Groupthink
Categories: Education, Financial Theory
Groupthink might be more aptly named Group-Doesn’t-Think. When a person is away from a group, he or she tends to be more reachable or reasonable…to varying degrees. Groupthink changes that.
Gather people in a group and that group tends to sync its thinking…or lack of thinking, as is often the case. People will seek agreement within the group…and sacrifice alternatives.
Example.
Going to a large meeting and the leadership lays out a plan. Most of the people in the room think it’s foolish, but they don’t say anything. Afraid to stand out. Afraid to take a stand.
Then there’s one guy who does. After the meeting, everyone else approaches him and says, “you said exactly what everyone was thinking.” But...nobody said anything.
In reality, that one person who steps up and speaks usually doesn’t exist. He was just a penguin in the Antarctic. Honk, honk.