During the Cuban Missile Crisis of the 1960s, a study looked at how the group dealing with the crisis were operating and how decisions were being made. They came out with some very interesting answers which resonate today in most companies; Groupthink.

Groupthink is the phenomena where a group of people get together to solve problems or work together and lose the ability to be objective. The story of the Emperor’s new clothes is probably the best way to explain this concept. Just because I could not see the new clothes, it doesn’t mean they don’t exist, and no one else is raising a fuss.

One of the main benefits of good Non Executive Director’s on a board is that they can challenge this tendency to groupthink. When you are looking at problems always ensure that after you have been working it out for a while with your ‘regulars’ get some outside perspective.

Boards, particularly when they are dominated by a powerful CEO who owns a large proportion of the business are particularly prone to fall victim to Groupthink. The appointment of Gordon Brown as prime minister last year is a classic piece of groupthink. Many people had their doubts, but everyone within the Labour party thought the outsiders were wrong and that they need to stick together and that no one should challenge the rightful heir. They are now rueing that decision.

This explains why so many companies use consultants; it is like a sanity check for them ensuring that they haven’t become lost in their own sense of importance. The danger with assumptions is that over time, the rationale behind these assumptions does change.

This is why I place so much focus on staying fresh and alert to new ideas and thinking it is a great way to prevent Group Think.

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