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.
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More articles on Ethics at Work:
- The Power of Presuppositions
- Presuppositions are powerful tools for manipulating others. To defend yourself, know how they're used,
know how to detect them, and know how to respond.
- Looking the Other Way
- Sometimes when we notice wrongdoing, and we aren't directly involved, we don't report it, and we don't
intervene. We look the other way. Typically, we do this to avoid the risks of making a report. But looking
the other way is also risky. What are the risks of looking the other way?
- Some Things I've Learned Along the Way
- When I have an important insight, I write it down in a little notebook. Here are some items from my
- Ethical Influence: II
- When we influence others as they're making tough decisions, it's easy to enter a gray area. How can
we be certain that our influence isn't manipulation? How can we influence others ethically?
- Counterproductive Knowledge Work Behavior
- With the emergence of knowledge-oriented workplaces, counterproductive work behavior is taking on new
forms that are rare or inherently impossible in workplaces where knowledge plays a less central role.
Here are some examples.
Forthcoming issues of Point Lookout
- Coming October 16: Performance Mismanagement Systems: II
- One of the more counter-effective strategies incorporated into performance management systems is the enterprise-wide uniform quota, known as a vitality curve. Its fundamental injustice breeds cynicism, performance fraud, and toxic conflict. It produces performance assessments that are unrelated to enterprise objectives. Available here and by RSS on October 16.
- And on October 23: Power Distance and Teams
- One of the attributes of team cultures is something called power distance, which is a measure of the overall comfort people have with inequality in the distribution of power. Power distance can determine how well a team performs when executing high-risk projects. Available here and by RSS on October 23.
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- The Race to the South Pole: Lessons in Leadership
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. We'll use the history of this event to explore lessons in leadership and its application to organizational efforts. A fascinating and refreshing look at leadership from the vantage point of history. Read more about this program.
Here's a date for this program:
- Baldwin-Wallace University, 275 Eastland Road, Berea, Ohio
44017: November 7,
Kerzner Lecture Series/International Project Management Day, sponsored by Baldwin Wallace University and the Northeast Ohio Chapter of the Project Management Institute.
- Baldwin-Wallace University, 275 Eastland Road, Berea, Ohio 44017: November 7, Kerzner Lecture Series/International Project Management Day, sponsored by Baldwin Wallace University and the Northeast Ohio Chapter of the Project Management Institute. Register now.
- 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.