ESG Seminar – Persuasion Science to Influence Customers and Staff

The Executive Study Group (ESG) seminar Topic in October named “How to Use “Persuasion Science” to Influence Customers and Staff & Win Big” was held by the ESG, Asia Pacific Institute for Strategy Limited (APIFS) and the Hong Kong Science and Technology Parks Corp (HKSTPC) on 16 Oct 2015 in Grand Hall at Phase III. I would like to summarize the seminar for sharing below.

In the beginning, Dr. Mark Lee quoted Prof. Peter Drucker (Father of Management) that “Because the purpose of business is to create a customer, the business enterprise has two and only two basic functions: Marketing and Innovation.” And then he also quoted Mr. Jack Trout (Author of Best Seller – The 22 Immutable Laws of Marketing) that “Today, when top management is surveyed, their priorities in order are: Finance, Sales, Production, Management, Legal and People. Marketing and Innovation are missing from the list.” Then Dr. Mark Lee briefed the content of seminar included "Persuasion Skills through Scientific Research”, “The Six Principles”, “Putting It All Together”, and “Group Discussion”.

Persuasion Skills through Scientific Research:
Dr. Mark Lee said it was less respect to organization hierarchy and playing the “Because I’m the boss” card was not useful. Persuasion skills exerted far greater influence over others’ behavior than formal power structures done because of flat organization with more and more Generation Y. Then Dr. Lee briefed the breakthrough of behavioral scientists that executive acquired persuasion skills for interactions lead people change.

Then he mentioned persuasion works by basic principles that could be taught, learned and applied. The following are six principles as checklist to influence people.
1. Liking (印象好感) – Uncover real similarities and offer genuine praise
2. Reciprocity (禮尚往來) – Give what you want to receive
3. Social Proof (同輩認同) – Use peer power whenever it’s available
4. Authority (專業權威) – Expose your expertise; don’t assume it’s self-evident
5. Scarcity (機不可失) – Highlight unique benefits and exclusive information
6. Consistency (自我承諾) – Make their commitments active, public, and voluntary

Liking (印象好感)
Dr. Lee told us that people like other similar to themselves and quoted GE CEO exchange as example (See how close their appearance (shirt)). So that Liking included two items “Similarity” and “Praise”.

He also reminded to use similarity to create bonds with Generation-Y; and colleagues like people like them. Prof. Robert Cialdini (Arizona State University) statement was quoted that “People like those who like them; Uncover real similarities and offer genuine praise”.

Reciprocity (禮尚往來)
Gift giving is one of the simpler applications of the rule of reciprocity. For example, Sulwhasoo provided “Emotional hotline” for employees and their direct family. Servant-Style Leadership is useful for offering help for resource allocation. Then Dr. Lee quoted Prof. Robert Cialdini (Arizona State University) statement that “People repay in kind; Give what you want to receive.”

Social Proof (同輩認同)
Prof. Robert Cialdini (Arizona State University) also said that “People follow the lead of similar others; Use peer power whenever it’s available.” The peer power success case was “Ice Bucket Challenge” using social media.

Authority (專業權威)
Prof. Robert Cialdini (Arizona State University) another statement was “People defer to experts; Expose your expertise; don’t assume it’s self-evident.” Dr. Lee used an example of Physical Therapy Unit of a Leading Hospital that many patients abandoned their exercise routines after they left the hospital because physical therapists were not doctors (without authority). Therefore, hospital displayed all the awards, diplomas and certification of her staff on the walls of the therapy rooms. Another example was Dr. Kong (special shoes) in Hong Kong.

Scarcity (機不可失)
“People want more of what they can have less of; Highlight unique benefits and exclusive information.” which stated by Prof. Robert Cialdini (Arizona State University). ZARA was example that you needed to make decision buy or not, otherwise, this style coat will be sold out. 

Consistency (自我承諾)
“People align with their clear commitments; Make their commitments active, public, and voluntary.” said by Prof. Robert Cialdini (Arizona State University). Dr. Lee also use Six Sigma and Lean in manufacturing as example that the team to set their own goals and announce in front of other colleagues, most of goals would be achieved.

Putting it all together, Dr. Lee quoted AMOREPACIFIC as case study and they achieved HKMA quality award. Their Corporate Theme Song demonstrated vision, mission, value, peer, teamwork, change, reciprocity, enjoyment and customer loyalty.
(Amore Pacific Song - Beautify the world - https://www.youtube.com/watch?v=FHEAotYMehE )

Lastly, Dr. Lee concluded using Mr. Felix Rohatyn (Former Managing Partner, Lazard Freres Investment Bank) statement “Most deals are 50% emotion and 50% economics.”

Before the Group Discussion, Dr. Lee gave us an exercise to find out two most difficult strategies to be used to influence colleagues and selected the easiest one to be used.

Reference:
HKSTP - www.hkstp.org
Asia Pacific Institute for Strategy Limited (亞太策略研究所有限公司) – www.apifs.org