The Culture You Want vs. the Culture You Have

Companies often claim to value risk-taking, ownership, and innovation, but their systems frequently reward caution, approval-seeking, and maintaining the status quo. Over time, people align their behavior with what actually works, not what leadership says. If you want a different culture, you have to change the incentives and constraints that shape daily decisions.

Carter Cathey

4/8/20262 min read

Companies don’t have culture problems. They have incentive problems that show up as culture problems.

You hear the same themes repeated across almost every organization.

Take risks. Think like an owner. Be innovative. Push the business forward.

On the surface, these are all the right things to say. They signal ambition, accountability, and growth. The problem is not the message. The problem is what actually happens when someone tries to behave that way.

Companies say they want people to take risks, but then punish failure when an initiative does not work. The result is not a risk-taking culture. It is a culture where people learn very quickly that the downside of failure is real, while the upside of trying is uncertain. Over time, the rational response is to play it safe.

Companies say they want innovation, but they staff their teams so leanly that there is no capacity to step away from the day-to-day. I saw this firsthand at a market research company where leadership talked constantly about experimentation and trying new things. In reality, the system was so tightly wound that even small deviations from the daily workload created downstream problems. People were not resisting innovation. They simply did not have the time, space, or energy to pursue it. The organization was effectively rewarding stability and throughput, not experimentation.

The same pattern shows up with the idea of “thinking like an owner.” Ownership requires judgment, initiative, and action. But in many organizations, every meaningful decision requires layers of approval. People are told to take responsibility for outcomes, but not given the authority to influence them. Over time, that disconnect starts to feel less like guidance and more like a lack of trust. People adjust accordingly. They stay within their lane, avoid unnecessary exposure, and wait for direction.

None of this happens because people are unwilling to do the right thing. It happens because the system is consistently reinforcing a different set of behaviors than the ones being described.

If you want a culture of risk-taking, you have to create room for failure and absorb the cost when things do not work.

If you want people to think like owners, you have to give them the authority to act and the space to make decisions.

Otherwise, you are not shaping culture. You are just describing a version of it that the system does not support.