Copyright 2009 John Wiley & Sons, Inc. Chapter 4 Negotiation and the Management of Conflict.
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Transcript of Copyright 2009 John Wiley & Sons, Inc. Chapter 4 Negotiation and the Management of Conflict.
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Copyright 2009 John Wiley & Sons, Inc.
Chapter 4
Negotiation and the Management of Conflict
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The Nature of Negotiation
The process through which two or more parties seek an acceptable rate of exchange for items they own or control.
Parties to a negotiation often see themselves as opponents
“If they win, I lose” Project manager must avoid this on projects
as all stakeholders are interrelated
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Principles of Negotiation
Negotiation skills are the biggest skills needed by project managers
Must negotiate to get the projectMust negotiate with line managers to
get the work doneMust negotiate to solve conflicts
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Project Negotiation Must…
Must resolve conflict without major damage to project objectives
Must foster honesty between the negotiators
Since negotiators are not enemies, must seek a mutually-agreeable solution
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Partnering, Chartering, and Change
1. Use of subcontractors
2. Use of input from two or more functional units
3. Management of change
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Partnering
Project firm and subcontractors are at odds on a project
Project firm wants high quality and low cost
Subcontractors want high profits and maximum flexibility
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Project Partnering
A method of transforming contractual relationships into a cohesive, cooperative project team with a single set of goals and established procedures for resolving disputes in a timely and effective manner.
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Steps to Project Partnering
1. Project firm must commit to partnering
2. All parties must implement the process
3. Joint review when finished
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Project Firm Commit to Partnering
Select subcontractors to includeJoint team-building exercisesProject charter
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Four-Part Agreement
1. Joint evaluation of project progress
2. A method for resolving disagreements
3. Continuous improvement
4. Support from senior management
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Joint Review
Setting this up requires a lot of negotiation
This negotiation cannot be adversarial in nature
It has worked well in some settings
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Chartering
Project Charter - A written agreement that outlines the specifics of the project
Usually between all of the groups providing people or other resources to the project
Agreeing to a charter implies members will not make changes without consulting the others
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Scope Change
The initial assessment was wrongProject team learns more about the
projectChange is mandatedClient ask for changes
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Changes Imply Changes
BudgetSchedulePerformancePriorities
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Conflict and the Project Life Cycle
1. R&D
2. Market introduction
3. Growth
4. Maturity
5. Deterioration
6. Death
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Project Life Cycle
1. Formulation
2. Buildup
3. Main program
4. Phase-out
1. Conceptualization
2. Planning
3. Execution
4. Termination
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Sources of Conflict
1. Different goals and expectations
2. Uncertainty about authority
3. Interpersonal conflict
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Project Formation
Conflict centers around the confusion of starting a new project– Many of the policies and procedures have not yet
been formed– The objectives of the project are not yet finalized
Conflict cannot be avoided at this phase In fact, much of this conflict is good conflict
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Handling Project Formation Conflict
1. Technical objectives must be set
2. Senior management and line managers must commit to the project
3. The priority for the project must be set
4. Organizational structure of project must be established
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Project Buildup
Conflicts tend to be technical in natureConflicts tend to be between project
manager and line managers
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Main Program
Many conflicts are over schedulesSome tasks will be late and the
schedule will have to be adjusted or the time made up
The more complex the project, the more sources of conflict there are
There are also technical conflicts
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Project Phase-Out
Deadlines are a major source of conflictTechnical problems are rarePersonality conflicts will be a big deal
due to time pressures
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Project Negotiation Must…
Must resolve conflict without major damage to project objectives
Must foster honesty between the negotiators
Since negotiators are not enemies, must seek a mutually-agreeable solution
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Principled Negotiations
1. Separate the people from the problem
2. Focus on interests, not positions
3. Before trying to reach agreement, invent options for mutual gain
4. Insist on using objective criteria