Transcript No Slide Title

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
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Provide you with some tools to prepare you to have difficult or
challenging conversations
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Provide you with an overview of powerful negotiation skills –
the very same skill used in the highest levels of international
diplomacy
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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
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The THEORY – Interest-Based Negotiation
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The TOOL – The Negotiation Planning Structure
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Professors William Ury and Roger Fisher developed Interest-Based
Negotiation (IBN) which focuses on developing Win/Win solutions
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
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)
Counterpart’s
Some Things to Remember
• Separate the person from the problem
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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
– Solutions to problems
– Specific and definite
– Basis for argument
– Requires justification
– Ends discussion
• INTERESTS
– Why a particular solution
is preferred
– Reasons underlying a
position
– Requires explanation
NOT justification
– 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
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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
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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