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									       Negotiation
            in
   Project Management



David S. Maurer, PMP, LTC, USA (Ret.)
       PMI – 13 December 2005
        Why Negotiate?
   Dictating is so much faster

                   Buy-in

                Mutual gain

Achieve more together than separately

               All boats rise

                  Fairness
Terrell Owens – what have you done to my team?????
                             Purpose


   Provide you with some tools to prepare you to have difficult or
    challenging conversations

   Provide you with an overview of powerful negotiation skills –
    the very same skill used in the highest levels of international
    diplomacy

   These are LIFE SKILLS – equally useful at home, with the
    kids, at the office, at the plant or as part of or as the leader of
    a project team
                            Background

   The THEORY – Interest-Based Negotiation
         Professors William Ury and Roger Fisher developed Interest-Based
          Negotiation (IBN) which focuses on developing Win/Win solutions


   The TOOL – The Negotiation Planning Structure
         Breaks down elements of complex negotiations into manageable
          components
         Helps organize thinking – adds structure
         Helps to better understand, prepare, conduct and evaluate negotiations of
          all types


   The BOOK – Getting to Yes. Negotiating Agreements without Giving In
 Who Are These Guys
(and where does this apply)?
         Couples
        Employees
          Bosses
        Customers
      Business People
         Families
        Neighbors
       Sales People
         Lawyers
         Nations
                  Positional Bargaining
             versus Interest-Based Bargaining
Typical Method:

  Position

              Argument

                          Concessions

                                        Compromise

                                                     Solution?
Does this method of negotiation produce a wise
agreement (meets the legitimate interests of each side, resolves
conflicts fairly and is durable)?
                 The Planning Structure
                                  Mine   Counterpart’s
POSITION
(assumed best alternative)

INTERESTS
(why)?

BATNA
Best Alternative To
a Negotiated Agreement

OPTIONS for MUTUAL GAIN
(satisfy as many interests of
both parties as possible)
OBJECTIVE CRITERIA
(industry standards, law,
historical data, best practices
code of ethics)
        Some Things to Remember
• Separate the person from the problem
   –   Perceptions
   –   Emotions
   –   Communication
   –   Assumptions


• Keep your ego in check – Colin Powell

• Seek satisfaction not victory
                         IBN
• Understand your position and theirs

• Understand your interests and theirs

• Understand your BATNA and theirs

• Think about options for mutual gain

• Identify and use objective criteria
              Focus on Interests
• POSITIONS                  • INTERESTS
  – Solutions to problems      – Why a particular solution
                                 is preferred
  – Specific and definite
                               – Reasons underlying a
  – Basis for argument           position


  – Requires justification     – Requires explanation
                                 NOT justification

  – Ends discussion
                               – Starts discussion
                Identify Interests

• Listen for:
     • I have to do X because…….
     • I can’t do Y because…….
     • I am really concerned about…….


• Then ask:
     • Why do you need……..?
     • Could you tell me a little bit more about your reasons
       for……..?
       Options for Mutual Gain

• Brainstorm possible solutions together
• Consider options for joint benefit
• Create together what neither of you could do
  on your own
• Look for possible trade-offs
     • Exchange lower priorities for higher ones



                        1962!!
           Knowledge is Good
          (The Faber College Credo)
• Negotiating (communicating) helps us identify

  – What we know;

  – What we don’t know; and…

  – What we don’t know we don’t know!
        Remember your BATNA!

• Real and concrete
• Pre-determined before and outside the
  negotiation
• Your best worst case scenario
  –   If we don’t agree, I can always….
  –   What alternatives do I have?
  –   What alternatives can I create?
  –   How can I weaken the BATNA of my
      counterpart?
            Objective Criteria

• Kelley Blue Book
• Going rate for babysitters in your
  neighborhood
• Standard contract language
• Industry best practices
• Our code of professional ethics
                           Last Slide!
• Active Listening
   –   Verbal and non-verbal signals
   –   Demonstrates attention to speaker
   –   Builds relationship
   –   Clarifies to ensure understanding
   –   Supports more disclosure…(and knowledge is good, remember)?


• Reason Together…it worked for The Godfather…(for a while)

• Win/Win
   – Because Win/Lose is not acceptable
      • Jim Thomas – Negotiating to Win

								
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