Harvard Business Essentials, Decision Making

Summing Up

•We are social animals, and our judgments are influenced by

those around us.

• The judgment of some decision makers is influenced by a de-

sire to please others, to avoid conflict, to be in step with others

or a part of the group, or to avoid post-decision criticism.

•Groupthink is a potential side effect of strong team identity.

The highlighting of similarities in thinking and the suppression

or avoidance of differences characterize groupthink.

• Be wary of undue optimism. Optimism is necessary for progress,

but it must have a factual basis.

•Although groups are subject to “the madness of crowds,” groups

can make better decisions than individuals, ...