Successful Stakeholder
Communication
Hooi Eng Phang
WB/IMF/Federal Reserve System Seminar
for Senior Bank Supervisors from Emerging Economies
Washington D.C., October 19, 2011Copyright Toronto Leadership Centre
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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
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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?
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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
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3 Types of Interests
CommonImportant to both parties
Separate
Important to one party; but not opposed
by the otherCompeting
Seen as opposing
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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:
“Why is it that you have to be out until
2.00 a.m. this Friday; your normal
curfew is midnight?”
Teenager‟s Interests: “ 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!”
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Persuasion Tool : 4 Box ModelS
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Disadvantages
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Advantages
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Box #1: Why the change is needed?
• 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)
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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
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Box #3: What are their concerns with the
change?
• 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
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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?
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A Natural Disconnect
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Making the ConnectionS
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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
Point out what is staying the
same
Things people value that will
be preserved
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The “10-Minute Formula”
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3 minutes
2 minute
4 minutes
1 minute
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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
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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
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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;
www.csae.com
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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 2000+ 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?
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QUESTIONS?