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Negotiation - Overview | PMQ D3.5a

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Negotiation - Overview | PMQ D3.5a
Overview
DifficultyBeginner
Duration4m
Students10

Description

In this video, we outline how important negotiation is for a project manager, and the different types of negotiation that may occur.

Transcript

- Negotiation. Negotiation is a core part of project management, and you'll be doing it throughout the project life cycle, formally with external parties and informally to resolve conflict or to get internal resources. In this video, we'll go through different types of negotiation, discuss the negotiation process, and end off by talking about best practice. Aside from negotiation being either internal or external, there are two types of negotiation. Competitive negotiation is all about getting the best deal regardless of the needs or interests of other parties. You can think of this as a winner takes all approach. And one, it can be very beneficial to your organization in the short term, it can lead to other parties not wanting to work with you again in the future if they feel mistreated. On the other hand, collaborative negotiation is about finding win-win solutions, satisfying all parties involved. This approach is great for long-term relationships but also may not get the total best solution for your organization in the short term. Going into a negotiation, prepare yourself by understanding the extent and type of power that both parties hold. Things like technical expertise, the size of the organization, or the formal power granted by contract. With these in mind, there are five steps to any negotiation. During the planning and preparation phase, you need to do things like gather information, set goals and tolerances, work out what the goals of both parties are. Next, you'll move into discussion introducing members of each team, agreeing an agenda and understanding critical points from all parties. Now it's time to move into bargaining by making formal proposals, prioritizing issues and making allowable trade-offs. With this done, you need to come to an agreement summarizing the outcomes, clarifying points and revisiting any actions that need to be taken. Finally, you need to review the negotiation by distributing a written record of the meeting, updating any plans with agreed actions and discussing things you've learned through the negotiation. Last up for this video, I've got a few best practice tips for you. First up, always prepare yourself and your team as much as you can. Use interest based bargaining as much as possible as collaborative negotiation is always better for the organization in the long run. Take time to make decisions, but communicate that you are doing so to manage expectations. Finally, don't be afraid to pause negotiations if you feel emotions are getting in the way. Ask for a break and come back once you feel composed. And that's it for this video. Negotiation is an important part of project management and something you'll be doing a lot of in very different circumstances. While the circumstances will change, your approach should follow a set structure to help you hone your skills and deliver value for your organization consistently.