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Harvard Case - World Trade Center Redevelopment Negotiation - General Instructions

"World Trade Center Redevelopment Negotiation - General Instructions" Harvard business case study is written by Lawrence Susskind, Katherine Harvey, David Kovick. It deals with the challenges in the field of Organizational Behavior. The case study is 6 page(s) long and it was first published on : Jan 1, 2008

At Fern Fort University, we recommend a collaborative and transparent approach to the World Trade Center redevelopment negotiation, prioritizing the needs of all stakeholders, including the Port Authority, the city of New York, the families of the victims, and the public at large. This approach should focus on building trust, fostering open communication, and ensuring a balanced and equitable outcome that reflects the significance of the site and its historical context.

2. Background

The World Trade Center redevelopment project is a highly complex and sensitive undertaking, marked by the tragic events of September 11, 2001. The case study focuses on the negotiation process between the Port Authority of New York and New Jersey (PANYNJ) and the Lower Manhattan Development Corporation (LMDC) for the redevelopment of the site.

The main protagonists are:

  • PANYNJ: The owner of the World Trade Center site, responsible for its redevelopment and seeking to maximize its financial return.
  • LMDC: A public corporation created by the state of New York to oversee the redevelopment of the site, with a mandate to honor the memory of the victims and create a vibrant, sustainable community.
  • Families of the victims: Seeking a memorial that appropriately honors their loved ones and reflects the significance of the tragedy.
  • The public: Interested in a safe, secure, and economically viable redevelopment that benefits the city and its residents.

3. Analysis of the Case Study

This case study presents a complex negotiation scenario with multiple stakeholders, each with distinct interests and priorities. The analysis can be framed using the following frameworks:

  • Stakeholder Analysis: Identifying the key stakeholders, their interests, and their power in the negotiation process.
  • Negotiation Dynamics: Examining the power dynamics, communication styles, and potential conflict points between the stakeholders.
  • Organizational Culture: Analyzing the different organizational cultures of PANYNJ and LMDC and their impact on the negotiation process.
  • Leadership Styles: Evaluating the leadership styles of key individuals involved in the negotiation, including their ability to build consensus and manage conflict.
  • Decision-Making Processes: Understanding the decision-making processes within each organization and their impact on the negotiation outcome.

Key Issues:

  • Balancing economic interests with memorialization: Finding a balance between maximizing financial return and honoring the memory of the victims.
  • Managing stakeholder expectations: Addressing the diverse needs and expectations of the different stakeholders, including the families of the victims, the public, and the city government.
  • Building trust and collaboration: Establishing a collaborative environment that fosters open communication and trust between all stakeholders.
  • Addressing potential conflicts: Managing potential conflicts arising from differing priorities and interests.

4. Recommendations

To navigate this complex negotiation, we recommend the following:

  1. Establish a Joint Steering Committee: Create a joint steering committee comprised of representatives from PANYNJ, LMDC, the families of the victims, and the city government. This committee should be responsible for guiding the negotiation process, facilitating communication, and building consensus.
  2. Develop a Shared Vision: The committee should work collaboratively to develop a shared vision for the redevelopment project that encompasses the needs and priorities of all stakeholders. This vision should be clearly articulated and communicated to the public.
  3. Prioritize Transparency and Communication: All stakeholders should be kept informed about the progress of the negotiation process. Regular meetings, public forums, and transparent communication channels should be established to ensure open and honest dialogue.
  4. Engage in Active Listening and Empathy: All parties involved should actively listen to each other's perspectives and concerns. Empathy and understanding are crucial for building trust and finding common ground.
  5. Facilitate Conflict Resolution: A neutral third party, such as a skilled mediator or facilitator, should be engaged to help resolve any conflicts that may arise during the negotiation process.
  6. Consider Alternative Solutions: The committee should explore alternative solutions that address the needs of all stakeholders, including innovative financing models, public-private partnerships, and creative design approaches.
  7. Focus on Long-Term Sustainability: The redevelopment project should be designed with long-term sustainability in mind, considering environmental, social, and economic factors.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The recommendations align with the core competencies of both PANYNJ and LMDC, focusing on collaboration, transparency, and stakeholder engagement.
  • External Customers and Internal Clients: The recommendations address the needs of both external customers, including the families of the victims and the public, and internal clients, including the organizations involved in the redevelopment project.
  • Competitors: While not directly relevant in this case, the recommendations ensure the project remains competitive by attracting investment and creating a vibrant, sustainable community.
  • Attractiveness ' Quantitative Measures: While quantifiable metrics are difficult to assess in this context, the recommendations aim to maximize the project's long-term value, fostering economic growth and community development.
  • Assumptions: The recommendations assume a willingness to collaborate, a commitment to transparency, and a shared desire to create a lasting tribute to the victims and a vibrant community.

6. Conclusion

The World Trade Center redevelopment negotiation is a complex and sensitive undertaking that requires a collaborative and transparent approach. By prioritizing the needs of all stakeholders, fostering open communication, and seeking a balanced and equitable outcome, the project can become a symbol of resilience, unity, and hope for the future.

7. Discussion

Alternative approaches to the negotiation process include:

  • Adversarial Negotiation: This approach emphasizes competition and negotiation tactics, potentially leading to a less collaborative outcome.
  • Top-Down Decision-Making: This approach relies on the decisions of a few key individuals, potentially neglecting the needs of other stakeholders.

The recommendations outlined above are preferred because they prioritize collaboration, transparency, and stakeholder engagement, leading to a more sustainable and equitable outcome.

Risks and Key Assumptions:

  • Risk: A lack of trust and collaboration between stakeholders could lead to delays and conflict.
  • Assumption: All stakeholders are willing to compromise and work towards a shared vision.

8. Next Steps

  1. Establish the Joint Steering Committee: Within the next month, the PANYNJ, LMDC, the families of the victims, and the city government should appoint representatives to the Joint Steering Committee.
  2. Develop a Shared Vision: The committee should meet regularly over the next three months to develop a shared vision for the redevelopment project.
  3. Public Engagement: The committee should hold public forums and town hall meetings to gather feedback from the community and inform them about the project's progress.
  4. Conflict Resolution: If necessary, a neutral third party should be engaged to assist in resolving any conflicts that may arise during the negotiation process.

By following these steps, the World Trade Center redevelopment project can be successfully navigated, resulting in a lasting tribute to the victims and a vibrant, sustainable community for the future.

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Case Description

Six-person facilitated negotiation among representatives of the city, state, developer, insurer, and victims' families regarding the redevelopment of the World Trade Center site following the Sept. 11, 2001 terrorist attacks.

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