Persuasive Leadership

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1 Persuasive Leadership Mario Moussa, Ph.D., MBA Co-Director, Wharton Strategic Persuasion Workshop Adjunct Senior Fellow, Leonard Davis Institute of Health Economics, The University of Pennsylvania Senior Consultant, Fels Institute of Government, University of Pennsylvania

2 How do you woo? Woo is a relationship-based selling process essential to leadership. Now more than ever, good working relationships are important to your leadership success. Even top-performers constantly focus on improving their game. Leadership is about the specifics. The tongue is the only tool that gets sharper with use. 2

3 Two success factors. Self-Awareness Situational Awareness 3

4 Some of my most challenging negotiations involve the people I work with. An increasingly mature industry, with resulting cost pressures Evolution away from traditional partnership culture to more of a business orientation The challenges of selling yourself, as business development specialist, to your colleagues 4

Build social capital. Higher social capital (measured as more connections outside their division) = Average of 15% more earning power than those with lower social capital.

5 Build social capital. Higher social capital (measured as more connections outside their division) = Average of 15% more earning power than those with lower social capital. Seen as having better ideas. Enhanced performance: 31% more were evaluated as Far Exceed Expectations 43% more were promoted to a higher rank Sources: Ronchi, D., Cross, R., & Burt, R. 5

6 Silos are psychological. Functions: Recurring conflict is inevitable : Time horizons: short or long. Rewards: financial or professional. Relationships: formal or informal. Rules: strict or loose. Business/Industry cultures. Are you BP? Can I call you Bubba? Source: Organization and its Environment, Lawrence and Lorch 6

7 All organizations are political. 95% of all organizations are political to some extent. Nearly half are political to a very great or fair extent.* Political skills: strongest predictor of performance ratings, outstripping by far both intelligence and personality traits. Politics = the ability to sell ideas 7

Formal authority has limits. When you run General Electric, there are 7 to 12 times a year when you have to say, you re doing it my way. If you do it 18 times, the good people will leave.

8 Formal authority has limits. When you run General Electric, there are 7 to 12 times a year when you have to say, you re doing it my way. If you do it 18 times, the good people will leave. If you do it three times, the company falls apart. Big decisions require, on average, consultation with twenty people. Little decisions require consultation with eight. Will power is a limited resource. Source: Jeff Immelt quoted in Joe Nocera, Running G.E., Comfortable In His Skin, NYT, C1, 6/9/07. 8

9 Here are your choices. Influence Persuasion Negotiation NEGOTIATION 9

10 Bono

Wooing is a four-step process. 1. Survey your situation: What is my idea, and how is it better than the alternatives? Who are the decision makers and influencers? What is my stepping stone strategy?

11 Wooing is a four-step process. 1. Survey your situation: What is my idea, and how is it better than the alternatives? Who are the decision makers and influencers? What is my stepping stone strategy? 2. Remove the BRICCs: Beliefs, Relationships, Interests, Credibility, Channels. 3. Make your pitch: Use PCAN (because meaning matters). Make your pitch memorable. 4. Secure your commitments: Target key individuals. Manage the politics. Create a snowball effect. 11

12 Survey Your Situation and Remove Barriers

13 Influence the influencers. 13

Target people who live in different cultures. A restructured group at a bank included three practices: business process reengineering, information technology, and database management.

14 Target people who live in different cultures. A restructured group at a bank included three practices: business process reengineering, information technology, and database management. Conflicting assumptions about the work: Business process -- highly defined 6-step engagement methodology IT: one-off, flexible, and customized approaches Value differences becomes labels for the other group: inflexible vs. inattentive to deadlines. Solution: Find Tom, who works with both groups and understands how to bridge differences. Source: Rob Cross 14

Franklin Match styles similarity Trump and his lawyer Make an effort to be friendly

15 Practice strategic relationshipbuilding. Prepare Build trust Apologize if you break it Ask for favors reciprocity Ben Franklin Match styles similarity Trump and his lawyer Make an effort to be friendly Slight attentions often bring back reward as great as it is unlooked for. Meet face to face when the stakes are high Parsons and Icahn 15

Set your goals carefully. Types of goals: Idea-polishing Asking for input: no agreement required! Access Requesting an introduction to an influencer. Attitude Looking for the Hmm, good idea! response.

16 Set your goals carefully. Types of goals: Idea-polishing Asking for input: no agreement required! Access Requesting an introduction to an influencer. Attitude Looking for the Hmm, good idea! response. Authorization Getting approval and even resources to take the next step. Endorsement Seeking active support in public or behind the scenes. Decision Securing formal sign-off. Implementation Embedding your idea in policies and procedures. 16

17 Take your time. Jody Thompson and Cali Ressler 17

18 Listen. 18

19 Tune into the right channel. A. Authority (emphasis on using formal position or rules) B. Rationality (emphasis on using reasons) C. Vision (emphasis on organizational goals, purposes, and aspirations) D. Relationship (emphasis on liking, similarity, and reciprocity) E. Interests/Incentives (emphasis on using trades and compromises) F. Politics (emphasis on managing perceptions and building consensus) Adapted from influence research conducted by David Kipnis and Gary Yukl, and other sources. 19

20 Self Organization 20

21 Persuasion Styles Self vs. Other More Self-Oriented More Other-Oriented Higher DRIVER PROMOTER Volume Lower COMMANDER CHESS PLAYER 21

22 Leadership reflection. What is one small adjustment you can make in your communication or personality style (e.g., focus more on vision or relationships, talk less, etc.) to enhance your effectiveness? What are the situations in which it is most important to make this adjustment? Notes: 22

and see things from that person s angle as well as your own.

23 Cognitive perspective-taking. If there is any secret to success, it lies in the ability to get the other person s point of view and see things from that person s angle as well as your own. Henry Ford Historical studies: Lenin vs. Trotsky, Castro vs. Che Guevara, Robert E. Lee vs. Ulysses S. Grant. People make their decisions based on what the facts mean to them, not on the facts themselves. 23

24 What is this person trying to say? Here s how a well-known executive answered a question about his plans for a potential merger: Forgetting the business logic and the price, there will be options down the road there, I would answer your question about capable and that we weren't really quite capable yet because our army was doing all the other stuff we had to do, particularly the systems conversions. The army will be capable to do other stuff sometime next year, which is reasonable. Doesn't mean we will. 24

25 Simplicity. If you have a simple problem, you can offer a simple solution. But most organizational problems are complex. So you either simplify the problem and offer a solution, or embrace the complexity and do nothing -- adapted from Dan Ariely Source: NYT, October 17, 2010, Week in Review 25

26 Think PCAN+. Problem A short, concise statement that defines the problem your idea solves (or the need it addresses). Cause An explanation of the cause of this problem or need. Answer Your solution (or answer) for the situation. Net benefits A summary of why your answer is the best available, all options considered. Source: Ch. 7, The Art of Woo 26

27 Start with small steps. 27

28 Be a choice architect. The flu shot lecture Look right! Source: Nudge 28

29 Generate positive momentum. Radishes or Cookies? Sources: Nudge; Switch; Wansik 29

Some of my most difficult negotiations are internal.

Strategic Persuasion and Influence* Some of my most difficult negotiations are internal. Mario Moussa Co-Director, Wharton Strategic Persuasion Workshop Principal, CFAR, Inc. * Copyrighted material --