How to Negotiate: The Basics of Negotiation

TL;DR

Project managers need to be skilled negotiators, and negotiation skills are now explicitly included in the PMI's examination content for the PMP qualification.

Transcript

project managers have always needed to be able to negotiate it's part of our job we're negotiating with stakeholders with ago she ating with our sponsor our boss our clients we're negotiating with suppliers and contractors and consultants and nine years it always been a part of our role but it is increasingly being recognized by important bodies li... Read More

Key Insights

• 🏆 Negotiation is a fundamental skill for project managers, and it is now explicitly recognized and tested for in the PMP qualification exams.
• 🤔 The negotiation process consists of preparation, opening, bargaining, closing, and follow-up stages, each requiring strategic thinking and effective communication.
• 👨‍🔬 Project managers must prepare by defining their goals, researching the context, and developing a negotiating strategy and tactics.
• 🏛️ Building rapport, checking authority, and sharing ideal outcomes are important aspects of the opening stage in a negotiation.
• 💱 The bargaining stage involves exchanging offers, counteroffers, concessions, and finding a mutually agreeable agreement.
• 💄 The closing stage requires summarizing progress, ensuring all issues are covered, making a trial close, and making a formal offer.
• 📜 Following up on the negotiation is crucial, including documenting the agreement and fulfilling commitments.

Questions & Answers

Q: Why is negotiation an important skill for project managers?

Negotiation is crucial for project managers as it allows them to find solutions that satisfy all parties involved. It helps in reaching favorable agreements, managing relationships, and achieving project objectives.

Q: What factors should project managers consider during the preparation stage of negotiation?

Project managers should consider the scope of the agreement, define their goals, determine acceptable outcomes, know their BATNA (Best Alternative to a Negotiated Agreement), conduct research on the context and players involved, and develop a negotiating strategy and tactics.

Q: What are the key components of the opening stage in a negotiation?

The opening stage of a negotiation involves making a good impression, building rapport, checking the authority of the other person, agreeing on the meeting basis and ground rules, knowing each party's ideal outcomes, and sharing their ideal outcome first.

Q: How can project managers close a negotiation successfully?

During the closing stage, project managers should summarize the progress, ensure all issues have been covered, make trial closes to gauge agreement, make a formal offer, and confirm and record the decision. It is important to avoid introducing new facts or discussing anything unrelated to the negotiation.

Summary & Key Takeaways

• Negotiation is an essential part of a project manager's role, involving stakeholders, sponsors, clients, suppliers, and more.

• The negotiation process consists of preparation, opening, bargaining, closing, and follow-up stages.

• To prepare for a negotiation, project managers must define their goals, research the context, and develop a negotiating strategy.