Companies must think as a group, not groupthink

Groupthink, the tendency to agree with everybody else by default, is a pattern that stands out in many establishments. This happens across levels in the hierarchy. Also known as Olson’s logic, groupthink is a lazy, non-confrontational and often easy obeisance behaviour. It arises not just because many individuals are inclined that way, but also because many organisational cultures have nurtured it.

But in the BANI (brittle, anxious, nonlinear, and incomprehensible) world we live in today, this could be a recipe for enterprise suicide. It prevents people from thinking differently, kills creative debate over ideas, and ultimately affects a company’s ability or desire to innovate. It may breed compliance, blind obedience to hierarchy, and appear to foster alignment. But in fact, it is corrosive, decaying, and mediocre.

So, what can companies and leaders do differently to challenge the curse of groupthink?

Articulate expectations upfront: Leaders, starting from the top, must publicly and consistently speak about the need to end this behaviour. Repeated articulation encouraging people to express differing thoughts and ideas is essential. A one-off email or town hall mention will go unnoticed. Every meeting, every employee conversation, every newsletter, every vendor interaction must reinforce the need to move away from groupthink. People understand words differently, so explain in simple terms. Use examples. Share why it matters. Until people realise it is a serious and honest intent, they will not start changing their groupthink behaviour.

Role model the new behaviour: People will not change just because you ask them to. They will behave differently only when they see their leaders behaving differently. As a manager, you must, in every meeting or even in one-on-one conversations, ask for opinions before sharing yours. This is not easy for many leaders who prefer to state their view first. Be the last to speak. Invite more voices. Specifically seek different views. Acknowledge opinions that are not mainstream. Do not judge them. When people see their leaders acting differently, they realise they can change too. One instance of shutting someone down, and you lose the entire plot.

Recognise the new behaviour: Firms must thoroughly examine their current performance and recognition systems. It’s likely that conformance has been celebrated as collaboration, which is fundamentally flawed. All expressions of values and behaviours must be revised to reflect the move away from groupthink. Once done, appraisals, rewards, recognition, and coaching must all reinforce this shift. Bit by bit, the culture will evolve, helping people realise they are expected to think, ideate, and add value beyond blind compliance.

Share stories of impact: Less groupthink will typically lead to more ideas. There may be innovations in products, services, and ways of working. Costs may reduce. Revenues may increase. Delays may lessen. Quality may improve. Employee engagement may rise. Not everything may be directly linked to reduced groupthink, but a strong correlation will surely emerge. This reinforces belief in the journey and helps the new culture take root. It may even convert sceptics. Best of all, it will attract and retain a richer pool of talent.

Eliminate groupthink as part of enterprise risk management: Beyond the usual elements of compliance and financial risk, groupthink is a major threat to business sustainability in many firms. It is the shadow risk you don’t usually see in traditional ERM reviews. But in today’s volatile world, dangers lurk everywhere. To even recognise them—and plan effectively—you need a culture of pluralism, where people think and express diverse perspectives. That process helps build a stronger, risk-adjusted, and sustainable business.

Companies must indeed think more as a group, while rejecting groupthink. It will help build more inclusive and cohesive teams than groupthink pretends to do. More ideas, better pressure-tested, will lead to more innovative and resilient corporations.

(HR strategist and coach Jha, a former civil servant who has been the CHRO of Cipla, Dr. Reddy’s, Tata Motors, and Reliance, is the Founder & CEO of Prabir Jha People Advisory. Views are personal)