1. Negotiation In Project Management and 20 Points for Success as a Leader David S Maurer, PMP Lieutenant Colonel, USA (Ret.) VP Programs, PMIWDC PMI Southern Maryland 14 November 2007 david.maurer@pmiwdc.org

2. Dave Maurer, VP Programs david.maurer@pmiwdc.org 2 Why Negotiate? Dictating is so much faster!  Buy-in  Mutual Gain  Achieve more together than separately  “All boats rise”  Fairness  Terrell Owens – what did you do to my Eagles?

3. Dave Maurer, VP Programs david.maurer@pmiwdc.org 3 Objectives  Overview of powerful skills  Provide some tools you can use today  Strengthen our ability to effectively prepare for difficult conversations with project members  Improve our ability to manage and resolve conflict  Broaden our ability to prepare for performance discussions/milestone evaluations and reports

4. Dave Maurer, VP Programs david.maurer@pmiwdc.org 4 Background  The THEORY – Interest-Based Negotiation  Professors William Ury and Roger Fisher developed Interest-Based Negotiation (IBN) which focuses on developing Win/Win solutions  The TOOL – The Negotiation Planning Structure  Breaks down elements of complex negotiations into manageable components  Helps organize thinking – adds structure  Helps to better understand, prepare, conduct and evaluate negotiations of all types  The BOOK – Getting to Yes. Negotiating Agreements without Giving In

5. Dave Maurer, VP Programs david.maurer@pmiwdc.org 5 Skills that cut across all lines… (where does this apply)? Couples Families Employees and Supervisors Project Teammates Customers and Colleagues Business People Neighbors Sales People Lawyers Non-Profit Organizations Students and Professors Nations

6. Dave Maurer, VP Programs david.maurer@pmiwdc.org 6 Positional Bargaining versus Interest-Based Bargaining Typical Method: Position Argument Concessions Compromise Solution Does this method of negotiation produce a wise agreement (meets the legitimate interests of each side, resolves conflicts fairly and is durable)?

7. Dave Maurer, VP Programs david.maurer@pmiwdc.org 7 The Planning Structure Mine Counterpart’s POSITION (assumed best alternative; pre-determined outcome) INTERESTS (why; underlying needs)? BATNA (Plan “B”) Best Alternative To a Negotiated Agreement OPTIONS for MUTUAL GAIN (satisfy as many interests of both parties as possible) OBJECTIVE CRITERIA – 3rd Party (industry standards, law, historical data, best practices, code of ethics,)

8. Dave Maurer, VP Programs david.maurer@pmiwdc.org 8 Some Things to Remember  Separate the person from the problem  Perceptions  Emotions  Communication  Assumptions  “Never let your ego get so close to your position that when your position goes, your ego goes with it.” - Colin Powell  Disarming Statement  Bridging Question  Seek satisfaction not victory

9. Dave Maurer, VP Programs david.maurer@pmiwdc.org 9 IBN  Understand your position and theirs  Understand your interests and theirs  Understand your BATNA (Plan “B”) and theirs  Think about options for mutual gain  Identify and use objective criteria

10. Dave Maurer, VP Programs david.maurer@pmiwdc.org 10 Focus on Interests POSITIONS INTERESTS –Solutions to problems- Why a particular solution is preferred –Specific and definite- Reasons underlying a position –Basis for argument- Reasons for a solution –Requires justification- Requires explanation, not justification –Ends discussion - Starts discussion

11. Dave Maurer, VP Programs david.maurer@pmiwdc.org 11 Identify Interests  Listen for:  I have to do X because…….  I can’t do Y because…….  I’m really concerned about…….  Then ask:  What do you need……..?  Could you tell me a little bit more about your reasons for……..?

12. Dave Maurer, VP Programs david.maurer@pmiwdc.org 12 Options for Mutual Gain  Brainstorm possible solutions together  Consider options for joint benefit  Joint Warfighting Doctrine  Create together what neither of us could do on our own  Look for possible trade-offs  Exchange lower priorities for higher ones October, 1962!?

13. Dave Maurer, VP Programs david.maurer@pmiwdc.org 13 If I Only Knew Then What I Know Now…  Negotiating (communicating) helps us identify  What we know;  What we don’t know; and…  What we don’t know we don’t know!  Use Discovery and Disclosure to close the knowledge gap

14. Dave Maurer, VP Programs david.maurer@pmiwdc.org 14 Remember your BATNA!  Real and concrete  Pre-determined before and outside the negotiation  Don’t really want to use it (Look for the Win- Win)  Your best worst case scenario  If we don’t agree, I can always….  What alternatives do I have?  What alternatives can I create?  How can I address the Plan B (BATNA) of my counterpart?

15. Dave Maurer, VP Programs david.maurer@pmiwdc.org 15  Active Listening  Watch for verbal and non-verbal signals (55, 38, 7)  Use attentive body language  Demonstrates attention to speaker  Builds relationships  Clarifies to ensure understanding  Demonstrates empathy  Supports more information sharing, disclosure and discovery  Reason Together… it worked for The Godfather…(for a while)  Win/Win  Because Win/Lose is not acceptable  Jim Thomas – Negotiating to Win

16. Dave Maurer, VP Programs david.maurer@pmiwdc.org 16 20 Points for Success in the Workplace

17. Dave Maurer, VP Programs david.maurer@pmiwdc.org 17  Integrity and Honesty: Always and non-negotiable  Responsiveness: “ Respondability”  Anticipation: Over the horizon  Follow-up: “An action passed…”  Problems and Solutions: Where is your value?

18. Dave Maurer, VP Programs david.maurer@pmiwdc.org 18  Personal Accountability: It’s YOURS!  Hard Work: “If it were easy, everyone would do it”  Sense of Urgency: Pep!  Personal Discipline: Set the bar high for yourself  Leadership by Example: Always on parade

19. Dave Maurer, VP Programs david.maurer@pmiwdc.org 19  Followership: We all have a boss; Leading upward  Loyalty: It is expected and should be  Respect for Others: Platinum Rule  Teamwork: You are rarely alone  Collaboration: Extend your reach

20. Dave Maurer, VP Programs david.maurer@pmiwdc.org 20  Passion: Check for a pulse  Reputation: Its all you have  Seriousness of Purpose: Study, learn and apply  Sense of Humor: It could always be worse  Continuous Growth: Your own responsibility (point the thumb)

21. Questions?