PDU Opportunities
In his role, Mr. Jayaram lives and breathes projects. He constantly negotiates with both internal teams and external clients.
In a recent scope negotiation, he had to resolve a conflict when the team’s proposed solution did not meet the customer’s expectations. After listening to both sides, he determined the disconnect was coming from his team.
He says the training he got while preparing for the PMP credential gave him a greater understanding of scope management, risk management and cost management. It allowed him to look at both sides of project issues objectively and provided him with a better sense of how to map objectives and meet stakeholder expectations.
“The comprehensive and structured picture you get from internalizing the content of different knowledge areas and process groups builds higher understanding of concept and framework. This helps makes me a more effective negotiator,” Mr. Jayaram says.
Armed with knowledge and a desire to meet expectations by listening to all of the stakeholders, he won support from both sides during his scope negotiation.
“Project managers need to be good listeners and understand the other point of view before responding and acting in a negotiation. In my view, this is essentially the right attitude and competency integrated together.”
At agricultural and lawn equipment manufacturer Bush Hog LLC, Ms. Sutter regularly engages in contract negotiations with outside vendors.
For these discussions to run smoothly, she says it takes a unique blend of organizational and leadership skills and knowledge of the project management processes—all of which PMP credential holders have.
Recently Ms. Sutter had to use her negotiating skills during talks with a vendor that exceeded expectations in some areas while underperforming in other areas.
“It required some delicate negotiating to allow the vendor to save face, declare the contract for those services null, and still maintain a positive relationship with that vendor for other services,” she says.
After earning the PMP credential in 2001, Ms. Sutter’s employers increased her responsibilities.
“The roles that I have taken on grew accordingly and continue to grow. I have seen a progression in the scope, budget and value of the projects that I [work on],” Ms. Sutter says.
Today she finds herself negotiating all the time on what services and projects her department will provide.
Sometimes negotiations can lead to potentially awkward situations, which is what happened to Mr. Schmitt recently when his company decided to outsource its IT needs to former employees.
Not an IT company itself, Rudolph Usinados S.A. offered to help the former employees establish their own company to defray costs for Rudolph and to help them build their own wealth.
In the beginning, the former employees were afraid because they believed it would be easier for Rudolph to not work with them at all.
Mr. Schmitt credits his PMP credential for providing him the authority he needed to handle the negotiation process. Since earning his PMP credential, Mr. Schmitt has been given more responsibility for bigger projects, giving him a better understanding of the negotiating process on whole projects.
“Once projects are better structured and people better understand the needs in terms of cost, volume and time, negotiations are more successful,” he says.
Today, Rudolph’s operating cost is much lower and the former employees make much more money as owners of their own company. After one year, both sides are pretty happy,” he says.
When it comes to negotiating, the PMP credential provides an edge that can go a long way: confidence.
“I believe that my PMP [credential] gives me more confidence, and confidence is an important aspect of any negotiation,” says David Benkelberg, PMP. “If you cannot stand your ground, then negotiations will result in unfavorable outcomes, and that is where confidence in my capabilities is essential.”
For example, Mr. Benkelberg says negotiations are often around cost, timing and duration. “If I feel that my proposal is feasible then there’s no point to give in and shorten the plan—which might please the customer—but then overrun in the end,” he says.
The training that goes along with the PMP credential can foster a more holistic view of the situation at the table.
“Many project managers that I know have a technical background, and technology is still what they focus on. PMP [credential holders] focus on many other factors such as people, motivation, expectations, emotions, financial feasibility, risk and quality, which should be considered during negotiations, and then support these [factors] through a wide mix of techniques.”
And this, he says, should lead to better results.
