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 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.

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:

Coincidences Do Happen

When we notice similarities between events, or possible patterns of events, we often attribute meaning to them beyond what we can prove. Sometimes we guess right, and sometimes not. How can we improve our guesses?

Ten Reasons Why You Don't Always Get What You Measure: II

Although many believe that "You get what you measure," metrics-based management systems sometimes produce disappointing results. In this Part II, we look at the effects of employee behavior.

Favors, Payback, and Thoughtlessness

Someone at work who isn't particularly a friend or foe has asked you for a favor. What happens if you say no? Do you grant the favor? How do you decide what to do?

Pet Peeves About Work

Everybody has pet peeves about work. Here's a collection drawn from my own life, the lives of others, and my vivid imagination.

Finding Work in Tough Times: Infrastructure

Finding work in tough times goes a lot more easily if you have at least a minimum of equipment and space to do the job. Here are some thoughts about getting that infrastructure and managing it.

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

Forthcoming issues of Point Lookout

Coming October 20: On Ineffectual Leaders

When the leader of an important business unit is ineffectual, we need to make a change to protect the organization. Because termination can seem daunting, people often turn to one or more of a variety of other options. Those options have risks. Available here and by RSS on October 20.

And on October 27: Five Guidelines for Choices

Each day we make dozens or hundreds of choices — maybe more. We make many of those choices outside our awareness. But we can make better choices if we can recognize choice patterns that often lead to trouble. Here are five guidelines for making choices. Available here and by RSS on October 27.

Coaching services

I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenXEiRBfuFHUtjHrqUner@ChacpYPvvSVhUNIOeXHKoCanyon.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

Public seminars

The Power Affect: How We Express Our Personal Power

Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.

• A recording of a program presented June 29, 2017, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.
   
• A recording of a program presented June 29, 2017, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.
   

Bullet Points: Mastery or Madness?

Decision makers in modern organizations commonly demand briefings in the form of bullet points or a series of series of bullet points. But this form of presentation has limited value for complex decisions. We need something more. We actually need to think. Briefers who combine the bullet-point format with a variety of persuasion techniques can mislead decision makers, guiding them into making poor decisions. Read more about this program.

• A recording of a program presented June 24, 2020, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.
   
• A recording of a program presented June 24, 2020, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.