PEOPLE always ask me what the most important board or team dynamic to look out for is, and my answer is undoubtedly the phenomenon of groupthink.
Groupthink occurs when a group of well-intentioned people makes collective irrational or incorrect decisions, driven by a reluctance to challenge dominant thinking in favour of maintaining group harmony and cohesion.
In my years of sitting and working with boards, I have found that the risk and impact of groupthink far outweighs the risk of corruption or fraud.
The reason is that unethical conduct is often easier to identify and call out, whereas groupthink is more sly because it is incorrectly regarded as a positive sign of a unified board.
Let me be categorically clear: a high-functioning board is not one that passes resolutions without much fuss or hassle.
On the contrary, it is one where each member is able to voice and discuss their varying views to reach a decision that is comprehensive and reflective of the collective skills around the table.
Groupthink thrives when we do not want to disturb the consensus or when we feel that thinking outside of the norm is unwelcome.
The tendency towards unchallenged decisions robs the board of the critical thinking required from the various skills and experience present in the room.
To be fair, this is difficult to diagnose because groupthink sometimes occurs naturally when a group of people share a common or similar background or experience.
The next few tips will help us differentiate and manage groupthink. But for now, please remember that if we all think alike, then none of us will need to think very much.
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