Why Is Groupthink a Problem?

It can lead to poor decision-making and a lack of honest debate and dialog. Even if your business doesn't collapse as spectacularly as Enron, groupthink can cause real, tangible problems such as lost revenue, alienated customers, and poorly designed products.

Why is groupthink bad?

Groupthink leads to bad decisions because it encourages members of the group to ignore possible problems with the group's decisions and discount the opinions of outsiders. ... It influences decisions most when there are no clear rules for decision making.

What are the consequences of groupthink?

Groupthink—the tendency of groups to make decisions that preserve the status quo rather than take dissenting opinions into account—can be toxic to teams and organizations. It can stifle innovation and make employees feel pressured to conform.