Ch. 6: Conflict and Negotiation

Most conflicts have their roots in Most conflicts have their roots in uncertainty, and negotiation is a uncertainty, and negotiation is a way of managing the resultant way of managing the resultant riskrisk

Ch. 6.0: A Good Way to Understand Conflict

Conflict is a process which begins when one party perceives that the other party has frustrated some concern of his/her

Ch. 6.0: When Is a Conflict Resolved?

When the level of frustration has been lowered to the point where no action against the other party is being contemplated

Ch. 6.1: Two Definitions of Negotiation Negotiation is a process through

which the parties seek an acceptable rate of exchange for items they own or control

Negotiation is an endeavor that focuses on gaining the favor of people from whom we want things

Ch. 6.1: Pareto-optimal Solution

A solution, such that no party can be made better without making another party worse off by the same amount or more (the antithesis of a win/win situation)

Ch. 6.2: Partnering

Partnering is a method of transforming contractual relationships into a cohesive, cooperative project team with a single set of goals

Ch. 6.2: Multi-step Process for Building Partnered Projects

Commitment Four part agreement:

Joint progress evaluation Problem resolution method Continuous improvement goals Joint review at project termination

Ch. 6.2: Project Charter

Written agreement between PM, senior management and functional managers, committing resources and people to the project

Ch. 6.2: A Charter Is a Signed Commitment To:

Meet design intent Complete contract without the

need for litigation Finish the project on schedule Keep cost growth equal or below a

predetermined amount

Ch. 6.2: Scope Changes Are Caused By:

Technological uncertainty When the project team learns

more about the nature of the deliverable

A mandate

Ch. 6.2: Conflicting Priorities High priority projects: currently

supported by senior management

Lower priority projects: should be done if time and resources permit

Mandates: must be done immediately

Ch. 6.3: Conflict Sources Schedules Priorities Staff and labor requirement Technical factors Administrative procedures Cost estimate Personality conflicts

Ch. 6.3: The Three Fundamental Conflict Categories

Different groups with different goals

Who makes decisions Interpersonal conflicts

Ch. 6.3: Conflict and the Project Life Cycle (PLC)

The project life cycle (PLC) Nature of conflicts in the PLC Linkage of PLC with conflict

categories

Ch. 6.3: Four Phases of Project Life Cycle As Seen By:

Phase

Senior Management

Thambain and Wilemon

Adams and Barndt

I Bootleg work Project formation

Concept

II Aggregation of resources

Buildup Plan

III Lions share of work

Main program

Execute

IV Products to client

Phase out Terminate

Ch. 6.3: Personality Clashes

Senior Management PM Client

Ch. 6.3: Project Manager Vs. Functional Manager Conflicts

PM concern: project

FM concern: day-to-day operations

Ch. 6.3: Who Decides in a Matrix Organization?

PM: schedule and flow of work

FM: technical decisions, manpower

Ch. 6.3: When Top Management Fixes Time and Cost Too Tightly

1. Underestimation of cost and time

2. PM tries to pass cost and time squeeze on to FM

3. FM complains to senior management that he/she cannot meet cost and time goals

Ch. 6.3: Whose Priorities are Ruling? Functional manager Client Project team

Ch. 6.3 Methods for Settling Project Priority Conflicts

1. Priority ranking through PS model2. Priority ranking through senior

management

Ch. 6.3: The“Who” and “What” of Matrix Organization Conflicts

Who What

Project team and client

Technical problems

Senior Management (*)

a) Wants PM to create communication rules

b) Wants to dictate who reports to whom

(*) Good example of senior management wanting to have their cake AND eat it!

Ch. 6.3: Conflicts in the Different Phases of the PLCPhase Conflict Source

Formation

Confusion of setting up project

Buildup Priorities, schedules and administrative procedures

Main PERT critical path

Phase-out

Schedules, cost overrun

Ch. 6.3: Fundamental Issues for Conflict during Project Formation

1. Technical objectives2. Commitment of resources3. Priority4. Organizational structure

Ch. 6.3: Questions Leading to Conflict during Project Formation

Which of the functional areas will be needed to accomplish project tasks?

What will be the required level of involvement of each of the functional areas?

How will conflicts over resources/facility usage between this and other projects be settled?

Ch. 6.3: More Questions Leading to Conflict during Project Formation

What about those resource/facility issues between the project and the routine work in the functional departments?

Who has the authority to decide the technical, scheduling, personnel and cost issues?

How will changes in the parent organization’s priorities be communicated to everyone involved?

Relative strength of

manager

Projectoriented

Matrix Functional

Type of organization

PMFM

Ch. 6.3: Who Will Win the Argument?

Ch. 6.3: The “Height” of Conflict during Project Buildup

Issue Rivals

Technical approach

PM Vs. FM

Handicap PM: generalist, but occasionally has a bright technical ideaFM: has generally more technical expertise

Ch. 6.3: How a Main Phase Scheduling Conflict Develops1) Some project activity runs into

trouble2) Some tasks dependent on (1) will

be delayed3) (2) will delay the entire project4) PM tries to prevent (3) from

happening by requesting resources from the FM

5) PM vs. FM

Ch. 6.3:Environment for Conflict during Phaseout Schedule slippage consequences from

main phase felt strongly during phase out

Firm deadlines hectic environment Substantial cost overruns ignored to

meet deadline potential conflict with senior management

Functional groups needed to support project team to meet deadlines potential conflict with FM

Ch. 6.3: Personality Conflicts During Project Phaseout

Pressure to complete project Anxiety to leave project Distribution of project resources at

project termination Fresh starting projects Vs. Phasing

out projects

Ch. 6.3: Discipline Oriented Vs. Problem Oriented Individual

“He/she will do whatever he/she thinks is right to get

his/her own job done, whether or not it is good for the

company or anyone else”

Pelled and Adler, 1994

Ch. 6.3: Successful Handling of Conflicts by PM

Ability to reduce and resolve conflict in ways to support achievement of

project’s goals

Primary tool:

Negotiation

Ch. 6.3: Preview and Reading for Ch. 6.4

Pinto and Kharbanda (1995) – conflict resolution in the spirit of win-win negotiation

Dyer (1987) – focus on conflict between team members

Afzalur (1992) – general work on win-win negotiating

Similarities between the confrontation-problem solving technique and win-win

negotiation:

Ch. 6.4 Negotiations NOT covered in Section 6.4 President and Congress NFL player’s agent and team Real-estate buyer and seller Divorce Collective bargaining agreement Tourist and peddler

Ch. 6.4: Key to Understanding the Nature of Negotiating

NOT: whether or not a task will be undertaken or a

deliverable produced

BUT: project design of the deliverable and/or how the design will be achieved, by whom, and

at what cost

Ch. 6.4: Main Requirement for Conflict Reduction/Resolution

Conflict is to be settled without irreparable harm to the project’s objectives

Ch. 6.4: Second Requirement for Conflict Reduction/Resolution

Honesty between negotiators

Ch. 6.4: The Win/Win Solution

Seek solutions to the conflict that not only satisfy an individual’s own needs, but also satisfy the needs of other parties-at-interest and the parent organization

Ch. 6.4: Principled Negotiation

1. Separate people from problem2. Focus on interests, not positions

3. Before trying to reach agreement, invent options for mutual gain

4. Insist on using objective criteria

Ch. 6.4: How to Separate People from Problems

Carefully define the substantive problem

Then, let everyone work on the problem – not on the person

Ch. 6.4: How to Focus on Interest, not Position

WRONG: Focus on position

PM: “I need this subassembly by November 15”FM:” I can’t deliver it before February 1 next year”

RIGHT: Focus on interest

FM and PM: “Let’s talk about the schedule for this subassembly.”

Ch. 6.4: Two Examples of Negotiating Positions

1. Real estate bidder, assuming a future property value:“I will not pay more than 1 million for that property.”

2. Assume that a workgroup’s current workload will not change, PM states:“We cannot deliver this subassembly before February 1.”

Ch. 6.4: Shifting Focus from Position to Interest

Real estate bidders true interest:

Earn a certain return on investment in the property

Workgroup PM’s true interest:

Not to commit to delivery of work if delivery on the due date cannot be guaranteed

Ch. 6.4: An Interest Negotiator’s Knowledge and Purpose

Knowledge:The parties-at-interest’s interests

Purpose:

Suggesting solutions that satisfy the conflicting party’s interests without agreeing with either side’s position

Ch. 6.4: Before Reaching Agreement, Invent Options for

Mutual Gain

Marital conflict:

Joe wants to go to the mountains

Sue wants to go to the shore

WIN/WIN solution:Go to lake Tahoe

Ch. 6.4: Four Steps to Move from Parties-at-Conflict to Win/Win

1. Parties-at-conflict (pac) enter negotiations knowing what they want

2. The negotiator spells out the “substantive problem”

3. As the negotiator presents a variety of possible solutions that advance their mutual interests, the pac’s converge in their positions

4. A win/win situation emerges

Ch. 6.4: Key to Finding a Negotiator’s Interests and

Concerns

Ask “WHY?” when he or she states a position

Ch. 6.4: Insist on Using Objective Criteria

Instead of bargaining on positions, try to find a standard

Example:

Our friend, the FM, wants to use an expensive process to test a part

The cost conscious PM then asks if there is not a less expensive test to achieve the same result

Ch. 6.4: Short Bibliography on Negotiating for the PM Wall, J.A., jr. “Negotiation: Theory and

Practice” Glenview, Il. Scott, Foresman, 1985 – Excellent academic treatment of the subject

Fisher, R., and Ury, W. “Getting to Yes” Harmondsworth, Middlesex, G.B.: Penguin Books, 1983 – clear presentation of principled negotiations

Cohen, H. “You Can Negotiate Anything” Secaucus, N.J.: Lyle Stuart Inc., 1980 – outstanding guide to win-win negotiation

Ch. 6.4: Tactical Issues Covered by Most Books on Negotiations What to do if you want “win-win” but the

other party wants “win-lose” What to do if the other party is seating you

so that bright lights shine into your eyes What to do if the other party drags their

feet so as to put you into a situation of extreme time pressure to accept whatever solution they offer(continued on next slide)

Ch. 6.4: Tactical Issues …..(continued) How to settle purely technical

disputes How to handle threats The FM tries to go over your head

and attempts to enlist the aid of your boss to get you to accept an unsatisfactory solution

How to deal with a person that dislikes you