Negotiation Skills
Negotiation skills are the abilities used to reach mutually acceptable agreements between parties with different interests, goals, or perspectives.
Explanation
Negotiation is a daily activity for project managers. They negotiate for resources with functional managers, negotiate scope and schedule with stakeholders, negotiate contracts with vendors, and negotiate solutions during team conflicts. Effective negotiation requires preparation, active listening, understanding the other party's interests, and creative problem-solving.
PMI advocates for win-win or integrative negotiation approaches, where both parties work together to find solutions that satisfy their core interests. This contrasts with distributive or win-lose negotiation, where one party gains at the other's expense. Win-win negotiations preserve relationships and lead to more sustainable agreements.
Key negotiation principles include separating people from the problem, focusing on interests rather than positions, generating options for mutual gain, and using objective criteria for evaluation. Project managers should prepare for negotiations by understanding their own priorities and constraints, researching the other party's interests, and identifying their best alternative to a negotiated agreement (BATNA).
Key Points
- •PMI favors win-win (integrative) negotiation approaches
- •Separate people from the problem; focus on interests, not positions
- •Used for resources, scope, schedule, contracts, and conflict resolution
- •Preparation and understanding BATNA are essential
Exam Tip
On the exam, win-win is almost always the preferred negotiation outcome. Know the difference between integrative (win-win) and distributive (win-lose) negotiation.
Frequently Asked Questions
Related Topics
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Social skills in leadership refer to the ability to manage relationships, build networks, find common ground, and influence others effectively.
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Part of
Leadership & Team Performance
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