A new study reveals that the atmosphere in a room can significantly influence how strategic decisions are made.
The research, conducted by a team from Bayes Business School (formerly Cass), University of Queensland, Macquarie University, and Leuphana University of Lüneburg, highlights how the mood and interactions within a group can change the way people approach decision-making.
The study was published in the Academy of Management Journal.
Led by Paula Jarzabkowski, Professor of Strategic Management at Bayes, the research team discovered that different atmospheres within a group lead to different ways of thinking and interacting.
For example, when the mood in the room was calm and reflective, participants were more cautious in their decision-making.
In contrast, a curious atmosphere encouraged people to explore new ideas and be more creative.
However, when the atmosphere became tense or dismissive, the group struggled to agree and became more argumentative, making it harder to reach a consensus.
The researchers based their findings on an in-depth study of a strategic project team at an electronic bank in Australia.
This team, made up of managers and consultants, was working on developing a digital product that used AI technology to help customers manage their spending.
Over 18 months, the researchers observed the team’s interactions through video recordings, workshops, interviews, and direct observation.
One of the key findings was that the atmosphere in the room could change quickly, depending on subtle shifts in tone of voice, body language, or the way people responded to each other.
These changes in atmosphere had a significant impact on how the group made sense of the issues they were discussing and how they decided to move forward.
Professor Jarzabkowski explained, “We wanted to understand how subconscious signals, like tone of voice, attitude, and body language, could influence others’ perspectives during decision-making.
Our research shows that strategy making isn’t just about choosing the best option; it’s also deeply affected by the mood in the room.”
Her co-authors, Professors Eric Knight and Jaco Lok from Macquarie Business School, emphasized the importance of their findings.
“While we all know that the atmosphere can affect how we feel, its impact on how we make sense of complex issues hasn’t been thoroughly studied before. That’s what makes our study both important and unique,” they said.
Matthias Wenzel, Professor of Organization Studies at Leuphana University of Lüneburg, added, “We often think that managers and teams come to decisions based on shared understanding.
Our research shows that what’s actually shared is the atmosphere in the room, and that atmosphere can strongly influence the decisions that are made.”
This study sheds new light on the role of emotions and interpersonal dynamics in strategic decision-making, showing that the mood in the room can be just as important as the facts on the table.
