The Basics of Framing

Introduction

Last week, I introduced a human-centered framework for decision support: Frame → Decide → Act → Learn.

Rooted in behavioral science and decision theory, this model gives FP&A leaders a way to help their organizations see clearly, decide confidently, and act effectively.

This week, we’re going deeper into the first stage: FRAME.

Framing isn’t neutral. It’s an active process of defining what matters, why it matters, and how we should think about it. Done well, it aligns perspectives, clarifies priorities, and sets up faster, better decisions.

At its core, framing aims to:

• Ensure all stakeholders are addressing the same question.

• Provide the right amount of information for a decision.

• Present data in a way that is meaningful to each stakeholder.

Here’s how to put that into practice.

1. Align on the real question

It’s remarkable how often people aren’t just debating different points—they’re debating entirely different questions. This happens in personal life, political discourse, and, all too often, in business.

As a simple experiment—before discussing an agenda item—ask everyone to jot down their understanding of what the team is trying to decide. Collect these, read them aloud, and you’ll quickly uncover opportunities for clarification and alignment.

Amazon famously tackles this with its one-pager mandate, but FP&A can also play a crucial role. Before starting any major analysis, ask the sponsor to define the issue clearly and—where possible—circulate this definition in advance to other stakeholders (or at least the CEO). This helps ensure that your analysis will be aligned with management’s thinking and intent.

Be as specific as possible. Generalized statements are easy to misinterpret. “Cost reduction” is too broad; specifics make for far sharper analysis and discussion. For example: “Reduce expenses by 15% in Q3 relative to Q2, with a decision required by June 16, COB.” That level of clarity ensures everyone comes to the meeting knowing exactly what’s at stake.

2. Give the right amount of data

Once the question is clear, the next challenge is gauging the level of analysis needed. Too little, and people fill the gaps with guesswork. Too much, and attention drifts or gets focused on minutiae.

Timing matters, too. General Colin Powell’s “40–70 rule” advises gathering enough information to avoid major missteps, but not so much that you slow momentum.

FP&A is often responsible for striking this balance—a behind-the-scenes effort that few fully appreciate. But while the deep work is essential, resist the urge to showcase every calculation. Focus instead on an elegant synthesis of the findings. Gerd Gigerenzer has demonstrated that people make better decisions when presented with simple, structured representations of uncertainty.

This approach builds credibility, fosters trust, and accelerates confident decision-making.

3. Make the data meaningful

FP&A professionals are fluent in raw, abstract numbers. Most stakeholders aren’t—and they shouldn’t have to be. Their focus is on selling, hiring, negotiating, and operating.

To foster engagement and understanding, translate abstract metrics into terms each audience lives by. For example, a 3% improvement in margin becomes more compelling when expressed in functional terms:

• Sales: “One additional $500K contract per quarter.”

• HR: “Reduction of five director-level and five manager-level positions.”

• Operations: “18% lift in productivity from existing lines.”

This translation achieves two things: it gives each leader actionable context and builds empathy for the pressures other functions face—making collaborative solutions far more likely.

Bringing It Together

Framing is the upstream work that sets up every other stage—Decide, Act, Learn—for success. When stakeholders share the same question, have the right amount of information, and see the data in terms that matter to them, decision-making accelerates, actions align, and learning compounds over time.

In FP&A, this isn’t just an analytical skill—it’s a leadership skill. And in complex environments, it’s often the difference between spinning in discussion and moving forward with clarity.

Next week, we’ll explore the Decide stage: how to structure choices, reduce noise, and improve the quality of decision-making under uncertainty.