AllenWeb
AllenWeb
Dec '99
Most people working on projects realize that in the long run it is
beneficial to work toward mutually satisfying solutions. Still, occasionally
you encounter someone who has a dominant win/lose attitude about life and
will be difficult to deal with. Fisher and Ury recommend that you use negotiation
jijitsu when dealing with such a person. That is, when the other person begins
to push, don't push back. As in the martial arts, avoid pitting you strengths
against theirs directly; instead use you skill to step aside and turn their
strength to your ends. When someone adamantly sets forth a position, neither
reject it nor accept it. Treat is as a possible option and then look for
the interest behind it (the hidden agenda is always a possibility?). Instead
of defending your ideas, invite criticism and advice. Ask why it's a bad
idea and discover the other's underlying interest (agendas?).
Those who use negotiation jijitsu rely on two primary weapons. They
ask questions instead of making statements. Questions allow for interests
to surface and do not provide the opponent with something to attack. The
second weapon is silence. If the other person makes an unreasonable proposal
or attacks you personally, just sit there and don't say a word. Wait for
the other party to break the stalemate by answering your question or coming
up with a new suggestion.
The best defense against unreasonable , win/lose negotiators is having
what Fisher and Ury call a strong BATNA (best alternative to a negotiated
agreement). They point out that people try to reach an agreement to produce
something better than the result of not negotiating with that person. What
those results would be (BATNA) is the true benchmark for determining whether
you should accept an agreement. A strong BATNA gives you the power to walk
away and say, "No deal unless we work toward a win/win scenario."
Your BATNA reflects how dependent you are on the other party. If you
are negotiating price and delivery dates and can choose from a number of
reputable suppliers, then you have a strong BATNA. If on the other hand there
is only one vendor who can supply you with specific, critical material on
time, then you have a weak BATNA. Under those circumstances you may be forced
to concede to the vendor's demands. At the same time, you should begin to
explore ways of increasing your BATNA for future negotiations. This can be
done by reducing your dependency on that supplier. Begin to find substitutable
material or negotiate better lead times with other vendors.
Negotiating is an art. There are many intangibles involved. Given the significance of negotiating before and during the project life-cycle, project managers are encouraged to read Fisher and Urys' book (on Principled Negotiation ... and the BATNA) as well as others on negotiating. In addition, attending training workshops can provide an opportunity to practice these skills. You should also take advantage of day-to-day interactions to sharpen negotiating acumen.
The Art of Negotiating
Effective negotiating is critical to successful partnering and to
successful projects. All it takes is one key discussion to break down and
unravel a partnering arrangement (or project / project alliance). At the
same time, negotiating is pervasive through all aspects of project management
work. Project managers must negotiate support and funding from top management.
They must negotiate staff and technical input from functional managers. They
must coordinate with other project managers and negotiate project priorities
and commitments. They must negotiate within their project team to determine
assignments (taskings), deadlines (deliverables), standards (quality), and
priorities. Project managers must negotiate prices and standards with vendors
and suppliers. A firm understanding of the negotiating process, skills, and
tactics is essential to project success.
Many people approach negotiating as if it is a competitive contest.
Each negotiator is out to win as much as he or she can for his or her side.
Success is measured by how much is gained compared with the other party.
While this may be applicable when negotiating the sale of a house, it is
not true for project management. Project management is not a
contest! First, the people working on the project, whether they represent
different companies or departments within the same organization, are not
enemies or competitors but rather allies or partners. They have formed a
temporary alliance to complete a project. For this alliance to work requires
a certain degree of trust, cooperation, and honesty. Second, although the
partners within this alliance may have different priorities and standards,
they are bound by the success of the project. If conflicts escalate to the
point where negotiations break down and the project comes to a halt, then
everyone loses. This, unlike bartering with a street vendor, the people involved
on project work have to continue to work together. Therefore, it behooves
them to resolve disagreements in a way that contributes to the long-term
effectiveness of their working relationship. Finally, conflict on projects
can be good. When dealt with effectively it can lead to innovation, better
decisions, and more creative problem solving.
Project managers accept this noncompetitive view of negotiation and
realize that negotiation is essentially a two-part process: The first part
deals with reaching an agreement, the second part is the implementation of
that agreement. It is the implementation phase, not the agreement itself,
that determines the success of negotiations. All too often, managers reach
an agreement with someone only to find out later that they failed to do what
they agreed to do or that their actual response fell far short of expectations.
Experienced project managers recognize that implementation is based on
satisfaction not only with the outcome but also with the process by which
the agreement was reached. If someone feels they have been bullied or tricked
into doing something, this feeling will invariable be reflected by halfhearted
compliance and passive resistance.
Veteran project managers do the best they can to merge individual interests with what is best for the project and come up with effective solutions to problems. Fisher and Ury from the Harvard Negotiation Project champion an approach to negotiating that embodies these goals. It emphasizes developing win/win solutions, while protecting yourself against those who would take advantage of your forthrightness. Their approach is called principle negotiation and is based on four key points as below:
The Ultimate Success - Effective Customer Interface
Ultimate success is not determined by whether the project was completed
on time, within budget, or according to specifications, but whether the customer
is satisfied with what has been accomplished. Customer satisfaction is the
bottom line. In today's competitive world where information flows freely,
reputation is essential to long-term success. As advocates of the total quality
revolution are quick to point out, there is about an 8:1 ration between the
communication of customer dissatisfaction and satisfaction. This means that
for every satisfied customer who shares his satisfaction regarding a particular
product or service with another person, a dissatsisfed customer is likely
to share her dissatisfaction with eight other people. Bad news travels faster
and farther than good news. Project managers need to cultivate positive working
relations with clients to ensure success and preserve their reputations.
As stressed in the executive education courses and the MBA elective
I teach, the "gaining and maintaining alignment" and "managing customer
expectations" are the two key areas of project management focus. If these
are done very well, the project results should be acceptable. If not, problems
generated from lack of this recommended focus can torpedo a project and your
reputation.
Customer satisfaction is a complex phenomenon. One simple but useful way of viewing customer satisfaction is in terms of "met" expectations. This can be modeled as a ratio, with perceived performance divided by expected performance. It the ratio is 1.00 or more (preferably about 1.05 vs. 1.5) then satisfaction. If less than 1.00 then dissatisfaction. The met expectations model of customer satisfaction highlights the point that whether a client is dissatisfied or delighted with a project is not based on hard facts and objective data, but on perceptions and expectations. Project managers must be skilled at managing customer expectations and perceptions. Proactive project managers do not wait to reactively explain situations, but start shaping proper expectations up front and accept that this in an ongoing process throughout the life of the project.
Effective Customer Interface - Managing the Client on a Project
Rules of Engagement:
Where Do We Go From Here?
More and more companies are seeking cooperative arrangements with
each other to compete in today's business world. Project partnering represents
a proactive response to many of the challenges associated with working with
people from different organizations. Before the project is started, significant
time and effort are invested up front to build relationships among stakeholders
and develop agreed-upon procedures and provisions for dealing with problems
and opportunities before they happen. These procedures typically include
joint assessments of how well the partnering arrangement is working, escalation
guidelines for resolving disputes in a timely and effective manner, and
provisions for process improvement and risk sharing. Persistent leadership
is required to make partnering work. Project managers must "walk the talk"
and consistently display a collaborative response to problems. Similarly,
top management must consistently and visibly champion the principles of openness,
trust, and teamwork.
Partnering is not limited to contacted relationships. More and more
companies are applying the partnering approach to managing internal projects
involving different subsidiaries and departments.
Effective negotiating skills are essential to making partnering work.
People need to resolve differences at the lowest level possible in order
to keep the project on track. Veteran project managers realize that negotiating
is not a competitive game and work toward collaborative solutions to problems.
They accomplish this by separating people from the problem, focusing on interests
rather than positions, inventing options for mutual gain, and relying on
objective criteria whenever possible to resolve disagreements. They also
recognize the importance of developing a strong BATNA, which provides them
with the leverage necessary to seek collaborative solutions.
Customer satisfaction is the litmus test for project success. Project managers need to take a proactive approach to managing customer's expectations and perceptions. They need to actively involve customers in key decisions and keep them abreast of important developments. Active customer involvement keeps the project team focused on the objectives of the project and reduces misunderstandings and dissatisfaction.
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