Avoiding the Dangers of Groupthink | Article

In the latter half of the 20th Century, Kodak were the dominant global force in the photography industry. So strong was their brand that their name was synonymous with photography itself – when something happened that was worthy of a photo to commemorate it, it was call a “Kodak moment.” And yet for the best part of the new millennium, Kodak performed far below their previous successes. As the world of photography transitioned into digital, the executives of Kodak ignored industry trends and doubled down on film-based photography instead, despite market intelligence warning them otherwise. 

The industry pivoted to digital photography just as the executives were warned it would. Kodak fell well behind its competitors and is now worth $359 million. Canon, by contrast, is worth $23 billion.  Kodak failed to adapt even though it was one of Kodak’s own engineers who designed the first prototype of a digital camera in 1975.  While this story has an optimistic conclusion - the resurgence of film photography has pushed consumers back to Kodak’s renowned specialism in that field, for the best part of twenty years Kodak stood as a monument to the dangers of groupthink. 

Groupthink is a psychological phenomenon that occurs within a group of people where the desire for harmony or conformity results in poor decision-making. Blinkered by their previous successes, they close their eyes to the reality of the disruption that they face and suffer the consequences of it. We see groupthink across all industries, not just commercial enterprises.

Groupthink is a particularly relevant phenomenon today. As we all face a hyper-uncertain world where the velocity of change is ever increasing, it may be natural for us to be cautious rather than experimental and curious. Neuroscience tells us that our brains crave certainty, and therefore we may be more inclined to be risk-averse and susceptible to the phenomenon of groupthink also called ‘group polarization’. This may make it impossible to be agile and attentive, the precise qualities that leaders and organisations need to anticipate inflection points that may lead, like Kodak, to their ultimate near or total extinction. 

Diversifying your workforce and promoting a culture of learning helps to offset the dangers of groupthink and help your organisation to innovate. At The Whitehall & Industry Group (WIG), we put ideas-sharing and collaboration at the heart of what we do, encouraging our members from across the sectors to challenge their prevailing beliefs and learn how to innovate and future-proof adapt their output based on the real experiences of others in an ongoing volatile environment. 

The Spice of Life 

While we all want to work in a harmonious workplace, a truly effective organisation understands and embraces creative abrasion within and across teams. While the temptation is to hire new team members who are of similar beliefs, backgrounds, or experience as other members of the workforce, a diverse workforce is demonstrably more effective at achieving their goals. 

Consulting firm McKinsey found that having high levels of gender and racial/ethnic diversity within companies correlated with higher financial returns. The study states, “The companies in the top quartile for gender diversity were 15 percent more likely to have financial returns that were above their national industry median, and the companies in the top quartile for racial/ethnic diversity were 35 percent more likely to have financial returns above their national industry median”. Ultimately, if we hire those who are more likely to agree with us, we run the risk of missing opportunities that more diverse rivals can capitalise upon. If we actively embrace and welcome diversity in our hiring and our teams, we are far more likely to encourage creativity and innovation. 

While unopposed decisions can feel like they are stronger for their unanimous support, the reality is that they are far less robust than those that are challenged, scrutinised, and tested. As Dr. Neil Bentley-Gockmann, CEO of WorldSkills UK and WIG member writes, “Groupthink is dangerous because no one team or sector or country has a monopoly on wisdom, expertise or values on how to tackle a problem.”  

The opposite of groupthink, the “collective intelligence” (or as James Surowiecki puts it “the wisdom of crowds”) is one that can be cultivated and put into action through different techniques and tools that can practiced at team level. 

A uniform team can become overly confident in its abilities and this hubris is what can lead to blinkered decision-making, as was the case at Kodak. By contrast, a diverse team is far more likely to provide innovative solutions by virtue of differing experience and specialisms, which is where diversity of thought and even constructive dissent are so important. 

The Talent team at Whitehall & Industry Group helps organisations diversify their thinking through Non-Executive Director and Trustee appointments, placing candidates into six or twelve-month secondments, and supporting decision-makers through mentorship programmes. Cross-sector appointments such as these help participants and their organisations expand their perspectives and learn from varied and relevant experience.  

 Cultural Differences 

Of course, there must also be a culture of learning, curiosity and experimentation that also allows for fast failure to enable constant innovation in today’s cross-sector organisations. As another WIG member, Rachel Sandby-Thomas, Registrar at the University of Warwick and former Director General in the Department of Business, Innovation and Skills, writes, “When Peter Mandelson became Secretary of State for Business, I remember him saying that his definition of a good meeting was one where he went in thinking one thing and came out thinking another”.  

An organisation that sees its people as valuable human assets to be nurtured, engaged and retained through leadership development, creates a far more effective culture than one that expects its people and leaders to be the finished articles. 

Leadership development programmes  and interventions that challenge your organisation’s structures, ways of work and strategy can result in better decision-making and ensure that the organisation and its people thrive and embrace the new opportunities that the fast-changing external market can offer. If your organisation is not actively challenging itself, then it becomes increasingly susceptible to groupthink. 

While a culture of constructive and encouraged dissent is important, workshops and training can help to crystalise that way of thinking into your organisation’s psyche. Failure to do so can lead not just to blinkered decision-making, but also to a demoralised team, too. Unless others are encouraged and empowered to speak their minds, the loudest and most dominant members of the team will inevitably lead the conversations, making those with quieter voices feel disregarded and unimportant. 

The Whitehall & Industry Group offers a wide range of development opportunities addressing all stages of the leadership lifecycle. Our programmes offer a unique practical focus on cross-sector peer learning that encourages curiosity, openness and innovation and helps individuals and organisations to find inspiration and fresh ideas from others. 

Adopt, Adapt and Improve 

Ultimately, the more open to different ways of thinking your organisation is, the less susceptible it is to groupthink. This mindset change can be a tricky one. As Andrew Miles, EMEA Head Healthcare and Life Sciences at Google Cloud and WIG member, notes, “Diversity of thought can feel uncomfortable at first for everyone. After all, people are moving outside of their comfort zone.” However, as he adds, “Although culturally diverse teams experience increased conflict initially, they are more creative/innovative, productive, and lucrative over time.” 

The Whitehall & Industry Group encourages leaders to work collaboratively to diversify their thinking through both our Talent and Leadership Programmes. We also deliver interactive events that run all year round that offers different cross-sector insights, viewpoints and experiences. Engaging with these programmes will challenge you to think differently, enable you to bring about change and be ready to thrive and work adaptively to create lasting solutions for a better future society.  

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