On the dynamics of group decisionmaking in high places.

• Author: Reed, Stanley Foster
• Position: Reprint from Directors & Boards, Winter 1978 - Putting In Place the Right Board for the 21st Century

PEOPLE BEHAVE differently in groups than they do as individuals. Further, decisionmaking under stress can influence the outcome of the decision, and stress is an ever-present reality for nearly all corporate directors. In fact, stress is a part of the daily life of almost anyone and everyone in business. At its worst, it is a deterrent to decisionmaking of any kind. At best, it is a mild stimulant. And group decisionmaking introduces special stresses not present in simple decisionmaking by individuals.

There are special decisionmaking problems associated with groups. Many factors affect the efficacy of group decisionmaking. Unfortunately, most of the small-group research over the past 50 years has been concentrated on quantifying problems of the individual group member. The search for understanding of small-group processes, especially as these relate to decisionmaking, has only really caught the imagination of a few investigators over the past few years.

Six circumstances can adversely affect the efficacy of decisionmaking by groups:

1. The numbers tend to defeat the process. In order to exhaust all possible interactions, seven decisionmakers, exploring five parameters of a single issue, must complete 210 "dyadic" (one-to-one) discussions, if everyone is to have his or her say to everyone else on every aspect of the issue. This is usually physically impossible.

2. Because it is physically impossible, the most aggressive, the most verbal, or those with the most seniority take over. Polarization occurs and often no decision at all is made.

3. According to most investigators, the number of one-on-one interactions within a group which can be remembered by the most skilled recaller is seven, plus or minus two. Because no one can reconstruct the arguments, no decision is made or the final decision is forgotten.

4. Into this void often steps the person with the best recall. Again, this can create polarization and no decision results.

5. Where demonstrably bad decisions have been made by groups, and there is no understanding of the decisionmaking process, decisionmaking stops. This can create the situation where ...

6. ... follow-the-leader games are played -- the group will do what others do. While follow-the-leader may work for a time, it can also produce a second-rate company. (There is no way to win a sailboat race by following opponents around the course. It is also possible to follow them onto the rocks!)

One...