Framing the Decision Problem
What this domain tests
Framing is how a problem is worded, bounded, and compared. The same facts can produce opposite choices depending on whether outcomes are described as gains or losses. Candidates must recognize gain/loss framing (losses loom larger), reference points (the status quo or a target that defines gain versus loss), narrow versus broad framing (one decision at a time versus a portfolio), and problem statements that embed a solution ("Should we cut the training budget?" presupposes training is the lever).
Know that a good problem statement names the gap between the current state and a desired state without naming the remedy. It also sets scope: which decisions are in, which are out, and who owns them.
Traps in questions
- Solution-first framing: the question offers only two options when the real issue is broader.
- Narrow bracketing: evaluating each choice in isolation, missing diversification or portfolio effects.
- Reference-point shifts: a bonus framed as a loss because a larger bonus was expected.
- False urgency: a deadline that forecloses better options without being examined.
Worked example
A clinic faces rising no-shows. Framed as "Should we add reminder calls?" the options are call or no call. Reframed as "How do we raise attendance at appointments?" the options widen: deposits, overbooking rules, SMS reminders, scheduling changes, transport help. The reframe does not guarantee a better answer, but it prevents locking onto one remedy before generating alternatives.
Rule of thumb
Rewrite every problem statement as "How might we [desired state] given [constraint]?" If the rewrite changes the option set, the original frame was too narrow.