Chapter End Case: Two Continents – One World. Page 334
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Note: This case also touches on monitoring and controlling issues (Chapter 7).
Questions
- What type of project learning method does the GPPS constitute?
- Is the knowledge management method handled well? Give the reasons for your answer.
- What barriers needed to be overcome? General question referring back to Chapter 1:
- What do you consider the key success factors (in light of the success criteria discussed in section 1.9) for implementing this special international project?
IMPLEMENTING AND
CONTROLLING INTERNATIONAL
PROJECTS
Chapter
7
THE CHALLENGE OF IMPLEMENTING AND CONTROLLING AN
INTERNATIONAL PROJECT
The efficiency and efficacy of the processes and activities in the
implementation phase highly depend on the quality of the output of
the initiation and planning phases.
The main activities in the implementation phase follow the Plan-Do-
Check-Act cycle:
Implement activities based on the project master plan.
Check the status of the project at regular intervals.
Compare the results of these status checks with the plan.
Act in case of deviances between the plan and the actual status
by implementing counter measures.
2
MONITORING AND CONTROLLING
Project monitoring refers to keeping track or checking a situation
for a special purpose.
Project controlling entails an element of influence and exertion of
power to rectify undesired situations:
Direct control (subject of this chapter): Fact-based controlling of
resources with tools and techniques.
Indirect control (subject of other chapters) : Person-oriented
controlling, using stakeholder management, leadership, motivation,
negotiation, conflict management.
The detailed inputs, and outputs of these activities will be explained
on the following slide.
3
Required inputs:
Project Proposal and Project Master Plan , i.e.
Required tools and
techniques:
1. Change orders
2. Change documentation supported by IT
3. Follow up of issue log in status
meetings
1
3
2
4
PLAN
DOCHECK
ACT
The
Monitoring
Cycle
1. Inadequate allowance for time in
planning phase
2. Inadequate specifications
3. Inadequate knowledge about customer’s
needs
4. Lack of discipline
5
. Improvements due to technological
progress
6
. Unforeseeable circumstances
1. Stakeholder Matrix
2. Cultural gap analysis
3. Diversity-Complexity Assessment
4. Project Scope Statement
5. Enhanced Risk Register
6. Resource loaded Gantt charts
7. Cumulative spread sheets
8
. Quality plan incl. specs
9
. Project structure
10. Contracts
Main output:
Data in form of nominal scale, interval scale, or descriptions
Required activities:
• Collection of hard data, mainly supported by IT
• Collection of soft data considering impact of cultural
diversity
Main reasons for variances:
1. Data in various forms
2. Observations
Required tools and
techniques:
1. Red/Amble/Green
2. Milestone Analysis
3. Critical Path
4. Earned Value Analysis
5. Balanced Score Card
Required inputs:
Required inputs:
1. Analysis of deviations or variances
2. Analysis of their root causes
Main output:
• Deviation analysis regarding time, cost, quality, scope,
satisfaction level
• Issue log
Required activities:
• Decision on countermeasures
• Claim management
• Change management
4
CULTURAL IMPACT ON PROJECT IMPLEMENTATION (1)
The application of the cultural gap analysis helps the project
manager selecting adequate controlling and monitoring techniques.
It also raises his or her awareness regarding potential behavioural
differences within the team in the implementation phase.
An important difference to keep in mind:
In task-oriented cultures, remote or virtual controlling usually works.
In relationship-oriented cultures, personal controlling and support is
difficult to replace by remote controlling techniques.
The following two slides give a systematic overview of potential
behavioural differences among project members in the execution
phase.
5
The higher the inclination to avoid risk, the more
likely it is that important decisions due to a changing
environment get delayed due to the fact that more
details are needed for decision making. If decisions
are avoided, plans cannot be modified, and
monitoring gets meaningless.
Embracing
risk
Avoiding risk
Data collection and reporting: persons from
individualistic cultures tend to feel more comfortable
responding to non-anonymous interviews or
questionnaires for data collection. They also tend to
feel more comfortable with measurement of their
personal performance compared to team members
from collectivistic cultures.
Individual Group
Individuals from rather circumstantial cultures might
feel that it does not make sense to monitor and
revise ‘old’ plans. They might feel that it is sufficient
to adapt to changes when they come, without
documenting deviations from the original plan.
Universal
Circumstan-
tial
CULTURAL IMPACT ON PROJECT IMPLEMENTATION (2)
6
Project managers from achievement-oriented
cultures may tend to invest some time in monitoring
on a regular basis in order to counteract quickly.
More status-oriented project managers might spend
their time on presumably more rewarding activities
like politics or building networks.
Achievement
Standing /
status
Prioritization of tasks under time constraints might be
difficult for individuals from synchronic cultures.
Sequential Synchronic
Individuals from more pragmatic-orientated cultures
may prefer quick action and countermeasures over
thorough analysis of the cause of deviations from the
plan.
Theoretical Pragmatic
Task Relationship
Individuals from relationship-oriented cultures could
have difficulties in reporting issues or anything bad
in order not to ruin the relationship to the
person
they are reporting to.
They may also need more direct physical follow-up
in terms of encouragement rather than virtual status
meetings.
CULTURAL IMPACT ON PROJECT IMPLEMENTATION (3)
7
MONITORING TOOLS AND TECHNIQUES
Project monitoring:
Data Collection:
Frequency count or nominal scale data.
Raw numbers or interval scale data.
Verbal characterization.
Documentation.
Reporting project information:
Routine reports.
Special analysis reports.
Exception reports.
Pre-requisite:
Existence of relevant performance indicators, called Key Performance Indicators
(KPI).
Areas to be monitored:
‘Hard’ facts: Time, cost, measurable quality.
‘Soft’ things: Goal commitment of project team and initial clarity of goals,
establishment of clear communication, adequate project team capabilities, project
culture.
8
PARTICULARITIES OF MONITORING INTERNATIONAL PROJECTS
Tends to be more complex than monitoring standard projects.
Context plays a big role.
Reports need to be customized to expectation of recipients that may
be culturally impacted.
Attention needs to be paid to developments within the project, but
also outside of the project.
The monitoring matrix as depicted in the following slides helps with
this task.
9
1
0
Internal
Completion
1. Resources: time, cost
2. Productivity of human resources
(due to cultural diversity)
3. Quality
4. Scope
5. Delays of input from other projects
6. Support level from HQ/top
management
7. Efficiency and consistency of
business processes across locations
1. Executive management
2. Steering committee
3. Line managers
4. Heads of subsidiaries
5. Project team members
6. Users within
organization
1. Customer
2. Suppliers
3. Subcontractors
4. Consultants
5. (International) users outside of
organization
1. Economic situation of the countries
the project operates in
2. Government regulations and
approvals (changes, delays)
3. Natural disasters or untypical
weather change
4. Technological problems like power
outages
More details see Chapter 4
Satisfaction
External
Monitor matrix for international projects
CONTROLLING TECHNIQUES (1)
Low tech controlling tools:
Traffic light system:
Rather a visualization method than a generic control tool. Its effectiveness depends on underlying criteria (see example on next slide).
Due to its self-explanatory colour coding very suitable for international projects.
Milestone analysis:
Review meetings are conducted around pre-defined milestones.
Important to have clear criteria to pass a milestone.
Approach is easy to use and easy to learn.
Can be combined with team-building events.
11
Criteria for project status
light setting
Profitability
R&D costs
Milestone review
Specific project risks
Project resources
Red, if any of the criteria
is red.
Total project traffic
light status
Yellow, if any of the
criteria is yellow.
Green, if all criteria is
green.
EXAMPLE OF TRAFFIC LIGHT TOOL
12
CONTROLLING TECHNIQUES (2)
More complicated controlling tools:
Earned Value Analysis (EVA):
Shows the relationship between variances in cost, schedule and project performance.
Suitable for controlling long-lasting, complex, international projects.
Earned value is the value expressed in a currency of the work accomplished at a certain point in time based upon the planned
or budgeted value for the work.
Automation of control by the use of expert systems:
Expert systems are IT based.
Input relies on traditional data collection methods.
Balanced Score Card (BSC):
Apart from financial control, more intangible performance areas like customer’s satisfaction, internal business processes, and
learning and growth need to be monitored.
13
Time
C
o
s
t
in
T
€
36
80
146
225
350
458
565
693
841
1.000
0
100
200
300
400
500
600
700
800
900
1.000
1.100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Planned cost in relation to
schedule
14
Example of EVA Calculation (1)
Time
C
o
s
t
in
T
€
36
80
146
225
350
458
565
693
841
1.000
36
80
160
240
390
503
610
748
900
1.059
0
100
200
300
400
500
600
700
800
900
1.000
1.100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Planned
Actual
15
Example of EVA Calculation (2)
0
100
200
300
400
500
600
Apr May Jun
AC = 503
Time
C
o
s
t
in
T
€
PC = 458
SVm
SV = 54
CV = -99
EV = 404
16
Example of EVA Calculation (3)
MANAGING PLANNED AND UNPLANNED CHANGE
Detect variations from the plan:
Identifying of issues through context scanning (e.g. with monitoring
matrix).
Entering the issue into a special forma called an issue log (see next
slide).
Allocating resources to solving the issue.
Following up the progress of implementing change to solve the issue
until completion.
Central version control:
Change requests of changes in progress need to be administered
by a central database.
Transparency and accessibility of change data is important.
Claim management is a special form of change management.
17
Issue Log
No. Date Description
Impact (in terms
of project
completion)
Suggested
solution
Responsible
person
Date of
comple-
tion
18
Example of issue log
INTRODUCTION TO
INTERNATIONAL PROJECT
MANAGEMENT
Chapter 1
Limited
Duration, Scope,
Financial Resources,
Human Resources
Unique
Objectives,
Context,
Organization
Risky
Uncertainty,
Complexity
Three main characteristics of a project.
2
What is a project?
An
organization
has only limited resources. Hence, the project operates
within constraints of resources and time. It is supposed to produce a result
that meets agreed quality standards.
WHAT IS PROJECT MANAGEMENT?
A project is typically managed in four phases:
1. Initiating
2. Planning
3
. Executing/Controlling
4. Completion
This is also called the ‘project management life cycle’.
3
1.
• Initiating
2.
• Planning
3.
• Executing/ Controlling
4.
• Completion
Initial state
(company internal idea, customer requirement)
Objective
(product, service, result)
P
R
O
J
E
C
T
Strategy, Project portfolio
Organization
4
Project management in the international
organization
WHO ARE THE MAIN PLAYERS WITH THE CONTEXT OF PROJECT
MANAGEMENT?
They are called ‘project stakeholders’.
In an international project, their set-up is more
complicated than in a standard project. Moreover, they
tend to have diverging and conflicting ideas about the
project.
The project manager needs to map all project
stakeholders and manage them carefully.
5
Project Management Team
Project Team Members
Contractors with PM
Subcontractors with PMs
A B C
1 2 3 1 2 31 2 3
Internal customer
Project Owner/
Project Sponsor
Project Manager of
Leading Contractor
Project Owner/
Project Sponsor
External customer/ Investor
Users Users
Project Manager
Require-
ments
Require-
ments
Results
Results
Require-
ments
Require-
ments
Results
Results
Require-
ments
Results
Require-
ments
Results
6
An overview of main project stakeholders
Main
purposes of
international
projects
Search for new
geographical presence or
new international
stakeholders
Increase of global market
share, market power,
global political power or
global effectiveness
Realization of efficiency
gains
Access to scarce and
unique resources
Reduction of risk
7
What are the main purposes of international
projects?
International projects reach beyond national boundaries, usually in terms of project
purpose or nationality of stakeholders. International projects can be global, involving
the entire world.
International
Project
Uniqueness
Risk
Complexity
Limited
Resources
Dynamics
Diversity
International
Project
8
What are the main characteristics of international projects?
Critical success
criteria for
international
project
managementGoal commitment of
project team and
initial clarity of goals
Establishment of
smooth
communications and
supporting
infrastructure
Adequate project
team capabilities
Consideration of
context
Right balance
between common
methodology and
flexibility
Supportive project
culture
9
What do you need to take into account to manage
successfully international projects?
