International project management
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Weekly Summary 5.1
Due: Sunday, End of Module by 11:55 p.m. EST
Each week you will write and submit a brief summary of the important concepts learned during the week. The summary will include a summary of the instructor’s weekly lecture including any videos included in the lecture.
Writing Requirements
- Use the APA template located in the Student Resource Center to complete the assignment.
LEADING INTERNATIONAL
PROJECTS
Chapter 8
LEADING INTERNATIONAL PROJECTS
Leading international projects means spanning cultural,
organizational, geographical, and time boundaries.
Indirect and virtual leadership skills play an important role.
The international project manager has to lead heterogeneous
stakeholders in a sensitive and creative way.
Leading international projects means influencing, motivating, and
enabling project members from different national cultures.
2
Context of
leading
international
projects
Geogra-
phic
dispersion
Temporal
dispersion
Cultural
dispersion
Organiza-
tional
dispersion
3
Challenges of leading international projects
LEADERSHIP AND CULTURE
According to the GLOBE study, leadership styles and leadership
preferences of each national culture vary.
Depending on the national culture of leader and followers, different
leadership styles are effective.
The international project manager needs to adapt his or her
leadership style accordingly.
4
Leaders from hierarchy cultures tend to act
like a benevolent autocrat with absolute
authority and decision making power. Leaders
from equality-oriented cultures may prefer a
participative leadership style with shared
responsibilities including the staff into the
decision making process.
Equality Hierarchy
Leaders from collectivist cultures tend to
prefer a patriarchic leadership style giving
their subordinates the feeling of (emotional)
security.
Incentives would be rather
team
or group-
oriented than given to single individuals.
Leaders from individualistic cultures tend to
assume the role of a coach developing their
subordinates. They tend to take decisions
based on facts collected from the whole team.
Leaders from group-oriented cultures tend to
take decisions based on opinions of major
stakeholders.
Individual Group
CULTURAL IMPACT OF CULTURE ON LEADING INTERNATIONAL
PROJECTS
5
For leaders from task-oriented cultures, the
project team is only a temporary organization to
accomplish the project task. For leaders from
relationship-oriented cultures, good morale and
close relationships in the project team are the
sine-qua-non for task accomplishment and hence
relationships in the team are more important.
They may also support their subordinates on
private issues.
Task Relationship
Leaders from achievement-oriented cultures tend to
measure themselves and their followers by the
accomplishment of objectives. A preferred leadership
style would be management by objectives.
Leaders from status-oriented cultures tend to focus
on networking with politically important players in
order to safeguard their status and tend to manage
subjectively.
Achievement
Standing /
Status
Leaders from conflict-oriented cultures tend to
initiate open discussions on issues when
providing feedback. They use brainstorming
sessions for constructive conflict resolution.
Leaders from consensus-oriented cultures tend to
build up networks and use them to reach
compromises. They may tend to provide indirect
feedback to give face.
Conflict Consensus
CULTURAL IMPACT OF CULTURE ON LEADING INTERNATIONAL PROJECTS
6
NATIONAL CULTURE, ORGANIZATIONAL CULTURE, AND MOTIVATION
Motivation is a crucial component of leadership.
Motivation highly depends on individual preferences.
Organizational culture plays an important role regarding
motivation, reflected in available HR systems.
Maslow’s hierarchy of needs (see next slide) provide the project
manager with a rough orientation regarding motivational
preferences allocated to national cultures.
7
Safety Needs
Culture influences: Uncertainty Avoidance
Physiological Needs
Social Needs
Culture influences: Femininity,
Individualism / Collectivism
Esteem Needs
Self-
Actualization
Culture influences: Power Distance
Culture influences:
Individualism Collectivism
8
National culture and motivation
DIFFERENT LEADERSHIP STYLES BASED ON GLOBE STUDY
Charismatic / Value-based leadership.
Team-oriented leadership.
Participative leadership.
Humane-oriented leadership.
Autonomous leadership.
An international leader has to be able to switch between the
styles.
Charismatic / Value-based leadership style is most
appropriate for leading across geographical boundaries.
9
COMPETENCIES FOR LEADING INTERNATIONAL PROJECTS
Competencies are consistent ways of behaving or thinking.
They can be divided into:
Motives
Traits
Self-concept
Knowledge
Skill
Important competencies for international project managers:
1.Global organizing skills.
2.Technical skills.
3.Cross-cultural skills.
4.Global communication literacy.
International project managers should have a certain personality in order to
be effective (see next slide).
10
Traits of
effective
international
project
managers
Adaptabilit
y
Authenticit
y
Empathy
Context/
Culture-
sensitivity
Courage
Enthusias
m
Initiative
&
Innovative
-ne
ss
Personal
stability
Open-
mindedne
ss
Patience
&
Persistenc
e
Respect
for
difference
s
11
Are you ready for leading international projects?
1 Initiating 2 Planning 3 Executing 4 Completion
1. Staff the project
2. Secure early
involvement
3. Conduct team building sessions
4. Assess
training needs
5. Provide context
6. Organize for
success
7. Continuously clarify project mission and scope
8. Foster a culture of open-mindedness and improvement
9. Build and maintain commitment
10. Ensure effective communication
Re-assess
training needs
12
Main tasks of an international project manager
THE INTERNATIONAL PROJECT TEAM
International project team:
Number of people from different cultures, ideally with
complementary skills, who pursue a common goal together.
Criteria of a successful international project team:
Commitment
High moral and team spirit
Fun at work
High need for achievement
Self-direction
Change orientation
Quality orientation
Effective conflict management
Effective communications
13
1.
• Interview key players
2.
• Plan the first meetings
3.
• Decide on the contents of the first meetings
4.
• Focus on building interrelationships
5.
• Explore cultural similarities and differences
6.
• Agree on ground rules for co-operation
14
How to build a successful international project
team
IMPLEMENTING AND
CONTROLLING INTERNATIONAL
PROJECTS
Chapter
7
THE CHALLENGE OF IMPLEMENTING AND CONTROLLING AN
INTERNATIONAL PROJECT
The efficiency and efficacy of the processes and activities in the
implementation phase highly depend on the quality of the output of
the initiation and planning phases.
The main activities in the implementation phase follow the Plan-Do-
Check-Act cycle:
Implement activities based on the project master plan.
Check the status of the project at regular intervals.
Compare the results of these status checks with the plan.
Act in case of deviances between the plan and the actual status
by implementing counter measures.
2
MONITORING AND CONTROLLING
Project monitoring refers to keeping track or checking a situation
for a special purpose.
Project controlling entails an element of influence and exertion of
power to rectify undesired situations:
Direct control (subject of this chapter): Fact-based controlling of
resources with tools and techniques.
Indirect control (subject of other chapters) : Person-oriented
controlling, using stakeholder management, leadership, motivation,
negotiation, conflict management.
The detailed inputs, and outputs of these activities will be explained
on the following slide.
3
Required inputs:
Project Proposal and Project Master Plan , i.e.
Required tools and
techniques:
1. Change orders
2. Change documentation supported by IT
3. Follow up of issue log in status
meetings
1
3
2
4
PLAN
DOCHECK
ACT
The
Monitoring
Cycle
1. Inadequate allowance for time in
planning phase
2. Inadequate specifications
3. Inadequate knowledge about customer’s
needs
4. Lack of discipline
5
. Improvements due to technological
progress
6
. Unforeseeable circumstances
1. Stakeholder Matrix
2. Cultural gap analysis
3. Diversity-Complexity Assessment
4. Project Scope Statement
5. Enhanced Risk Register
6. Resource loaded Gantt charts
7. Cumulative spread sheets
8
. Quality plan incl. specs
9
. Project structure
10. Contracts
Main output:
Data in form of nominal scale, interval scale, or descriptions
Required activities:
• Collection of hard data, mainly supported by IT
• Collection of soft data considering impact of cultural
diversity
Main reasons for variances:
1. Data in various forms
2. Observations
Required tools and
techniques:
1. Red/Amble/Green
2. Milestone Analysis
3. Critical Path
4. Earned Value Analysis
5. Balanced Score Card
Required inputs:
Required inputs:
1. Analysis of deviations or variances
2. Analysis of their root causes
Main output:
• Deviation analysis regarding time, cost, quality, scope,
satisfaction level
• Issue log
Required activities:
• Decision on countermeasures
• Claim management
• Change management
4
CULTURAL IMPACT ON PROJECT IMPLEMENTATION (1)
The application of the cultural gap analysis helps the project
manager selecting adequate controlling and monitoring techniques.
It also raises his or her awareness regarding potential behavioural
differences within the team in the implementation phase.
An important difference to keep in mind:
In task-oriented cultures, remote or virtual controlling usually works.
In relationship-oriented cultures, personal controlling and support is
difficult to replace by remote controlling techniques.
The following two slides give a systematic overview of potential
behavioural differences among project members in the execution
phase.
5
The higher the inclination to avoid risk, the more
likely it is that important decisions due to a changing
environment get delayed due to the fact that more
details are needed for decision making. If decisions
are avoided, plans cannot be modified, and
monitoring gets meaningless.
Embracing
risk
Avoiding risk
Data collection and reporting: persons from
individualistic cultures tend to feel more comfortable
responding to non-anonymous interviews or
questionnaires for data collection. They also tend to
feel more comfortable with measurement of their
personal performance compared to team members
from collectivistic cultures.
Individual Group
Individuals from rather circumstantial cultures might
feel that it does not make sense to monitor and
revise ‘old’ plans. They might feel that it is sufficient
to adapt to changes when they come, without
documenting deviations from the original plan.
Universal
Circumstan-
tial
CULTURAL IMPACT ON PROJECT IMPLEMENTATION (2)
6
Project managers from achievement-oriented
cultures may tend to invest some time in monitoring
on a regular basis in order to counteract quickly.
More status-oriented project managers might spend
their time on presumably more rewarding activities
like politics or building networks.
Achievement
Standing /
status
Prioritization of tasks under time constraints might be
difficult for individuals from synchronic cultures.
Sequential Synchronic
Individuals from more pragmatic-orientated cultures
may prefer quick action and countermeasures over
thorough analysis of the cause of deviations from the
plan.
Theoretical Pragmatic
Task Relationship
Individuals from relationship-oriented cultures could
have difficulties in reporting issues or anything bad
in order not to ruin the relationship to the
person
they are reporting to.
They may also need more direct physical follow-up
in terms of encouragement rather than virtual status
meetings.
CULTURAL IMPACT ON PROJECT IMPLEMENTATION (3)
7
MONITORING TOOLS AND TECHNIQUES
Project monitoring:
Data Collection:
Frequency count or nominal scale data.
Raw numbers or interval scale data.
Verbal characterization.
Documentation.
Reporting project information:
Routine reports.
Special analysis reports.
Exception reports.
Pre-requisite:
Existence of relevant performance indicators, called Key Performance Indicators
(KPI).
Areas to be monitored:
‘Hard’ facts: Time, cost, measurable quality.
‘Soft’ things: Goal commitment of project team and initial clarity of goals,
establishment of clear communication, adequate project team capabilities, project
culture.
8
PARTICULARITIES OF MONITORING INTERNATIONAL PROJECTS
Tends to be more complex than monitoring standard projects.
Context plays a big role.
Reports need to be customized to expectation of recipients that may
be culturally impacted.
Attention needs to be paid to developments within the project, but
also outside of the project.
The monitoring matrix as depicted in the following slides helps with
this task.
9
1
0
Internal
Completion
1. Resources: time, cost
2. Productivity of human resources
(due to cultural diversity)
3. Quality
4. Scope
5. Delays of input from other projects
6. Support level from HQ/top
management
7. Efficiency and consistency of
business processes across locations
1. Executive management
2. Steering committee
3. Line managers
4. Heads of subsidiaries
5. Project team members
6. Users within
organization
1. Customer
2. Suppliers
3. Subcontractors
4. Consultants
5. (International) users outside of
organization
1. Economic situation of the countries
the project operates in
2. Government regulations and
approvals (changes, delays)
3. Natural disasters or untypical
weather change
4. Technological problems like power
outages
More details see Chapter 4
Satisfaction
External
Monitor matrix for international projects
CONTROLLING TECHNIQUES (1)
Low tech controlling tools:
Traffic light system:
Rather a visualization method than a generic control tool. Its effectiveness depends on underlying criteria (see example on next slide).
Due to its self-explanatory colour coding very suitable for international projects.
Milestone analysis:
Review meetings are conducted around pre-defined milestones.
Important to have clear criteria to pass a milestone.
Approach is easy to use and easy to learn.
Can be combined with team-building events.
11
Criteria for project status
light setting
Profitability
R&D costs
Milestone review
Specific project risks
Project resources
Red, if any of the criteria
is red.
Total project traffic
light status
Yellow, if any of the
criteria is yellow.
Green, if all criteria is
green.
EXAMPLE OF TRAFFIC LIGHT TOOL
12
CONTROLLING TECHNIQUES (2)
More complicated controlling tools:
Earned Value Analysis (EVA):
Shows the relationship between variances in cost, schedule and project performance.
Suitable for controlling long-lasting, complex, international projects.
Earned value is the value expressed in a currency of the work accomplished at a certain point in time based upon the planned
or budgeted value for the work.
Automation of control by the use of expert systems:
Expert systems are IT based.
Input relies on traditional data collection methods.
Balanced Score Card (BSC):
Apart from financial control, more intangible performance areas like customer’s satisfaction, internal business processes, and
learning and growth need to be monitored.
13
Time
C
o
s
t
in
T
€
36
80
146
225
350
458
565
693
841
1.000
0
100
200
300
400
500
600
700
800
900
1.000
1.100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Planned cost in relation to
schedule
14
Example of EVA Calculation (1)
Time
C
o
s
t
in
T
€
36
80
146
225
350
458
565
693
841
1.000
36
80
160
240
390
503
610
748
900
1.059
0
100
200
300
400
500
600
700
800
900
1.000
1.100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Planned
Actual
15
Example of EVA Calculation (2)
0
100
200
300
400
500
600
Apr May Jun
AC = 503
Time
C
o
s
t
in
T
€
PC = 458
SVm
SV = 54
CV = -99
EV = 404
16
Example of EVA Calculation (3)
MANAGING PLANNED AND UNPLANNED CHANGE
Detect variations from the plan:
Identifying of issues through context scanning (e.g. with monitoring
matrix).
Entering the issue into a special forma called an issue log (see next
slide).
Allocating resources to solving the issue.
Following up the progress of implementing change to solve the issue
until completion.
Central version control:
Change requests of changes in progress need to be administered
by a central database.
Transparency and accessibility of change data is important.
Claim management is a special form of change management.
17
Issue Log
No. Date Description
Impact (in terms
of project
completion)
Suggested
solution
Responsible
person
Date of
comple-
tion
18
Example of issue log