Disconnectedness

Some of you may have heard of the G8 (Group of 8 wealthiest nations) who meet yearly, and on occasion of their meeting in Scotland recently, there were several concerts around the globe organised to raise awareness of some key decisions those Leaders (India and China are also invited as observers) could make and their impact on poverty.

A recent online discussion took place with some comments on what these concerts did or did not achieve and why; and by taking on some of the thoughts I have developed some thoughts around the idea of disconnectedness which explains a lot of things, and is an important aspect for responsible leaders to bare in mind.

The example I will use is Climate Change and poverty. For climate Change, none of the people who are causing it (the 'west') are actually witnessing its consequences on them (more flooding in Bangladesh doesn't affect them, for example), and if some of the consequences do (for example a hurricane in Florida, USA) then there are always externalities that can be blamed -in the case of the weather, this is always unpredictable and it cannot easily be correlated with climate change, and the changes happening are gradual (not instant). All of this means people do not see the consequences of their actions.

With poverty, there are many charities showing videos of poverty in rich countries and these have an impact on people; who donate money. But, the amounts they donate have little real impact. What might have a bigger impact is buying products from those countries, changing trade rules and so on. Not only do people not donate more money (because although the pictures are horrific, they are only pictures) but they do not change other lifestyle/business options (since the impacts of these only indirectly affect them).

This idea, I believe, is universal; that unless you see a strong correlation (ie. relationship) between your individual actions and either individual or larger consequences then you won't change your actions in order to change the consequences. In a business concept one of the obvious applications to this idea, is how 1 person contributes to an organsiation.

Someone may steal some stationery, not seeing any impact, or they might make a decision with an impact on someone else, or in the future (so not affecting them). For the individual these actions make no difference, but for the organisations they do. Similarly when designing a business plan, the individual should see how they contribute to the whole, and how non-performance affects the bigger results.

Its important then to motivate people with incentives that are directly related to the individual's contribution. Its important for mutual accountability so that when someone does something, the results are noticeable (positive or negative). Think about what other situations this 'disconnectedness' occurs in and how you could remedy it -how can you change processes so that the inputs and outputs are closer aligned?

And if you can think of any ways of making poverty less disconnected for rich people, maybe we can find solutions to those kinds of problems too!