1. The Cadence
Distinguished Speaker Series Presents
Negotiating For Project Success
with Randy Englund
Thank you for joining us.
The session will begin momentarily.
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2. The Cadence
Distinguished Speaker Series Presents
Negotiating For Project Success
with Randy Englund
Introduction with John Patton
CEO, Cadence Management Corporation
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3. 3

4. Who’s Who
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5. Premises (1)
 The results delivered by projects depend upon
what you negotiate
 Successful project leaders:
 Explore a perspective, principles, tools, and
recommendations to achieve better results through
the power of negotiations
 Avoid being set up for failure by recognizing and
developing skills that lead to greater success
 Negotiating is fun, and it is productive
 Everything is negotiable, both at work
and in everyday lives.
"If you want to build a ship, do not start by looking for lumber, cutting boards or sorting out the
work. First evoke in men the longing for the wide open sea." - Antoine de Saint Exupery 5

6. Premises (2)
 It is in our best interests, and for your
team and organization, that you embrace
negotiating as a requisite skill…and
implement it dutifully.
 Are you fully equipped to get the best
outcomes possible?
 Learn ten basic “rules,” develop
negotiating skills, and reap the benefits.
 This effort will change your life.
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7. Why Negotiate?
 Do you want a better outcome?
then negotiate!
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8. Why Negotiation Skills Are Important to
Project Managers Today
 Positional authority of project managers
 Team member reporting structures
 Organizational structures
 Shared resources
 The effects of a dictatorial style
 Multi-cultural project teams
 Global project teams
 Suppliers and manufacturing partners
 Customers.
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9. Benefits of Negotiation
 What if you could improve your negotiating
abilities by five to ten percent?
 Negotiate clear success criteria and set yourself
up for success instead of failure
 Efficiently and amicably arrive at fair business
outcomes
 Obtain reliable and well-understood
commitments from project contributors
 Better value and lower costs
 Maintain and build relationships
 Unanticipated, valuable outcomes.
“If you are planning on doing business with someone again, don't be too tough in
the negotiations. If you're going to skin a cat, don't keep it as a house cat.”
- Marvin S. Levin 9

10. 10

11. What about…the definition of project success?
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12. What is Negotiation?
“As long as you keep a person down, some part of you has to be down there to
hold him down, so it means you cannot soar as you otherwise might.”
- Marian Anderson 12

13. Ref: Roger Fisher, William Ury, and Bruce Patton's best-selling book, Getting to Yes (1991)
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14. The essence of Principled Negotiations:
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15. 15

16. • Identify the • Understand the • Generate • Congratulate • Nurture
issue problem alternatives the other relationships
• Define the • Define goals • Evaluate parties • Check
problem • Build alternatives (never gloat) compliance
• Decide relationships • Select • Follow up to (build this
whether to • People/roles • Reiterate assure the into the
negotiate, • Use standards agreements action plan is agreement!).
dominate, • Define your • Capture implemented
acquiesce BATNA & agreements • Carry out the
or avoid improve it in writing agreed upon
• Define their • Create an solution
BATNA & action plan &
worsen it timeline 16

17. Preparation Phase
 Can it be negotiated?
 Should it be?
 If yes, when? (timing)
 BATNAS
 Preparation checklist
 “Framework” agreements:
 boiler plates, fill in the blanks.
“Where facts are few, experts are many.” - Donald R. Gannon 17

18. - Roger Fisher and William Ury , Getting To Yes: How to Negotiate Without Giving In.
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19. “No man ever listened himself out of a job.” - Calvin Coolidge
Ref: PMBOK, 2000
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20. Sources of Power in Negotiations
Ref: Fisher & Ury, Getting to Yes.
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21. The Third Alternative
 We humans are presently conditioned to expect
our relationships to be win/lose.
 View most situations from an “either/or” point of
view: either I win or I lose
 It has to be one or the other.
 There is a third alternative.
 May be harder to find, but there almost always exists
a third way of doing things where no one loses
 Or at worst are assured that the loss has been
minimized and fairly shared
 Minimizes and distributes the loss so it has
the least negative effect
 This is the win-win way — this is synergy.
Ref: Future Positive, Synearth. http://futurepositive.synearth.net/2003/07/24 21

22. Rules of Negotiating
Adapted from Leo Reilly © 1990 22

23. Be patient
 Impatience leads to
poor openings and
unnecessary
concessions
 Patience enables
better control and
more rational deals.
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24. Be positive
 Being liked makes it
easier to negotiate
 Optimism creates a
positive atmosphere.
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25. Gather information
 Ask questions
 Get to know the other
side
 Examples:
 Deadline
 Authority
 Possible alternative
solutions
 Motivations
 Bottom line
 Past negotiating
history.
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26. Float trial balloons
 "What if?"
 Get answers without
commitment
 "Why?"
 Float several.
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27. Know your status
 Relation to other side
 Buyers have higher status
 Seller's edge is
information
 Sellers susceptible to "the
nibble"
 at the end of the process
 ask for small concessions
 that are easily surrendered
 as condition for "closing"
the sale
 are not price related.
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28. Know your opening offer (1)
 Do not open first
unless:
 other side has no
perception of value
 tradition demands it
 necessary to lower
other side's "shield"
 Engage the other side
 Justifiable with
rational connection to
needs…
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29. Know your opening offer (2)
 Provide room to
negotiate
 Open at the edge of
the envelope
 Deadlock occurs if
open at bottom line.
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30. Limit your authority (1)
 Most powerful person
negotiating is one with
least authority to
negotiate
 Least powerful person is
one with most authority
to negotiate…
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31. Limit your authority (2)
 Do not negotiate with
unlimited authority
 cannot be pinned down
 "institutionalized
patience”
 Determine the authority
that the other side has
before beginning the
process.
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32. Know your bottom line
 Most powerful
information to have
 Provides guidance
about when to
deadlock or not
 Know best alternative.
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33. Be prepared
 Proper preparation
means power
 Prevents surprises
 Avoid emotional
reactions
 Defuse coercive
conduct
 Place things in
perspective
 Or else lose control.
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34. Never reward intimidation tactics
 Avoid being
intimidated
 Do not give in
 Never try to negotiate
with ineffective
conduct; only try to
negotiate with
effective conduct.
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35. 35

36. “In the business world, the rearview mirror is always clearer
than the windshield.” - Warren Buffett
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37. “Tis better to be silent and be thought a fool, than to speak and remove all doubt.”
- Abraham Lincoln
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38. Summary
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39. References
Englund Project Management Consultancy
www.englundpmc.com
englundr@pacbell.net 39

40. The Cadence
Distinguished Speaker Series Presents
Negotiating For Project Success
with Randy Englund
Thank you for joining us!
40

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