At board level, when this group dynamic is present, independent thinking is sacrificed in
pursuit of group cohesiveness. Members of the group impose self-censorship, succumbing to
direct pressure to conform to avoid being considered disloyal. Irving discovered this behaviour
during a study of military disasters and found that there were people in decision-making groups
who believed that the group was making the wrong decision and had the information to support
that belief (Irving 1971). The information was not tabled or, when it was tabled, was put to
one side. Individuals did not fight for their point of view of even press their evidence for that
view. He discovered that when this group behaviour was present there was an “us-and-them”
mentality, a view that meant that each group member was either “with us or against us”
(see Box 4.2). During the financial crisis, full-time board members or NEDs may have been
reluctant to act according to their own information and beliefs, fearing that any contrarian view
may damage their standing and relationship with fellow board directors. Hence, directors will
“follow the herd” if they are concerned about how others will assess their ability to make sound
judgements. Human social relationships are a key determinant in decision-making processes.
The prevalence of emotional factors in corporate success and failure means that they should
be recognised as being at the heart of boardroom leadership and effectiveness (Lees 2010).
Lessons should be learnt from the corporate crisis in which such behaviour played such a
decisive role.