Building cultures of adaptability: Why leadership must reward reinvention

Drs Schuster & Oxley
February 25, 2026
5

In many large organizations, a quiet contradiction exists. Leaders speak of innovation, agility and transformation, yet the systems they oversee encourage the status quo. Employees are guided toward consistency, predictability and adherence to “how things are done here”. Phrases such as “you will quickly figure out how we do things around here” or “our culture has served us well for decades” may sound benign. However, they often reflect an institutional desire to control behavior and reduce variance. Over time, these tendencies become embedded in HR processes, performance management, recruitment criteria and reward structures.

What begins as cultural pride can calcify into cultural rigidity. As organizations grow, structures that enabled early success can slowly become constraints. Mature firms shift from experimentation to efficiency, just as humans move from adolescence to adulthood. While efficiency drives scale, it also diminishes adaptability. This risk becomes especially pronounced in the context of artificial intelligence (AI), where rapid technological shifts demand continuous reinvention.

The central question, therefore, is not merely how to adopt AI, but how to cultivate an environment in which people feel both safe and motivated to experiment with it.

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