Can We Save the Rich-Poor Life?

The cover story in the current Atlantic magazine asks, “Can the Middle Class be Saved?” and tells the sad story of the economic and social pain being felt by those who once thought themselves “safe.” It is the latest chapter in the chronicle of the fraying social contract that many Americans took for granted.

Library of Congress Photo courtesy of KansasPhoto (Flickr Creative Commons)

I have been thinking for some time about the gradual disappearance of what I call the “rich-poor” life. This is the life once lived by my grade school teachers who didn’t have a lot of money but who managed to be culturally rich. They traveled and brought their slides to school. They read books and saw films. They visited museums.  They were educated, sophisticated, and adventurous without being slaves to a job or worrying about health care. This was a life I always felt that I could live as a fall-back should I find myself in hard times. Now, I’m not so sure.

The rich-poor life depends upon public libraries, free nights at museums, public lectures, open rehearsals at the symphony, theater in the park, the parks themselves, and so much more. It needs quality public spaces and those “third places” where one can find a reasonably priced cup of coffee or glass of wine and spend an hour conversing. At a more fundamental level, it requires quality public schools so that people cultivate a taste for cultural exploration, an appreciation of nature, and a thirst to learn. Each of these is under threat by our current economic downturn with funds dwindling and, more significant, a turning away from viewing social spending as necessary.

I may have a romantic view of the rich-poor life, thinking that I could survive happily in a small garret with my books, tea (OK, wine), and a subway pass. For many, however, these resources are critical for social mobility. It was for my parents and many other people of their generation. The library, the arboretum, the museum opened a view on the world that inspired them to study. They saw a better life and a way to get there. They saved and worked and strove.

Instead we have been sold, and to be fair have happily bought, a poor-rich life full of easy credit and the mountains of stuff it makes possible: a new car leased every two years, acres of granite counter tops, and useless gee-gaws that give us a momentary purchase high.  We can’t live without 200 cable channels so that we can track every movement of the Kardashians (who are they and what do they actually do?).  We have failed to address the decline in public education in a meaningful way for more than a generation.  Household debt is up; social mobility is down. Unemployment is up and so is income inequality. Our public infrastructure is a shambles. We’ve quite willingly sold our collective soul to the company store.

This is not about the “nanny state.” This is about how much of our common wealth should be hidden behind a pay wall. Is there a certain amount of life that should be free or is it all going to be pay-to-play? I believe that making it possible to have an intellectually and culturally rich life at low or no cost is critical to the fabric of a healthy democracy and vibrant economy.

Is it that important, this rich-poor life? We have reached a point where it seems we cannot afford to be us. Or at least us as we’ve defined it over the past 20 years. We’ve just witnessed widespread rioting in London. When people at every economic strata cannot live satisfying lives, pressure builds and eventually bursts. When we hollow out life so that it is defined only in economic terms, it becomes expensive at best and impossible at worst for many people to find that satisfaction. That is a tragedy for  individuals and society as a whole if we wish them both to be sustainable and resilient.

The Complexity of Complexity

Keep It Simple, Stupid (KISS) is among the first admonitions given to young managers. Rafts of management tools – from spreadsheets to process flow diagrams to slideware to organizational charts – help codify this commitment to a worldview that is linear, orderly, and rooted in simplicity: Cause and effect are clear. Relationships are precisely delineated. Plans march step-by-step toward a pre-determined end.

Leaders, however, must acknowledge that while simplicity has its place, the world is non-linear, disorderly, and in many ways unpredictable. Leaders need to embrace and understand complexity.

In a literature survey that I conducted this past spring I found that complexity was a topic not covered in depth in most traditional leadership scholarship (I will cover the other “missing” topics in future columns). A relatively small group of thinkers including Meg Wheatley, Peter Senge, and Donella Meadows have rooted their work in a systems-based world view that brings complexity to the fore and offers important leadership insights.

One approach to complexity that I have found particularly useful was developed in the 1950s by Dr. Warren Weaver to help explain the evolution of scientific thought. In Weaver’s framework, Simplicity refers to challenges with 1 – 4 variables. Disorganized complexity refers to challenges with many, many independent variables such that sophisticated statistical analysis is necessary to understand it. As organizations and cities become more sophisticated with analytics, they become more comfortable with disorganized complexity. In between the two, and often overlooked, is organized complexity. These situations have more variables than found in simplicity yet fewer than disorganized complexity and, more important, there are interdependencies between the variables. Jane Jacobs, in her classic Death and Life of Great American Cities, felt that neighborhoods were examples of organized complexity.

Senge, in his book The Fifth Discipline, made a similar distinction between detail complexity (arising from a large number of variables) and dynamic complexity (arising from the relationships between the components where cause and effect may not be clear and may vary over time).

Much direct mail fundraising activity is an exercise in disorganized complexity. Offers are sent to thousand or perhaps millions of people. Each responds or not independent of any of the others who have received the offer. The complexity is mastered through averages (response rate, gift size, etc.) derived through statistical analysis. Success is achieved when those autonomous responses conform to or exceed the predicted average response.

Large organizations, by contrast, represent organized complexity. Key to success is understanding the interdependencies and relationships between the components.  Marketing may generate thousands of gifts but if Member Services does not follow up with a “thank you,” if Purchasing does not procure the promised premium, if Fulfillment does not send the premium, and if Accounting does process the donations success will not be achieved.

It is not uncommon for people in organizations – or their external constituencies – to complain that “the left hand doesn’t know what the right hand is doing.” In my experience, things are often arrayed so that they make sense on paper – a simplicity-based view – but are derailed by sour personal relationships, misaligned or conflicting incentives, or a failure to discern hard-to-see interdependencies. For example, Marketing may have had an opportunity to get into the mail early and failed to notify Purchasing that premiums would be needed sooner than planned. Or Purchasing, incented to save money, may have switched suppliers resulting in a delivery delay. At one level, this is management: getting people to do things right. At a higher level, however, it is about leading through complexity.

Leaders must continually work to ensure that each component of their extended enterprises – within and outside of their formal organizations – has clarity on three things: purpose, values, and the business model.  Purpose is understanding the job that the customer is hiring you to do – if they are donating to your environmental organization they want to know that their money has been received and is being put to work. If they opted to receive the premium product, they may also value the chance to promote their efforts on behalf the natural world. Values are the bedrock principles by which you operate – among which may be providing the highest level of service to members. The business model is how the organization remains financially viable – and understanding that saving a nickel on each tote bag may cost more than it saves if they arrive a month late.

The dynamic nature of complex systems means that clarity is always threatened. People come and go, assume new roles, and acquire new experiences. Market conditions shift. Competitors act. Leaders must always try to see the whole and help those they lead see it as well. Embrace complexity and give others clarity. Then people will begin to act as parts of the system and more accurately perceive their impact on the rest of the system.

Action Plan

-          Read more about leadership and complex systems. Donella Meadows’ article, “Leverage Points: Places to Intervene in a System” or the book A Simpler Way by Meg Wheatley and Myron Kellner-Rogers are great places to start.

-          Pursue clarity around Purpose and Values as well as the Business Model. Many meetings begin with a review of “the numbers.” Try starting one with a conversation about purpose or values to signal that these are high on your agenda and to find fuzziness around why and how you operate.

-          Exercise a framework for understanding complexity. Whether you adopt Weaver’s, Senge’s, or another approach, practice using complexity as a diagnostic for addressing situations you face. Keep notes on where relationships between elements rather than the elements themselves are the critical issue to resolve.

A version of this post appeared on BecomeaLeader.org.

Renegotiating Health Care Excerpt Now Available

The second edition of Renegotiating Health Care has hit the shelves. It is my first book and I have to say that I am pleased with the end product. It has been a pleasure working with my co-authors and the team at Jossey-Bass.

If you’d like a free preview, please download the preface and first chapter with our compliments: RHC 2nd Ed Excerpt

I particularly enjoyed the opportunity to interview health care leaders from front line docs and nurses to hospital CEOs to policy makers and administrators. I encountered many smart, thoughtful people with interesting, innovative ideas about how to meet the challenges of high quality care at an affordable cost. You’ll meet many of them in the book — and I hope you’ll be tempted to send a copy to your representatives in Washington.

If you are interested in having me or one of my co-authors speak at your conference or meeting, please use the contact form on this site to be in touch.

Leading Transformations — Are You Ready?

My first post is up on becomealeader.org — a site targeted principally at social enterprise and non-profit/third sector leaders. It addresses the challenges of leading transformations (in organizations and in society). It is based on research from Harvard Business Review and Business Strategy Review and offers an action plan based on self-discovery, celebration of diversity of perspectives, and rethinking listening.

Your thoughts and comments are encouraged!

 

Leading Complex Systems

Over the spring 2011 semester I spent considerable time looking at the challenge of leading complex systems. This was the first of what will be a six-semester effort over the next three years. In this initial, broad brush examination I used the sustainable city as proxy for a complex system. I also looked at both the literature on systems and systems leadership as well as at traditional leadership work to see if I could discover why there seems to be such a vacuum of leadership at the system level. The resulting paper, very much a work in progress, is posted below.

Among my findings was that the traditional leadership literature — that which most of us are taught — comes up short on three critical points:

- Complexity: a leader must understand what kind of complexity he or she confronts and have a framework for dealing with it. There are dramatic differences, for example, between disorganized and organized  complexity (see the paper for details);

- Agency: how much do leaders control completely versus how much do they co-control and co-create with others. In complex systems, leaders control less and can influence more than they realize;

- Emergence: how much can leaders design versus how much must they help establish the conditions in which a positive outcome emerges. There is a strong predilection toward the former yet reality is closer to the latter.

I welcome your comments and will continue to post updates on this work as they are ready.
Download the PDF: Meta System Leadership