Successful Stakeholder Communication

Transcription

1 Successful Stakeholder Communication Hooi Eng Phang WB/IMF/Federal Reserve System Seminar for Senior Bank Supervisors from Emerging Economies Washington D.C., October20, 2010

2 Toronto Centre: Origin Created in 1998 by: Canadian Government World Bank BIS Schulich School of Business - York University Supported by: CIDA, IMF, Sida, ATTF, AMF Partners: OSFI, IOSCO, IAIS, FSI, ASBA, AITRI, Bank Negara, SEACEN, SFC, USAID 2

3 Toronto Centre: Mission Contribute to global financial stability by improving financial supervisors capacity to manage change 3

4 4 Toronto Centre Approach

5 Leadership/ Change Management Microfinance & Inclusiveness Toronto Centre Financial Stability Technical 5

6 Management of Stakeholders Communication Leadership/ Change Management Compliance with Core Principals FSAP Securing Resources 6

7 Crisis Preparation Financial Stability Crisis Management Macro-prudential Surveillance Business Continuity Planning 7

8 Risk based supervision Consolidated supervision Technical Cross-border supervision Resolution of failing financial institutions 8 Enhancing regulatory framework

9 Micro-credit Microfinance & Inclusiveness Micro Insurance 9

10 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? 10

11 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 11

12 3 Types of Interests Common Important to both parties Competing Seen as opposing Separate Important to one party; but not opposed by the other 12

13 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! 13

14 Parent / Teenager Interests Parent s Interests Teenager s Interests Interests Common or Separate (but not competing) Safety Being included Safety Fairness Being included Fairness 14

15 Solve the Problem based on Interests STAKEHOLDERS Teenager Parents Other siblings THE REAL ISSUE AS REFLECTED BY INTERESTS Safety Being included Fairness DEVELOP A JOINT PROBLEM (HOW) STATEMENT How do we proceed in a way that is fair and inclusive while also ensuring safety? 15

16 Persuasion Tool : 4 Box Model STATUS QUO Advantages Disadvantages Advantages Disadvantages CHANGE 16

17 Box #1: Why the change is needed? 17 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)

18 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 18

19 Box #3: What are their concerns with the change? 19 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

20 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? 20

21 A Natural Disconnect STATUS QUO Advantages Disadvantages Advantages Disadvantages CHANGE 21

22 Making the Connection 22 STATUS QUO Point out what is staying the same Things people value that will be preserved Convey a heightened sense of urgency and a compelling need for change Describe the benefits of the future state and, generally, how we ll get there Articulate what you perceive to be the other party s concerns Discuss how you will help minimize or offset those concerns CHANGE

23 The 10-Minute Formula Advantages Advantages STATUS QUO 1 minute 3 minutes 2 minute 4 minutes CHANGE Disadvantages Disadvantages 23

24 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 24

25 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 25

26 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 26

27 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. Smaart, 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 February. Your plan is to reduce the number of support staff by a thousand by year end 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? 27