Esta aula é parte da série: Developing Business skills. Feita para nível C1 em diante. Nela, vamos aprender a negociar um acordo sobre um projeto.
Background
Learnify is a well-funded startup that achieved considerable success with its initial launch—an ERP designed to streamline school management. This software is now utilized nationwide by over 100 schools, integrating functions such as teacher management, payroll, finance, services, and even taxation.
The CEO successfully persuaded investors to continue their support, and the consultants they hired have devised a business plan to launch an app that will engage students directly. This new venture promises to be highly profitable, offering synergies with the existing product and expanding usage to a broader student base.
The CTO, who spearheaded the development of the initial product, is highly skilled but faced significant stress during the process. The intense pressure led to the departure of two engineers for less demanding roles in larger corporations, and another engineer left seeking a better work-life balance.
Currently, the company plans to venture into educational gaming software to diversify its product line. The CEO is in discussions with the CTO to finalize terms. This negotiation is crucial as they prepare to propose the agreement to investors and face any ensuing outcomes.
The upcoming discussions between the CEO and CTO are expected to be challenging. They need to establish terms for the project that include a strict deadline, a tight budget, and limited personnel resources.
Chief Executive Officer (CEO)
Now, you are the CEO of Learnify.
It is crucial to understand the stakes involved. Failing to secure an agreement could lead to termination by the board. Losing your job would mean not only missing out on significant stock option gains but also severing a personal connection to the company you helped to found.
The board has authorized a budget of $70,000. However, you believe this figure is excessive and feel confident that you could effectively manage the project with $50,000, thereby saving the company money.
The timeline set for this project is 9 months. This duration is less feasible than it appears; any delay beyond this period means the app won’t be ready for the start of the new year, potentially costing millions in lost revenue. The board has made it clear that meeting this deadline is non-negotiable.
Your resource allocation is limited to 5 team members, as your other engineers are engaged with two other critical projects: a self-learning math app and a history teaching app that functions during sleep. Shifting staff from these teams will likely upset the other managers, negatively impact your evaluations, and jeopardize your chances for any bonuses. Remember, the board highly values morale and motivation among the teams. Anyway, you can find only one person to add to this team and build a team of 6 members. More than that would cause the resignation of other project leaders causing them to quit.
Chief Technology Officer (CTO)
Now, you are the CTO of Learnify, about to negotiate crucial terms with the CEO.
Your primary concern is the budget. You believe a minimum of $60,000 is essential to adequately fund the project, covering expenses like equipment, data systems, software licensing, participation in events, and team motivation activities. Ideally, you would operate with a budget of $80,000 to ensure all needs are comprehensively met. Accepting anything less than $60,000 risks the project's success and, consequently, your position.
Time is another critical factor. Realistically, you need 12 months to complete the project due to its complexity and scope. You expect the CEO to propose a 9-month deadline, which frustrates you given the previous delays in decision-making. While completing the project in 9 months is theoretically possible, it would require hiring three additional people to meet this ambitious timeline without compromising quality.
If only one additional person is allocated, completing the project in 9 months is still feasible, but this would put immense pressure on your team, likely harming morale. While this scenario might not lead to your termination, it would almost certainly cost you your bonus, given the increased stress and potential for burnout among your team members.
Solution
There are four potential outcomes in a negotiation: Win-Win, Win-Lose, Lose-Lose, and Compromise. In the proposed scenario, adhering strictly to the initial instructions from both sides will likely lead to a compromise. Here's an anticipated solution:
Budget: They settle on a budget within the range of $60,000 to $70,000. This flexibility allows for adjustments as agreed upon based on project needs and fiscal prudence.
Timeline: The project's deadline remains firm at 9 months, as per the board's directive. They plan a phased rollout with essential features launching first, allowing for additional updates later.
Team Allocation: They agree to incorporate one additional team member, increasing the total to six. Enhanced support measures and regular check-ins will be established to maintain morale and manage stress.
Some creative solutions:
Timeline: Instead of a fixed 9-month deadline for a complete rollout, they could introduce a beta launch for the core functionalities at the 9-month mark. This would be followed by iterative updates and expansions over the following three months, effectively extending the timeline indirectly. This phased rollout helps manage user expectations, allows for real-world testing and feedback, and alleviates pressure on the development team.
Team Allocation and Support: Introduce a cross-functional team approach, where members from other projects contribute part-time. This not only solves the resource constraint but also fosters a culture of collaboration and innovation within the company. Additionally, implement a "hackathon" or "innovation day" each month where team members can creatively explore solutions to project challenges in a supportive, low-stress environment. This could enhance motivation and potentially streamline problem-solving processes.
Resource Sharing and Flexible Workload: Encourage resource sharing between projects, such as sharing software licenses or tools, which could reduce overall project costs. Implement flexible workload options where team members can dynamically shift their focus based on project intensity, thus maintaining morale and preventing burnout.
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