Soriano: Beyond cost-cutting: A 2026 playbook for owners and CEOs

Soriano:  Beyond cost-cutting: A 2026 playbook for owners and CEOs
SorianoFile
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When I last wrote about a business owner considering an exit, many assumed the story would end with a sale. It has not. And it continues to be a work in progress. The good news is this: he is now running the business differently.

After years of navigating inflation, rising interest rates, labor turnover — with a handful of NLRC cases pending — and shrinking margins, exhaustion had taken its toll. His instinct was to sell. What he truly needed, however, was not an exit, but a reset.

That reset is not about cutting costs alone. It is about rebuilding clarity, discipline and leadership focus in real time. As leaders, if you are contemplating cost-cutting this year, I understand. Cost-cutting may buy time, but it does not build resilience.

This year, uncertainty will no longer be a temporary phase. It will likely be the operating environment. Margins will be tighter. Capital will be more expensive. Talent will be harder to retain and source. Customers will be more cautious. For many owners and CEOs, the pressure feels relentless. But pressure alone does not break businesses. Confusion does.

What leaders need is a practical playbook that strengthens cash control, structure and decision quality while the business is still in motion.

Here are the first three actions we are applying. The next set will follow next week.

1. We have shifted from revenue focus to cash visibility.

Sales numbers are no longer the main metric. Revenue can look healthy while cash quietly drains. In volatile markets, survival is measured in liquidity, not topline growth.

Weekly cash forecasts now guide decisions. The business is focused on inflows, outflows, timing and exposure. The leadership team discusses cash first — before marketing, expansion, or hiring.

Action: We now review a 12-week cash flow forecast every Monday with the leadership team. Depending on the business and industry, this can be shortened to four to eight weeks.

The shift is cultural. Leaders are encouraged to stop asking, “How much did we sell?” and start asking, “How long can we sustain operations?”

2. We are aligning structure with strategy.

Organizations often carry structures that reflect the past, not the future. Roles, departments and facilities grow around personalities and historical success. But in a tighter environment, structure must serve strategy — not old habits.

Every role, department and facility is being reviewed to ensure it supports where the business is going, not where it has been. In a complex market, relying on the mindset “we have always done it this way” is no longer safe.

Action: We are assigning more responsibilities to capable managers while preparing non-sensitive roles for those who are no longer aligned with the company’s direction.

This is not about removing people. It is about repositioning the organization so leadership strength matches business priorities.

3. We are reducing complexity before reducing people.

Cost-cutting often begins with headcount. But inefficiency is usually rooted in systems, not staff. Our mantra is simple: structure defines behavior.

Layers of approvals, unclear authority, duplicated processes and slow decisions destroy momentum and margins. In today’s environment, indecision is a luxury no business can afford.

Action: We are removing unnecessary approval layers to speed up decision-making.

When systems become clearer, people become more productive. Complexity costs more than payroll.

The result so far is not dramatic. It is disciplined. Two managers have already submitted their resignations. They could not handle the change. This was anticipated.

These leadership lessons are not theoretical. They are part of an ongoing conversation I will be continuing in the W+B CEO Series webinar on Jan. 24, 2026 at 10 a.m., where I will discuss how owners can strengthen cash discipline, simplify structures and improve decision-making in uncertain conditions. For inquiries, Christine may be reached at +63 917 324 7216.

In the next part, I will share how we are addressing debt, communication, decision-making and internal performance reviews — without creating fear, confusion, or fatigue. Because leadership in 2026 is not about reacting faster. It is about thinking clearer.

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