What is groupthink and how does it affect business decisions?

What is groupthink and how does it affect business decisions?

Groupthink is a psychological phenomenon where the desire for harmony in a group leads to poor decision-making. It can result in a lack of critical thinking and suppress dissenting viewpoints, which can negatively impact business outcomes.

Can you give me an example of groupthink in a business context?

Sure! A classic example is the Ford Motor Company's decision to launch the Edsel in the late 1950s. The team ignored market research and dissenting opinions, leading to a failed product.

How can businesses prevent groupthink?

Businesses can prevent groupthink by encouraging open communication, inviting outside opinions, and creating a culture where dissent is valued.

What are the signs that groupthink is occurring in a team?

Signs of groupthink include a lack of critical evaluation, self-censorship among team members, and the illusion of unanimity.