In theory, group process adds synergistic value to the efforts of the individual group participants. In practice, three factors lead this synergy to be less than maximal, and sometimes negative. First, although synergy is positive for tasks that are intellectual, it is typically negative for tasks that are judgmental. Second, group process often leads to polarization in respect to risk attitude. Third, group discussion typically leads its members to feel more effective than warranted, a form of group overconfidence known as the illusion of effectiveness.

There are three main reasons why judgmental tasks feature negative group synergy: groupthink, poor information sharing, and inadequate motivation. Groupthink appears to have been a major issue at several prominent corporate failures, for example, Enron, WorldCom, and PSINet. Groupthink affects group decision making at both the board and managerial levels.

Instituting effective group processes is not easy and requires continual investment on the part of the firm. Effective group processes within firms feature an integrated approach to strategic and financial planning, standards, compensation, monitoring, and stock ownership.