Negotiation

Question 1

name 6 parties that PM negotiation will take place with

Answer 1

1. contractors & suppliers
2. end users
3. resource providers
4. team members
5. project sponsor
6. stakeholders

Question 2

what are the 3 key attributes of collaborative negotiation

Answer 2

1. seeks to gain a “win-win” situation, where the parties involved in the negotiation get part or all of their wishes.
2. This approach tends to produce long-term relationships
3. minimises potential for conflict and tends to produce the best results.

Question 3

what are the 3 key attributes of competitive negotiation

Answer 3

1. implies getting the best deal regardless of the needs and interests of the other party.
2. This approach can easily result in a “winner takes all” battle.
3. While best practice indicates that this should be avoided, it is not always possible to do so.

Question 4

what are the 6 stages of a negotiation process

Answer 4

1. preparation
2. discussion
3. proposition
4. bargaining
5. agreement
6. review

Question 5

what 7 points should be done during the preparation phase

Answer 5

1. list points to be negotiated and preferred order to deal with them
2. establish and rank your objectives - what would you like to get
3. what would you reasonably settle for
   - what must you get you’ll walk away
   - what concessions are you prepared to make
4. gather, review and digest all available information - knowledge is power
5. evaluate strengths and weaknesses - yours and opponents
6. rehearse negotiation and prepare responses to difficult questions
7. decide on negotiating team and who will lead it

Question 6

what 4 points should be done during the discussion phase

Answer 6

1. set the scene
2. introduce parties and their roles and establish rapport
3. clarify purpose and agenda
4. check information and forma firm base on which to negotiate

Question 7

what 5 points should be done during the proposition phase

Answer 7

1. present proposal - opening offer
2. evaluate responses - counter offer
3. prioritise issues
4. communicate openly and clearly
5. listen and read non-verbal cues

Question 8

what 4 points should be done during the bargaining phase

Answer 8

1. Be prepared for trade-offs
2. try to link issues to gain agreement
3. Protect the non-negotiables
4. do not give something for nothing

Question 9

what 2 points should be done during the agreement phase

Answer 9

1. review and document what has been agreed to avoid misunderstandings
2. Schedule further actions if required and agree next steps

Question 10

what 3 points should be done during the review phase

Answer 10

1. Communicate outcome to all relevant stakeholders
2. Implement as agreed
3. Conduct lessons learned: - - About the problem?
   - About the other party?
   - About our negotiating skills - what went right and what went wrong?
   - What can we do better next time?

Question 11

what are the 5 types of negotiating power

Answer 11

1. Reward: Ability to dispense rewards to entice the other party, such as financial incentives
2. Penalty: Threat of taking something away if one party does not agree to the desires of the other
3. Formal: One party has authority over the other (e.g. hierarchical position)
4. Expert: Experience that provides an advantage through increased credibility and knowledge
5. Referent: The ability to call upon a higher authority, such as the sponsor.

Question 12

what are 6 types of negotiation tactic

Answer 12

1. deadlines - ensure appropriate contingency built into plan
2. good guy/bad guy - check differences between parties and encourage consensus
3. limited authority - ask to deal with higher authority or test limits of negotiator
4. auction - if customer has better option probe for negatives and demonstrate you’re better option
5. silence - restate offer and ask for clarification
6. salami technique (nibbles) - ensure all requirements are clear and understood before any individual agreement is reached. strive for collective agreement on all items together

Question 13

what are 6 common pitfalls in negotiation

Answer 13

1. being ill-prepared
2. opening negotiations with an unreasonable offer
3. not taking “time-outs” when negotiations are unduly protracted
4. rushing negotiation in order to secure a quick agreement
5. failing to walk away if an agreement is not possible (without breaching tolerances)
6. panicking.

Question 14

what are 5 desired negotiation skills

Answer 14

1. an ability to set goals and limits
2. emotional control
3. excellent listening skills
4. excellent verbal communication skills
5. knowledge of when and how to close the negotiation.