Is Groupthink Hurting Your Business?

Acclaimed British artist Grayson Perry is provocative, goes against cool, and is against hipsterism. He's multi faceted and isn’t afraid to challenge popularity and the art world he occupies. He creates art that confronts norms and groupthink. 

We need artists like Perry to reflect our society back to us and serve up a kind of truth serum we need to swallow.

"The important thing about groupthink is that it works not so much by censoring dissent as by making dissent seem somehow improbable."- James Surowiecki

What is groupthink?

The term groupthink was coined by social psychologist Irving Janis in 1972 to refer to a psychological phenomenon where people strive for consensus within a group. Groupthink happens when people set aside their personal beliefs in favour of the opinion of the rest of the group in order to maintain harmony. You’ll recognise groupthink in a work setting where the focus is on keeping the peace than challenging the status quo.

The impact of groupthink

Janis discovered that homogenous groups exist when all of the group’s members share a common mindset. He found that the chance of a homogenous group reaching a good decision to be slim. This is especially critical for Boards to note. Boards need a range of thinkers who can challenge norms or rattle the status quo cage to arrive at their best decisions. Personally, I’d hesitate to invest in any company that doesn’t have a diverse board. Board diversity is also good corporate governance.

When individuals agree with the group to keep the peace they diminish their unique view and role in the group. They don’t appreciate that dissenting opinions are valuable and can produce a better outcomes. You don’t have to argue for the sake of it (even though some people love to take this position), instead you need to express your opinion so others can acknowledge and add to it. Imagine how dull a dinner party would be if everyone agreed with every topic. When discourse and disagreement is encouraged in any group, then participants can contribute in a way that adds to the discussion and makes it more stimulating.

Group diversity is a wise strategy

There’s a reason to get uncomfortable in a group situation - it’s to arrive at a better decision/solution/answer. Don’t mistake uncomfortable for disrespectful though. The way you manage your group is up to you, and you can set ground rules that eliminate behaviour that’s unproductive or attacks the person rather than the idea.

Group diversity allows different perspectives to be aired, and also encourages individual, independent thinkers to feel ‘safe’ to share what they think. Diversity counteracts groupthink. Diversity at the Board level isn’t about how people look, rather it’s how they think. Beware the powerful and charismatic leader on the Board, as they can unduly influence the group to promote groupthink.

A great example of encouraging diverse thinkers is at Bridgewater Capital. Bridgewater Capital manages approximately $150 billion in global investments for clients. They cultivate a unique culture by being radically truthful and transparent, using logic and reason as the basis of their decisions. They are sticklers for what’s true and will spare no one’s feelings to get to the truth. It’s how they remain at the top of their industry and survived the 2008 financial markets meltdown. It’s true to say that Bridgewater’s culture and operating principles show they don’t tolerate groupthink.  People with thin skins need not apply there.  You don’t have to copy the style of Bridgewater Capital but it pays to be aware of when groupthink is operating in your business and be ready to stamp it out.

“The well-run group is not a battlefield of egos.” - Lao Tzu

How to tell if groupthink is at work

Janis identified eight characteristics that indicate groupthink is in play:

  • Illusions of invulnerability- when people in the group are overly optimistic and engage in risk-taking.
  • Unquestioned beliefs- cause people to ignore possible moral problems and ignore consequences of individual and group actions.
  • Rationalising - prevents people from reconsidering their beliefs and causes them to ignore warning signs.
  • Stereotyping– causes people of the ‘in-group’ to ignore or even belittle ‘out-group’ individuals who oppose or challenge the groups’ ideas.
  • Self-censorship- causes people who might have doubts to hide their fears or misgivings.
  • "Mindguards"– when people act as self-appointed censors to hide problematic information from the group.
  • Illusions of unanimity- lead people to believe that everyone is in agreement and feel the same way.
  • Direct pressure- to conform is often placed on people who pose questions, and those who question the group are often seen as disloyal or traitorous.

Guard against groupthink 

If you truly want the best meeting outcome, then guard against groupthink and give your people scope to say what they need to share – unpopular or not. By doing this you send a clear message that your people are valued and that their contribution is appreciated. Keep in mind that not everyone performs best in a group. There are thinkers that do most of their processing when by themselves, whilst others perform best in the group situation. For this reason it’s better to know your team and cater to their different styles if you can.

And if you're still not convinced, just think about the popular question you might have heard asked as a child or asked your child: "if Johnny jumped in the river, would you?" Unfortunately history shows us many disastrous examples where masses of people have failed to think for themselves or were subject to groupthink manipulation and jumped in the river.

* first published on LinkedIn 2 August 2016

 
 
 

Let's Connect

Make a social connection.

bg Image
Back to top