Structure Creates Culture
In the public sector, where the mission is often greater than any individual paycheck, we civil servants know all too well the frustrations of bureaucracy. We push for change amid rigid hierarchies, endless paperwork, and a culture that sometimes prioritizes stability over innovation. But what if the key to transforming that culture isn't in motivational speeches or top-down mandates, but in the very structure of our organizations? This is the core insight from Safi Bahcall's book Loonshots: How to Nurture the Crazy Ideas That Win Wars, Cure Diseases, and Transform Industries. Bahcall argues that "structure creates culture"—a principle that resonates deeply in public service, where monetary incentives like bonuses or stock options aren't on the table. Instead, we rely on purpose, recognition, and smart design to drive behavior and foster progress.
The Essence of "Structure Creates Culture"
Bahcall draws from physics to explain organizational dynamics, likening teams to molecules in water. At room temperature, water flows freely—innovative and adaptive. Drop the temperature just a bit, and it freezes into ice: rigid and unyielding. The shift isn't gradual; it's a phase transition triggered by a small change in structure (temperature). In organizations, similar "phase transitions" occur when structural elements—like incentives, team sizes, or decision-making processes—tip the balance from creative chaos to stagnant order, or vice versa.
In Loonshots, Bahcall introduces the concept of nurturing "loonshots"—wild, seemingly impossible ideas that can lead to breakthroughs. He warns that as organizations grow, they often prioritize "franchise" work (safe, operational tasks) over risky innovation. The solution? Design structures that separate the "artists" (innovators experimenting with loonshots) from the "soldiers" (those executing core operations), while ensuring mechanisms for ideas to transfer between them. This isn't about changing people's personalities; it's about engineering the environment so that the right behaviors emerge naturally.
Why This Matters in the Public Sector
Public organizations—government agencies, NGOs, and public prosecutors' offices—face unique challenges. We don't have the luxury of financial rewards to motivate teams. Salaries are often fixed by law, and performance bonuses are rare or prohibited to avoid corruption risks. Yet, our work demands innovation: tackling climate change, improving public health, or streamlining justice systems requires bold ideas amid constrained budgets and political pressures.
Here, "structure creates culture" becomes a powerful tool. Without money as a lever, we must focus on non-monetary structures to shape behavior:
Hierarchy and Decision-Making: Flat structures can encourage ownership and risk-taking, but in large public bodies, layers of approval often stifle ideas. Bahcall suggests "loose coupling"—keeping innovative teams semi-independent, like skunkworks projects in defense agencies. For example, a public health department could create a small "innovation lab" with dedicated time for experimenting on digital service delivery, insulated from daily operational demands but required to report progress quarterly.
Recognition and Stakes in the Game: In the absence of bonuses, make outcomes personally meaningful. Bahcall talks about "return on politics" (ROP)—the effort needed to advance ideas versus climbing the ladder. In public service, we can lower ROP by tying recognition to impact, not just tenure. Public shout-outs in meetings, certificates of excellence, or opportunities for cross-departmental projects can make innovators feel valued. Imagine a municipal office where teams earn "impact badges" for piloting new citizen engagement tools, visible on internal dashboards.
Team Size and Incentives: Bahcall's "magic number" (around 150 people) marks when organizations shift from collaborative to bureaucratic. In oversized public agencies, break into smaller pods with clear autonomy. Incentives here aren't cash but mission alignment: Frame goals around public good, like reducing case backlogs in a prosecutor's office, and track them transparently to build a culture of accountability and pride.
These structural tweaks don't require massive overhauls. Small changes, like dedicated "innovation hours" or peer-review systems for new proposals, can create a culture where loonshots thrive without disrupting core services.
Applying It to OKRs in Public Organizations
In my work implementing Objectives and Key Results (OKRs) in the public sector, I've seen how structure directly influences culture. OKRs—a goal-setting framework popularized by Google—provide a structured way to align teams around ambitious objectives while measuring progress through key results. But without the right structure, OKRs can become just another bureaucratic layer.
Drawing from Bahcall, we can use OKRs to foster a "loonshot-friendly" culture:
Separate Exploration from Execution: Set "stretch" OKRs for innovative projects (e.g., "Pilot AI for fraud detection in welfare programs") alongside operational ones (e.g., "Process 95% of applications on time"). This mirrors Bahcall's artist-soldier divide.
Non-Monetary Rewards: Link OKR achievement to intrinsic motivators, like professional development opportunities or public recognition. In one Brazilian public prosecutor's office, teams hitting OKRs got first dibs on high-impact cases, boosting engagement without a dime spent.
Check-Ins as Transfer Mechanisms: Regular OKR reviews act as bridges, allowing ideas from innovative teams to influence operations. This prevents silos and encourages a culture of shared learning.
The beauty is that structure does the heavy lifting. By designing OKRs with Bahcall's principles in mind, public leaders can shift from a risk-averse culture to one that embraces thoughtful experimentation—all while honoring our calling to serve.
Building a Better Future, One Structure at a Time
Public servants are the unseen architects of society. We wade through red tape not for glory, but because we believe in fairer institutions and stronger communities. Bahcall's message in Loonshots reminds us that culture isn't accidental; it's engineered. In a sector without monetary incentives, focusing on structure—through thoughtful hierarchies, recognition systems, and frameworks like OKRs—can unlock the innovation we need.
If you're in public service, start small: Audit your team's structure and ask, "Does this encourage the behaviors we want?" The phase transition to a more dynamic culture might be closer than you think. After all, as Bahcall shows, the greatest breakthroughs come from nurturing those crazy ideas. Let's structure our organizations to let them flourish.
