Groupthink Hurts Results, Retention, and Revenues

This is Part 1 of a 2-part article. Part 1 focuses on teams alienating leaders and team members due to groupthink. Part 2 focuses on how leaders can avoid or overcome team alienation.

Every team comes to the table with long‑held traditions, sacred elephants, and the mindset of “how we’ve always done it.” Even when the leader or team member is steady and capable, the team’s anxiety can turn into quiet resistance, defensiveness, and groupthink where they believe the past matters more than moving forward or telling the truth.

Groupthink erodes trust, stalls decisions, and magnifies every unresolved issue. Slowly, the team disintegrates turning the original problem into an impossible mountain or disbanding entirely. The false sense of unity will eventually fracture the team into silos and factions.

In the process, the team ignores the leader or team member(s).

When Groupthink Takes Hold

In a study by ScienceDirect, “groupthink is more common than one would like to think.” Groupthink emerges when team members prioritize harmony, belonging, or shared frustration over critical thinking, and leads to dysfunctional decision-making.

  • The group reinforces its own beliefs, filters out contradictory information, and rewards conformity.
  • Dissent becomes risky, so no one challenges the emerging “leader we don’t like” narrative.
  • Develop an illusion of invulnerability — the belief that the group’s decision is correct and infallible.
  • Ignore ethical or moral concerns, overlook risks, or fail to consider outside perspectives.

The Escalation Pattern

Once groupthink solidifies:

  • The leader’s decisions are interpreted negatively, regardless of merit.
  • Neutral actions are reframed as evidence of the leader’s incompetence or bias.
  • The group amplifies small mistakes into “proof.”
  • Silence becomes agreement, accelerating the alienation.

The Cost of Groupthink

Alienating a leader or team member, especially a competent one, creates ripple effects:

  • Loss of direction and accountability.
  • Fragmented communication and diminished trust.
  • Increased turnover and political maneuvering.
  • Decline in psychological safety and innovation.
  • Closed doors and opportunities for the team, company, or association.
  • Loss of top talent, avoidable expenses, and poor results are unavoidable.

How to Break the Cycle

To prevent or reverse leader and team alienation:

  • Reintroduce structured decision‑making. Brainstorming, critical thinking, and alignment on decisions (not consensus) are important to ensure active participation of all team members. This also brings up issues that need to be addressed. Do not avoid elephants!
  • Ask each and every person for their input. This includes accepting diverse viewpoints. As the leader, you will need to go around the team several times to ensure all voices are heard.
  • Address cliques and insider groups directly. When you bring a team together for the first time or for each new project, outline expectations, goals, and processes. Also, mention you expect people to work together for the benefit of the client or project goal. This normally needs to be repeated during each meeting.
  • Rebuild trust through transparency and shared goals. How does this client or project benefit others? What can we do to improve the process or delivery?
  • Use objective tools (e.g., assessments, facilitation) to set or reset team dynamics. When hiring, use job-fit assessments to ensure you are hiring the right people for what needs to be done. When selecting people to work on a team, conduct a short interview to ensure they will be committed to the goal of the team. Ensure you are continually improving your facilitation skills.

Leaders and all team members must stay aware of group dynamics, challenge groupthink early, and avoid the trap of blaming others instead of strengthening their own leadership effectiveness. As the leader, it is your responsibility to stop groupthink in its tracks.

©Jeannette Seibly 2026 All Rights Reserved

Jeannette Seibly is a Leadership Results Coach, Talent Advisor, and Business Author with 33 years of experience activating greatness in leaders and companies. She delivers practical coaching and solutions that elevate performance today, build legacies that stand the test of time, and support people in empowering themselves to lead with clarity and impact.

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