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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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?