Negotiation Skills for Business Analysts and Project Managers

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Negotiation Skills for BAs and PMs

“A good listener tries to understand thoroughly what the other person is saying. In the end he may disagree sharply, but before he disagrees, he wants to know exactly what it is he is disagreeing with.”

– Kenneth A. Wells, Guide to Good Leadership

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Let’s Talk About…

• What negotiation is • What are the best negotiation tactics• When to use negotiation tactics



What is negotiation?

• What do you think are the characteristics of a successful negotiator?

• _________________________________________________________________________________________________________________________________________________________________________________________



Negotiation

• Negotiation is a form of conflict resolution– Conflict lies not in objective reality, but in people’s perceptions – As with all conflicts, egos are involved as well as interests

• Negotiation is a method for working together to achieve mutual goals• “Negotiation is a give-and-take bargaining process that, when

conducted well, leaves all parties feeling good about the result and committed to achieving it” . . . from CORPORATE CONFLICT MANAGEMENT: Concepts and Skills, Rout and Omiko



Patterns of Negotiation

Negotiation Defined

Negotiation Patterns

Summary

I think the one lesson I have learned is that there is no substitute for paying attention.

– Diane Sawyer



Negotiations

• The purpose of negotiation is to serve your interests . . . WIIFM

• Any method of negotiation may be fairly judged by three criteria– It produces a wise agreement if agreement is possible

• A wise agreement– Meets the legitimate interests of each side to the extent possible– Resolves conflicting interests fairly– Is durable– Takes community interests into account

• An unwise agreement is arguing over positions

– It is efficient– It improves or at least does not damage the relationship between the parties



What Cannot Be Negotiated?• We need to know what can and what cannot be negotiated

• The results of analysis cannot be negotiated– E.g., estimate, solution, recommendation

• Risk cannot be negotiated– It exists– Impact of risk might be negotiable

• History cannot be negotiated



What Can Be Negotiated?For the BA . . .• Optimum reporting periods, i.e., should status be

reported daily, weekly, biweekly or monthly? • How detailed should the reports be? • Who should receive what metrics?• And, ____________________________________



What Can Be Negotiated?For the PM . . .• Goals, objectives, milestones, deliverables• Tradeoffs in Scope, Time, Cost• Staff assignments• Procurement documents• And, ____________________________________



When To Negotiate• All the time

– Negotiate the best solution – Determine features to be included in the next release– Where you are going for lunch– The latest line on the basketball game

• Negotiate with– Peers– Teammates– Functional Managers– Other entities (projects, teams, organizations)




Negotiation Defined


Summary

A good negotiation is one where the parties depart committed to their agreements.

– Steven Cohen



Patterns To Avoid• Zero-sum game

– Playing for all the marbles– My way or the highway

• Married to the solution – No alternative solutions

• Distributive negotiation – Negotiation is which the goal is to beat the opposition

• Getting to “B”– Overestimating or overstating the position to allow room to come back

Management asks for 3 weeks Development team estimates 8 weeks

Both expect the results of negotiation to be 5 weeks



BATNA• Best Alternative To a Negotiated Agreement (BATNA)

• When the other side has the stronger negotiating position– Richer, better connected– Larger staff and resources

• Brainstorm alternatives first

• Trip wire– A red flag indicator set to allow reserve to BATNA– Before accepting any agreement worse that the trip wire, take a break and re-examine the situation

The better your BATNA, the greater your power



Problems with the Bottom Line• Bottom line

– Lowest price willing to accept . . . Walk Away Price (WAP)– Highest price willing to pay– A position not to be changed– Assists in keeping the negotiator from overstepping

• Protects against accepting a bad agreement– Limits authority of agents

• Problems– Limits ability to benefit from lessons during negotiation

• Forces rejection of all possibilities– Inhibits imagination

• Alternate means that might be better – Typically a bottom line is set too high



Collaborative (Win-Win) Negotiation• Separate the people from the problem

– Parties are not “against” each other– Parties are meeting to solve a mutual problem

• Distinguish interests from positions– What each party wants is the position, why it is wanted is the interest – Ask “Why do they want that?” instead of “What do they want?”

• Good personal communication habits aid in all negotiations– Active listening . . . Head, heart, legs– Miller’s Law . . . 7 + or – 2



Collaborative Negotiating Guidelines• Negotiate in a consistent manner

• Separate the people from the problem– Recognize the emotions on both sides of the negotiation– Listen actively and communicate your views clearly

• Focus on interests, not positions– Interest: a stake or advantage you seek to improve or protect during a negotiation

• E.g., getting a good budget, due date– Position: stance you adopt during the course of a negotiation to further your interests

• E.g., We can’t go past April 15th

• Invent options for mutual gain– Explore creative ideas . . . 3 questions

• Insist on using objective (measurable) criteria for defining the basis of agreement

• Summarize and specify the basis of any agreements



Negotiation Preparation1. Determine what can be traded

2. Determine what it is you want to get out of the negotiations (maximum)– Know why you want it (your interests)

3. Determine what the other part wants to get – Know why they want it (their interests)

4. Determine the least you are willing to accept (minimum)– What you are willing to live with– The point that invokes the “implied threat”– Determine the BATNA



Negotiation Preparation (continued)

5. Prepare documentation to support your side of the negotiation

6. Be prepared to walk away from the table if– The discussions become emotional or personal (take a break)– There is no movement in the negotiations for X minutes (5 –10)– You cannot get the minimum requested

7. Look for common ground for creative solutions



Triangle TalkCommon ground

(Propose action in a way they can accept)

(Find out what they want and make them feel heard)

Their interests(Know exactly what you want)

Your interest#1

#2

#3

• People are almost always more open and receptive when you speak to the issues in the order shown above



Examples of Triangle Talk• “I understand that you feel our first concern should be cost-effectiveness

(their idea), and I agree (common ground). I’ve found a new design that’s in line with that priority (your idea).”

• “Holding the seminar out of town (their idea) has created a lot of enthusiasm (common ground). I’d like to tell you about one place in particular that I’d recommend (your idea).”

“What people say or do to you is not as important as how you respond to it. Triangle Talk lets you choose how you respond, rather than operating on

automatic.”



Developing Triangle Talk• Practice, practice, practice

• Every day, practice applying the three steps to some situation

• Begin with people toward whom you feel neutral, and work up to those for whom you have strong feelings

• Watch your results– Conduct self-checks: What did I do (or not do) to make this happen (or not

happen)?– Lessons learned



Negotiating

• Regardless of how well the project runs there will be negotiations– In fact, successful negotiations often mean a successful

project

• Negotiating takes planning as well as execution• Negotiation is a key interpersonal skill in the PMBOK,

5th edition and the BABOK, 2nd edition



NEGOTIATION PLANNING WORKSHEET

Project Name: ________________________Change Request #: ____________________ Negotiation Content: (What are we negotiating about?) Negotiation Context: (Cultural, regional, local setting and politics) Negotiation Process: (That we plan to follow regarding this requested change) Involved Parties and Roles: (directly and indirectly involved stakeholders, individuals)




Negotiation Defined


Summary

He who hesitates is interrupted.

– Franklin P. Jones



To Sum Up… What to look for:

When can all required parties make it? Where can we meet? Who should attend, and to do what? What is the agenda? Travel? Consider personal characteristics . . . thinking styles, energy periods, etc. Space, type, and what is enough

Let’s make reality as effective as it can be

It’s likely that reality will be somewhere between the beach and the castle



Keys to Success• Wise agreements satisfy the parties' interests and are fair and lasting. ... of the other

parties' interests and perceptions, and of the existing options. ... in differing interpretations of the facts, it is crucial for both sides to understand the other's viewpoint. [Fisher and Ury, Getting to Yes]

• You just can't go into a negotiation on the seat of your pants. You have to put yourself in the other person's shoes, understand their needs so you can get what you want. [Gerald Nierenberg]

• You want to cover a broad range of bargaining chips. The greater the flexibility, the greater the chance of a successful negotiation.[Steven Cohen]



Applying This to Your Job



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Negotiation Skills for Business Analysts and Project Managers

Leadership & Management

Transcript of Negotiation Skills for Business Analysts and Project Managers