The modern CFO’s guide to driving performance through culture

The role of the modern CFO extends far beyond traditional financial stewardship. With organisations running leaner operations due to cost pressures and budget constraints, the impact of culture on financial performance has never been more critical. Yet, many still view organisational culture as a "soft" issue best left for HR departments, overlooking the truth that culture directly impacts your bottom line. 

The hidden financial impact of cultural misalignment 

Culture is no longer a soft metric. It's now recognised as a critical driver of financial performance that directly impacts the bottom line. Businesses with successful company cultures are five times more likely to see significant revenue increases, according to the Arbinger Institute. However, many organisations fail to realise these benefits due to cultural misalignment. 

Dayforce's 15th Annual Pulse of Talent research highlights this misalignment. In Australia and New Zealand (ANZ), 80% of executives believe in their culture initiatives, yet only 54% of workers agree. In Southeast Asia, the divide is similar, where 87% of executives see their organisations as culture-focused and only 51% of workers feel the same. 

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The implications of these perception gaps are significant. In ANZ, 75% of respondents say they would turn down a job opportunity due to poor culture fit, while 46% of employees report quitting a job due to poor company culture. In Southeast Asia, 68% of respondents report they would decline a role that doesn’t align with their values, and 56% have already decided to leave the workplace due to cultural issues. 

Another concern for CFOs is employee engagement and its impact on productivity. Gallup research shows that disengaged employees cost the world $8.8 trillion in lost productivity. The Dayforce study highlights regional differences in engagement levels. In ANZ, only 29% of employees can be classified as "Culture Promoters" — highly engaged workers who are poised to drive business performance—while an equal 29% fall into the "Culture Detractors" category, meaning their disengagement could actively undermine productivity. In Southeast Asia, the numbers tell a different story, with a higher 44% of employees acting as "Culture Promoters" and a lower 21% categorised as "Culture Detractors."  

In today's leaner organisations, cultural misalignment creates a compounding effect through increased absenteeism, burnout, and turnover, directly impacting your largest operational expense while creating downstream effects on revenue. For CFOs, the message is clear: culture isn't just ​​​​an issue for HR.  

Why workplace culture falls within the CFO’s domain 

Forward-thinking financial leaders recognise that culture is a fundamental business driver directly impacting the bottom line. Here's why CFOs need to take an active role in shaping organisational culture. 

People costs are your largest investment 

As your organisation's most significant expense, your workforce demands the same rigorous financial oversight as any major investment. Retaining employees is substantially more cost-effective than attracting and onboarding new talent, especially considering the productivity lag during the transition period. 

Additionally, investing in employee experience creates a powerful multiplier effect. Engaged and happy employees can become your most effective recruitment channel, helping to attract like-minded talent and reduce recruitment costs. 

Digital transformation relies on buy-in 

Organisational transformation projects have become part of business as usual, with projects rolling out one after another to keep up with the pace of change. With the success of any transformation relying on employee buy-in and cooperation, a culture that promotes high employee engagement and a growth mindset becomes an invaluable asset.  

Culture serves as a powerful risk management tool  

Employees who feel valued and engaged are more likely to adhere to compliance requirements and report concerning behaviour. This becomes increasingly critical with the rise of borderless workforces, where compliance requirements vary across jurisdictions. 

Strategic actions for forward-thinking CFOs 

Today's CFOs must consider leveraging culture as a driver of financial performance. Here are four key areas where financial leaders can make a measurable impact. 

Implement data-driven culture management 

With today’s fluid and boundless workforce, intuition cannot guide cultural investments. CFOs need to partner with HR to implement comprehensive analytics platforms that capture both quantitative and qualitative cultural metrics. Ideally, these systems would be able to capture real-time monitoring of engagement, satisfaction, and performance, while providing predictive insights about potential issues before they impact the bottom line. 

Align cultural investments with business strategy 

Smart cultural investments create powerful multiplier effects. Employee experience directly drives customer experience, creating a clear through-line to financial performance. For example, when employees become brand ambassadors, they can support organic recruitment and strengthen customer relationships. This approach reduces costs and improves cultural alignment across the organisation. 

Build cross-border cultural competence 

For global organisations, cultural initiatives need to balance consistency with local relevance. Success requires systems that can help adapt to varying compliance requirements while maintaining core values across regions.  

Promote a culture of risk management 

Perhaps one of the most overlooked benefits of positive culture is its role in risk management. When employees feel valued and aligned with organisational values, they become proactive defenders against potential issues. This self-regulating environment can be just as (if not more) cost-effective than traditional control mechanisms, reducing the need for expensive oversight systems while helping minimise compliance risks. 

The evolution of financial leadership 

As Jennifer Cloherty, CFO at Kellogg North America, notes in Forbes: "The CFO of tomorrow needs to have more of an EQ (emotional quotient) as well as an IQ than historical CFOs might have had, and more of an awareness and a sensitivity to organisational dynamics and people." 

This shift highlights how financial success and cultural health are inextricably linked, with both influencing performance. Modern CFOs who embrace this reality can position their organisations for sustainable growth and competitive advantage.