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.

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.

Project Issues in Asia (1 of 3)

More and more projects are being delivered in Asia, with a wide spectrum of project types including infrastructure, construction, IT, finance, product development and business process. Project managers share common cultural conflicts and issues when delivering projects in Asian countries irrespective of business sectors.

Authority

Most Asians, in particular East and Southeast Asians are still receptive to dominant, dictatorial bosses, and authoritative figures. They expect their project managers to be decisive, firm, and assertive. The power distance is high compared to Western countries. European or US managers, though not considered ingroup by locals, have the advantages of being associated with the image of the successful developed world. However, one should carefully observe the indirect ways people express their discontent, and try to achieve a balance between authoritative and participative management style.

Conflict and Resolution

Conflicts are best resolved through smoothing and compromise. East Asians tend to avoid confrontation and relationship is the key to resolving conflicting situation. As Lao-tsu (600 B.C.) said, “Whatever is fluid, soft, and yielding will overcome whatever is rigid and hard.” It is advisable to adopt a soft approach to handle disagreement. Project managers should also note the following cultural traits in Asia.

Process and Methodology

The concept of shade combined with a strong sense of pragmatism has made East Asians (excluding Japanese and Korean) rather poor followers of process and procedure. They use their own judgment when asked to abide to certain processes and have a tendency to bypass processes or take shortcuts. This behavior pattern also diminishes their willingness to adhere to rules and regulations. Pragmatism is very deep-rooted in Chinese culture. A good example is Mr. Deng Xiao Ping, the chief architect of modern Chinese economic development. He made the famous comment “Regardless of white cat or black cat, the one who can catch mice is a good cat”. The legendary proverb of Ba Xian (Eight immortals) crossing a river using their own individual methods also illustrates the Chinese thinking of expedience.

Project managers in the Greater China region should pay particular attention to their team’s performance especially if following global processes or best practices is critical to the success of a project. For outside parties like vendors or sub-contractors, close monitoring and control needs to be exerted. It’s advisable to organize some training for local team members so that they fully understand the benefits of adhering to company process and methodology.

On the other hand, a project manager needs to be aware of how to get things done outside the organization. Formal process or procedures may not work even though they are official. A project manager has to work closely with the local team to understand leeway and flexibility of local procedures and rules.

Ingroup/Outgroup

As discussed above, East Asians have low trust level with people considered outside of their ingroup. Project manager, even a local, is usually considered an outgroup member because of their seniority level. A foreign project manager will definitely be considered an outgroup member by both the project team and the customer due to her nationality and ethnicity.

An outgroup person will receive far less information than an ingroup person because of lower trust. Their ideas and behaviors will be viewed with skepticism and distrust, hence making their project management task much more difficult. Conflicts can easily come up with outgoup people.

To be continued...

Copyright © 2008 Knowledge Century Limited.

Common Cultural Traits in Asia (3 of 3)

The Art of Indirectness

Metaphors and allegories are part of Chinese culture. In the past government officials used metaphors and allegories to drive home a different opinion to the King, lest they would offend him by being too direct. This tradition is still practiced today and can be observed in everyday conversation in East Asian societies. Underlings seldom express direct feeling such as anger or discontent in front of their boss. In business meetings and negotiations people seldom give a direct answer, and use different ‘yes’ expressions to mean ‘no’.

Other notable values and traits commonly found in East Asia include:

Respect for age and seniority – Grey hairs and senior managers are seen as wiser than the younger members, regardless of their formal positions.

Importance of education – Learning and education is seen as the best way to climb up the social ladder. The highly educated are well respected in the society.

Masculinity – Hofstede (1991) said “Masculity pertains to societies in which social gender roles are clearly distinct (i.e. men are supposed to be assertive, tough and focused on material success, whereas women are supposed to be more modest, tender and concerned with the quality of life).” This fits in quite nicely with the dominant trait in East Asian countries like Japan, Korea, Taiwan, Hong Kong, and China. Although social status of women has improved significantly over the past five decades, men are still seen as the decision maker and bread winner.

Financial prudence – East Asians tend to save a much higher proportion of their income for future use, and hence are more financially prudent when spending. This can be explained by a strong sense of insecurity. Owning more money is usually seen as a symbol of success. Job security and monetary reward can be powerful motivating tools.

Avoiding conflicts – Conflicts are usually seen as bad and should be avoided. Emphasis is put on maintaining a harmonious relationship among all people in the society.

Work ethics – Diligence is seen as a virtue and a justifiable price to pay for success. From their primary education to college, East Asians are educated to “give out their best”, meaning studying long hours for the best results they can get. In the workplace, workers are willing to work extremely long hours.

To be continued...

Copyright © 2008 Knowledge Century Limited.