Improving Project Success when East meets West
German, French, British & Swiss Chambers of Commerce
Project Management Roundtable
Author: Neil Millner, MSc, PMP, CSCM
Date: 27th June 2013
6/27/2013 1 German Chamber of Commerce
Branch Manager @ Deustche Telekom, T-Systems China Shenzhen
Overall 7 yrs experience with Deutsche Telekom, 4 yrs in China
Overall approx 20 yrs in Telecoms & Defence industry
Bachelor of Science (Physics), Masters in Electronics
DERA, Ericsson, Imagination Technologies, FT Orange, 3, Telefonica 02, DT
Technology, R&D, Engineering, Project & Program Management
UK, Austria, Germany, Thailand & China
Numerous inter-cultural trainings & international projects
Certified Project Management Professional (PMP) since 2008
Certified Supply Chain Manager (CSCM) since 2012
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Introduction Neil Millner MSc, PMP, CSCM
Agenda & Content
Presentation – 60 mins:
Understanding Culture
Impact of Culture on Project Management
Adapting to cultural diversity
Improving project success
Open round table discussion – 60 mins:
Challenges of working on international projects
Solutions to these challenges
I appreciate.... Feedback Interactive discussion
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World Views – How do we learn to see the world?
How are we culturally programmed?
What is culture?
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9 German Chamber of Commerce
Cultural Risk Analysis A simple 3 step methodology for managing cultural diversity
1. Recognize the cultural differences between your
own and other cultures
2. Understand the Impact that cultural difference has on your project
3. Leverage cultural Synergies and Know how to reconcile cultural differences amongst the project team and stakeholders
Cultural Risk
Analysis
Recognise
differences
Know-How
to reconcile
& Synergise
differences
Understand
Impact
There are 3 steps to working successfully in a global multi-cultural environment Methodology
6/27/2013 © Transnational Management Associates (TMA)
Step 1: Recognize the cultural differences between your own and other cultures
Understand
Impact
Cultural Risk
Analysis
Recognise
differences
Know-How
to reconcile
& Synergise
differences
6/27/2013 10 German Chamber of Commerce © Transnational Management Associates (TMA)
What is Culture?
Culture is based on:
Social Norms
Values / Beliefs
Assumptions
What we experience when we visit, live or work in a country
It is what we see, smell, touch, hear, taste:
Architecture, Food, Music,
Dress, Gestures,
Language, Behaviour
Visible
Surface
文化表象
Invisible
Deep
文化内涵
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Edward T. Hall
High context, low context
Geert Hofstede
Cultural Dimensions
Richard D. Lewis
The Lewis Model
Linear-Active, Multi-Active,
Reactive
Cultural Gurus
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Geert Hofstede Cultural Dimensions
© Geert Hofstede 6/27/2013 13 German Chamber of Commerce
1. Power Distance
2. Individualism / Collectivism
3. Uncertainty Avoidance
4. Masculinity / Femininity
5. Short Term / Long Term Orientation
“Culture is how we do things around here …”
Comparing Individualism / Collectivism (IDV) Globally
© Geert Hofstede 6/27/2013 17 German Chamber of Commerce
Uncertainty Avoidance How willing are we to change and what is our attitude to risk?
CHANGE How willing are we to create change?
RISK What is our attitude to risk?
No risk no fun!
Stability Hope for the best, plan for the worst!
Flexibility
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Comparing Uncertainty Avoidance (UAI) Globally
© Geert Hofstede 6/27/2013 19 German Chamber of Commerce
strictly confidential
High Context Implicit Japanese
Arabian
Latin American
Spanish
Italian
English (UK)
French
North American (US)
Scandinavian
German
Swiss
Low Context Explicit
China
Low to High Context Context is the information that surrounds the meaning of an event. Some cultures leave more to the imagination than others. The cultures of the world can be compared on a scale from low to high context.
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Relationship Orientated
Task Orientated
© Edward Hall
Communication Styles Differing communication styles can easily cause misunderstandings
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Low Context Style
Explicit Direct Fact-oriented Clear and structured Result-oriented
How they could be perceived by high context communicators: How they could be
perceived by low context communicators:
“bossy” “impolite”
“aggressive” “dominant”
“cold” “unpersonal”
“hiding” “unprecise”
“unprofessional” “weak”
“not open”
High Context Style
Implicit Indirect Relationship-oriented Positive atmosphere Harmony “Codes“
© Edward Hall
The Lewis Model of Culture Key:
Blue = linear-active - cold, factual, decisive planners
Red = multi-active – warm, talkative, emotional, impulsive
Yellow = reactive – courteous, amiable, accommodating, compromising, good listener
© Richard D. Lewis 6/27/2013 25 German Chamber of Commerce
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Rhythm of Culture Which cultural type is represented by which communication style?
German Chamber of Commerce
Step 2: Understand the impact that cultural difference has on your work
Cultural Risk
Analysis
Recognise
differences
Know-How
to reconcile
& Synergise
differences
Understand
Impact
6/27/2013 28 German Chamber of Commerce © Transnational Management Associates (TMA)
PMBOK Project Management Knowledge Areas
German Chamber of Commerce © Project Management Institute 6/27/2013 29
Culture
Impact of Culture on Project Management Knowledge Areas
Legend
High Impact
Medium Impact
Low Impact
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Project Management
Communication High – Low Context
Linear Active, Multi Active, Reactive
Communication Management
Uncertainty Avoidance
Risk Management
Project Planning
Scope Management
Quality Management
Time Management
Cost management
Power Distance
Stake Holder Management
Decision Making
delegation of authority
negotiation
status
Rules vs. Relationships
Trust
Procurement Management
vendor selection
contracts
Conflict Management
Team Work
Motivation & Performance
HR Management
Individualism / Collectivism
Harmony vs. Conflict
All rights reserved © Neil Millner 2009 - 2013
The Multicultural Communication Challenge Lost in Translation
Terminology
Common English Language
Native Language
Culture / Thinking
Meaning / Understanding
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Terminology
Common English Language
Native Language
Culture / Thinking
Meaning / Understanding
All rights reserved © Neil Millner 2009 - 2013 German Chamber of Commerce
Uncertainty Avoidance Our attitude to risk, stability and change influence our approach to risk, scope, quality management and overall project planning
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Culture
Project Management
High Risk Low Risk
Flexibility Stability Uncertainty Avoidance
Risk Management
Project Planning
Scope Management
Quality Management
Time Management
Cost management
Flexible, creates opportunities out of uncertainty , sees change positively
To manage change in a controlled way more emphasis must be put on Scope Management & Change Control
Risks or short cuts that effect quality are likely to be taken
Uncertainty Acceptance
Favour stability and resist change
Spend more time mitigating risks and detailed planning so that uncertainty is reduced to a minimum
Expect a high level of quality
Uncertainty Avoidance
All rights reserved © Neil Millner 2009 - 2013
Power Distance Power and Status have a high impact on the way in which we negotiate, make decisions and manage our stakeholders
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Status
Achieved or Given
Procurement
Management
Decision
Making
Stakeholder
Management
delegation of authority
contract negotiation
Culture
Project Management
respect
stakeholder analysis
Power
Distributed or Centralised
Power Distance
All rights reserved © Neil Millner 2009 - 2013
Individualism / Collectivism Whether we see ourselves as individuals or part of a group, and our attitude to rules, conflict & harmony, has a high impact on how we build trust, manage people, negotiate contracts and get things done
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Culture
Project Management
Rules vs. Relationships
Trust
Procurement Management
vendor selection
contracts
Conflict Management
Team Work
Motivation & Performance
HR Management
Individualism / Collectivism
Harmony vs. Conflict
get things done
team trust
All rights reserved © Neil Millner 2009 - 2013
How do we live and work together?
CONTROL
Do rules apply universally to everyone or are they dependant on our
relationships?
COMMUNITY
How do we live and work together?
CONNECTION
Are we individuals or members of a group?
Individual Rules
Harmony Group Relationships
Conflict
TRUST
How do we build trust?
Impersonal
Personal
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1. Why are relationships so important in China?
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2. Why are they initially not as important in the West?
strictly confidential
Building Trust High & Low Trust Societies
© Professor Francis Fukuyama 2012
Japan Finland Denmark Germany
China Korea France Italy Taiwan Mexico
Britain
High
Medium
Low
Members of high trust societies have a ready trust for their compatriots. They are usually linear-active and assume that their fellow nationals “follow the rules”, i.e., trust a person until he or she proves untrustworthy.
Members of low trust cultures are initially suspicious of fellow nationals – they are often multi-actives or reactives who have a more flexible adherence to rules, regulations and laws
Americans who once fitted into the high trust category have a declining trust level due to perceived corruption in the state and national government and financial institutions.
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strictly confidential
North West Europe / US
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Building Trust High & Low Trust Societies
© Fang Han – „Behind the Smile“
strictly confidential
China is a low trust society
Members of low trust cultures are initially suspicious of fellow nationals
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strictly confidential
Building Trust Trust Variance in Different Cultural Categories
© Professor Francis Fukuyama 2012
Performance (do what you say you will do)
Consistency
Scientific truth
Efficient officialdom
Compassion
Closeness
Refusal to capitalise on others weaknesses
Showing others one’s own weaknesses
Protecting the others face
Courtesy
Sacrifice
Reciprocal attention
Linear-Active
cultures
trust in institutions
trust based on:
Multi-Active
cultures
trust in in-group intimates
Reactive cultures
trust in reciprocity, schoolmates
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strictly confidential
Building Trust The difference between Task & Relationship orientated cultures
Objectivity
Competence
Know How
Personal Relationship
Trust
1
2
3
Task Orientated
Culture
Relationship Orientated
Culture
1
2
3
German Chamber of Commerce 2013-06-27 7/1/2013 42
Team Building Team Performance – Tuckers Theory– 4 stages of development
Performance
Time
Fo
rmin
g
Sto
rmin
g
No
rmin
g
Perfo
rmin
g
Tucker (Team Performance) Forming: The beginning stage where the team is being formed, members are being introduced to each other and are explained their roles and responsibilities
Storming: Team members start getting confrontational and vye for the position of maximum power
Norming: Team members start confronting project problems instead of people problems
Performing: The team is most productive at this stage
© Bruce Tucker
The Storming process takes longer when building international teams, however, if built well international teams can out perform local teams
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Step 3: Leverage cultural synergies and know how to reconcile cultural differences
Understand
Impact
Recognise
differences Cultural Risk
Analysis
Know-How
to reconcile
& Synergise
differences
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strictly confidential
…. but the whole team has to adapt!
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strictly confidential
Adaption is a process … that requires
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Time Education Awareness Understanding Open Mind Empathy Willingness to change Trial & error
As a project manager you’re responsible for ensuring that all team members are working as a team The team must trust each other and be able to communicate ultimately sharing a mutual understanding The adaption process needs to be done in addition to your normal day job!
49 German Chamber of Commerce
Intercultural Project Management Team Development Program Intercultural Collaboration Mind Map
1
2
3
5
Exercise Theory Main Topic 6/27/2013 All rights reserved © Neil Millner 2009 - 2013
Understanding Culture
Cross Cultural Communications Key Challenges when
working Internationally
Delivering Successful International Projects
Inter-cultural Project Collaboration Action Plan
Intercultural Collaboration
4
strictly confidential
Follow the 7 key principles – the key to project success!
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1. Stakeholders
2. Scope
3. Work, Plan & Quality
4. Risks
5. Team
6. Business Benefits
7. Supplier
strictly confidential
7 Project Keys
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Key Key Objective RAG Comments
1. Stakeholders Stakeholders are
committed R
2. Scope Scope is realistic and
managed A
3. Work, Schedule
and Quality
Work, Schedule and
Quality are predictable G
4. Risks Risks are mitigated R
5. Team Team is high
performing A
6. Business
benefits
Business benefits
including business
case will be realised
G
7. Vendor
Performance
Vendors are performing
to expectations R
strictly confidential
Project Keys & Cultural RISK Mitigation Strategy 1
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Project Key Cultural Dimension Cultural Mitigation Strategy
Stakeholders, business benefits, objectives
Power Distance, Status, Face
Must have Senior Management commitment before engaging team. Top down approach rather than bottom up. Watch out for unreasonable requests & commitments made by / to Senior Management.
Scope & Planning Uncertainty Avoidance Challenge over commitments. Don’t believe 100% compliant, encourage questioning. Maybe doesn’t mean yes – dig deeper, clarify understanding. Be prepared to spend much more time coaching supplier and validating planning. Hold joint risk assessments during planning phase. Be more flexible, have a good change management process! As usual get written commitment and buy in to the plan.
Team Trust, Communication, Individual vs. Collective
Be prepared to spend more time during Forming & Storming phases. Define roles & responsibilities clearly & specifically (SMART) , minimize overlap of responsibilities. Don’t expect team members to resolve conflicts. Make team members aware of cultural differences, at least one f2f meeting, social events & lunches help. Spend time on 1-2-1’s, people rarely speak out in a group.
strictly confidential
Project Keys & Cultural RISK Mitigation Strategy 2
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Project Key Cultural Dimension Cultural Mitigation Strategy
Risks Communication, Uncertainty Avoidance, Face
Transparency is not the norm, hence it needs nurturing Foster an open & supportive spirit when discussing risks Blaming & punishment leads to loss of face and loss of trust and will not foster openess
Quality Uncertainty Avoidance Set intermediate production / delivery milestones Factory acceptance tests Quarterly Business Reviews Repetition - regular on-site presence, necessary to maintain quality Quality Audits & Supplier Development Emphasize full coverage of requirements during testing (tendency to focus mainly on functional requirements) Be aware of cost vs. quality trade off and quality fade Watch out for the golden sample
Supplier Trust, Uncertainty Avoidance, Communication
Be prepared to spend time building up relationships Close contact with Senior Management, approve major projects with them first Take a low trust approach rather than the high trust you’re used to – the suppliers are used to this, high trust will be perceived as naive Check reputation & references Ensure at least a dual source supplier strategy in case of spontaneous issues Quarterly Business Reviews, regular presence, relationship building