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Managing global project

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”It is virtually impossible for multinational corporations to exploit economies of scale and scope, maximize the transfer of knowledge or cultivate a global mind-set without understanding and mastering the management of global business teams.”

Global Projects

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MNC

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In corporations with activities in many countries

Cross national borders Cross hierarchical levels Cross functional levels Aims at utilization resources

and above all knowledge at the geographically dispersed units AND

Temporary group constellations

Pre-defined frames Pre-defined goals/quality

Defining a Global project

Coordination across geographically dispersed business units

Experiencing participation Ease the implementation of common corporate

solutions at local business units Creative solutions – reduces the risk standardization Global use of geographically dispersed knowledge

◦ Knowledge connected both to the task and performance ◦ Give rise to new knowledge ◦ Possibilities on a further learning as knowledge can be

shared and used on other projects and in the daily operations

Why global projects?

Concerning affected business units◦ Loss of important competence ◦ Use of resources ◦ ”Knowledge is power”◦ Unification around common goals/standards◦ Not-invented-here syndrome

Concerning team members◦ Geographically dispersed◦ Cultural differences ◦ Language barriers ◦ Lack of common routines and norms◦ ”Knowledge is power”

Challenges for Global Projects on Business unit and Team member

levels

Cultural differences Language barriers Standards – different requirements of each

market Different units have their own set of priorities Time-zone differences Obtaining buy-in to objectives of remote

members Poor development and communication plans Clarity in responsibilities Lack of sharing of problems when they arise Delays caused by support systems

Common problem areas

Establish strategies for task and processes Formal project start-up meeting Regular face-to-face meetings Establishing regular video-conferences Judicious use of e-mail in circulating project

information Intra-net Working with senior department management Consider the degree of diversity in relation to

the task

Dealing with problems in global projects

Creating a sense of purpose◦ What is the mission of the team?◦ What are the goals of the team?◦ Who should be a member?

Structuring the task◦ To what degree needs the task be structured?◦ What are the rules of the game?◦ How important is time and how do we manage time?◦ What work can be divided and then integrated?◦ What can be done together/apart?

Assigning roles and responsibilities◦ Who does what and is responsible for what?◦ From where should the project manager be appointed and on what criteria?◦ What is his/her role?◦ Who needs to attend meetings?

Reaching decisions◦ How should decisions be made? (vote, consensus, compromise)◦ Who is expected to make decisions? (Team vs leader)

Strategies for managing global projects – Task strategies

Team building◦ What is the mission of the team?◦ How much time for and what form of social activates?

Choosing how to communicate◦ What is the working language?◦ How to address the imbalance in level of fluency?◦ What kind of communication technology can be used?◦ What is an effective presentation?

Electing participants◦ How can one ensure participation of all members?◦ To what extent and why are some members assigned more credibility?◦ Is every members input considered?◦ Who listens/who talks/who interrupts?

Resolving conflicts◦ How should one manage a conflict?◦ Is collaboration sought if not how to enforce it?◦ To what extent should one compromise? How does one view negations?

Evaluating performance◦ How and when do we evaluate?◦ Is evaluation a two-way process?◦ How direct can feedback be?

Strategies for managing global projects – Process strategies

Establish strategies for task and processes Formal project start-up meeting Regular face-to-face meetings Establishing regular video-conferences Judicious use of ICT for circulating project

information Working with senior department

management Consider the degree of diversity in relation

to the task

Means supporting team work in global projects

Aspects affecting performance ◦ The task

Creative Computational Coordination

◦ Dimensions of heterogeneity Values Cognitive schema Demeanor Language

◦ Curvilinear effects

Diversity in global project

Hambrick et.al., 1998

Diversity of values◦ Positive for creative ◦ Neutral for computational◦ Negative for coordinative

Diversity of cognitive schema ◦ Positive for creative ◦ Positive then neutral when more than demanded ◦ Positive then negative when more than demanded

Diversity of demeanors ◦ Negative for all three

Language (common working language)◦ Limited knowledge negative for all three

Diversity in global projects

Hambrick et.al., 1998

The Global Project Manager

Understand business interdependencies Respond to multiple cultures

simultaneously Recognize the influence of cultures at home Willing to share power Demonstrate cognitive complexity Adopt a “cultural-general” approach Rapidly learn and unlearn

Managing differences

Professional knowledge◦ knowledge of work methods and processes◦ technical skills to perform certain activities

Social competence◦ knowledge of human behavior ◦ empathy◦ communication skills

Cultural competencies◦ individual background◦ experiences

Desired Skills Among Global Project Managers

Through experience Training and education Feedback from the project team Mentor-system Interest organizations

Develop project managers’ competencies

Make the project manager role legitimate in the organization

Cultural training Create career paths for project managers Develop remuneration/bonus plans Make it possible for the project manager to

develop leadership skills besides necessary skills in how to technically manage projects

Continuous follow-ups of how the departments/lines and the project teams co-operate

What can be done to support the project manager’s

position?

Unclear or ambiguous goals/objectives Ambiguous expectations concerning roles and

responsibilities Indistinct project structure Deficient cultural awareness Differences in commitment Communication barriers Poor co-operation and co-ordination across border Poor leadership High turnover off members Suppressed conflicts

Barriers to a well-functioning global project

Lack of trust

Lack of trust

Managing lack of trust◦ Schedule personal

meetings◦ Rotate and diffuse

leadership◦ Team-based

rewards/bonus systems

◦ Build social capital

Communication barriers◦ geographic◦ language◦ culture

Managing communication barriers ◦ Language and cultural

studies◦ Agree on common norms of

behavior◦ Decision-making resting

upon data ◦ Develop alternative solutions◦ Rotate the meeting locations

Global projects- problems and solutions

(Gupta och Govindarajan, 2001)

Support the strategic intents of identifying and recognizing knowledge in the MNC

Support the needs of leveraging local knowledge within the MNC

Enable economies of scale in knowledge development and sharing in the MNC

The role of global projects in knowledge levering

Knowledge as tacit and explicit Knowledge development

◦ To explore and learn new ways, while concurrently exploiting what they have already learnt

◦ Local knowledge development ◦ Global knowledge development

Knowledge sharing◦ The provision as well as the reception of knowledge is

shaped by the subsidiary sharing and the subsidiary receiving knowledge

◦ Local knowledge sharing ◦ Global knowledge sharing

Knowledge processes in MNCs

Pre-existing knowledge Practices

Interaction Communication

Knowledge development and sharing in practice

Common denominators

Initiation and planning◦ The idea of leveraging knowledge on a global level◦ Setting up the team ◦ Kick-off meeting

Actual development and progress◦ Coordination of activities◦ Communication and interaction mediated through different means,

e.g. face-to-face meetings, ICTs E-mail and telephone the most common ICTs

◦ Managing information and knowledge flows Final phase

◦ The team member as bearer of knowledge◦ The success of product launch is contingent upon the ability to

incorporate local demands◦ … at the same time, common product viable at a global market

Knowledge development and knowledge sharing – the phases

Motivation

Critical factors

The mix of skills

Socialization ICTs

Shared knowledge and understanding

Knowledge development

Knowledge sharing

Understanding local demands