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Project Managers and Executives the New Challenges We Are Facing with Global Projects

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Project Managers and Executives the New Challenges We Are Facing with Global Projects Project Perspectives The annual publication of International Project Management Association 2010 Vol. XXXII ISSN 1455-4178 €8.00 is a registered trademark. is a registered ® WÄRTSILÄ SEEING A LITTLE FURTHER IS GOOD FOR BUSINESS. Which is why it’s good to remember that the initial investment is only one part of all lifecycle costs. The unique efficiency of Wärtsilä solutions cuts both fuel costs and emissions. This is just one example of how Wärtsilä solutions are good for both business and nature on land and at sea. Read more about what we can do for you and the environment at wartsila.com. Editorial The World of Table of Contents 3 The World of Global Projects 4 A model of success factors for Global Project Global Projects Management Jean Binder Paul D. Gardiner James M. Ritchie 12 The Collaboratory for Research on Global Projects hile businesses and companies are increasingly multi- (CRGP) Structure, Philosophy and Activities national we are more frequently facing projects with par- Raymond E. Levitt Wticipants representing various cultures, having different Ryan J. Orr native languages, working in different time zones and locations. 15 International cooperation for development: Design In other words, this is the world of global projects. Global projects of a competence-based model for managing are practically creeping into the life of companies of all sizes from programmes and projects small enterprises to the biggest leading players. José R. Cobo At the same time the emerged era of global projects is already Isabel Ortiz now setting new requirements to the project management compe- Carlos Mataix tencies and solutions. Later on these changes shall have impacts on 20 Safety and Health Risks in International the content of industrial project management standards. Binder, Construction Projects Gardiner and Ritchie provide an example of new arising success Yu Sun factors that are named as ‘Cross-Cultural Negotiation’, ‘Global Dongping Fang Jimmie Hinze Teamwork and Team cohesion’ and ‘Workfl ow Management Sys- tems’. Already the names of these success factors are characterising 26 The Gap Between Project Managers and Executives the new challenges we are facing with global projects. Peter Wijngaard Herman Mooi In this issue of Project Perspectives we shall explore some Victor Scholten recent fi ndings regarding global projects. Researchers have spot- ted the appearances and obvious signifi cance of global projects 34 Communication and Trust in Distributed Project already several years ago and interesting research results have Teams Helgi Thor Ingason been gained from their efforts. In Standford university a specifi c Tomas Hafl idason center named The Collaboratory for Research on Global Projects Haukur Ingi Jonasson (CRGP) have been established to study fundamental phenomena 42 Overview of The Virtual Design Team (VDT): A within this kind of manoeuvres. This center is presented in the Computational Model of Project Teams paper by Levitt and Orr. Close to me has been our co-operation Raymond E. Levitt with CRGP and our Global Project Strategies (GPS) research ef- 48 Formal and informal risk management actions in fort that was fi nalised in the end of March 2009. Some results projects originating from the GPS research are presented by Murtonen in Mervi Murtonen her paper on risk management. The named research bodies and projects represent only a few 54 Use Confucius to improve project leadership in Chinese perspective examples from the variety of studies and players in the fi eld Weiping Jiang of global projects. Practically, it is a Yun Le research community with plenty of Qinghua He others who are providing valuable contributions and new important new knowledge. I hope that the papers of this Project Perspectives with the main Published by messages and references can help The Project Management Association Finland to understand as widely as pos- (PMAF) in co-operation with International Project sible the variety of efforts and Management Association (IPMA). PMAF is: - Forum and a meeting place for project gained results in the fi eld of professionals global projects. - Developer of project thinking and knowledge - Active partner within the international project community Dr. Kalle Kähkönen PMAF serves with - Two project management journals (Finnish & Chief Research Scientist English) VTT - Technical Research Cen- - Yearly Project Day conference and frequent theme events tre of Finland - Project management certifi cation http://www.pry.fi /index_eng.htm Acknowledgement to the IPMA WC 2009 conference. Several papers Editorial Board: of this issue have been picked up from the Scientifi c Research Paper Kalle Kähkönen (Editor in chief) track of the IPMA WC 2009 conference. The original papers have then Aki Latvanne been updated and or otherwise changed by the authors to meet the needs of Project Perspectives. ISSN 1455-4178 A model of success factors for Global Project Management This study explores the project management literature and produces a novel model of success fac- tors for global project management. Most academic papers provide partial recommendations on how to increase the success of global projects. However, to be effective, these suggestions should be applied in a holistic manner. This is a fundamental characteristic of the model presented in this article. The model is also modular, allowing an independent implementation of success factors, and scalable, able to accommodate newly discovered factors to be tested by future exploratory research studies. A global project management framework (GPMF), previously defi ned and published by the authors, is presented and compared to other studies carried out on the management of global projects. The success factors presented by these papers are used to test the validity and completeness of the GPMF as well as how this can be improved. This results in three new success factor categories and one knowledge area (global risk factors). A model is then created by adding (i) the concept of inputs-process-outputs to the framework as well as (ii) the main challenges of global projects, (iii) the success factors for their management aligned with existing bodies of knowledge and (iv) the benefi ts achieved from successful global project management. This systemic view allows the model to be used in future studies with potential research opportunities identifi ed throughout the paper. Jean Binder Intoduction Virtual projects (also called ‘distributed’ projects) Heriot-Watt University The main objective of this paper is to perform a involve team members in various locations (Ghosh structured analysis of existing academic studies and Varghese, 2004; Guss, 1998). As defi ned by Paul D. Gardiner on the success of global projects. Questions such the GPMF, global projects are a subset of virtual The British University in as ‘How well have previous studies covered dif- projects in which team members and stakeholders Dubai ferent geographies and methodologies over the are spread across countries from various cultures, years?’ and ‘Is it possible to have a consolidated speaking different native languages, working in James M. Ritchie view of all success factors for global projects?’ different time zones and belonging to different Heriot-Watt University will be addressed. The fi ndings of the paper are organizations. This defi nition forms the basis of the presented as a holistic, modular and scalable model fi ve GPMF dimensions (Binder et al, 2009), which of global project success factors which can be used determine the main challenges faced by global to help improve the effi ciency and effectiveness project managers and stakeholders: geographical of managing such projects. The steps involved in distance, multicultural collaboration, multilingual achieving the above objective and discussed here communication, asynchronous interactions and are: (i) defi ning the challenges and consequences cross-organizational relationships. Other studies of this emerging project management paradigm; refer to international (Aleshin, 2001), multicul- (ii) assessing success factors from the literature in tural (Mäkilouko, 2004), intercultural (Loosemore the light of an existing framework (Binder, 2007); and Muslmani, 1999) and cross-cultural projects (iii) classifying these factors according to the (Pheng and Leong, 2000). In previous studies, each methodological and geographical distribution of author uses a different combination of the fi ve the studies; and (iv) creating an original model of GPMF dimensions. success factors for global project management. The literature provides many examples on how these fi ve dimensions can be used to harvest Literature Review benefi ts from global projects. Geographical disper- This study builds on previous conclusions from sion allows reduced costs and access to the best the authors (Binder, 2007; Binder, 2009; Binder workers independently of their location (Binder, et al, 2009) about the characteristics and success 2007, p.11; Haywood, 1998, p.6; Rad and Levin, factors for global projects: The Global Project 2003, pp.3-5; Mayer, 1998, p.6). A multicultural Management Framework (GPMF). team increases the levels of fl exibility and innova- In this paper, the term ‘success factors’ refers tion (Binder, 2007, p.11) by bringing a variety of This is an updated version to the areas of knowledge that increase the perspectives to the project (Dubé and Paré, 2004). of a paper originally likelihood of success during the management of Team members that speak local languages have a published in the “IPMA global
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