40 Days to PMP Exam Success 2022 📚💎Day #8 (Negotiate Project Agreements)

Project Management Training: Negotiating Project Agreements

In this section, Phil discusses negotiating project agreements in project management, emphasizing the importance of analyzing negotiation boundaries, assessing priorities, and verifying objectives to achieve win-win outcomes.

Negotiation Boundaries and Priorities

• Analyze the bounds of negotiations to understand what is within and out of bounds.

• Assess priorities to determine key negotiation objectives for a successful outcome.

Verifying Objectives and Win-Win Collaboration

• Verify project agreement objectives to ensure alignment with desired outcomes.

• Emphasize the concept of "win-win" where both parties collaborate for an optimal outcome.

Story Points and Negotiation Strategies

• Consider story points in negotiations related to features and customer value.

• Use data and candor in negotiations to avoid promising unachievable goals.

Ethical Negotiations and Participation

• Participate ethically in agreement negotiations without resorting to unethical tactics.

• Uphold verbal agreements as part of ethical negotiation practices in project management.

Best Alternative to a Negotiated Agreement (BATNA)

• Determine a negotiation strategy by identifying the best alternative if initial negotiations fail.

Negotiation Strategies and Contract Types

In this section, negotiation strategies, best alternative to a negotiated agreement (BATNA), and different contract types are discussed in the context of project agreements.

Negotiation Strategies

• Negotiation theory emphasizes having a BATNA as the most advantageous alternative if negotiations fail.

• : Talks about the importance of having a backup plan in negotiations.

• Win-win negotiation is crucial, but parties should be prepared with alternatives if win-win is not achievable.

• : Emphasizes the need for readiness to consider other options beyond win-win scenarios.

• Parties can find mutually beneficial solutions even when win-win is not feasible.

• : Mentioned that both parties can still be content with the outcome.

Understanding Contract Types

• Importance of understanding contract types and nuances in negotiating project agreements.

• : Encourages awareness of various contract types and their implications.

• Reference to specific chapters for detailed information on contract types in PMBOK Guide and Agile Practice Guide.

• : Highlights Chapter 12 in PMBOK Guide and pages 77-78 in Agile Practice Guide for contract type details.

Effective Negotiation Techniques

• Utilizing empirical data like story points for evidence-based negotiations.

• : Suggests using historical data for effective negotiation strategies.

• Caution against overpromising during negotiations to avoid team strain or unfulfilled promises.

• : Advises against committing to unrealistic expectations during negotiations.

Exam Preparation Tips

• Reminder about progressing through tasks and utilizing study resources like PMP Exam Immersion book.

• : Encourages using study materials for better exam preparation.

• Emphasizes the importance of practice questions and rationale analysis for exam readiness.

• : Stresses on practicing questions and understanding rationales for improved focus.

Contract Type Selection Scenarios

This section delves into scenarios where specific contract types are recommended based on project requirements and ethical considerations.

Scenario Analysis: Shipping Contract

• Analyzing a scenario involving shipping raw materials globally dispersed partner locations within close proximity.

• : Presents a scenario requiring selection of an appropriate contract type based on defined parameters.

• Applying process of elimination to identify suitable contract type (Fixed Price).

• : Discusses reasoning behind selecting Fixed Price contracts based on scenario specifics.

Subcontracting Project Evaluation

• Evaluating subcontracting firms negotiation scenario for a turnkey project with predictable work requirements.

• : Explores selecting a suitable contract type considering incentivizing sellers and project predictability.

• Identifying Fixed Price Incentive Fee (FPIF) as the optimal choice based on well-defined requirements without scope changes.

Working on an Agile Aviation Administration Project

The discussion revolves around a project aiming to revolutionize air travel through technological advancements and the CEO's request to commit to 200 story points during sprint six.

Agile Project Commitment

• Negotiate based on empiricism, using real data for predictions.

• Consider the cone of uncertainty when negotiating story points.

• Negotiation should not be based on personal judgment or goodwill but on empirical data.

Decision Making in Agile Projects

Jack Brown manages an agile project for California's high-speed rail. The scenario involves a non-negotiable element and choosing the appropriate approach.

Choosing the Right Approach

• Avoid predictive approaches in largely agile projects.

• Eliminate options that are not incremental or collaborative.

• Opt for a hybrid approach in a largely agile setting.

Negotiation Models in Business

Exploring negotiation models, particularly focusing on a situation where collaboration breaks down due to a top executive's involvement.

Understanding Negotiation Models

• Differentiate between win-win, lose-win, zero-sum, and lose-lose scenarios.

Questions and Recommendations for Day 8

In this segment, the speaker provides instructions for the day's tasks, including reading recommended pages, utilizing an immersion book available on a specific site, and engaging with daily quizzes.

Instructions for Daily Tasks

• Questions and recommended readings are highlighted for the day.

• Emphasis is placed on using the immersion book found on a particular site to aid in task completion.

• Encouragement is given to engage with daily readings and quizzes from the immersion book.

• The importance of consistency in completing tasks each day is stressed for long-term benefits.

• Viewers are reminded to catch up on missed days by referring back to previous videos.