Andrew stopped outside Jane's door and knocked on the doorframe. Her back to him, studying her screen, Jane must have somehow recognized Andrew's knock. "Andrew," she said without looking up. "One sec."
She half-stood, still holding the mouse and staring at the screen. Then she clicked, stood up straight, and turned to face him. "OK," she said. "Where to?"
"Courtyard," Andrew replied.
They walked silently to the elevator, rode it to One, crossed the lobby, went out into the brilliantly sunny courtyard, and sat down at an empty umbrella table. Jane still had her coffee mug in hand. She sipped.
"So…" she prompted him.
"This contract bothers me," Andrew began. "I'm a project manager. I don't know much about negotiating contracts. I'll probably do something dumb, but I'm not sure that's what bothers me."
Managing a project for which
you negotiated contracts
presents a conflict of interestAndrew wasn't sure, but Jane was. She'd been there. "Right," she began. "The real problem is that project managers shouldn't be negotiating contracts. It's a conflict of interest."
Jane's insight isn't widely shared, but she does raise a critical point. Project managers who must monitor day-to-day performance of contracts they personally negotiated have a potential conflict of interest. Here are some of the ways this conflict can appear.
- Vulnerability to time pressure
- Especially if negotiations drag on, the organization might apply pressure to the negotiator to bring negotiations to completion. For those project managers who are also the negotiators, this pressure can lead to a temptation to yield, based on a belief that we can "close the gap" through cleverness during project execution.
- When project manager and negotiator are separate people, the project manager can better represent the project's interests, insisting on what is actually required, and compelling more creative negotiation.
- Hidden cost transfers
- During negotiations, it's common to entice the vendor with the promise of work on future projects. But when the negotiator manages both the project at hand and the future project, this tactic amounts to a transfer of resources between the two projects. It distorts the costs of both, invalidating the metrics used to manage projects.
- When the negotiator and project managers are independent, each contract is more likely to stand on its own.
- Concealed contract flaws
- When there are flaws in the contract that become evident only during execution, and when the negotiator has gone on to become the project manager, it is the project manager who must report defects in the contract that he or she produced. It can be tempting to find a way to avoid reporting a flaw of one's own creation.
- When the negotiator and project manager are independent, contract flaws are more likely to be reported, and remedial action is possible.
Is your organization running at peak performance? If not, sometimes the design of its job descriptions could be the culprit? For some novel ideas for elevating performance in your organization, check out my tips book 52 Tips for Leaders of Project-Oriented Organizations.
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More articles on Ethics at Work:
- Workplace Politics vs. Integrity
- A reader wrote recently of wanting to learn "to effectively participate in office politics without
compromising my integrity." It sometimes seems that those who succeed in workplace politics must
know how to descend to the blackest depths, and still sleep at night. Must we abandon our integrity
to participate in workplace politics?
- Budget Shenanigans: Swaps
- When projects run over budget, managers face a temptation to use creative accounting to address the
problem. The budget swap is one technique for making ends meet. It distorts organizational data, and
it's just plain unethical.
- When You Aren't Supposed to Say: III
- Most of us have information that's "company confidential," or even more sensitive than that.
Sometimes people who want to know what we know try to suspend our ability to think critically. Here
are some of their techniques.
- Approval Ploys
- If you approve or evaluate proposals or requests made by others, you've probably noticed patterns approval
seekers use to enhance their success rates. Here are some tactics approval seekers use.
- The Attributes of Political Opportunity: The Basics
- Opportunities come along even in tough times. But in tough times, it's especially important to distinguish
between true opportunities and high-risk adventures. Here are some of the attributes of desirable political
Forthcoming issues of Point Lookout
- Coming June 28: Tackling Hard Problems: I
- Hard problems need not be big problems. Even when they're small, they can halt progress on any project. Here's Part I of an approach to working on hard problems by breaking them down into smaller steps. Available here and by RSS on June 28.
- And on July 5: Tackling Hard Problems: II
- In this Part II of our look at solving hard problems, we continue developing properties of the solution, and look at how we get from the beginning to the end. Available here and by RSS on July 5.
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- The Power Affect: How We Express Our Personal Power
- Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program. Here are some upcoming dates for this program:
- Creating High Performance Virtual Teams
- Many people experience virtual teams as awkward, slow, and sometimes
frustrating. Even when most team members hail from the same nation or culture, and even when they all
speak the same language, geographic dispersion or the presence of employees from multiple enterprises
is often enough to exclude all possibility of high performance. The problem is that we lead, manage,
and support virtual teams in ways that are too much like the way we lead, manage, and support co-located
teams. In this program, Rick Brenner shows you how to change your approach to leading, managing, and
supporting virtual teams to achieve high performance using Simons' Four Spans model of high performance.
Read more about this program. Here's an upcoming date
for this program:
- Baci Grill, 134 Berlin
Road, Berlin, CT 06416: September 19,
Monthly Meeting, Southern New England Chapter of the Project Management Institute. Register now.
- Baci Grill, 134 Berlin Road, Berlin, CT 06416: September 19, Monthly Meeting, Southern New England Chapter of the Project Management Institute. Register now.
- The Race to the South Pole: Ten Lessons for Project Managers
- On 14 December 1911, four men led by Roald
Amundsen reached the South Pole. Thirty-five days later, Robert F. Scott and four others followed. Amundsen
had won the race to the pole. Amundsen's party returned to base on 26 January 1912. Scott's party perished.
As historical drama, why this happened is interesting enough, but to organizational leaders, business
analysts, project sponsors, and project managers, the story is fascinating. Lessons abound. Read
more about this program. Here's an upcoming date for this program:
- CTCPA, 716 Brook Street,
Rocky Hill, CT 06067: September 20,
Full-day Workshop, Southern New England Chapter of the Project Management Institute. Register now.
- CTCPA, 716 Brook Street, Rocky Hill, CT 06067: September 20, Full-day Workshop, Southern New England Chapter of the Project Management Institute. Register now.