Paula Jarzabkowski, Professor of Strategic Management at Bayes, along with researchers from the University of Queensland, Macquarie University, and Leuphana University of Lüneburg, has found that different atmospheres can significantly influence interactions and decision-making strategies among participants.
The study revealed that a reflective atmosphere promoted cautious decision-making, while a curious environment fostered exploratory thinking. Conversely, a tense or dismissive atmosphere led participants to become argumentative, hindering consensus.
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Over 18 months, the researchers analyzed video recordings, workshops, interviews, and observations of a strategic project team at an electronic bank in Australia, which was evaluating a digital product that utilized AI-informed technologies to assist customers in managing their spending.
The team observed that subtle changes in tone of voice, speech, or body language could quickly alter the atmosphere, affecting how group members reacted to ideas. The research concluded that the atmosphere is a critical factor in collective sensemaking during decision-making processes.
“We aimed to explore how subconscious signals, such as tone of voice, attitude, emotional interactions, and body language, could shape others’ perspectives on decision-making,” said Professor Jarzabkowski. “Our findings illustrate that strategy formulation is not solely about making optimal decisions; it is also influenced by the emotional climate in the room during the strategy-making process.”
Professors Eric Knight and Jaco Lok from Macquarie Business School highlighted the importance of the study, noting, “While we recognize that atmosphere can influence our feelings, its impact on our understanding of complex issues has not been systematically examined. This makes our research both important and unique.”
Matthias Wenzel, Professor of Organization Studies at Leuphana University of Lüneburg, added, “We often assume that there is consensus or shared understanding in managerial decision-making. Our research indicates that what is truly shared is the atmosphere in the room, which significantly influences the decisions made.”
