PMI SH - Negotiate Project Agreements

A project manager is working on a complex project with many stakeholders and conflicting priorities. Senior management asked the project manager to avoid "noise" specifically for political projects.

Although it is difficult to find resources for the project, what should the project manager do to ensure smooth progress of the project?

• Apply "If you do something nice for me I'll do something nice for you."

• Be consistent with words and actions to avoid conflicts with the stakeholders.

• Utilize compliments to obtain resources, and cooperate toward mutual goals.

• Allocate the scarce resources efficiently to meet the needs of the project.

Answer explanation

Solution: D. Allocate the scarce resources efficiently to meet the needs of the project.

In projects, constraints are time, money, and resources. Resources are considered to be the top criteria for conflict management. Allocating the scarce resources to meet the project needs should be the top priority for the Project Manager. Hence this option is the correct answer.

Negotiation with stakeholders are always performed in the interest of the project and not on personal goals or ambitions. Hence all the remaining options are incorrect.

A project manager is working on a complex project with many stakeholders that have conflicting priorities. Senior management asked the project manager to avoid "noise" because this is a highly political project. The project manager opted to use expert opinion from well known industry profiles.

What did the project manager do to satisfy senior management's request?

• Responded in a friendly manner to senior management

• Appeared to be consistent in the use of words and actions

• Cooperated with senior management to achieve mutual goals

• Took action based on the senior management's power to act

Answer explanation

Solution: D. Took action based on the senior management's power to act

Use the Law of Authority to establish your own credentials or credibility early in the negotiation process. When establishing your approach or explaining how or why decisions have been made, link your position to known, respected sources in order to garner credibility.

A project manager is working on an complex project with multiple stakeholders and competing priorities. Each stakeholder wants to maximize its share of the allocated resources for the requested functionality.

What should the project manager focus on?

• Meeting the personal interests of stakeholders.

• Meeting the mutual interests of all stakeholders.

• Preserving the relationships and rapport with stakeholders.

• Pushing stakeholders to accept the project manager's viewpoint.

Answer explanation

Solution: B. Meeting the mutual interests of all stakeholders.

The project manager should focus on finding a solution that meets the needs of all stakeholders, even if it means making some compromises. This will help ensure the project's success and maintain good relationships with stakeholders.

The other answer choices are incorrect. Meeting the personal interests of stakeholders is not always possible, and it may not be in the project's best interests. Preserving the relationships and rapport with stakeholders is important but not the most important thing. The project manager should focus on meeting the needs of stakeholders, even if it means some relationships are impacted. Pushing stakeholders to accept the project manager's viewpoint is not a good strategy. This will only alienate stakeholders and make it more difficult to reach a consensus.

A complex project, involving multiple stakeholders with diverse priorities, requires long and challenging negotiations to finalize the project agreement. The project manager must facilitate setting the right priorities for these crucial negotiations.

What should the project manager do first?

• Develop a detailed risk register

• Organize a brainstorming session with all stakeholders.

• Define clear project success criteria.

• Conduct individual interviews with key stakeholders. 

Answer explanation

Solution: C. Define clear project success criteria.

By prioritizing the definition of clear success criteria, the project manager sets a strong foundation for effective negotiations. This ensures all parties are focused on achieving the project's desired outcomes and facilitates aligning stakeholder priorities with those goals.

The other answer choices are incorrect as they should be done after clear project success criteria have been defined. While risk management is crucial, prioritizing all risks does not address specific stakeholder priorities and their bargaining points. Stakeholder brainstorming sessions can be valuable later in the process, but at the initial stage, focusing on success criteria provides a clearer direction for stakeholder engagement. Individual stakeholder interviews can offer valuable insights, but prioritizing defining success criteria first offers a broader framework for conducting interviews and understanding priorities in context.

A project manager is working on a complex, political project with many stakeholders having conflicting priorities. Senior management asked the project manager to ensure that there was no "noise" regarding the project. During a stakeholder meeting, the project manager asked a series of questions to confirm acceptance for each deliverable before asking for acceptance of the whole project.

What did the project manager do to satisfy stakeholders?

• Responded to positive actions of the stakeholders to reward actions

• Acted in a manner that was consistent in the use of words and actions

• Engaged with stakeholders by cooperating toward mutual goals

• Acted based on the power authorized by senior management

Answer explanation

Solution: B. Acted in a manner that was consistent in the use of words and actions

Law of Commitment and Consistency can be called “Get the other person saying ‘yes, yes’ immediately.” This occurs when one party asks the other side to make a number of “small” decisions that lead to only one obvious conclusion: to accept the general concession.

The approved project charter formally initiates the project.

A project charter may still be used to establish internal agreements within an organization to ensure proper delivery under the contract.

The Project Manager has to negotiate project agreements. Project Manager has to persuade the Stakeholders and achieve acceptance.

The correct answer is: "Acted in a manner that was consistent in the use of words and actions"

The Distractors are accepted

A company is working on a hybrid project in which the deliverables have quality issues at the end of one of the sprints. Which action should the project manager take?

• Review the definition of done (DoD).

• Look for a clear set of working agreements.

• Apply value stream mapping.

• Use a plan-driven approach.

Answer explanation

Solution: A. Review the definition of done (DoD).

The definition of done (DoD) is a set of criteria that must be met before a deliverable is considered complete. By reviewing the DoD, the project manager can identify the specific quality issues that need to be addressed and develop a plan to fix them. This will help to ensure that the deliverables meet the project's quality standards.

The other answer choices are not as relevant or effective. Working agreements are important for setting expectations and managing conflict, but they are not directly related to addressing quality issues. Value stream mapping is a tool for identifying and eliminating waste in a process. It is not specifically designed to address quality issues. A plan-driven approach is a project management methodology that emphasizes planning and control. It is not as flexible as a hybrid approach, which may be needed to address quality issues.

Halfway through a year-long project, a hardware supplier sends a project manager notice of an intent to increase prices due to fluctuating rates of exchange. The project manager is unsure of their negotiating authority.

Which document should the project manager reference?

• Risk register

• Procurement management plan

• Project Charter

• Communication strategy

Answer explanation

Solution: B. Procurement management plan

The procurement management plan is a component of the project or program management plan that describes how a project team will acquire goods and services from outside of the performing organization. In most organizations, project managers do not have contracting authority. Rather, they work with contracting officers or other people with expertise in contracts, laws, and regulations. Organizations usually have rigorous policies and procedures associated with procurements. The policies identify who has the authority to enter into a contract, the limits of authority, and the processes and procedures that should be followed. Prior to conducting a procurement, the project manager and technically qualified project team members work with contracting professionals to develop the request for proposals (RFP), statement of work (SOW), terms and conditions, and other necessary documents.

The other options are incorrect because they will not typically provide specific guidance on negotiating authority.

An agile project team is implementing a supporting technology platform across departments. They're planning a readiness review for the delivery.

Who should the project manager propose to conduct the readiness review?

• The product owner is responsible for product vision and backlog management.

• The quality control (QC) manager is responsible for ensuring delivery quality and efficiency.

• The quality assurance (QA) manager is responsible for proposing measures for delivery improvement.

• The subject matter expert (SME) is responsible for a deep understanding of the platform and requirements.

Answer explanation

Solution: D. The subject matter expert (SME) is responsible for a deep understanding of the platform and requirements.

In an agile readiness review for a new technology platform launch, the primary focus is to assess if the platform functions as intended and meets departmental needs. An SME possesses the ideal skillset for this task because they have a deep understanding of the platform and requirements to deem the platform ready. 

The other answer choices are incorrect. While the product owner focuses on product vision and backlog prioritization, their role wouldn't necessarily involve deep technical expertise in the platform itself. QC managers typically focus on identifying and addressing defects within the platform itself during development. While their input could be valuable later, the initial readiness review focuses on broader functionality and departmental alignment. QA managers primarily ensure quality processes are followed throughout development. While their perspective could be helpful, the initial review might not necessitate improvement suggestions, but rather confirmation of functionality and suitability for different departments.

A project manager is assigned a complex project with significant legal, regulatory, and contractual requirements. However, these requirements have not yet been defined or finalized. Concerns exist regarding a delay in completing these requirements.

What should the project manager do?

• Focus on the project deliverables instead as it is not the project manager's responsibility to fulfill these requirements.

• Contact the product owner and highlight the project risks related to the delay in fulfilling these requirements on time.

• Meet with the product owner and the legal department to review the project status and the progress in defining these requirements.

• Delay the finalization of the legal, regulatory, and contractual requirements until the end of the project, and before the go-live date.

Answer explanation

Solution: C. Meet with the product owner and the legal department to review the project status and the progress in defining these requirements.

Meeting with the product owner and the company's legal department is the best choice because it allows the project manager to emphasize the importance of finalizing these requirements and ensures that all parties understand the impacts the delay has on the project. Regulatory agencies or statutes may require specific planning documents before granting authorization to proceed or to secure approval to release the project deliverable into the market. 

Focusing on project deliverables is incorrect because ignoring legal and regulatory requirements can lead to significant risks and potential failure. Legal, regulatory, and contractual requirements are integral to project success and can drastically impact and shape project deliverables. 

Contacting the product owner is not the best choice because it is not sufficient and highlighting the risks does not ensure a satisfactory resolution.

Delaying the finalization of the legal, regulatory, and contractual requirements is inappropriate. It is crucial to address these requirements up front to ensure compliance, feasibility, and comprehensive risk management planning.

A project manager is working on a complex project that has high interest from senior management. There are many stakeholders with competing priorities, which requires significant negotiation skills to overcome rising conflicts.

Which two principles should the project manager follow when developing the negotiation strategy?

(Choose two).

• Separate the people from the problem.

• Focus on political issues first.

• Focus on management priorities.

• Focus on interests, not positions.

• Delegate the decisions to the team.

Answer explanation

Solution: A and D. Separate the people from the problem and Focus on interests, not positions.

By following the principles of separating the people from the problem and focusing on interests, not positions, the project manager can develop a negotiation strategy that is more likely to be successful in this complex and challenging situation. The project manager should focus on the problem at hand, rather than the people involved to avoid personal attacks and keep the negotiations on track. The project manager should also focus on the underlying interests of the stakeholders, rather than their stated positions to identify mutually beneficial solutions and reduce conflict.

The other answer choices are not as relevant or effective. Focusing on political issues first is more relevant to negotiations between organizations, rather than negotiations between individuals or small groups. Focusing on management priorities is important, but it is not enough to ensure successful negotiations. The project manager also needs to consider the interests of the other stakeholders involved. Delegating the decisions to the team can be effective in some cases, but it is important to make sure that the team has the necessary knowledge and skills to make informed decisions.