culture: You Get the Culture You Tolerate

As a business leader, it is tempting to think of culture as an intangible, "soft" concept—something that emerges organically from the people you hire. We talk about culture in terms of values posters on the wall and company off-sites. But in reality, culture is one of the most powerful and tangible drivers of business performance. It is the invisible hand that guides your team's decisions when you are not in the room. It is the operating system of your company. And it is not an accident; it is a choice.

The single most important truth about company culture is this: it is a direct reflection of the behaviors that the leadership team, and specifically the CEO, consistently models and tolerates. You can have the most beautifully crafted values statement in the world, but if you tolerate a high-performing but toxic executive, your real culture is one that values results over respect. If you say you value innovation but punish every failure, your real culture is one of fear. The culture of your company is not what you say; it is what you do and what you allow.

The Three Levers of Intentional Culture Building

A CEO who is serious about building a high-performance culture must be intentional and relentless in their focus on three key levers.

1. Who You Hire, Fire, and Promote

The people you choose to elevate into positions of leadership send the loudest possible signal about what you truly value. Every hiring and promotion decision is a culture-defining moment. Are you promoting the collaborative problem-solver, or the brilliant individual contributor who leaves a trail of bodies in their wake? The people you choose to remove from the organization are just as important. A willingness to part ways with a high-performer who is a poor cultural fit is one of the most powerful and difficult tests of a leader's commitment to building a healthy culture.

2. How You Allocate Your Time and Attention

Your calendar is a reflection of your priorities. As a CEO, what you choose to spend your time on signals to the entire organization what is truly important. Do you spend your time in strategic reviews and customer meetings, or are you bogged down in internal politics? Do you celebrate and reward the behaviors you want to see, or do you only focus on the problems? Your focused attention is your most valuable currency, and how you spend it will shape your culture more than any speech you give.

3. The Stories You Tell

Humans are narrative creatures. The stories that are told and retold within your company become its cultural lore. As a leader, you are the chief storyteller. Are you telling stories of innovation and resilience, or stories of blame and internal conflict? Are you highlighting examples of employees who have gone above and beyond for a customer, or are you focused on the ones who have missed their targets? The stories you choose to amplify will define your company's identity and shape its future behavior.

Building and maintaining a high-performance culture is the single most important job of a CEO. It is the ultimate long-term driver of sustainable success. At PICO, our Talent, Culture & Organizational Design services are designed to help you be more intentional about this critical work. We provide the tools and frameworks to help you align your culture with your strategy, from designing your organizational structure to building a more effective leadership team.