Psychology of Stakeholder Management

Presentation made at PMI Conclave – Mumbai – Jan 2015

WON TOP HONORS PMI National Conference – Sept

2014

1. Themes of Psychology 2. Recommendations for PMs

Themes of Psychology

Influencing

Negotiation

Alignment

Influencing

Dr. Robert Cialdini

Six Principles

Influencing -Reciprocity

Iskon disciple would give flower as a gift Another disciple standing next would ask for a donation. It was hard to then refuse a smiling request for a small donation

People tend to return a favor

How a $0.05 flower can bring in thousands in

revenue ?

Joshua Bell and the Subway

Experiment

Influencing -Authority

Played as an incognito at the subway station and no one paid attention Collected $52 from passersby Earned considerably more playing the same repertoire at a concert

Need to establish credentials to Influence

Influencing –Social Proof

Asch Conformity Experiment

Individual's own opinions are influenced significantly by those of a majority group

To influence use the horizontal peer power

Negotiation

Leigh Thompson

How to effectively Negotiate ?

Focus on needs not positions Create positive environment

Negotiation - Needs Vs. Positions Position

What is required

Need Why it is required

Address Needs and not Positions

Negotiation - Create positive environment

If negotiators see positive outcomes, they tend to be more inclined to reach

agreements

Alignment of Stakeholders

Realistic Conflict Theory provides insights into achieving

Stakeholder alignment

Robert Cave experiment

Alignment of Stakeholders

Avoid competition for the same goals Have Super Ordinate goals

Develop Shared goals

Muzafer

Sheriff

Psychology for managing people dimension

- Influence: The Psychology of Persuasion By Robert Cialdini - Harnessing the Law of Reciprocity - http://www.projectmanagement.com/blog/Voices-on-Project-Management/7945/ -http://www.blcopywriting.com/what-the-hare-krishna-can-teach-you-about-marketing - http://www.blcopywriting.com/what-the-hare-krishna-can-teach-you-about-marketing

-Law of Authority - Joshua Bell - http://en.wikipedia.org/wiki/Joshua_Bell

- The Mind and Heart of the Negotiator by Leigh Thompson - Focus on Needs not Positions - http://web.mit.edu/negotiation/www/NBivsp.html

- Realistic Conflict Theory -http://en.wikipedia.org/wiki/Realistic_conflict_theory

-Robbers Cave Experiment -http://www.simplypsychology.org/robbers-cave.html

References

Videos Influence : Science of Persuasion -

https://www.youtube.com/watch?v=cFdCzN7RYbw

Social Proof - ASCH experiments https://www.youtube.com/watch?v=DQ7r8iy8r6A

Authority – Joshua Bell Washington Post experiment

https://www.youtube.com/watch?v=LZeSZFYCNRw