7 Psychological Biases That Explain Every Bad Business Decision Ever Made

Groupthink: The Perils of Consensus

Groupthink is a psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome. In business, groupthink can lead to poor decisions as dissenting opinions are suppressed, and critical evaluation is overlooked in favor of consensus. This can result in strategic blunders, as teams fail to explore alternative options or identify potential risks. To prevent groupthink, businesses should encourage open dialogue, diverse viewpoints, and independent thinking within teams, ensuring that all voices are heard and considered before making decisions.