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1、Project Management10.Global Project Management,Week 10,Today we learn to apply the project management framework to IT projects within a global context,Gray&Larson,2006,Chs 12 and 15.,Concepts we will cover,Project PartneringKey Practices in PartnershipsTypes of ContractsContract ChangesInternational
2、 ProjectsInternational AssignmentsEnvironmental FactorsCross Cultural FactorsCross-Cultural Orientations,Cultural Dimensions FrameworkWorking in Different CulturesSelection and TrainingSuccessful PartneringSustaining RelationshipsCelebrating SuccessPartnering FailuresThe Art of NegotiatingCustomer R
3、elations,Concepts we will cover,Project PartneringKey Practices in PartnershipsTypes of ContractsContract ChangesInternational ProjectsInternational AssignmentsEnvironmental FactorsCross Cultural FactorsCross-Cultural Orientations,Cultural Dimensions FrameworkWorking in Different CulturesSelection a
4、nd TrainingSuccessful PartneringSustaining RelationshipsCelebrating SuccessPartnering FailuresThe Art of NegotiatingCustomer Relations,What is project partnering?,Project Partnering is a process of transforming contractual arrangements into a cohesive,collaborative team that deals with issues and pr
5、oblems encountered to meet a customers needs,Project Partnering is a process of transforming contractual arrangements into a cohesive,collaborative team that deals with issues and problems encountered to meet a customers needs,Assumptions 1.the traditional adversarial relationship between the owner
6、and contractor is ineffective and self-defeating2.that both parties share common goals and will mutually benefit,Reduced administrative costsBetter resource useImproved communicationImproved performance,Advantages,Disadvantages,?,Existence of common goalsHigh costs of the adversarial approachShared
7、benefits of the collaborative approach,These things help,These things dont,Conflicting goalsLack of trustHighly formal relationshipPushing people before they are ready,Its not as easy as it sounds,Sub Contractor,End Customer,Performing organisation,Client organisation,Consider this scenario,Sub Cont
8、ractor,End Customer,Performing organisation,Client organisation,Consider this scenario,Goal alignment?,Sub Contractor,End Customer,Performing organisation,Client organisation,Consider this scenario,Maximise revenue,minimise costs,Cheap and convenient,Reliable margin,on time and budget,generate more
9、work,customer satisfaction&minimise risk,Sub Contractor,End Customer,Performing organisation,Client organisation,Consider this scenario,Maximise revenue,minimise costs,Cheap and convenient,Reliable margin,on time and budget,generate more work,customer satisfaction&minimise risk,Conflict!,The sub con
10、tractor wants to use existing systems and processes,which may help the P.O.s ability to manage costs,but might restrict its ability to generate goodwill through lack of flexibility.,Sub Contractor,End Customer,Performing organisation,Client organisation,Consider this scenario,Maximise revenue,minimi
11、se costs,Cheap and convenient,Reliable margin,on time and budget,generate more work,customer satisfaction&minimise risk,Conflict!,The P.O.wants to manage its delivery to be on time and on target.This helps the client minimise risk,but decreases flexibility.New customer requirements will be harder to
12、 implement.,Sub Contractor,End Customer,Performing organisation,Client organisation,Consider this scenario,Maximise revenue,minimise costs,Cheap and convenient,Reliable margin,on time and budget,generate more work,customer satisfaction&minimise risk,Conflict!,The client organisation wants to maximis
13、e customer satisfaction,which may lead to trying to include all possible client requirements.This will probably make the solution too complex for most customers who want a cheap and convenient solution.,Sub Contractor,End Customer,Performing organisation,Client organisation,Collaborating isnt always
14、 easy.,Maximise revenue,minimise costs,Cheap and convenient,Reliable margin,on time and budget,generate more work,customer satisfaction&minimise risk,Conflict!,Conflict!,Conflict!,Concepts we will cover,Project PartneringKey Practices in PartnershipsTypes of ContractsContract ChangesInternational Pr
15、ojectsInternational AssignmentsEnvironmental FactorsCross Cultural FactorsCross-Cultural Orientations,Cultural Dimensions FrameworkWorking in Different CulturesSelection and TrainingSuccessful PartneringSustaining RelationshipsCelebrating SuccessPartnering FailuresThe Art of NegotiatingCustomer Rela
16、tions,Partnering RelationshipsMutual trust forms the basis for strong working relationships.Shared goals and objectives ensure common direction.Joint project team exists with high level of interaction.Open communications avoid misdirection and bolster effective working relationships.Long-term commit
17、ment provides the opportunity to attain continuous improvement.,Traditional Practices Suspicion and distrust;each party is wary of the other.Each partys goals and objectives,while similar,are geared to what is best for them.Independent project teams;teams are spatially separated with managed interac
18、tions.Communications are structured and guarded.Single project contracting is normal.,Key Practices in Partnerships,Table 12.1 Project Partnering Framework(Gray&Larson,2006,p384),Partnering RelationshipsObjective critique is geared to candid assessment of performance.Access to each others organizati
19、on resources is available.Total company involvement requires commitment from CEO to team members.Integration of administrative systems equipment takes place.Risk is shared jointly among the partners,encouraging innovation and continuous improvement.,Traditional Practices Objectivity is limited due t
20、o fear of reprisal and lack of continuous improvement opportunity.Access is limited with structured procedures and self-preservation taking priority over total optimization.Involvement is normally limited to project-level personnel.Duplication and/or translation takes place with attendant costs and
21、delays.Risk is transferred to the other party.,Key Practices in Partnerships,Figure 12.1 Project Partnering Framework(Gray&Larson,2006,p384),Concepts we will cover,Project PartneringKey Practices in PartnershipsTypes of ContractsContract ChangesInternational ProjectsInternational AssignmentsEnvironm
22、ental FactorsCross Cultural FactorsCross-Cultural Orientations,Cultural Dimensions FrameworkWorking in Different CulturesSelection and TrainingSuccessful PartneringSustaining RelationshipsCelebrating SuccessPartnering FailuresThe Art of NegotiatingCustomer Relations,Types of Contracts,Types of Contr
23、acts,Fixed Price,Cost Plus,Types of Contracts,Fixed Price,Cost Plus,AKALump Sum,AKATime and Materials,Types of Contracts,Fixed Price,The contractor lowest bid agrees to perform all work specified in the contract at a fixed price.Disadvantages More difficult and more costly to prepare(for client)The
24、risk of underestimating project costs(for contractor)Contract adjustmentsRe-determination provisionsPerformance incentives,Types of Contracts,Cost Plus,Contractor is reimbursed for all direct allowable costs(materials,labor,travel)plus prior-negotiated fee(set as a percentage of the total costs)to c
25、over overhead and profit.Risk to client is in relying on the contractors best efforts to contain costsControls on contractorsperformance and schedule incentivescosts-sharing clauses,Concepts we will cover,Project PartneringKey Practices in PartnershipsTypes of ContractsContract ChangesInternational
26、ProjectsInternational AssignmentsEnvironmental FactorsCross Cultural FactorsCross-Cultural Orientations,Cultural Dimensions FrameworkWorking in Different CulturesSelection and TrainingSuccessful PartneringSustaining RelationshipsCelebrating SuccessPartnering FailuresThe Art of NegotiatingCustomer Re
27、lations,When working under a contract change must be controlled.,Week 4,The contract Change Control Systems must link to project change control systems,Process by which a contracts authorized scope(costs and activities)may be modified:paperworktracking systemsdispute resolution proceduresapproval le
28、vels necessary for authorizing changes,If you dont include change control system provisions in the original contract,what will happen?,Concepts we will cover,Project PartneringKey Practices in PartnershipsTypes of ContractsContract ChangesInternational ProjectsInternational AssignmentsEnvironmental
29、FactorsCross Cultural FactorsCross-Cultural Orientations,Cultural Dimensions FrameworkWorking in Different CulturesSelection and TrainingSuccessful PartneringSustaining RelationshipsCelebrating SuccessPartnering FailuresThe Art of NegotiatingCustomer Relations,Classes of International ProjectsDomest
30、icOverseasForeignGlobal,Domestic,Overseas,Foreign,Global,Done at home for clients at home(e.g.my day job),Doing work for local clients in a foreign country(e.g.mining project for Australian firm in New Guinea),Done in a foreign country for clients in that country(e.g.a project for Microsoft performe
31、d in the USA),Done by a team located around the world(e.g.Siemens global product development team),Issues in International ManagementEnvironmental factorsGlobal expansion ChallengesSelection and training,Concepts we will cover,Project PartneringKey Practices in PartnershipsTypes of ContractsContract
32、 ChangesInternational ProjectsInternational AssignmentsEnvironmental FactorsCross Cultural FactorsCross-Cultural Orientations,Cultural Dimensions FrameworkWorking in Different CulturesSelection and TrainingSuccessful PartneringSustaining RelationshipsCelebrating SuccessPartnering FailuresThe Art of
33、NegotiatingCustomer Relations,International Assignments,PositivesIncreased incomeIncreased responsibilitiesCareer opportunitiesForeign travelNew lifetime friends,NegativesAbsence from home and friends,and familySecurity risksMissed career opportunitiesDifficulties with language,culture,and laws,Conc
34、epts we will cover,Project PartneringKey Practices in PartnershipsTypes of ContractsContract ChangesInternational ProjectsInternational AssignmentsEnvironmental FactorsCross Cultural FactorsCross-Cultural Orientations,Cultural Dimensions FrameworkWorking in Different CulturesSelection and TrainingSu
35、ccessful PartneringSustaining RelationshipsCelebrating SuccessPartnering FailuresThe Art of NegotiatingCustomer Relations,6 Environmental Factors,Figure 15.1 Environmental Factors Affecting International Projects(Gray&Larson,2006,p490),Legal/PoliticalPolitical stabilityNational and local laws and re
36、gulationsGovernment,state and local bureaucraciesGovernment interference or supportGovernment corruption,SecurityInternational terrorismNational and local security Local crime and kidnappingRisk management,GeographyClimate and seasonal differencesNatural obstacles,EconomicGross domestic product(GDP)
37、Protectionist strategies and policiesBalance of paymentsCurrency and exchange ratesInflation ratesLocal labor force:supply,educational and skill levels,InfrastructureTelecommunication networksTransportation systemsPower distribution gridsUnique local technologiesEducational systems,CultureCustoms an
38、d social standardsValues and philosophiesLanguageMulticultural environments,Environmental analysis in action,Figure 15.2 Assessment Matrix Project Site Selection(Gray&Larson,2006,p495),Figure 15.3 Evaluation Matrix Breakdown for Infrastructure(Gray&Larson,2006,p495),Concepts we will cover,Project Pa
39、rtneringKey Practices in PartnershipsTypes of ContractsContract ChangesInternational ProjectsInternational AssignmentsEnvironmental FactorsCross Cultural FactorsCross-Cultural Orientations,Cultural Dimensions FrameworkWorking in Different CulturesSelection and TrainingSuccessful PartneringSustaining
40、 RelationshipsCelebrating SuccessPartnering FailuresThe Art of NegotiatingCustomer Relations,Cross Cultural Factors,Week 4,Week 4,Organisational culture models,Culture is a system of shared norms,beliefs,values,and customs that bind people together,creating shared meaning and a unique identity,Cultu
41、ral DifferencesGeographic regionsEthnic or religious groupsLanguageEconomic,What do we call it when someone has a belief that their cultural values and methods are superior to others?,What do we call it when someone has a belief that their cultural values and methods are superior to others?,Ethnocen
42、tric Perspective,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 countriesIt manifests as ignoring the“people factor”in other cultures
43、 by putting work ahead of building relationships,You(and I)need to make adjustments when dealing with people from other cultures.,Relativity of time and punctualityCulture-related ethical differencesPersonal and professional relationshipsAttitudes toward work and life,Concepts we will cover,Project
44、PartneringKey Practices in PartnershipsTypes of ContractsContract ChangesInternational ProjectsInternational AssignmentsEnvironmental FactorsCross Cultural FactorsCross-Cultural Orientations,Cultural Dimensions FrameworkWorking in Different CulturesSelection and TrainingSuccessful PartneringSustaini
45、ng RelationshipsCelebrating SuccessPartnering FailuresThe Art of NegotiatingCustomer Relations,Relation to Nature:How people relate to the natural world around them and to the supernaturalTime Orientation:The culture focus on the past,present,or futureActivity Orientation:How to live:“being”or livin
46、g in the moment,doing,or controllingBasic Nature of People:Whether people viewed as good,evil,or some mix of these twoRelationships Among People:The degree of responsibility one has for others,Note:The line indicates where the United States tends to fall along these issues.,Figure 15.4 Kluckhohn Str
47、odtbecks Cross-Cultural Framework(Gray&Larson,2006,p495),Concepts we will cover,Project PartneringKey Practices in PartnershipsTypes of ContractsContract ChangesInternational ProjectsInternational AssignmentsEnvironmental FactorsCross Cultural FactorsCross-Cultural Orientations,Cultural Dimensions F
48、rameworkWorking in Different CulturesSelection and TrainingSuccessful PartneringSustaining RelationshipsCelebrating SuccessPartnering FailuresThe Art of NegotiatingCustomer Relations,Cultural Dimensions Framework,Individualism versus collectivismIdentifies whether a culture holds individuals or the
49、group responsible for each members welfarePower distanceDescribes degree to which a culture accepts status and power differences among its membersUncertainty avoidanceIdentifies a cultures willingness to accept uncertainty and ambiguity about the futureMasculinity-femininityDescribes the degree to w
50、hich the culture emphasizes competitive and achievement-oriented behavior or displays concerns for relationships,Figure 15.5 Sample Country Clusters on Hofstedes Dimensions of Individualism Collectivism and Power Distance(Gray&Larson,2006,p499),Where are we on this grid?,Concepts we will cover,Proje
