TAILIEUCHUNG - Negotiations in project sales and delivery process: An application of negotiation analysis

The manager chose two people from her own department to work on the project. She also asked a programmer from data processing to join her team. They met, discussed the project, and decided upon a schedule and deadlines. Then the manager assigned her two employees specific responsibilities. One was asked to design reports that would meet the treasurer’s criteria. The other was asked to define file requirements and changes in input. The two were to meet periodically with the programmer to discuss program changes. The manager’s area of responsibility was to ensure that each employee’s goals were being met and that each phase was being completed on. | Helsinki University of Technology Laboratory of Industrial Management Report 2005 3 Espoo 2005 Negotiations in project sales and delivery process An application of negotiation analysis Jarkko Murtoaro Jaakko Kujala Karlos Artto Helsinki University of Technology 5500 FIN-02015 HUT Finland Phone 358 9 451 4874 Fax 358 9 451 3736 Internet http . ISBN on 951-22-7839-1 print ISBN 951-22-7840-5 online ISSN 1459-806X print ISSN 1795-2018 online Monikko Oy Espoo 2005 - ii - What this report is about Contemporary project business is characterized by networks of companies subprojects and participating individuals. The orchestration of a project network towards its ultimate goal requires simultaneous negotiation with multiple parties. Without appropriate negotiation practices between project parties in place even the finest engineering solutions or most innovative contracting methods for organizing project activities will remain abstract and ineffective in achieving the ultimate goals of the project. Yet mastering negotiations with multiple partners first requires mastering the simpler case of negotiations between two major parties which in a project setting translates into searching for win-win solutions between a project contractor and a project client. This report interprets the entire process of selling and delivering a project as a negotiation process. We suggest that negotiations between the contractor and the client occur throughout the lifecycle of a project delivery with different emphasis in different phases. The simplistic and static to-the-plan or by-the-contract focus on managing project activities is suggested to be enhanced by a dynamic negotiation process. Such a negotiation-oriented approach shifts project management towards a more meaningful continuous search of ever more appropriate business solutions for the client. In addition the negotiation-oriented approach emphasizes a contractor s continuous management of customer relationships .

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