Partnering: Managing Interorganizational Relations Chapter 12 Partnering: Managing Interorganizational Relations

Introduction to Project Partnering A process of transforming contractual arrangements into a cohesive, collaborative team that deals with issues and problems encountered to meet a customer’s needs. Factors favoring partnering: Existence of common goals High costs of the adversarial approach Copyright © 2006 The McGraw-Hill Companies. All rights reserved.

Partnering Advantages of Long-term Partnerships Reduced administrative costs More efficient utilization of resources Copyright © 2006 The McGraw-Hill Companies. All rights reserved.

Project Partnering Framework FIGURE 12.1 Copyright © 2006 The McGraw-Hill Companies. All rights reserved.

Project Partnering Charter FIGURE 12.2 Copyright © 2006 The McGraw-Hill Companies. All rights reserved.

Project Completion—Celebrating Success Conduct a jointly review of accomplishments and disappointments. Hold a celebration for all project participants. Copyright © 2006 The McGraw-Hill Companies. All rights reserved.

Sample Partnering Evaluation FIGURE 12.3 Copyright © 2006 The McGraw-Hill Companies. All rights reserved.

Why Project Partnering Efforts Fail Reasons for Failure Senior management Fails to address problems or Does not empower team members to solve problems. Cultural differences A lack of incentive Continuous improvement by contractors participating in the partnering relationship. Copyright © 2006 The McGraw-Hill Companies. All rights reserved.

The Art of Negotiating Project management - NOT a contest. OUR project. Continually to work together. Principled Negotiations Separate the people from the problem Focus on interests, not positions When possible, use objective criteria Copyright © 2006 The McGraw-Hill Companies. All rights reserved.

The Art of Negotiating (cont’d) Dealing with Unreasonable People If pushed, don’t push back. Ask questions instead of making statements. Use silence as a response to unreasonable demands. Ask for advice and encourage others to criticize your ideas and positions. Copyright © 2006 The McGraw-Hill Companies. All rights reserved.

Managing Customer Relations (cont’d) Managing Customer Expectations NO project oversell Project scope must be good Share significant problems and risks Inform all of project progress. Involve customers early on decisions about project development changes. Handle customer relationships problems expeditious, competent, and professional manner. Copyright © 2006 The McGraw-Hill Companies. All rights reserved.