Boards are fraught with extensive interpersonal dynamics, like any other group of people
(Carver 2006). Optimal board performance occurs when chairmen understand group dynamics
and foster openness and debate to reach informed decisions. People differ in their comfort
in confrontation, their ability to express their point of view and the personal agendas they
bring to a meeting. The human social dynamic within a group of individuals sees individuals
agreeing to, or failing to oppose, a group decision even though they are not satisfied with
it (Cairnes, 2003). Such dysfunctional boards can fall into “group think” where members
reach a consensus without critically testing, analysing and evaluating ideas. This is a form
of herd behaviour that tends to be more problematical within institutions. The term “group
think” was coined by psychologist Janis Irving in the 1970s. It was adopted to describe the
process in which a group can make irrational or bad decisions as a result of each member
of the group attempting to conform their opinion to what they believed to be the consensus
of the group. It can be argued that “group think” can occur on two levels: members of a
group (a board), and a group within multiple groups (boards within a specific industry, sector
or market).