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:

Help for Asking for Help

When we ask for help, from peers or from those with organizational power, we have some choices. How we go about it can determine whether we get the help we need, in time for the help to help.

Astonishing Successes

When we have successes that surprise us, we do feel good, but beyond that, our reactions are sometimes self-defeating. What happens when we experience unanticipated success, and how can we handle it better?

Some Limits of Root Cause Analysis

Root Cause Analysis uses powerful tools for finding the sources of process problems. The approach has been so successful that it has become a way of thinking about organizational patterns. Yet, resolving organizational problems this way sometimes works — and sometimes fails. Why?

Fill in the Blanks

When we conceal information about ourselves and our areas of responsibility, we make room for others to speculate. Speculation is rarely helpful. It's wise to fill in the blanks.

Creating Toxic Conflict: I

Many managers seem to operate as if their primary goal is to create toxic conflict among their subordinates. Here's a collection of methods for sowing toxic conflict that can help bad managers become worse managers.

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

Forthcoming issues of Point Lookout

Coming December 19: Embarrassment, Shame, and Guilt at Work: Creation

Three feelings are often confused with each other: embarrassment, shame, and guilt. To understand how to cope with these feelings, begin by understanding what different kinds of situations we use when we create these feelings. Available here and by RSS on December 19.

And on December 26: Embarrassment, Shame, and Guilt at Work: Coping

Coping effectively with feelings of embarrassment, shame, or guilt is the path to recovering a sense of balance that's the foundation of clear thinking. And thinking clearly at work is important if you want to avoid feeling embarrassment, shame, or guilt. Available here and by RSS on December 26.

Coaching services

I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenDZEyLhXMhSuHatJCner@ChacrvIvanLsrmttLyemoCanyon.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, USD 11.95)
• Get 2003-4 in Why Dogs Wag (PDF, USD 11.95)
• Get 2005-6 in Loopy Things We Do (PDF, USD 11.95)
• Get 2007-8 in Things We Believe That Maybe Aren't So True (PDF, USD 11.95)
• Get 2009-10 in The Questions Not Asked (PDF, USD 11.95)
• Get all of the first twelve years (2001-2012) in The Collected Issues of Point Lookout (PDF, USD 28.99)

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 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 6:00 PM June 29 (Eastern Time), Monthly Webinar, Technobility Webinar Series. You can earn 1.0 Category 'A' PDU by viewing this program. View this program now.