On Culture: What Signals Are You Missing?

Dear Culturati Insider,

Work isn’t broken—but many of the systems surrounding it are. This year, Microsoft declared the rise of the Frontier Firm: organizations built not around static org charts or legacy workflows, but around dynamic, AI-augmented teams that scale faster, move smarter, and operate with intentional design. The shift isn’t just technological—it’s structural. Leaders are being asked to rewire how work gets done, not just retrofit what already exists.

The U.S. workforce is holding its breath. New data shows people are staying put—not because they’re engaged, but because they’re anxious. Burnout is rising. Layoffs are expected. In response, many are upskilling or turning to contract work, quietly repositioning themselves while employers fail to notice the strain. This tension shows up in culture, too. Engagement levels remain low, and for many, work feels performative—an environment to navigate, not a mission to contribute to.

Geopolitical forces are adding another layer of complexity. The organizations that remain reactive—treating global shifts as outliers—are missing the bigger story. At this year’s Culturati: Summit, Dale Swartz of McKinsey & Company unpacked how shifting trade routes, energy transitions, and national security concerns are redrawing the map of business strategy. Investments in semiconductors, clean energy, and strategic workforce realignments aren’t just headlines; they’re early indicators of where competitive advantage is heading. Leaders who act with foresight—realigning portfolios, localizing supply chains, diversifying talent—are already pulling ahead.

Underneath it all, mattering has emerged as a critical business driver. When people don’t feel seen or needed, no system—no matter how advanced—can deliver sustainable results. And as Apple TV+’s Severance underscores, cultural detachment isn’t science fiction—it’s playing out in real organizations where disconnection quietly corrodes performance.

The antidote? Cultures built on clarity—of values, roles, and strategy. Last week’s Culturati: LIVE reminded us that self-awareness is a force multiplier. When leaders understand the values driving their decisions—and how those values can both inspire and alienate—they lead with empathy, not ego. And they build organizations where people don’t just perform—they belong. The future of work will reward those who build with intention—technically, culturally, and personally. If you missed the session, you can watch it here. Culturati: Summit 2C25 content coming soon.

For you,

Myste Wylde, COO

Microsoft's 2025 Work Trend Index: The Year the Frontier Firm is Born

Microsoft

By Matthew Duncan, et. al.

Summary: According to Microsoft's annual Work Trend Index, 2025 marks the birth of the Frontier Firm—organizations built for scale, speed, and strategy in the age of agentic AI. The report, based on insights from 31,000 workers across 31 countries, reveals a growing mismatch between business demands and human capacity—80% of employees report being overextended, while 68% struggle with pace and volume. The solution isn’t marginal gains; it’s structural change. Enter the Frontier Firm: organizations powered by “intelligence on tap” and hybrid human+agent teams that scale faster, operate more fluidly, and generate greater value. Adoption is accelerating—75% of knowledge workers now use AI, and 82% of leaders see 2025 as pivotal for rethinking strategy. Microsoft outlines a three-phase shift: AI as assistant, AI as teammate, and ultimately, human-led, agent-operated workflows. Yet only 46% of leaders have automated full processes, and many still lack clear ROI metrics. The frontier is taking shape: dynamic “Work Charts” are replacing org charts, new roles like AI agent specialists are emerging, and leaders must now define human-agent ratios to balance judgment with automation. This is more than digital transformation—it’s a redefinition of work. The organizations that lead will be those that treat AI not as a tool, but as a teammate—and build the systems, skills, and mindsets to match.

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How American Business Can Prosper in the New Geopolitical era

McKinsey & Company

By Matt Watters and Shubham Singhal with Zoe Fox

Summary: Geopolitics has re-emerged as the top threat to growth, with 900 executives naming it the #1 risk—and for good reason. From tariff upheavals to defense realignments, American businesses are navigating unprecedented peacetime uncertainty. To stay competitive, leaders must shift from reactive risk management to long-term alignment with evolving industrial policy, security mandates, and global trade shifts. Ten geopolitical drivers—from tech sanctions to foreign investment restrictions—are reshaping where and how companies operate. Those adapting fastest are rebalancing portfolios (e.g., Infosys’ semiconductor push, GE’s $1B supply chain investment), leveraging U.S. subsidies (IRA, CHIPS Act), and reconfiguring global talent and tech infrastructure. Notably, U.S. green and semiconductor sectors alone are projected to draw $458B in real investment and create 10,000+ jobs by 2025. Forward-looking firms are embedding geopolitical fluency at the board level, building scenario playbooks, and treating policy change as strategic opportunity—not noise. Success in this new era will belong to the geopolitically agile.

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The Power of Mattering at Work

Harvard Business Review

By Zach Mercurio

Summary: Workplace disengagement isn’t just about low morale—it’s about a systemic lack of mattering. Mattering, the experience of feeling both valued and valuable, is a foundational driver of motivation, retention, and performance. Yet 65% of employees feel underappreciated (BetterUp, 2022), and 30% report feeling invisible at work (Harris Poll, 2023). These aren’t isolated symptoms—they’re signs of a cultural blind spot. Gallup’s study of 7,900 business units found that when employees feel genuinely cared for by leaders, organizations see measurable gains in customer satisfaction, productivity, and profitability. To address this, leaders must prioritize three actions: notice people with intention, affirm their unique contributions, and show how they are indispensable to broader goals. Scaling these behaviors organization-wide isn’t soft—it’s strategic. When mattering becomes embedded in culture, performance follows.

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The Great Stay Isn’t Over. What’s Next For The U.S. Workforce In 2025?

Forbes

By Rachel Wells

Summary: In 2025, "The Great Stay" defines the U.S. workforce, with professionals remaining in their roles due to economic uncertainty rather than job satisfaction. A December 2024 survey of 1,115 U.S. workers revealed that 81% fear job loss, 76% anticipate increased layoffs, and 63% expect more business closures compared to the previous year. Burnout is a significant concern, with 52% expecting it to worsen, primarily driven by job insecurity (43%). In response, 61% plan to upskill, and many are turning to the gig economy, with 85% believing businesses will rely more on freelance and contract workers . This shift underscores a move towards adaptability and personal growth as key strategies for navigating the evolving job market.

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How ‘Severance’ Exposes the Realities of Corporate Culture

Inc.

By Andrea Olson

Summary: Apple TV+’s Severance offers more than a dystopian thriller—it’s a piercing critique of today’s corporate culture. Through its fictional Lumon Industries, the show exaggerates but eerily echoes real workplace dynamics: 60% of professionals say they must adopt a different persona at work (HBR), and only 36% report being engaged (Gallup). From performative perks and opaque management to cult-like loyalty and meaning-starved tasks, Severance lays bare how companies may unintentionally foster environments of control, detachment, and disempowerment. For CEOs, the warning is clear: build cultures rooted in transparency, purpose, and genuine human connection—or risk creating workplaces that alienate the very people they rely on to succeed.

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