Negotiation

Negotiation brings two parties together to create a common understanding and expectations. A project leader may need to negotiate a project’s price, terms, scope, and/or timeline.

A successful negotiation results in both sides feeling comfortable accepting—a “win-win”. This is also called integrative negotiation.

Interests and positions

An interest is the underlying reason a party got involved in the negotiation.

A position is the party’s stated desired outcome of a negotiation.

Integrative negotiation vs positional negotiation

In integrative negotiation:

• The parties solve the problem together
• The goal is to make the wisest decision
• The parties work together to determine who gets what
• The focus is on interests, rather than positions
• The parties are open about their interests
• The parties insists on objective criteria and consider multiple solutions
• The parties yield to reason, rather than pressure
• The parties look for win-win opportunities

In positional negotiation:

• The parties are adversarial
• The goal is victory
• Each party demands concessions from the other
• The parties focus only on their own position
• The parties are closed about their interests; may mislead or use tricks
• Each party insists on its own position
• The parties apply pressure to each other
• The parties only care about their own success

Source: Getting to Yes: Negotiating Agreement Without Giving In, Fisher, Ury, and Patton; Integrative or Interest-Based Bargaining, Spangler.

Conducting negotiations

The attitude in the negotiations will also set the working relationship for the project. By establishing mutual respect during negotiations, you can improve communication and create a long-lasting, positive rapport.

The preparation stage

• Determine the scope of the negotiation
• Determine what a successful outcome would be
• Ensure that the person you’re negotiating with has the authority to complete the negotiation
• Anticipate the other party’s reaction
• Brainstorm what-if scenarios and responses
• Rehearse discussions
• Find an experienced mentor

The negotiation stage

• Develop a rapport with the other party at the outset
• Focus discussion on the scope of the project and potential issues
• Establish credibility
• Understand the other party’s needs and concerns
• Keep a tally of concessions
• Seek reciprocal concessions
• Close negotiations successfully on a positive note

Trade-offs

When you make concessions in one area, you can often make gains in another area.

The key areas of a project are:

• Scope
• Time
• Cost
• Resources
• Quality