In John’s Q2 results email he said, “We’ll need to embrace a market-based culture and continue executing against our 2026 priorities.”
That got me thinking… what exactly does “market-based” mean?
A market-based system generally means rewards and consequences are tied to performance. High performers create more value and are rewarded accordingly. Poor decisions and poor performance have consequences. Resources flow to what works, and what doesn’t work gets changed or terminated… That’s not how this place feels.
For employees, compensation isn’t meaningfully tied to individual performance. Top performers and average performers often receive very similar outcomes, while broad policies apply to everyone regardless of results.
And if we’re truly going to talk about a market-based culture, shouldn’t that standard apply at every level of the organization, including leadership?
A market-based culture shouldn’t just measure employees. It should measure strategies, capital allocation, recruiting, retention, culture, innovation, and long-term shareholder value.
The phrase “market-based” only has meaning if accountability flows both ways. Otherwise, it’s just another slogan.