The document discusses the phenomenon of groupthink and how it can lead groups of intelligent people to make poor decisions. It defines groupthink as a deterioration of thinking caused by group pressures. It identifies faults like lack of procedures, isolation, homogeneity and lack of impartial leadership that can enable groupthink. It also outlines three signs of groupthink: overestimating the group's power and morality, closed-mindedness, and pressure to conform. Finally, it provides tips for avoiding groupthink in strata management decisions like finding impartial management and embracing diversity.

1. Groupthink!
Why Groups of Smart People Sometimes Make
Bad Strata Management Decisions
STM Client Presentation March 2013
©
Copyright
2013
Teys
Lawyers
www.teyslawyers.com.au

2. What
is
Groupthink?
“A
deterioraLon
of
mental
efficiency,
reality
tesLng
and
moral
judgement
that
results
from
‘in
group’
pressures”
Source:
Irving
L
Janis,
Groupthink
1982
©
Copyright
2013
Teys
Lawyers
www.teyslawyers.com.au

3. Faults
That
Lead
to
Groupthink
No
Procedures
Insolated
by
Apathy
Groupthink
No
ImparLal
Leadership
Homogeneity
©
Copyright
2013
Teys
Lawyers
www.teyslawyers.com.au

4. 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
©
Copyright
2013
Teys
Lawyers
www.teyslawyers.com.au

5. 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
©
Copyright
2013
Teys
Lawyers
www.teyslawyers.com.au

6. 3rd
Sign
–
Pressure
to
Conform
©
Copyright
2013
Teys
Lawyers
www.teyslawyers.com.au

7. 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

8. About
the
Presenter
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
©
Copyright
2013
Teys
Lawyers
www.teyslawyers.com.au