Transformational Leadership and Leadership Essay

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Contract Negotiation

Situation Summary

You are part of an Integrated Program Team assigned to the Perigee Advanced Design Program (PAD), with multiple Contract Options, for the Pulse Differential Quadrature (PDQ) Satellite System. A major Subcontractor, providing a crucial part in the PDQ, recently disclosed that unexpected obsolescence of a critical part will increase the cost of their original estimates, from over extended quotes, by an estimated 30% and add an additional 6 months to the planned delivery schedule. No other vendors are available to meet the critical part requirement at this time.

Conflict Overview

In the modern business world with supply chains that span the globe, it is virtually impossible to account for every potential risk that can emerge in various circumstances. The PAD project is no exception and they have recently received devastating news that was unexpected from a critical leg in their supply chain. Not only is the part more expensive, but the lead time to acquire it has also been lengthened by six months. It is no surprise that this has also created tensions upstream on the PDQ project and subsequent negotiations have already reached the brink of project failure. Everyone realizes that the obsolescence issue was not planned for and likely could not be expected, but the relationship is tense none the less. This analysis will provide a number of negotiating tips to help the company deal with their project situation and find a solution that will allow the project to progress.

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Negotiation Strategies Discusssion

There are many different forms of negotiation strategies that could be utilized in such a situation. However, there some high level objectives that should be mentioned first when tensions are high. For example, Fisher and Ury (2011) offer a variety of principled counter tactics that can be used when tensions are high which can often lead to an opponent who begins to use a tricky tactic that include:

• Separate the people from the problem -- don't attack an individual for using tricky tactics on a personal level.

• Focus on interests, not positions -- consider what opportunity there is for mutual gain rather than accepting extreme positions

• Insist on objective criteria -- be hard on principle and identify any objective criteria that are available to use.

The goal is to not make the project's trouble anything that has the potential to become personal. When a problem arises, it is often the case that people naturally start dishing out blame, but it's best to keep an objective demeanor throughout such occasions.

One negotiation strategy that is closely related is….....

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https://www.aceyourpaper.com/essays/transformational-leadership-leadership-2164795
   

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