GLOBAL CONSIDERATIONS AND TRENDS PAPER

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Global Considerations and Trends

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Global Considerations and Trends

Ivan Menendez, Pooya Alam, Matthias Schueller, Tess Kroeker, Farshad Sarmad

MGT 573

                                                        Workshop VI

Project Management in the Business Environment

                                                        Eli Konorti

March 28, 2007

University of Phoenix


Global Considerations and Trends

Forecasting the future with accuracy is a challenge. However, change is a constant which will be present in the evolution of project management in the 21st century. In the past, project management was seen as an emerging skill. Today project management has arrived. Thus, project management is spreading across organizations and it is increasingly perceived as a fundamental management skill in today’s times of constant change. This paper contrasts domestic and global project management. Further, the paper examines the challenges of managing virtual teams and projects comprised of members of multi-ethnic and sociopolitical backgrounds. Partnering including cooperative and competitive alliances between competing firms is evaluated as well as the technological advances which might affect project management in the future. Finally, three future trends which may affect project management are identified.

Domestic and Global Project Management

Global project management evokes images of coordinating complex multinational projects in distributed environments with participants in many time zones using different languages and alternative value systems to deliver a product or service that will satisfy all parties (Dalcher, 2006). New challenges such as outsourcing, virtual project teams and collaborative partnerships offer practical and usable procedures, methods, and insights for competing and working in a global environment. According to Cleland and Ireland (2002, p. 243),”each domestic project has a good likelihood of becoming global in nature.” Although there are similarities between domestic and global project management, several differences can turn a global project into an extraordinary challenge.

Similarities

Each project, domestic or global, is unique. This is one of the key characteristics of projects. The matrix structure in a domestic project is as complex as in global project management. Both domestic and global project management plans have the same basic structure; they both make and implement decisions, allocate resources, manage organizational interfaces, and provide leadership to the people who are involved in the enterprise and the project (Cleland and Ireland, 2002).

Differences

The coexistence of domestic cultures in global projects creates unique communication and work-style issues, which tend to create difficulties when attempting to achieve a unity of purpose (Kealy et al., 2006). In a global project, the familiar sociology of domestic multiculturalism is often reversed. Global management has one of the most accurately assessing and predicting trends in the economic, social, and political environment that will affect the success of the project (Kealy et al., 2006). Global project managers need more training than domestic managers, especially in the field of cultural sensitivity (Kerzner, 2003). Global projects obviously have additional challenges, different languages, customs, import and export issues, local laws, security, exchange rates, time differences, travel costs, international treaties, and quality standards.

Challenges of Managing Virtual Teams

The trend toward expanding products into the worldwide market has prompted organizations to seek expertise from individuals regardless of their location. This trend has resulted in a rapid increase of “distributed work groups” or virtual teams as they are commonly known (Kerber & Buono, 2004, p.7). Virtual teams are working across space, time, organizational and geographic boundaries. The challenges with virtual teams are similar to those associated with collocated teams; however, the difficulties seem to be complicated by time and distance. As described by Bell and Kozlowski (cited in Kerber and Buono, 2004) team leaders find that achieving an understanding of and commitment to the teams purpose is more challenging without face-to-face meetings and with a lesser understanding of each other. Hence, the result may contribute to misunderstandings and conflict.  

In addition to the time and distance issues associated with virtual teams, Jenny Goodbody who is a global change manager with the BOC Group endeavored to understand the major obstacles associated with managing virtual teams (Goodbody, 2005). The following three categories describe the outcome of research conducted by Goodbody which builds from common themes in virtual project management failures and is translated into the identification of success factors for global virtual teams.

Team Formation

Many authors suggest formation is the most important stage in the life of the team.  Project management literature suggests that without an emphasis directed toward successful team formation, goals and objectives are unlikely to be achieved or at best will be partially reached through the work of individuals, rather than employing the advantage of the collective efforts of the entire team (Goodbody, 2005). The following factors contribute to development of a strong virtual team.

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  • Clear sponsorship
  • Agreed goals
  • Recruitment of the right team members
  • Linking performance measures to priorities
  • The kick-off meeting
  • Awareness of cultural influences
  • The right competencies and skills
  • Development of team identity

Trust and Collaboration

In conventional collocated teams, trust is developed through social interaction and information sharing over a period of time. The virtual team does not have this interactive dynamic and therefore must rely upon virtual interaction and information sharing to develop trust (Goodbody, 2005). The following factors are aimed at enhancing an environment of trust and collaboration.

  • Ensure consistency
  • Encourage collaboration
  • Celebrate achievements
  • ...

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