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'Framing Contests': When Companies Face Uncertainty, Internal Wrangling Can Lead the Way
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'Framing Contests': When Companies Face Uncertainty, Internal Wrangling Can Lead the Way

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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After riding a wave of unprecedented industry growth and branching into fiber optics products, an established communications technology manufacturer faces the unthinkable: The market takes a sudden turn for the worse, leading to budget cuts and layoffs across companies in the sector. Meanwhile, the firm’s R&D lab is pushing for the company to invest in a comprehensive expansion of its high-bandwidth fiber optics network to increase consumer access and drive sales. Others at the company strongly disagree, believing that the market for fiber optics has dried up. What should the company do? According to Wharton management professor Sarah Kaplan , the best answer wouldn’t be immediately clear, and for good reason: Whereas managers often push for quick, bottom-line analysis when facing uncertainty, it might be more beneficial to encourage employees to champion alternative scenarios, or “frames,” as Kaplan and other researchers refer to them.…

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