When I first encountered the Nominal Group Technique (NGT), I was struck by how such a simple method could bring structure to complex decision-making. Whether you’re a business leader, a researcher, or part of a nonprofit team, NGT helps prioritize ideas democratically while minimizing bias. In this guide, I’ll break down what NGT is, how it works, and why it’s useful—especially in finance and accounting, where structured decision-making is crucial.
Table of Contents
What Is the Nominal Group Technique?
The Nominal Group Technique is a structured method for group brainstorming and decision-making. Unlike traditional brainstorming, where discussions can become chaotic, NGT ensures every participant contributes equally. Developed by Delbecq and Van de Ven in the 1970s, it’s particularly effective when:
- The group has diverse opinions.
- Some members dominate discussions.
- The team needs to prioritize ideas objectively.
How NGT Differs from Other Methods
| Method | Structure | Participation Equality | Bias Control | Best Use Case |
|---|---|---|---|---|
| NGT | High | High | Strong | Prioritization, complex decisions |
| Brainstorming | Low | Low (often dominated) | Weak | Idea generation |
| Delphi Method | Medium | Medium (anonymous) | Strong | Expert consensus |
The Step-by-Step Process of NGT
NGT follows a clear sequence to ensure fairness and efficiency. Here’s how I’ve seen it work best:
1. Silent Idea Generation
Participants write down ideas independently. This prevents groupthink and ensures introverts contribute equally.
2. Round-Robin Sharing
Each member shares one idea at a time. No discussions yet—just listing.
3. Clarification & Discussion
The group discusses each idea to ensure clarity. Debate is minimal at this stage.
4. Voting & Prioritization
Participants rank or vote on ideas. The highest-scoring ideas are selected.
Mathematical Representation of Voting
If five participants rank three ideas (A, B, C), we can calculate the weighted score:
Where:
- is the rank given to Idea A by participant .
- The highest rank (1st place) gets 3 points, 2nd place gets 2, and so on.
Example Calculation:
| Participant | Idea A Rank | Idea B Rank | Idea C Rank |
|---|---|---|---|
| 1 | 1 | 2 | 3 |
| 2 | 2 | 1 | 3 |
| 3 | 3 | 1 | 2 |
Scores:
- Idea A: (4-1) + (4-2) + (4-3) = 3 + 2 + 1 = 6
- Idea B: (4-2) + (4-1) + (4-1) = 2 + 3 + 3 = 8
- Idea C: (4-3) + (4-3) + (4-2) = 1 + 1 + 2 = 4
Result: Idea B wins.
Why NGT Works in Finance & Accounting
In financial decision-making, subjectivity can lead to costly mistakes. NGT helps by:
- Reducing Dominance: Senior managers don’t overshadow junior analysts.
- Enhancing Objectivity: Structured voting minimizes emotional bias.
- Improving Auditability: Clear documentation supports compliance.
Case Study: Budget Allocation
A mid-sized firm used NGT to allocate its annual R&D budget. Twelve department heads submitted proposals. After silent brainstorming and voting, the top three projects were funded. The CFO later noted that this method prevented favoritism and improved stakeholder buy-in.
Common Pitfalls & How to Avoid Them
Even the best techniques have drawbacks. Here’s what I’ve seen go wrong with NGT:
- Rushing the Process – Skipping silent ideation leads to fewer ideas.
- Poor Facilitation – Letting discussions derail voting.
- Ignoring Minority Opinions – Some ideas need reevaluation even if they score low.
Fixes:
- Use a timer for each phase.
- Assign a neutral facilitator.
- Revisit discarded ideas if new data emerges.
Comparing NGT to the Delphi Method
While NGT is great for in-person decisions, the Delphi Method is better for remote expert panels.
| Feature | NGT | Delphi Method |
|---|---|---|
| Interaction | Face-to-face | Anonymous, remote |
| Speed | Fast (single session) | Slow (multiple rounds) |
| Best For | Urgent decisions | Long-term forecasting |
Final Thoughts
The Nominal Group Technique is a powerful yet underutilized tool. It brings order to chaos, ensures fairness, and delivers actionable results. Whether you’re deciding on investment strategies or auditing processes, NGT can help your team make better decisions—democratically and efficiently.
