Anthony J. Pennings, PhD

WRITINGS ON DIGITAL ECONOMICS, ENERGY STRATEGIES, AND GLOBAL COMMUNICATIONS

The Framing Power of Digital Spreadsheets

Posted on | December 7, 2024 | No Comments

Digital spreadsheets like Excel have framing power because they shape how information is chosen, organized, interpreted, and presented. These capabilities directly influence decision-making and resource prioritization within organizations. The power of framing arises from the ability to define what data is included, how it is processed by the spreadsheets functions or formulas, and the visual or numerical emphasis placed on specific inputs and outcomes. Spreadsheets exert framing power through selecting and prioritizing data, building formula logic and embedded assumptions, standardizing norms and templates, simplifying complex realities, and selectively presenting results.

This post continues my inquiry into the remediation of digital spreadsheets and the techno-epistemological production of organizational knowledge. This includes a history of spreadsheet technologies including VisiCalc, Lotus 1-2-3, and Microsoft’s Excel as well as the functions and formulas they integrated over time. Digital spreadsheets built on the history of alphabetical letteracy and the incorporation of Indo-Arabic numerals, including zero (0) and calculative abiltities built up through administrative, commercial, and scientific traditions.

Spreadsheets frame discussions by determining which data is included or excluded, consequently controlling narratives and resource decisions. For instance, only presenting revenue figures without costs can create a biased perspective on the financial health of an organization. By selecting and emphasizing certain key performance indicators (KPIs) over others, spreadsheets prioritize specific organizational goals (e.g., profitability over sustainability). A budget sheet that highlights “Cost Savings” as a primary metric frames spending decisions in a cost-minimization mindset. Those designing spreadsheets gain control and power by deciding what aspects of reality are quantified and analyzed.

Spreadsheet formulas embed certain assumptions about relationships between variables (e.g., Profit = Revenue – Costs assumes no other factors like opportunity costs). The logic built into formulas can obscure biases or simplify complexities, shaping decision-making paths. For example, a financial projection using =RevenueGrowthRate * PreviousRevenue assumes linear growth and potentially oversimplifies future uncertainties. What-if scenario analysis in spreadsheets often reflects the biases or priorities of the person constructing the formulas. These biases can frame potential outcomes in specific ways.

Spreadsheets can become templates for recurring processes, setting standards for what is considered “normal” or “important” in an organization. Those who create and control spreadsheet templates have the power to define organizational norms and expectations and codify power dynamics. Establishing standardization reinforces certain frames, perpetuating specific ways of viewing and evaluating organizational performance over time. A standardized sales report may continuously emphasize gross sales, neglecting other factors like customer churn.

Spreadsheets distill complex realities into numbers, tables, and graphs, simplifying nuanced issues into quantifiable elements. This reductionism simplifies complex realities. An example is reducing employee performance to numeric scores (e.g., Productivity = TasksCompleted / HoursWorked) that may overlook qualitative contributions. Critical contextual factors, such as market volatility or employee morale, may be excluded, shifting focus to what is easily measurable. By reducing complexity, spreadsheets prioritize some perspectives while marginalizing others.

Those who design spreadsheets often decide how data is framed and can influence organizational decision-making disproportionately. Those who gain access and control over the spreadsheet design have an inside track to the power dynamics of an organization. Control over spreadsheet design shapes how others interpret and interact with the data, reinforcing the designer’s influence and power. In an organization with limited transparency, complex formulas or hidden sheets can obscure understanding of the data. This can disadvantage other users and consolidate power with those with the skills and tools to create the organization’s spreadsheets.

The order in which data is presented (e.g., revenue before costs) in spreadsheets influences how stakeholders mentally process the information. Structural and layout choices affect how data is understood and what conclusions are drawn. Visualizations like pie charts, bar graphs, and trend lines direct focus to certain comparisons or patterns, and frame how priorities are perceived.

Finally, presentation decisions about formatting (e.g., conditional highlights, bold text) and visualization (e.g., charts) draw attention to specific elements. For example, highlighting a profit margin cell in green or showing a declining revenue trend in red emphasizes success or urgency. Choosing to present aggregated data (e.g., total revenue) versus granular details (e.g., revenue by product) influences how complexity is perceived and addressed. Presentation choices affect data interpretation, often steering stakeholders toward certain conclusions.

In conclusion, digital spreadsheets are powerful technologies that frame knowledge in organizations and consequently they produce power by determining how data is selected, processed, and presented. Their influence lies not just in the data they hold but in how they structure understanding and shape decision-making. Those who design spreadsheets can wield significant control over organizational narratives and perspectives, making it critical to use these tools with awareness of their potential limitations and strengths.

Citation APA (7th Edition)

Pennings, A.J. (2024, Dec 7) The Framing Power of Digital Spreadsheets. apennings.com https://apennings.com/meaning-makers/the-framing-power-of-digital-spreadsheets/

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AnthonybwAnthony J. Pennings, PhD is a Professor at the Department of Technology and Society, State University of New York, Korea and Research Professor at Stony Brook University. He teaches digital economics and sustainable development. Previously, he taught macroeconomics and digital media management at New York University. He also taught in the MBA program at St. Edwards University in Austin, Texas, where he lives when not in South Korea.

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    Professor at State University of New York (SUNY) Korea since 2016. Moved to Austin, Texas in August 2012 to join the Digital Media Management program at St. Edwards University. Spent the previous decade on the faculty at New York University teaching and researching information systems, digital economics, and strategic communications.

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