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:
- When You're Scared to Tell the Truth
- In the project context, we need to know that whatever we're hearing from colleagues is the truth as
they see it. Yet, sometimes we shade the truth, or omit important details. Here's a list of some of
the advantages of telling the truth.
- 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
- Non-Workplace Politics
- When we bring national or local political issues into the workplace — especially the divisive
issues — we risk disrupting our relationships, our projects, and the company itself.
- When Others Curry Favor
- When peers curry favor with the boss, many of us feel contempt, an urge for revenge, anger, or worse.
Trying to stop those who curry favor probably isn't an effective strategy. What is?
- Influence and Belief Perseverance
- Belief perseverance is the pattern that causes us to cling more tightly to our beliefs when contradictory
information arrives. Those who understand belief perseverance can use it to manipulate others.
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- And on August 22: Dealing with Credit Appropriation
- Very little is more frustrating than having someone else claim credit for the work you do. Worse, sometimes they blame you if they get into trouble after misusing your results. Here are three tips for dealing with credit appropriation. Available here and by RSS on August 22.
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- The Power Affect: How We Express Our Personal Power
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