The Cadence Distinguished Speaker Series features a session on negotiating for project success with Randy Englund, emphasizing that successful projects depend on effective negotiation skills. Participants will learn essential rules, techniques, and the importance of relationships in negotiations to improve outcomes in organizational settings. Highlighted are the negotiation lifecycle, styles, and strategies to foster win-win scenarios for mutual gain.

1. The Cadence Distinguished Speaker Series Presents Thank you for joining us. The session will begin momentarily. Negotiating For Project Success with Randy Englund

2. Introduction with John Patton CEO, Cadence Management Corporation The Cadence Distinguished Speaker Series Presents Negotiating For Project Success with Randy Englund

3. Are You Prepared? Randall L. Englund , MBA, BSEE, NPDP, CBM Englund Project Management Consultancy www.englundpmc.com “ Choose always the way that seems the best, however rough it may be. Custom will soon render it easy and agreeable.” - Pythagoreas

4. Who’s Who

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

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.

7. Why Negotiate? Do you want a better outcome? then negotiate!

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.

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 . “ I f 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

10. Typical Issues to be Negotiated During the Course of a Project Project charter, authority boundaries Scope, cost, and schedule objectives Changes to scope, cost or schedule Release, acceptance, go/no-go criteria Assignments, roles and responsibilities Contract terms and conditions Resources…

11. Substantive Issues that Need to be Negotiated Terms Conditions Prices Dates Numbers Liabilities What about…the definition of project success?

12. What is Negotiation? Negotiation is communication back and forth for the purpose of making a joint decision . Negotiating is a way of finding a mutually acceptable solution to a shared problem. Mediation is negotiation with the assistance of a neutral third party. “ Your real purpose: to get the other guy to choose what you want – for his own reasons.” Ideal outcome : A wise decision , efficiently and amicably agreed upon. “ A s 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

13. Negotiation Styles Hard (controlling) Hard bargaining is adversarial —you assume that your opponent is your enemy and the only way you can win is if he or she loses. So you bargain in a very aggressive, competitive way. Soft (giving in) Soft bargaining is just the opposite. Your relationship with your opponent is so important that you concede much more easily than you should. You get taken advantage of in your effort to please, and while agreement is reached easily, it is seldom a wise one. Principled. Ref: Roger Fisher, William Ury, and Bruce Patton's best-selling book, Getting to Yes (1991)

14. Effective Negotiations P 2 O 2 PEOPLE Separate the P eople from the Problem Positions Focus on Interests not P ositions Options Generate O ptions for Mutual Gain before Choosing Objective Criteria Decide based on Objective C riteria + BATNA ( Best Alternative to Negotiated Agreement ) - Know Theirs. Know & Improve Yours. The essence of Principled Negotiations:

15. Objective Criteria Market value Precedent Scientific judgment Professional standards Efficiency Costs What a court would decide Moral standards Equal treatment Tradition Reciprocity.

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

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

18. Four Basic Forces in Negotiations Power Information Timing Approach. The cheapest concession you’ll ever make is to let the other side know that they have been heard. - Roger Fisher and William Ury , Getting To Yes: How to Negotiate Without Giving In .

19. Power Within the Organization Influencing within the organization is the ability to “get things done” Influencing involves politics and power Power is the potential ability to influence behavior, to change the course of events, to overcome resistance, and to get people to do things that they would not otherwise do Politics is about getting collective action from a group of people who may have quite different interests. Ref: PMBOK, 2000 “ No man ever listened himself out of a job.” - Calvin Coolidge

20. Sources of Power in Negotiations Influencing involves politics and power Developing good working relationships among people negotiating Understanding interests Inventing an elegant option Using external standards and benchmarks Developing a good BATNA Understanding their BATNA Making a carefully crafted commitment: an offer, something you will do, something you will not do. Ref: Fisher & Ury, Getting to Yes .

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

22. Rules of Negotiating Adapted from Leo Reilly © 1990

23. Be patient Impatience leads to poor openings and unnecessary concessions Patience enables better control and more rational deals.

24. Be positive Being liked makes it easier to negotiate Optimism creates a positive atmosphere.

25. Gather information Ask questions Get to know the other side Examples: Deadline Authority Possible alternative solutions Motivations Bottom line Past negotiating history.

26. Float trial balloons "What if?" Get answers without commitment "Why?" Float several.

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.

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…

29. Know your opening offer (2) Provide room to negotiate Open at the edge of the envelope Deadlock occurs if open at bottom line.

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…

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.

32. Know your bottom line Most powerful information to have Provides guidance about when to deadlock or not Know best alternative.

33. Be prepared Proper preparation means power Prevents surprises Avoid emotional reactions Defuse coercive conduct Place things in perspective Or else lose control.

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.

35. Another Rule: for every concession you make, get something in return!

36. Closing a Negotiation Reach agreement Reiterate Capture Follow up Execute Nurture the relationships. “ In the business world, the rearview mirror is always clearer than the windshield.” - Warren Buffett

37. Ten Negotiation Techniques Make the pie bigger Use humor Show your strength Ask a question Review your preparation (privately) Breathe deeply Name hard-line tactics Take a break Use silence (after your proposal) Reframe an issue. “ Tis better to be silent and be thought a fool, than to speak and remove all doubt.” - Abraham Lincoln

38. Summary

39. References Englund Project Management Consultancy www.englundpmc.com [email_address]

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

41. Beyond the Webinar Professional Development Units (PDUs) Our courses qualify for PDU credit or Education Contact hours from the Project Management Institute. Contact PMI at www.pmi.org for processing details. cadencemc.com/training The award-winning Cadence project management methodology is the foundation of all our project management training, consulting, tools, and software. Learn more about how world-class companies are delivering business results with Cadence. Award-winning Project Management Training from Cadence Cadence Graduates on LinkedIn cadencemc.com/linkedin Follow @AskCadence on Twitter twitter.com/askcadence Join the Cadence Fan Page on Facebook cadencemc.com/facebook Subscribe to the Cadence Mailing List cadencemc.com/enews