Leadership and the Psychology of Influence

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Leadership and the Psychology of Influence - slides from webinar for MSBCoach (with speaker notes).

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  • Leadership is selling.
  • The “buyer” hasn’t changed in hundreds of thousands of years. The number one function of the subconscious brain is to keep us ALIVE. So the BRAIN is overly cautious, wanting to say no. To get an agreement we have to show the brain pain and then a solution to pain. The subconscious brain operates in different elapsed time. Seconds of consciousness are HOURS to the subconscious – so the subconscious appears to be very fast. We all have a solution, product, or service that keeps people from feeling pain. We just have to show that to the subconscious without making so much “noise.” The subconscious will then DECIDE (without our help). All we do is uncover the pain and take them on a journey so they ASK for our help. When they ask, they reveal their WHY. When I know their WHY, they will buy in to a path.
  • 100% of people make decisions the EXACT same way. Decisions are a natural process – we don’t anyone to help. If someone tries to “sell” us, it raises our defenses. “When our defense is high we do not buy.” EXPLORATION PHASE (HEART) – Emotional connection phase: The decision to buy is made here. If you have the right people on the team, they WANT to buy. The decision starts in the heart VALIDATION (BRAIN) – Logical assessment phase: The brain VALIDATES the decision to buy. Don’t involve the brain too early! This is where our defenses lie – (Animals do not validate). The BRAIN ALWAYS wants to say no --- so don’t present to it! RESOLUTION (GUT) – Objection phase: The objection phase – we work out issues and concerns. Both animals and humans have a built-in automatic response to stimuli called "fixed-action patterns" activated by a "trigger feature." They save us time when making snap decisions; they are usually necessary shortcuts. As the early 20th century English mathematician & philosopher, Alfred North Whitehead, said "civilization advances by extending the number of operations we can perform without thinking about them.“ POLL … Which of the following strategies should you use to persuade your Board to make a costly change? a. Describe the least expensive option first. b. Describe the middle option first, then highest and lowest. c. Describe the highest option first, then middle and lowest. d. Ask the Chair which plan she would like you to present. Explanation: Correct answer: C. The Contrast Effect states that subsequent options will be viewed in light of previously described options. Therefore, presenting the most costly option first will make the other choices seem relatively less costly and will result in an outcome that is closer to the most costly option which you prefer than will other presentation sequences.
  • POLL … You want to give your employees a gift that will enhance their commitment, which of the following strategies is best? a. Give them all the same, company logoed, expensive gift. b. Give them no gifts, but personally thank them. c. Give each employee a personalized gift that is meaningful. d. Give gifts only to those employees who performed the best. Explanation: Correct answer: C. The Reciprocity Principle is amplified when a gift is tailored, significant, and unexpected even if it is not expensive. --- One of the most potent tools of influence. We want to repay, in kind, what another person has provided us. Technique 1: If someone makes a concession, we are obligated to respond with a concession. Making a concession gives the other party a feeling of responsibility for the outcome and greater satisfaction with resolution. Technique 2: Rejection then retreat: exaggerated request rejected, desired lesser request acceded to. Technique 3: Contrast principle: sell the costly item first; or present the undesirable option first. It is the obligation to receive that gives it power! This way we cannot choose who we want to be indebted to. Those who give but won’t receive are disliked for it. EX: Hare Krishna - Give a flower then ask for a donation … LBJ called in favors; Carter had none to call in; political patronage … send prospect pre-printed return address labels with solicitation letter … small gifts and comped meals … Nielsen ratings
  • POLL … Which of the following strategies would be the most effective to set goals for your sales people and hold them accountable? a. Set goals based on each person's prior year’s performance. b. Have each person set reasonable private goals. c. Have each person publicly state a reasonable goal. d. Have each person set an unrealistically high personal goal. Explanation: Correct answer: C. The Consistency Principle is amplified when a commitment is active and public. --- Our nearly obsessive desire to be (and to appear) consistent with what we have already done. Consistency is usually associated with strength, inconsistency as weak; we want to look virtuous. Technique 1: Elicit a commitment, then expect consistency Technique 2: Public, active, effortful commitments tend to be lasting commitments Technique 3: Foot-in-the-door technique - Get a large favor by first getting a small one (small commitments begin to shape a person’s self-image and position them for large commitment) EX: Negotiating a car price … “Hi, how are you?” … Barack Obama’s campaign (meet-ups and volunteers writing letters) … have customers, not salespeople fill out sale agreements … testimonials
  • One means we use to determine what is correct is to find out what other people think is correct. The greater number of people who find an idea correct, the more the idea will be correct. Pluralistic ignorance: each person decides that since nobody is concerned, nothing is wrong. Similarity: social proof operates most powerfully when we observe people just like us. EX: Canned laugh tracks … Look up…bring a few friends and look up…80% passers-by will look up … Consensus & Group Think … inaction toward crime or emergency … Jonestown - Jonestown was the informal name for the Peoples Temple Agricultural Project, an intentional community in northwestern Guyana formed by the Peoples Temple led by Jim Jones. 909 Temple members died, including 200 children murdered by their parents.
  • We prefer to say yes to someone we know and like. Compliance factors: similarity of opinion, life-style, background, personality traits … familiarity and contact … cooperation in shared goals EX: Tupperware parties … peer solicitation … good cop / bad cop … eating together … celebrity endorsements
  • We have a deep-seated sense of duty to authority: Titles, Uniforms, Clothes, Trappings of status. Tests demonstrate that adults will do extreme things when instructed to do so by an authority figure. Stanley Milgram (1963) Obedience study: Why people obey orders from authority. The experiments began in July 1961, three months after the start of the trial of German Nazi war criminal Adolf Eichmann in Jerusalem. Milgram devised his psychological study to answer the question: "Was it that Eichmann and his accomplices in the Holocaust had mutual intent, in at least with regard to the goals of the Holocaust?" In other words, "Was there a mutual sense of morality among those involved?" Milgram's testing suggested that it could have been that the millions of accomplices were merely following orders, despite violating their deepest moral beliefs. The experiments have been repeated many times, with consistent results within societies. The experimenter orders the teacher, the subject of the experiment, to give what the latter believes are painful electric shocks to a learner, who is actually an actor and confederate. The subject believes that for each wrong answer, the learner was receiving actual electric shocks, though in reality there were no such punishments. Being separated from the subject, the confederate set up a tape recorder integrated with the electro-shock generator, which played pre-recorded sounds for each shock level. Before conducting the experiment, Milgram polled fourteen Yale University senior-year psychology majors to predict the behavior of 100 hypothetical teachers. All of the poll respondents believed that only a very small fraction of teachers (the range was from zero to 3 out of 100, with an average of 1.2) would be prepared to inflict the maximum voltage. Milgram also informally polled his colleagues and found that they, too, believed very few subjects would progress beyond a very strong shock. Milgram also polled forty psychiatrists from a medical school and they believed that by the tenth shock, when the victim demands to be free, most subjects would stop the experiment. They predicted that by the 300 volt shock, when the victim refuses to answer, only 3.73 percent of the subjects would still continue and they believed that "only a little over one-tenth of one per cent of the subjects would administer the highest shock on the board." In Milgram's first set of experiments, 65 percent (26 of 40) of experiment participants administered the experiment's final massive 450-volt shock, though many were very uncomfortable doing so; at some point, every participant paused and questioned the experiment; some said they would refund the money they were paid for participating in the experiment. Throughout the experiment, subjects displayed varying degrees of tension and stress. Subjects were sweating, trembling, stuttering, biting their lips, groaning, digging their fingernails into their skin, and some were even having nervous laughing fits or seizures.
  • Opportunities seem more valuable to us when their availability is limited We want it even more when we are in competition for it EX: Condos in Manhattan about doubled in 2007 … Helium prices are through the roof! … Diamonds are managed for price maintenance … fundraising / matching funds …
  • Leadership is selling at is most base level. The "buyer" has not & will not change. Their decision making process is the same: EXPLORATION PHASE (HEART), VALIDATION (BRAIN), RESOLUTION (GUT) 6 Influence Principles / Weapons … Use them wisely: Reciprocity: we want to repay, in kind, what another person has provided us Commitment & Consistency: desire to be (and to appear) consistent with what we have already done Social proof: to determine what is correct find out what other people think is correct Liking: we say yes to someone we like Authority: deep-seated sense of duty to authority Scarcity: limitation enhances desirability
  • Leadership and the Psychology of Influence

    1. 1. Leadership and thePsychology of Influence Mark M. Deutsch, MBA CEO, BNI-Central Virginia Dean, Elephant University Co-Founder, Gangplank-Henrico
    2. 2. Who is Mark Deutsch?
    3. 3. How Has Selling Changed? The “Internet”
    4. 4. How Has the Buyer Changed?
    5. 5. The Decision ProcessExploration Validation Resolution Phase Phase Phase
    6. 6. Influence Principle 1 – Reciprocity
    7. 7. Influence Principle 2 –Commitment & Consistency
    8. 8. Influence Principle 3 – Social Proof
    9. 9. Influence Principle 4 – Liking
    10. 10. Influence Principle 5 – Authority
    11. 11. Influence Principle 6 – Scarcity
    12. 12. More Info. on Influence Robert Cialdini, Ph.D. http://www.influenceatwork.com
    13. 13. Wrap-Up
    14. 14. Contact Info.Mark M. Deutsch, MBA Direct: (804) 338-3987www.MarkDeutsch.commark@markdeutsch.com

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