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scarcity thinking. We too often assume “we can’t” as a matter or course. Consequently, we have developed a culture of “make do with what we’ve got.”
We learn to pinch pennies, and often do not invest in formally determining our real potential. We mistakenly think we are good stewards if we don’t spend money. We measure our effectiveness by how much we avoid spending, even if we truly need to spend. We authors have seen, time and time again, administrators who set out to explore project feasibility only to be scared off when consultants quote their day rates. We must spend money to make money, but many of us in long-term care can’t get over the hump of scarcity thinking. As the saying goes, we are “pennywise and pound-foolish” without realizing how much it limits our future.
When long-term care administrators converse, the talk is frequently about limitations, constraints and struggle. True, resources are often scarce but our outlook cannot be. Our sense of possibility must be filtered through an outlook of abundance. Our resources are scarce because our outlook is scarce. It can be difficult to recognize this cause-and-effect relationship.
The perception of available resources is often inaccurate. In our work around the country, we authors have talked with hundreds of organizational leaders who had jumped to a unilateral decision of “we can’t afford it.” But upon questioning them, we learned they hadn’t formally tested their assumptions.
Often, decision makers cannot see beyond their informal estimates of the initial cost of physical construction or retrofitting. Their financial analysis does not go beyond calculating estimated construction costs and monthly payments necessary to pay down additional debt. Their conclusions are based only on existing revenues and expenses. Rarely calculated are potential income, census increases and measurable resident/ staff quality of life improvements.
When contemplating large-scale physical plant changes or new construction, many administrators say, “We would like to do the Household Model, but can’t afford it. We’re only going to make small changes.”
Sometimes they are merely afraid of wholesale change and hide behind the “we can’t” curtain. But most times, their habit of scarcity thinking leads them to believe they can’t afford plant changes or replacements involving significant capital investment.
On the other hand, some do formal analysis and rightfully conclude they cannot afford the capital required. They take the important step of investigating and substantiating. But while they may go beyond the efforts
“It is true that resources are often scarce, but our outlook cannot be.”
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