Let a foe step on your toe and you crucify him, but a close friend you brush it off.
An unfamiliar person sells you something suddenly you seem to have lost your wallet but when a friend sells you a pricey good you bend over backwards to purchase.
It’s like that scene where people look for reasons for the budget mishap other than the skill of the FP&A guy but as soon as its someone, they don’t like that makes the same mishap it’s definitely got to do with their skill
In Influence: The Psychology of Persuasion, Robert B. Cialdini highlights the principle of liking as a key factor in persuasion. People are more likely to say "yes" to individuals they like. Whether we like it or not this phenomenon runs deep and has its origins in the history of creation itself. This principle plays a significant role in sales, negotiations, and everyday interactions.
What Drives the Principle of Liking?
- People often perceive attractive individuals as more persuasive, trustworthy, and competent—a phenomenon known as the "halo effect." Now you know why some industries are awash with beautiful frontline staff and recently one lady acknowledged that while her competence can’t be doubted, she seemed to get favorable treatment compared to her equally competent female counterparts. After reading that section of the book I noticed why I took long to get promotions
- This can lead to favorable treatment, or decisions based solely on appearance.
- We tend to like people who are similar to us in terms of interests, values, or even appearance. Only when forced to look outside of our circle do we go out.
- Shared hobbies, backgrounds, or beliefs create a sense of connection, increasing the likelihood of compliance. Communist countries are prone to understand business values of fellow communists and might find pure capitalism an annoyance.
- Flattery or genuine praise can create positive feelings, making us more receptive to a person's request or influence.
- Even when we suspect the compliment might have ulterior motives, it still works!
- The more we interact with someone, the more likely we are to like them. This is known as the "mere exposure effect." The longer the distance the blurry it becomes.
- Repeated exposure builds trust and reduces apprehension, which helps in persuasion.
- People tend to like individuals who are associated with positive events or environments.
- For example, a salesperson who shares good news or creates a positive atmosphere is more persuasive.
Why do people buy from those they like?
The principle of liking is particularly potent in sales because:
- Trust is amplified: When someone likes a person, they trust them more. This trust extends to the product or service being sold.
- Emotional connection outweighs logic: People often make decisions based on emotions and justify them with logic later. Liking creates that emotional bridge. When one likes someone, they find reason to accept that someone. A recent situation where someone who disliked someone was presented with opportunities to visit such an individual at hospital and they would each time find a reason not to but when faced with a less important situation affecting someone, they liked they would create reasons to help.
- Reciprocity is triggered: When someone likes us or makes us feel good, we naturally want to reciprocate, often by agreeing to their requests. For FP&A it might mean doing something good for the stakeholders so that when you need their buy-in they might reciprocate. Someone who once lent me money in dark times is assured to get some even in their brighter times. As a Toastmaster I often said yes to deliver a speech with a friendly club whose member also took time to visit my club
- Tupperware Parties: Cialdini explains how the success of Tupperware parties’ hinges on the liking principle. Guests attend because they like the host (a friend or family member) and are more likely to buy products to maintain or enhance the relationship.
- Charismatic Salespeople: Sales professionals who build rapport, share commonalities, and genuinely connect with customers often outperform those who don't.
- Celebrity Endorsements: People who admire a celebrity are more likely to purchase products endorsed by them because they associate their liking for the celebrity with the product.
How to Apply This Principle Ethically
- Build authentic relationships based on genuine interest and care.
- Find and highlight common ground to create rapport.
- Offer sincere compliments and positive reinforcement.
Show empathy and listen actively to others' needs.
By leveraging the principle of liking, individuals can create meaningful connections that lead to influence—not through manipulation, but through mutual respect and trust.
Let’s bring closer to home with FP&A
Build Strong Relationships
- Personal Connections: Take time to understand and connect with key stakeholders (e.g., department heads, executives, or project leads). Find common ground—such as shared professional goals, interests, or challenges. Do these over coffee or lunch. Don’t discuss work but seek to know the person behind the roles
- Team Integration: Position FP&A as a collaborative partner, not just a financial gatekeeper. Attend team meetings, participate in cross-functional discussions, and be present where decisions are made.
Example: An FP&A manager who consistently meets with the marketing team, understands their goals, and aligns recommendations with their priorities will naturally build rapport and trust
Communicate Insights in a Relatable Way
- Tailor Messaging: Adapt your communication style to resonate with your audience. Also weigh your ratio of “I” statements to “You”. Make the message about them and the broader team not what you want.
- Storytelling: Present your insights in a compelling narrative, making them more relatable and engaging. A well-told story resonates emotionally and is easier to remember. Stories connect! Numbers freeze our brains.
Example: Instead of presenting " EBITDA dipped by 5% last year due to XX," you might say, "Our overall profitability was impacted by some controllable but to larger degree uncontrollable factors like XX. Here's a plan to steer the business back to profitability.
Create Familiarity with regular interaction
- Maintain consistent communication with stakeholders. Regular updates and face-to-face (or virtual) interactions build trust and make you a familiar, trusted voice.
- Offer value in every interaction, so stakeholders associate FP&A with helpful insights and solutions.
Example: Share regular "mini insights" or financial health snapshots during informal conversations or quick meetings to keep stakeholders engaged and dependent on FP&A for key updates.
Find, highlight and reinforce similarities
- Align Goals: Show how your insights support the broader organizational or departmental objectives. This creates alignment and positions FP&A as an ally in their success.
- Shared Metrics: Discuss KPIs that are equally important to FP&A and stakeholders, making it clear you’re on the same team. Please no EBITDA vs EBIT discussion with business stakeholders
Example: “Both of us are focused on ensuring this project achieves a 15% ROI. Here’s a financial forecast that supports achieving that target while staying within budget.”
Associate FP&A with positive outcomes
- Celebrate Wins: When FP&A's recommendations lead to a successful outcome, share the credit and highlight the team's collaborative efforts.
- Solution-Oriented Approach: Focus on offering actionable solutions rather than just presenting problems. Stakeholders are more likely to appreciate and like those who help solve challenges.
Example: When forecasting revealed potential overspending in a project, propose cost-saving measures that still allow the project to succeed, positioning FP&A as a problem-solver.
?Leverage visuals and simplicity
- Use visually appealing dashboards and simplified presentations to make data easier to understand and more engaging.
- Visually clear insights are more likable and persuasive because they reduce cognitive effort for decision-makers.
Example: Create a dashboard with color-coded performance metrics, trend visuals, and clear action points instead of overwhelming stakeholders with dense spreadsheets.
Show empathy for stakeholders’ challenges
- Demonstrate understanding of the challenges or pressures stakeholders face. Position your insights as tools to help them succeed in their roles.
Example: “I know you’ve been working hard to meet product launch deadlines while staying within budget. This financial model ensures that your goals are met without compromising on quality.”
FP&A teams that prioritize relationship-building, tailor their messaging to their audience, and align their insights with stakeholders’ goals can harness the principle of liking to gain trust, influence decisions, and sell their insights effectively. By fostering collaboration and empathy, FP&A can move from being seen as "number crunchers" to being trusted advisors who drive success.
Until next time keep liking us
