Succeeding as a group

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Succeeding as a group
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Outline

• Success through negotiation of conflicts
• Success through project management

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Basic Architecture of Negotiation
conflict
intrapersonal
intergroup
interpersonal
consensus conflict
scarce resource allocation
Third-party intervention
...
Negotiation
Policies and rules
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Negotiation

• Is a process by which two or more parties,
  linked by mutual dependence but with some
  apparent conflict, seek to do better through
  jointly decided agreement.
• Negotiation is a decision making process
  characterized by opportunistic interaction
  (dilemma of collaboration).

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Eight Primary Conflict Causes

• 1. Unmet needs and wants
• 2. Values
• 3. Perceptions
• 4. Knowledge

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Eight Primary Conflict Causes

• 5. Assumptions
• 6. Expectations
• 7. Different Backgrounds
• 8 Willingness and ability to deal with conflicts

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Dilemma of collaboration
Kay
FULL
EMPTY
2
4
FULL
2
-1
Elena
- 1
0
EMPTY
4
0
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Types of negotiation

• Distributive fixed pie (zero-sum
  win-lose or lose-win)
• Integrative enlarge the pie before splitting
  it (positive-sum win-win)

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Strategic Approach to NegotiationPREPARATION

• Step 1 brainstorm your alternatives
• Step 2 find your Best Alternative to Negotiated
  Agreement (BATNA)
• Step 3 try to improve your BATNA
• Step 4 determine your walk-out-price (W-o-P)
• Step 5 simulate step 1 to 4 from the others
  perspective
• Step 6 calculate Zone of Possible Agreement
  (ZOPA)

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Strategic Approach to NegotiationPREPARATION
SELLER
W-o-P 500
ZOPA
W-o-P 630
BUYER
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Strategic Approach to NegotiationDURING THE
NEGOTIATION

• The role of information
• direct and indirect methods of acquiring
  information
• The importance of differences
• e.g., risk attitudes, time preferences, ...
• First move
• Reciprocity principle
• Bluffing

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ExerciseThe Salty Dog

• - take one sheet yellow or blue
• - find a partner with the opposite color

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Cognitive Biases

• Irrational Escalation of Commitment
• The mythical fixed pie
• Overconfidence
• Confirmation Bias
• Self-Serving Fairness Bias

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Level of analysis
Individual
P
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Level of analysis
Individual
P
Dyad
P1
P2
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Level of analysis
Individual
P
Dyad
P1
P2
P3
Polyad
P1
P2
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Level of analysis
Individual
P
Dyad
P1
P2
P3
Polyad
P1
P2
I
Intermediary Mediation or arbitration
P2
P1
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Level of analysis (cont.)
C
Collateral
P1
P2
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Level of analysis (cont.)
C
Collateral
P1
P2
M
M
M
Intra-group
M
M
M
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Level of analysis (cont.)
C
Collateral
P1
P2
M
M
M
Intra-group
M
M
M
M
Inter-group
M
M
M
M
M
M
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Negotiation in teamsAre 2 heads better than 1?
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ANSWERIt depends on the task

• Additive tasksteam performance S (individual
  perf.)
• Conjunctive tasksteam performance MIN
  (individual perf.)
• Disjunctive tasks team performance MAX
  (individual perf.)

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Negotiation in teams
TEAM PERFORMANCE EQUATION PP IG - IL
PP potential productivity IG interaction
gains (group superiority effect) IL interaction
losses (coordination losses, motivation losses,
intellectual losses)
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Decision rules for teams

• Majority rule
• Unanimity rule

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The condorcet paradox

• A new product development team has created 3
  designs.
• The team members preferences are
• Member Design A Design B Design C
• Maurita 1 2 3
• Kay 2 3 1
• Tom 3 1 2
• which one will be implemented?

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The condorcet paradox (cont.)

• The winners of majority rule election will change
  as a function of the order in which alternatives
  are proposed. Alternatives proposed later are
  more likely to survive.
• Impossibility theorem (Arrow 1963)it is
  impossible to maximize group preference if ngt2
  and options gt2

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The condorcet paradoxlessons learned

• Avoid majority rule in team negotiation whenever
  possible
• Avoid strict issue-by-issue agendas whenever
  possible
• Focus on different interests and preferences of
  team members to facilitate creative integrative
  agreements

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Coalition

• DEFINITION A (sub)group of 2 or more
  individuals who join together in using their
  resources and have a greater influence on
  outcomes.
• Pros more power, effectiveness
• Cons instability, lower group welfare, status
  quo bias

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Coalition

• How to divide the pie within the coalition ?

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Coalition Dilemma

• Whereas there are several defensible ways to
  allocate resources among coalition members, there
  is no single best way.
• (Raiffa 1982)

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Negotiation with your client

• Team effect
• a team at the bargaining table increases the
  incidence of integrative agreements.
• Share information about the client and your
  commitments to the client with your team members
• post-meeting and post-telephone call reports

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Negotiation with your client (cont.)

• Allocentrism
• put yourself in the clients shoes
• Accountability
• negotiators who are accountable to their
  constituents make higher demands, are less
  willing to compromise, get better results.
• Develop trust
• hard to earn, easy to lose, tough to restore
• Avoid ambiguity
• visual displays reduce risks of conflict

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Wrapping-up

• First rule there are no rules for negotiation
• Go prepared
• Essence negotiation is an educational process
• after the deal, negotiation goes on

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What is a project?

• It is a problem scheduled for solution
• a problem is a gap between where you are and
  where you want to be, with an obstacle that
  prevents easy movement to close the gap

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When is a projecta project?

• Activities involve more than 2 people for more
  than 2 weeks effort, more than one months
  elapsed time
• Activities involve substantial risk failure will
  have significant impact
• Activities require coordination of 2 or more
  departments, involve outside partners, involve
  new technology, fall outside the scope of normal
  operation

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What is a successful project?

• One which delivers expected results
• One which controls three components budget,
  time and scope
• Many managers are considered successful if they
  hit 2 of the 3
• FINAL MARK must be IMPLEMENTED!

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What is project management?

• Project management differs from management
  because it is only done once
• It includes planning, scheduling, and controlling
  of project activities to meet project objectives
• Major objectives include performance, cost, and
  time goals while controlling scope

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Relationship of project objectives

• Cost f(P,T,S) where cost is a function (f) of
  performance (P), time (T) and scope (S)
• As P and S increase, cost generally increasesbut
  not linearly
• Projects fail when estimates are faulty time,
  talent and resources insufficient or incorrectly
  applied

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Project Phases
Define the problem and deliverables
Plan the project
Execute the plan
Monitor and control progress
Implement/Close project
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Project management system
Control Check progress compare correct
Information Historical current(cost, progress)
Planning Define projectschedule

Methods CAD modeling scheduling

Organization Authority responsibilityaccounta
bility
Culture Values beliefsbehaviors
Human Team building communication decision
making
Human Motivationleadership negotiation
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