Paula Jarzabkowski, Professor of Strategic Management at Bayes, along with researchers from the University of Queensland, Macquarie University, and Leuphana University of Lüneburg, found that different atmospheres led to varying interactions, altering how participants made sense of strategies.
For example, a pensive atmosphere led to cautious decision-making, while a curious environment encouraged exploratory thinking. In contrast, when the atmosphere was tense or dismissive, participants became argumentative, hindering consensus.
The study analyzed video recordings, workshops, interviews, and observations of a strategic project team at an electronic bank in Australia over 18 months. The team was assessing a digital product using AI-informed technologies to help customers manage their spending.
The researchers observed that subtle shifts in tone of voice, speech, or body language could rapidly change the atmosphere, influencing group reactions to ideas. The study concluded that in group settings, the atmosphere plays a crucial role in collective sensemaking during decision-making.
“We wanted to explore how people’s subconscious signals like tone of voice, attitude, emotional interaction, and body language could affect others’ views around decision-making,” Professor Jarzabkowski said. “Our research shows that strategy making is not just a matter of optimal decisions. The strategies firms take are affected by the way people feel – the mood in the room – during strategy making.”
Professors Eric Knight and Jaco Lok from Macquarie Business School emphasized the study’s significance, stating, “While we all know that atmosphere can affect how we feel, its effect on how we make sense of complex issues has not been systematically studied. This is why our study is important and unique.”
Matthias Wenzel, Professor of Organization Studies at Leuphana University of Lüneburg, added, “We often assume that there is some consensus or shared understanding in managerial decision making. Our research shows that the atmosphere in the room is what is shared, and that affects the decisions made.”
