THE EFFECTIVE PROBLEMSOLVER #068
A client of mine – let’s call her Kathy – leads a large economic development organization in a large US city. (I’ve changed her name and a few details to protect confidentiality.)
She recently asked me:
“Are some goals - and the initiatives designed to achieve them - always good, or do they depend on environmental conditions?”
She was asking about a group of philanthropic leaders in her community that had long been dedicated to addressing disparities in homeownership among underrepresented populations.
They had spent years meticulously crafting an initiative aimed at making the dream of homeownership a reality for families who had long been excluded from the housing market.
Coincidentally, on the same day the initiative was publicly announced, the Wall Street Journal ran a headline article: “There’s Never Been a Worse Time to Buy Instead of Rent.”
The subtitle explained that:
“It is now 52% more expensive to buy a home than to rent one because of climbing mortgage rates.”
Here’s what Kathy wanted to know:
Had the vision of reducing homeownership disparities taken precedence over the pressing economic realities that suggested renting might be a more prudent option for many families?
Many professional peers had been pressuring her to endorse and financially support the new initiative, and she wanted to know how to respond.
Let’s dive into this thorny question and figure out what Kathy should do.
What’s the worst that could happen?
As I spoke more with Kathy about this initiative and whether it’s goal was worth pursuing at this unique economic time, she described the scenario she most feared:
The initiative would be rolled out and excitement would ripple through the community.
Financially insecure families who had been renting for years would see the opportunity to finally own a piece of the American dream.
With philanthropic and government assistance on offer, the allure of homeownership would seem irresistible.
However, in the excitement of the initiative, the currently astronomical costs of buying a home would be forgotten or ignored.
The initiative would subsequently claim success that they had moved the needle on home ownership rates for their target population, but many families would be locked into costly mortgages – and stuck in bad financial situations – for decades into the future.
Solutions depend on context
The potential solutions to complex problems like homelessness are influenced by a bunch of different things that can change depending on time and place.
One big factor is the economy.
When the economy is strong, people might have an easier time finding jobs and affording housing and healthcare.
But when times are tough, like we experienced during Covid, it can be much harder for folks to make ends meet.
So, depending on how the economy is doing, the challenges people face – and the solutions that could work – might be totally different.
Said another way, economic context is a huge clue to figuring out how to tackle big social problems effectively.
Kathy’s strategic plan for influence
As Kathy and I delved deeper into the complexities surrounding the home ownership initiative, we recognized the need for a respectful and tactful approach to influence its direction effectively.
With this objective in mind, we outlined a strategic plan for Kathy to engage with the philanthropic leaders and stakeholders involved.
Initially, Kathy intended to initiate open and constructive dialogue with each of the initiative’s leaders, acknowledging their admirable intentions while emphasizing the importance of considering broader economic conditions and long-term financial well-being.
By framing her suggestions within the context of shared goals and aspirations, Kathy would seek to foster a collaborative approach to revising the initiative’s objectives and strategies.
To promote adaptability and flexibility, Kathy would then propose to integrate dynamic and responsive elements into the initiative’s framework.
This would include establishing mechanisms for ongoing evaluation and adjustment based on changing economic conditions and emerging insights.
By embracing a mindset of continuous learning and improvement, Kathy hoped to ensure the initiative’s effectiveness and relevance in addressing the evolving needs of the community.
Furthermore, Kathy would emphasize the value of adopting a holistic approach to wealth that transcended mere home ownership.
Encouraging the philanthropic leaders to broaden their perspective on wealth accumulation, she would advocate for additional initiatives that promote financial literacy, asset-building, and economic empowerment across diverse socioeconomic backgrounds.
Cultivating relationships
However, Kathy and I recognized that influencing change goes beyond implementing ideas—it’s about fostering relationships and listening attentively.
Therefore, the most significant takeaway from our conversation was Kathy’s commitment to remaining mindful of diplomacy, empathy, and patience in her interactions.
By embodying these traits and championing a shared vision of inclusive prosperity, Kathy would be embodying the qualities of an effective problem solver.
While there’s no guarantee of success, by building trust, fostering dialogue, and championing collaboration, Kathy is poised to shape the home ownership initiative towards greater effectiveness.
TLDR
- Context matters for how solutions are designed.
- Tact matters for how you effectively influence solutions.
- Relationships matter for long-term problem solving effectiveness.
See you next week.
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