Decision-Making in the Boardroom: Consider the Abilene Paradox

The Abilene Paradox is a psychological concept coined by management expert Jerry B. Harvey. It refers to a common group dynamic where members of a decision-making group collectively agree to pursue a course of action that none of them individually actually want or believe to be the best course of action. The term was coined on an anecdotal experience he had during a family trip to Abilene, Texas.

Harvey tells the story of being with his wife and her parents one hot, dusty July afternoon in Coleman, Texas. He describes how the four of them were keeping cool inside the house with a fan and ice-cold lemonade, doing nothing more physical than playing a game of dominoes. He was enjoying the afternoon until his father-in-law asked if they all felt like going to a diner in Abilene – a town about 85km away – for lunch. They all agreed and set off in an old car with no air-conditioning, on a dusty road to have what turned out to be an awful lunch, only to drive the dusty road all the way back again.

Hours later, when they were back at the house, Harvey wanted to make conversation, so he said something along the lines of: “That was a lovely trip, thank you”, to which his mother-in-law replied that it wasn’t very pleasant and she would’ve preferred to stay home. Harvey’s wife agreed that she was really enjoying the dominoes and lemonade, but agreed because everyone else seemed quite eager and she didn’t want to let her father down. Of course, you can guess what came next – Harvey’s father-in-law said he didn’t want to go at all! He was enjoying what they were doing but was worried that the rest of them were bored, so he came up with a suggestion to see if they felt like doing something different.

As you can see, it turned out they were all happy doing what they were doing; none of them wanted to go – not one of them, yet the decision was made to go, and it caused them all discomfort.

Harvey relates this to decision-making in an organisation too. He gives the example of VPs talking about a project that is reaping no rewards and costing the organisation money, and how not one of them thinks it should continue. They then all give reasons why they don’t want to bring it up to their superiors, as everyone else seems so invested in the idea, and the decision is made to continue the project, which ultimately causes the company to lose an enormous amount of money.

In the context of a board decision-making process, the Abilene Paradox can manifest due to false consensus, where board members (both Executive and Non-Executive Directors) assume that everyone else is on board (pun intended) with the decision, even if they personally have reservations. It can also come about because board members (both Executive and Non-Executive Directors) avoid expressing their real opinions for fear of causing conflict. Other reasons may include feeling pressure to conform and avoid going against the perceived majority. If the board is led by a dominant figure or a charismatic leader, other members may hesitate to challenge their authority, leading to a skewed decision-making process. For these reasons, the individual Executive and Non-Executive Directors and board at large may overlook critical analysis of the situation or evaluate alternatives, collectively endorsing a suboptimal decision.

Have you experienced the Abilene Paradox at work in the boardroom, or in any organisation or social situation you have been in? Do you agree that at the heart of the paradox is dishonesty – a failure to clearly and honestly communicate beliefs, and opinions, or ask questions?

To prevent falling into the Abilene Paradox trap, boards should foster an environment of open communication, where members feel safe to express their concerns and opinions, and where there is mutual respect and encouragement of diverse perspectives.  In such an environment, the board can make more informed and effective decisions that genuinely reflect the collective intelligence and expertise of Executive and Non-Executive Directors.

The next time a decision is called for in the boardroom, what steps can you take to make sure the group does not succumb to the Abilene Paradox and find themselves on a metaphoric dusty road in an old, hot car on their way to a second-rate diner – when nobody thought it was a good idea?

Written by Joy-Marie Lawrence

Your Coach in the Boardroom

Founder Boardvisory