BUSINESS BRIEFING
All the latest updates from across AMBA’s global network
Featured among the latest selection of updates from AMBA-accredited schools is a look at the effects of using the language of war in business, the merits of job-crafting and research that lifts the lid on generative AI’s potential for bias. By Tim Banerjee Dhoul , Ellen Buchan and Colette Doyle
IF LOVE IS A BATTLEFIELD, WHAT CAN WE SAY ABOUT THE BOARDROOM?
SCHOOL : Católica Lisbon School of Business & Economics COUNTRY : Portugal
You will often hear business leaders compare decisions to a battle, notably in relation to their approach to remaining competitive. For example, they might speak of “declaring war on inefficiency” or “fighting for a share of the market”. But is this language actually conveying what they want to portray? A study led by Católica Lisbon School of Business & Economics looked at 999 acquisition announcements made by US publicly traded firms between 2004 and 2016, analysing conference calls where CEOs had spoken about their strategic decisions. They then assessed the subsequent tone of reports by financial analysts. “Our research revealed a surprising truth,” disclosed Católica-Lisbon professor João Cotter Salvado and London Business School professor Donal Crilly. “War metaphors, often used to project strength, actually trigger negative reactions from analysts, increasing the likelihood of a poor reception to strategic announcements.”
When CEOs used just one percentage point more words deemed to be war-related in their presentations, analysts were found to be 20 per cent more negative in their reports. The study also found that the unfavourable effect of war metaphors was even more pronounced during periods of heightened market volatility. The researchers believe that these findings relate to perceptions of risk associated with the acquisitions. In their analysis, war metaphors made acquisitions appear riskier because of their connotations with high levels of aggression. Leaders might believe that they are showing power and confidence, but in reality they are implying that they lack restraint and have the potential to make reckless, uncalculated decisions. The key takeaway here is for executives to exercise caution in the language they use when announcing big strategic decisions. To avoid instigating unnecessary concern, executives are instead advised to focus on using metaphors that demonstrate stability and collaboration. EB
8 Ambition • ISSUE 1 • 2025
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