The Tractor Factor

I spent 12 years of my career working with non-profits run by dairy farmers. The budget discussions were always fascinating. The farmers would spend hours debating projects that cost between $20,000-50,000 and then in the blink of an eye they would approve projects with million dollar price tags.

The subject matter didn't seem to be a factor as the projects both large and small came from the same pool of projects (advertising, nutrition education, p.r. and research). The defining factor was money. My theory was that the dollar amounts in the $20-50K range was approximately the same cost as a tractor. The farmers knew what it meant to buy a tractor but didn't have a frame of reference for a $10 million advertising campaign.

The Tractor Factor is alive and well in Clive Thompson's article on the Psychology of Numeracy (how we understand numbers) in September's issue of Wired. Mr. Thompson discusses the impact of Bill Gates applying his skill in working with big numbers to stamping out maladies like malaria, diarrhea, and parasitic infections. Most people are hard wired to approach philanthropy by focusing on very small numbers of individuals (groups that don't get much larger than an extended family), while Mr. Gates is able to think about (and then fund) projects that will help millions.

Often we are told that the Devil is in the details but it appears that some of us can handle more details than others.

Thanks to David Pogue for the headsup on Mr. Thompson's article.