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

Bliss Point Jonathan Poland

Bliss Point

The concept of a “bliss point” refers to the amount of consumption of a particular good or service that maximizes…

Serviceable Available Market Jonathan Poland

Serviceable Available Market

The Serviceable Available Market (SAM) is a term used to describe the portion of a market that is capable of…

Performance Risk Jonathan Poland

Performance Risk

Performance risk refers to the potential negative consequences that a business may face if a product, service, program, or project…

External Risk Jonathan Poland

External Risk

An external risk is a type of risk that is outside of your control and cannot be influenced or managed…

Competitive Intelligence Jonathan Poland

Competitive Intelligence

Competitive intelligence is the process of collecting and analyzing information about competitors, markets, industries, products, and customers in order to…

Risk Monitoring Jonathan Poland

Risk Monitoring

Risk monitoring is the ongoing process of keeping track of risks and managing them effectively. The risk management process often…

What is the Snob Effect? Jonathan Poland

What is the Snob Effect?

The snob effect refers to the phenomenon of a brand losing its prestige and exclusivity as it becomes more widely…

Concentration Risk Jonathan Poland

Concentration Risk

Concentration risk refers to the risk that a specific investment or group of investments could pose a threat to the…

Market Intelligence Jonathan Poland

Market Intelligence

Market intelligence refers to the process of gathering, analyzing, and disseminating information about a market, competitors, and industry trends in…

Learn More

What is Cultural Fit? Jonathan Poland

What is Cultural Fit?

Culture fit refers to the compatibility of a candidate’s attitudes and experiences with an organization’s culture. It is a hiring…

Strategic Direction Jonathan Poland

Strategic Direction

Strategic direction refers to the long-term vision and direction of an organization, and it serves as a guiding principle for…

Management Efficiency Jonathan Poland

Management Efficiency

Management efficiency refers to the ability of a company or organization to effectively utilize its resources, such as capital, labor,…

Original Research Jonathan Poland

Original Research

Original research refers to the creation of new knowledge through the investigation of a topic or problem. This can involve…

Data Architecture Jonathan Poland

Data Architecture

Data architecture refers to the principles, structures, standards, controls, models, transformations, interfaces, and technologies that define how data is stored,…

Vertical Integration Jonathan Poland

Vertical Integration

Vertical integration is when a single company owns multiple levels or all of its supply chain.

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…

Quality Goals Jonathan Poland

Quality Goals

Quality goals are specific targets that are set to improve the quality of a product, service, or process. They are…

What is Promotion? Jonathan Poland

What is Promotion?

Promotion refers to any marketing strategy that is aimed at increasing recognition, awareness, and interest in a brand, product, or…