Importance of Negotiation and Effective Meetings in Programme Management

As a seasoned Project Director and Subject Matter Expert, I firmly believe that successful negotiation in Programme Management is not just a skill, but an art form. It involves a combination of personal conditions, attitude, knowledge, interpersonal skills, and self-confidence that play a crucial role. In this article, I want to delve into how to achieve successful negotiation in project management, highlighting new management models, technologies such as AI and Web3, and the role of professional mentors in the process.

According to the Levin-Ward Competency Model and PMI® and IPMA® standards, communication is the most critical competency for Programme Managers. However, the trait underlying great communication is self-confidence. Half the battle is won when you trust in your capabilities, especially when you have no time to prepare and must negotiate on the spot.

Cultural understanding is critical to breaking or making your negotiation outcome. While negotiating in your own environment with partners from the same cultural circle may present no issues, negotiating with partners from different countries, cultures, and languages requires an understanding of your negotiation partners and how to behave to keep the upper hand. Every country and region has its way of doing projects and negotiations, and as a Swiss living in Malaysia and working around Asia and the Middle East, I have learned a lot by making mistakes. As a Programme Manager for more significant projects, you deal with an international audience with today’s global workforce. Therefore, it’s crucial to learn negotiation skills as much as possible.

Definition of negotiation and effective meetings

Negotiation is not only about settling a business deal. It’s about finding ways with your team, project managers, and contractors to get the job done with the best time, cost, and quality. Sometimes it’s just an informal discussion among a few people to find an ideal sequence of activities and who will start first, among other things. Other times it’s a year-long formal meeting with all the legals involved to settle a contract or dispute.

In general, it’s crucial to be clear about the outcome you want to achieve. Still, during the negotiation process, I have found that I became smarter and found a win-win outcome that was even better than expected. Therefore, have enough flexibility and stay open to different outcomes with even better benefits for the program and the company than planned.

Preparing for Negotiation and Meetings: Tips and Strategies

The negotiation process typically follows certain stages, but it’s essential to be flexible because everything depends on the situation, and you might have to deviate from the steps given here:

#1 Developing a Negotiation Plan

Collect all the information and facts you can get, and ask different sources to get a sound picture. I usually prepare first with my team to get all ideas together into one expected outcome and who we want to get there. What we can give away and what we have to get. Another preparation point is to meet the key person of the other party, e.g., Client, sub-contractor, consortium partner, etc., and have an informal discussion and settle the outcome with a handshake before the official meeting.

It’s also important to define the technical solution first and agree on the technical part and push the commercial negotiation to a later stage. It’s easier to find a technical solution and implement it than to have a complete technical and commercial solution in one meeting. Ideally, this way forward should be prepared before the official negotiation starts.

Finally, it’s essential to nominate the person who will talk and facilitate the negotiation. Sometimes you define two people: the “good cop” and the “bad cop.” This is a decision to make at the beginning if you may have to table inconvenient stuff by the “bad cop” first and then get the “good cop” to make the best out of it.

#2 The Meeting: Best Practices for Success

The meeting is the crucial first step in any negotiation, and the person nominated to lead it has a big responsibility. Their job is to set the tone for the conversation, steer it towards the desired outcome, and maintain a professional demeanor throughout.

The nominated person should start by giving a short intro speech, introducing each party and stating why they’re here. From there, the main negotiation begins. It’s important to keep the conversation on track and focused on the desired outcome, even if the other party becomes aggressive or confrontational. The nominated person should be prepared to handle objections and provide evidence to support their position.

But that’s not all. The nominated person is also responsible for documenting the meeting and the conclusions reached. This includes taking notes, recording the conversation, or creating a written agreement that outlines the terms of the negotiation. Having a clear and concise record of the negotiation is crucial for ensuring that both parties understand their obligations and for resolving any future disputes.

Ultimately, the meeting sets the tone for the rest of the negotiation. By staying focused, maintaining a professional demeanor, and actively listening to the other party’s perspective, the nominated person can help ensure a successful outcome. With careful planning and execution, you can turn any negotiation into a win-win situation for both parties involved.

#3 Discussion: Presenting Your Case and Active Listening

During the discussion stage, each party presents their case and tries to persuade the other party to accept their position. It is important for both parties to remain respectful and considerate, even if they do not agree with the other party’s perspective.

Active listening is a key skill during this stage, as it allows each party to better understand the other’s position and to identify areas of common ground. The nominated person should encourage both parties to listen to each other and to seek clarification if needed.

If disagreement arises, it is important to remain calm and professional and to avoid becoming defensive or confrontational. The nominated person should work to find common ground and to explore creative solutions that meet both parties’ needs.

#4 Gain Clarity: Understanding Goals, Interests, and Viewpoints

Once both parties have presented their case and the discussion is complete, it is important to clarify the goals, interests, and viewpoints of both sides. This helps to ensure that both parties understand each other’s position and can work towards a mutually beneficial outcome.

The nominated person should ask each party to summarize their position and to identify any areas where they feel they can compromise. They should also ask clarifying questions to ensure that they have a clear understanding of each party’s needs and expectations.

#5 Negotiate: Finding Common Ground and Exploring Creative Solutions

With a clear understanding of each party’s position, the negotiation can begin in earnest. The nominated person should work to find common ground and to identify areas where compromise is possible. This may involve exploring alternative solutions, revisiting earlier proposals, or brainstorming new ideas.

Throughout the negotiation, it is important to remain flexible and open to new ideas. The nominated person should be prepared to adjust their position if new information or evidence arises, and should be willing to explore creative solutions that meet both parties’ needs.

#6 Agreement: Documenting the Terms and Ensuring Understanding

Once both parties have reached a mutually beneficial agreement, it is important to document the terms of the negotiation and to ensure that both parties understand their obligations. This may involve creating a written agreement, signing a contract, or formalizing the negotiation in some other way.

The nominated person should ensure that all necessary documentation is completed and that both parties have a clear understanding of the agreement. They should also follow up with both parties to ensure that the terms of the negotiation are being met and to address any issues or concerns that may arise.

Conclusion

Successful negotiation in Programme Management requires a combination of personal traits, communication skills, cultural understanding, and careful planning and execution. By following the steps outlined above and remaining flexible and adaptable, project managers can achieve their desired outcomes while maintaining positive relationships with their stakeholders.

In addition, new technologies such as AI and Web3 can offer valuable tools for project managers to improve their negotiation strategies and achieve better outcomes. Professional mentors can also provide valuable guidance and support throughout the negotiation process.

Overall, negotiation is a critical skill for project managers, and it’s essential to invest time and effort in developing and refining this skill. By doing so, project managers can ensure the success of their projects and the satisfaction of their stakeholders.

Cheers, Peter