Influencing Styles For Effective LeadershipThe Webinar Will Start Shortly

Wednesday, 13 May 2015 ● 16:30 – 17:30 (UAE)

Ian MoodyLead Tutor

Chartered Institute of Procurement and Supply

(CIPS)

Housekeeping

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Your Presenter

Ian MoodyIan Moody Associates Ltd, Management Consultants

Ian Moody has more than 25 years experience in senior management positions. Ian has set up and developed various highly profitable companies and has specific experience in creating exit strategy.

His practical knowledge of strategic development and operational management coupled with a strong sales and marketing emphasis allows Ian’s clients and students to benefit from a ‘real life’ approach to his consultancy and training assignments.

Ian works as a lead tutor and assessor for CIPS both in in the GCC and at London University

Ian’s core expertise lies in the areas of planning, finance and communication at all levels of the organisation. In addition to his work with CIPS he is accredited by major international examining bodies such as the ACCA, & ILM and works throughout Europe, Asia and the Middle East.

He is a Senior Consultant of The Corporate L.I.F.E.™ Centre International, Canada; a world leading consultancy in Business Strategy & Development

Influencing corporate culture

– Acting as exemplars and role models for the values and behavioural expectations and norms of the culture

– Encouraging examination and expression (and where necessary, challenging) of underlying assumptions and paradigms

– Expressing the values and beliefs of the culture, through a wide range of leadership communications

– Encouraging team members (and suppliers) to ‘own’ desirable values, beliefs and behaviours

– Using human resource management mechanisms or supplier management mechanisms to reinforce desirable changes

•Leadership has a crucial role in the creation, shaping, maintenance (and changing) of corporate culture:

Power in organisations– Power is processual:

• It emerges out of processes of interaction in organisations (and supply chains): how power is gained and used in the on-going ‘game’ of developing and implementing strategy.

– Power is institutional:• radical theories of power, such as Marxist theory, insist that ultimately

power is constituted in social and economic structures and institutions, external to the organisation.

– Power is internal or organisational:• ‘While processual and institutional views are important, explanations

of power effects within organisations may be incomplete if determined by power constituted in institutions outside the organisation, or if the organisation becomes an abstracted “arena” for the interplay of group processes… Organisations also possess power capacities of their own.’

Forms and uses of power

– Overt power• obvious, or transparent – through direct tactics such as

physical or economic coercion, autocratic leadership, logical persuasion or the offering of incentives

– Covert power• subtle, hidden or implied – through indirect tactics such

as withholding information or excluding someone from a negotiation or network

– Structural power• built into the situation, context or relationship

Sources of power in organisations•JRP French and BH Raven identify:

– Legitimate power (or position power)– Expert power– Reward power (or ‘resource power’)– Referent power (or ‘personal power’)– Coercive power (or physical power)

•Other researchers have added:

– Connection power– Informational power– Negative power

– Staff authority

• the term given to the expert power of a specialist giving advice or guidance to others, even though he has no direct line authority over their activities

– Functional authority

• the term used where an expert is given legitimate authority to direct the activities of others in the area of his expertise

Using expert power in procurement and supply

Sources and indicators of powerSOURCES OF POWER INDICATORS OF POWER

Within organisations

• Hierarchy • Influence • Control of strategic resources• Possession of knowledge and

skills• Control of human environment • Involvement in implementation

• Status • Claim on resources • Representation• Symbols

For external stakeholders

• Control of strategic resources• Involvement in implementation • Possession of knowledge and

skills• Through internal links

• Status• Resource dependence • Negotiating arrangements• Symbols

Control in organisations

• Direct control• E.g. using orders and instructions, direct supervision, rules and regulations

• Standardisation and specialisation (bureaucratic control or planning systems)• clear definition (or programming) of the parameters for action

• Influencing• shaping the way that people think about what they should do, and bringing

their values into line with those of the organisation

• Performance targets and KPIs• the performance of the organisation is evaluated according to its ability to

meet defined targets

• Self control• personal motivation is used to influence the quality of employee input and

conduct (control), without direct intervention (flexibility)

The power/dependency matrix

Power in supply chains

– Disempowering suppliers

– Squeezing suppliers’ profit margins

– Forcing suppliers to pursue unsustainable practices

– Passing ‘top-down’ pressures down the supply chain

– Robbing the buying organisation of the potential benefits of supply chain input

– Stimulating scrutiny from regulatory bodies, media and pressure groups

•The use and leverage of buying power by large global purchasers may have the effect of:

Positive uses of power – Expert power may be used to develop and empower suppliers

and supply chains

– Referent power may be used to share and benchmark best practice standards, and to secure supply chain emulation of the buyer’s sustainability standards

– Reward power may be used to exercise responsible influence over the supply chain, to secure compliance with desired sustainability standards

– Reward power may be used to develop required capabilities and sustainability standards in the supply chain

– Reward power may be exercised responsibly by the buying organisation through fair and sustainable pricing, rather than price leverage

Influencing and negotiation

• Influencing is not a single event or series of events: it is a continual process.

• Influencing need not be an intentional (or even conscious) process for either or both parties

• Influencing need not involve conferring, or two-way presentation of arguments

• Influencing need not end with an explicit joint agreement.

• Influencing need not involve compromise or movement by both parties to reach middle ground

– Resistance• Intended influencees position themselves against the

request, and actively attempt to avoid having to comply with it.

– Compliance• Intended influencees are willing to do what is requested of

them, but no more.

– Internalisation• Intended influencees are brought to agree internally with

the request, decision or viewpoint of the influencer

Objectives and outcomes of influencing attempts

Push and pull influencing

A PUSH APPROACH A PULL APPROACH

• Exerting power or authority

• Influencees are fully aware of the process

• Aimed at securing compliance, often against the resistance of influencees

• Persuasion or interpersonal influence

• If performed effectively, influencees may not be consciously aware of the process

• Can secure commitment, if influencees own the need for action or change as fitting their own goals and interests

Facilitative communication skills

– The use of questions and answers, to support information exchange

– Presenting complex arguments in manageable segments

– Summarising each section of a discussion or argument, to reinforce understanding

– Asking for feedback, to check understanding– Sensitivity and flexibility to respond to verbal and

non-verbal signals of where the other party is ‘up to’

Influencing tactics

TACTIC APPROACH

Rational persuasion Logical argument and evidence

Inspirational appeal Appeal to the influencee’s ideals, values and aspirations

Consultation Asking the influencee to participate in planning, or demonstrating willingness to take the influencee’s ideas and concerns into account

Ingratiation Getting the influencee to think well of you, or to be in a co-operative frame of mind, before a request is made

Exchange Offering a reciprocal exchange of favours or promising a share of the benefits

Personal appeal Appealing to personal friendship and loyalty

Coalition Seeking the help of others to persuade the influencee, or using the fact of their support as a reason for the influencee to agree as well

Legitimating Establishing the objective legitimacy of a request

Pressure Threatening sanctions, or using assertiveness bordering on aggression, to demand compliance

Psychological principles of influence– Reciprocation

• An individual is usually highly motivated to reciprocate in response to the behaviour of another individual.

– Commitment/consistency• Individuals have a strong desire to behave consistently.

– Authority• People are more willing to follow the directions or recommendations of someone to whom

they attribute relevant authority or expertise.

– Social validation• Individuals are inclined to see the actions of others – especially others similar to themselves –

as providing guidance for their own decisions.

– Scarcity• If people can be persuaded that objects or opportunities are scarce, they are more likely to

desire them.

– Liking/friendship• People prefer to say yes to individuals they know and like.

Rapport-building techniques

– Subtly matching or ‘mirroring’ the other person’s posture, body language and/or volume, speed and tone of voice

– Picking up on the other person’s use of technical words, colloquialisms and metaphors

– Picking up on the other person’s dominant way of experiencing and expressing things

– Listening attentively and actively to what the other person is saying

– Finding topics of common interest, and emphasising areas of agreement or common ground where possible

– Remembering and using people’s names

– Preferred information-processing channels

– Mirroring

– Pacing and leading

– Anchoring

– Mental rehearsal

– Framing and re-framing

– Positioning

– Intentional use of language to shift thought and behaviour patterns

Neuro-linguistic programming (NLP) technologies

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