Groupthink – Risk to Decision Making: How Board Behavioural Dynamics Creates Unintended Outcomes

Despite robust structures, many boards are still blindsided by behavioural risks like groupthink — often without realising it. In this high-impact session, Sharon Constançon and governance expert Loretto Leavy reveal the hidden dynamics that derail board decisions and share practical strategies drawn from FTSE board research and real-world evaluations

Key Take Aways:

In this dynamic conversation, Sharon Constançon and Loretto Leavy explore the relationship between groupthink and governance, uncovering the subtle behavioural traps that undermine decision-making. Drawing on extensive board evaluation experience and insights from 50 FTSE boards, they offer practical frameworks to help boards recognise behavioural blind spots, empower challenge, and embed inclusion that drives real governance outcomes.

  • Groupthink remains a silent risk in many boardrooms, particularly within large, regulated organisations. It often shows up through deference to authority, lack of preparation, dominance by a few voices, and a reluctance to challenge.
  • Psychological safety is essential. Boards must foster an environment where all directors feel empowered to speak up, especially when disagreeing with the majority or leadership.
  • Board behavioural dynamics are key to tackling groupthink. Based on research across 50 FTSE boards, six core processes and three levels of maturity (baseline, adaptive, and extensive) help boards assess and improve their behavioural effectiveness.
  • Strategic inclusion, not just diversity, is vital. It’s not enough to have varied perspectives around the table — boards need to actively include and harness those differences in decision-making.
  • The role of the Nominations Committee (NomCom) is often underutilised. A well-functioning NomCom is critical for effective board composition, succession planning, induction, ongoing evaluation, and reappointments.
  • Board maturity should fit the organisation’s context. Rather than pushing for a one-size-fits-all “best practice,” boards should adopt the behavioural processes that suit their strategic pressures, risk profile, and stage of development.
  • Chairs and company secretaries have a vital role in setting the tone, enabling challenge, and maintaining behavioural discipline. A trained and empowered chair makes a significant difference.
  • Practical actions can disrupt groupthink. Refreshing the board by changing two directors at a time every two years, appointing a “devil’s advocate,” and building time for informal discussion all support better boardroom dynamics.
  • Boards should move from implicit to explicit behaviours. Making behavioural expectations clear, embedding processes, and using tools like the maturity maps can elevate board performance.
  • The handbook on board behavioural dynamics is a valuable open-access resource. It provides practical guidance for boards, NomComs, and governance professionals to identify risks and implement behavioural improvements over time
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Host

Sharon Constançon

CEO

Genius Boards

Sharon Constançon is CEO of Genius Boards, where she leads on board performance reviews, board dynamics training, and governance advisory. With over 25 years of direct board-level experience across different industries, Sharon is recognised for her deep expertise in board behaviours, leadership, and risk awareness.

A seasoned board evaluator, Sharon combines analytical insight with emotional intelligence to uncover the behavioural patterns that drive, or derail, board effectiveness. She has delivered governance solutions to FTSE boards, financial services entities, and complex organisations across many sectors.

Sharon is also a respected educator. She lectures on Boardroom Dynamics at Qualifying Level for the Chartered Governance Institute UK & Ireland, and delivers risk training as faculty for the Corporate Governance Institute. She mentors Chairs and Directors and is a champion of the Company Secretary as a key enabler of good governance.

Her strength lies in translating behavioural insight into practical strategies that elevate board performance and decision-making.

Panellists

Loretto Leavy

Company Secretary & PhD Researcher

University of Exeter Business School

Loretto Leavy is a seasoned governance expert and Group Company Secretary with over 20 years of board advisory experience across complex, regulated organisations. Her career spans financial services, pensions, insurance, banking, and asset management, with a strong track record of delivering intelligent governance frameworks across multiple jurisdictions.

Loretto is currently completing a PhD focused on behavioural dynamics in boards, a field in which she is also a recognised thought leader. She is the co-author of the newly published Board Behavioural Dynamics Handbook, developed in collaboration with the University of Exeter Business School, Henley Business School, The Chartered Governance Institute UK & Ireland and other governance professionals, including Constançon from Genius Boards. The Handbook offers an open-access resource for boards seeking to embed behavioural insight into governance practice.

Known for her practical, strategic, and inclusive approach, Loretto has advised on chair support, board composition, succession planning, board evaluations, and effective stakeholder engagement within highly complex regulatory environments. She has also served as a Director, Nomination Committee Chair, and Remuneration Committee Chair in the not-for-profit sector.

Loretto brings a rare blend of academic rigour, regulatory expertise, and real-world experience to the conversation on effective board behaviour.

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