Negotiation in Project Management:

Negotiation in Project Management:

Negotiation is a process by which people get into an agreement by avoiding arguments. A good negotiator should always look for a Win – Win situation. Negotiation is the important management skill for any Project manager as they spent most of their time in communication with stakeholders.

Negotiations can occur at any point in the project’s lifecycle and can be formal or informal.

Some basic negotiation skills are

1. High Emotional Intelligence
2. Good Listening and Communication
3. Planning Negotiation Strategy

Project Managers’ Golden Rules to begin as a negotiator

You don’t get what you deserve in business; you get what you negotiate for.

Negotiation success is directly related to the amount preparation that precedes the negotiation.

Prepare Ahead of Time and Know Exactly What You Want. You should have a communication plan before starting the negotiation.

Conflicts are inevitable in meaningful negotiation. People who want to avoid conflict is mostly the loser in any Negotiation.

A good negotiation starts with building rapport with the other party.

Negotiation Processes:

The process of negotiation can be divided into the following phases:

1. Planning: The gathering of all relevant information required for the discussion.
2. Debate: The key issues are examined and discussed here.
3. Proposal: The development of the proposal as a solution to the problem presented
4. Revision: This can include negotiating compromises prior to formalizing an agreement.

Achieving a Win-Win Outcome:

Almost all negotiations yield the best results when both parties leave with a positive feeling about achieving their objectives i.e., is a win-win outcome.

This ideal situation can be accomplished by the four keys:

1. Avoid focusing your negotiation on a single issue.
2. Don’t assume you understand the other party’s requirements.
3. Recognize that the other party does not have the same needs and desires as you.
4. Believe point number two in your heart.

Some Successful Business Negotiation Strategies:

• Be always ready.
• Listen and understand the issues of other party’s issues and their point of view.
• Begin the negotiation by making a highball or lowball offer.
• Set a deadline for your offer.
• Be respectful and professional throughout the
• Show that you’re paying attention by using mirroring.
• Body language can be used to send messages.
• Recognize the dynamics of the deal.
• The best alternative for a negotiated agreement should be accepted.
• You should be ready to “play poker” and to walk
• Avoid using the unwise tactic of “continuous conceding” when
• Don’t focus only on the opportunity in front of you and ignore other
• Don’t get too focused on a single issue.
• Determine who really makes the
• Never take a deal at face value
• Make the proper inquiries.
• Create a Letter of Intent or Term Sheet to represent your agreement.
• Obtain the assistance of the best advisors and attorneys.
• Always create the initial version of the contract.
• Remember that time is the enemy of many deals.
• Always Strive for a win-win situation.