THE EFFECTIVE PROBLEMSOLVER #080
In the social sector, we often find ourselves relying on large-scale investments to address complex problems.
Whether it’s pouring billions into housing programs or expanding healthcare initiatives, the assumption is that bigger budgets lead to better outcomes.
But what if we’ve been missing the real opportunities for change?
What if the key to solving these issues lies not in the size of our investments but in the small, strategic adjustments we make to the system?
The Hidden Power of Leverage Points
Leverage points are the small, strategic changes within a system that can produce significant, systemic impacts.
These are the points where a little push can set off a chain reaction, transforming the behavior of the entire system.
Social sector leaders who understand and target these leverage points can achieve far more than those who focus solely on increasing quantities—like funding or service delivery—without addressing the underlying causes of the problem.
The Housing Crisis: A Missed Opportunity
Let’s take the housing crisis as an example.
Governments often respond to housing shortages by dramatically increasing spending on housing programs. This might involve building new units, providing subsidies, or funding affordable housing initiatives. While these efforts are well-intentioned, they represent a common but costly oversight.
By focusing on the scale of investment, we may be missing the forest for the trees.
The reality is that even substantial government spending on housing barely scratches the surface of the problem. The housing market is vast, and public investments, however large, are often dwarfed by the market’s sheer size and complexity. This approach overlooks the real leverage points—those small, often overlooked factors that can have outsized effects.
The Real Leverage Point: Zoning Regulations
One of the most powerful yet underutilized leverage points in the housing market is zoning regulations.
Many municipalities enforce single-family home zoning, restricting land use to single-family houses and preventing the development of multi-family units like apartments or townhouses. These regulations significantly constrain the housing supply, driving up prices and exacerbating shortages.
But here’s the provocative idea:
What if the solution to our housing crisis isn’t more money but smarter regulation?
In cities like Minneapolis and Portland, recent changes to zoning laws have begun to unlock housing supply without requiring massive public investments.
By allowing more diverse types of housing to be built, these cities have started to address their housing shortages more effectively than through expensive government programs alone.
This shift is nearly cost-free for taxpayers and the government.
It doesn’t require building new homes, allocating new funds, or passing expensive legislation.
Instead, it involves removing artificial constraints on the market, allowing it to adjust naturally to demand. These small regulatory changes—these leverage points—can have a massive impact, making housing more affordable and accessible without the need for large-scale public spending.
Challenging the Status Quo: Are We Missing the Point?
In a sector where success is often measured by the size of our budgets, it’s easy to fall into the trap of believing that more money means more impact. But what if that’s not the case?
What if we’ve been approaching these problems backward, and the real solutions lie in small, targeted changes?
This isn’t just about housing.It’s a broader challenge to how we think about social change.
By focusing on leverage points—those small, strategic shifts that can transform a system—we can achieve far greater results with fewer resources.
The lesson for social sector leaders is clear:
Don’t just throw money at the problem. Look deeper. Find the leverage points. And make the small changes that can lead to big wins.
Real-World Success: A Call to Action
The success stories from Minneapolis and Portland are just the beginning.
Imagine what could happen if we applied this thinking across other sectors. Whether it’s healthcare, education, or economic inequality, the potential for transformative change is enormous.
But it requires a shift in mindset—a willingness to challenge our assumptions and rethink our strategies.
As social sector leaders, we have a choice.
We can continue with business as usual, focusing on large-scale investments and hoping for the best.
Or we can start looking for the leverage points that will truly make a difference. The choice is ours, but the potential rewards are too great to ignore.
See you in two weeks.