Why Do Business Fads Form?

Many regard business fads as creations of their advocates, and adopters who waste resources on fads as innocent, if foolish, victims. While this view does contain some truth, it isn't entirely correct. Both adopters and advocates play roles in creating and sustaining fads.

Most business fads are indeed constructed by advocates. The instructions to advocates for creating and sustaining fads were written long ago by Edward Bernays, who summarized them in his 1928 book, Propaganda. In describing the role of a publicist, he writes:

He studies the groups which must be reached, and the leaders through whom he may approach these groups. Social groups, economic groups, geographical groups, age groups, doctrinal groups, language groups, cultural groups, all these represent the divisions through which, on behalf of his client, he may talk to the public.

In short, creating or sustaining business fads entails artful manipulation of the opinion-making organs of the subculture targeted for the fad.

For business fads, this means publishing books, journal articles, magazine articles, newsletters, Web sites, and tweets, while speaking at conferences and trade associations, appearing on business broadcasts, being interviewed by journalists, securing endorsements of opinion leaders, and, of course, advertising.

But advocacy would have little effect if people weren't susceptible to these means of influence. That susceptibility arises from multiple sources, many of which can be understood as components of what James G. March calls the logic of appropriateness. The term denotes the set of rules that apply to a specific kind of person in a specific kind of situation. This logic prescribes appropriate actions, including, perhaps, adopting a fad. Here are three components of the logic.

Normative standards

Normative standards are formal or informal expectations that decision makers must meet. Their supervisors expect them to behave in ways similar to the behavior of others in analogous positions.

If your subordinates have wasted resources on fads, perhaps you've been communicating expectations that might have contributed to their adoption decisions.

The fear of doing nothing

When a fad is ascendant, failure to adopt it, To insulate oneself from the pressure
to adopt fads, doing nothing
has to be acceptableor to at least be conversant in its concepts, can be interpreted as being ignorant, indolent or worse.

To insulate oneself from the pressure to adopt fads, doing nothing has to be acceptable.

The need for justification

When decision makers need to justify their actions, there is no easier or more convenient "justification" than everyone-is-doing-it. It isn't actually a justification of anything, but supervisors often take it as such.

To control fad adoption, start by noticing that everyone-is-doing-it justifies nothing.

Saving an organization from wasteful fads might require defying the logic of appropriateness. It might at the same time be both perilously unconventional and the right thing to do. Do you have the courage to do the right thing?   First issue in this series   Top    Next Issue

Is your organization embroiled in Change? Are you managing a change effort that faces rampant cynicism, passive non-cooperation, or maybe even outright revolt? Read 101 Tips for Managing Change to learn how to survive, how to plan and how to execute change efforts to inspire real, passionate support. Order Now!

Edward Bernays, author of Propaganda, is regarded as the founder of the field of public relations.

Your comments are welcome

About Point Lookout

Thank you for reading this article. I hope you enjoyed it and found it useful, and that you'll consider recommending it to a friend.

This article in its entirety was written by a human being. No machine intelligence was involved in any way.

Point Lookout is a free weekly email newsletter. Browse the archive of past issues. Subscribe for free.

Support Point Lookout by joining the Friends of Point Lookout, as an individual or as an organization.

Do you face a complex interpersonal situation? Send it in, anonymously if you like, and I'll give you my two cents.

Related articles

More articles on Personal, Team, and Organizational Effectiveness:

Making Meaning

When we see or hear the goings-on around us, we interpret them to make meaning and significance. Some interpretations are thoughtful, but most are almost instantaneous. Since the instantaneous ones are sometimes goofy or dangerous, here's a look at how we make interpretations.

Bottlenecks: II

When some people take on so much work that they become "bottlenecks," they expose the organization to risks. Managing those risks is a first step to ending the bottlenecking pattern.

The Utility Pole Antipattern: II

Complex organizational processes can delay action. They can set people against one other and prevent organizations from achieving their objectives. In this Part II of our examination of these complexities, we look into what keeps processes complicated, and how to deal with them.

Top Ten Ways to Make Meetings More Effective

Meetings are just about everybody's least favorite part of working in organizations. We can do much better if only we take a few simple steps to improve them. The big one: publish the agenda in advance. Here are nine other steps to improve meetings.

Beating the Layoffs: II

See also Personal, Team, and Organizational Effectiveness and Personal, Team, and Organizational Effectiveness for more related articles.

Forthcoming issues of Point Lookout

Coming May 21: Mismanaging Project Managers: Mechanics

Most organizations hold project managers accountable for project performance. But they don?t grant those project managers control of needed resources. Nor do they hold Project Sponsors or other Senior Managers accountable for the consequences of their actions when they interfere with project work. Here?s a catalog of behaviors worth looking at. Available here and by RSS on May 21.

And on May 28: Mismanaging Project Managers: Leadership

Most organizations hold project managers accountable for project performance. But they don't hold Project Sponsors or other Senior Managers accountable for the consequences of their actions when they interfere with the project manager's ability to lead the project team. Available here and by RSS on May 28.

Coaching services

I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenubcqSvusyBsQaEDwner@ChacfhuriyFKgDguTpuYoCanyon.com or (650) 787-6475, or toll-free in the continental US at (866) 378-5470.

Get the ebook!

Past issues of Point Lookout are available in six ebooks:

• Get 2001-2 in Geese Don't Land on Twigs (PDF, )
• Get 2003-4 in Why Dogs Wag (PDF, )
• Get 2005-6 in Loopy Things We Do (PDF, )
• Get 2007-8 in Things We Believe That Maybe Aren't So True (PDF, )
• Get 2009-10 in The Questions Not Asked (PDF, )
• Get all of the first twelve years (2001-2012) in The Collected Issues of Point Lookout (PDF, )

Are you a writer, editor or publisher on deadline? Are you looking for an article that will get people talking and get compliments flying your way? You can have 500-1000 words in your inbox in one hour. License any article from this Web site. More info