Group decisions are not risk-free
- Groups are better equipped than individuals to recognize an answer as correct. But, when the whole group is susceptible to similar biases, groups are inferior to individuals.
- Polarization can occur in groups. One major bias in risky decision making is optimism, while doubts are suppressed. If an individual in a group is thinking differently to the group, it is easy to understand how they would suppress themselves.
- However, in groups of competing individuals, such as the corporate investment committee, the different dynamics can lead to better decision-making.
- In an internal marketplace where groups come to a consensus about the risks and rewards associated with their decisions, internal incentives can shape how the group perceives risks and rewards that are different from the reality of the risks and rewards in the external marketplace. The incentives can distort risk perception.
190
1.22K reads
CURATED FROM
IDEAS CURATED BY
The idea is part of this collection:
Learn more about problemsolving with this collection
How to balance flexibility and structure in a hybrid team environment
Understanding the challenges of managing a hybrid team
How to maintain team cohesion
Related collections
Similar ideas to Group decisions are not risk-free
Ants Are Not Humans, Of Course
“Ant and human societies are very different and have taken different routes in social evolution,” Traniello shared. “Nevertheless, ants also share with humans important aspects of social life such as group decision-making and division of labor, as well as the production of their...
Create a group that consciously decides to spot biases for each other
- Groups that have a confirmatory style of thought enable one another to not learn and preserve identity
- Instead, create a group that has an exploratory style of thought
- The goal of the group is to create a more accurate mental model of the world
Intentionally create group norms
Every team has rules, but few are intentionally crafted. This could have a negative impact. For example:
- In a team of two, it's easy to create short back-and-forth emails. As more team members join, it becomes more complex keeping everyone in the loop. E...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates