The Different Stages of Negotiation and Common Mistakes for Engineering Managers

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This week's topic: The Different Stages of Negotiation and Common Mistakes for Engineering Managers

Negotiation is an integral part of an engineering manager’s role, from securing resources and managing project budgets to dealing with stakeholders and team expectations. However, even seasoned managers often find negotiations challenging, particularly when they fail to recognize the different stages of the negotiation process. Missing these key steps can lead to common mistakes that derail progress or leave critical value on the table.

I’m exploring the main stages of negotiation that engineering managers encounter, highlighting the common pitfalls at each stage, and showing why mastering these stages is crucial for engineering management.

Stage 1: Preparation and Research

What it Involves:

Preparation is the cornerstone of any negotiation. For engineering managers, this phase includes gathering data about project constraints, budget limits, team needs, and stakeholder priorities. It also requires understanding the other party’s goals, interests, and potential constraints. 

Common Mistake: Insufficient Preparation

A lack of preparation is the most prevalent reason negotiations fall apart. Engineering managers often underestimate the time needed to gather the right data and perform adequate research before entering a negotiation. According to a report by the Program on Negotiation at Harvard Law School, 83% of negotiation failures can be attributed to poor preparation.

Why it Happens:

Engineering managers are often juggling multiple projects, deadlines, and stakeholder expectations, leaving little time for in-depth research. As a result, they enter negotiations unprepared, which leads to weaker positions and missed opportunities.

Stage 2: Opening the Discussion

What it Involves:

In this stage, both parties present their initial offers. The opening discussion sets the tone for the negotiation and lays out the general framework of the conversation. For engineering managers, this may mean discussing project timelines, available resources, or expected deliverables.

Common Mistake: Starting Too Strong or Too Weak

One of the most common mistakes at this stage is starting with a position that is either too aggressive or too weak. Engineering managers may either set demands that are unrealistic or ask for too little because they’re worried about rejection. Data from the Society for Human Resource Management (SHRM) shows that over 55% of professionals, including managers, fail to ask for what they really need in initial discussions, out of fear of sounding unreasonable.

Why it Happens:

Fear of rejection often drives these mistakes. Engineering managers might believe that setting lower expectations or demands will make the negotiation more amicable, but it often leads to settling for less than they need or could achieve.

Stage 3: Bargaining

What it Involves:

This is the give-and-take phase of negotiation, where both parties propose concessions to find a middle ground. In engineering, this might involve adjusting project timelines, scaling back deliverables, or allocating resources differently.

Common Mistake: Focusing Too Much on Positions, Not Interests

A common error in this stage is concentrating solely on positions (what each side is asking for) rather than underlying interests (why they are asking for it). Engineering managers might get fixated on specific demands rather than considering alternative solutions that could meet both parties' needs.

Why it Happens:

The engineering mindset often leads managers to focus on finding a solution to a specific problem, rather than exploring different pathways to success. When they focus too narrowly on their immediate goals, they can overlook alternative strategies that could be more beneficial to both sides.

Stage 4: Closing the Deal

What it Involves:

This phase involves formalizing the agreement, ensuring that both parties are satisfied with the outcome, and addressing any final concerns. For engineering managers, closing might mean finalizing a project scope, confirming team resources, or setting a final timeline.

Common Mistake: Rushing to Close

In the rush to finalize the agreement, many managers overlook key details or fail to secure the necessary commitments. This can lead to misunderstandings or unmet expectations later in the project. Research by McKinsey & Company shows that 40% of managers admit to rushing through the final stage of negotiations, leading to critical oversights.

Why it Happens:

Time pressure and the desire to move forward with projects often compel managers to rush the closing stage. This is especially true when they’re managing multiple projects at once, and feel compelled to wrap up negotiations quickly.

Stage 5: Implementation

What it Involves:

After the deal is closed, the agreed-upon terms must be implemented. In engineering, this could involve project rollouts, allocation of resources, and continued communication between all parties to ensure smooth execution.

Common Mistake: Failing to Monitor and Adapt

Even after successful negotiations, engineering managers often fail to follow up on the agreement's execution, leading to implementation issues. A report by Deloitte revealed that 45% of project failures stem from poor post-negotiation follow-up, where managers assume that once the deal is signed, it will be executed flawlessly.

Why it Happens:

Once negotiations are over, engineering managers tend to shift their focus back to day-to-day operations, assuming the agreed-upon terms will be executed as planned. Without consistent follow-up, gaps in execution can arise, leading to project delays or failures.

Navigating the stages of negotiation requires careful planning, execution, and follow-through. For engineering managers, understanding where these common pitfalls occur—whether it’s inadequate preparation, focusing too much on positions rather than interests, or rushing to close the deal—can dramatically improve negotiation outcomes.

By learning to avoid these common mistakes at each stage of negotiation, engineering managers can better secure the resources, timelines, and team agreements they need to drive successful projects.

Negotiating can be challenging, especially if you don't understand who you're negotiating with. 

In my recent YouTube episode, “Reading Your Negotiation Counterpart: The 3 Types of Negotiators”, you’ll learn how to identify the three main types of negotiators and adapt your techniques to achieve better outcomes. By understanding your counterpart's negotiation style, you can communicate more effectively and reach mutually beneficial agreements.

WATCH NOW! 

- Doug Howard PE

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