Values-Based Performance System Reshaped Company Culture

Intercom's transformation to an AI-first company required aggressive, founder-led decision making that prioritized speed and cultural alignment over consensus.

When Owen McCabe returned to Intercom as CEO, the company was facing stagnant growth and was about to hit negative territory. Rather than trying to navigate change through consensus, he deliberately chose an authoritarian, top-down approach. His philosophy centered on the belief that "greatness is created when you find a CEO who's willing to make brave hard decisions and own the results."

McCabe implemented a wartime company mentality, making unilateral strategic decisions to focus exclusively on customer service and go all-in on AI. He rewrote company values specifically designed as "a sharp knife to cut out the parts of the company that I just knew wouldn't be effective." These values emphasized resilience, high standards, hard work, and shareholder value—deliberately controversial to the existing culture.

The most consequential implementation was a quarterly performance process where employees received scores both on their goals and on their alignment with the new values. McCabe "hard coded a formula" that automatically identified people who fell below certain thresholds, and they were respectfully exited from the company. This deliberate cultural reshaping resulted in approximately 40% employee turnover.

While this approach created significant friction—including what McCabe described as a "soft coup" attempt with letters sent to the board—it ultimately transformed the organization. Fifteen months after implementing these changes, anonymous employee surveys showed 98-99% approval of management, leadership, and strategy.

For leaders navigating disruptive change, McCabe's perspective suggests that consensus-building may be impossible when fundamental transformation is required. The trade-off is clear: accepting short-term cultural pain and employee turnover to create long-term alignment. For individual contributors, this means recognizing that during transformational periods, the most successful path forward may be either fully embracing the new direction or finding a better cultural fit elsewhere.

As McCabe puts it: "When you create that alignment, not only do you create great success, but you just create a lot more happiness and balance and harmony. The employees who wanted a more gentle democratic environment, they're not gonna be happy in a company like Intercom... they'll be more happy somewhere else."