The scarcity mentality

March 19, 2007

Kudos to Michele Martin who brings up a sticky issue: the scarcity mentality. Her perspective is that the scarcity mentality of nonprofits (the idea that there is only one pie, and we only get our small slice) helps keep nonprofits from taking full advantage of social media (i.e. Web 2.0). I’d argue that it also keeps nonprofits from collaborating together to produce amazingly good open source software projects (or, even closed-source, for that matter) that will help solve their issues and keep them from being captive to either predatory vendors, or vendors whose products, whether it be because of bad design, or not enough resources, promote data lock-in.

If ten similar nonprofit organizations came together to build a system that would work for them, they each would get 10 times the software that they could afford individually. But they are so busy living in that mentality of scarcity and competition, that they can’t do that kind of collaboration. So it doesn’t happen. Web 2.0, collaboratively developed software, and, really, collaborations of all sorts are limited by this mentality.

This reminds me of a true story. A long time ago (in web years) I was working with a certain CEO of a certain chapter of a certain very-big-nonprofit (whose role in life is to fund other nonprofits – this kinda gives it away, but it’s necessary for the story.) We were talking about whether or not this certain nonprofit, who had mondo resources, should help facilitate web development for their client organizations. They had realized that if they did that, the client organizations could begin to raise money themselves, instead of depending so heavily on this certain nonprofit. So, guess what? No web development help. I was, of course, surprised (that’s mild, I was frankly horrified – wasn’t it the mission of this certain nonprofit to help the client nonprofits raise money? Wouldn’t helping them raise money themselves fulfill their mission?) But that’s scarcity thinking for you. Even though this very-big-nonprofit was rolling in money, they thought the pie was finite, and that if the money didn’t go through them, they’d get less. So the scarcity mentality isn’t just for small, struggling nonprofits. It’s very widespread.

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The Bamboo Project Blog
03.19.07 at 7:35 pm

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1 Michele 03.19.07 at 5:14 pm

That’s a pretty sad story, Michelle, and interesting that it was coming from a nonprofit that based on resources shouldn’t have been thinking that way.

What I’m trying to figure out is how to move out of scarcity thinking. This is actually something I struggle with on a personal level, so I can relate to it operating in organizations. But how to stop that kind of thinking on an organizational level is the question. What organizational things can be done to challenge it and change the thought patterns?

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