Conflicts often occur in projects and are often already in the nature of the matter: The participants pursue different goals, the employees hardly know each other, the client has “political” intentions with the project. This leads to conflicts that affect your work in the project if they are not identified and resolved in time.
Table of Contents
Negotiating and Getting Commitment
At some time during an assignment you will negotiate and manage conflict.
How Successful Negotiators Plan
- Amount Of Planning Time
Allocate time; it is not the amount of planning time, which makes for a successful negotiation but how that time is used. - Exploration of Options
Consider a wide range of outcomes or options for action. The average negotiator considers few options and is less likely to consider options, which might be raised by the other party. - Common Ground
The more successful negotiators concentrate on the common ground areas. A relatively high concentration on common ground areas is known to be an effective strategy, notably with “pull” styles of persuasion in selling. - Long-Term or Short Term
Pay special attention to the potential long-term issues and do not just concentrate on the short-term. - Setting Limits
Successful negotiators are more likely to set upper and lower limits and to plan in terms of a range. By contrast, less skilful negotiators tend to plan their objectives around a fixed point. - Sequence and Issue Planning
Negotiators of average ability place very heavy reliance on sequence planning. “First I’ll bring up A, then lead to B, and after that I’ll cover C and finally go on to D”.
The negotiator begins with point A and the other party is only interested in point D. This can put the negotiator into serious difficulty, especially if he still goes from a to b to c to d. You will find it is much better to focus on
issues.
Skilled negotiators tend to plan around each individual issue in a way which is independent of any sequence. Successful negotiators consider issue C, for example, as if issues A, B and D do not exist.
They also try to avoid sequence links between a series of issues. This concept is called issue planning and its clear advantage over sequence planning is its flexibility.
The Behaviour of Successful Negotiators – face-to-face
Successful negotiators use certain types of behaviour significantly more frequently while other types of behaviour are avoided.
- The Irritators
Probably the most frequent example of these is the term “generous offer”: a negotiator to describe his own proposal uses this.
Similarly, words such as “fair”, “reasonable” and other terms with a high positive value loading, have no persuasive power because of the implication that they are unfair, unreasonable and so on. The skilled negotiator tends to avoid them. - Counter Proposals
During negotiation frequently one party puts forward a proposal and the other party immediately responds with a counter-proposal. Skilled negotiators make counter-proposals much less frequently than more average negotiators. - Defend / Attack Spirals
- Take a SITUATION
- This situation will affect your FEELINGS (Positive/negative)
- In turn your feelings will affect your ATTITUDE
- And this will lead to your BEHAVIOUR
Since negotiation sometimes involves conflict, negotiators may become heated and use emotional or value-loaded behaviours.
Once initiated, this behaviour tends to form a spiral of increasing intensity: one negotiator attacks, the other defends him/herself, usually in a manner which the first negotiator perceives as an attack. In consequence, the first negotiator attacks more vigorously and the spiral commences.
Less skilled negotiators in particular are more likely to react defensively. using comments such as “You can’t blame us for that” or “It’s not our fault that the present difficulty has arisen”. Such comments frequently provoke a sharp defensive reaction from the other side of the table.
- Behaviour Labelling
Skilled negotiators try to give an advance indication of the class of behaviour they are about to use. So, for example, instead of just asking, “How many units are there?” they would say, “Can I ask you a question
how many units are there? giving warning that a question was coming. Instead of just making a proposal they would say “If I could make a suggestion….. and then follow this advance label with their proposal. - Testing Understanding, Summarising and Reflecting
The skilled negotiator uses a high level of these behaviours, reflecting his concern for clarity and the prevention of misunderstanding.
- Testing understanding is a behaviour which checks to establish whether a previous contribution or statement in the negotiation has been understood.
- Summarising is a compact restatement of previous points in the discussion. Both behaviours sort out misunderstandings and reduce misconceptions.
- Reflecting turning the other party’s words back in order to obtain further
responses, for example, “So do I understand that you are saying you don’t
see any merit in this proposal at all?”
- Asking Questions
Skilled negotiators ask a significantly high number of questions during negotiations. Questioning techniques are important for negotiating success. - Feelings Commentary
“Giving Internal Information The effect of giving internal information is that the negotiator appears to reveal what is going on in his mind. This revelation gives the other party a feeling of security because such things as motives appear to be explicit and above board.
Feelings commentary. The skilled negotiator is more likely to comment on his own feelings, saying something like, “I’m uncertain how to react to what you’ve said. Can you help me resolve this?” The expression of feelings is directly linked to establishing trust in counselling situations. It is probable that the same is true of negotiating. - Argument Dilution
The skilled negotiator uses fewer reasons to back up each of his arguments, the more reasons advanced the more a case is potentially diluted. The poorest reason is the lowest common denominator: a weak argument generally dilutes a strong one.
The skilled negotiator tends to advance single reasons insistently, moving to subsidiary reasons only in his main reason was clearly losing ground.
The Negotiation Process
Before you start any negotiation make sure that:
- Preparations are complete before opening the negotiation conference.
- Team support is available when needed.
- You have an agreed position
- You have ‘breaks’ on the agenda
On arrival make sure that you:
- Greet the contractor’s team.
- Briefly review background information.
- Emphasise the goal of a win/win outcome.
- Review the negotiation agenda.
- Specifically, ask if there are any items that need to be added to the agenda.
During the negotiation make sure that:
- You review facts and identifying negotiation issues and ensure that
- both parties feel that the general facts and issues are clear.
- Conduct additional fact-finding before opening negotiations.
- Summarise areas of agreement and issues for negotiation. Sometimes an attempt to summarise areas of agreement will identify issues not previously identified. It is better to identify them now rather than after
negotiations are complete. - Follow your negotiation plan.
- Maintain the initiative throughout discussions by following your
negotiation plan. - Use your agenda to address the issues.
- Ask questions. Listen and evaluate the answers for responsiveness, truth, and consistency. Listening will minimise the probability of misunderstanding and show that you have a genuine interest in what the supplier’s negotiator is saying.
- Employ appropriate tactics and countermeasures to achieve win/win results.
- Begin bargaining by seeking agreement on requirements
Once you have an agreement, you can proceed with bargaining on other things e.g. contract price and others.
- Bargain for a fair and reasonable price. That means you should be willing to negotiate up when the proposed price is unreasonably low or negotiate down when the proposed price is unreasonably high.
- Remember that your pricing objective should be a price that is fair to all parties
- Review areas of agreement before you begin bargaining and periodically throughout negotiations until you have an overall agreement.
Resolve issues as they arise
Your initial approach to resolving issues should be to:
- Work with the contractor’s negotiator to identify alternatives. Together, you may be able to identify alternatives that are better than any of the original positions.
- When you make a concession, attempt to obtain a concession of at least equal importance in return. The concession may be on the same issue or a different issue. Remember that concession that is relatively unimportant to you may be very important to the contractor.
- Keep a written record of offers, counteroffers, agreements, and unresolved issues.
Reach agreement.
If the other negotiator is reluctant:
- Emphasise the advantages of the proposed agreement, and then,
- Offer assurances, such as, “this is a good agreement for everyone,” or “I am confident that we both have a good deal;”
Close
Close once an agreement is reached.
- Review key elements of the agreement. A review will protect negotiators from finding out later that they actually agreed to different things.
- Offer a handshake on the agreement. A handshake (or whatever after covid-19) is a symbolic gesture of mutual agreement.
Reviewing the negotiation
Most skilled negotiators claim that they always set aside some time after a negotiation to review it and consider what they had learned. Just under half of the average negotiators, in contrast, made the same claim. See this as an opportunity for continuous improvement.
Dealing with Conflicts and Problems
There are many ways you can deal with conflict for example see your SDI profile. We suggest that the first thing to do, is to find the possible cause.
Conflict Positions
- Tension and Hostility: There is little or no communication and any that there is will not be trusted. If one side suggests something, the other regards it as a trick. There is no give and take as giving anything is seen as surrender.
- Secrecy suspicions and mistrust: The other side is going to do something to take advantage.
- Lack of communication: There is an absence of good communication and often a loss of contact.
- Position taking: People keep to their position; there is no movement.
- Internal view: People become bigoted and have an inward way of looking at things. Their positions dominate and become the main point of discussion
Conflict Models
- The Football model: You keep score of the number of goals that you have scored. Rules are placed to stop one side taking advantage over the other. Note how well this worked when England played Brazil.
- The Business Competition model: An open market where people compete against each other. The successful build on their success, the others try to undermine them.
- Arm Wrestling: Rather than go into a full battle, the two competitors sit down and contest in simple combat. Their relevant strength is then tested,
Conflict Factors
- Fear: There may be the fear of losing and being seen to have lost.
- The Business Competition model: An open market where people compete against each other. The successful build on their success, the others try to undermine them.
- Arm Wrestling: Rather than go into a full battle, the two competitors sit down and contest in simple combat. Their relevant strength is then tested.
Conflict Factors
- Fear: There may be the fear of losing and being seen to have lost.
- Force: If there was no force, there would be no conflict. There are different ways that force can manifest itself: Physical, moral, emotional, approval, disapproval
- Fair: Each side believes themselves to be right and the others to be wrong.
- Funds: If most conflicts were costed in the first place, most would never start.
Resolving Conflict
Go to “win win”. Here are some approaches
- Benefit Trading: Create a joint situation that will produce benefits for both sides.
- Lateral Thinking: Look at things in a different way to see the other’s view.
- Third Party: Use another person to facilitate.
If there was no force, there would be no conflict. - Objectives, perceptions and benefits: Have the benefits been sold and the objectives met. You need to identify any blockages here.
- Conflict Point: Establish the central conflict point but leave it alone, it is likely that the central point will resolve itself as the others are solved.
- Work Backwards and close on benefits: Look at the issues that got you to the position where you are, and resolve
and establish the points. Identify what you really want to happen.
Deal with the Person
Review your SDI profiles.
- The Dominant: “Is your company good enough to do business with me?”
- The Dependent: “If I buy from you, how will your company look after me?”
- The Detached: “Do your products and service have the best match to the requirements of our company?”
Dominant
- Be confident
- Build up his importance
- Acknowledge his success
- Let him control the meeting (or at least let him think it!)
- Be very professional
- Close him (he’ll expect it)
Dependent
- Be interested in him and his problems
- Control meeting gently
- Use reference stories of how other people have benefited from your products
- Share personal background with him
- Emphasise after-sales service
- Make him feel loved”
- Build a relationship of trust
- Explain how people are affected by new system
- Contact regularly even if it is just to ask him how he is!
Detached
- Keep your statements factual
- Be prepared for long silences
- Provide proof (papers, surveys etc.)
- Appeal to logic (not emotion)
- Ask lots of precise questions
- Offer him access to experts
- Admit lack of knowledge rather than waffle
- Admit one or two weaknesses in unimportant areas)
The risks with each type
Dominant
- He may tell “lies”
- He will resent you going to see his boss or even colleagues at same level
- Keeping control of meetings is difficult
Dependent
- If salesman does not control the meeting, it loses direction
- Beware of the “worm” that turned (If you betray the trust of a dependent, he may become very dominant in his relationship with you)
Detached
- Technicians take control of the meeting
- Get little or no information from him (classic “low reactors”)
Problem resolution and dealing with objections
Confirm objections/problems
- Check to see what is important to the client.
- Indicate what is important to you and any restrictions that may prevail at the time i.e. – things you can do nothing about.
Clarify – Restate or Question
Make sure s/he sees you have identified his/her objectives and restrictions.
- “I think I understand your point, Client, what you really want to know is …… Is that correct?”
- “I think I see what you mean, tell me, is it that…….
If you do this calmly, you can use the objection as a way of making progress:
Cushion (Or Show Client Focus)
Show him/her you understand why s/he feels the way she does and that the objection is fair and reasonable.
- “That certainly is an area many of our clients express concern over prior to making a decision, and I can understand why this is a critical issue for you. Let me say…..”
Answer And Close
Link your proposed solution (or generate an alternative) to a test close:
- “One way we often find acceptable to our clients, is for us to…., would this enable you to go ahead?”
Generate Alternatives and develop potential solutions. There are many other approaches and you may prefer the LACOAC method: Listen, Ask, Close (pre). Question, Ask, Close
I’ll think it over
This is a common avoidance technique and there is a way of dealing with it.
“Of course Mr Androtti, I understand, however, just to clarify my thinking, which aspect of our proposal is it you wish to think over-is it:
- 1 “The technical capabilities of our staff?” “No”
- 2 “How we will integrate with your existing system?” “No”
- 3 “The costs of our solution?” “No”
Go through as many possibilities as you can. You are actually trying to
uncover the truth.
If he still wants to “think about it, you should test this assumption by asking:
- “can appreciate that this is an important decision and one that you want to think about. Will you be consulting with any of your colleagues prior to making a final decision?”
If you are unable to move the client from his “I’ll think it over”, then as a minimum you should get his agreement on how long he wants to think about it, and you should agree a time either to meet him or talk to him on the phone.