Successful Stakeholder Communication
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1 Successful Stakeholder Communication Hooi Eng Phang WB/IMF/Federal Reserve System Seminar for Senior Bank Supervisors from Emerging Economies Washington D.C., October 19, 2011 Copyright Toronto Leadership Centre
2 Hooi Eng Phang Program Director, Toronto Centre Formerly: Executive Director for 12 countries in the South East Asia Voting Group at the International Monetary Fund Senior Director of the Economics Department, Bank Negara Malaysia 2
3 What is a Stakeholder? A Stakeholder is: Someone with the power to help or hinder your plan Critical Stakeholder Analysis: 1. Who are your Stakeholders? 2. What are your Stakeholders vested interests in your Plan/proposal? 3. Persuade and/or Negotiate? 3
4 Stakeholder Persuasion Persuasion operates on Two (2) Levels Substance Level The Problem itself Cognitive / Logic Oriented Explicit Emotional (Interpersonal) Level Nature of relationship Emotions, attitudes Not always rational Beneath the surface It s a mistake to assume that others react based on purely rational reasons. you also need to tend to the emotional level yours and theirs. Peter Block, Flawless Consulting 4
5 3 Types of Interests Common Important to both parties Competing Seen as opposing Separate Important to one party; but not opposed by the other 5
6 Example: The Teenage Dilemma Teenager s Position: I won t be home till 2.00 a.m. on Friday night. Don t bother waiting up! Parent s Position: You ll be home by midnight or else! Parent probing Interests: Teenager s Interests: Why is it that you have to be out until 2.00 a.m. this Friday; your normal curfew is midnight? Because Friday is prom night and all the kids are getting to stay out late. I don t want to look like a nerd Besides, you let Johnny stay out until 2.00 a.m. on his prom night! 6
7 STATUS QUO CHANGE Persuasion Tool : 4 Box Model Advantages Advantages Disadvantages Disadvantages 7
8 Box #1: Why the change is needed? 8 Describe What s wrong with the status quo Create a Burning Platform a compelling reason that would cause people to understand why the change was necessary and need to take action Key: The burning platform needs to compel them (and not just you)
9 Box #2: Where the change is going? Describe anticipated benefits and outcomes Refrain from over-emphasizing the wonderful new state as many see the current way is just fine Speak to benefits as it relates directly to the audience. If it doesn t impact them positively they will not care 9
10 Box #3: What are their concerns with the change? 10 Identify upfront what you know about the audience s concerns and how you plan on alleviating them Don t assume you know them all but do make the effort to do your research Be open to hearing more
11 Box #4: What s not changing? Identify things that the audience values that will NOT be changing Put the change into perspective is it a series of steps or phases? 11
12 STATUS QUO CHANGE A Natural Disconnect Advantages Advantages Disadvantages Disadvantages 12
13 STATUS QUO CHANGE Making the Connection Point out what is staying the same Things people value that will be preserved Describe the benefits of the future state and, generally, how we ll get there 13 Convey a heightened sense of urgency and a compelling need for change Articulate what you perceive to be the other party s concerns Discuss how you will help minimize or offset those concerns
14 STATUS QUO CHANGE The 10-Minute Formula Advantages Advantages 1 minute 2 minute Disadvantages 3 minutes Disadvantages 4 minutes 14
15 Keys to the 4-Box Tool Don t under do Box 1: The Burning Platform - it is important to present a compelling case for why change Wherever possible, reflect reasons from other s perspective you have told us Don t overdo Box 2: The Over-Zealous Champion - you can always return to this later in the discussion Spend time on Box 3: The Real Needs and Concerns - you can t always resolve all issues, but validating them is important and that you would welcome input on this 15
16 Why the 4-Box Tool works The clearer you are about my perspective, the more willing and able I am to be open to yours. - Barry Johnson, Polarities 16
17 Reading List Flawless Consulting Peter Block Publisher: Jossey Bass Getting to Yes Roger Fisher & William Ury Publisher: Penguin Books Leading Change John Kotter Publisher: Harvard Business School Press Polarity Management Barry Johnson Change Leadership: Inform, Involve, Ignite Robert Harris Publisher: Canadian Society of Association Executives; 17
18 Situation Imagine you are the new Governor of the Central Bank of Aurora (CBA). You were brought in after huge losses were incurred by the forex department. A study by a management expert, Mr. Smart, on ways to enhance the efficiency of CBA highlighted a number of recommendations, one of which was to increase the proportion of professional staff and reduce by 1000 the number of support staff. Of the staff, more than 1000 are support staff It is now May. Your plan is to reduce the number of support staff by a thousand by March next year and you intend to do so by giving staff an incentive package to voluntarily opt out. You have called a meeting of the support staff at the auditorium to inform them of your plan for change. Question: What will you say to persuade them to accept the voluntary separation scheme? 18
19 19 QUESTIONS?
20
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