International Project Management
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Those projects have all in common a major characteristic : they are '''complex project'''. In this case, complexity is more due to organizational and geographical causes. The manager is faced to multiple interdependencies and stakeholders spread around the world. He has to find an adequate structure to cope with interdependent interactions but also which enable communication across different time zones. In fact, the complexity of those project is one of the reason why standard management techniques did not work well.<br /> | Those projects have all in common a major characteristic : they are '''complex project'''. In this case, complexity is more due to organizational and geographical causes. The manager is faced to multiple interdependencies and stakeholders spread around the world. He has to find an adequate structure to cope with interdependent interactions but also which enable communication across different time zones. In fact, the complexity of those project is one of the reason why standard management techniques did not work well.<br /> | ||
| − | [[File:International Project Characteristics.png|thumb| | + | [[File:International Project Characteristics.png|thumb|500px|Figure 1 : International Project Characteristics]] |
==== Risk ==== | ==== Risk ==== | ||
Because of this complexity, another characteristic is '''risk'''. In most of those project and especially in the construction field, budget and planning over-runs are expected. It is common in standard project too but the factor for uncertainty is much higher in International Project like a political instability in one of the country involve or a change of government and a new political line. <br /> | Because of this complexity, another characteristic is '''risk'''. In most of those project and especially in the construction field, budget and planning over-runs are expected. It is common in standard project too but the factor for uncertainty is much higher in International Project like a political instability in one of the country involve or a change of government and a new political line. <br /> | ||
Revision as of 20:12, 15 September 2016
Globalization has brought us a more integrated and interdependent world economy and therefore is creating an increasing number of international project, i.e. a project that reach beyond national boundaries regarding either the project purpose or the nationality of the stakeholders. However, survey shows only a 40% success rate of international effort. One would think that standard project management methods can be applied within those project as it is quite successful on a national scale. But international projects bring many different issues that are not covered by standard methods. One of the most difficult challenge companies have to undergo is cultural differences. To identify and mitigate all the new issues created by international projects, international project management requires unique methods, tools and techniques.
This article will first deal with the definition of international project management and emphasizes the main differences between international projects and standard projects. A method to identify all the challenges that ensues from international projects will be developed as, depending of the project, you can have quite different issues. Finally, the key success factors in international project management will be exposed.
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What is an international project ?
General idea
In international project, you have the word project, so of course you can consider it as a directed work that is aimed at achieving specific goals within a defined budget and schedule. However, what’s make International Project different is that it involves multiple locations, entities organizations, and business units.
These are a few examples of what you can consider as international project management :
- - A major construction project in another country that involves many subcontractors of different nationalities e.g. Fermen Tunnel in Denmark
- - Two companies are merging their operations e.g. AB In Bev and SABMiller
- - A company is deploying a new product in a region e.g.
- - International efforts by governments e.g. war against terror or migration policy
- - A major construction project in another country that involves many subcontractors of different nationalities e.g. Fermen Tunnel in Denmark
Main characteristics
Complexity
Those projects have all in common a major characteristic : they are complex project. In this case, complexity is more due to organizational and geographical causes. The manager is faced to multiple interdependencies and stakeholders spread around the world. He has to find an adequate structure to cope with interdependent interactions but also which enable communication across different time zones. In fact, the complexity of those project is one of the reason why standard management techniques did not work well.
Risk
Because of this complexity, another characteristic is risk. In most of those project and especially in the construction field, budget and planning over-runs are expected. It is common in standard project too but the factor for uncertainty is much higher in International Project like a political instability in one of the country involve or a change of government and a new political line.
Uniqueness
International projects have unique objectives and most of the time no former example to look for. The context in which they happened is quite different : countries have differents cultures, societal and political structures, technological levels or different attitudes regarding sustainability for example.
Diversity
Another characteristic of those projects is diversity and cultural differences is one of the biggest challenge managers will have to face. Organizational structures may differ among the different nationalities represented as well as the languages spoken. Also educational and social background may have a huge impact of the way of working of the different stakeholders and managers have to take into account this diversity.
Dynamics
They may also face numerous and sudden changes within the project. To take into account the risks or new opportunities that may encounter the project, managers have to take the right decisions quickly. An example in a construction project may be the bankruptcy of a sub-contractors or a new regulation on construction site.
Limited resources
Moreover, the larger scope of the project implies also more resources needed especially regarding time for planning, money for transportation and co-ordination efforts. Another limited resource is the staff : it is really difficult to find the staff with the right skills to manage language and intercultural diversity.
All those characteristics make why international projects are different than standard project. Standard management techniques cannot achieve to solve the difficulties involved in international project especially regarding the scope, the purpose, the main stakeholders and the risk intensity. So that’s why new techniques and tools have to be developed.
