Group Decision Making in Business

Group Decision Making in Business

According to the Harvard Business Review, 2020, “groupthink” is a method used in group decision making. It is used when there is a tough business problem to solve; the natural action is to bring in a group of people with knowledge about the situation to help make the decision. Caution should be taken however because groups of knowledge doesn’t necessarily mean the right decision will be made. Group decision making can be a useful tool when the proper techniques are used. There are seven simple techniques that help make group decision making even more effective: keep the groups small when important decisions are needed, choose a heterogeneous group over a homogenous one, appoint a strategic dissenter or two, collect opinions independently, and provide a safe space to speak up, don’t over rely on experts, and share collective responsibility (Harvard Business Review, 2020).

The Delphi method is also a method used in group decision making which consists of several rounds of questionnaires that allow experts to give their opinions (Corporate Financial Institute, 2020). Each expert then provides answers to the questionnaires, then once they are all collected and analyzed, a summary report is given, which then is reviewed by the experts and they either agree or disagree with the expert’s answers (Corporate Financial Institute, 2020). Another questionnaire is then filled out, which gives the experts an opportunity to provide updated opinions based on the summary report. The Delphi method is organized into five phases: identify the issue and objective, choose a group of experts and a facilitator, and rounds 1, 2, and 3 questionnaires (Corporate Financial Institute, 2020).

Although I have been involved in many group decision making techniques in my career, I find that I have seen parts of these two methods used but not specifically used by the book. I find that I have informally been a part of a groupthink decision making technique a number of times. This technique usually works out pretty well because having the different experts in the room, being facilitated by someone, and even having the neigh-sayer involved offers a wealth of data and opinions about what is the best decision for the company. Also, I have been involved in non-formal Delphi decision making techniques (the questionnaires were never used but were in turn replaced by email responses), and there definitely seems to be some overlap between the two methods. I think both tactics could and have proved useful in different scenarios.

 

References

7 strategies for Better Group Decision-making. Harvard Business Review. (2020, November 22). Retrieved October 1, 2021, from https://hbr.org/2020/09/7-strategies-for-better-group-decision-making.

Delphi method. Corporate Finance Institute. (2020, July 15). Retrieved October 1, 2021, from https://corporatefinanceinstitute.com/resources/knowledge/other/delphi-method/.