Framing: A Decision-Making Bias and a Parenting Technique

Along with storytelling, great businessmen and entrepreneurs possess a few key skills. One of these skills is framing, which involves shaping a situation or telling a story in a way that influences others' perceptions in a desired way. For instance, when my kids asked about my performance in a 10k race today, I told them I was first in the category of 39-year-old runners born in July, even though I actually finished in the bottom 20% percentile of the 30-39 group. While this is a simple example, framing is a common tactic in marketing and other practices.

In a previous post, I discussed topics like opportunity cost, discounts, and sales. For example, is a $100 discount on a shiny gadget a good deal if we weren't planning to buy it in the first place? The answer is typically no.

Good marketers and some BCG consultants are skilled at using percentages and dollars to make a situation look a certain way. Saying that 6 out of 10 people who come into our store leave without making a purchase is one thing. Saying that a 40% conversion rate is at the top of the retail industry standard is another.

Framing something as a potential loss instead of a potential gain is also a common tactic. This is where phrases like "Don't miss out on..." come from; more people are likely to convert when presented with this type of messaging.

It's worth noting that framing is also a decision-making bias. When used effectively, framing can make us focus on whatever the presenter tries to achieve. One great example of this is the following video. If you haven't watched it yet, try to count the passes accurately.

Framing and Parenting

Framing is crucial to keeping kids engaged in certain activities throughout their childhood. The Relative Age Effect, mentioned in Gladwell's "Outliers: The Story of Success," highlights how children born in certain months, relative to their school or sports cycle, may have a greater chance of success in a given skill or sport.

Children who are barely five years old may be playing in the same league as others who are nearly six. The older kids typically have stronger muscles, higher skills, and more experience, which keeps them more engaged than the younger ones. Even if becoming a professional athlete is not the goal, older kids often have a higher chance of getting there.

As parents, what can we do to keep our kids motivated? That's right: Framing.

Today, my son completed his first-ever annual golf tournament and placed in the bottom 30%. To keep him engaged, we framed his performance in terms of age groups, progress, and missed opportunities.

Age
He competed in the category for kids seven years and younger, even though he is only six years old. This means he placed in the top 30% of the six-year-old group in that category. While there isn't officially a category for his age, we created our own statistics.

Progress
Despite his placement, he made significant progress this year, improving by his score by 20 shots from when he started ten months ago until now. With another year of practice, he could improve by another ten shots.

Missed Opportunities
During the tournament, he missed some basic shots, but he took note of his mistakes and knows what he needs to fix next time. Additionally, he missed a couple of tournaments that would have given him more experience and opportunities to score.

All in all, he did his best and fared quite well if measured in the right way. He is now anxious about next year's tour.

Framing is a powerful tool for shaping perceptions and influencing decision-making. It is not only a valuable tool for marketers and entrepreneurs, but it's also a powerful technique for parents to keep their children motivated and engaged in activities. By framing their performance in positive terms, parents can help their children see the positive aspects of their achievements and encourage them to keep getting better at whatever they are enjoying.