When Consensus Hurts the Company

MIT Sloan Management Review, Forthcoming

7 Pages Posted: 17 Mar 2015  

Felipe A. Csaszar

University of Michigan, Stephen M. Ross School of Business

Alfredo Enrione

Universidad de los Andes, Chile - ESE Business School

Date Written: March 1, 2015

Abstract

Management is fundamentally about making decisions. In organizations, key decisions are often made by groups -- boards, senior management teams, finance committees and so on -- rather than by single individuals. Thus, an important role of the person leading a decision-making team is to know how to combine multiple opinions -- in effect, to become a decision manager. We have found that how a decision is made can significantly affect the outcome of that decision. We illustrate these ideas in the context of boards of directors.

Keywords: decision making, omission and commission errors, innovation, reliability

JEL Classification: M10

Suggested Citation

Csaszar, Felipe A. and Enrione, Alfredo, When Consensus Hurts the Company (March 1, 2015). MIT Sloan Management Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2579745

Felipe A. Csaszar (Contact Author)

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States
(734) 615 4854 (Phone)

Alfredo Enrione

Universidad de los Andes, Chile - ESE Business School ( email )

Av. La Plaza 1905
San Carlos de Apoquindo, Las Condes
Santiago
Chile
+562-26181570 (Phone)

HOME PAGE: http://www.ese.cl

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