If Strata is a Form of Government, How Do We Influence Behaviour and Improve Social Outcomes within Our Properties?

I was sitting in the SCA A100 seminar when the instructor introduced an idea that initially seemed problematic. They suggested strata is the fourth level of government, envisioning government consisted of federal, state, local, and then… strata? Governing involves both the administration and control of a community. There is no doubt strata management involves administration. We prepare budgets, hold elections, and more. Instead, I realized the reason I instinctively had a problem with the idea of strata as government is because we are so limited in how we can exert authority. We have minimal access to forms of coercive power. We do have some ability to take offenders to VCAT, but this only happens in a minority of cases. Despite our lack of coercive power, we manage many societal issues. This includes waste management, vandalism, and more. Owners Corporations therefore need to find other ways to discourage bad behaviour. This essay explains how Owners Corporations can influence behaviour without use of coercive power.

Nudge Theory is a concept from behavioural economics which argues small interventions (or nudges) can have a large impact. These nudges are not dictatorial; they do not involve punishment. Instead, they involve attempts to amend the context within which we make decisions to ‘nudge’ us to good choices. For example, In Chicago, there is a road which has a series of sharp bends. Many drivers ignored the speed limit in these areas. To mitigate this problem, white stripes were painted on the road which get closer together as you reach the most dangerous section. This gives drivers the sensation their speed is increasing, and they slow down. Owners Corporations can implement nudges as they have some control over the environment. For example, during the corona virus pandemic, some properties placed large x’s on the floor of lifts. The X’s highlight only two people should be in a lift at a time to maintain social distancing. Other examples include planting flowers on nature strips to deter hard rubbish dumping. Green spaces can also improve the health of residents and even reduce aggression. The effect of these small changes on behaviour can be huge and they are often inexpensive to implement. Read More…