Managing Projects and Competitive versus Cooperative Alliances - Assignment Example

Running Head: Managing project Managing project of the of the Managing project Organizations arenot satisfied any more with the profits gained in the US only they are all looking to cash-in in other markets. These companies are able to carry out their objectives by using project managers to manage tasks and goals necessary to accomplish these tasks. Conducting business on an international scale provides these companies with a number of challenges relating to the complexities of different international markets. Global and domestic project management are similar because in a project can not succeed if there no good binding between the team members. Another aspect of global or domestic management is ability of project manager to be able to monitor a project closely and control different dimensions such as, cost, quality and integration. These differences are sometime very different and sometimes very similar distinctions that can leave company leaders looking for contingency plans. Organization looking to get into globalization must take into consideration such differing factors as the language, expatriate, cultural, political, legal, economic, technological and many more that exist between the US and foreign countries. But only four of these items will be discussed in regards to globalization and the problems companies facing when venturing into foreign countries. The most common barrier organizations encounter going into foreign countries is language barriers. There are unspoken signals and gestures that are non verbal form of communication that that sometimes may be disregarded. Non verbal forms of communication include gestures, body language and semiotics, which refer to the underlying meaning of signs. Companies also encounter the issue of translation of document in English to various languages. For instance, the company I work for have subsidiaries in China, Japan, Taiwan and other parts of the world. On several occasion we have had problems with translations of our documents into various languages. Some of the common words we use in the English language when translated can be very offensive in other languages. The use of expatriate may potentially bring distinctive benefits and advantages to the project team but more careful attention need to be given to development work, more careful attention needs to be given to the team of what is expected of them. Expatriates face the difficult of local team members not wanting to share their knowledge or lend a helping hand to an outsider. Using expatriates can be costly because the organization would have to provide housing and transportation and other amenities for the duration of the project. Cultural differences can be sub-group into attitudes, beliefs and values. Employee attitudes differ from country to country and this affects the way consumers in foreign countries react to certain scenarios. For instance, people in some foreign countries beliefs that a man should be the head of a business unit but in the US we belief in placing the most qualified person in the position. In terms of attitude, some cultures do not allow lower level employees to speak during a business because the respect is supposed to go to the head of the department. Lower level employees are required to brief their boss on every aspect of the business before the meet and during the meeting they are not allowed to comment or contradict. To illustrate how cultural differences can affect an international country I will use the example of the company I for, we were so insensitive to the religious beliefs of our Muslim countries who we conduct business with that we use a bi-product made from pig intestine and at the end the drug product was reject by the Health Authorities of those countries. We had to find a substitute for the bi-product in order to keep the drug on the market. Other area of importance for companies to consider when entering into foreign markets is politics, which reflects the importance of the government and the legal system. Political risk could mean that the political aspect of the country may impact a company's profits negatively. Studies conducted on Economic Intelligence states that" war, social unrest, economic factors, politically motivated violence, international disputes and corruption are some of the factors that may be associated with political risk (Ortega 1994). This currently going on in Iraq, the unrest in Iraq is affecting all the foreign companies located in the company. In conclusion, Project manager has to concentrate on establishing a robust communication mechanism among team members. Competitive Vs Cooperative Alliances With the emergence of a 'global' economy comes the need for new and creative strategies for succeeding in the marketplace. It is increasingly difficult for any one firm to possess the resources necessary to be able to continually develop, test, and implement innovative products and services in order to dominate an industry. Therefore, leaders in today's business environment often must look outside their own company for ways to expand, grow, and thrive. (Neilsen, 2002) The old philosophy that dictated that business is a win-lose game has become somewhat outdated. In the 1980's a new business approach started to develop. This theory involved the revolutionary notion that under some circumstances cooperating with rather than competing with rivals offered a better chance of mutual profitability and expansion. This theory became known as coopetition. (Bernard, 2005). The underlying premise is that when businesses cooperate they can expand the market then compete to determine how to divide it up. In this way, everyone benefits; even the customer. Cooperation may be as simple as building purchasing coalitions that allow all parties to bargain for reduced prices for supplies or service because they are buying in bulk. It can also mean sharing risks, pooling knowledge, or setting industry standards. (unknown, 1998). Some of the benefits that might be gained are access to restricted markets, saving on economies of scale, speeding up development of new technologies, and overcoming uncertainty. This new approach to corporate dealings involves strategic partnerships between employers, employees, suppliers, customers, and even adversaries. In order to be successful, these relationships must be built upon shared outcomes and purpose, honest communication, and trust. While these components may not be easy to implement given the barriers of geography, culture, and business differences; the advantages in pooled knowledge, shared resources, and collective accountabilities can enhance the vitality of financial health for all parties...and bring the consumer more goods of better quality at a better price. Technology Enhancements According to Narayana Murthy, the cofounder and chairman of Infosys Technologies Ltd., the focus that will sustain Infosys into the future is on speed, imagination, execution excellence, and the ability to attract and retain the best talent (Gautam and Jayant, 2003). One of the greatest challenges involves becoming more proactive about defining problems rather than reactive in solving problems. Murthy sees the need to shape the design of technology as the biggest challenge facing his company (Gautam and Jayant, 2003). The next challenge is to become more multicultural in order to collaborate on a larger scale and integrate ideas from the preparation of a proposal to execution. Integrating leadership is another focus. Leadership skills need to be able to build relationships and to create integrated systems that overcome geographical challenges. Technology enhancements need to be able to support efficiency and yet not sacrifice relationships. Some of the latest technology allows for teams to work 24 hours a day non-stop due to team members being dispersed around the world in different time zones (Gray and Larson, 2005). Technology will need to be focused in the future on overcoming the barriers of distance and time. Technology needs to support planning tools and techniques that support creativity and innovation. Today, project management is successful with clearly defined projects, but not when the scope is broadly defined or the project is subject to changes in scope (Gray and Larson, 2005). Project management software is not new to the industry, but what will be new is developing the use of the software for improving and identifying best practices as well as portfolio management. Collaboration among teams will be required. Portfolio management includes the ability to organize and select projects within an organization (Gates, 2003). Important Trends In the present age is faced with increasing global competition, knowledge explosion, rapid innovation, shorter time to market, and shortened product life cycles. These trends have lead to the increasing scope of project management and the need for system integration. It has changed the need for greater discipline in project management. The focus of project management has changed from tactical to strategic. These trends lead to the need for more centralized project management (Gray and Larson, 2005). Multiple projects and limited resources indicate the need for an organizational culture that supports integration. Over all, there is an increasing need for integrated project management. The strategic plan of the organization and the organizational culture needs to be developed to support multi-project environment. Project management tools need to be developed side by side with interpersonal skills in order to manage successful projects to completion (Gray and Larson, 2005). Web-based management is an increasing trend and need as a result of outsourcing. Virtual teams are becoming more common and provide greater opportunity to tap into skilled resources from great distances. Web-based libraries of information create a data base of information that can be used for improving project management best practices (Gray and Larson, 2005). Risk management can be expected to receive more attention in the next decade. Greater attention will be given to identify, assesses, and respond with a developed methodology in order to manage project risks at the task level (Gray and Larson, 2005). The IT industry has attained some success by developing a standardized approach to project management practices, tools, and techniques. The trend for standardized practices has developed in response to the need for organizations to purposefully deliver projects successfully and consistently (Svetlana, 2006). Quality and efficiency seem to be a major focus for the future of project management. As we look ahead, there is a need for broader definition and understanding of success criteria. There will be a shift from time and cost objectives to scope and quality objectives. Management of a project will require understanding the tradeoffs between scope, quality, time and cost. The type and phase and life cycle stage will determine successful decision making rather than time and cost alone (Wideman, retrieved 11/29/06). Project Management and Information Technology Information technology is still in its early stage of growth and development. J.Walker (2003), founder of Princeline.com, says that our ability to collect, analyze, manage, and use information is just in its infancy. Information systems will make our time look as backwards as the first railroads now look in the history of transportation (Walker, 2003). Information Technology project management is continuously developing since the early stages of the technology. IT Projects depend mainly on the support of the stakeholders and users involved. J. Wateridge (1995) says that a possible criteria which could be used to measure the success of a IT project is the benefits to the many stakeholders involved with the project such as the users, customers or the project staff. Without the support of stakeholders, IT projects could run into problems that can result in the failure of the project. But with the support of stakeholders, problems that are discovered are dealt with and the project can continue to progress. According to Koontz (2003), Director of Information Management Issues at the U.S General Accounting Office, stakeholders can offer valuable and much-needed insight regarding existing work processes and information technology needs, and their stake and participation in the systems development initiative is essential for ensuring its acceptance and use. According to Van Yoder (2001), there are growing suspicion that corporations have grown too large that the stakeholders perspectives are not taken into account. Stakeholders are demanding often successfully that corporations focus on goals beyond the bottom line. Activist groups have made headlines recently by targeting individual corporations and groups that work for their interests, such as the World Trade Organization. They use sophisticated tactics, employ high-profile campaigns, and are united by a centralising principle: Corporations have too much power (Van Yoder, 2001). Recently, protesters descended on Kellogg Co. headquarters in Battle Creek, Mich., demonstrating against the presence of genetically modified organisms in the company's products. Kellogg executives also fielded complaints from parents about the presence of Toucan Sam, the Froot Loops mascot, in a line of children's books about counting (Van Yoder, 2001). Van Yoder (2001) adds that in increasing numbers consumers are willing to use their purchasing power to punish corporations with bad track records. A recent study by the Conference Board Inc. revealed that close to 50% of all consumers have refused to buy from companies they considered socially irresponsible. According to The Stanadish Group International (2001), the number one contributor to project success is user involvement. No surprisingly, the absence of user involvement is a major cause of project failure. Even when delivered on time and on budget, a project can fail if it does not meet users' needs. The Standish group surveyed IT executive managers for their opinions about why projects succeed. The three major reasons that a project will succeed are user involvement, executive management support, and a clear statement of requirements. There are other success criteria, but with these three elements in place, the chances of success are much greater. Without them, chance of failure increases dramatically. The survey participants were also asked about the factors that cause projects to be challenged. Opinions about why projects are impaired and ultimately cancelled ranked incomplete requirements and lack of user involvement at the top of the list. The comment most indicative of the chaos in project development came from Sid, a project manager at an insurance company. "The project was two years late and 3 years in development," he said. "We had 30 people on the project. We delivered an application the user didn't need. They had stopped selling the product over a year before" (The Standish Group International, 2001). IT Management Information Technology management is now focusing in the direction of project management. The IT industry is starting to realise the importance of designing a firm management plan for the IT projects. Gopal (1999) who was an expert civil engineer and now an IT project management consultant believes that the push for project management in the IT industry will be successful if IT professionals develop a clear understanding of the principles and practices of disciplined project management for IT projects (Gopal, 1999). The bulk of the project-management body of knowledge has been developed by the engineering profession -- especially civil engineers. Many IT organizations are trying to replicate the principles, practices and tools developed by engineers to manage IT (and business) projects (Gopal, 1999). This method can create a problem because those who are involved are from completely different professions and there are distinct differences between the two professions. IT projects are much more difficult to manage. For a project-management investment to pay off, the engineering project management body of knowledge needs to be adapted and expanded to the specific characteristics of IT projects (Gopal, 1999). During the management and implementation of an IT project many problems appear that can affect the stakeholders. The following list of IT project problems (or differences between IT and typical engineering projects) shows why it is important for the success of IT projects to involve the stakeholders so that all interests can be agreed upon and accepted. Ignoring the stakeholders can have a negative impact on the project. 1. Clearly defined end state. The end state of a typical engineering project is clearly defined through well-documented artists' renderings, architectural models and engineering drawings before any construction work begins. In the case of IT projects, the converse is true. The end state of IT projects is often not clearly defined, or known, even after the project is completed (Gopal, 1999) 2. Linear project phases. The phases of a construction project (architect, design, specify and build) are linear and their boundaries are well-defined. In the case of IT projects, various phases not only overlap, but they even spiral -- making the project-management process extremely complex (Gopal, 1999). 3. Creating vs. fabricating. In the case of engineering projects, the construction process primarily consists of fabricating the end product from pre-designed and pre-tested components. In the case of IT projects, most code is still written from scratch (Gopal, 1999). 4. Deterministic deliverables. Deliverables in most engineering projects are defined in precise terms. For example: "Shaft-wall cavity, 1-in. steel C-H studs with two layers of 5/8-in. gypsum board, a two-hour fire rating." IT deliverables are seldom defined to the same degree of specificity and often remain open to different interpretations by different players (Gopal, 1999). 5. Historical information. In engineering, extensive databases of highly accurate and easily usable effort and cost values are broadly available to estimators. In IT, there are few sources of such information. Most IT estimating consists of team members' best guesses (Gopal, 1999). 6. Well-defined responsibilities. In the case of engineering projects, responsibilities of team members, such as steel fabricators, drywall installers, masons, plumbers and electricians, are quite specific. In IT projects, the same person (time permitting) invariably ends up being the analyst, designer, programmer and tester (Gopal, 1999). 7. Symbols vs. text. With engineering drawings and specifications, most of the work is done through standard symbols and terms. In a project for a house, the landscape map by the contractor is drawn to scale, showing the drainage, drip watering, electrical wiring and trees and shrubs using standard symbols and a minimum of text. No confusion. Different construction companies do not create new or different symbols and terms to distinguish themselves from one another. But IT vendors strive to be different by inventing new, nonstandard terminology (Gopal, 1999). Though the fundamentals of engineering project management apply to IT projects, success will come only to those who are able to understand the key differences and involve the stakeholders input during all steps of the project. The stakeholders should have an important role in the management of IT projects. There is a better chance that a project is not ended because of over budget if the stakeholders are involved and provide their input during all stages of the project. Many IT projects begin with basic outline and a proposed budget and then in the middle stages of the projects problems arises such as costs are under estimated which may cause the project to fail. IT projects are announced as a failure and stopped when it seems to be costing more than the proposed budget and with little promised returns. Involving the stakeholders in the conception, planning and the management of the IT project can get support if the project goes over budget. References Bernard, Ray (2005) Coopetition arrives: open standards will bring more choices, lower costs and a stronger industry. Security Technology & Design 15(10) p.26(5). Retrieved November 30, 2006 from InfoTrac OneFile at University of Phoenix on-line library ecampus.phoenix.edu Gates, L. (2003). Project management tools: A new look. February 28. http://www.javareport.com/article.aspxid=7349&page= Gopal, K. (1999) "Why IT Project Management is so Hard to Grasp" Publication: Computerworld, 5th March 1999. Gray, C.F., Larson, E.W. (2005). Project Management: The Managerial Process, 3rd ed. McGraw-Hill Co. Guatam, K., Jayant, S. (2003). The next hurdle for Indian IT. McKinsey Quarterly, Special Edition. Issue 4, p. 42-53. Koontz, L. (2003) "Testimony Before the Subcommittee on Social Security". House Committee on Way and Means. http://www.waysandmeans.house.gov. Accessed 6th June 2004. Nielsen, Bo Bernhard (2002). Synergies in strategic alliances: Motivation and outcomes of complementary and synergistic knowledge networks. Journal of Knowledge Management Practice. Retrieved December 1, 2006 from http://www.tlainc.com/articl43.htm Svetlana, S. (2006). Information technology project management: Project management maturity and its effect on project success. Concordia University, Canada. AAT MR14377. The Standish Group International (2001) CHAOS: A Recipe for Success. The Standish Group International, INC. http://www.standishgroup. Accessed 15th June 2003. Unknown (1998). Retrieved November 30, 2006 from http://mayet.som.yale.edu/coopetition/teaching97/1998stratclass1/sld011.htm Van Yoder, S. (2001) "Beware the coming corporate backlash" Publication: Industry Week, 4th February 2001. Walker, J. (2003) "Technology, Still In Its Infancy". Business Week. http://www.business-week.com. Accessed 5th June 2004. Wateridge, J. (1995) "IT Projects: A Basis For Success", International Journal Of Project Management, Vol.13, No. 3, pp. 169-172. Wideman, M. (retrieved 11/29/06). The Future of Project Management. Project Management Wisdom. http://www.maxwideman.com/papers/future/pyramids.htm Read More