Introducing & Defining International Project Management

To begin, review these slide sets:

Introducing International Project Management

Defining an International Project

This course addresses the knowledge, skills, and behaviors that a project manager
must have to successfully manage projects that span organizations, national
boundaries, and cultural differences.

Recall that a PROJECT is a temporary endeavor designed to produce a unique

product, service or result with a defined beginning and end (usually time-
constrained, and often constrained by funding or deliverables), undertaken to meet
unique goals and objectives, typically to bring about beneficial change or added
value.

 Temporary means that every project has a definite beginning and a

definite end.
 Projects involve doing something that has not been done before and which is,
therefore, unique.
 Because the product of each project is unique, the characteristics that
distinguish the product or service must be progressively
elaborated. Progressively means proceeding in steps; elaborated means
worked out with care and detail.

PROJECT MANAGEMENT is the application of knowledge, skills, tools, and

techniques to project activities to achieve project requirements.

The PROJECT TEAM manages the work of the project, typically involving
competing demands for scope, time, cost, risk, and quality and dealing with
stakeholders with differing needs and expectations.

INTERNATIONAL PROJECTS are those that span multiple locations or countries,

entities, organizations, and/or business units. With globalization, mergers, and
acquisitions on the increase, international projects are becoming more frequent.

INTERNATIONAL PROJECT MANAGEMENT is different from domestic project

management because of the effects of the global factors which we will be studying
in depth in this course:

1. Cultural, artistic, and social differences within organizations and countries

2. Languages and dialect variations
3. Religious practices
 4. Legal, regulatory and reporting requirements
5. Technology level differences in different regions
6. Infrastructure variations
7. Time zone differences and perceptions of time
8. Political environments from region to region
9. Gender and racial issues, personal liberty
10. Corruption and bribery

More on the Global Factors

Here is a closer look at the global factors and how they impact the international project
manager's work. There is much more information available on each topic but not
enough time in this course to cover it all! In fact, the topic of global cultures could be a
course in itself.

1. Cultural, artistic, and social differences within firms and

among and within countries

The New York Times had an excellent article about cultural intelligence, "How to Shake
Hands or Share A Meal with an Iraqi." As you read the article, assume you are a PM
with one of the many companies that has been contracted to re-build Iraq—Halliburton,
Blackwater Security, General Electric Company, etc.—and think about:

 How would the cultural "rules" help or hinder your work?

 What about the ex-pats who are part of your team; what about their families
who live in Iraq with them?

As you read this article "A Man Does Not Ask a Man About His Wife," consider the
physical gestures and movements that have totally different, and innocent, meanings in
American culture, such as:

 Pointing with your finger

 The OK or thumbs up sign
 Crossing your legs so that the sole of your shoe shows
 Taking the arm of an elderly woman to assist her in any way

2. Languages and dialect variations

Spoken and written languages are inevitably interwoven with culture. I replaced the
word "culture" with the word "language" in the following comments from Geert
Hofstede (Mead, Cases and Projects in International Management, 2000). We can easily
see the connection between the language and culture:

 Language is particular to one group and not to others: Italian vs Mandarin.

  Language influences the behavior of group members in uniform and predictable
ways: managers who understand the language of the workforce can make some
predictions of how the workforce will behave in routine situations.
 Language is learned and not innate: language is handed down from one
generation to the next.
 Language includes systems of values: a manager may claim beliefs that he or
she fails to express in practice; e.g., the manager who says, "my door is always
open," but never has time to listen to your problem.

Here's another look at Languages (PDF slides).

We can look at languages and dialects from two vantage points:

1. The user interface of the product being created

2. The various spoken and written languages team members use to
communicate with one another and in their day-to-day activities.

The user interface is involved with activities such as globalization, internationalization,

and localization.

We live and work in an increasingly small world. The products we manufacture in the
US go to countries and regions around the globe: England, Europe, the Middle East,
Africa, South America, China, Korea, etc. The people of these countries and continents
speak different languages, have different cultural values, practice different religions,
and represent time, currency, and dates differently.

Organizations such as the World Trade Organization (WTO), the International Monetary
Fund (IMF), the United Nations (UN), Doctors without Borders, the International Red
Cross, and human rights groups are worldwide in their scope and application.
Companies such as Credit Suisse, Toyota, General Motors, and Halliburton are also
worldwide in their reach. We call this globalization.

In the product development world, the concept of globalization focuses on

product features that will make a product acceptable worldwide. Features might
include:

 The user interface

 The sales and marketing literature and campaigns
 The user and service manuals
 Online help systems and documentation
 Online training

Globalized products (software, electronics, automobiles, medical devices, etc.) are

designed to sell in a global market. Globalization is a process of interaction and
integration among the people, companies, and governments of different nations, a
process driven by international trade and investment and aided by information
technology (Globalization101.org).

Globalization is supported by international standards (ISO, UNICODE), organizations

(LISA), and businesses (Microsoft, Apple). Any company that has products containing
software is probably engaged in a Globalization process.

"Internationalization [...] is the process of designing a software or web application to

handle different linguistic and cultural conventions without additional engineering.
Central to Internationalization is the separation of language and cultural data from the
software source code." (© 2001-2002 Globalization Limited) In particular,
[internationalization] involves a neutral, flexible product design, so it must take place
early in the product life cycle.

Localization is the process of adapting a product to the requirements of a specific

locale. It involves the addition of cultural data and language-dependent components
such as spell-checkers and input methods, and the translation of any user-viewable
text, including: user interface, including messages, icons, buttons, online help,
documentation, packaging, etc.

Other components include:

 Date/calend
 Cultural-dependent symbols, body parts, religious symbols, and
formats
graphics with multiple meanings
 Currency fo
 Units of measure
 Phone num
 Number formats
formats
 Time formats
 Sorting rule

In the jargon of the industry, globalization is noted

as g11n, internationalization is i18n, and localization is l10n. (The algorithm is first
letter of the word, followed by the number of remaining letters minus 1, followed by the
final letter of the word.)

There is one final topic to note. When dealing with translation of human-readable text
in software applications or a user interface, developers must be concerned with the
character set; i.e., the mapping of a set of characters of a script (alphabet,
punctuation, special characters) into a set of binary codes understood by the computer.
Since most European languages have accented characters (e.g., French and German),
the standard 7-bit ASCII character set is not sufficient. A fully Internationalized
software product normally uses a double-byte or Unicode character set. A double-byte
character set uses one or two bytes and is used for Asian languages such as Chinese,
Korean, and Japanese. Unicode is a 16-bit set, which can represent most alphabetic and
ideographic characters.

3. Religious practices within different countries

For the PM who finds herself in charge of an international project, some intensive
training in language, culture, and religious practices of the target countries is in order.
A good place to start is with a consultant who specializes in training ex-pats for
corporations. There are companies that do just that type of training.

Additionally, it pays to familiarize yourself with aspects of the world's major religions:
Buddhism, Christianity, Hinduism, Islam, Judaism, and Sikhism, among others. A
library search will produce many titles of books covering the religions of the world. An
excellent book is Huston Smith's The World's Great Religions: Our Great Wisdom
Traditions (HarperCollins, 2006).

An up to date quick-reference can be found on this website: RELIGIONS. Spend a few

minutes browsing through this web site.

 How many major religions are listed?

 What are the basic concepts of each?
 Where are there similarities and where are there major differences?
 How can you inject religious culture and awareness into your thinking.

Gannon's book, Working Across Cultures (Sage, 2001), provides a brief comparison of
Buddhism, Confucianism, Hinduism, and Islam: Religious Comparisons.

The eight major religions not only have sacred or holy days; they also have a different
“Year Zero” from which they measure time. Christianity has 12 holy days and is in the
Year 2015; Christian Orthodox/Greek Christian Orthodox has 7; Judaism has 8 and is
in the Jewish Year of 5774; Islam has 6 and is currently in the Islamic Year of 1435;
Hinduism has 8; Buddhism has 3; and Sikh has 5.

Countries also have with a number of national holidays: India seems to have the fewest
with 5; Hong Kong the most with 18.

The dates of many Islamic, Hindu, and Buddhist religious holidays are provisional and
are determined by the new moon. All Jewish holidays begin at sundown the day before
the date listed.

Many religious holidays require special observances, such as fasting, personal sacrifices,
prayer, and penitence.

 Can you name the major religions of the countries with which you're doing
business?
  Can you name the major holidays?
 Do you know the customs and observances of each religious or national holiday?

4. Legal, regulatory and reporting requirements in each

country

Whether your product is a pharmaceutical compound or clothing, you will have to

address the legal, regulatory, and reporting requirements of your target countries.
This Labeling & Literature example contains images of the packaging label from a box
of Wegman's Naproxen Sodium and the package insert from a box of generic
Ibuprophen (a.k.a. Advil).

In the US, this information is regulated by the FDA under its Good Manufacturing
Practices (GMP) and is called "labeling and literature." If you were to sell these two
medicines in France, Japan or Brazil, every piece of information and data on the
package and the insert would have to be approved by the FDA counterpart in France,
Japan or Brazil. Some of the information would have to be removed; some would have
to be changed; some new information would have to be added; and all information
would have to be translated into the language of the target country.

And we're just talking about the labeling and literature. The medicines, themselves,
would have to be tested just as they were in the US. And the manufacturing processes
would have to be validated.

Doing Business 2015: Going Beyond Efficiency is a free, downloadable resource that is
the 12th in a series of annual reports measuring the regulations that enhance business
activity and those that constrain it. Doing Business presents quantitative indicators on
business regulations and the protection of property rights that can be compared across
189 economies—from Afghanistan to Zimbabwe—and over time.

Their Country Tables rank the ease of doing business with a particular country. This is
particularly helpful for the organization looking to go global with a product or service!

Conducting projects in different countries, with their unique legal and political
environments, security issues, economic factors, and infrastructure limitations and
requirements, increases complexity far beyond that of projects executed in domestic
settings. Consider this example:

A high-technology company has assigned an experienced project manager to initiate,

plan, and execute a project to develop and manufacture a complex new electronic
product. A formal selection process named a major manufacturing company in
Bratislava, Slovakia as the best production facility for the product. This manufacturer
combines the necessary experience and competence with a significant cost advantage
over competing vendors. The product’s hardware design will be done in the US, while
the development of the complex system software will mostly take place in a wholly-
owned company subsidiary in Bangalore, India. The Slovakian manufacturer has
assigned a number of test and production specialists as members of the project team.

Under a tight timeline, the project receives special attention from the technology
company’s senior management. Nevertheless, a number of issues surface as the project
moves through the planning and execution phase. One issue is the discovery that the
manufacturer’s quality systems do not meet the project’s requirements. Another is the
high staff turnover rates in Bratislava that make it difficult to build and maintain the
required know-how, a third is the changing labor regulations by Slovakian government
agencies that lead to significant cost overruns, as well as frequent misunderstandings
between the engineering teams in the US, Slovakia, and India. Making matters worse,
Slovakian management, upon learning that the software team in India encountered a
delay of several weeks, temporarily reassigned key people to other tasks. The project
manager does his best to get all tasks back on schedule, but with limited success. The
first production prototypes from Bratislava end up being two months late and failing
several critical tests.

After further attempts to get the project back on track failed, it becomes clear that the
product would miss its market opportunity. The company’s senior management decides
to stop the project and terminate the contract with the manufacturer in Bratislava, who
subsequently brings up a legal case in a Slovakian court.

5. Technology level differences

Global project managers may encounter difficulty with countries who may not be as
advanced technologically as they are. For example, the US conducting business in
underdeveloped countries may not have adequate telephone or internet access,
software/hardware, training needed to communicate with their teams, clients, or
customers. There are advances being made, however. The PewResearch Global
Attitudes Project shows that emerging nations are embracing internet and mobile
technologies, reporting "In a remarkably short period of time, internet and mobile
technology have become a part of everyday life for some in the emerging and
developing world. Cell phones, in particular, are almost omnipresent in many nations.
The internet has also made tremendous inroads, although most people in the 24
nations surveyed are still offline." Read the entire report.

Here is an interesting post: "Top 10 Countries with the Most Advanced Technology"

6. Infrastructure variations among countries

As with technology, infrastructure variations will affect the global project and how the
organization/project manager must conduct business and their teams in other
countries. Infrastructure and infrastructural services support trade globally; for
example, transport infrastructure (roads, railways, airports, seaports etc.) and the
services provided by the transport and logistics sector and telecommunications
networks and the services provided over such networks all may vary country to
country and within regions. The physical infrastructure is crucial to move goods and
services from exporting to importing countries. In addition, payments for goods and
services flow in the opposite direction from importers to exporters. Financial services
are therefore also part of the infrastructural services that support trade. (World Trade
Organization, 2015).

7. Time zone differences and perceptions of time

Sense of time differs by culture: some are exact and some are relative. Generally,
Germans are precise about the clock and Latins are more casual. In some cultures,
promptness is determined by age or status. Thus, in some countries, subordinates are
expected on time at staff meetings, but the boss is the last to arrive. Some subcultures,
like the military, have their own time system of twenty-four hours--1:00 PM civilian
time becomes 1300 hours in military time. In such cultures promptness is rewarded,
and in battles, the watches are synchronized. Yet, there are people in some other
cultures who do not bother with hours or minutes, but manage their days by sunrise
and sunset.

Time zones in the US are now relatively consistent. For most of the US (except
Arizona, Puerto Rico, Hawaii, US Virgin Islands, and American Samoa, which exercise
"local option"), the shift from central to daylight time occurs the second Sunday in
March and back again the second Sunday in November. The intent is to reduce energy
costs.

Time, in the sense of seasons of the year, varies by culture. Some areas of the
world think in terms of winter, spring, summer, and fall; but for others the more
meaningful designations may be rainy or dry seasons. In the United States, for
example, the East and Midwest may be very conscious of the four seasons, while those
in the West or Southwest tend to ignore such designations--Californians are more
concerned with rainy and mud slide months or with dry and forest fires months.

Consider the cross-cultural implications of time and time consciousness. In

some countries, company representatives may start a meeting within an hour of the
agreed time, and the sequence of one's arrival at that staff conference may depend on
one's status in the organization, or one's age. The concept of attendance can also differ
from culture to culture. In Guam, if an event is supposed to run from 12 p.m. to 2 p.m.
a Guamanian showing up at 1:55 p.m. would assert that he was there for the entire
event; an American would be insulted by that behavior and wonder why the latecomer
even bothered to show up. The length of the work day differs among cultures--in some
starting and stopping times are exact, and may be spelled out in a union contract,
whereas in others it goes by the sunrise and sunset, or the heat of the day, or the
seasons.
The rhythm of life for a people is determined by their stage of human development;
therefore, for populations in the preindustrial communities, time is shaped by the
natural cycles of agriculture; whereas in industrialized nations, the artificial time of the
clock and the assembly line regulate workers. In the superindustrial society of today,
time becomes a scarce resource, while in underdeveloped nations time is seemingly
abundant.

Time impacts human interaction. North American cultures perceive time in lineal-
spatial terms, in the sense that there is a past, a present, and a future. Being oriented
toward the future, and in the process of preparing for it, one saves, wastes, makes up,
or spends time. Zen treats time as a limitless pool in which certain things happen and
then pass. A different time orientation can cause confusion when doing business with
other cultures. (Managing Cultural Differences, Harris, Moran, and Moran)

Project Deadlines. It is important to understand the perception of time for each of

your team members. Understanding how you may need to adjust for this in your
project and in your communications is important as a project manager looking to
achieve project goals. Read this article: Different Cultures See Deadlines Differently.

8. Political environments from region to region

According to Steve Culp (2012), "Organizations make a serious mistake when they
ignore or underestimate political risk. Crises such as the ongoing Eurozone
negotiations, last summer’s debt ceiling debate in the United States, and the Arab
Spring protests throughout North Africa and the Middle East last year took form rapidly
and with little advance warning." In his article on Forbes.com, Culp shares a three-step
process that can enable organizations to identify key political risks, measure their
potential impact on performance, and determine the best method to manage such risks.

Read the article here: Political Risk Can't Be Avoided, but it can be managed. The
International PM needs to be aware of the political environments in the countries in
which they are doing business.

9. Gender and racial issues, personal liberty

Most countries grant personal or civil liberties based on governmental policies, but not
all countries grant the same liberties nor do all countries view gender or race in the
same manner. How gender is viewed in business may not have any basis in
governmental policies, but may have a significant impact on how cultural norms and
how business is conducted. In some countries, it is illegal for medical practitioners to
disclose the gender (sex) of fetuses.

10. Corruption and bribery

Local values within cultures impact ethics, corruption and or bribery in global business.
Each professional is influenced by the values, practices, and experiences absorbed since
childhood. These collective factors impact how a person perceives problems, leads
others, and makes decisions in a project setting. International business and local
cultures sometimes come into conflict when working across country boundaries. What
might be considered a standard of behavior in one country can be illegal in another
country. Standards of behavior impact international business in the areas of
management, corruption, and corporate social responsibility.

International Project Examples and More Information

Here are a few more articles to consider as you complete your individual assignments,
participate in the discussions, and work on your term project:

 Doing business abroad? Here’s how to get around language barriers

 What Issues Arise When Doing Business Globally?

Since INTERNATIONAL PROJECTS tend to be more complex than domestic

ones, remember that:

 Collaboration among teams works best

 Thorough communication is vital
 Issues and opportunities must be addressed immediately
 Management support and funding are essential (doesn't this sound familiar!)

Take a look at examples of international projects below, as well as those in the textbook.

1. The merger of Chrysler and Daimler-Benz: Daimler-Benz and Chrysler merged in late
1998, six months after announcing plans to do so. Once the financial and regulatory
merger completed, however, much of the important merger work remained: combining
two companies that had very different histories and cultures in order to achieve the
projected benefits of the deal. Daimler was a thoroughly German company (although it
had expanded into non-auto businesses), while Chrysler was one of Detroit’s Big Three
automakers.
2. The Boeing 787 Dreamliner was created in an effort to compete with Boeing's primary
European competitor Airbus. The 787 represents a new direction for Boeing in both the
materials used to construct the long haul twin engine jet as well as the world wide
network of suppliers used to create parts for the Dreamliner which was assembled in
the United States. Approximately 70% of the parts were outsourced to world wide
suppliers. Additionally, the plane would be built about 60% from composite materials
instead of traditional aluminum to create a more fuel efficient design.
3. The International Space Station (ISS) is a culmination of a joint effort by five space
agencies and 15 countries to create a low earth orbit environment for conducting
research and space exploration. The ISS space crew includes multi-national
 representatives that must work together and live together in tight quarters toward
the advancement of science.
4. Euro Disney project:Euro Disney is the fourth major theme park the Walt Disney
Corporation had attempted to create. The first three theme parks were huge
successes, including Disneyland (California), Disney World (Florida) and Disneyland
(Tokyo). Euro Disney was the first theme park the Disney Corporation owned and
operated outside of the United States. Disneyland Tokyo provides royalties to Disney
and is operated by an independent organization.

Note that every project has a TECHNICAL, BUSINESS, AND POLITICAL

PURPOSE.

Example: The Mackinac Bridge connects the Lower and Upper Peninsulas of the
State of Michigan. The bridge opened for traffic November 1, 1957.

 Technical Purpose: Demonstrate the feasibility of building a suspension

bridge across the Straits of Mackinac--a 4 mile-stretch of water that becomes
clogged with ice during the long winter months.
 Business Purpose: Improve the flow of transportation and commerce for
the State of Michigan. Without the bridge, the only way across the Straits
was by seasonal ferry service. Or a long drive through Michigan, Illinois,
Wisconsin, and Michigan, again.
 Political Purpose: Demonstrate cooperation between the State of Michigan
and the Federal Government; show the concern the State of Michigan had for
the economic welfare of its citizens.

The Global Project Management Framework

Throughout this course, we will be following the global factors listed above as well
as the principles of the Global Project Management Framework with its 25
knowledge areas. As you progress through the course, you will be asked to
integrate these global factors into your online discussions, assignments, and term
project.

Visit The Global Project Management Framework website by our textbook author,
Jean Binder, and take a look around. When you get to the home page, go to the
third tab across the top, "Our Framework," and you'll see many of the chapters
from the text along with additional content and links to a wide variety of
information. The Binder text presents a different view of the project management
body of knowledge than the PMBOK.

The Binder body of knowledge consists of 5 knowledge areas with 5 practices

in each knowledge area. The five knowledge areas form The Global Project
Management Framework® (see Figure I.17 in the Binder text):
 1. Global Teams
2. Global Communication
3. Global Organizations
4. Collaborative Tools
5. Collaborative Techniques

As you read the Introduction section in the text, pay attention to the dimensions of
global projects, the value of a radial (radar) chart, the types of global programs,
the requirements for successful programs/projects, and the organizational theories
that form the basis for The Global Project Management Framework®. Also note the
importance of conducting cost-benefit analyses before embarking on global
projects. The beauty of the Binder information is how it organizes itself into
the Global Project Management Framework.

As you read the weekly lessons online, the articles, chapters from Binder, and the
videos, note how the global factors occur repeatedly in discussions of global teams,
communications, organizations, and collaborative tools.

Just for fun, let's watch Seinfeld's episode on Cross Cultural Differences before we
move on to Week 2: