Negotiation Skills for Business Analysts and Project Managers

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Negotiation Skills for
BAs and PMs
“A good listener tries to understand thoroughly what the other person is saying.
In the end he may disagree sharply, but before he disagrees,
he wants to know exactly what it is he is disagreeing with.”
– Kenneth A. Wells, Guide to Good Leadership

Let’s Talk About…
• What negotiation is
• What are the best negotiation tactics
• When to use negotiation tactics

What is negotiation?
• What do you think are the characteristics of a
successful negotiator?
• _____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________

Negotiation
• Negotiation is a form of conflict resolution
– Conflict lies not in objective reality, but in people’s perceptions
– As with all conflicts, egos are involved as well as interests
• Negotiation is a method for working together to achieve
mutual goals
• “Negotiation is a give-and-take bargaining process that, when
conducted well, leaves all parties feeling good about the
result and committed to achieving it” . . . from CORPORATE
CONFLICT MANAGEMENT: Concepts and Skills, Rout and Omiko

Patterns of Negotiation
Negotiation Defined
Negotiation Patterns
Summary
I think the one lesson I have learned is that there is no
substitute for paying attention.
– Diane Sawyer

Negotiations
• The purpose of negotiation is to serve your interests . . . WIIFM
• Any method of negotiation may be fairly judged by three criteria
– It produces a wise agreement if agreement is possible
• A wise agreement
– Meets the legitimate interests of each side to the extent possible
– Resolves conflicting interests fairly
– Is durable
– Takes community interests into account
• An unwise agreement is arguing over positions
– It is efficient
– It improves or at least does not damage the relationship between the
parties

What Cannot Be Negotiated?
• We need to know what can and what cannot be negotiated
• The results of analysis cannot be negotiated
– E.g., estimate, solution, recommendation
• Risk cannot be negotiated
– It exists
– Impact of risk might be negotiable
• History cannot be negotiated

What Can Be Negotiated?
For the BA . . .
• Optimum reporting periods, i.e., should status be
reported daily, weekly, biweekly or monthly?
• How detailed should the reports be?
• Who should receive what metrics?
• And, ____________________________________

What Can Be Negotiated?
For the PM . . .
• Goals, objectives, milestones, deliverables
• Tradeoffs in Scope, Time, Cost
• Staff assignments
• Procurement documents
• And, ____________________________________

When To Negotiate
• All the time
– Negotiate the best solution
– Determine features to be included in the next release
– Where you are going for lunch
– The latest line on the basketball game
• Negotiate with
– Peers
– Teammates
– Functional Managers
– Other entities (projects, teams, organizations)

Negotiation Defined
Summary
A good negotiation is one where the parties depart committed
to their agreements.
– Steven Cohen

Patterns To Avoid
• Zero-sum game
– Playing for all the marbles
– My way or the highway
• Married to the solution
– No alternative solutions
• Distributive negotiation
– Negotiation is which the goal is to beat the opposition
• Getting to “B”
– Overestimating or overstating the position to allow room to come back
Management asks for 3 weeks Development team estimates 8 weeks
Both expect the results of negotiation to be 5 weeks

BATNA
• Best Alternative To a Negotiated Agreement (BATNA)
• When the other side has the stronger negotiating position
– Richer, better connected
– Larger staff and resources
• Brainstorm alternatives first
• Trip wire
– A red flag indicator set to allow reserve to BATNA
– Before accepting any agreement worse that the trip wire, take a break and re-examine the
situation
The better your BATNA, the greater your power

Problems with the Bottom Line
• Bottom line
– Lowest price willing to accept . . . Walk Away Price (WAP)
– Highest price willing to pay
– A position not to be changed
– Assists in keeping the negotiator from overstepping
• Protects against accepting a bad agreement
– Limits authority of agents
• Problems
– Limits ability to benefit from lessons during negotiation
• Forces rejection of all possibilities
– Inhibits imagination
• Alternate means that might be better
– Typically a bottom line is set too high

Collaborative (Win-Win) Negotiation
• Separate the people from the problem
– Parties are not “against” each other
– Parties are meeting to solve a mutual problem
• Distinguish interests from positions
– What each party wants is the position, why it is wanted is the interest
– Ask “Why do they want that?” instead of “What do they want?”
• Good personal communication habits aid in all negotiations
– Active listening . . . Head, heart, legs
– Miller’s Law . . . 7 + or – 2

Collaborative Negotiating Guidelines
• Negotiate in a consistent manner
• Separate the people from the problem
– Recognize the emotions on both sides of the negotiation
– Listen actively and communicate your views clearly
• Focus on interests, not positions
– Interest: a stake or advantage you seek to improve or protect during a negotiation
• E.g., getting a good budget, due date
– Position: stance you adopt during the course of a negotiation to further your interests
• E.g., We can’t go past April 15th
• Invent options for mutual gain
– Explore creative ideas . . . 3 questions
• Insist on using objective (measurable) criteria for defining the basis of agreement
• Summarize and specify the basis of any agreements

Negotiation Preparation
1. Determine what can be traded
2. Determine what it is you want to get out of the negotiations (maximum)
– Know why you want it (your interests)
3. Determine what the other part wants to get
– Know why they want it (their interests)
4. Determine the least you are willing to accept (minimum)
– What you are willing to live with
– The point that invokes the “implied threat”
– Determine the BATNA

Negotiation Preparation (continued)
5. Prepare documentation to support your side of the negotiation
6. Be prepared to walk away from the table if
– The discussions become emotional or personal (take a break)
– There is no movement in the negotiations for X minutes (5 –10)
– You cannot get the minimum requested
7. Look for common ground for creative solutions

Triangle Talk
Common ground
(Propose action in a way they can accept)
(Find out what they want and
make them feel heard)
Their interests
(Know exactly what you want)
Your interest
#1
#2
#3
• People are almost always more open and receptive when you speak to
the issues in the order shown above

Examples of Triangle Talk
• “I understand that you feel our first concern should be cost-effectiveness
(their idea), and I agree (common ground). I’ve found a new design that’s
in line with that priority (your idea).”
• “Holding the seminar out of town (their idea) has created a lot of
enthusiasm (common ground). I’d like to tell you about one place in
particular that I’d recommend (your idea).”
“What people say or do to you is not as important as how you respond to it.
Triangle Talk lets you choose how you respond, rather than operating on
automatic.”

Developing Triangle Talk
• Practice, practice, practice
• Every day, practice applying the three steps to some situation
• Begin with people toward whom you feel neutral, and work up to
those for whom you have strong feelings
• Watch your results
– Conduct self-checks: What did I do (or not do) to make this happen (or
not happen)?
– Lessons learned

Negotiating
• Regardless of how well the project runs there will be
negotiations
– In fact, successful negotiations often mean a successful
project
• Negotiating takes planning as well as execution
• Negotiation is a key interpersonal skill in the PMBOK,
5th edition and the BABOK, 2nd edition

NEGOTIATION PLANNING WORKSHEET
Project Name: ________________________
Change Request #: ____________________
Negotiation Content: (What are we negotiating about?)
Negotiation Context: (Cultural, regional, local setting and politics)
Negotiation Process: (That we plan to follow regarding this requested change)
Involved Parties and Roles: (directly and indirectly involved stakeholders, individuals)

Negotiation Defined
Summary
He who hesitates is interrupted.
– Franklin P. Jones

To Sum Up…
 What to look for:
When can all required parties make it?
Where can we meet?
Who should attend, and to do what?
What is the agenda?
Travel?
Consider personal characteristics . . . thinking styles, energy periods, etc.
Space, type, and what is enough
Let’s make reality as effective as it can be
It’s likely that reality will be somewhere between the beach and the castle

Keys to Success
• Wise agreements satisfy the parties' interests and are fair and lasting. ... of the other
parties' interests and perceptions, and of the existing options. ... in differing
interpretations of the facts, it is crucial for both sides to understand the other's
viewpoint. [Fisher and Ury, Getting to Yes]
• You just can't go into a negotiation on the seat of your pants. You have to put yourself
in the other person's shoes, understand their needs so you can get what you want.
[Gerald Nierenberg]
• You want to cover a broad range of bargaining chips. The greater the flexibility, the
greater the chance of a successful negotiation.
[Steven Cohen]

Applying This to Your Job

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