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Alternative name(s)
Intervention (Thesaurus.com, 2013)
Compromise (Thesaurus.com, 2013)
Settlement (Thesaurus.com, 2013)

Description

Negotiation is a process where anyone aims to get the best possible results from negotiating an agreement. The biggest challenge in negotiation for people is to change their thinking ways to find a suitable approach to suit each negotiation, and enhance their self-awareness to accommodate the stresses along with. There are four major negotiation traits: nerve, self-control, fortitude and ingenuity. Nerve helps people to deal with heavy pressures and keep calm; self-control encourages people to know what to do and not to do, then choose the proper ways to solve problems; Fortitude helps negotiators to focus on deals; Ingenuity helps negotiators to deal with dilemmas and create more business values based on new ideas (Gates, 2012).

Agile values

CAS are open systems, which exchange energy or information with their surroundings. Negotiation requires agile project teams to share and communicate with clients, in the mean time, to hear the changing requirements from clients. In this way, some aspects or changes asked by clients might add cost or need more time to be finished. Agile project team negotiated with the clients that if project time can be extended or the monetary supporting can be added.

Customer collaboration over contract negotiation (Agile Manifesto). Agile project team is supposed to contact customer time to time and give them potential feedback or deliver new deploy-able business value (Agilealliance. Org, 2013). In this process, customer may raise more requirements or ideas to agile project team. Agile project team negotiate their ideas and suggestions with customers, in order to deliver satisfying products to customers.

Agile principles

Guiding vision (Augestine, 2005) refers to continuously guiding and influencing behavior both towards a team and customers in a positive way. Negotiation is a managerial method to influence customers' decision and project team's planning and practice in next iteration.

One of the Agile principles suggests that the team members should introspect on how to do better regularly and adjust their behaviors accordingly. Negotiation allows team members to reflect their own thoughts on previous iteration experience, which they might be good at, in order to adjust their later performance towards the project accordingly.

Individuals and interactions over processes and tools. Negotiation in agile team requires project manager and project team members have an effective communication rather than just follows the processes, methdologies and tools. Also, negotiation in agile team requires project manager to hear from customers, including what they wants and what they expect the deliverables to be. Then, the project manager gives suggestions and opinions according to cusomters needs and practical situation ( resources project team be given, capacity project owned, etc).

Agile practices

On-Site Customer is one of important practices in XP which can be applied in negotiation. It involves the real customers in the team (Beck, 1999). If the real customers can be on-site to negotiate with the team, then the team can have more opportunities to persuade them on the agreement. Thereby they can achieve their agreement or negotiation more efficiently.

Moreover, Pair Programming in XP practices can be applied in negotiation as well. This practice requests two people sitting together and working towards the same objective (Beck, 2004). Their face-to-face communications and brainstorming could help negotiators to strengthen their cooperation, and then lead to a desirable result.

At last, Retrospectives in XP can be used in negotiation since negotiators need reflect what they have done well or bad before, so that they would get proper self-assessment on themselves, which contributes to their negotiations with different parties.

Discussion

In traditional way, contract negotiation is existed, in order to form a base for both customers and project team to obey and rely on (Milton et al, 2005). However, agile is focusing on quick feedback and to involve customer into project iteration. Therefore, negotiation between customers and agile project team tend to be face-to-face communication and collaboration within the process of developing the project. Thus, thanks for the negotiation in the agile team, customers' ideas and requirements can be heared and addressed effectively.

In traditional way, cross-functional team might need to negotiate with scarce resources in the same pool. However, one of the agile project practices-open information, is providing free and open access to information, which seems to improve project efficiency to a certain extent.

In trditional way, in project team there includes a hierachy structure among management level, contractly, in agile team, loosen stifling control is existed. Therefore, negotiation can be an effective tool and method for project team members to maintain their working relationship.

Links from this KA to other KAs

Negotiation can be linked with Project communication management since good communication helps negotiators to persuade the other parties to obtain their desirable outcomes. Besides, it links with Conflict Resolution as well, because when there is conflict between different parties, they need negotiation to solve the problems. That is to say, negotiation is also a good way to manage conflicts in the project environment. At last, it is related to Collaboration Management. In collaboration management, all parties work together to achieve a same objective, negotiation can be an efficient tool for them to cooperate together.

References

Beck, K. (1999)) eXtremme Programming Explained. 1st edition. Addison-Wesley.
Beck, K. (2004) eXtremme Programming Explained. 2nd edition. UK: Addison-Wesley.
Gates, S. (2012) The negotiation book. 2nd Edition. West Sussex: John Wiley & Sons Ltd.
Milton D. Rosenau,Gregory D. Githens (2005), Successful project management: a step-by-step approach with practical examples, John Wiley & Sons, [Online] available at:
http://books.google.co.uk/books?id=_Pu-3B8JtmcC&printsec=copyright&hl=zh-CN#v=onepage&q&f=false.[Accessed by: 27th March 2013].

External links

http://en.wikipedia.org/wiki/Negotiation-------------- Wikipedia link
http://www.skillsyouneed.com/ips/negotiation.html -------Skills you need
http://www.pmp-projects.org/Agile-Manifesto.pdf----- The agile manifesto
http://link.springer.com/article/10.1007%2Fs00170-006-0830-x?LI=true#page-1----- An agent- based evolutionary strategic negotiation for project dynamic scheduling
http://classwebs.spea.indiana.edu/kenricha/Oxford/Archives/Courses%202010/Decision%20Making%202010/Articles/Raiffa%20-%20Negotiation,%20Ch.%203.pdf-- The art and science of negotiation