IIBA®  Quick Tips for Better Business Analysis™
 Quick Tip 23: Weapons of Influence - Scarcity
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 Last month we discussed authority -- one of the six "weapons of influence" researched  by Robert Cialdini and documented in Influence: Science and Practice.  You may not have direct power, but you can increase your impact by practicing  influence. In this Quick Tip we discuss practical, ethical ways for BAs to exert  indirect power using these principles. This is the last Quick Tip about Weapons of Influence.
 Scarcity: You tend to engage in risky, impulsive behaviours  to avoid loss, but not to make equivalent gains.
 You treat scarcity and  value as if they are the same thing; they are not. For example, love -- a ubiquitous  human experience -- feels rare because it is important. 
Some scarcity  is imposed through human actions (OPEC restricting oil production); some is natural  (experience takes time to develop).
 Examples: This weapon of influence  is pervasive and powerful.
- Imposed scarcity moves products. "SALE TODAY  ONLY!" limits the time you have to make a  purchase, increasing  the apparent worth of the product. 
- Potential loss drives risky action.  Businesses throw millions of dollars at failing projects because there is a vanishing  chance that a loss can be avoided, and sunk costs recovered. At the same time  projects with large potential benefits may go unfunded. Poker players call this  'pot committed'. It is also called 'throwing good money after bad.'
 Ethics: This weapon of influence helps explain why negative  political campaigns are so tempting and so effective. The principle applies in  business as well:  it can help you get your business case funded. To make  your business case appear more valuable, emphasize losses the company will face  by failing to fund it. To make it appear more valuable than competing business  cases, emphasize the losses the company will suffer by implementing them. If you  use this weapon to gain support for an initiative that will deliver solid, strategically  aligned benefits, you're likely behaving ethically. If you use it to quash  ideas and overwhelm the evidence, you're likely not.
 Hints:  Guard against this weapon by rigorously analysing the risks presented, instead  of being seduced by the impacts. Compare good and bad possible outcomes by making  them all negative or all positive. For example, compare the risk of failure to  benefits that will be lost through inaction.
 
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