TUESDAY 9 OCTOBER, 2007 Project Management - Setting the Standard

1. CS4.2.2 An Analysis of Cultural Differences Upon Project Team Performance for Global Projects Seung Jung Lee TUESDAY 9 OCTOBER, 2007 Project Management - Setting the Standard Australian Institute of Project Management National Conference 2007 Hobart Tasmania October 7 – 10, 2007

2. An analysis of cultural differences upon project team performance for global projects Seung Jung Lee Master of Project Management, University of South Australia Tony Ma Program Director, University of South Australia AIPM National Conference 2007

3. AGENDA • Background • Aims • Review on elements of cultural differences upon team performance • Cultural differences upon team performance – by survey • The impacts of cultural difference upon team performance • The ways to maximize the abilities of multicultural team members • Conclusion & suggestions AIPM National Conference 2007

4. Background • Increasing global projects due to opportunities and market penetration • Increasing uses of global joint ventures (e.g.. Partnering, Alliancing) to satisfy their project clients. • Increasing uses of technologies (e.g. Computers, wireless communication ) for management of global projects… • Challenges for project managers especially when different cultures are involved as a team AIPM National Conference 2007

5. AIMS • To examine the impacts of cultural difference upon global team performance. • To recommend how project managers can work effectively and positively for global projects. [Note: This paper is based on literature and a survey in the form of questionnaire. The participants are project managers and project team members who have global project experience in Korea, China & Europe. The industries covered include business joint venture, water resources corporation and student organization] AIPM National Conference 2007

6. Review on elements of cultural differences upon team performance • Multicultural project teams have their culture as a set of shared values and beliefs. • Values : Perceptions about the way things should be done. • Beliefs : Perceptions of how things are done in their countries. e.g. Unite States vs South Korea < Javidan et. al. (2001)> individualistic v collectivistic AIPM National Conference 2007

7. Review on elements of cultural differences upon team performance • Identified elements of cultural differences: Marquardt & Engel (1993) AIPM National Conference 2007

8. Culturaldifferences upon team performance– by survey • Global project team: A team of multicultural team members from different countries, each of which possesses a different culture. • They interact and collaborate through communication technologies • Due to cultural differences: conflicts become inevitable and they will have impacts upon project performance • Project managers & stakeholders might end up with project failure or having delays in meeting project objectives AIPM National Conference 2007

9. Survey result 2007: impacts of cultural differences upon team performance • Identified issues affecting team performance Based on 27 completed questionnaire AIPM National Conference 2007

10. The impacts of cultural differences upon team performance • The results indicated that team performance has been affected due to differences in: • Problem-solving technique • Decision-making process • Communication methods • Level of trusting each other The sources of conflicts are a consequence of different approaches due to differences in beliefs and ways of doing tasks. AIPM National Conference 2007

11. The impacts of cultural differences upon team performance • Problem-solving technique • Although there is no absolute ‘right way’ to problem solving, different approaches may create tension among team members • Ex. French members vs. United States members • French members: analyse entire problem and potential approaches • United Sates members: trial and error approaches <McDonough et. al. (1999)> AIPM National Conference 2007

12. The impacts of cultural differences upon team performance • Decision-making process • The preference for the way in which decisions were made in different countries. • E.g. Japanese culture vs. U.S. cultures AIPM National Conference 2007

13. The impacts of cultural differences upon team performance • Communication methods (Language difference) • Language as a powerful tool to exclude or include certain group members • Barriers for sharing information among project team members • E.g. English is the working language for communication • Language can be a source of frustration and anger: ‘I demand’ means ‘I am asking’ <Brett JM. (2001)> AIPM National Conference 2007

14. The impacts of cultural differences upon team performance • Level of trusting each other • Significantly affecting the team performance. • As one of the determinants used to achieve a better relationship between project participants. • Balanced and motivated by project manager. e.g. Chinese people put emphasis on Guanxi, which means “personal relationship” in life.Guanxi is composed of face and trust. AIPM National Conference 2007

15. The risk degree of cultural impacts Findings from the impacts of culture differences AIPM National Conference 2007

16. Findings from the multicultural project management • Effective ways to reduce the cultural impacts AIPM National Conference 2007

17. Strategic Multicultural Project Management Processes Suggestion for improvement AIPM National Conference 2007

18. Strategic Multicultural Project Management • Environment analysis • Project management with accurate forecasts related to internal and external environment in geographic areas where project teams are going to perform. • Gathering information & making the ways in which work is to be done in order to improve the effectiveness. • What are the different expectations of team members regarding the practices such as problem solving, decision-making, communication, and leadership? <Source: Brake. T (2005)> AIPM National Conference 2007

19. Strategic Multicultural Project Management • Strategic planning • Formulated with goals for multicultural team performances on time and within budget. • Communicating and sharing information with global teams. • Project manager to convey information to the appropriate individuals or groups at the right time. • Strategic planning tools (ex. Communication management matrix, Work Breakdown Structure, Gantt Chart). AIPM National Conference 2007

20. Strategic Multicultural Project Management • Performing • Highly dependent on trust. • Face to Face contact to develop trust • Formal contact & Informal contact • Knowing each other to higher efficiency & Easy to solve problems. • Performing tools (ex. E-mail, Telephone, Video-conference) AIPM National Conference 2007

21. Strategic Multicultural Project Management • Checking and Controlling • Someone in the group with monitoring meaningful participation. • Project manager to monitor and try to get the team to move ahead with the tasks. • Project manager to remind the group as a whole of its norms or take individuals aside and encourage them to participate. AIPM National Conference 2007

22. Conclusion • Cultural difference is common in team-building of global projects. • Different approaches in Problem-solving, Decision-making, Communication, and Level of trusting each other. • Strategic Multicultural Project Management: Environment Analysis, Strategic Planning, Performing, and Checking & Controlling. • Cross-cultural training organizations can help to shorten the learning curve by training to project managers during team building process AIPM National Conference 2007