Describe five stages in negotiation

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This topic contains 2 replies, has 2 voices, and was last updated by  Marwa Abdalla 3 years ago.

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  • #14742

    Marwa Abdalla
    Participant
    1) Understanding Need for Negotiation: Both parties should agree
    on the need for negotiation and establish / realise that there is something to
    negotiate about. That is important in order to reach positive contribution
    from both parties, which will increase the effectiveness of the negotiation.
    Need for negotiation may or may not be urgent. For example, a
    contractor and nominated supplier need to urgently negotiate to agree the scope
    of works and cost estimates in order to sign the agreement and proceed with
    work.
    2) Planning / Preparing for Negotiation: PM should prepare for the negotiation by briefing his team about the objectives behind the negotiation in
    order to
    get their support. PM should try to understand what other parties
    really want (what is it for them – WIFT), should be prepared with alternative
    solutions and should be aware of his bottom lines in order to
    reach mutually agreed arrangement. For example PM should gather
    information about a nominated supplier prior to negotiation meeting in order to
    be aware of their actual need for the work.

    3) Discussions: PM needs to observe the protocol and should be aware of the cultural issues of the other parties in order to avoid misunderstanding. PM should try to build bridge of understanding
    between two points in order to reach compromised solutions when needed.
    PM should not get dragged to say things just for being liked, and should separate
    the issue from emotion in order to avoid taking wrong decisions. For
    example
    PM should reject being dragged by supplier to agree on an
    alternative financial proposal without detailed review of the offer and the
    exclusions.

    4) Proposal and agreement: Once reaching an agreement, PM has to make sure that all agreed points are properly and clearly documented without any ambiguity. Both parties should agree on the document that will be used as a reference later on. That is
    important
    to clarify / resolve any future disputes on what was agreed. For
    example
    agreements can be recorded in the form of minutes of meetings,
    memos, or official signed agreements.

    5) Review and follow up: PM should follow up the execution of the agreement in order to make sure that it is being enacted as agreed. PM should update the lessons learnt with the outcome for the benefit of use for
    future projects. For example, updating the lessons learn with the
    exclusions agreed from the supplier scope that reduced both the prices and the
    delivery time. Excluded works can be done in house.
    #14743

    Paul Naybour
    Moderator

    Another good answer, good level of detail in each point and well laid out for the marker

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