The Framing Effect was first introduced by psychologists Amos Tversky and Daniel Kahneman in 1981. They showed that our decisions vary based on whether a situation is presented in a positive or negative light, even when the actual circumstances are the same. In their research, they found that people preferred surgery when its success rate was framed as “90% survive” rather than “10% die,” despite the outcomes being exactly the same.

This bias is rooted in prospect theory, also developed by Kahneman and Tversky, which suggests that we value gains and losses differently. The theory says that the idea of losing something is more impactful than an equal amount of gains. This leads to risk-averse behaviors based on the framing of the eventual outcome.

Essentially, the way information is framed can lead us to form different conclusions or make different choices, even if the core data remains the same.

In software, the framing effect can be used to influence user behavior, but I want to dig more into how it affects a team’s decision-making.

The framing effect can be seen in how objectives, risks, and feedback are presented. For instance, a stakeholder might be more inclined to support an initiative if its potential benefits are highlighted (positive framing) rather than its risks (negative framing). The team’s strategy can be skewed by framing. Risks framed as opportunities for gains might encourage more aggressive tactics, whereas framing them as potential losses may lead to more conservative strategies.

The way conflicts and solutions are framed can affect the outcome of negotiations and problem-solving. Framing issues as shared challenges as opposed to individual faults can foster collaboration and is a better way to find amicable solutions.

When it comes to change management, the way the changes are framed can play a big part in how they’re perceived. Presenting changes as improvements or growth opportunities will likely help the team accept the change and encourage positive feelings about whatever the change is.