ch. 6: conflict and negotiation most conflicts have their roots in uncertainty, and negotiation is a...
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Ch. 6: Conflict and Negotiation
Most conflicts have their roots in Most conflicts have their roots in uncertainty, and negotiation is a uncertainty, and negotiation is a way of managing the resultant way of managing the resultant riskrisk
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Ch. 6.0: A Good Way to Understand Conflict
Conflict is a process which begins when one party perceives that the other party has frustrated some concern of his/her
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Ch. 6.0: When Is a Conflict Resolved?
When the level of frustration has been lowered to the point where no action against the other party is being contemplated
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Ch. 6.1: Two Definitions of Negotiation Negotiation is a process through
which the parties seek an acceptable rate of exchange for items they own or control
Negotiation is an endeavor that focuses on gaining the favor of people from whom we want things
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Ch. 6.1: Pareto-optimal Solution
A solution, such that no party can be made better without making another party worse off by the same amount or more (the antithesis of a win/win situation)
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Ch. 6.2: Partnering
Partnering is a method of transforming contractual relationships into a cohesive, cooperative project team with a single set of goals
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Ch. 6.2: Multi-step Process for Building Partnered Projects
Commitment Four part agreement:
Joint progress evaluation Problem resolution method Continuous improvement goals Joint review at project termination
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Ch. 6.2: Project Charter
Written agreement between PM, senior management and functional managers, committing resources and people to the project
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Ch. 6.2: A Charter Is a Signed Commitment To:
Meet design intent Complete contract without the
need for litigation Finish the project on schedule Keep cost growth equal or below a
predetermined amount
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Ch. 6.2: Scope Changes Are Caused By:
Technological uncertainty When the project team learns
more about the nature of the deliverable
A mandate
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Ch. 6.2: Conflicting Priorities High priority projects: currently
supported by senior management
Lower priority projects: should be done if time and resources permit
Mandates: must be done immediately
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Ch. 6.3: Conflict Sources Schedules Priorities Staff and labor requirement Technical factors Administrative procedures Cost estimate Personality conflicts
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Ch. 6.3: The Three Fundamental Conflict Categories
Different groups with different goals
Who makes decisions Interpersonal conflicts
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Ch. 6.3: Conflict and the Project Life Cycle (PLC)
The project life cycle (PLC) Nature of conflicts in the PLC Linkage of PLC with conflict
categories
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Ch. 6.3: Four Phases of Project Life Cycle As Seen By:
Phase
Senior Management
Thambain and Wilemon
Adams and Barndt
I Bootleg work Project formation
Concept
II Aggregation of resources
Buildup Plan
III Lions share of work
Main program
Execute
IV Products to client
Phase out Terminate
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Ch. 6.3: Personality Clashes
Senior Management PM Client
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Ch. 6.3: Project Manager Vs. Functional Manager Conflicts
PM concern: project
FM concern: day-to-day operations
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Ch. 6.3: Who Decides in a Matrix Organization?
PM: schedule and flow of work
FM: technical decisions, manpower
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Ch. 6.3: When Top Management Fixes Time and Cost Too Tightly
1. Underestimation of cost and time
2. PM tries to pass cost and time squeeze on to FM
3. FM complains to senior management that he/she cannot meet cost and time goals
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Ch. 6.3: Whose Priorities are Ruling? Functional manager Client Project team
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Ch. 6.3 Methods for Settling Project Priority Conflicts
1. Priority ranking through PS model2. Priority ranking through senior
management
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Ch. 6.3: The“Who” and “What” of Matrix Organization Conflicts
Who What
Project team and client
Technical problems
Senior Management (*)
a) Wants PM to create communication rules
b) Wants to dictate who reports to whom
(*) Good example of senior management wanting to have their cake AND eat it!
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Ch. 6.3: Conflicts in the Different Phases of the PLCPhase Conflict Source
Formation
Confusion of setting up project
Buildup Priorities, schedules and administrative procedures
Main PERT critical path
Phase-out
Schedules, cost overrun
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Ch. 6.3: Fundamental Issues for Conflict during Project Formation
1. Technical objectives2. Commitment of resources3. Priority4. Organizational structure
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Ch. 6.3: Questions Leading to Conflict during Project Formation
Which of the functional areas will be needed to accomplish project tasks?
What will be the required level of involvement of each of the functional areas?
How will conflicts over resources/facility usage between this and other projects be settled?
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Ch. 6.3: More Questions Leading to Conflict during Project Formation
What about those resource/facility issues between the project and the routine work in the functional departments?
Who has the authority to decide the technical, scheduling, personnel and cost issues?
How will changes in the parent organization’s priorities be communicated to everyone involved?
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Relative strength of
manager
Projectoriented
Matrix Functional
Type of organization
PMFM
Ch. 6.3: Who Will Win the Argument?
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Ch. 6.3: The “Height” of Conflict during Project Buildup
Issue Rivals
Technical approach
PM Vs. FM
Handicap PM: generalist, but occasionally has a bright technical ideaFM: has generally more technical expertise
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Ch. 6.3: How a Main Phase Scheduling Conflict Develops1) Some project activity runs into
trouble2) Some tasks dependent on (1) will
be delayed3) (2) will delay the entire project4) PM tries to prevent (3) from
happening by requesting resources from the FM
5) PM vs. FM
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Ch. 6.3:Environment for Conflict during Phaseout Schedule slippage consequences from
main phase felt strongly during phase out
Firm deadlines hectic environment Substantial cost overruns ignored to
meet deadline potential conflict with senior management
Functional groups needed to support project team to meet deadlines potential conflict with FM
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Ch. 6.3: Personality Conflicts During Project Phaseout
Pressure to complete project Anxiety to leave project Distribution of project resources at
project termination Fresh starting projects Vs. Phasing
out projects
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Ch. 6.3: Discipline Oriented Vs. Problem Oriented Individual
“He/she will do whatever he/she thinks is right to get
his/her own job done, whether or not it is good for the
company or anyone else”
Pelled and Adler, 1994
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Ch. 6.3: Successful Handling of Conflicts by PM
Ability to reduce and resolve conflict in ways to support achievement of
project’s goals
Primary tool:
Negotiation
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Ch. 6.3: Preview and Reading for Ch. 6.4
Pinto and Kharbanda (1995) – conflict resolution in the spirit of win-win negotiation
Dyer (1987) – focus on conflict between team members
Afzalur (1992) – general work on win-win negotiating
Similarities between the confrontation-problem solving technique and win-win
negotiation:
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Ch. 6.4 Negotiations NOT covered in Section 6.4 President and Congress NFL player’s agent and team Real-estate buyer and seller Divorce Collective bargaining agreement Tourist and peddler
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Ch. 6.4: Key to Understanding the Nature of Negotiating
NOT: whether or not a task will be undertaken or a
deliverable produced
BUT: project design of the deliverable and/or how the design will be achieved, by whom, and
at what cost
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Ch. 6.4: Main Requirement for Conflict Reduction/Resolution
Conflict is to be settled without irreparable harm to the project’s objectives
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Ch. 6.4: Second Requirement for Conflict Reduction/Resolution
Honesty between negotiators
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Ch. 6.4: The Win/Win Solution
Seek solutions to the conflict that not only satisfy an individual’s own needs, but also satisfy the needs of other parties-at-interest and the parent organization
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Ch. 6.4: Principled Negotiation
1. Separate people from problem2. Focus on interests, not positions
3. Before trying to reach agreement, invent options for mutual gain
4. Insist on using objective criteria
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Ch. 6.4: How to Separate People from Problems
Carefully define the substantive problem
Then, let everyone work on the problem – not on the person
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Ch. 6.4: How to Focus on Interest, not Position
WRONG: Focus on position
PM: “I need this subassembly by November 15”FM:” I can’t deliver it before February 1 next year”
RIGHT: Focus on interest
FM and PM: “Let’s talk about the schedule for this subassembly.”
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Ch. 6.4: Two Examples of Negotiating Positions
1. Real estate bidder, assuming a future property value:“I will not pay more than 1 million for that property.”
2. Assume that a workgroup’s current workload will not change, PM states:“We cannot deliver this subassembly before February 1.”
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Ch. 6.4: Shifting Focus from Position to Interest
Real estate bidders true interest:
Earn a certain return on investment in the property
Workgroup PM’s true interest:
Not to commit to delivery of work if delivery on the due date cannot be guaranteed
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Ch. 6.4: An Interest Negotiator’s Knowledge and Purpose
Knowledge:The parties-at-interest’s interests
Purpose:
Suggesting solutions that satisfy the conflicting party’s interests without agreeing with either side’s position
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Ch. 6.4: Before Reaching Agreement, Invent Options for
Mutual Gain
Marital conflict:
Joe wants to go to the mountains
Sue wants to go to the shore
WIN/WIN solution:Go to lake Tahoe
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Ch. 6.4: Four Steps to Move from Parties-at-Conflict to Win/Win
1. Parties-at-conflict (pac) enter negotiations knowing what they want
2. The negotiator spells out the “substantive problem”
3. As the negotiator presents a variety of possible solutions that advance their mutual interests, the pac’s converge in their positions
4. A win/win situation emerges
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Ch. 6.4: Key to Finding a Negotiator’s Interests and
Concerns
Ask “WHY?” when he or she states a position
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Ch. 6.4: Insist on Using Objective Criteria
Instead of bargaining on positions, try to find a standard
Example:
Our friend, the FM, wants to use an expensive process to test a part
The cost conscious PM then asks if there is not a less expensive test to achieve the same result
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Ch. 6.4: Short Bibliography on Negotiating for the PM Wall, J.A., jr. “Negotiation: Theory and
Practice” Glenview, Il. Scott, Foresman, 1985 – Excellent academic treatment of the subject
Fisher, R., and Ury, W. “Getting to Yes” Harmondsworth, Middlesex, G.B.: Penguin Books, 1983 – clear presentation of principled negotiations
Cohen, H. “You Can Negotiate Anything” Secaucus, N.J.: Lyle Stuart Inc., 1980 – outstanding guide to win-win negotiation
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Ch. 6.4: Tactical Issues Covered by Most Books on Negotiations What to do if you want “win-win” but the
other party wants “win-lose” What to do if the other party is seating you
so that bright lights shine into your eyes What to do if the other party drags their
feet so as to put you into a situation of extreme time pressure to accept whatever solution they offer(continued on next slide)
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Ch. 6.4: Tactical Issues …..(continued) How to settle purely technical
disputes How to handle threats The FM tries to go over your head
and attempts to enlist the aid of your boss to get you to accept an unsatisfactory solution
How to deal with a person that dislikes you