This document provides an overview of concepts covered in a class on global project management. It discusses project partnering frameworks, key partnership practices, types of contracts, managing contract changes, classes of international projects, issues in international management, international assignments, environmental factors affecting projects, cross-cultural factors, and Hofstede's cultural dimensions framework. The class will cover cultural orientation, negotiating across cultures, and sustaining international partnerships.
5. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
6. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
8. Project Partnering is a process of
transforming contractual arrangements
into a cohesive, collaborative team
that deals with issues and problems
encountered to meet a customer’s
needs
9. Project Partnering is a process of
transforming contractual arrangements
into a cohesive, collaborative team
that deals with issues and problems
encountered to meet a customer’s
needs
10. Assumptions
1. the traditional adversarial relationship between the owner and contractor
is ineffective and self-defeating
2. that both parties share common goals and will mutually benefit
11. Advantages
Advantages
Reduced administrative costs
Reduced administrative costs
Better resource use
Better resource use
Improved communication
Improved communication
Improved performance
Improved performance
16. Sub Client End
Contractor Performing organisation organisation Customer
Consider this scenario
17. Goal alignment?
Sub Client End
Contractor Performing organisation organisation Customer
Consider this scenario
18. Maximise customer
revenue, Reliable margin, on time and satisfaction Cheap and
minimise budget, generate more work & minimise convenient
costs risk
Sub Client End
Contractor Performing organisation organisation Customer
Consider this scenario
19. Maximise customer
revenue, Reliable margin, on time and satisfaction Cheap and
minimise budget, generate more work & minimise convenient
costs risk
Conflict!
Sub Client End
Contractor Performing organisation organisation Customer
The sub contractor wants to use existing
systems and processes, which may help
the P.O.’s ability tothis scenario but
Consider manage costs,
might restrict it’s ability to generate
goodwill through lack of flexibility.
20. Maximise customer
revenue, Reliable margin, on time and satisfaction Cheap and
minimise budget, generate more work & minimise convenient
costs risk
Conflict!
Sub Client End
Contractor Performing organisation organisation Customer
The P.O. wants to manage it’s delivery to be on
time and on target.
This helps the client minimisescenario
Consider this risk, but decreases
flexibility. New customer requirements will be
harder to implement.
21. Maximise customer
revenue, Reliable margin, on time and satisfaction Cheap and
minimise budget, generate more work & minimise convenient
costs risk
Conflict!
Sub Client End
Contractor Performing organisation organisation Customer
The client organisation wants to maximise
customer satisfaction, which may lead to trying to
include Consider this scenario
all possible client requirements.
This will probably make the solution too
complex for most customers who want a
cheap and convenient solution.
22. Maximise customer
revenue, Reliable margin, on time and satisfaction Cheap and
minimise budget, generate more work & minimise convenient
costs risk
Conflict!
Conflict!
Conflict!
Sub Client End
Contractor Performing organisation organisation Customer
Collaborating isn’t always easy.
23. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
24. Key Practices in Partnerships
Partnering Relationships Traditional Practices
Mutual trust forms the basis for Suspicion and distrust; each party is
strong working relationships. wary of the other.
Shared goals and objectives Each party’s goals and objectives,
ensure common direction. while similar, are geared to what is
best for them.
Joint project team exists with high Independent project teams; teams are
level of interaction. spatially separated with managed
interactions.
Open communications avoid Communications are structured and
misdirection and bolster effective guarded.
working relationships.
Long-term commitment provides Single project contracting is normal.
the opportunity to attain
continuous improvement.
Table 12.1 Project Partnering Framework
(Gray & Larson, 2006, p384)
25. Key Practices in Partnerships
Partnering Relationships Traditional Practices
Objective critique is geared to Objectivity is limited due to fear of
candid assessment of reprisal and lack of continuous
performance. improvement opportunity.
Access to each other’s Access is limited with structured
organization resources is procedures and self-preservation taking
available. priority over total optimization.
Total company involvement Involvement is normally limited to
requires commitment from CEO project-level personnel.
to team members.
Integration of administrative Duplication and/or translation takes
systems equipment takes place. place with attendant costs and delays.
Risk is shared jointly among the Risk is transferred to the other party.
partners, encouraging innovation
and continuous improvement.
27. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
30. Fixed Price
Fixed Price Cost Plus
Cost Plus
AKA
AKA AKA
AKA
Lump Sum
Lump Sum Time and Materials
Time and Materials
Types of Contracts
31. The contractor lowest bid agrees to
The contractor lowest bid agrees to
perform all work specified in the
perform all work specified in the
contract at a fixed price.
contract at a fixed price.
Disadvantages
Disadvantages
Fixed Price
Fixed Price • More difficult and more costly
• More difficult and more costly
to prepare (for client)
to prepare (for client)
• The risk of underestimating
• The risk of underestimating
project costs (for contractor)
project costs (for contractor)
Contract adjustments
Contract adjustments
• Re-determination provisions
• Re-determination provisions
• Performance incentives
• Performance incentives
Types of Contracts
32. Contractor is reimbursed for all
Contractor is reimbursed for all
direct allowable costs (materials,
direct allowable costs (materials,
labor, travel) plus prior-negotiated
labor, travel) plus prior-negotiated
fee (set as a percentage of the total
fee (set as a percentage of the total
costs) to cover overhead and profit.
costs) to cover overhead and profit. Cost Plus
Cost Plus
Risk to client is in relying on the
Risk to client is in relying on the
contractor’s best efforts to contain
contractor’s best efforts to contain
costs
costs
Controls on contractors
Controls on contractors
• performance and schedule
• performance and schedule
incentives
incentives
• costs-sharing clauses
• costs-sharing clauses
Types of Contracts
33. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
35. The contract Change Control
Systems must link to project
change control systems
36. Process by which a contract’s authorized scope (costs and activities) may be
modified:
– paperwork
– tracking systems
– dispute resolution procedures
– approval levels necessary for authorizing changes
37. If you don’t include change control system provisions in the original
contract, what will happen?
38. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
40. Done at home for clients at home
Domestic
(e.g. my day job)
Doing work for local clients in a foreign country
Overseas (e.g. mining project for Australian firm in New
Guinea)
Done in a foreign country for clients in that country
Foreign
(e.g. a project for Microsoft performed in the USA)
Done by a team located around the world
Global
(e.g. Siemens global product development team)
41. Issues in International Management
Environmental factors
Global expansion
Challenges
Selection and training
42. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
43. International Assignments
Positives Negatives
Increased income Absence from home and friends, and family
Increased responsibilities Security risks
Career opportunities Missed career opportunities
Foreign travel Difficulties with language, culture, and laws
New lifetime friends
44. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
56. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
59. Culture is a
system of shared
norms, beliefs,
values, and
customs that
bind people
together,
creating shared
meaning and a
unique identity
60. Cultural Differences
Geographic regions
Ethnic or religious groups
Language
Economic
61. What do we call it when someone has a belief
that their cultural values and methods are
superior to others?
62. What do we call it when someone has a belief that
their cultural values and methods are superior to
others?
Ethnocentric Perspective
63. What do we call it when someone has a belief that
their cultural values and methods are superior to
others?
Ethnocentric Perspective
You find it when people are conducting business in your terms; stereotyping
other countries
It manifests as ignoring the “people factor” in other cultures by putting work
ahead of building relationships
64. You (and I) need to make
adjustments when dealing with
people from other cultures.
65. Relativity of time and
punctuality
Culture-related ethical
differences
Personal and professional
relationships
Attitudes toward work and life
66. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
67. Relation to Nature: How people
relate to the natural world
around them and to the
supernatural
Time Orientation: The culture
focus on the past, present, or
future
Activity Orientation: How to
live: “being” or living in the
moment, doing, or controlling
Basic Nature of People:
Whether people viewed as good,
evil, or some mix of these two
Relationships Among People:
The degree of responsibility one
has for others
68. Note: The line indicates where the United States tends to fall along these issues.
Figure 15.4 Kluckhohn – Strodtbeck’s Cross-Cultural Framework
(Gray & Larson, 2006, p495)
69. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
70. Cultural Dimensions Framework
Individualism versus collectivism
Identifies whether a culture
holds individuals or the group
responsible for each member’s
welfare
Power distance
Describes degree to which a
culture accepts status and
power differences among its
members
Uncertainty avoidance
Identifies a culture’s willingness
to accept uncertainty and
ambiguity about the future
Masculinity-femininity
Describes the degree to which
the culture emphasizes
competitive and achievement-
oriented behavior or displays
concerns for relationships
71. Where are we on this
grid?
Figure 15.5 Sample Country Clusters on Hofstede’s Dimensions of
Individualism – Collectivism and Power Distance
(Gray & Larson, 2006, p499)
72. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
73. Relying on Local Intermediaries
Translators
Social connections
Expeditors
Cultural advisors and guides
74. Culture Shock
The natural psychological
disorientation that people
suffer when they move
into a different culture
75. Coping with Culture Shock
Create “stability zones” resembling
home
Modify expectations and behavior
Redefine priorities and develop
realistic expectations
Focus on tasks and relish
accomplishments
Use project work as a bridge until
adjusted to the new environment
Engage in exercise, meditation,
relaxation, and keep a journal
77. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
79. Selection Factors
Work experience with
cultures other than
one’s own
Previous overseas travel
Good physical and
emotional health
Knowledge of a host
nation’s language
Recent immigration
background or heritage
Ability to adapt and
function in the new
culture
80. Areas for Training
Religion
Dress codes
Education system
Holidays—national and
religious
Daily eating patterns
Family life
Business protocols
Social etiquette
Equal opportunity
81. Learning Approaches to Cultural Fluency
Information-giving—learning of information or skills from a lecture-type orientation
Affective—learning of information/skills that raise the affective responses on the part
of the trainee and result in cultural insights
Behavioral/experiential—a variant of the affective approach technique that provides
the trainee with realistic simulations or scenarios
82. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
84. And just like you have to develop a
team, you have to develop partner
relationships.
85. Selecting
Voluntary, experienced,
willing, with committed
top management.
Team
building Project
managers
Expand the partnership
Project commitment to include
stakeholders other key managers and
specialists
Build a collaborative
relationship among
the project managers.
86. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
87. Good people are hard to find.
So are good business partners.
88. If you find good
partners you want
to stick with them
89. ips!
T Establish a “we” as
st ic opposed to “us and them”
n ta attitude toward the project
Fa
3 Co-location: employees from
different organizations work
together in same location
Establish mechanisms that will
ensure the relationship
withstands problems
90. ti ps
at
gre Problem resolution
o re
4 M
Continuous improvement
Joint evaluation
Persistent leadership
92. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
94. At major milestones and the ended of the project
Conduct a jointly review of accomplishments and disappointments.
Hold a celebration for all project participants.
Recognize special contributions
97. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
103. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
105. Project management is NOT a contest.
(Usually…)
Everyone is on the same side—OURS
Everyone is bound by the success of the project
Everyone has to continue to work together
106. Principled
Negotiations call
for
Separating the people from
the problem
Focusing on interests, not
positions
Inventing options for
mutual gain
And whenever possible, use
objective criteria to help
you achieve your goals
107. If pushed, don’t push back
Ask questions instead of
making statements
Use silence as a response to
unreasonable demands
Ask for advice and encourage
others to criticize your ideas
and positions
Use Fisher and Ury’s best
alternative to a negotiated
agreement (BATNA) concept to
Warnings for dealing with work toward a win/win
Warnings for dealing with scenario
Unreasonable People
Unreasonable People
108. Concepts we will cover
Project Partnering Cultural Dimensions Framework
Key Practices in Partnerships Working in Different Cultures
Types of Contracts Selection and Training
Contract Changes Successful Partnering
International Projects Sustaining Relationships
International Assignments Celebrating Success
Environmental Factors Partnering Failures
Cross Cultural Factors The Art of Negotiating
Cross-Cultural Orientations Customer Relations
110. So what makes a customer happy?
So what makes a customer happy?
111. The negative effect of
dissatisfied customers is far
greater than positive effect of
satisfied customers
(Richins 1983)
112. The negative effect of
dissatisfied customers is far
greater than positive effect of
satisfied customers
(Richins 1983)
In today’s modern
communications environment
that message can travel faster
and wider
(Hoch, 2006)
114. Satisfaction is a perceptual
relationship!
Perceived performance
Perceived performance
Expected performance
Expected performance
115. Project managers must be skilled at
managing both customer
expectations and perceptions
116. Your checklist;
Don’t oversell the project; better to undersell
Develop a well-defined project scope statement
Share significant problems and risks
Keep everyone informed about the project’s progress
Involve customers early on decisions about project
development changes
Handle customer relationships and problems in an
expeditious, competent, and professional manner
Speak with one voice
Speak the language of the customer
117. Review
• Successful project partnering reduces costs, increases resource
utilization, improves communication and performance.
• Types of contracts include; Fixed-Price or Cost-Plus. A contract
change control system is important.
• Issues affecting international projects include; economic, legal,
security, infrastructure, culture, and geography.
• Issues for project expatriates include; dealing with culture shock,
and local services and amenities.
• Training is required in understanding foreign cultures such as;
religion, dress, education, family life, eating, holidays …
• Successful partnerships require; team building, negotiating, and
managing customer satisfaction and expectations.
118. BetterProjects.net
Source of Cover picture is unknown.
It arrived in an email. I thought I’d use it anyway.
Notas do Editor
Photo by vernatheworld at Flickr
dkonstruxion
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El Fotopakismo
El Fotopakismo
El Fotopakismo
El Fotopakismo
El Fotopakismo
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foundphotoslj
El Fotopakismo
Paul Worthington
Jeff Bauche._.·´¯)
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Earl - What I Saw 2.0
Earl - What I Saw 2.0
Earl - What I Saw 2.0
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Obscura/ Frederik Hilmer
Obscura/ Frederik Hilmer
Thomas Hawk
Cayusa
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Photo used with permission from craigwbrown
Photo used with permission from craigwbrown
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Never Cool in School
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Senior management fails to address problems or does not empower team members to solve problems Pic: Meredith_Farmer
This diagram is from a flickr age which looks at the networking influence of culture. Check it out here; http://flickr.com/photos/zachstern/118539502/ Care of zachstern Orginal etxt; “ Cultural differences are not adequately dealt with such that a common team culture develops”
Original text was “ No formal evaluation process is in place to identify problems and opportunities at the operating level or to assess the current state of the partnering relationship” Pic by Frances Berriman
Original text “ A lack of incentive for continuous improvement by contractors participating in the partnering relationship” Pic by nickwheeleroz
Artist - Sebastiano Pitruzzello (aka gorillaradio ) Lab - maya*
ex.libris
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DerrickT
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Leap Kye
Richin’s Journal article “Negative Word of Mouth by Dissatisfied Customers” is at http://www.jstor.org/pss/3203428 Picture by Travelin ' Librarian
Richin’s Journal article “Negative Word of Mouth by Dissatisfied Customers” is at http://www.jstor.org/pss/3203428 Picture by Travelin ' Librarian