The Behaviorally-Minded Leader: fixing the system VS fixing people. Culture shift isn't about shifting people.

Are PEOPLE really ever the problem?

We tend to think so. There’s even a scientific name for it: The Fundamental Attribution Error (FAE). It’s the tendency to overemphasize people factors and underestimate situational ones when explaining behavior.

If someone cuts you off in traffic, you label them rude. Rarely do we pause to imagine they’re rushing to the hospital, or just something very important to them. And yet, when WE make a mistake, we point to circumstances, not character.

I’ve just recorded new podcast episodes with applied behavioral scientists who’ve seen this play out in business again and again. Scott Young, for example, spent decades running a marketing agency to provide customer insights before turning to behavioral science to favorably shape those insights instead.

“One of the things I learned,” Scott told me, “is that internal change inside organizations - engagement, attrition, compliance, psychological safety - depends a lot more on good processes and environments than on education, knowledge, mindsets or how people are.”

I’m guilty of that too, of trying to “fix” people, when the real leverage is in fixing the system. (In my coaching I've transitioned but personally still struggle to do the same for myself)

And that's what Scott hopes to improve with his work with organizations - helping them see the system flaws instead of flawed people,

1. Performance Reviews

  • Fallacy: “She’s disorganized and unreliable. She's always behind deadlines.”

  • Reality: She’s carrying 3 jobs because of understaffing, deadlines are unrealistic, and approvals get bottlenecked.

  • Flip: Instead of “What’s wrong with her?”, ask “What’s getting in the way of her success?”

2. Employee Engagement

  • Fallacy: “Our employees don’t care.”

  • Reality: There’s no psychological safety, goals aren’t tied to purpose, and middle managers are too burned out to support anyone.

  • Flip: Engagement isn’t about “bad people.” It’s about whether the environment supports meaning, autonomy, and recognition.

3. Change & Transformation

  • Fallacy: “They’re stuck in their ways.”

  • Reality: Training was rushed, the system is buggy, and frontline staff were never consulted, so the change feels like punishment.

  • Flip: Resistance is a signal of poor design, not stubborn employees.

Leadership takeaway:
When you catch yourself labeling behavior as a “personal flaw,” pause and ask:

“If I dropped a high-performer into this system, would they likely struggle too?”

That single question shifts the lens from blamesystem design.

Over to you, dear reader,

Today, when you see someone’s behavior (or your own) that frustrates you, stop trying to fix the person. Instead ask,

What process, environment, or incentive could I redesign to make the right behavior easier without changing the person at all?