Triple Bottom Line: Why Profit Isn’t Everything | Lessons from a B Corp CEO

Audio Triple Bottom Line: Why Profit Isn’t Everything | Christian J. Agulles, PE, President & CEO, PAE

Video Triple Bottom Line: Why This CEO Says Profit Isn’t Everything

Chapter-by-Chapter Summary

Following are the sections we covered in this conversation with their summaries, along with the time location in the video and audio to follow along. The timestamps in orange correspond to the chapters in the YouTube version of the podcast episode. This video will display to the lower right as you scroll down. 

05:08 B Corp and the Triple Bottom Line: People, Planet, Profit

A B Corporation is a certification that recognizes companies that treat business as a force for good. It requires rigorous documentation showing how decisions consider financial results as well as social and environmental impact. PAE uses a triple bottom line lens: people, planet, profit. That lens guides hiring, project selection, community engagement, and internal policies.

Famous B Corps like Patagonia make environmental mission central to their identity. PAE models the same idea in engineering work from hospitals to airports to data centers.

07:44 From Corporate Growth to Purpose

Christian spent two decades in a large firm that became focused on mergers and acquisitions, EBITDA and growth for growth sake. He found that approach hollow. After reflecting on the second half of his career he joined PAE because its purpose aligned with his values. Purpose matters not as a slogan but as the filter for every major choice.

Christian credits his predecessor Paul Schwarz for setting PAE’s triple bottom line values and B Corp path. His role became stewardship: maintain what works and build on that foundation.

10:47 Stoic Philosophy and Leadership Reflection

Stoic ideas inform Christian’s leadership. He distills stoicism into practical principles leaders can use every day:

• Focus on what you can control
• Accept what you cannot
• Improve what you touch
• Lead with calm in chaos and act with courage
• Serve with purpose

He pairs reflection with a gratitude practice. Daily review of successes, mistakes and next steps creates alignment between values and actions. A recommended longer exercise is the ten year rewind: ask what advice you would give your ten year younger self in decade increments. That helps clarify priorities and purpose.

18:22 Clean Air, Water and Energy for All

PAE’s vision is simple and broad: clean air energy and water for all. That vision translates into project choices that lower embodied carbon, cut operational energy use and reduce municipal water demand. Christian frames the work as legacy oriented. As Marcus Aurelius wrote, "What we do now echoes in eternity." The aim is to make a measurable contribution within one generation.

21:29 3 Pillars of the Strategic Vision

PAE’s strategic plan rests on three pillars. Every decision must serve at least one pillar:

1. Accelerate our impact - pursue projects and programs that scale environmental benefits
2. Develop technical tools - invest in methods and standards that deliver results
3. Invest in people - mentor the next generation of leaders and cultivate belonging

Discipline is essential. Engineers often believe anything is possible. Saying no is harder than saying yes. These pillars create a clear filter for prioritizing work.

26:54 The Living Building Challenge and Regenerative Design

A standout example is PAE’s headquarters living building in Portland. It meets the Living Building Challenge which requires a building to be regenerative:

• Generate more energy than it uses
• Operate without drawing municipal water by collecting and treating rainwater for drinking and flushing
• Use low embodied carbon materials such as mass timber

Building to those standards cost more up front. PAE accepted that because demonstration matters. The living building attracts talent, strengthens recruitment, improves staff engagement, and generates thousands of tours that spread knowledge. The long term benefits exceeded the initial premium.

32:17 No Margin, No Mission: Balancing Profit with Purpose

Christian emphasizes the tradeoff: no margin no mission. Profit is not a dirty word. A company must be financially healthy to fund its purpose, pay people fairly, and invest in impact. Profit and purpose must stay in balance.

PAE intentionally avoids squeezing utilization to the highest industry levels. While some top firms chase about 65 percent utilization on billable time, PAE targets 55 to 56 percent. That lower number gives staff time for mentoring, research, community service and other nonbillable activities that advance impact.

37:54 Building a Culture of Support

Culture at PAE centers on people. Employee surveys show the most common reason people stay is their colleagues. Retention is high with about 90 percent of staff remaining year to year.

Programs that support mental health and reduce stigma are part of the culture. Examples include:

• Paid volunteer time: 20 hours per year per employee
• Company supported community service events
• Mental health panels and open conversations
• Management training on crucial conversations

39:55 Reframing Perspective: "Have To" to "Get To"

A simple mindset shift Christian uses daily is changing “have to” into “get to.” The change moves tasks from obligation to opportunity. Instead of "I have to drive two hours to a tournament," say "I get to spend two hours with my child." Small reframes transform stress into gratitude.

41:32 Building Trust and Transparency as a CEO

Christian runs a transparent organization and recognizes trust must be earned. During leadership transitions the company saw a dip in confidence in leadership from near 90 percent to 75 percent. That level remains strong but requires deliberate work to rebuild trust.

Actions that support trust include:

• Frequent employee engagement surveys and follow up
• Quarterly synthesis of feedback and public action plans
• Direct conversations with randomly selected staff to gather qualitative insights

Transparency means sharing results and showing how feedback drives change.

48:49 Leadership Trust and Organizational Change

Glassdoor and public reviews tend to amplify negative experiences. Christian explains how leadership decisions that appear profit driven are often complex tradeoffs tied to workload forecasting. When staffing and backlog diverge for a sustained period adjustments may be necessary to keep the company stable.

PAE uses multiple feedback channels to understand reality beyond metrics. That includes structured 30 minute interviews with a representative sample of staff. Those conversations produced action items such as improving coaching mentorship and knowledge sharing.

56:35 Humanizing Organizational Feedback

The firm treats people as its product. Everyone is essential or they would not be there. That belief shapes policies like reasonable utilization targets, paid volunteer time, and supportive communities inside the firm.

Practical programs to humanize feedback include:

• Pods of four to five people who meet weekly for connection and check ins
• Rotation of pod membership to broaden relationships
• Crucial Conversations training to equip leaders with tools for high stakes discussions
• Strength Deployment Inventory to understand how people are wired and how to communicate across styles

01:01:26 Leading with Authenticity and Vulnerability

Christian believes authenticity requires vulnerability. He shares his own impostor syndrome and the leadership growth work he did after receiving tough 360 feedback. Executive coaching helped him close the gap between intent and perception.

Key leadership habits he models are:

• Admitting imperfections
• Sharing personal struggles that normalize human experience
• Asking for feedback and acting on it

01:04:01 Dark Night of the Soul

Christian experienced deep doubt early in his PAE tenure. Moving family back to California and rebuilding an office from scratch was stressful. He questioned whether he could grow the practice and keep staff engaged. The breakthrough came from doing steady work, reconnecting with clients, and hiring trusted colleagues who shared purpose.

Another painful moment came from 360 feedback that revealed how he was perceived. The executive coaching journey that followed was humbling and necessary to prepare him for higher leadership.

01:11:33 Grounding in the Midst of Change

To stay grounded Christian recommends three complementary practices:

• Check your entrance state - are you operating from ego or from care for all
• Slow down and seek multiple perspectives - avoid panic by listening to informed contrarian views when hype is high
• Manage the monkey brain - use simple rituals like deep breaths or a glass of cold water to reset and reenter as your best self

On AI he stresses calm perspective. AI is a powerful tool but not an instant replacement for humans. Focus on equipping teams with tools that accelerate impact.

01:17:57 Advice to Leaders Searching for Purpose

The core advice is to know your why. Spend time journaling and reflecting on the impact you want to leave. Align daily work with that purpose so choices become clearer and more energizing.

Practical steps:

• Write a personal mission statement
• Review decisions against that statement
• Design your career so more days are in service of your why