Commercial Project Management

Description of topics including reading samples

Learning outcomes of the unit

Learnings from your experience, this and prior unit reading, assignments

Supporting documentation including your prior learning

Week 5 Topic: Communicating in Commercial Negotiation vs. Project Communication.

Collaborative Project Procurement Arrangements (2015) by Derek H. T. Walker and Beverly M. Lloyd Walker;

3. Differentiate methods of project negotiation, conflict management, and stakeholder engagement across projects consisting of differing technology standards and asset lifecycles.

The objective of this week’s topic is to make sure you have an appreciation of the Role of the Project Manager in Commercial Negotiation.

Try to ask yourself the questions that were in the slides in this week’s lecture:

1. In what way, would our approach to the Negotiation Interaction Process vary because of the Economic Logic, or the Strategic Logic, or the Tactical/Pragmatic Logic?

Ans: Project Negotiation Process entails steps from the planning stage of a project to its closure and implementation. In project negotiation, ground rules are defined, scope of project clarified and justified by the stakeholders, and bargaining done in view of the scope and problems involved in the project (Meredith et al., 2016). Economic logic in the negotiation will focus on how the project is likely to meet the expected returns within a defined time. When economic logic is used, the emphasis of negotiation would be minimizing the project cost and maximizing potential returns. On the other hand, if strategic logic used, negotiation will revolve around the problems that the project anticipates to solve in the long term rather than the theory of reference (Meredith et al., 2016). Tactical logic will mean that the project manager is most interested in how to achieve short term goals and objectives of the projects. The emphasis on how to move from the present to the desired state through project implementation.

2. In what way, would the Governance ‘Hard’ features impact on our approach to the Negotiation Interaction Process and Negotiation?

Ans: Hard governance in project negotiation is concerned with strict adherence to matters of law by adopting binding directives and regulations during the negotiation process. Adopting hard governance means that the project manager will have formal and bureaucratic procedures (Muller, 2017). The project manager will also seek to understand punishment procedures in case any of the stakeholders breaches the contract agreement. The project manager will also want to emphasize on the roles and responsibilities of the concerned parties. All these features must be defined during the negotiation when governance hard is anticipated by the project manager.

3. In what way, would the Governance ‘Soft’ features impact on our approach to the Negotiation Interaction Process and Negotiation?

Ans: Governance soft is perceived as non-binding, flexible, and informal negotiations that will guide the performance of the project. Governance soft is defined by less authoritative structures, increased participatory leadership, and minimal interventionist strategies. A project manager that anticipates governance soft will therefore adopt situational leadership by handling emerging issues within the project dynamically (Muller, 2017). The manager will also influence the stakeholders in the negotiation process to consider delegation of authority, construct well-oiled teams that require minimal supervision. There will also be a need to install a governance mechanism that guarantees flexibility while remaining formal enough to ensure competent persons make decisions at appropriate levels.

4. In what way, would the Accountability and Transparency features of Governance impact on our approach to the Negotiation Interaction Process and Negotiation?

Ans: Accountability and transparency will impact the project manager’s negotiation process. Accountability means that the negotiation process will define individuals responsible for project performance at throughout the implementation process (Meredith et al., 2016). On the other hand, transparency will entail determining the project scope and allowing stakeholders to evaluate the progress of the project and whether it meets defined milestones

5. In what way, would our approach to the Negotiation Interaction Process and Negotiation Methods vary because of the Tame, Messy, Wickedness, or Complexity of the project?

Ans: One of the most ill-conceived ideas in project management is that it is possible to control the project future variables. The problem become even complex because the project manager has to identifying and measure risks during negotiation process. Tame problems are simple, linear and easily solved while messy problems are fairly complex with interdependent problems that must be evaluated holistically (Muller, 2017). Project manager must be careful during the negotiation process to ensure that the project scope does not contravene cultural beliefs in what would be described as wicked project. Wicked projects are not only ethically unacceptable but also present complex behavioural problems to the project manager since they interact and co-exist; a scenario called wicked mess (Meredith et al., 2016). The project manager must guide the negotiation process to ensure stakeholders understand the limitations of the project and the appropriate risk management techniques that would be used

PPMP20011 Unit Profile

PPMP20011 Moodle Web site

Have you any insights you can add from other units you have studies or readings you’ve made?

Are any of the activities above relevant to your reflections for the learning outcomes on the right?

4. Explain and apply methods of identifying and reconciling inconsistent and conflicting objectives and drivers that develop, maintain and manage relationships and communication with key stakeholders.

1. What is Project Communication (see PMBOK chapter 10)?

Project communication involves delivering information regarding the scope of the project, the roles played by individuals in the project team and the expectations from each all stakeholders. In informal negotiations, rules of engagement are generated during negotiations and these rules form the basis for communication in formal negotiations

2. What Communication is required in Commercial Negotiation?

In commercial project negotiation, communication ought to be formal, following prescribed structures of communication. Communication focuses on substantive issues where offers and counter-offers are made (Meredith et al., 2016)

3. What communication can we identify in the Channel Tunnel Project?

In the Channel Tunnel Project communication was poor and informal. The negotiation process failed to disclose rules regarding who to generate reports about the project and the kind of information to include in the reports. British and French teams communicated poorly leading to delays in completion of the project and increased costs (Muller, 2017). Communication channels were not well-defined.

4. What lack of communication can we identify in the QLD Health Payroll situation?

The report by Commissioner Richard Chesterman disclosed that the state did not communicate adequately with stakeholders. The state agency did not communicate appropriately with the IBM regarding the business requirement for the total number of personnel required at Queensland Health (Grosser, 2013). The inadequate communication resulted in variations in contract terms including price and time-frame

Have you any insights you can add from other units you have studies or readings you’ve made?