The atmosphere within a group can influence the outcome of strategic decision-making, according to a new study co-authored by Bayes Business School (formerly Cass). The research is published in the Academy of Management Journal.

Paula Jarzabkowski, Professor of Strategic Management at Bayes, along with researchers from University of Queensland, Macquarie University and Leuphana University of Lüneburg, found that different atmospheres led to people speaking and interacting in different ways that changed how they made sense of the strategy.

For instance, when the atmosphere was pensive, people were cautious about the way to proceed, whereas, when it was curious they felt free to be exploratory in their strategy making. However, when the atmosphere bordered on tense or dismissive, participants became argumentative and struggled to agree on ways forward.

The academics examined video recordings, workshops, interviews, and first-hand observations of a strategic project team composed of managers and consultants at an electronic bank in Australia, conducted over 18 months. The observations examined the interactions of the banking team assessing a digital product which used AI-informed technologies to help bank customers manage their spending.

The academics also noted that the atmosphere can change rapidly, as subtle shifts in tone of voice, speech, or body language affected how groups react to ideas. Overall, the research found that in group settings, people's sensing of the atmosphere influences their collective sensemaking when deciding on issues.

• Read More