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.
The article you've been reading is an archived issue of Point Lookout, my weekly newsletter. I've been publishing it since January, 2001, free to all subscribers, over the Web, and via RSS. You can help keep it free by donating either as an individual or as an organization. You'll receive in return my sincere thanks — and the comfort of knowing that you've helped to propagate insights and perspectives that can help make our workplaces a little more human-friendly. More
Your comments are welcomeWould you like to see your comments posted here? rbrenMKMdDuJkeWYvsdqHner@ChacUdUTxwgbAtGuPwRGoCanyon.comSend me your comments by email, or by Web form.
About Point Lookout
Thank you for reading this article. I hope you enjoyed it and found it useful, and that you'll consider recommending it to a friend.
Support Point Lookout by joining the Friends of Point Lookout, as an individual or as an organization.
Do you face a complex interpersonal situation? Send it in, anonymously if you like, and I'll give you my two cents.
More articles on Ethics at Work:
- Your Wisdom Box
- When we make a difficult decision, we sometimes know we've made the wrong choice, even before the consequences
become obvious. At other times, we can be absolutely certain that we've done right, even in the face
of inadequate information. When we have these feelings, we're in touch with our inner wisdom. It's a
- It Might Be Legal, but It's Unethical
- Now that CEOs will be held personally accountable for statements they make about their organizations,
we can all expect to be held to higher standards of professional ethics. Some professions have formal
codes of ethics, but most don't. What ethical principles guide you?
- When You Aren't Supposed to Say: I
- Most of us have information that's "company confidential," or possibly even more sensitive
than that. When we encounter individuals who try to extract that information, we're better able to protect
it if we know their techniques.
- Devious Political Tactics: A Field Manual
- Some practitioners of workplace politics use an assortment of devious tactics to accomplish their ends.
Since most of us operate in a fairly straightforward manner, the devious among us gain unfair advantage.
Here are some of their techniques, and some suggestions for effective responses.
- 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 27: Interrupting Others in Meetings Safely: I
- In meetings we sometimes feel the need to interrupt others to offer a view or information, or to suggest adjusting the process. But such interruptions carry risk of offense. How can we interrupt others safely? Available here and by RSS on June 27.
- And on July 4: Interrupting Others in Meetings Safely: II
- When we feel the need to interrupt someone who's speaking in a meeting, to offer a view or information, we would do well to consider (and mitigate) the risk of giving offense. Here are some techniques for interrupting the speaker in situations not addressed by the meeting's formal process. Available here and by RSS on July 4.
I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenMzrcAKoTRTerPEyyner@ChacgXBRcMyVGplcNUvjoCanyon.com or (650) 787-6475, or toll-free in the continental US at (866) 378-5470.
Get the ebook!
Past issues of Point Lookout are available in six ebooks:
- Get 2001-2 in Geese Don't Land on Twigs (PDF, USD 11.95)
- Get 2003-4 in Why Dogs Wag (PDF, USD 11.95)
- Get 2005-6 in Loopy Things We Do (PDF, USD 11.95)
- Get 2007-8 in Things We Believe That Maybe Aren't So True (PDF, USD 11.95)
- Get 2009-10 in The Questions Not Asked (PDF, USD 11.95)
- Get all of the first twelve years (2001-2012) in The Collected Issues of Point Lookout (PDF, USD 28.99)
Are you a writer, editor or publisher on deadline? Are you looking for an article that will get people talking and get compliments flying your way? You can have 500 words in your inbox in one hour. License any article from this Web site. More info
- The Race to the South Pole: The Power of Agile Development
- 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. Lessons abound. Among the more important
lessons are those that demonstrate the power of the agile approach to project management and product
development. Read more about this program. Here's
a date for this program:
- Ohio National Insurance, 1 Financial Way, Blue Ash, OH: July
Monthly Meeting, Cincinnati
chapter of the International Institute of Business Analysis. Register now.
- Ohio National Insurance, 1 Financial Way, Blue Ash, OH: July 17, Monthly Meeting, Cincinnati chapter of the International Institute of Business Analysis. 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.