5 Key Negotiation Skills Every Project Manager Needs
- Adilla
- Aug 4
- 5 min read
Communication is an essential skill for project managers to have. However, that may not be enough when it comes to negotiation. There is a delicate balance of agreeing to your stakeholders’ needs while matching your team’s abilities. So, does your belt of project management skills have the right principles for negotiation?
Table of Contents
Why Negotiation Is a Core Skill for Project Managers
Negotiation is one of the project management skills that is crucial to have. While the goal is to match the stakeholders' expectations, project managers would have to keep in mind the interests of other parties as they reach a satisfying agreement. They would also have to consider resource allocation, deadlines, and budgets, plus resolving conflicts.
5 Key Principles of Good Negotiation
Preparation
Before even stepping into the negotiation phase, project managers need to gather the right information, priorities, and objectives. This will prepare them to understand the right way to pull the discussion and make informed decisions when the negotiation begins.
Build Trust
Trust is a powerful tool for project managers to prove to the stakeholders that they have a good rapport and can deliver their expectations. So, demonstrate active listening, respect, and empathy; this will build a positive relationship and improve discussions to be more productive.
Focus on Interests
Project managers will encounter fellow leaders and decision-makers with reputable positions, but it is best not to focus on that. By knowing what drives them and their concerns when stepping into a project, finding the common ground and mutual benefits of both parties would ease the negotiations.
Willing To Make Compromises
It is rare for negotiations to have agreeable objectives that match both parties, so as project managers, find what you can compromise on to ensure objectives are aligned.
Adaptable and Open-Minded
Other than having to make compromises, project managers would have to be adaptable and open to experimentation on their projects. Especially if they are in an industry that is constantly evolving, so sometimes changes would have to be made in the middle of a project's progress.
3 Common Scenarios in Creative Projects
When it comes to the creative industry, there are scenarios where negotiation skills would be needed beyond just forming a creative project.
Scope Creep and Changes
Scope creep happens when something that is beyond the team’s control occurs. This is when the project’s goals expand beyond what was agreed upon. Project managers would negotiate with their team what is feasible within the initially agreed-upon timeline. If not, they would have to negotiate with the stakeholders and state the boundaries of the project and what changes are acceptable.
Specific Resource Allocation and Budget Constraints
Creative projects come with specific resources, whether they are tools or time itself, while trying to stick to a specific budget. Negotiating adjustments and balancing the demands of different teams and departments is a scenario that project managers are familiar with. With good negotiation skills, they’ll be able to find what to prioritise and what is crucial for the project.
Creative Direction and Approval
This can be difficult, as not everyone shares the same creative direction at times. So, approval might take a while, and delays would cause frustration. Project managers would have to facilitate and build an agreed creative direction that could work with everyone in the team.
How to Handle Difficult Stakeholders?
Negotiations are rarely smooth and unproblematic when it comes to dealing with difficult stakeholders. Here are the negotiation tips for managers:
Win-Win
To achieve a win-win situation with your stakeholder, you have to identify their interests. What’s important to them? Where do they put their values when running a project? Analyse what works for both you and your stakeholders to create a win-win situation.
BATNA
This stands for Best Alternative to a Negotiated Agreement and is a favourable option if you cannot seem to reach an agreement during the negotiation. However, this needs preparation on your part to identify what the alternatives are that you are willing to negotiate with the stakeholders.
By providing options, it proves that you are not desperate for a quick deal, increasing your rapport. Being able to bargain during your negotiation could also prevent you from settling for less than what you and your team deserve or trying to fulfil unrealistic demands.
Active Listening
This seems like common sense, but not everyone knows how to be an effective active listener. It’s not only about their verbal communication but also the nonverbal cues of their body language. For example, from whether their enthusiasm matches their body movement, you would know if they were engaged in the conversation or if you’re reflecting the same energy as them.
Key Takeaways
Negotiation is a project management skill that balances communication and connection, whether to start a project or within a project's progress.
How to negotiate better holds the key to establishing a long-term relationship with stakeholders, as it builds trust and rapport for project managers.
Frequently Asked Questions (FAQs)
How do project managers negotiate scope and deadlines?
Project managers negotiate scope and deadlines by being clear about what the project requirements are and by communicating proactively and documenting all the agreements.
How can project managers deal with clients who don’t respect timelines?
Project managers can effectively manage these clients by being clear about the boundaries of the project timelines while implementing proactive strategies when the project progresses.
How do PMs improve communication in tough negotiations?
PMs can improve communication by focusing on active listening and encouraging an open dialogue when encountering tough negotiations. It’s also important to manage emotions constructively when this happens.
Author Bio
With a background in Arts English, Adilla has been a casual writer for various hobbies, like parodies of animated shows and plots for board games. She loves to read anything and everything from fantasy stories to articles on tips and tricks. Now an advocate for mental health and effective project management for the creative industry. Currently, Adilla resides in Malaysia and is a creative writer at TESSR. To know more about her, check out her LinkedIn.
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