代写代考 ISYS90045 Professional IS Consulting ©2022 The University of Melbourne

ISYS90045 Professional IS Consulting

Proposals and Negotiation Skills

Lecture Plan

Learning topics for today

• The Budget
• Governance and Risk
• Negotiation Skills

Introduction

understanding
of your needs

Engagement
methodology
and timelines

Pricing and
assumptions

Similar work

The Budget

• Planning the cashflow for your project
• Setting the price

Budget Contents

• Invoice receipts

• Contractors
• Travel and Accommodation
• Equipment
• Office Suppliers
• Subscriptions

Example cost input
Consulting rate card.

Role Description Rate per hour

Partner Exceptional knowledge across a wide range of topic areas.
Focuses on seeing trends, developing team strategies and
leveraging relationships to drive sales.

Director Assisting partners in driving sales. Can oversee
engagements as a senior manager. Immense subject
matter expertise over key areas.

Manager Focuses on engagement management, coupled with
delivery of the work given that they are subject matter
experts over certain areas. Runs more complex meetings.

Consultant

Good operational knowledge over a few key areas –
always learning. Scheduling, running meetings and
technically competent up to a point. Oversees and review
the work of the Analysts (reviewing their work).

Consultant The ‘doers’ on an engagement – conducts basic analysis,
‘slice and dices’ data in spreadsheets, takes minutes,
develops and documents workpapers (but everything they
do must be reviewed). Can do good work, but only under
supervision.

Note: Work days are eight hours long (total weekly hours are 40) for budgeting purposes.

Icarus Case Study: Teaming

Time to think about the team!

You have a range of people you can consider for these services.
You’re going to assume two people will be sent out to the client (a
Program Manager and Project Analyst). The lead will need to be
able to liaise with senior stakeholders in status meetings, escalate
issues and resolve problems day-by-day.
The lead will then need support – someone with a bit of
experience that can help to coordinate and perform a variety of
tasks. The projects and initiatives are not complex – this is a small
• Who do you choose?
• What are their roles?
• How much is this going to cost?

Introduction

understanding
of your needs

Engagement
methodology
and timelines

Pricing and
assumptions

Similar work

Governance and Risk

Risk – What could go wrong?

} Risk management and mitigation
} What risks may arise during the project?
} What risks do you see as something you’d have to deal

} Methodologies

} How will you identify and assess these risks?
} Will you have a prioritisation process?
} The risks that could arise – how have you rated them?

} Mitigation strategies
} How will you control you risks?
} How have you proposed controlling the risks you’ve

identified?

} Risk concepts:

Term Description

Risk An event that may lead to a negative outcome for the project that we need to proactively manage. Examples:
• Team illness/ pandemic outbreak
• Client stakeholder availability (e.g. for attending workshops)
• Limited client infrastructure (e.g. no desktops, site access passes, network accounts to facilitate access to documentation)
• Technical integration (e.g. if implementing a new system, must ensure it can adequately integrate with existing client

platforms and other related systems)
• Client rejection of engagement outcomes.

Likelihood An expression of how likely this risk is to occur. For example:
• High: Likely to occur once in every three projects/ years
• Medium: Likely to occur once in every five projects/ years
• Low: Expected to occur once in every 10 projects/ years.

Impact The consequence or outcome of the risk occurring. For projects, often defined as an impact against:
• Cost: Increase or change to anticipated project budget
• Time: Increase to project timelines
• Quality: Decrease in quality of or the expected project outcomes.

Need to again express how severe this impact is. For example, for the impact on cost:
• High: Increase of 40% o above on overall project budget if event were to occur
• Medium: Increase of 10-39% on overall project budget
• Low: Increase of under 10% of overall project budget.

Mitigation/ remediation What are the actions or activities you are going to put in place to prevent the risk from occurring, or reduce its impact? For
example, for the scenario of a pandemic outbreak:
• Provide laptops and work-from-home facilities
• Ensure adequate remote access (VPN, 4G solutions)
• Increase operational team touchpoints – increase to twice-daily standups.

Risk = Likelihood X Consequence

Consequence

Insignificant Minor Significant

Significant Catastrophic

Highly likely Medium High High High High

Likely Low Medium Medium High High

May Occur Low Low Medium Medium High
Unlikely to
occur Low Low Medium Medium High

Hardly Likely Low Low Low Medium Medium

ISO 31000:2009 Risk Management Standard

Risk Assessment

Risk Categorisation
• Likelihood
• Consequence

• Develop mitigation

strategies

• Manage Risk

Key/Critical Success Factors are risks that need managing

Risk is a scenario measured using a product of
• probability of an event occurring, and
• the impact that that event may have.

How do we assess these risks?
} Measure the risk outcome via:

To achieve the impact X probability and risk rating score, apply a risk

Engagement risk management

Risk Event Impact Probability Risk Rating

(e.g. pandemic

High, medium or low on cost, time
and quality

High, medium or low in terms of
how often this is expected to

High, medium or

High Medium Low

High High High Medium

Medium High Medium Low

Low Medium Medium LowP

} Mitigations:
} What’s your ‘risk appetite’?
} That is, what level of risk are you willing to accept?
} What’s the risk rating/ score where you will apply

mitigations?
} E.g. We will accept low risks; if we rate a risk as medium or

above, however, we will actively manage them if they occur.

} Expectations for your proposals:
} What are the common (top 5-10) risks you face in these projects – and

how are you prepared to face them (i.e. what are your mitigations?

Engagement risk management

Governance

} Project governance
} What mechanism or process will the client provide

direction and decision making for the project?
} How will deliverables be accepted and signed off?
} What processes will you use to ensure quality?

Why is this important?
} To sketch out for you:

} Internal consulting team structure
} Liaising point – project management level
} Governance point – Steering committee with senior

management and sponsors.

Project governance and risk

} Project ownership
} Roles, responsibilities on the project
} Status updates, frequency and audience
} Project decision-making
} Project escalations.

Project governance

} Let’s show our workings…
Client-side/ overall project

Governance
group Purpose Frequency Attendees

• Strategic-level forum
• Review programme metrics

(budget, timelines, key deliverables,
risks, issues)

• Raise strategic issues for decision-
making (programme scope,
direction, etc).

stream leads,

Governance
group Purpose Frequency Attendees

management

• Tactical-level forum
• Review project/ stream progress
• Raise operational/ delivery risks

and issues to track remediation or
highlight needs for resolution.

Directors/

Governance
group Purpose Frequency Attendees

Stand-ups/ agile

• Operational delivery sessions
• Daily rundown of current activities,

progress and blockers
• Track backlog (‘to do’).

delivery team

Internal consultancy structure

Role Description

Overall leadership and ownership for
scope of services.

Role Description

Providing subject matter expertise;
project lead across streams.

Role Description

Project management and lead over
individual streams.

Role Description

Delivery teams – ‘do the doing’!

Engagement Lifecycle Negotiation

Risk assessment and
internal inquiry

Winning the

Contractual
negotiation

Delivery and

management

We are here.

And here.And here. And here. And here.

Introduction to negotiations

} Define a negotiation
} Understand styles of negotiation
} Negotiating a salary

Negotiation

What is a negotiation?
} Negotiation is a deliberative process between two or more

actors that seek a solution to a common issue or who are
bartering over an item of value

} Negotiation skills include the range of negotiation
techniques negotiators employ to create value and claim value in
their business negotiations and beyond

Why do we need to negotiate?
} Negotiation skills can help you make deals, solve problems,

manage conflicts, and build relationships as well as preserve
relationships

Negotiations

Negotiations can be characterised by:
} A) Positive discussions aimed at reaching an agreement for

both parties
} B)An awkward dance between 2 parties that don’t really trust

each other

How might we go about this?
} To be a successful in negotiations, you must decide in advance

your “bottom line” or “minimum price you will accept” or
“maximum amount you are prepared to pay” i.e. Floors and

} Be reasonable

Discussion: The leather jacket

} You are trying to buy a leather jacket from a street trader in a

foreign country.
} You really like the jacket, which is a good fit, well made and

} But you think the trader is asking too much.
} Can you negotiate an acceptable price for both of you? You have

a maximum of $80USD. You also have your credit cards.
} You also know that generally goods are half as costly in this

country compared to your country.
} Decide what you want to pay and the tactics you will employ

making concessions.
} A similar jacket in your country will cost about $130.USD

When do we need to negotiate?

Situations that may require some degree of negotiation
• Win/lose
• Lose/lose

Achieving Best And Final Offer “BAFO”
} These are the prices and the terms that determine the consulting

assignment

} Your own
} Do you use an outside offer to gain a salary increase?

How to negotiate salary?

Example: The Job Negotiation

} Issues to be negotiated
} Base Salary
} Medical benefits
} Superannuation
} Start date
} Leave arrangements (i.e. Summer leave)
} Work from home option
} Location of desk within the office
} Tuition costs for further study

Styles of Negotiation

1:“Open Book” negotiation
What does this mean?
What is required between the parties involved in order for this style
of negotiation to work?

2:“Take it or leave it” style
• What is involved in this situation?
• What factor is different between the parties involved?

Styles of Negotiation

What is the most important word to use in negotiations?

Hint: It is a small word of two letters!

Discussion: The fruit market

You are a small market stallholder selling fruit and vegetables
and it is 11.45 am.
The market closes in 15 minutes.
You have 20 melons left that are ripe and will not be good for sale
by next market day,so you are keen to sell them.
You paid $20 for these melons

What value can you recoup from your investment? What is your

The Hardest question

} To be truly prepared to negotiate, anticipate questions
you don’t want to answer.

} Imagine being blindsided in the midst of a critical
negotiation with a question like one of these:
} What is your cost? What is your profit margin?

Emotions in Negotiations

Trust and emotions can play a big part in negotiations

Micro expressions/ body langage
} focus on your counterpart’s face for at least four seconds after

asking a question
} StoryTelling

} it’s easier to control expressions when you’re talking. So describe
what you want or share an anecdote about another negotiating
partner who shared concerns similar to theirs and watch how
they respond as they listen.Their guard will lower and you can
monitor reactions

Emotions in Negotiations

Present multiple options
} As you present a list of choices to negotiating partners, their micro

expressions will reveal which they like and which they don’t,
sometimes even before they’re consciously aware of their
preferences.Watch closely to see what their face tells you about
each option

} E.g. Displeasure, happiness, aggression
} Modify your options based on these expressions

What effect does anger have in negotiations?

Discussion:

Neutrality in Negotiations

How do we remain neutral during negotiations?
How can our gestures alter the dynamic?

} Intentionally
} Unintentionally

} Shaking hands
} Sitting in your chair

Discussion Activity
Case Study: Negotiations

You’re nearly there!You’ve pulled together the draft statement of work (contract) for Benny.You’ve laid out your
rates, the preferred resources (team members) and – importantly – the scope of services you will provide him:
• The initial two-week health check of their project management capability
• Two team members, full-time, at the agreed rates for two months.

After sending off the email with the draft contract, the good feeling lasts all of about 45 minutes when one of
Benny’s procurement managers (Steve) calls you back. Benny forwarded the draft contract to Steve for review –
as Steve’s role in the agency is to ensure that all contracts contain clauses in-line with Government
requirements for theAgency.

He is not exactly agitated, but this is obviously a negotiation over the rates and services you’ve provided. Steve
is well-known in your team for driving a hard bargain and he is obviously driving an outcome here for Benny’s
best interests, despite previous agreements and conversations. He starts pushing on contractual conditions –
something you’ve engaged with him before – in order to provide a better outcome from the Agency.You know,
however, that any positive outcome for the Agency will have some form of impact on Icarus that you’ll have to
discuss with the partners. Steve discusses the options (refer next slide). As he lists them, you note down an
estimate of the positive impact each will have on your relationship with theAgency.

You pinch the bridge of your nose and take a breath.Time to get your game-face on! Steve wants to know
which items you can consider taking forward in order to amend the contractual provisions.
• How would you rate the (negative) impacts on Icarus from a delivery perspective? Why?
• Which items appear reasonable to accept?
• If the Agency impact score you think Steve will accept is high what combination of conditions are you

willing to take on – and why?

Condition to be met Impact to the

Three-year standard guarantee: For any services and deliverables provided and used by the Agency, Icarus
will guarantee and be liable for resolving all defects associated with these outcomes over the next three
years. Useful for Benny, but would open up Icarus to considerable liability.

Christina Marks will lead the project. Steve and one of Benny’s team worked with her in a previous
engagement and found her great to deal with. Steve wants her on two days per week, with one day being
invested time (i.e. non-billable to Benny). Will this work from a budgeting perspective?

Late delivery penalties of $1,000 for each week of overrun for deliverables provided during the secondment.
That is, if your team is late on any deliverable, you are liable to pay back $1,000 to Benny’s procurement
team. The fee is not considerable (and your firm’s insurance levels are in the millions for similar issues).

Allow the Agency to take ownership of any intellectual property (e.g. methodologies, documentation,
frameworks) you develop when providing these services. Not impactful to Icarus as this is a secondment
arrangement – therefore anything created as a part of the engagement would be the property of the Agency
at any rate…

Due to desk shortages (as the Agency is condensing office locations down from three sites to one), Icarus
are to deliver their services remotely three days per week. This has the potential to reduce fidelity of
discussions and would mildly increase Icarus’s time to deliver work packages.

Medium (2)

Work commences before agreed start date. As long as your delivery team have capacity, you don’t see too
much of an issue here.

Medium (2)

Given this is impactful work with some sensitivities (e.g. releasing Benny’s current contractors), Icarus will
agree to settle any disputes by internal discussion/ arbitration rather than legal action. Useful for you to have
this condition in place as it ultimately reduces your engagement risk….

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