PMP · Question #885
During project completion, a project manager receives a request from the customer for a reduced cost of goods. The customer's request will affect the sales department's budget and forecast. In order t
The correct answer is C. Analyze the bounds of the negotiation for agreement with both parties.. To reach consensus on a customer's request for reduced costs impacting another department, the project manager's first step is to analyze the negotiation's parameters and bounds for all parties.
Question
During project completion, a project manager receives a request from the customer for a reduced cost of goods. The customer's request will affect the sales department's budget and forecast. In order to reach a consensus and have a successful project completion, what should the project manager do first?
Options
- AInitiate a change request to accommodate the revised cost of goods.
- BIdentify and satisfy both parties' underlying wants.
- CAnalyze the bounds of the negotiation for agreement with both parties.
- DComply with the customer's request to achieve the project mandate.
How the community answered
(26 responses)- A4% (1)
- B15% (4)
- C77% (20)
- D4% (1)
Why each option
To reach consensus on a customer's request for reduced costs impacting another department, the project manager's first step is to analyze the negotiation's parameters and bounds for all parties.
Initiating a change request is an implementation step that should occur after a thorough analysis and negotiation of the proposed cost changes, not as the first response to a new request.
While identifying and satisfying underlying wants is a goal of negotiation, it is a later stage that follows the initial analysis of the negotiation's context and constraints.
Before acting or negotiating, the project manager must understand the limits, priorities, and interests of all involved parties, including the customer and the sales department. This analysis helps define the negotiation's scope and potential solutions.
Complying immediately with the customer's request without analyzing its impact on internal departments and overall project viability would be irresponsible and could lead to negative consequences for the organization.
Concept tested: Project negotiation and stakeholder management
Source: https://www.pmi.org/learning/library/negotiation-skills-project-management-1926
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