Much of the basis for an influence shaped approach to leadership is based on the notion that all of our key relationships are reciprocal. This means that all sides of any relationship are involved in order to get their needs met and that they will need to feel as if their efforts have been compensated.

Sometimes these needs match very closely and no adjustment needs to be made in order to achieve influence. For instance, if I am leading a group and they have indicated that they trust decisions to be made without direct input from them, because I have generally acted in a way that meets our collective needs, then no real adjustment will need to be made in order for all involved to understand the reciprocal nature of my decisions. However, if that alignment does not exist between by independent decisions and their understanding, then as leader I will need to make some exchange in order to gain the appropriate influence. In this instance, I may need to actively involve them in the decision making process.

Unlike straight exchanges in the market, the currency for exchanges in the influence market are highly varied and depend on the situation and the needs, desires and aspirations of those who are involved.

Reciprocity – the two-way nature of most relationships and that everyone expects a return for their contributions (good or bad).

Exchange – the adjustments needed to balance the accounts and get as much to alignment as possible.

Currency – the means of making the exchange between the parties involved

Roles of the leader in reciprocity and exchange

First, leaders have some idea about what is in the collective interest of the group and how they will achieve this. The collective interest is called a vision or mission for the group or organization. And the pathway to achieve the vision is called the strategy. Sometimes these are determined exclusively by the leader and at other times it is a more participatory effort. Regardless, the leader is responsible for ensuring that the vision and strategies are developed and that they fit in the environment in a way that will lead to success. This task is much more difficult when the environment is unstable.

Second, the leader is responsible for articulating the vision to internal audiences in ways that inspires and aligns their work. This means that the vision must be understood from the perspectives, interests, and values of each stakeholder group. Externally the leader communicates the vision in a way to attract and secure partners, collaborators, and other resources that are needed to advance the vision.

Finally, leaders need to understand the needs of internal and external stakeholders because often an exchange will be needed in order to secure an adequate level of buy-in or investment to go forward. Understanding the unique needs of individuals and groups and managing the exchange process is absolutely essential if leaders are to use influence to drive toward success. The means of making this exchange is the currency.

What makes influence possible is that we are linked to at least one other person who has some stake in the work that is being done. Without such a stake and the two way relationships that emerge around these interests it is pointless to try to use influence to move ends we desire. It is tempting to think of influence as something we do to others, but in a healthy organization it is both something that we do to others and others do unto us. Reciprocal relations move in all three directions of influence: up, out and down. Regardless of position or power, history or prestige, experience or wisdom there are always two players anytime that influence is a possibility. Reciprocity means that if I do something for my fellow player I expect to receive something in return and that I have some power over my colleague, even if it is only quitting the game altogether.

Types of exchange

A reciprocal relationship requires that the engaged parties have a means to exchange things that they value. This exchange takes three general forms:

Mutual gain or interest – This exchange is the one that occurs when the involved parties all gain from the success of the enterprise. These stakeholders do not need to share the same gain or value gains in the same way, but all agree that collaborative effort makes sense because of what they will derive from the success of the joint venture, problem solution, new direction or change. This is why the promotion of the common ground and or vision is such an important leadership undertaking. This shared gain is more or less immediate or at least it is clear when and how the individual gains will be received.

Delayed gratification – This form of exchange payment assumes that some time in the future the joint activity will produce value that will be shared that makes an individual’s participation and their ongoing engagement worthwhile. The benefits and the schedule of “payments” do not have to be the same for everyone, but everyone that is engaged in this manner will have some idea about what their “rightful” payment should be, when it should be paid, and who is to do the paying.

Compensation - Compensation is used when a party needs to be involved does not recognize or does not have a mutual gain or interest in the success of the change or development. In fact, there is a real loss of time, resources, position, or power that this party will experience as the change goes forward and they need to be compensated for the loss.

Most of us can recall examples of how we have been influenced by each of these exchange forms: mutual, delayed, and compensatory. The more aware we can be of the exchange and our currencies, the better positioned we’ll be to influence.