Why Do Groups Make Bad Decisions?

I am told often that group decisions are not the best decision. I would usually agree that a group (not a team) does have a tendency to make bad decisions.

A group is not necessarily a team and conversely a team could be a group. For example right now in the country there is a lot of effort being spent on health care reform. When you ask people what they want they want the best care at the cheapest price. But is that the best for the country? In Washington we have a group of elected officials who are trying to look at the issues but I would argue they are not looking at it from a team approach.

The problem with group decisions making is a dilemma referred to as the tragedy of the commons. Garrett Hardin first published information about this dilemma in 1968. It refers to a situation in which multiple individuals, acting independently and solely and rationally consulting their own self-interest, will ultimately deplete a shared limited resource even when it is clear that it is not in anyone’s long term interest for this to happen.

To be clear when I refer to a group decision, I’m referring to a decision made by vote where majority wins. I am sure that everyone that votes feels that their vote not only is the best for them and for everyone. The problem is that no one person knows what is the best for everyone. We would all like to believe that when we make a decision that it is also the best decision for now and the future. But is it?

In a fully functioning team, a team where they use a strategic process to solve issues, I believe that a better decision for everyone can be obtained. It will not have the same affect on everyone, but there are very few things that have the same affect on everyone. Will it be a solution for all time, no decisions will always need to be reviewed and adjusted as our society continues to grow and adapt.

Do what does this mean? Does every decision need to be made by teams? No, I don’t believe every decision needs to be made by a team. But I do believe that when we need decision that requires a number of different individuals or groups to implement, then a team should be used to analyze the facts and develop the best solution for the whole.

In order for the team to be prepared to take on the challenge of making the best decision possible, they need to be trained, develop the skills, and be coached and facilitated. Systems and resource need to be in place to support the team as well as accountability measures to track their progress.

Yes having effective teams do require a lot of work and focus. But their decisions can provide you with better decisions for your organization.