Avoid a Narrow Frame
People often limit decisions to a binary 'whether or not' choice, missing other viable options. The concept encourages considering opportunity cost and using the Vanishing Options Test to broaden decision-making.
THE IDEA
Avoid a Narrow Frame
- Teenagers get trapped in a narrow frame. They are blind to their choices.
- "Should I go to the party or not?"
- Unfortunately, most organizations tend to make decisions like teenagers.
- Quaker lost $1.5 billion in three years on the Snapple acquisition.
- Nutt research: Only 29% of organizations considered more than one alternative (versus 30% of teens).
- Often our options are far more plentiful than we think.
- College-selection counselor Price helps students explore their full range of options.
- Why do we get stuck in a narrow frame? Focusing on our current options means that other things are out of our spotlight.
- Frederick got stuck choosing between two stereos—he failed to consider his other options.
- How do we escape a narrow frame? Think about opportunity cost.
- Keep the $14.99 for other purchases.
- Eisenhower: One bomber = a modern brick school in more than 30 cities.
- Or try the Vanishing Options Test: What if your current options disappeared?
- Margaret Sanders realized she had a better option than firing Anna, the introverted receptionist.
- When our options “disappear,” we’re forced to move our spotlights.
- It’s easier to spot a narrow frame from the outside—watch for it as a decision adviser. “Whether or not” decisions should set off warning bells.
When to use it
Deciding whether to accept a job offer without considering other career paths or alternative opportunities.
Choosing between two college majors while ignoring interdisciplinary options or minors.
Business leaders evaluating a single investment proposal without comparing it to other strategic moves.
Personal finance decisions like buying a luxury item without considering what else the money could buy.
FROM THEORY TO EVERYDAY LIFE
In practice
Quaker Snapple Loss
The source reports that Quaker Oats lost $1.5 billion in three years after acquiring Snapple and uses the acquisition to discuss the costs of a narrow frame. The loss alone does not establish which decision process caused it.
Nutt Research on Organizations
The source cites Nutt’s research as finding that only 29% of the organizations studied considered more than one alternative, compared with a reported 30% among teenagers. The comparison concerns the decisions in those samples, rather than every organization or teenager.
College Selection Counselor
Price, a college-selection counselor, helps students explore their full range of options rather than fixating on a few.
Frederick's Stereo Decision
Frederick was torn between two stereos and failed to consider whether buying either was the best use of his money.
Eisenhower's Opportunity Cost
Dwight Eisenhower noted that one bomber cost the same as a modern brick school in more than 30 cities, illustrating the trade-off.
Margaret Sanders and the Introverted Receptionist
Margaret Sanders avoided firing her introverted receptionist by using the Vanishing Options Test, realizing there were better alternatives.
A MOMENT TO REFLECT
Put it to work.
Think of a recent 'whether or not' decision you made. What alternatives did you not consider?
How could the Vanishing Options Test help you escape a narrow frame in a current dilemma?
In what areas of your life do you tend to limit your options to a binary choice?
Often confused with
CONTINUE THE CONVERSATION
Source texts
- Decisive How to Make Better Choices in Life and Work (Chip Heath)