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

Learn More
Business Functions Jonathan Poland

Business Functions

Business functions are the activities that are essential to the operation and success of a business. These functions are typically…

Market Fit Jonathan Poland

Market Fit

Market fit refers to the extent to which a product or service meets the needs and preferences of a target…

Loss Leader Jonathan Poland

Loss Leader

A loss leader is a product or service that is sold at a price below its cost in order to…

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…

Risk Exposure Jonathan Poland

Risk Exposure

Risk exposure refers to the potential costs that an organization could incur as a result of a particular risk or…

What is a Flagship? Jonathan Poland

What is a Flagship?

A flagship is a product or service that represents the best a company has to offer and is intended to…

Market Failure Jonathan Poland

Market Failure

Market failure is a situation in which the market does not produce optimal outcomes for society as a whole. It…

Message Framing Jonathan Poland

Message Framing

Message framing is the way in which information and communications are constructed and presented. The way a message is framed…

Project Failure Jonathan Poland

Project Failure

A project is considered a failure when it does not meet the expectations of sponsors and other key stakeholders. This…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Product Differentiation Jonathan Poland

Product Differentiation

Product differentiation is the unique value that a product offers on the market. This value can come from a variety…

Gold is Money Jonathan Poland

Gold is Money

Overview The history of gold as money spans thousands of years and has played a pivotal role in the economic…

Autonomous System Jonathan Poland

Autonomous System

An autonomous system is a system that is capable of functioning independently, without the need for human intervention. Autonomous systems…

Organizational Structure Jonathan Poland

Organizational Structure

Organizational structure refers to the formal systems that define how an organization is governed, directed, operated, and controlled. It is…

What is Cost Overrun? Jonathan Poland

What is Cost Overrun?

A cost overrun occurs when the actual cost of completing a task or project exceeds the budget that was allocated…

Sustainable Materials Jonathan Poland

Sustainable Materials

Sustainable materials are materials that have a relatively positive impact on communities and the environment when used in the construction…

What is a Competitive Market? Jonathan Poland

What is a Competitive Market?

A competitive market is a type of market in which there are numerous buyers and sellers, and in which the…

Brand Switching Jonathan Poland

Brand Switching

Brand switching refers to the act of a customer switching from a brand that they were previously loyal to, to…

Elevator Pitch Jonathan Poland

Elevator Pitch

An elevator pitch is a brief, persuasive speech that is used to quickly and simply explain an idea or concept.…