The benefits of behavioural science are regularly spoken about by regulators, as a tool to avoid blind spots and improve culture in banking. Groupthink is one of the most important biases that managers in Finance and Banking can understand and address if they are to become more competitive, productive and avoid adverse outcomes.
Groupthink has been credited as the underlying cause of the global financial crisis by many commentators. At the firm level groupthink has been shown to cloud decision making processes both formally and informally. Groupthink also hinders diversity and inclusion initiatives. Overall, groupthink causes members to rationalize problems and explain away threats to success.
This course is an opportunity to deep dive into the insights from behavioural science on groupthink. Drawing on cases and examples of groupthink from banking participants will learn about the type of individual biases and blind spots that are exacerbated in groups. The course gives an opportunity to discuss changes that can easily be made to help abate these issues. Participants will come away with a menu of interventions that they can employ to curb groupthink in their own teams and environment.
By the end of this workshop you will be able to:
- Understand what groupthink is and why it matters in Finance and banking today.
- Roll out simple tests to determine whether groupthink is an issue in your place of work and/or team.
- Draw on a menu of interventions that can be used to curb group think at the level of your firm, division and team.
- Understand the practical way that some of these interventions can be introduced, and also how to quantify their impact.
- Introduction to groupthink
- Examples of groupthink in banking
- Interventions for group think
This course has a pedagogical approach which blends traditional lectures with discussion. Throughout the day cases and examples are integrated into the lecture content to give participants a feeling that they are in a two-way dialogue. There will be an opportunity to debate and discuss the issues raised, and for participants to bring their own experiences to the group.
About the Trainer
Dr Grace Lordan is an associate professor in behavioural science at the London School of Economics. She is an economist by background, and is interested in using the techniques of behavioural science to design interventions for firms to promote good conduct, diversity and inclusion and curb groupthink biases that creep into high stakes decision making. In this respect, Grace is focused on helping firms understand ‘what works’ at a local level so that they are certain they are rolling out interventions that have a positive NPV. Grace has advised and given talks to large investment banks and international conferences on these topics. Grace has also led projects to advise commissioners in the UK and policy makers in the EC. At the LSE Grace trains executives in these approaches through her teaching on two courses – corporate behaviour and decision making and behavioural science for business leaders.
Take this training in-house
If you have five or more delegates who wish to attend this briefing, it may be more cost effective to run it in-company. To find out more about in-company training, please contact Philip Allen Director of Learning on 0207 216 8843 or firstname.lastname@example.org