The Agency Problem: When Agent Relationships Aren’t Working

Why Your Team Isn’t Growing, Even When Everyone’s “Doing Their Job”

In modern organizations, misalignment isn’t always loud. Sometimes it looks like quiet compliance, polished metrics, or well-dressed meetings that go nowhere. At the heart of this dysfunction is the agency problem: when agents (leaders, employees, vendors) optimize for their own comfort or success instead of the principal’s goals. Whether you're a CEO, founder, or team lead, understanding this breakdown is critical to restoring momentum, trust, and growth.

This post explores the classic principal-agent dilemma through a modern lens, diagnosing misaligned agency incentives across teams, vendors, and leadership, and offering actionable strategies to realign your organization around impact.