
Forming a Negotiation Team
April 7, 2008Forming a solid negotiation team is critical to a successful negotiation. I often see negotiation teams that are too big and lacking in leadership, focus, and unity.
It is the project manager’s job to ensure that the negotiation team is setup for success. This starts with getting the right people on the team and the wrong people off the team. I recommend the following:
- Keep the decision-makers off the team. They should be in the background and unreachable by the opponent.
- Only include people who have a clear role. Keeping the team small will eliminate contradicting actions/statements and speed up the process.
- Ideal team includes a project manager, business lead, procurement lead, contracts lead, and legal counsel. If possible, have the project manager represent the business in place of the business lead.
A project manager’s primary job in the negotiation is to lead the negotiation team. This will include building the team, defining the priorities, planning the negotiation process, and managing execution of the plan.
A project manager should insist that negotiations do not begin until the negotiation team has a clear idea of what deal is acceptable, what deal will be targeted, and the strategy and tactics that will be used to achieve the target deal. By planning this process in advance of the negotiations, the project manager ensures that the negotiation team will have laser focus (clarity) in the negotiating room.
Project managers must understand their role in the negotiation and clearly define roles for the rest of the team. Ideally, a project manager is the objective facilitator who keeps the team at the table (aka good cop). The procurement lead is the negotiator who drives hard for the best possible deal terms (aka bad cop). The contracts lead is responsible for ensuring that the contract clearly articulates what both sides are agreeing to. The legal counsel’s job is to advise the team on risk and the law. Clearly defining and reviewing these roles prior to a negotiation will ensure team unity during the negotiation.
There are many other considerations in building a negotiation team for success but these tips will get you started down the right path. Please share your ideas on the composition of a successful negotiation team.
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