‘Groupthink’ is dangerous. When it takes over an organization, something subtle but damaging begins to happen: disagreement fades, debate dies, and everyone starts thinking alike. Decisions become one-dimensional. Energy, curiosity, and innovation quietly drain away.

The wrong kind of leader only makes this worse.

Dangerous leaders

This is the authoritarian ‘one-man boss.’ The man or woman who refuses to admit weakness, pushes away capable subordinates, and surrounds themselves instead with people they can easily dominate. The type of leader with, as Carol Dweck writes in her book Mindset, a ‘fixed mindset’. One not subject to change.  One that doesn’t listen. One that becomes, over time, the proverbial Emperor with no clothes, surrounded by subordinates who don’t dare question a single decision.

Similar troubles can also arise under a charismatic or ‘visionary’ founder. Originality, drive and success can often lead to followers putting blind trust in a leader they see as a genius.  The organization slides into groupthink. Employees hesitate to challenge decisions, and creativity suffocates under the weight of reverence.

The story of Volkswagen offers an illustration.

Scandal

Under Ferdinand Piëch’s leadership in the late 1990s and early 2000s, the company became a powerhouse of engineering and ambition. His decision to manufacture the Volkswagen New Beetle – released in 1998 – put an end to years of stagnation in the US market. Yet his skills as a visionary were marred by an uncompromising leadership style. It stifled dissent, pitted managers against one another and fostered a ‘deliver-at-all-costs’ culture. And this, it’s now widely believed, led to engineers faking test results to meet US emissions standards in 2008. The result: massive fines, global legal repercussions and a severely damaged brand.

So much of this is a result of what I call, ‘the founder myth’.

The founder myth

Founders are often celebrated for their foresight and resilience. They build something from nothing and survive countless crises. But if their stories are glorified too much, a dangerous reverence forms around them. Once the myth turns sacred, questioning the old ways becomes taboo — even after the founder retires. The result: the company loses its ability to adapt and renew itself.

Among the examples Carole Dweck cites in her book, two stand out. At the height of his career, Albert Dunlap was famed for revitalising companies. Mass layoffs were a trademark and earned him the nicknames ‘Chainsaw Al’ and ‘Rambo in pinstripes’. When he took charge of home appliance company Sunbeam in 1996, he soon announced record earnings. But it later emerged that massive accounting frauds were the real reason for this success. When the truth came out, Sunbeam went into bankruptcy and Dunlap’s reputation was in tatters.

Or take US president, John F. Kennedy. Young and charismatic, he came to power pledging a ‘New Frontier’ for America. But the infamous Bay of Pigs invasion – when US-backed insurgents tried to oust Fidel Castro as the leader of Cuba - is a textbook case of groupthink. Kennedy’s advisors, dazzled by his persona, stopped questioning tactics. Blind faith replaced healthy debate and the mission failed disastrously. In the words of a contemporary politician, it ‘shattered the myth of a New Frontier run by a new breed of incisive, fault-free supermen’. 

 When leaders become idolized, organizations stop thinking critically, and catastrophic decisions follow.

Building a healthy mindset

For me, the lesson is clear: we need to inherit a founders’ spirit – what drove the company to success in the first place – and not the later rigidity that – often – stifles innovation. Because a healthy organization doesn’t worship certainty: it learns from mistakes. Leaders who can admit that they’re wrong send a powerful signal, that learning matters more than pride.

So ask yourself:

·      Do you admit mistakes and learn from them, or do you protect your ego?

·      Do you encourage your team — or quietly suppress those who outshine you?

·      Do you look for diversity, not just in nationality or gender, but in professional background and thinking style?

·      Do you learn from – and accept publicly – failure?

Consider Sony, whose legendary founders, Masaru Ibuka and Akio Morita, built a culture of creativity anchored in such principles as ‘Never try to fix ideas’; ‘Build organizations around people’;and ‘Don’t crush the nail that sticks out’.

Above all, remember this practical rule
If everyone in a meeting agrees instantly, pause the decision. Invite opposing views and discuss again. Consensus may feel comfortable, but it may also be a red flag signalling danger.

In the end, organizations that cling to fixed mindsets will fade away. Those that stay flexible, diverse, and humble enough to learn — will thrive.