Negotiation skills from the PM's perspective - Revision history

Tkokotas at 17:35, 16 November 2018

2018-11-16T17:35:49Z

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			''Developed by Gustavo Pagliari Valerio dos Santos''


	=Abstract=		=Abstract=
	The term “Negotiation” comprises a few distinct definitions formally accepted. Some of those can be related to diverse contexts, such as conflicts solving, reallocation of resources, or contract agreements. For instance, Frank Acuff describes it as ''the process of communicating back and forth for the purpose of reaching a joint agreement about differing needs or ideas''<ref> Acuff, F.L. (2008). ''How to negotiate anything with anyone anywhere around the world''. New York: AMACOM</ref>. The negotiations involved in a contract bidding process, for example, would lie in this definition.		The term “Negotiation” comprises a few distinct definitions formally accepted. Some of those can be related to diverse contexts, such as conflicts solving, reallocation of resources, or contract agreements. For instance, Frank Acuff describes it as ''the process of communicating back and forth for the purpose of reaching a joint agreement about differing needs or ideas''<ref> Acuff, F.L. (2008). ''How to negotiate anything with anyone anywhere around the world''. New York: AMACOM</ref>. The negotiations involved in a contract bidding process, for example, would lie in this definition.

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Annotated Bibliography

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	''' Project Management Institute (2013)'''		''' Project Management Institute (2013)'''

	''''		''The publication is an official guide to project managers, which explain the main aspects comprised within their overall scope in a project, as well as significant guidelines to approach its distinct stages. As for the current article, it is also suitable for externals or further stakeholders to understand the project framework and eventually devise their own strategy of approach towards that based on the project manager's perspective.''

	=References=		=References=

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Annotated Bibliography

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	=Annotated Bibliography=		=Annotated Bibliography=
	*'''Craddock, W. T. (2010)~~. Five things every project manager should know about negotiation. Paper presented at PMI® Global Congress 2010—North America, Washington, DC. Newtown Square, PA: Project Management Institute.~~'''		'''Craddock, W. T. (2010)'''

	''The article provides an overview and understanding of the distinct meanings comprised in the concept of “negotiation”, and further describes the 5 main aspects to be considered by a project manager in a negotiation process. It provides valuable input applicable for the whole of a project framework, and not exclusively for the bidding stage, according to mostly academic based sources, as well as technical ones, such as the PMBOK from the Project Management Institute, demonstrating its reliability as a reference for both academic and practical purposes.''		''The article provides an overview and understanding of the distinct meanings comprised in the concept of “negotiation”, and further describes the 5 main aspects to be considered by a project manager in a negotiation process. It provides valuable input applicable for the whole of a project framework, and not exclusively for the bidding stage, according to mostly academic based sources, as well as technical ones, such as the PMBOK from the Project Management Institute, demonstrating its reliability as a reference for both academic and practical purposes.''

	*'''Project Management Institute (2008)~~. ''The Standard for Program Management''. PMI Publications~~'''
			'''Project Management Institute (2008)'''

	''While the reference to negotiation aspects are rather limited in the publication, it is fundamentally a manual of standards and practices to be followed in program management. Not only the core definitions comprised in the process are provided, but also frameworks and procedures related to all main stages of a program are presented and detailed.''		''While the reference to negotiation aspects are rather limited in the publication, it is fundamentally a manual of standards and practices to be followed in program management. Not only the core definitions comprised in the process are provided, but also frameworks and procedures related to all main stages of a program are presented and detailed.''

	*''' Project Management Institute (2013)~~. A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 5th Edition. PMI Publications.~~'''
			''' Project Management Institute (2013)'''

	''''		''''

	=References=		=References=

S176056 at 17:12, 26 February 2018

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	=Annotated Bibliography=		=Annotated Bibliography=
	'''Craddock, W. T. (2010)~~:''' The article provides an overview and understanding of the distinct meanings comprised in the concept of “negotiation”, and further describes the 5 main aspects to be considered by a~~ project manager ~~in a~~ negotiation ~~process~~. ~~It provides valuable input applicable for the whole of a project framework~~, ~~and not exclusively for the bidding stage~~, ~~according to mostly academic based sources~~, ~~as well as technical ones, such as the PMBOK from the~~ Project Management Institute~~, demonstrating its reliability as a reference for both academic and practical purposes~~.		*'''Craddock, W. T. (2010). Five things every project manager should know about negotiation. Paper presented at PMI® Global Congress 2010—North America, Washington, DC. Newtown Square, PA: Project Management Institute.'''

	'''Project Management Institute (2008):''' While the reference to negotiation aspects are rather limited in the publication, it is fundamentally a manual of standards and practices to be followed in program management. Not only the core definitions comprised in the process are provided, but also frameworks and procedures related to all main stages of a program are presented and detailed.		''The article provides an overview and understanding of the distinct meanings comprised in the concept of “negotiation”, and further describes the 5 main aspects to be considered by a project manager in a negotiation process. It provides valuable input applicable for the whole of a project framework, and not exclusively for the bidding stage, according to mostly academic based sources, as well as technical ones, such as the PMBOK from the Project Management Institute, demonstrating its reliability as a reference for both academic and practical purposes.''

			*'''Project Management Institute (2008). ''The Standard for Program Management''. PMI Publications'''

			''While the reference to negotiation aspects are rather limited in the publication, it is fundamentally a manual of standards and practices to be followed in program management. Not only the core definitions comprised in the process are provided, but also frameworks and procedures related to all main stages of a program are presented and detailed.''

			*''' Project Management Institute (2013). A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 5th Edition. PMI Publications.'''

			''''
	=References=		=References=

S176056 at 01:14, 26 February 2018

2018-02-26T01:14:09Z

← Older revision		Revision as of 01:14, 26 February 2018
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	=Abstract=		=Abstract=
	The term “Negotiation” comprises a few distinct definitions formally accepted. Some of those can be related to diverse contexts, such as conflicts solving, reallocation of resources, or contract agreements. For instance, Frank Acuff describes it as ~~“the~~ process of communicating back and forth for the purpose of reaching a joint agreement about differing needs or ~~ideas”~~<ref> Acuff, F.L. (2008.). ~~‘’How~~ to negotiate anything with anyone anywhere around the ~~world’’~~. New York: AMACOM</ref>. The negotiations involved in a contract bidding process, for example, would lie in this definition.		The term “Negotiation” comprises a few distinct definitions formally accepted. Some of those can be related to diverse contexts, such as conflicts solving, reallocation of resources, or contract agreements. For instance, Frank Acuff describes it as ''the process of communicating back and forth for the purpose of reaching a joint agreement about differing needs or ideas''<ref> Acuff, F.L. (2008). ''How to negotiate anything with anyone anywhere around the world''. New York: AMACOM</ref>. The negotiations involved in a contract bidding process, for example, would lie in this definition.

	The procurement process of a project or program typically involves in its initial steps the performance of bidder conferences, in which potential sellers are gathered in order to understand the main proposal and future contract requirements. The outcome of such meetings for the contractor is a clearer overview of the most proficient sellers, which are therefore given priority during the contract bidding process<ref> Project Management Institute (2008). ~~‘’The~~ Standard for Program ~~Management’’~~. PMI Publications</ref>.		The procurement process of a project or program typically involves in its initial steps the performance of bidder conferences, in which potential sellers are gathered in order to understand the main proposal and future contract requirements. The outcome of such meetings for the contractor is a clearer overview of the most proficient sellers, which are therefore given priority during the contract bidding process<ref> Project Management Institute (2008). ''The Standard for Program Management''. PMI Publications</ref>.

	In this regard, not only understanding the procurement process from the contractor’s perspective, but also developing appropriate negotiation skills is essential for a Project Manager to optimise their chances of obtaining contracts as a seller or service provider. For instance, being able to ask relevant questions about the concerned project or program may indicate experience and professionalism. Likewise, building up traditional relationships with contractors shall be prospective operationally wise in the long term. Establishing a proper negotiation strategy is, therefore, perceived to be significant for a project manager to increase their opportunities of acquiring contracts as a service provider.		In this regard, not only understanding the procurement process from the contractor’s perspective, but also developing appropriate negotiation skills is essential for a Project Manager to optimise their chances of obtaining contracts as a seller or service provider. For instance, being able to ask relevant questions about the concerned project or program may indicate experience and professionalism. Likewise, building up traditional relationships with contractors shall be prospective operationally wise in the long term. Establishing a proper negotiation strategy is, therefore, perceived to be significant for a project manager to increase their opportunities of acquiring contracts as a service provider.
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	This cooperative mindset has led most of the biggest ventures to set a new approach for making business, on which the competition was replaced by an idea of creating greater values together.		This cooperative mindset has led most of the biggest ventures to set a new approach for making business, on which the competition was replaced by an idea of creating greater values together.

	This innovative strategy is justified by three main factors<ref> Negotiation Experts (2003) ~~‘’Building~~ Trust In Your Business Negotiation ~~Relationships’’~~. Harvard Business Essentials ‘Negotiation’ Harvard Business School Press</ref>:		This innovative strategy is justified by three main factors<ref> Negotiation Experts (2003) ''Building Trust In Your Business Negotiation Relationships''. Harvard Business Essentials ‘Negotiation’ Harvard Business School Press</ref>:


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	=Procurement Process=		=Procurement Process=
	In general, the procurement process for a project is conducted through the application of the following instruments <ref> Project Management Institute (2013). ~~‘’A~~ Guide to the Project Management Body of Knowledge (PMBOK® Guide)’’, 5th Edition. PMI Publications. </ref>:		In general, the procurement process for a project is conducted through the application of the following instruments <ref> Project Management Institute (2013). ''A Guide to the Project Management Body of Knowledge (PMBOK® Guide)'', 5th Edition. PMI Publications. </ref>:


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	=Discussion=		=Discussion=
	There are two main types of negotiations: distributive and integrative<ref> Craddock, W. T. (2010). ~~‘’Five~~ things every project manager should know about ~~negotiation’’~~. Paper presented at PMI® Global Congress 2010—North America, Washington, DC. Newtown Square, PA: Project Management Institute.</ref>. The first one refers to a process on which the main objective of both involved parts is to maximize their resources or benefits from the final agreement. It is a “win-lose” operation, where at least one of the sides shall stay under an unprofitable or even disadvantageous condition.		There are two main types of negotiations: distributive and integrative<ref> Craddock, W. T. (2010). ''Five things every project manager should know about negotiation''. Paper presented at PMI® Global Congress 2010—North America, Washington, DC. Newtown Square, PA: Project Management Institute.</ref>. The first one refers to a process on which the main objective of both involved parts is to maximize their resources or benefits from the final agreement. It is a “win-lose” operation, where at least one of the sides shall stay under an unprofitable or even disadvantageous condition.

	The second case is divided in two stages. First, the involved parts seek for additional elements that feature some potential of benefit for the overall process. In this regard, one of the sides might hold assets that represent little significance to them, but high value for the other. After identifying such factors, the second step takes place, and then the resources are distributed between the parts. This phase is, in fact, less representative in the bidding context, as such distribution would be replaced by the provision of services from the contracted part and the corresponding payment and availability of agreed conditions from the contractor. Anyhow, a negotiation process under such setup features a potentially higher value than a distributive one, due to its “win-win” or collaborative characteristic.		The second case is divided in two stages. First, the involved parts seek for additional elements that feature some potential of benefit for the overall process. In this regard, one of the sides might hold assets that represent little significance to them, but high value for the other. After identifying such factors, the second step takes place, and then the resources are distributed between the parts. This phase is, in fact, less representative in the bidding context, as such distribution would be replaced by the provision of services from the contracted part and the corresponding payment and availability of agreed conditions from the contractor. Anyhow, a negotiation process under such setup features a potentially higher value than a distributive one, due to its “win-win” or collaborative characteristic.

	A third negotiation structure, defined as accommodative by Lewicki, Barry and Saunders, also presents relevance for the current context. In this case, the project manager would voluntarily stay under a losing position against a winning position of the contractor<ref> Lewicki, R.J., Barry, B., & Saunders, D.M. (2010). ~~‘’Negotiation’’~~ (6th ed.). New York: McGraw-Hill/Irwin</ref>. While such agreement might seem contradictory or unwise for a single case project, it is nonetheless perceived as an effective strategy for building up a long-term relationship with the other part, therefore increasing chances of achieving further contracts with less effort.		A third negotiation structure, defined as accommodative by Lewicki, Barry and Saunders, also presents relevance for the current context. In this case, the project manager would voluntarily stay under a losing position against a winning position of the contractor<ref> Lewicki, R.J., Barry, B., & Saunders, D.M. (2010). ''Negotiation'' (6th ed.). New York: McGraw-Hill/Irwin</ref>. While such agreement might seem contradictory or unwise for a single case project, it is nonetheless perceived as an effective strategy for building up a long-term relationship with the other part, therefore increasing chances of achieving further contracts with less effort.

	Following these considerations, the form to treat a negotiation process is decisive on defining the characteristic of the accord. Whether one of the involved parts does not approach the deal from a visionary and long-term perspective, attributing little importance to the relation with the counterpart, it becomes prone to be limited to a single occasion already from the beginning. A negotiator that does not target the relationship with the client tries to obtain as much as possible from the immediate resources available, lying therefore in a distributive condition, whereas the one seeking for a long-term relation aims at an either integrative or even accommodative procedure.		Following these considerations, the form to treat a negotiation process is decisive on defining the characteristic of the accord. Whether one of the involved parts does not approach the deal from a visionary and long-term perspective, attributing little importance to the relation with the counterpart, it becomes prone to be limited to a single occasion already from the beginning. A negotiator that does not target the relationship with the client tries to obtain as much as possible from the immediate resources available, lying therefore in a distributive condition, whereas the one seeking for a long-term relation aims at an either integrative or even accommodative procedure.
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	=Annotated Bibliography=		=Annotated Bibliography=
	~~PMI Institute~~: The article provides an overview and understanding of the distinct meanings comprised in the concept of “negotiation”, and further describes the 5 main aspects to be considered by a project manager in a negotiation process. It provides valuable input applicable for the whole of a project framework, and not exclusively for the bidding stage, according to mostly academic based sources, as well as technical ones, such as the PMBOK from the Project Management Institute, demonstrating its reliability as a reference for both academic and practical purposes.		'''Craddock, W. T. (2010):''' The article provides an overview and understanding of the distinct meanings comprised in the concept of “negotiation”, and further describes the 5 main aspects to be considered by a project manager in a negotiation process. It provides valuable input applicable for the whole of a project framework, and not exclusively for the bidding stage, according to mostly academic based sources, as well as technical ones, such as the PMBOK from the Project Management Institute, demonstrating its reliability as a reference for both academic and practical purposes.

	~~The Standard for Program~~ Management: While the reference to negotiation aspects are rather limited in the publication, it is fundamentally a manual of standards and practices to be followed in program management. Not only the core definitions comprised in the process are provided, but also frameworks and procedures related to all main stages of a program are presented and detailed.		'''Project Management Institute (2008):''' While the reference to negotiation aspects are rather limited in the publication, it is fundamentally a manual of standards and practices to be followed in program management. Not only the core definitions comprised in the process are provided, but also frameworks and procedures related to all main stages of a program are presented and detailed.
	=References=		=References=

	<references/>		<references>

	<ref name="Skills"> SkillsYouNeed (no date) ~~‘’What~~ is Negotiation?’’ [online] available at www.skillsyouneed.com/ips/negotiation.html (Accessed February 21 2018)</ref>		<ref name="Skills"> SkillsYouNeed (no date) ''What is Negotiation?'' [online] available at www.skillsyouneed.com/ips/negotiation.html (Accessed February 21 2018)</ref>

	<references/>		<references/>

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	Negotiating within a project requires the establishment of a strategy or framework at any circumstance. The same applies for negotiations during a contract bidding process. A well-structured approach in such context significantly increases the odds on succeeding.		Negotiating within a project requires the establishment of a strategy or framework at any circumstance. The same applies for negotiations during a contract bidding process. A well-structured approach in such context significantly increases the odds on succeeding.

	In general, three overall groups or stages can be defined within a negotiation structure: Planning, engagement and closing. In order to better understand each of them, the following processes are identified<ref> ~~SkillsYouNeed (no date) ‘’What is Negotiation?’’ [online] available at www.skillsyouneed.com/ips/negotiation.html (Accessed February 21 2018)~~</ref>:		In general, three overall groups or stages can be defined within a negotiation structure: Planning, engagement and closing. In order to better understand each of them, the following processes are identified<ref name="Skills"></ref>:

	==Preparation==		==Preparation==
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	In fact, project managers seen as successful negotiators are those who develop several skills from distinct fields, furthermore being able to employ them in diverse contexts, such as products and resources acquisition, services, stakeholders’ management, contract biddings, etc.		In fact, project managers seen as successful negotiators are those who develop several skills from distinct fields, furthermore being able to employ them in diverse contexts, such as products and resources acquisition, services, stakeholders’ management, contract biddings, etc.

	There are three key factors which tend to have a significant effect on the outcomes of negotiation processes and shall be given extra importance by project managers when seeking for means of developing their skills. These are the following<ref> ~~SkillsYouNeed (no date) ‘’What is Negotiation?’’ [online] available at www.skillsyouneed.com/ips/negotiation.html (Accessed February 21 2018)~~</ref>:		There are three key factors which tend to have a significant effect on the outcomes of negotiation processes and shall be given extra importance by project managers when seeking for means of developing their skills. These are the following<ref name="Skills"></ref>:

	==Attitudes==		==Attitudes==
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	The Standard for Program Management: While the reference to negotiation aspects are rather limited in the publication, it is fundamentally a manual of standards and practices to be followed in program management. Not only the core definitions comprised in the process are provided, but also frameworks and procedures related to all main stages of a program are presented and detailed.		The Standard for Program Management: While the reference to negotiation aspects are rather limited in the publication, it is fundamentally a manual of standards and practices to be followed in program management. Not only the core definitions comprised in the process are provided, but also frameworks and procedures related to all main stages of a program are presented and detailed.
	=References=		=References=

			<references/>

			<ref name="Skills"> SkillsYouNeed (no date) ‘’What is Negotiation?’’ [online] available at www.skillsyouneed.com/ips/negotiation.html (Accessed February 21 2018)</ref>

	<references/>		<references/>

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Show changes

S176056: /* Interpersonal Skills */

2018-02-21T22:23:17Z

Interpersonal Skills

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	==Interpersonal Skills==		==Interpersonal Skills==
	Besides possessing technical knowledge, it is indispensable for a project manager to have strong interpersonal skills, in order to facilitate and increase the odds of being successful in a contract bidding process, as well as in any other stage of a project lifetime. Developing a persuasive character is understood to be constructive for successfully negotiating in distinct instances and formality levels. The core of this concept lays on communication. From that, few main abilities can be listed:		Besides possessing technical knowledge, it is indispensable for a project manager to have strong interpersonal skills, in order to facilitate and increase the odds of being successful in a contract bidding process, as well as in any other stage of a project lifetime. Developing a persuasive character is understood to be constructive for successfully negotiating in distinct instances and formality levels. The core of this concept lays on communication. From that, few main abilities can be listed:
	*'Assertiveness'		*'''Assertiveness'''
	*'Dealing with difficulties'		*'''Dealing with difficulties'''
	*'Decision making'		*'''Decision making'''
	*'Effective verbalisation'		*'''Effective verbalisation'''
	*'Listening'		*'''Listening'''
	*' Problem solving'		*'''Problem solving'''
	*' Empathy and affinity building'		*'''Empathy and affinity building'''
	*' Reducing misunderstandings'		*'''Reducing misunderstandings'''

	=Discussion=		=Discussion=

S176056: /* Interpersonal Skills */

2018-02-21T22:21:07Z

Interpersonal Skills

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	==Interpersonal Skills==		==Interpersonal Skills==
			Besides possessing technical knowledge, it is indispensable for a project manager to have strong interpersonal skills, in order to facilitate and increase the odds of being successful in a contract bidding process, as well as in any other stage of a project lifetime. Developing a persuasive character is understood to be constructive for successfully negotiating in distinct instances and formality levels. The core of this concept lays on communication. From that, few main abilities can be listed:
			*'Assertiveness'
			*'Dealing with difficulties'
			*'Decision making'
			*'Effective verbalisation'
			*'Listening'
			*' Problem solving'
			*' Empathy and affinity building'
			*' Reducing misunderstandings'

	=Discussion=		=Discussion=

S176056: /* Knowledge */

2018-02-21T21:58:14Z

Knowledge

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	==Knowledge==		==Knowledge==
			It is fundamental for a project manager to go through some preparation before a negotiation process. They shall be acquainted with as much as possible from the topic in order to assure a significant participation in it. In this sense, collecting general and detailed information beforehand, as well as studying some possible paths the negotiation may take are perceived as effective practices.

	==Interpersonal Skills==		==Interpersonal Skills==