Is there really safety in numbers?

"There is safety in numbers" is a well-known and understood saying which is in its essence applicable and relevant in various situations. It is true that the collective or the herd provides security, it has the ability to reduce the element of risk or exposure especially when one feels like you don't have all the answers. It provides safety, even if it is a perceived sense of safety from having to step above the parapet. Herd mentality and its associated behaviours could be argued to be applicable in many situations but is it really the desired attitude or thinking when it comes to business in general and leadership in particular?

Despite best intentions and often without cognitive recognition of the situation, it is fair to say that some executives can fall prey to herd mentality or organisational biases which may influence at best, or directly get in the way at worst, of good decision making.

According to a report by McKinsey, battling against herd mentality is a common bias in the worlds of corporate strategy, finance, innovation and investing. It can be argued that the concept of herd mentality has been within our organisations and communities since the beginning of time itself but was evidently first observed by the journalist Charles Mackay in his 1841 study of crowd psychology called, Extraordinary Popular Delusions and the Madness of Crowds, which presages the rise of economic bubbles.

Interesting that the title of the study includes the words "Delusions" and "Madness" as many could argue that they do best describe the behaviour associated or rationale behind participating within a herd. Herd mentality usually happens when the information that is available to a group is deemed by that group to be more useful or correct, regardless of the source or quality of that information, than the knowledge or information which is privately held by the individuals making up the group. Individuals tend to buy into a collective knowledge or wisdom sometimes even ignoring evidence to the contrary. This is especially true when reputations are on the line or job security is at stake.

But isn't leadership and building successful businesses all about often going against the crowd to do what is right, what is new and what makes a positive difference? It is fair that standing alone can be daunting in any context but to make a big difference within companies, communities and industries, business leaders must make bold and risky moves, even when the crowd disagrees.

What is worse, if leaders are not bold and don't go against the herd, opportunities to create a competitive advantage or positive change, a new business or innovation or simply changing the long-held status quo because it is the right thing to do will be missed and opportunities lost. Turning right when everyone else is turning left could simply be that one thing that changed everything for the betterment of everyone.