Groupthink as a Phenomenon on South African Boards

Authored by: Dr Brian Suckling, B.Iuris, LLB, LLM, MBA, admitted Advocate of the High Court of South Africa

In 1972 Irving Janis^[1] first defined groupthink as “a psychological drive for consensus at any cost that suppresses dissent and appraisal of alternatives in cohesive decision-making groups.” Groupthink typically occurs in highly cohesive groups that strive for consensus and avoid conflict at all costs. It interferes with an individual board member’s ability to think critically and deters individuals within the group from voicing opposing opinions.

The University of Texas, McCombs School of Business believes that group members often suffer from overconfidence and hold an unquestioned belief in the group’s competence and morality. Dissent by group members may be discouraged and even lead to expulsion from the group. Due to the fact that people do not want to endure such exclusion, they remain silent, which creates an illusion of agreement or unanimity within the group. Groupthink promotes harmony and consensus at the expense of independent judgement and analysis.

Shiller has indicated that groupthink can also translate into the fear that “deviating too far from consensus leaves one feeling potentially ostracised from the group, with the risk that one may be terminated.” Warren Buffet, in 2002, wrote a letter addressed to shareholders stating, “all too often I was silent when management made proposals that I judged to be counter to the interests of shareholders. In those cases, collegiality trumped independence.”

Currently on South African boards, there is an overdue, marked increase in membership of all racial groups, which introduces a wide variety of cultural norms and expectations. The concept of ubuntu has been transferred from the social concept of a universal bond of sharing that connects all humanity – of behaving well to others – to the boardroom in the form of consensus, agreement and harmony. Ubuntu is unintentionally driving groupthink and subduing the independent opinions of well-qualified board members.

I recall participating in a group discussion at a prominent business school, where the facilitating academic was a professor of philosophy. As the group discussion progressed, he drew out opinions from all participants. He encouraged differences of opinion and built on the independent views of his students. After a while, he pointed to a student that had to that point remained silent and asked his opinion. Out came an amazing interpretation that stunned us all. The professor smiled and said, “Beware that still small voice within a group. They very often have the most to offer.”

This is what we as board members in South Africa must remember. Heed the advice of that independent opinion, reject groupthink and recognise “that still small voice.” He or she may well have incredible insight or unique knowledge on a subject. If the wide variety of boards that exist in South Africa heeded this advice and encouraged chairpersons to facilitate independent opinion and promote robust debate, we may well be placed on a path on which independence trumps collegiality.

Dr Brian Suckling holds a B.Iuris, LLB and LLM degrees as well as an MBA and Doctorate of Business Administration. He is an admitted Advocate of the High Court of South Africa and serves as a board member and trustee in large institutions. He is currently an LLD student at UNISA.