1. CVE 4070 Construction Engineering Project Meetings & Negotiations Prof. Ralph V. Locurcio, PE

2. Meetings…  Project meeting…  Purpose is status of events or budget  Each person represents a function  Decision meeting…  Emphasis on problem resolution  More difficult environment  Power & politics play a role  Role of players is significant

3. Strategy for meetings…  Be prepared…  Know the objective…  Have well documented case…  Be aware of “group think”  Use accepted business rules…  Be a team player…  Consider continuing relationships…

4. Group think…  Illusion of a “majority view”…  View of opposition as inept…  Self-censorship of the group…  Rationalization discounts warnings…  Team attitude stifles disagreement…  Forcing early consensus..  False morality blocks certain viewpoints…  Feelings of invulnerability…

5. Negotiating…  The problem… it’s not a win-lose game  The method… know your style  Avoid a stalemate… you need a strategy

6. Best reference for negotiating…

7. The goal… a successful negotiation  It should produce a wise agreement  It should be efficient  It should improve the relationship of the parties  Strike a balance:  Achieve personal & professional goals  Preserve the relationship

8. Negotiating styles…  Hard bargaining… a win-lose style  Conciliatory bargaining… a friendly style… usually a lose-lose result  Principle centered bargaining… focus on the issues… a win-win result

9. The problem…  Hard bargaining over positions…  Sets up win-loose conditions  Personal ego gets involved  Produces un-wise decisions  Underlying issues may get ignored  Not very efficient  May produce a stalemate  Endangers the relationship

10. The problem…  Conciliatory bargaining for relationship…  Emphasizes agreement  Trust is emphasized  Relationship is maintained  Both sides may give too much  May also produce un-wise decisions  Agreement may be loosely organized  Vulnerable to a hard game

11. A better solution…  Principle/issue centered negotiation  Focus on interests not positions  Separate people from issues  Generate a variety of possibilities  Discuss pros & cons without deciding  Base decisions on objective standards  Goal is to satisfy underlying interests

12. Preserves the relationship…why?  Focus is on interests; not people or ego  Active discussion of interests & options  Discuss mutually satisfying options  Use fair standards to evaluate  Produces a wise decision

13. What’s your preferred style?  Thomas-Killman Instrument  Simple on-line test  Indicates your “preferred” style  No right answers or styles  Several styles are productive in groups  www.geocities.com/Athens/Forum/1650/qconflict.html www.geocities.com/Athens/Forum/1650/qconflict.html

14. Exercise – Answer these – 10min. 1. Sometimes I give others what they want, even when I would rather not.Yes 2. If there is a disagreement I like to win.Yes 3. It is better to arrive at an agreement where everybody is satisfied, rather than hold out to get the most advantage for myself. Yes 4. Often it is best to follow other people’s ideas.Yes 5. Usually I am single-minded in achieving my aims. Yes 6. I prefer not to spend much time with individuals who voice strong opinions.Yes 7. When I have made up my mind I try hard to convince others.Yes 8. I like to be very open and encourage others to be the same.Yes 9. In a dispute both sides need to make significant concessions.Yes 10. It is often better to accept another’s viewpoint rather than antagonize them.Yes 11. It is better to explore agreement rather than disagreement.Yes 12. If there is a problem I like both sides to put their cards on the table. Yes 13. I usually prefer to share the cake rather than try to get it all.Yes 14. Differences of opinion don’t often matter a great deal. Yes 15. I prefer to stick with my own ideas rather than enter a long discussion.Yes

15. Exercise – Scoring-5pts each “yes” Style (1)6, 14, 15 = yes = Style (2) 1, 4, 10 = yes = Style (3) 3, 9, 13 = yes = Style (4) 2, 5, 7 = yes = Style (5)8, 11, 12 = yes =

16. Exercise – Your preferred style Style (1)Avoidance Style (2) Accommodating Style (3) Compromising Style (4) Competing Style (5)Collaborating

17. Thomas-Kilman Test  Four modes of Negotiating Behavior: 1.Avoiding – fast, can’t win, trivial 2.Accommodating – wrong, good will, social 3.Compromising – expedient, temporary 4.Competing – fast, one sided, important 5.Collaborating – slow, creative, important

18. Thomas-Killman Conflict Instrument Accommodation Collaboration Compromise Avoidance Competition Low High Concern for own needs Concern for other’s needs

19. Result of negotiating styles… Dominating and competing Place self before others IDEAL SITUATION Collaborating & integrating Open participation, all benefit, win-win Compromising Both sides lose something Avoiding and withdrawing Lack of integration; don’t care Accommodating Giving-in to others Concern for self Concern for others Stress high & long term Stress avoided but long term stress high Stress low but long term stress high Initial stress high but long term stress low Problem may remain Long term stress possible

20. Don’t be surprised…  Prepare for unexpected outcomes…  Have an “RP” = reservation point  Least outcome you will accept  Point to stop negotiating  Have a “BATNA”  Best Alternative to a Negotiated Agreement  Alternative solution or back door  Develop both before negotiations start!

21. Negotiating strategy…  Know your real objectives  Avoid personality issues  Be flexible  Discuss your objectives & issues  Be prepared to make reasonable concessions  Be prepared to exploit opportunity  Know consequences of failure… have an “RP”  Prepare for the unexpected… have a “BATNA”  Maintain written records…  Be patient; but strive for progress  Know when to quit… when you’re ahead!

22. Example #3…  Negotiations at sea-1  US Navy ship at sea in dense fog… watchman signals a light ahead on a collision course with the ship.  US captain radios the other ship with the following order… “this is a US Navy warship… we have priority passage… divert 15 degrees to starboard”

23. Lessons learned… 1.Know who you are negotiating with. 2.Study the problem completely. 3.Keep an open mind & be flexible. 4.Know your RP. 5.Have a BATNA. 6.Decide on objective criteria. 7.Don’t let emotions cloud your thinking.

24. Last Slide

25. Example #3…  Negotiations at sea-2  Radio reply received… “Negative… Negative… divert your course 30 degrees to starboard and reduce speed to 3 knots”  US Captain is outraged… he is a warship and he has priority of passage!!!!

26. Example #3…  Negotiations at sea-3  US Captain replies in his most forceful command voice…  “This is the aircraft carrier USS Lincoln; largest ship in the Atlantic fleet; we are accompanied by an entire fleet;  I demand that you alter your course 15 degrees to starboard!!”

27. Example #3…  Negotiations at sea-4  The radio reply comes back… “Negative, Negative… this is Coast Guard Seaman 2d class...  I don’t care who you are… alter your course 30 degrees to starboard and reduce speed to 3 knots…  We are a lighthouse and if you don’t alter your present course you’ll run aground in about 3 minutes…

28. Example #3 ....Over and out!”