7 Negotiation and Partnering.ppt

Conflict and Negotiation Overview Operational Definitions Negotiation Facilitating PM Partnering Conflict Conflict and Negotiation Conflict has been defined as “the process which begins when one party perceives that the other has frustrated, or is about to frustrate, some concern of his” Conflict can play a creative role in the planning process Debate over the proper technical approach to a problem often generates a collaborative solution that is superior to any solution originally proposed Conflict often educates individuals and groups about the goals/objectives of other individuals and groups The Nature of Negotiation The favored technique for resolving conflict is negotiation Negotiation is “the process through which two or more parties seek an acceptable rate of exchange for items they own or control” Firms should view conflicts within the organization as conflicts between allies, not opponents Facilitating the Integration of Activities Lateral Relations allow decisions to be made horizontally across lines of authority Because each area has its own goals, integrating activities of two or more units is certain to produce conflicts These conflicts may be resolved by negotiating a solution, if one exists, that produces gains (or minimizes losses) for all parties Negotiating a Resolution Approaching intraproject conflicts with a desire to win a victory over the other parties is inappropriate. The project manager should remember that he will be negotiating with project stakeholders many times in the future The proper objective should be to optimize the outcome in terms of overall organizational goals Partnering,Chartering, and Change Three situations commonly arise during projects that require the highest level of negotiating skill the project manager can muster: The use of subcontractors The use of input from two or more functional units to design and develop the project’s mission The management of changes ordered in the project’s deliverables and/or priorities