Project Management (Creating new Products or Services) 5 страница

c) Can I do something that will help you to excel in the performance of your job?

d) Is there any way in which we can change the project in order to achieve better results?

Being Competitive is one of the majored goals of a business Organisation

Entrepreneurs who spot and exploit new business opportunities are inspirational people. They know that it is vital to accept the risk of possible failure to achieve anything worthwhile. You as a modern progressive manager, you should emulate such entrepreneurs by viewing risks and threats as opportunities (Can Do Attitude). The more you behave like an entrepreneur, is the more successful you will be as a leader.

You should realise that every opportunity involves risk, but before you start a project, and after analysing the project, you must have complete confidence in your ability to win.

Tips for Entrepreneurs

1 Do not gamble when the risk of large losses is great, but analyse your judgment of large loss.

2 Do not aim to compete with your competitors but, aim to beat your competitors?

3 Always assume that competitors will beat you unless you fight them vigorously.

4 Never ignore signs of your customers preferring other competitors’ products, NEVER!!!

5 Always keep up to date with the progress of your competitors.

6 Always analyse your strengths, weaknesses, opportunities and threats, and those of your competitors.

7 Keep abreast with changes and developments by analysing trends in your field.

Negotiation with others 148

Negotiation happens when someone has what you want and you are prepared to bargain, for what you want. It involves two or more parties who have something the other party wants; it is a process of give and take (bargaining).

It is process which ends with a win/win or win/lose situation for one or the other party. To achieve a win/win result you need to be well prepared, alert and flexible.

For successful negotiation you need a game plan – your ultimate aim and strategy for achieving your plan. Thorough preparation before entering into negotiations will facilitate the success of your game plan.

Understanding the Principle of Exchange during Negotiations.

An understanding of the whole process of involved (Preparation, Proposal, Debate, Bargaining and Closing) during negotiation can create successful outcomes for all the parties. The central principle to successful negotiation is the Exchange Principle the Give and Take Principle: which means that “ in order to get something from someone, you must give something. ”

The key to understanding negotiation is to realise that all the parties to negotiations need to gain something valuable in exchange for anything that they (concede) give. It is only then, and then only, when all the parties feel they have gained something for themselves for what they have given away, that agreement can be reached. Negotiations are not like sport where one wins and the other loses, in negotiations both or all the parties win i.e. they gain something from the other party because they have given something to that the other party.

Cultural Differences

In the modern global economy different cultures approach negotiations in very different ways. For example, Europeans and Americans often find the Japanese reluctance (avoidance) to engage in outright combative confrontation confusing and ambiguous. On the other hand, the Japanese find the apparently unequivocal statements or view points unsubtle and difficult to work into a compromise.

Tips for Successful Negotiations

1 Keep in mind that it is almost impossible for a negotiator to do too much preparation.

2 To be a successful negotiator you should learn to “ read ” the other party’s needs.

3 Start by visualising your gains not losses and practise negotiating to improve your skills.

4 Determine your strategy negotiation style and be ready to compromise timeously.

5 Never negotiate from fear and never fear to negotiate, US President JF. Kennedy, 1961.

6 If an agent negotiates for you, define the agents’ responsibilities clearly.

7 When negotiating define your parameters and know where you can give ground.

8 Understand stages of negotiation Preparation; Proposal; Debate; Bargaining and Closing.

9 Remember that all parties want to gain something, therefore you need to compromise.

10 During negotiation flexibility is a sign of strength not weakness, but do not be hasty.

11 Identify the issues and objectives and write them down before negotiating.

12 Distinguish between what you need and what you want from your negotiations.

13 A negotiation is a process of gradual convergence towards agreement or compromise.

Types of Negotiations in Different Organisations

Negotiation Type	Topic of Negotiation	Parties Involved
Day to day Management, internal issues and working relationships between groups of employees.	Arranging pay working conditions, jobs, output and job responsibilities.	Management, subordinates staff, colleagues, trade unions legal advisors
Commercial issues, financial issues with external organisations	Contracts, products, quality, quantity, deliveries and price of products	Managers, suppliers, customers, Government, trade unions, legal advisors
Formal legal issues, disputes on precedents.	Local Government issues, planning laws, local taxes	Local government laws. Regulators, tax collectors.

Assessing the Opposition

It is to your advantage to know as much as you can about the opposition before you start negotiation. Assess if they have a strong logical case, their starting points, are they a strong team with a strong experienced leader, look at all aspects of their case, its strengths and weaknesses, do a SWOT analysis of their overall position. Your aim is to expose their major weaknesses in the case or to undermine the strength of their case.

To find out about the opposition you should ask yourself the following questions.

1 Are the opposition experienced negotiators, do they hold different opinions on the issues?

2 Do they have enough knowledge, facts and information necessary to achieve their aims?

3 Do they have the power and authority to achieve their aims? Are they under pressure?

4 Be careful, the opposition could have a hidden agenda, keep testing your assessment.

5 What do you think the opposition has high, middle or low objectives and priorities?

6 Carefully analyse all formal written information about your opposition.

Cultural differences exist between races, age groups, and sexes, and you should be able to use these to your advantage. If your opponent is a middle aged Russian for example, you can imply that they lack experience of commercial markets. If your opposition is a well educated-Western but young person, you can imply that her/she lacks the relevant work experience. Be careful.

Negotiating with a single or many parties involves mapping out ways of finding common ground for agreement or compromise. After you are clear about your objectives and analysed the oppositions’ strengths and weaknesses, you should formulate your negotiation strategy. A strategy is the overall policy plan designed to achieve a number of specific goals. It should not be confused with ‘tactics’ which are the detailed methods used to carry out the strategy.

Tips for negotiations

1 Use informal social occasions to acquire any relevant information about the opposition.

2 Always keep your strategy simple, flexible, hide frustrations, never walk out of negotiations.

3 Draw your team of negotiators and allocate responsibilities to your team of negotiators.

4 Just like any football team needs a goalkeeper, your negotiation team needs different people to play different classic roles: Leader, Good Guy, Bad Guy, Hard Liner, and Sweeper.

5 After selecting the negotiating, rehearse, rehearse, and rehearse roles until you drop dead.

6 Consider your appearance in advance, first impressions are very important. Power dressing can be positive for negotiations but power dressing can also be negative for negotiations. If in doubt, dress conservatively and wear comfortable clothes.

7 Practice being silent around the negotiation table but listen carefully to everything said.

8 Set an agenda and prioritise issues for discussion; it will influence the rest of the meeting.

9 Arrive a little early for meetings so that you will look efficient and business-like.

10 Create a positive atmosphere by ensuring the venue is suitable for both teams.

11 Keep a wall-clock and do not negotiate for more than two hours without a break.

Defining and Understanding the above Roles.

TEAM MEMBER ROLES	TEAM MEMBER RESPONSIBILITIES
Leader:This is the person with most expertise but, not the most senior person in the team.	Conducts negotiations, deciding on matters and orchestrating members of the team.
Good Guy: This is the person with whom the opposing team will identify as the only opponent.	Expresses sympathy and understanding of the opposition points and lulls the opposition into false confidence and relaxation
Bad Guy: This is the person with whom the opposition feels they can’t do business with or come to an agreement in these negotiations.	Strives to frustrate negotiations, undermining the arguments put forward by opposition, exposing their weaknesses.
Hard Liner:This person takes a tough line in everything presented by the opposition and is deferred to by tour team members.	Delays progress using tactics, recording everything and keeping the team focused on objectives of negotiations.
Sweeper:This person summarising all the points and presenting them for agreement as a reasonable cogent case for the team.	Suggesting solutions to avoid deadlocks, focusing on main issues, pointing out any inconsistencies of the opposition team.
Pessimist: This person argues that negotiations are a waste of time.	Strives to demoralise the opposition saying we are wasting our time negotiating. Strike.

Types of Negotiating Locations can influence the process and speed of negotiations.

TYPE OF LOCATION	ADVANTAGES OF LOCATION FACTORS
Home Ground is a company office room in the building is also called your home territory	Easy for strategic interruptions, easy to call for in-house experts support, but difficult to avoid interruptions from colleagues.
Neutral ground a hired public room is considered a neutral ground	Neither party has an advantage over the other because of familiarity of location
Away Ground is an office room belonging to the other negotiating party	Disadvantages of the AWAY party can delay proceedings by referring back to their office for expert support and advice.

Seating Positions or Plans for Negotiations

The seating positions during negotiations can greatly influence the process and even the outcome. The “ across the table ” sitting position is common. Position each member of your team where their skills will be most useful and in a way that presents a united front. The “ Bad Guy ” usually sits at the end of the table separated from the rest of the team. The “ Good Guy ” next to the “ Bad Guy ” the “ Leader ” sits centrally in the middle, followed by the Hard-Liner and the “ Sweeper ” at the end of the other side of the table opposite the “ Bad Guy ”

To soften the opposition their hard-liner (on your home ground) use a round table for negotiations and position the hard-liner of the opposition next to your leader. Eye contact with the opposition helps you to read the mood of the opposition and also helps leader to get feedback from your own team members. However, you can also exploit the absence of eye contact to disorientate the opposition.

If negotiations are amongst many parties with representatives from each party, such as at the (United Nations, the International Monetory Fund etc) place negotiators in a circle and arrange for individuals to speak from a podium. However, if the negotiations are between several parties with large numbers of representatives, then divide them into small seating groups facing each other like in the British Parliament.

Your seating position should depend on the dynamics you want to produce, if you want to split the opposition, seat between them and if you want to present a united front seat together; and in order to undermine the opposition, place your leader at the head of the table to create the impression that your leader is in control of the proceedings; THE BOSS.

Conducting Negotiations

Negotiating is as much about listening and observing as it is about talking. You need to be very alert (using all your senses to pick up signs and signals given by others) because the mood of negotiations can change very quickly.

You should; Listen to what the other parties say; Listen to how they say it and Observe their non-verbal cues and signals.

Points to remember during negotiations on reading body Language

1 Clear-cut body language: crossing of arms and legs betrays defensiveness.

2 Leaning backwards on a chair expresses boredom and waning interest.

3 Hesitating or fidgeting can indicate lack conviction.

4 Raised eyebrows are a clear sign of surprise.

5 Glancing at each other can indicate that an important point has been reached.

6 Speaking slowly and deliberately indicates feeling confident and at ease.

7 Smiling unnecessarily and speaking quickly indicates nervousness.

8 Looking at ones feet and towards the exit indicates wanting to leave.

9 A confident handshake shows respect and openness; a forceful one shows dominance

Making a Proposal

It is essential that to decide whether you are going to make a proposal at the start of your negotiations or respond to the opposition proposal. If you do make a proposal first, make sure you leave yourself room to maneuver; and make your proposal hypothetical so as to leave scope for both sides to make concessions at any time, However, your decision to speak first is crucial in negotiations, but do not start speaking until you have something to say.

Furthermore, do not try to pin-down the opposition to a fixed position too early as they also need room to maneuver.

The Do’ and Don’ts during Negotiations

Do listen carefully to the other party or parties.	Don’t make too many concessions at an early stage of the process.
Do leave enough room for maneuver in your proposals.	Don’t make your opening offer so extreme that you lose face if you have to climb down.
Do feel free to reject the first offer made.	Don’t ever say “Never” during negotiations.
Make conditional offers such as, if you give us this and that, we will agree to your offer.	Don’t ever answer a question with a simple “yes or no” during negotiations.
Probe the attitude of the opposition asking: what would be your feeling if…?	Never make the opposition feel stupid or look foolish.

Things to do during Negotiations

1 Put forward a proposal with as little emotion as possible: pay close attention to the oppositions’ proposal, use humour when appropriate, but do not try to be too clever; listen carefully to the wishes of the opposition which could be closer to yours than you expect.

2 Be willing to adjust your strategy if you can see a compromise early on in the proceedings.

3 Take notes of all the offers made recording them verbatim if possible.

4 Encourage agreements by saying “ I know that everybody here is eager for agreement ”.

5 Sit upright in your chair and lean forward slightly and use positive verbs when speaking.

6 Make your initial demands high than you expect to receive and offer less than you can give.

Responding to proposals

Avoid showing any immediate reactions when responding to an offer and do not be afraid of remaining silent after an offer, because the opposition will be assessing your reaction.

1 Ask for a break to consider new proposals and use stalling tactics subtly but sparingly but always indicate that every concession you make is a major loss to you.

Responding to Ploys

A “ ploy ” is a trick to confuse someone in order to get an advantage, or to make them do what you want. Ploys are used during negotiations to make you feel that you can never get what you are asking for. Therefore, it is very important to identify ploys and defuse them.

The Effects of Ploys is to:

1 Distract you and your team, thus allowing the opposition to dominate discussions.

2 Shift the emphasis of the negotiations against the benefit of the opposition

3 Manipulate your team into closing negotiations before you are satisfied with the offer.

4 Introduce new issues that are not relevant to the negotiations; therefore:

5 Deflect ploys with humour rather than with anger during negotiations; because,

6 Because ploys are tactics used in order to win during negotiations.

7 Countering ploys without getting angry is very important and takes time to learns.

8 If you are foiled by a successful ploy, think before you respond.

Table for Countering Typical Ploys and Tactics

NEGOTIATION PLOYS OR TACTICS	COUNTERING NEGOTIAION PLOYS
Making Threats: Warnings of bad consequences if you fail to agree the terms of the offer madeby the opposition	Tell the other party: You cannot negotiate under threat; concessions will only be made if they prove the merits of their case.
Offering Insults: Questioning your professional ability criticising the quality of your products etc	Stay calm: Do not lose your temper or offer insults back but re-state your position firmly.
Bluffing: Making general threats that cannot be proved or that have no basis	Call their bluff: Refuse to accept their threats and then wait for their reaction.
Using intimidation: Power dressing, dominant handshake, keeping you waiting in an uncomfortable place, putting you in your place.	Recognise these as ploys Do not drop your original terms unless you gain concessions in return
Dividing and Ruling: Increasing disagreement in your team by using the Good Guy	Brief your team about what is happening and decide on positions to take within your team
Using leading Questions: Used to make you declare weaknesses in your negotiating position forcing concessions from your side	Avoid answering leading questions when you do not understand their intention or, attach conditions to any answers you give
Making emotional appeals: Claiming to be offended by your lack of trusting the opposition.	Affirm your commitment to achieving a fair settlement on business terms only
Testing Boundaries: Used to gain additional advantage through minor infringements of terms over a long period to your disadvantage.	Be clear on exactly what you agree to when you reach a settlement; always draw a clear list of agreed terms from the other party.

Tips for handling Ploys

1 Think before you answer a ploy or ask for an adjournment to consider your reply.

2 Engage only in arguments that are constructive, refuse to be diverted from them.

3 When you agree to talk “ off the record ” always keep your word either way.

4 Use informal chats to smooth out negotiations and to show you are reasonable.

5 If the other party calls for adjournment, either agree to it or call off the negotiations.

6 Pin point the most receptive listeners and address your remarks to them.

Closing Negotiations

Negotiations can be brought to a successful closure only when parties have made concessions that are mutually acceptable in order to reach agreement. However, if you are the weaker party, bargaining can be stressful and costly. If you are forced to make concessions, it is important that you take along term view of the consequences. Offer the smallest concession first, that way you do not need to negotiate for along time, but do not concede ground unless you receive something in return.

Tips for closing Negotiations

1 Read over any notes covering the early part of your negotiations and record fully all agreements finalised at the close of negotiations.

2 Discuss and define any words that are ambiguous in a written format and make sure you do not ignore issues in order to speed up negotiations.

3 Be assertive but, not aggressive when you are closing the deal.

4 Look at the other party when making your final offer and if you are not satisfied with the deal do not sign it.

A carefully selected set of phrases can indicate that you are about to make your final offer, but use firm unequivocal language when making an offer, and reinforce the impact of your words by using a calm, authoritative tone of voice and maintaining steady eye contact. Use phrase like:

1 “I have no authority from my head office to make another offer”:

2 “This is my final offer; I have no room whatsoever to move further than this”

3 “I have already gone much further than I intended to go”

4 “I am running out of time. Agree to my proposal, or I shall have to leave for another meeting.

Remember though, that these statements can rebound to your disadvantage if the opposition says “Well I am not prepared to be coerced in any form”.

Methods of Closing Negotiations

METHOD OF CLOSURE	FACTORS TO CONSIDER
Making acceptable concessions that help to clinch the deal without jeopardizing you party’s position.	This move can break deadlocks, the other party may not agree, but making a late offer can undermine your credibility.
Splitting the differences between all the parties means all agreeing to move to the middle ground to reach a deal.	Neither party will feel they have lost, this is a good example of a win/win agreement which is the ideal goal for negotiations.
Offering two acceptable alternatives encourages agreement but different attractive choices.	There is no guarantee that the other party will agree to either of the choices, and it is difficult to find two equally attractive alternatives.
Introducing new Incentives or Sanctions putting pressure on the other party to agree.	Hostility can be caused, can alter the whole balance of power and force agreement.
Introducing late new ideasprovides new incentive for new discussion and agreement.	Allows room to maneuver and to make new concessions; or can undermine credibility.
Adjournment due to stalemate to allow each side to re-consider what would happen if there is no agreement.	Positions can change after consulting experts, and it can be difficult to reconvene again, resulting in serious consequences for both sides

Helping the Other Party to Move to Closure.

METHODS	LIKELY RESULTS
Emphasising Benefits: Concentrate on explaining how the deal will benefit the opposition, but avoid saying how it will benefit you.	This helps the other party to see advantages in agreeing a deal that they had not considered before, and creates the perception of a win/winrather than win/lose situation.
Encouraging and Applauding:Welcome constructive proposals by the opposition no matter how late they are presented.	This createsa positive mood and allows you to avoid criticism of your counter-proposals and avoids antagonism.
Avoiding a Win/Lose result: Say that you are looking for an outcome acceptable on both sides and do not push for an outcome that will be repudiated by the opposition in future.	This avoids confrontations which often result in deadlocks, fosters constructive discussions and allows sensible counter-proposals to be made by the opposition.
Saving Face: Give the opposition an escape route by posing hypothetical proposals such as,”How would you feel if…?” or “What if…?”	This increasesthe chances of your proposals being given proper consideration and the opposition feeling less under pressure from you.

Now Assess your own Negotiation Ability. 208

MAKING PRESENTATIONS

Whether you are an experienced speaker or a beginner you must improve your presentation skills to enhance your credibility by planning, preparation and practice which are the secrets of making a good effective presentation.

You must decide before you prepare, what you want to communicate to you audience and focus on the purpose of your presentation at every stage to ensure that your preparation is relevant and efficient. Your strategy will depend on the type of message you wish to deliver; the nature of your audience; and the physical surroundings of the venue.

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