Groupthink

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Why Groups of Smart People Sometimes Make Bad Strata Management Decisions

STM Client Presentation March 2013

Groupthink!  

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What  is  Groupthink?  

Source:  Irving  L  Janis,  Groupthink  1982    

“A  deterioraLon  of  mental  

efficiency,  reality  tesLng  

and  moral  judgement  that  

results  from  ‘in  group’  

pressures”  

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Faults  That  Lead  to  Groupthink  

Groupthink  

No  Procedures  

No  ImparLal  Leadership  

Homogeneity  

Insolated  by  Apathy  

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1st  Sign  –  OveresLmates  Power  &  Morality  

“UnquesLoned  belief  in  a  

group’s  inherent  

morality….  ignoring  ethical  

and  moral  consequences…  

taking  extreme  risks”  

Source:  Irving  L  Janis,  Groupthink  1982    

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2nd  Sign  –  Closed  Minded  

“The  group  comes  up  with  

excuses  for,  or  arguments  

that  dismiss  informaLon  

that  might  make  them  

rethink  a  decision”  

Source:  Irving  L  Janis,  Groupthink  1982    

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3rd  Sign  –  Pressure  to  Conform  

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Avoiding  Strata  Groupthink  §  Find  imparLal  management  to  guide  decision  making  

§  Establish  procedures  

§  Embrace  diversity  of  commiaee  membership  

§  Fight  apathy  in  your  strata  community  

§  Plan  for  succession  

©  Copyright  2013  Teys  Lawyers                                                                      www.teyslawyers.com.au  

About the presenter - Michael Teys is the Founder and Principal Lawyer of TEYS Lawyers. He has a Bachelor of Laws and practices exclusively in the area of strata title law. He is a Fellow of the Australian College of Community Association Lawyers. He was formerly an Adjunct Lecturer with Charles Sturt University. He appears weekly on SKY News Business Channel's Property Success with Margaret Lomas and is a regular panellist for the property edition of Your Money, Your Call for the same channel. You can read Michael’s blog at www.michaelteys.com and follow him on Twitter at @MichaelTeys.com

Teys Lawyers practice nationally in strata title law representing owners corporations, bodies corporate and apartment owners. The firm’s practice groups include building defects, strata community disputes, strata titles property law, by-laws and levy collection.

Subscribe for their free e-newsletter StrataSpace and find out more about them at www.teyslawyers.com.au

About  the  Presenter