As project managers, we spend a lot of our work life engaged in some type of bargaining – for resources, timelines, budgets, and definitions of success. Then we go home and start all over again – who takes the trash out, where we spend the holidays, what constitutes an acceptable math grade! These agreements are usually made by compromise, and often result in no one really being satisfied with the outcome.
The Project Management Body of Knowledge, 4th Edition, maintains that “negotiation is an integral part of project management and done well, increases the probability of project success.”
This series of blog articles will provide project managers with practical tips and techniques for discovering the underlying concerns of each party, finding innovative ways to achieve mutual gain, and creating win-win situations.
The first step is to understand the difference between negotiation and compromise. To negotiate is “to deal or bargain with another or others”, while compromise is “a settlement of differences by mutual concessions”. The important point here is that when compromising, neither side gets all of what they really want, but each give things up in order to reach an agreement.
Compromise does not involve creative problem solving, as good negotiating does. Collaborative negotiation assumes that creative problem solving can overcome the intrinsic win/lose nature of more competitive bargaining.
So how do you move from competition and compromise to creatively solving problems through integrative negotiating?
The first step is to focus on the interests, rather than the positions, of all of the parties, including your own. Positions, simply, are WHAT we want. This is our stated goal. For example, “I want this project completed during the 3rd Quarter”.
Interests are WHY we want what we want. Interests are the needs, fears, concerns and desires behind our stated positions. For the position stated above, there may be several interests: “I have a 4th Quarter code freeze to work around. I have a team lead leaving the organization at the end of the year. I have some team members with important holiday plans, who have requested time off months in advance. If this project runs over into the 4th Quarter, I am concerned about how my team will get the work done.”
As human beings, we are more comfortable talking about positions instead of interests. We don’t always want to talk about our needs, fears, concerns and desires. So change things up by focus on satisfying underlying interests, instead of addressing stated positions.
Since interests are based on needs, desires or concerns, we have more opportunity to be creative and come up with possible solutions. There are usually several possible solutions to satisfy every interest.
In my next blog post, we will look at techniques for identifying underlying interests.
3 Comments to 'Negotiation Skills for Project Managers, Part I'
October 7, 2009
Great points. I wonder how much could be solved up front with requirements definition. Often I find customer thinks they know what they want but have not really done root cause analysis to find out what the real problem, challange, change, or opportunity is.
I also find that few cliens consistantly use Strength, Weakness, Opportunity, and Threat (SWOT) analysis to get systems-of-systems approach. I used this process often to make everyone happy.
The key is to focus on what end state need is and not worry about how we think we should get there too soon or we answer the wrong problem, waste resources, and miss golden opportunities.
This is just my experiance, I am sure there is a whole lot more to be said on this topic and I would love to hear other thoughts.
Ron
October 16, 2009
Hey, I found your blog while searching on Google. I have a blog on online stock trading, I’ll bookmark your site.
October 17, 2009
Awesome blog!
I thought about starting my own blog too but I’m just too lazy so, I guess I‘ll just have to keep checking yours out.
LOL,
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