A new study from Bayes Business School (formerly Cass) suggests that the mood within a group can strongly influence strategic decision-making.

The researchers found that different group atmospheres led to different ways of talking and interacting, which affected how participants understood and developed strategies.

Mood music

For example, when the mood was thoughtful, people tended to be more cautious in their decision-making. In a more curious atmosphere, they felt freer to explore new ideas. But when the mood became tense or dismissive, discussions often turned into arguments, making it hard to reach agreement.

The study observed a team of managers and consultants at an electronic bank in Australia over 18 months. The team was assessing a digital product that used AI to help customers manage their finances. Researchers analyzed video recordings, workshops, interviews, and first-hand observations to understand how the team’s mood influenced their decision-making.

They noticed that even small changes in tone of voice, speech, or body language could quickly shift the atmosphere, affecting how the group reacted to ideas. Overall, the study shows that the mood in the room plays a key role in shaping how groups make sense of issues and decide on strategies.

Subtle changes

“We wanted to see how subconscious signals like tone of voice, attitude, and body language could influence decision-making,” the researchers said.

“Our study shows that strategy isn’t just about making the best decisions. The mood in the room affects the strategies that companies end up choosing.”

“While we all know that mood can affect how we feel, its impact on how we understand complex issues hasn’t been well studied. That’s why our research is important.”

“People often assume there’s a shared understanding in decision-making. Our findings suggest that it’s actually the shared mood that influences the decisions made.”