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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


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


World Views – How do we learn to see the world?

How are we culturally programmed?

What is culture?


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


Edward T. Hall

High context, low context

Geert Hofstede

Cultural Dimensions

Richard D. Lewis

The Lewis Model

Linear-Active, Multi-Active,

Reactive

Cultural Gurus


http://images.google.com/imgres?imgurl=http://images.barnesandnoble.com/images/13910000/13913775.JPG&imgrefurl=http://search.barnesandnoble.com/Riding-the-Waves-of-Culture/Fons-Trompenaars/e/9780786311255&h=279&w=185&sz=13&hl=en&start=19&sig2=WjHkWZIo9ZOsyeOMfnW13w&um=1&tbnid=iGqkhUyF6ymKQM:&tbnh=114&tbnw=76&ei=mu72R4flPI2GpATK0JHUDg&prev=/images?q=hampden-turner&um=1&hl=en&rls=com.microsoft:en-us:IE-SearchBox&rlz=1I7GGLG&sa=N

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 …”

The Boss and Work

Power Distance

Western Asian

© Liu Young 6/27/2013 14 German Chamber of Commerce

Comparing Power Distance (PDI) Globally


Way of Life

Individualism Collectivism

© Liu Young 6/27/2013 16 German Chamber of Commerce

Comparing Individualism / Collectivism (IDV) Globally


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


Comparing Uncertainty Avoidance (UAI) Globally


Edward Hall – High & Low Context

© Edward Hall 6/27/2013 20 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.


Relationship Orientated

Task Orientated

© Edward Hall

Communication Styles Differing communication styles can easily cause misunderstandings


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

© Richard D. Lewis 6/27/2013 23 German Chamber of Commerce

The Lewis Model – Cultural Types


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


The Lewis Model – World View


6/27/2013 27

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


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


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

7/1/2013 31

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


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


Power Distance Power and Status have a high impact on the way in which we negotiate, make decisions and manage our stakeholders


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


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


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


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

6/27/2013 35 German Chamber of Commerce All rights reserved © Neil Millner 2009 - 2013

1. Why are relationships so important in China?


2. Why are they initially not as important in the West?


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.

German Chamber of Commerce 2013-06-27 7/1/2013 38


North West Europe / US


Building Trust High & Low Trust Societies

© Fang Han – „Behind the Smile“


China is a low trust society

Members of low trust cultures are initially suspicious of fellow nationals



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



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


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


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



You have to adapt …



…. but the whole team has to adapt!



Adaption is a process … that requires


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

Is there not a more systematic approach?



Follow the 7 key principles – the key to project success!


1. Stakeholders

2. Scope

3. Work, Plan & Quality

4. Risks

5. Team

6. Business Benefits

7. Supplier


7 Project Keys


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


Project Keys & Cultural RISK Mitigation Strategy 1


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.


Project Keys & Cultural RISK Mitigation Strategy 2


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

56

Any Questions?

Thank you! 谢谢!

6/27/2013 German Chamber of Commerce

Open Discussion

What are your main project challenges?

Have you any solutions or best practices you can share?


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