Decision Framing

Decision Framing

Decision Framing Jonathan Poland

Decision framing refers to the way in which a choice or dilemma is presented or structured. This includes the language used to describe the options, the context in which the decision is made, and any additional information that is provided. Decision framing can be used to influence the decision-making process and the choices that are made. It can also be used to improve the quality of decisions by providing decision-makers with the necessary information and context to make informed choices. The following are common types of decision framing.

Preserving Ambiguity

Preserving ambiguity is the idea that a decision statement be as wide open as possible in order to allow for creative decisions. This principle can be applied throughout the decision making process to avoid imposing assumptions and constraints too early. For example, a decision statement such as “what type of park should we create?” assumes that a particular area will become a park. A statement such as “what type of public space should we create?” leaves open more possibilities.

Creativity of Constraints

Creativity of constraints is the idea that well designed initial constraints can improve creativity and efficiency. For example, a decision statement such as “how should I get an education without paying any tuition?” is far more difficult to answer than “where should I go to university?” As such, the more constrained decision statement requires more creative alternatives. Constraints can be added and removed from a decision statement to generate alternatives. For example, “what university program should I choose with the constraint that it needs to pay for itself with higher salary prospects within 5 years?”

Positive Framing

Framing a decision in an optimistic light. For example, “what steps should we take to delight every customer?”

Negative Framing

Framing a decision in an pessimistic light. For example, “what should we do to prevent customer defections given that our products are lower quality than the competition?”

Overcomplexity

A decision that is framed with complex language and structure such that a regular person has trouble understanding it. For example, a legal agreement for software that needs to be accepted by every user that contains complexities that only a lawyer would fully understand.

Choice Architecture

Breaking a decision into a series of successive choices with a structure. Often used to influence. For example, a marketing page for a bicycle may begin by asking you to select a color and then proceed to selecting a model and options. This can result in escalating commitment on the part of the customer.

False Dichotomy

A false dichotomy is an incorrect assertion that a decision is between two alternatives when more options exist. For example, do we want to compete on price or quality?

False Alternative

Misrepresenting an alternative. For example:
Do you want to subscribe to our investing newsletter?
✓ Yes ✘ I want to invest recklessly without being informed

Decoy Framing

Placing an obvious bad choice in a list of alternatives. This is commonly done in price lists. When customers see that one price is better than the others they may feel an impulse to buy.
Ice Cream Cones
1 cone – $3
2 cones – $8
5 cones – $10

What is Reliability? Jonathan Poland

What is Reliability?

Reliability is a measure of the ability of a product or service to perform consistently and predictably over time. It…

Daily Goals Jonathan Poland

Daily Goals

Daily goals are targets that you set for yourself to achieve on a particular day. These can include habits that…

Product Rationalization Jonathan Poland

Product Rationalization

Product rationalization is the process of reviewing and optimizing a company’s product portfolio in order to streamline operations and reduce…

Foot in the Door Jonathan Poland

Foot in the Door

The foot-in-the-door technique is a persuasion strategy that involves asking for a small favor or agreement first, before making a…

Supplier Risk Jonathan Poland

Supplier Risk

Supplier risk refers to the risk that a supplier will not fulfill their commitments to an organization, which could result…

Bargaining Power Jonathan Poland

Bargaining Power

Bargaining power is a concept in negotiation theory that refers to the relative ability of parties to influence each other…

Fourth Industrial Revolution Jonathan Poland

Fourth Industrial Revolution

The fourth industrial revolution, also known as Industry 4.0, refers to the current transformation of the economy towards the widespread…

Coding Skills Jonathan Poland

Coding Skills

Coding skills are a combination of talents, knowledge, and experience that enable an individual to create valuable software. This can…

What is a One Stop Shop? Jonathan Poland

What is a One Stop Shop?

A one stop shop is a business that offers a wide range of products and services from a single location,…

Learn More

What is Design Risk? Jonathan Poland

What is Design Risk?

Design risk refers to the potential negative consequences that a business may face as a result of problems or issues…

Upselling Jonathan Poland

Upselling

Upselling is a sales technique that involves encouraging customers to purchase higher-priced, add-ons, or upgraded versions of products or services…

Customer Requirement Jonathan Poland

Customer Requirement

A customer requirement refers to a specification or need that is expressed by a customer, rather than being generated internally…

Business Models Jonathan Poland

Business Models

Business models define how a company creates, delivers, and captures value. There are numerous business models, each tailored to specific…

Dispute Risk Jonathan Poland

Dispute Risk

Dispute risk refers to the potential for a disagreement or conflict to arise in a business context, resulting in negative…

Labor Productivity Jonathan Poland

Labor Productivity

Labor productivity is a measure of the efficiency with which labor is used to produce goods and services. It is…

Economic Relations Jonathan Poland

Economic Relations

Economic relations between nations refer to the economic interactions that occur between them. These interactions can include the exchange of…

Brand Objectives Jonathan Poland

Brand Objectives

Brand objectives refer to the specific goals that a brand is working towards. These goals can be both long-term end-goals,…

Brand Awareness Jonathan Poland

Brand Awareness

Brand awareness refers to the extent to which consumers are familiar with and able to recognize a brand. It is…