Case study

The Cost of Agreement: Why Consensus Kills Innovation—and How Outsiders Can Revive It

Sector
Service

Insights

Artyom Pugachev

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Executive summary

Unique challenge & solution

Artyom Pugachev

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February 10, 2025

Context

Artyom Pugachev

ALL ARTICLES

February 10, 2025

Approach

Artyom Pugachev

ALL ARTICLES

In the corporate world, failure rarely comes from a lack of intelligence, talent, or capital. Instead, it stems from an excess of agreement. Larger firms do not implode due to sheer incompetence; they collapse because they mistake harmony for wisdom.

When executives validate a new venture—be it a product launch, a strategic pivot, or a market expansion—the need for alignment too often silences the dissenting voices that could have saved them from taking the wrong path.

The result? Budgets wasted on overblown forecasts, flawed strategies, and boardroom delusions. Yet, a solution exists: independent consultants—those professional contrarians—can puncture the echo chamber. If, that is, companies dare to listen.

The Mirage of Unity

The problem is not intelligence but incentives. Within large organizations, consensus masquerades as progress, but it is often a trap. The fear of rocking the boat turns capable executives into passive nodders. Psychologists call it groupthink. Executives call it alignment. But in reality, it is a slow march toward failure.

Corporate history is littered with cautionary tales. Swissair’s reckless expansion in the 1990s led to its bankruptcy—not due to market forces, but because collective hubris drowned out rational analysis. Nokia, once synonymous with mobile innovation, stood frozen while smartphones revolutionized the industry. The 2008 financial crisis did not arise from a lack of data but an unchecked cycle of optimism echoing from Wall Street to global markets.

This dysfunction follows a predictable script:

  1. Illusion of Agreement – Meetings become performances of unity rather than genuine debates. Those who question projections or challenge assumptions find themselves sidelined, ensuring the final decision is rubber-stamped with no real scrutiny.
  2. Selective Evidence – Data is curated to fit the desired narrative. Market research turns into an exercise in confirmation bias. Contradictory signals are ignored. The more capital at stake, the stronger the impulse to distort reality.
  3. The Cost of Candour – Dissenters become pariahs. Corporate cultures reward loyalty over honesty, making it career suicide to voice skepticism. Nokia dismissed internal warnings about touchscreen technology—not because they lacked merit, but because they were inconvenient.

Money Isn’t the Problem—Incentives Are

Firms assume bigger bonuses lead to better decisions. They don’t. People care about more than money; reputation, status, and career survival shape behavior far more profoundly.

Consider reputation: a manager who raises concerns risks being labeled as “not a team player.” A 2019 McKinsey study found that 70% of employees suppressed dissenting views out of fear of professional repercussions. The safest career move? Stay silent. Play along.

Netflix provides a counterexample. Its radical transparency culture and “keeper test” encourage brutal honesty. If someone isn't seen as vital to the team, they are let go—but this cuts both ways. Leaders must justify decisions, and bad strategies are ruthlessly challenged. This is why Netflix transitioned seamlessly from DVD rentals to streaming to global content production while competitors floundered.

Misaligned incentives drive firms into disaster. If success metrics reward short-term project victories, failures get buried. Executives become cheerleaders, not truth-seekers. But some companies are waking up. One tech giant now rewards employees not for project success, but for early warnings. Spotting a doomed venture before money is spent earns recognition. The result? Fewer disasters.

Consultants: Saviours or Scapegoats?

Enter the consultant: an outsider brought in to challenge assumptions. At their best, consultants act as intellectual sparring partners, injecting skepticism into decision-making and exposing overlooked risks. At their worst, they are glorified rubber stamps—expensive tools for validating preordained decisions.

To be effective, consultants need three things:

  1. Political Insulation – They must report to genuinely independent stakeholders—such as the board—rather than executives with a vested interest in preserving the status quo.
  2. Access to Raw Data – If consultants rely only on sanitized internal reports, they are worthless. Direct engagement with frontline employees, raw market data, and unfiltered customer insights are essential.
  3. Freedom to Challenge – The best consultants ask uncomfortable questions. If firms muzzle them, the exercise is futile.

Yet, companies frequently misuse consultants. Some deploy them as scapegoats, blaming them for inevitable failures. Others limit their role to justifying decisions already made. In both cases, their real value is squandered.

The Productive Tension of Dissent

Disagreement is not the enemy of progress; unchallenged assumptions are. When harnessed correctly, dissent strengthens strategy rather than derailing it. The process is methodical:

  1. Scrutinize the Plan – Consultants stress-test strategies, probing for weaknesses—not to humiliate but to fortify.
  2. Interrogate the Data – They strip away bias, demanding a full-spectrum view rather than cherry-picked figures.
  3. Recalibrate the Strategy – Insights drive adjustments, turning vague ambitions into battle-ready plans.

Good consultants are part diplomat, part interrogator. Their role is not to please, but to push. Done right, this friction is not divisive but constructive.

Case Study: LNQP helping uncover a blind spot

Consider an SME in the medical technology sector preparing for a significant investment. Internally, confidence in "Product A" was absolute. Forecasts were bullish. The executive team was in lockstep.

To validate the decision, the company enlisted an external consultancy, LNQP. Initially, internal assessments echoed the prevailing optimism. Yet, when independent market experts weighed in, a different reality emerged: demand for Product A was far weaker than assumed, while a more viable opportunity remained overlooked.

The leadership resisted at first—challenging internal convictions is seldom welcome. However, a broader market survey reinforced the alternative view, at this point also previously ignored internal data began to surface, corroborating the external findings. Slowly, management shifted its stance. The company ultimately redirected its $6 million investment toward the stronger opportunity.

This case underscores how external scrutiny can break the grip of consensus. More often than not, the necessary data for sound decision-making already exists—it is merely buried beneath layers of conformity. Allowing independent perspectives to challenge entrenched assumptions is not a weakness; it is a competitive advantage.

Truth Over Comfort: The Ultimate Competitive Edge

Corporate leaders like to talk about “psychological safety”—the idea that employees should feel comfortable voicing dissent. But comfort is not the goal. The challenge is. The most successful companies do not seek harmony; they seek resilience.

Hiring consultants isn’t enough. Firms must empower them. They must shield them from internal politics, grant them unfiltered data, and encourage provocation. In return, they get more than a report—they get a strategy that won’t crumble upon contact with reality.

Companies that embrace external scrutiny don’t just avoid catastrophic failures. They gain a lasting competitive advantage. The most dangerous illusion in business is that everyone agrees because the idea is brilliant. More often, they agree because it is easier than questioning.

Smart firms understand: harmony feels good, but the truth feels better.

Impact
  • Independent consultants provide objectivity, challenge entrenched biases, and expose blind spots that internal teams overlook.
  • The most successful firms embrace external scrutiny, not as a threat, but as a safeguard against costly missteps. 
  • Those that foster productive dissent and reward critical thinking are the ones that avoid expensive blunders and emerge stronger in a rapidly evolving market.

February 10, 2025

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