Designing for positive externalities

Designing for positive externalities

When designing policies, products, or services, we should consider how they can create positive spillover effects or externalities that benefit society. Too often, businesses and organizations focus narrowly on financial returns without accounting for social impacts. But well-designed initiatives can simultaneously achieve an organization’s goals while also improving conditions for the broader community.

For example, public transportation design that emphasizes accessibility, sustainability, and rider experience produces positive externalities like reduced traffic congestion, cleaner air, and interconnectivity. Urban planning that prioritizes public spaces, walkability, and mixed-use development creates positive community externalities in public health, social capital, and local economic prosperity. Product design should consider end-of-life recycling and reuse potential. Service design should aim to cultivate human skills and relationships, not just transactional efficiency.

Considering positive externalities moves us from a mindset of isolated benefit to considering our interdependence. By recognizing how our actions radiate out to touch others, we can purposefully generate shared value that improves society as whole.

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Matthew 15:21-28. “Please, Lord, for even the dogs eat the scraps that fall from the table of their masters.”

[DAILY GOSPEL INSIGHTS AND REFLECTION FOR MANAGEMENT AND ORGANIZATION 2023-232: AUGUST 20, 2023]