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Are You Ready to Manage the Dragon Project? Procurement Market Entry Export Distribution 北京,上海,广州,深圳,重庆,杭州,南京 Felicia Chang Global Wave Today Project Management Symposium April 28 th , 2010.
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Are You Ready to Manage the Dragon Project? Procurement Market Entry Export Distribution 北京,上海,广州,深圳,重庆,杭州,南京 Felicia Chang Global Wave Today Project Management Symposium April 28th , 2010
“I suggest they learn everything they can about China because it will permeate every aspect of business in their lifetimes.” — Jack Welch
From Great Wall to World Expo Project management in China is evolving Ancient Project management in China • Great Wall • Great Canal • Forbidden City • Modern tools, techniques and methodologies • Critical Path Method (CPM) • Program Evaluation and Review Techniques (PERT) • Graphical Evaluation and Review Techniques (GERT) • First application of modern • project management • Defense • Aerospace and science • Construction Great Wall World Expo
Project Managers Need to Think Globally Adapt to the special nature of global project management Keep the following in mind: • There are opportunities for Project Managers who know • their way around the world • International project management requires highly • developed skills outside of regular project management • Project management is more of art in China • Don’t expect to follow the principles and rules of managing • projects in the United States
Project Managers Need to Think Globally You are operating on an international landscape • Two most important attributes for international Project Managers: • Cultural sensitivity • Intellectual curiosity about other people and nations
China is on the Other Side of the World Distances can complicate a global venture • Physical distances • Geographical • Time zones • Psychological distances • Cultural • Emotional • Language
China is on the Other Side of the World Learn from the experiences of other PMs • Key experiences among project managers: • Delays • Cost overruns • No improvement in quality • Lack of resources to perform project tasks • A simple 3-stage delivery process: • Preparation • Execution • Close-up
What is Your Project ? Two most common projects in China Procurement Sell products from China to U.S. market MarketEntry Sell products from U.S. to China market • Each type of project presents different challenges and risks • What is the best way to manage a project?
Managing a Procurement Project in China Plan well, evaluate your options and choose wisely • Key steps: • Identify what must be procured • Establish a timeline for purchase • Identify potential suppliers and service providers • Obtain quotes or bids • Choose a supplier and/or service provider • Manage the relationship with the supplier and/or service provider • Close-out contract
Managing a Procurement Project in China Critical elements • Developing processes that are rigorous yet • still flexible • Building a team experienced in China projects • and familiar with the culture • Managing milestone deadlines within budget and • managing expectations are key challenges • Using collaborative tools and techniques
Managing a Procurement Project in China Manage processes and expectations intelligently • Poorly managed projects are often completed over budget • and with significant delays. • Managing the key stakeholders is a critical key to success • in China. • Western and Chinese stakeholders have different needs • and expectations • Manage your expectations and unexpected risk
Creating and Managing a Market Entry Project in China Do some serious business planning • Identify your market opportunity and target customer • Identify the best sales channel to bring products/service • to China market • Set up your office and logistics • Identify and manage your distributor • Create and manage your Internet marketing project • Manage your relationship with Chinese consumers • and companies
Market Entry Road Map Chinese Consumer/Company Distribution/Sale Negotiation Recruiting Training Marketing ESTABLISH “GUAN XI” Engage Local Resource & Building Partnership Online Marketing Traditional Marketing Consulting Law/Tax Logistics Company Setup Not plan to set up office Site Selection Travel Set up office Market Entry Analysis/Strategy Target Customers Market Overview Competition SWOT Your Company
‘World Manufacturer’ is Becoming a ‘World Consumer Market’ Take advantage of the transformation Transform World Manufacturers • IPO • M&A • Private entrepreneurship • Outbound tourism • Outbound investment • 3-6 tier city & rural area growth World Consumer Market
Key China Sectors for U.S. Exporters to Target Focus on growth markets • Education • Health & Medical • Environmental Protection • American Lifestyle • Products • Luxury Market • Entertainment • Technology • Tourism
China Market is Complex and Fragmented Broad geographical territory
Project Management is About Managing Culture Know how people think and make decisions • The importance of relationship/save face • Pragmatic • Decision making • Deadlines • Value maturity • Materialism • Dress/act formally • Dining and business * Culture shapes way people think, how they look at the world, the decisions they make and the things they do.
Creating and Managing a Market Entry Project in China Consider key stakeholders and Chinese culture • Key stakeholder management is critical to success • Customers • Suppliers • Distributors • Service providers • Government officials and approvals • Managing a market entry project in China is • more of an art than a science
The China Market is Lucrative and Rewards are Tremendous • BUT… • It takes special planning and commitment • Respect differences • Plan well • Make a long-term commitment • Form the right team • Factor in extra time build in your project’s life cycle • Actively communicate • Set realistic expectations
The Golden Rules of China By Robert Ma of McDonald’s of China • Everything is possible • Nothing is easy • Western business logic does not apply • It is a fun project if there is no deadline • You must persist — things will come your way eventually • Patience is the essence of success • There are no secrets in China • “You Don’t Know China” means they disagree • “New regulation” means they found a new way to not do something • “Internal Regulation” means they are mad at you • “Basically, No Problem” Means BIG PROBLEM • When you are optimistic, see Rule #2 • When you are discouraged, see Rule #1
Why is Global Wave Today different? • China contacts • Market knowledge • Lead the process • Strong cultural and language knowledge • Deep global experience We bring unique insights... We transform China’s complexity and ambiguity into clarity
For More information CONTACT : Felicia Chang Global Wave Today (248)918-3863 fchang@globalwavetoday.com www.globalwavetoday.com