‘Groupthink’ is a collective cognitive bias that causes flawed decision-making within organisations. The desire to maintain a cohesive team discourages individuals from challenging consensus, even when the matter is business-critical or safety-critical.
The groupthink problem can be exacerbated by confirmation bias in individuals at senior management level. C-suite executives may unconsciously favour information that validates their thinking, and dismiss that which contradicts it.
Combined, these factors create a silo effect. The organisation, insulated from checks and balances, forges ahead with defective strategies until the consequences eventually catch up.