Although an audit firm might not be the first place you'd
look for advice on board behavioral psychology, here's an
exception: a really interesting
article from PwC about board dynamics and psychological biases
that can impede boards from optimal performance and
decision-making. The article identifies four common
biases—authority bias, groupthink, status quo bias and
confirmation bias—and provides clues for recognizing when
your board might be afflicted with any of these problems, along
with tips to address them. Well worth a read!
Authority bias
Sometimes, the authors maintain, directors can rely too heavily
on a director's special expertise, allowing themselves to
"become too influenced by that opinion, dismissing what others
have to say, or abdicating responsibility." Or directors may
defer to an authority figure, such as the CEO or board chair, who
is perceived to hold power over the board. For example, the authors
suggest, the board "may be more likely to
