Managing in Information-Intensive Companies Managing the Innovation Process: Exerting influence to get the job done Managing in Information-Intensive Companies Prof. Morten Hansen Feb. 2013

Navigating the political and social part of the organization is crucial Even in the best companies, there is always a social and political context to innovation Social: working through the “messy” informal organization to obtain buy-in Political: other stakeholders with different and sometimes competing interests Implication: never, never, assume that a rational case for an innovation project is sufficient Don’t just argue the merit of the project

Who has a stake in the project, and what are their issues Who has a stake in the project, and what are their issues? Up, down, and across. Managing Up -Frame project so that meets boss’ (and boss’ boss’) needs -Manage decision making committee (their concerns) -Gain and leverage sponsorship from sr. mngrs. Managing Across -Co-opt other departments -Build coalitions -Build and use network -Trade favors: rely on reciprocity -Frame for common ground with each stakeholder* -Appeal to emotions, not only merits of the project* Managing Down -Find and enlist the right people (appeal to entrepreneurship) -Use passion to engage -Provide escapes if it fails *See: “The necessary art of persuasion,” by Jay Conger, Harvard Business Review 1998.

Use proven influence tactics -do not rely on “the hierarchy” Principle Implication for innovation manager 1. Liking People like those who like them Find similarities with stakeholders (even small ones); ingratiate. 2. Reciprocity People repay in kind Appeal to norm of reciprocity in company; offer favor in kind for support of project; offer stake in project; offer reward for support (e.g., recognition for help). 3. Herd mentality People follow the lead of similar others Get early endorsers; let others know; get endorsers to exert peer pressure. 4. Commitments People feel compelled to follow through on their public commitments Get supporters of the project to commit in writing and publicly; spread the support to make it public. 5. Expertise People defer to experts Expose your expertise on the issues; enlist expertise if you don’t have it (eg hire consultants) 6. Scarcity People want more of what they can have less of Highlight uniqueness of project; “very exclusive project to be part of”; “now or never…” Source: “Harnessing the science of persuasion,” by Robert Cialdini, Harvard Business Review, Oct 2001; “Influence: The Psychology of Persuasion,” by Robert Cialdini, Collins, 2007.