Booth Professor Debunks Idea That Two Heads Are Better Than One

The phrase “two heads are better than one” is a popular one in the realms of business, government and daily life, the thinking being that when individuals work together in group scenaros the outcome is better than solo work. But in their new book, “WISER: Getting Beyond Groupthink to Make Groups Smarter,” authors Reid Hastie, a professor of behavioral science at the University of Chicago Booth School of Business, and Cass Sunstein, a professor at Harvard Law School, turn this age-old thinking on its head (or both of heads?), explaining that in fact group decisions are actually flawed much of the time.

“The history of the human species suggests that all too often, groups fail to live up to their potential,” the authors write. “On the contrary, many groups turn out to be foolish. They bet on products that are doomed to failure. They miss out on spectacular opportunities. They develop unsuccessful marketing strategies. Their investments and strategies go awry, hurting millions of people in the process.”

Both authors are leaders in the science of decision making. Hastie is an authority on the psychology of decisions, especially by groups. He has authored several books, including, “Rational Choice in an Uncertain World.” Meanwhile Sunstein is a U.S. legal scholar and served as the Administrator of the White House Office of Information and Regulatory Affairs in the Obama administration. He is the Robert Walmsley University Professor at Harvard Law School, and is co-author, with Richard Thaler, of “Nudge.”

The two drew scholars from the latest studies, cutting edge data and their own original research, pooling examples from a wide range of business and government entities, including Healthcare.gov, Google, the CIA. What they found are many specific and predictable ways that groups can go wrong. Examples include how groups often amplify instead of correct individual errors in judgment, and they often emphasize what everybody knows already instead of focusing on the critical information that only a few people have. The book also offers counterintuitive advice on how to make groups smarter, including “8 Ways To Reduce Failure,” such as assigning roles so that all members contribute effectively; creating special teams whose job is to poke holes in the finding of the group; or playing “Moneyball” by relying on “ground truth,” reliable facts and figures.

Information used in the post come via this press release from the Booth School website.

regions: Chicago

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