Week 16 Ch 20 International Projects & Project success

• International Project Issues


  International projects can be very interesting, but they introduce quite a variety of issues that you should anticipate. There can be a host of cultural and institutional issues. You may encounter local labor issues or even geo-national issues. So lets begin with a review of the many considerations you will face in managing an international project. You may find it interesting to think of examples you may have experienced or heard about along the way. And by all means, you should visit this chapter in the text to benefit from the authors’ perspective as well.
• International Projects (1)

  [

  Projects called "global," "international," "mutilinational" or overseas." Have stakeholders located in different countries. have cross-national and cross-cultural project teams and work sites.
• International Projects (2)


  Ex. start new business in other country; opening branch, office, or plant in other country; Contracting with customers and/or suppliers in other countries.
• Manager of an International Project

  Self-sufficient; sensitive to and accepting of local culture/customs; Learn what can be applied from past projects/experiences and what cannot; Fully engaged, fully in charge.
• Cultural and Institutional Issues

  [

  Language: translations, slang, terminology. Formality: Greetings, Introductions, Workplace protocol
• Cultural and Institutional Issues (1)


  Gift giving; Age and respect; Social behavior: importance of social gathering in business, conduct at social gatherings, dress. Food and drink
• Cultural and Institutional Issues (2)


  Punctuality and attitudes about time; Holidays, vacations, weekends: National public holidays, Dates of Holidays, Souther Hemisphere: summer vacation in December, Weekend etc
• Cultural and Institutional Issues (3)


  Labor time: "usual" workweek/workweek: 35-hour? Five 8-hour days? "Usual" work day: 9 am-5 pm? 6 am-2 pm? Layoffs: constrained by local rules and regulations.
• Cultural and Institutional Issues (4)


  Laws and contracts: wording and terminology on contracts, usage of "Incoterms," Compliance with lays of host country and home country. Litigation, payments, meeting contract terms: Litigation conducted in neutral country, Specify payment conditions, Include penalties for schedule slippage/failure to meet requirements; incentives to exceed them.
• Cultural and Institutional Issues (5)

  Politics: impact of political reform or strife, overthrow of government, military intervention. Labor strikes are often common.
• Local Stakeholder Issues


  Contractors: costs for labor and relocation, costs for training and supervision, worker productivity, Connections with local officials, knowledge of culture, ability to avoid bureaucracy and red tape. Knowledge of business practices.
• Local Stakeholder Issues (cont’d.)

  Supporters and Customers: Importance of gaining personal familiarity and building trust. Managers and laborers: importance of showing project's local benefits in terms of employment, service, product availability, infrastructure, etc.
• Geo-National Issues


  Exchange risk and currency. Offset (counter trade): Requirements on contractor spending in the host country (percentage of project cost on local labor, materials, and services.
• Geo-National Issues (cont’d.)

  Import/exports restrictions: apply to export/import of US technology, software, and hardware. Time zones.
• Ideas for International Projects (1)

  Idea 1: When project manager is seldom able to be on site:

  Delegate responsibility to local project manager local manager reports to the global manager

  Is responsible for detailed planning and day-to-day management

  Responsibility/authority of local and global project managers are clearly delineated and understood by everyone on the project. 
• Ideas for International Projects (2)


  Idea 2: Add a local representative to the project.

  Keeps project manager informed about local matters

  Mediates with local laborers, unions, and government officials

  Helps resolve cultural and regulatory issues

  Represents project manager and company to the customer

  Keeps project sold to customers and supporters 

  Arranges in-country services (reservations, local communications, interpreters, etc.)
• Ideas for International Projects (3)

  Idea 2: Add a local representative to the project (cont.).

  Arranges meetings with officials, attaches, and consulates

  Educates customer about US government requirements concerning, e.g., the transfer of technology and technical knowledge

  Helps arrange local housing for project personnel

  Assists in locating in-country subcontractors

  Keeps project manager informed about in-country politics and economy. 
• Ideas for International Projects (4)

  Idea 3: Build the international team.

  1. Hold teambuilding session for key members from the project team, local managers and staff Develop common purpose and shared expectations
  2. Identify possible or likely problems
  3. Develop guidelines to reduce those problems. 
  4. Hold teambuilding session with each local subcontractor Discuss issues that might arise
  5. Prepare plan for ways to prevent or resolve issues
• Ideas for International Projects (5)


  Idea 4: Get started on the right foot:

  Look for analogous projects

  Hire consultant

  Seek trusted guides, professional, and advisory groups

  Attend formal training

  Start small 
• Ideas for International Projects (6)

  Idea 5: Form a culture risk management team:

  Identify 

  Issues

  Assess risks & prepare plans

  Provide support

  for overseas

  personnel

  Do team building

  and relationship

  building

  Knowledge management:

  Gather information & learn

  
• Idea 6: Ensure cultural efforts are included in the WBS:

  Ideas for International Projects (7)

  Technical WBS Cross-Cultural/

  Cross-National

  Technical tasks

  Tasks to address cultural/

  international factors 

  Ideas for International Projects (7)

  
• Ideas for International Projects (8)

  Idea 7: Consider effort in each country as a separate subproject.Task

  Subproject

  Country A

  Subproject Country B

  Subproject Country C

  Technical Tasks

  Survey

  X

  X

  Site development

  X

  X

  Site construction

  X

  X

  System implementation

  X

  X

  X

  System test

  X

  X

  X

  Training

  X

  X

  Tasks Addressing Local Issues

  Labor

  X

  X

  Subcontractors

  X

  X

  Permits

  X

  X

  Customs

  X

  X

  Time zone

  X

  X

  Language

  X

  X

  
• Ideas for International Projects (9)

  Idea 8: When estimating costs consider:

  Differences in equipment and labor productivity

  Costs for communication, travel, local services. 

  Fees and costs for insurance, licenses, governmental reviews, housing, work salary incentives, automobile, daycare, schooling, security, medical care

  Expenses for obtaining passports and visas, and for transporting managers, workers, and replacements 

  Fluctuations in exchange rates 
• Ideas for International Projects (10)

  Idea 9: When estimating durations consider:

  Differences in equipment and labor productivity

  Time for communication, travel, local services. 

  Lead times for obtaining passports and visas, and for transporting managers, workers, and replacements 

  Time for shipping preparation and transport between countries 

  Time for customs inspection and clearance

  Time for transport in the host country
• Ideas for International Projects (11)

  Idea 10: Develop communications plan that: 

  1. Addresses communication difficulties stemming from differences in languages and time zones. 
  2. Specifies important points of contact (Who’s Who) in the host country, home country, and elsewhere
  3. Specifies required communication, reports and other written documents, content and format. 
• Ideas for International Projects (12)


  Idea 10 (cont.): Develop communications plan that: 

  1. Ensures that foreign contractors understand project documents, preparation, and usage. 
  2. Specifies the common “working language” for the project 
  3. Gives tentative schedule for all formal design and management reviews and milestone meetings,describes meeting format, expected content, advance preparations, time limits, attendance policy, and who will lead. 
• Ideas for International Projects (13)


  Idea 11: Reduce the need to deal with local culture, customs, laws and institutions: Outsource to knowledgable subcontractors, Perform most technology-intensive work at home, then ship it overseas, Sign contracts under international law or third-country law

  [
• Project Success and Failure


  Many project managers have staked their success on meeting the triple constraint. Finishing a project on time, under budget and fulfilling technical performance requirements is a central focus. But in recent years, many project managers are taking a broader view. There are really many additional dimensions of success to include the impact to the customer, the impact to the project team, and business success. 

  Microsoft delivered Office 2000 late and over budget. But this project generated BILLIONS in revenue for the company. Was the project a success?
• Success or Failure?

  The Sydney Opera House

  Cost Overrun

  1300%

  Schedule Overrun

  250%

  Key to Success

  City Image

  
• Dimensions of Success


  Project efficiency, impact on customers, business success, preparing for future
• Real Key to Success

  Project managers must formulate objectives 

  in the customers terms: Enhanced revenue, increased productivity, operating efficiency, customer satisfaction
• Project Failure Defined


  a systems fails if: it does not satisfy requirements of those involved with system... project failure usually implies not meeting cost, schedule, performance, or related objectives. It produces results that are undesirable to those involved with it. Failed project not meet expectations.
• Project Management Causes of Project Failure

  
• Project Success Factors

  
• Project Success Factors (cont.)

  
• Has Project Management Arrived? (1)

  Contemporary firms have increased their reliance on project management by leaps and bounds in recent years. The number of project management professionals has also skyrocketed. For many firms, project management is simply the way they do business?

  So has project management arrived in your firm? How will you know when project management becomes the way your firm does business?
• Has Project Management Arrived? (2) 


  There is excitement about project management: concepts, processes, technique - widely used. There has been marked improvement in products and services. Appropriate organizational strategies, policies, procedures and design initiatives are in place.
• Has Project Management Arrived? (3) 


  There have been extraordinary efforts to clarify authority, responsibility, as well as individual and collective roles in matrix organization. Senior managers recognize value of project teams. All parties involved work hard to communicate strategies and results of stream of projects. Proactive education and training program is underway.
• Has Project Management Arrived? (4)

  Appropriate merit evaluation systems are in place which recognize and reward individual and team performance. Project management is simple recognized as "the way we do business around here" Excellent performance as a project manager or experience on a project team is recognized as a vital step in progressing from professional to management career field.