Chapter 13 Flashcards
International Projects
Projects called “global,” “international,” “multinational” or “overseas”
Have stakeholders located in different countries
Have cross-national and cross-cultural project teams and work sites
International Projects (EXAMPLES)
Starting a new business in another country
Opening a branch, office, or plant in another country
Contracting with customers and/or suppliers in other countries
Manager of an International Project
Self-sufficient
Sensitive to and accepting of local culture/customs
Learn what can be applied from past projects/experiences and what cannot
Fully engaged, fully in charge
Cultural and Institutional Issues I
Language
- Translations
- Slang
- Terminology
Formality
- Greetings
- Introductions
- Workplace protocol
Cultural and Institutional Issues II
- Gift giving
- Age and respect
- Social behavior
- -Importance of social gatherings in business
- -Conduct at social gatherings
- -Dress
Food and drink
Cultural and Institutional Issues III
Punctuality and attitudes about time
Holidays, vacations, weekends:
- National public holidays
- Dates of holidays (e.g., Christmas holiday: Dec. 23—Jan. 2 versus Dec. 31—Jan. 8)
- Southern Hemisphere: Summer vacation in December
- Weekend: Saturday/Sunday vs. Thursday/Friday in Middle East
Cultural and Institutional Issues III
Labor time
-“Usual” workweek/workweek: 35-hour? Five 8-hour days?
“Usual” work day: 9 am—5 pm? 6 am—2 pm?
Layoffs
-Constrained by local rules and regulations
Cultural and Institutional Issues IV
- Laws and contracts
- -Wording and terminology on contracts
- -Usage of “Incoterms”
- -Compliance with laws of host country and home country
- Litigation, payments, meeting contract terms
- -Litigation conducted in a neutral country
- -Specify payment conditions
- -Penalties for schedule slippage/failure to meet requirements; incentives to exceed them
Cultural and Institutional Issues V
Politics:
Impact of political reform or strife, overthrow of government, military intervention
Labor strikes are often common
Local Stakeholder Issues I
Contractors:
-Costs for labor and relocation
-Costs for training and supervision
Worker productivity
-Connections with local officials, knowledge of culture, ability to avoid bureaucracy and red tape
-Knowledge of business practices
Local Stakeholder Issues II
Supporters and Customers
-Importance of gaining personal familiarity and building trust
Managers and Laborers
-Importance of showing project’s local benefits in terms of employment, services, product availability, infrastructure, etc.
Geo-National Issues I
Exchange risk and currency
Offset (Counter trade)
-Requirements on contractor spending in the host country (percentage of project cost on local labor, materials, and services)
–Direct offsets—spending tied directly to project activities
–Indirect offsets—spending on non-project endeavors (local business enterprises or improvements to local or national infrastructure)
Geo-National Issues II
Import/export restrictions:
-Apply to export/import of US technology, software, and hardware
Time zones
Ideas for International Projects (Idea 1: When project manager is seldom able to be on site)
Delegate responsibility to local project manager
- local manager reports to the global manager
- Is responsible for detailed planning and day-to-day management
Responsibility/authority of local and global project managers are clearly delineated and understood by everyone on the project.
Ideas for International Projects (Idea 2: Add a local representative to the project.)
Keeps project manager informed about local matters
Mediates with local laborers, unions, and government officials
Helps resolve cultural and regulatory issues
Represents project manager and company to the customer
Keeps project sold to customers and supporters
Arranges in-country services (reservations, local communications, interpreters, etc.)
