A Case Study for a Complex Negotiation Analysis on ...

1 A case Study for a Complex Negotiation Analysis on software development Projects Sergio Assis Rodriguesa, Melise M. V. Paulab, Yann Duzertc, Jano M. de Souzaa,d aCOPPE/UFRJ - Computer Science Department, Graduate School of Engineering , Federal University of Rio de Janeiro, Brazil bUNIFAL/MG - Computer Science Department, Federal University of Alfenas, Minas Gerais, Brazil cEBAPE/FGV School of Public and Business Administration, Getulio Vargas Foundation, Rio de Janeiro, Brazil dDCC-IM/UFRJ - Computer Science Department, Mathematics Institute, Federal University of Rio de Janeiro, Brazil 1.

2 Introduction The constant changes in social, economic and political scenario have influenced how the Negotiation is discussed in organizations. The Negotiation complexity requires an Analysis considering several aspects. One common aspect is to face Negotiation not only as a type of relationship, but as a process that involves a variety of elements which can represent the Negotiation by schemas. Thus, the objective of this article is to present a Negotiation case Study oriented by the Prescriptive/Descriptive perception proposed by Raiffa (1982).

3 The descriptive aspect of this Study is based on the Matrix of Complex negotiations (MCN) Analysis proposed by Duzert (2007). Although there are lots of areas to which this method can be applied, this article will illustrate the use of MCN in a Complex Information Technology project Negotiation involving governments, international entities and universities. 2. Model Formulation According to Duzert (2007), the Matrix of Complex negotiations (MCN) can be defined as a schema which has important concepts related to the Negotiation process.

4 As correlated in Table 1, four steps (preparation, value creation, value division and execution) can be associated with ten elements: Interests, Options, Power, Commitment, Context, Relationship, Criterion, Cognition, Legitimacy and Time. Interest selection through multicriteria and option research increases the probability of agreement because it facilitates the creation of suggestions for mutual gains (Bazerman, 2002). The power is related to different aspects, such as alternatives, coalition, reward or threat, psychological issues, and dependence degree or necessity established between negotiator and agreement (Fisher & Ury, 1981).

5 Table 1 The Matrix of Complex negotiations (Duzert, 2007) Steps Elements Preparation Value Creation Value Division Execution Interests X X Options X X Power X X Commitment X Context X Relationship X X X X Criterion X X Cognition X X X Legitimacy X Time X X Legitimacy, criterion and cognition emphasize the importance of justice perception (Rawls, 1971). A consensual collaborative approach is reached when the agreement is viewed by the counterparts as the most relevant solution found, considering the context (Susskind & Cruikshank,2006).

6 Communication and relationship are influent elements, but also involve transparency and trust paradox, perception gap, limited rationality and predisposition towards collaborative data search. Time is an element which influences not only decisions but also relationships (Stuhlmacher, 2000). Finally, the context is the element which provides enough information to understand the Negotiation environment. 3. case Study Analysis The Negotiation analyzed in this article was carried out during an IT contract. In the description, the entities real names will be changed to guarantee the confidentiality.

7 The Negotiation was Complex once it involved groups with different interests and Negotiation behaviors, several issues in different knowledge areas and unexpected results. software development and a variety of actors were the main criteria to choose this case Study . There were six international entities: LAPEC (moderator), FAC (client; foment institution), Braxis and Combia Foreign Policies Ministries (political legitimators), Braxis Federal University and Combia National University (interested in the project technical development ); The goal of this article is to exemplify how the MCN s elements (in bold below) can be clearly identified in a real IT environment and influence the Negotiation agreements.

8 Negotiation Context: The solution proposed to FAC was the development of an interoperability standard communication technology of the international trade systems of two Latin America countries (Braxis and Combia). Three rounds were executed in incremental way and done by different actors. 1st Round: getting Ministries support In a project that involves the foreign policies of two countries, the counterparts legitimacy is essential to continue the Negotiation . Culture usually impacts Negotiation actors (Faure and Rubin, 1993), but in this round, the cultural influence was not decisive because each Minister held enough power to situate their political interests in that project , that is, to be the first in Latin America to have an information interoperability platform.

9 This influence of power is seen by Zartman and Rubin (1999) as a major factor influencing Negotiation . The mediator was chosen based on relationship s influence. This made possible that the Negotiation happened in exact time, once it would be difficult to have a second meeting with the Ministers. Besides, using a multicriteria Analysis , the best way to finish this round was the formal support through a commitment letter signed by the Ministers, indicating the project political importance for the Latin American region. 2nd Round: getting appropriate institutions to develop the project The second round context shows the intention of catching institutions interested in taking the risks of participating of a project development which was, at that moment, without concrete perspectives of funds.

10 Some options were predicted to reach the project s goal: hiring multinational companies, developing in universities, buying a market solution and using the governments IT structure. Meanwhile, because of the interoperability technology incipiency, the Universities were chosen. Another main aspect was the relationship between the rectors of these universities and the governments, which allowed the adequate political legitimacy to this context. The Universities had the criteria (excellence, legitimacy and relationship with the Governments) and accepted LAPEC s alternative of working without initial earnings and the commitment of having their time rewarded later.