Sunday, July 12, 2009

Crisis Management vs. Project Management Part 2

PM best practices demand that any projects should have well defined mission and objectives. In fact during project initiation stage the main task is to clarify and lay out clearly what the project wants to achieve in the end. For companies in the commercial sector, the objectives are usually tied to financial performance, customer satisfaction or company reputation. An example is a bank revamping its customer service center to improve customer experience, which in turn leads to higher customer satisfaction and hopefully more business. So revamping customer service center is a well-defined objective, and the mission is better customer satisfaction.

For public or non-profit organizations, a project’s mission is usually related to some social needs. For example a social enterprise organization in Hong Kong launches a project to help under-privileged youth establish their business that is self-sustainable. This is the project’s mission. The objective of the project may be to launch a barber shop or a car maintenance service. Regardless of what it is, it has to be defined clearly in the beginning.

To handle a crisis, however, the key objectives may not be always well defined, though its mission is clear. Take the recent H1N1 pandemic as an example. The mission is quite simple – To minimize its impact to public health. The objectives and their implied course of action may change from time to time. In Hong Kong, for instance, the original objective was to prevent H1N1 from coming into the city. With this objective came those high-handed strategies like locking up a hotel for 7 days, or mandatory isolation for patients who were tested positive for the flu. Later when signs showed that the flu was spreading domestically, the objective shifted to ensuring sufficient clinical facilities for treating patients, and preventing massive outbreak among the most vulnerable groups such as young students. This demonstrates the elusive nature of a crisis. A crisis is simply too complicated for any crisis team to define clear objectives in the very beginning.

The next major differences between managing a project and a crisis is the tradeoffs among key constraints, namely, scope, schedule, cost, risk, resources and quality. For projects, best practices dictate that a balance should be achieved among them. It may depend on project stakeholders but few would tell a project manager “you have to meet the original schedule at all cost.” Some projects may favour on-time delivery, some on the exact features and functions to be delivered, and some on controlling cost budget. But the job of a project manager is really to balance these constraints so that the objectives of the project can be met, to the satisfaction of customers and stakeholders.

On the other hand, the key mission of tackling a crisis has to be accomplished regardless of costs or resources involved. Think about how the Obama government dealt with the bank crisis last year, the Hong Kong government currently handles H1N1, you begin the understand what we mean here. A crisis simply has to be resolved within a particular time frame, usually at the expenses of cost, resources and risk.

To be continued...

Copyright © 2009 Knowledge Century Limited.

Sunday, July 5, 2009

Crisis Management vs. Project Management

Due to my recent involvement with the medical community in Hong Kong, I had the chance to speak to clinical and nursing staff of several hospitals. One frequent question raised during those occasions is whether project management skills can be applied to crisis situation, such as that they are facing right now in the form of H1N1.

My short answer is no. It is true crisis management is closer to project management than to operation management, and some attributes of a good project manager are directly applicable to the situation of a crisis. However there are some characteristics of a crisis that are substantially different from those of a project.

Let’s look at the following table:

Crisis

Project

Operation

Unique mission but key objectives may change

Unique and well defined mission and objectives

Well defined objectives that are slow changing, if at all

Accomplish key objectives at all costs

Trade-off among scope, cost, time, quality & risk

Cost is usually the no. 1 objective

Dynamic team structure and resources

Heterogeneous & well defined team structure

Homogeneous and steady team

No definite end date – sometimes fluid schedule

Definite start and end dates – well defined time schedule

Ongoing with no specific end date


A lot have been said about the differences between project and operation so we are not going to repeat here. Let’s just focus on crisis management and project management.

To be continued...

Copyright © 2009 Knowledge Century Limited.



Thursday, March 26, 2009

PMI Asia Pacific Congress 2009 in Kuala Lumpur

I attended the PMI Asia Pacific Congress in Kuala Lumpur in early Feb. It’s almost a week-long event consisting of series of meetings and seminars. The first two days were devoted to PMI’s Leadership Institute’s Meeting which allowed volunteer leaders to meet and discuss chapter and component business. As a regional component mentor of PMI, I found the meetings informational. They also presented a great chance to connect with volunteer leaders from other part of Asia.

The main Congress ran from 9th to 11th of Feb. As usual, there were many parallel sessions led by project management practitioners or consultants. Among all the sessions I’ve attended, the following three are the most interesting:


1. ‘How to Identify, Measure and Manage Risk Throughout the Life Cycle of the Project”. The speaker, Torsten Koerting, is an experienced project managers and an excellent speaker too. In this three-hour double session, he used a lot of real life practices and templates to illustrate a risk methodology throughout a project life cycle. His demonstration of report samples and scenario based on a corporate project made it credible. One of the best sessions in the Congress. Interested readers may take a look at the presentation slides at: http://www.torstenkoerting.com.


2. “A Comparison between Three Leading Program Management Standards”. Michel S Thiry is a leading expert in program management. His analysis of the three standards – one from PMI which is more US oriented, one from the OGC of the UK government, and one from Japan, resulted in an enjoyable read both from the perspective of process and … culture. Michel’s style is somewhere between an academic and a practitioner. His work is stringent yet not boring. Well done, Michel.

3. “In the Pursuit of the Elusive: Showing PMO Value!” I never heard of the speaker Jack Duggal. Apparently he is an expert in the area of PMO and his session is very entertaining and informative. I may be slightly biased since both of us are doomsayers of those PMO that don’t show any tangible values. In his unique way he managed to show us a framework for quantifying the value of PMO.

Over the years and after so many conferences and seminars, I’ve learnt to be content with 2 or 3 great ideas. To be honest, most of these education or experience sharing sessions are too banal for a veteran like me, and all I am looking for is just a few brilliant insights. Judging by this standard the PMI Asia Pacific Congress is worth my time and money. And I’ve made many new friends too. Look forward to seeing you in one of these events.

Copyright © 2009 Knowledge Century Limited.

Monday, February 2, 2009

Case Studies: Cultural Diversity When Delivering Projects in Asia (2 of 2)

Let's conclude this series by sharing another project case study which encountered a major problem in China. The problem was eventually resolved by leveraging the team's strong knowledge in local culture.

Case 2: A US Company Procuring Telecommunication Bandwidth in China

A US Telecom was building a regional VPN network for an international client in the late nineties. The project was managed by a US and a Hong Kong project manager, with the support of local teams all across Asia. The network required local bandwidth in several Chinese cities. The international portion of the network was ready. The local project team went through normal application process and was told that the circuits would be ready in three months. One month later, bad news broke out. One of the local telecoms told the project team that due to demand upsurge, new cables needed to be installed requiring six more months of work. Circuits would only be available by then.

Analysis

The project team immediately assessed the situation. On the one hand they worked on a backup plan based on a redesign of the network, hence bypassing that Chinese city. On the other hand they tried to understand what indeed happened. The first question that came to the mind of the US and Hong Kong project manager: Was the local telecom trying to ask for something “funny”? However, the local Chinese team dismissed this possibility, and suggested that there might really be a bandwidth demand problem.

Solution

They then tried to work out a scheme to get the Chinese telecom to re-prioritize their request. They were aware of the face culture in China, and could not afford making the Chinese telecom people lose face, so a formal escalation was ruled out. As a US Telecom they were not an ingroup member, so could not get favor based on relationship though they did enjoy an excellent relationship with them. Since both the US Telecom and the international client were well known in China, they decided to play along that line. They invited senior managers from both companies to come to that Chinese city all the way from the US, and set up a special meeting with the local telecom. In the meeting, they emphasized the importance of this project to their business and to this Chinese city, and pleaded the local telecom to support them. After the meeting they went through the normal ritual, i.e. having dinner and Karaoke. Miracle did happen. Two weeks later, they were informed that the circuit would be available according to the original schedule.

Conclusion

Cultural diversity is an important factor to consider while delivering projects in Asia. When properly addressed, a project manager will be able to motivate the project team and avoid unnecessary conflicts. In general, a project manager in Asia should pay special attention to common traits such as face saving, avoidance of direct conflicts, indirectness of expression, and predominance of relationship. Subtleties like ingroup/outgroup, masculinity, power distance, and negotiation styles should also be observed.

References

Blake, T., Walker D., and Walker T. (1995). Doing Business Internationally: The Guide to Cross-Cultural Success. McGraw-Hill Professional Book Group.

Brahm J. Laurence (2003). When Yes Means No! – How to Negotiate a Deal in China. Tuttle Publishing.

Cauquelin J., Mayer-König B., & Lim, P (1998). Understanding Asian Values. In J. Cauquelin, P. Lim and B. Mayer-König (Eds), Asian Values: An Encounter with Diversity (pp. 1-19). Curson Press.

Ferraro, G. (1997). The Cultural Dimension of International Business. Prentice Hall.

Hofstede, G. (1980). Culture’s consequences. Beverly Hills, CA: Sage.

Hofstede, G. (1991). Cultures and organizations: Software of the mind. Loddon, Norfolk: McGraw-Hill Book Company (UK) Limited.

Peng Shiyong (2003). Culture and Conflict Management in Foreign-invested Enterprises in China – An Intercultural Communication Perspective, Peter Lang AG



Copyright © 2009 Knowledge Century Limited.

Tuesday, January 20, 2009

Case Studies: Cultural Diversity When Delivering Projects in Asia (1 of 2)

KUNG HEI FAT CHOY! GONG XI FA CAI! The Chinese New Year is coming this week. Let me wish all of the readers a successful Year of the Ox!

Let's continue our discussion about cultural diversity in Asia using two cases of project delivery in East Asia. Both encountered issues originating from diverse cultures and business practices.

Case 1: A Hong Kong Company Delivering an Interior-Design Project in Korea

A Hong Kong-based interior design company was awarded a contract to renovate a building in Korea in the early 2000. Their client was a European embassy. This embassy did try to manage this project themselves, and appointed a project manager out of their home country. After a year they hardly got the project off the ground, and they came to this Hong Kong Company which had been their vendor in Asia for a long time.

The Hong Kong Company helped the embassy prepare a RFP, and chose a local Korean contractor as their prime through a proper tendering process. They were aware that there might be collusion problem among Korean bidders, but decided there was not much they could do about it. They hired a local Korean site supervisor on contract basis to supervise the project and the performance of the prime contractor.

After the project was half way complete, problems started to surface. There were instances that subcontractors refused to ship their deliverables because they had not been paid by the prime contractor, even though the Hong Kong Company had not failed to pay the prime according to contract. They also had some quality problem with the prime contractor. The local site supervisor was not effective, and seemed to be on the side of the prime contractor hiding problems from the Hong Kong Company. The project could not possibly meet its original schedule.

Analysis

This is an illustration of several cultural concepts we discussed earlier. Local Koreans belonged to an ingroup of the same nationality. A foreign company, even from Hong Kong which is part of East Asia, was seen as an outsider. When dispute came up, it was uncommon but not impossible that local parties colluded to protect their ingroup members. The local business practices were also an issue. Only locals who were familiar with the local environment could possibly minimize the negative impact from these practices.

Solution

They chose a project manager in Hong Kong and sent her to Korea on site for two months. She acted as a communicator between the clients and the prime contractor. She also monitored the performance of the contractor on behalf of her company. Performance started to improve and the project was finally completed to the satisfaction of the client, albeit late by around two months.

To be continued...

Copyright © 2009 Knowledge Century Limited.

Wednesday, December 31, 2008

Project Issues in Asia (3 of 3)

Negotiation

East Asians are more tolerant of ambiguity; sometimes even prefer to leave an issue unresolved in negotiations. They are also tough bargainers. Frontline negotiations are characterized by:

(1) it is usually a long process;

(2) it takes patience and skills to reconcile two languages into a contract;

(3) the concern about face. As East Asians are concerned about face, the principle-based negotiation strategy trying to achieve win-win for both parties may not always work, as face introduces an emotional factor and irrationality into the negotiation.

Negotiation in East Asia is not just limited to frontline formal settings. Relationship buildup through informal sessions such as karaoke, golf and dinner is of equal importance to the outcome of negotiations. Offline lobbying sometimes can get a negotiation out of an impasse.

Other Potential Issues

Payment Part of business culture in certain East Asian countries is to postpone payment to vendors. In Japan and Korea, there is no problem with payment. When a payment is due, it will be paid. In the Greater China region, however, this is a major headache for project managers. After a project has been completed, it may take a long time to receive all the due payments. A project manager may still need to work with the customer on payment issue even though the project has been officially closed.

Etiquette Although culture has many layers, the outermost layer, etiquette, can create a good or bad first impression. One has to carefully observe all etiquette on her first visit to a new city or country, to avoid creating a poor impression among the local stakeholders. For example, a Hong Kong project manager visiting Japan would try not to speak too loudly in public location such as restaurants or trains, and has to avoid using mobile phone in those places. On the other hand, a Japanese or Korean manager visiting Singapore need to be aware that it is a much less smoker-friendly country than their home country.

To be continued...

Copyright © 2008 Knowledge Century Limited.

Tuesday, December 23, 2008

Project Issues in Asia (2 of 3)

Team Motivation

A project manager needs to deal with the issues of language and open communication while managing people in East Asia.

Language

Western and Asian project managers alike face the same problem of communicating in local language. Asia has more than 10 major languages, such as Mandarin Chinese (Putonghua), Cantonese Chinese, Japanese, Korean, Malay, Thai, and Vietnamese. There are also countless local dialects. Difficulty in communication with project team members or the customers in local language can impact the outcome of a project. For most business or IT projects, English can be used for team or customer communication though most Asians only possess limited English skills. When using English in Asia, it should be noted that:

• Most Asians’ reading and writing skills are much better than their listening and speaking skills;
• People from different countries have strong accents of their own, and can be a hindrance;
• Even people speak in English, the usage of words and expressions may carry the culture and patterns of their first languages.

Open Communication

In a project setting, open communication among stakeholders is important to the project’s success. The more candid are communication between all parties, the earlier problems can be identified and resolved, and a higher trust level and morale among all parties. However, this is not easily achievable in East Asia, particularly for projects that involve many parties. Sometimes the biggest challenge is to cultivate an open atmosphere within the project team. East Asians are generally shy and concerned about face, so they usually remain quiet in meetings. When they do speak, they sound humble and hesitant. If they have different opinions to their seniors, they do not speak out directly. Instead they only voice out their concerns in a very mild way, or simply keep to themselves. It’s quite common though they would speak out their concerns and disagreements in the most direct way during informal discussion with their colleagues, and complain about their managers not listening.

The only way to cultivate a candid and open communication environment is to build trust within the team, specifically between team members and the project manager. This requires the project manager to participate in team activities more frequently, adapt to local culture and customs, and encourage different opinions during meetings.

Motivators

To motivate a team in East Asia, the project manager needs to show a lot of respect to the local people, try to become a part of the ingroup, and cultivate an environment of trust and open communication. In general, East Asians are concerned about job security and monetary reward. They are willing to work long hours, and like to take up responsibility. Education and training can be a strong motivating factor for most people especially among younger members of the team.

To be continued...

Copyright © 2008 Knowledge Century Limited.