Dealing With Unreasonable People

Most people working on projects realize that in the long run it is beneficial to work toward mutually satisfying
solutions. Still, occasionally you encounter someone who has a dominant win/lose attitude about life and will be
difficult to deal with. Fisher and Ury recommend that you use negotiation jujitsu when dealing with such a person.
That is, when the other person begins to push, don't push back. As in the martial arts, avoid pitting you strengths
against theirs directly; instead use you skill to step aside and turn their strength to your ends. When someone
adamantly sets forth a position, neither reject it nor accept it. Treat is as a possible option and then look for the
interest behind it (the hidden agenda is always a possibility?). Instead of defending your ideas, invite criticism and
advice. Ask why it's a bad idea and discover the other's underlying interest (agendas?).

Those who use negotiation jujitsu rely on two primary weapons. They ask questions instead of making statements.
Questions allow for interests to surface and do not provide the opponent with something to attack. The second
weapon is silence. If the other person makes an unreasonable proposal or attacks you personally, just sit there and
don't say a word. Wait for the other party to break the stalemate by answering your question or coming up with a
new suggestion.

The best defense against unreasonable , win/lose negotiators is having what Fisher and Ury call a strong BATNA
(best alternative to a negotiated agreement). They point out that people try to reach an agreement to produce
something better than the result of not negotiating with that person. What those results would be (BATNA) is the true
benchmark for determining whether you should accept an agreement. A strong BATNA gives you the power to walk
away and say, "No deal unless we work toward a win/win scenario."

Your BATNA reflects how dependent you are on the other party. If you are negotiating price and delivery dates and
can choose from a number of reputable suppliers, then you have a strong BATNA. If on the other hand there is only
one vendor who can supply you with specific, critical material on time, then you have a weak BATNA. Under those
circumstances you may be forced to concede to the vendor's demands. At the same time, you should begin to
explore ways of increasing your BATNA for future negotiations. This can be done by reducing your dependency on
that supplier. Begin to find substitutable material or negotiate better lead times with other vendors.

Negotiating is an art. There are many intangibles involved. Given the significance of negotiating before and during
the project life-cycle, project managers are encouraged to read Fisher and Urys' book (on Principled Negotiation ...
and the BATNA) as well as others on negotiating. In addition, attending training workshops can provide an
opportunity to practice these skills. You should also take advantage of day-to-day interactions to sharpen negotiating
acumen.

The Art of Negotiating

Effective negotiating is critical to successful partnering and to successful projects. All it takes is one key discussion to
break down and unravel a partnering arrangement (or project / project alliance). At the same time, negotiating is
pervasive through all aspects of project management work. Project managers must negotiate support and funding
from top management. They must negotiate staff and technical input from functional managers. They must
coordinate with other project managers and negotiate project priorities and commitments. They must negotiate
within their project team to determine assignments (taskings), deadlines (deliverables), standards (quality), and
priorities. Project managers must negotiate prices and standards with vendors and suppliers. A firm understanding of
the negotiating process, skills, and tactics is essential to project success.

Many people approach negotiating as if it is a competitive contest. Each negotiator is out to win as much as he or she
can for his or her side. Success is measured by how much is gained compared with the other party. While this may
be applicable when negotiating the sale of a house, it is not true for project management. Project management is not
a contest! First, the people working on the project, whether they represent different companies or departments
within the same organization, are not enemies or competitors but rather allies or partners. They have formed a
temporary alliance to complete a project. For this alliance to work requires a certain degree of trust, cooperation,
and honesty. Second, although the partners within this alliance may have different priorities and standards, they are
bound by the success of the project. If conflicts escalate to the point where negotiations break down and the project
comes to a halt, then everyone loses. This, unlike bartering with a street vendor, the people involved on project  
work have to continue to work together. Therefore, it behooves them to resolve disagreements in a way that
contributes to the long-term effectiveness of their working relationship. Finally, conflict on projects can be good.
When dealt with effectively it can lead to innovation, better decisions, and more creative problem solving.

Project managers accept this noncompetitive view of negotiation and realize that negotiation is essentially a two-part
process: The first part deals with reaching an agreement, the second part is the implementation of that agreement.
It is the implementation phase, not the agreement itself, that determines the success of negotiations. All too often,
managers reach an agreement with someone only to find out later that they failed to do what they agreed to do or
that their actual response fell far short of expectations. Experienced project managers recognize that implementation
is based on satisfaction not only with the outcome but also with the process by which the agreement was reached. If
someone feels they have been bullied or tricked into doing something, this feeling will invariable be reflected by
halfhearted compliance and passive resistance.

Veteran project managers do the best they can to merge individual interests with what is best for the project and
come up with effective solutions to problems. Fisher and Ury from the Harvard Negotiation Project champion an
approach to negotiating that embodies these goals. It emphasizes developing win/win solutions, while protecting
yourself against those who would take advantage of your forthrightness. Their approach is called principle
negotiation and is based on four key points as below:

  • Separate the people from the problem.
  • Focus on interests, not positions.
  • Invent options for mutual gain.
  • When possible, use objective criteria.

The Ultimate Success - Effective Customer Interface

Ultimate success is not determined by whether the project was completed on time, within budget, or according to
specifications, but whether the customer is satisfied with what has been accomplished. Customer satisfaction is the
bottom line. In today's competitive world where information flows freely, reputation is essential to long-term
success. As advocates of the total quality revolution are quick to point out, there is about an 8:1 ration between the
communication of customer dissatisfaction and satisfaction. This means that for every satisfied customer who shares
his satisfaction regarding a particular product or service with another person, a dissatisfied customer is likely to
share her dissatisfaction with eight other people. Bad news travels faster and farther than good news. Project
managers need to cultivate positive working relations with clients to ensure success and preserve their reputations.

As stressed in the executive education courses and the MBA elective I teach, the "gaining and maintaining
alignment" and "managing customer expectations" are the two key areas of project management focus. If these are
done very well, the project results should be acceptable. If not, problems generated from lack of this recommended
focus can torpedo a project and your reputation.

Customer satisfaction is a complex phenomenon. One simple but useful way of viewing customer satisfaction is in
terms of "met" expectations. This can be modeled as a ratio, with perceived performance divided by expected
performance. It the ratio is 1.00 or more (preferably about 1.05 vs. 1.5) then satisfaction. If less than 1.00 then
dissatisfaction. The met expectations model of customer satisfaction highlights the point that whether a client is
dissatisfied or delighted with a project is not based on hard facts and objective data, but on perceptions and
expectations. Project managers must be skilled at managing customer expectations and perceptions. Proactive
project managers do not wait to reactively explain situations, but start shaping proper expectations up front and
accept that this in an ongoing process throughout the life of the project.

Effective Customer Interface - Managing the Client on a Project

Rules of Engagement:

Speak with one voice. Nothing erodes confidence in a project more than for a customer to receive conflicting
messages from different project members. The project manager should remind team members of this fact and work
with them to ensure that appropriate information is shared with customers.

Speak the language of the customer. Too often project members respond to customer inquires with technical jargon
that exceeds the customer's vocabulary. Project managers and members need to describe problems, trade-offs, and
solutions in ways that the customer can understand.

Where Do We Go From Here?

More and more companies are seeking cooperative arrangements with each other to compete in today's business
world. Project partnering represents a proactive response to many of the challenges associated with working with
people from different organizations. Before the project is started, significant time and effort are invested up front to
build relationships among stake-holders and develop agreed-upon procedures and provisions for dealing with
problems and opportunities before they happen. These procedures typically include joint assessments of how well
the partnering arrangement is working, escalation guidelines for resolving disputes in a timely and effective manner,
and provisions for process improvement and risk sharing. Persistent leadership is required to make partnering work.
Project managers must "walk the talk" and consistently display a collaborative response to problems. Similarly, top
management must consistently and visibly champion the principles of openness, trust, and teamwork.

Partnering is not limited to contacted relationships. More and more companies are applying the partnering approach
to managing internal projects involving different subsidiaries and departments.

Effective negotiating skills are essential to making partnering work. People need to resolve differences at the lowest
level possible in order to keep the project on track. Veteran project managers realize that negotiating is not a
competitive game and work toward collaborative solutions to problems. They accomplish this by separating people
from the problem, focusing on interests rather than positions, inventing options for mutual gain, and relying on
objective criteria whenever possible to resolve disagreements. They also recognize the importance of developing a
strong BATNA, which provides them with the leverage necessary to seek collaborative solutions.

Customer satisfaction is the litmus test for project success. Project managers need to take a proactive approach to
managing customer's expectations and perceptions. They need to actively involve customers in key decisions and
keep them abreast of important developments. Active customer involvement keeps the project team focused on the
objectives of the project and reduces misunderstandings and dissatisfaction.
AllenWeb Site - since 1995
Dealing with Unreasonable People - Dec 1999
Project Management
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