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When Everyone’s Responsible, No One Is: The Hidden Cost of Diffused Ownership

July 4, 2025

I came across this striking experiment by social psychologist Bibb Latané. Participants were placed in separate booths and asked to cheer as loudly as possible. In some cases, they were told they were shouting alone; in others, that their shouts would be combined with others in a group.

In truth, they were always shouting alone.

But when they believed they were part of a group, their effort dropped. When they thought their individual voice would be heard and measured, they shouted significantly louder.

This is social loafing: effort fades when people feel less individually accountable.

In Sales, the same principle applies.

Put reps in a pooled system – shared credit, shared blame – and performance falls. Give them clearly defined territory, where results are distinctly and identifiably theirs alone, and their effort intensifies.

Individually defined ownership drives intensity. Diffused ownership drains it.

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