International Project Management PDF

International Project Management Unit 6. Organizing the international project International Business Project Management Degree in International Relations Faculty of Law University of Alicante Unit 6. Organizing the internationa...

International Project Management Unit 6. Organizing the international project International Business Project Management Degree in International Relations Faculty of Law University of Alicante Unit 6. Organizing the international project 1  International Project Management Unit 6. Organizing the international project Unit 6. Organizing the international project 1. Leading an international project 2. Managing the project team 3. Structuring communications 4. Internal and external coordination 5. Procurement management and outsourcing 6. Techniques, technology and associated tools 2  International Project Management 1. Leading an international project Unit 6. Organizing the international project 1. Leading an international project Leadership involves working with others through debate in order to guide them from one point to another. Management is associated with directing another person to get from one point to another using a known set of expected behaviors. 3  International Project Management Leadership styles Unit 6. Organizing the international project 1. Leading an international project Leadership is the ability to influence the project team to help achieve the goals, high performance and communicate the vision of the Project. Project managers must learn team-building skills to integrate the efforts of all project participants and create an environment where all team members are personally and professionally satisfied, engaged and have mutual trust. 4 https://www.atlassian.com/blog/quiz/find-your-leadership-style-examples  International Project Management Leadership styles Unit 6. Organizing the international project 1. Leading an international project Servant leaders employ empathy and commitment while sharing power and authority. They achieve results by focusing on the needs of the team. This is the preferred Scrum Master role style. Delegating leaders. The team is trusted to carry out the work with minimal supervision and most work is delegated. The Project Manager monitors the performance of the team. Autocratic leaders make decisions on their own, allowing team members little involvement or discussion before a decision is made. Use only on rare occasions. Task-Oriented leaders enforce task completion and adherence to deadlines. 5  International Project Management Leadership styles Unit 6. Organizing the international project 1. Leading an international project Directing leaders instruct the team members what tasks are required, when and how they should be performed. It is used at the very start of the project. Laissez Faire. The team is left largely unsupervised, so the leader does not interfere with their daily work activities. Often this style leads to a state of anarchy. Assertive leaders confront issues and show confidence to establish authority with respect. 6  International Project Management Unit 6. Organizing the international project Conflict management 1. Leading an international project Successful conflict management results in greater productivity, positive working relationships, creativity and better decision making. General techniques for resolving conflics: Withdraw/Avoid: Ignoring and postponing the issue. Not to be used when its solution is important for success. Smooth/Accomodate: Avoiding disagreement while emphasizing areas of mutual accord. Appropriate to initiate a positive start. Compromise/Reconcile: Searching for solutions that bring some degree of satisfaction to all parties temporarily (Lose-Lose situation). Force/Direct: Imposing a decision and makes use of the formal authority. Appropriate for quick and non-negotiable decisions (Win-Lose situation). Collaborate/Problem solve: Requires a cooperative attitude that leads to consensus and commitment, although it takes time and effort (Win-Win situation). 7  International Project Management Unit 6. Organizing the international project Motivation theories 1. Leading an international project Motivation causes individuals to contribute extra effort voluntarily translates into better quality, higher productivity, satisfaction and high morale. Hierarchy of needs (Abraham Maslow) A sequence of needs is defined, ranging from physiological needs, safety needs, social needs, esteem, and self- actualization. Unless one stage is not fulfilled, the next stage cannot be accomplished. The motivational needs are social, esteem and self- actualization needs. 8  International Project Management Unit 6. Organizing the international project Motivation theories 1. Leading an international project Motivational and Hygiene Factors (Frederick Herzberg) Motivators Performance and achivement Salary Recognition Working conditions Job Status The physical workspace Responsability Relationship with colleagues Opportunities for advancement Relationship with supervisor Hygiene Factors Personal Growth Quality of supervisor The work itself Policies and rules Improving these factors Improving these factors helps to increase job helps to decrease job satisfaction dissatisfaction 9  International Project Management Unit 6. Organizing the international project Motivation theories 1. Leading an international project XY Theory (Douglas McGregor) Theory X (Authoritarian management style): Assumes that the average person dislikes work and will avoid it if possible. Theory Y (Participative management style). Team members usually accept and seek responsibility and commitment to objectives based on the rewards associated. 10  International Project Management 2. Managing the Project Team Unit 6. Organizing the international project 2. Managing The Project team The Tuckman ladder A new team does not perform exceptionally from the very start. The team changes from being a group of strangers to becoming a team with a common goal. Building effective teams is a process of going through five stages that usually occur in order. Projects with team members who worked together in the past might skip one or more stages. 11  International Project Management 2. Managing the Project Team. MAIN TOOLS Unit 6. Organizing the international project 2. Managing The Project team Responsibility Assignment Matrix (RAM) A RAM shows the project resources assigned to each work package ensuring that there is only one person accountable for any one task to avoid confusion about who is ultimately in charge or has authority for the work. Example of RAM: RACI chart Responsible: Doing the task Accountable: Owning the task. The responsible for ensuring work is finalized Consulted: Provides information useful to completing the task Informed: Keeping Aware. Who will be kept up to date 12  International Project Management 2. Managing the Project Team. MAIN OUTPUTS Unit 6. Organizing the international project 2. Managing The Project team The Resource Management Plan Key concepts: Role. The function assumed by, or assigned to, a person in the project. E.g. civil engineer, business analyst… Competence. The skill and capacity required to complete assigned activities within the project constraints. May require training, new recruitment, changes in scope and schedule, etc. Responsibility. The assigned duties and work that a project team member is expected to perform. Authority. The rights to apply project resources, make decisions, sign approvals, accept deliverables, and influence others. 13  International Project Management 2. Managing the Project Team. MAIN OUTPUTS Unit 6. Organizing the international project 2. Managing The Project team Team Charter Document that sets out the team's values, agreements and operating guidelines. Early commitment to clear guidelines decreases misunderstandings and increases productivity. 14  International Project Management 2. Managing the Project Team. MAIN OUTPUTS Unit 6. Organizing the international project 2. Managing The Project team Resource Breakdown Structure The resource breakdown structure is a hierarchical representation of physical and human resources, by category and type (labor, material, software, facilities, equipment, supplies, etc.) 15  International Project Management Unit 6. Organizing the international project Resource Breakdown Structure 2. Managing The Project team 16  International Project Management Unit 6. Organizing the international project Resource Breakdown Structure 2. Managing The Project team 17  International Project Management Unit 6. Organizing the international project Project Resource Management - Main Outputs 1. Leading an international project Resources Calendars Calendars show the working days, shifts, start and end of normal business hours, weekends, and public holidays and and when and for how long team and physical resources will be available during the project. It is used for estimating resource utilization. Techniques: Resource allocation: the amount of resources required during specific periods of time. It provides a better understanding of the time demands of the project and the resources available. Software produces histograms that identify over-allocated and under-allocated resources. 18  International Project Management Unit 6. Organizing the international project Project Resource Management 1. Leading an international project Resource Optimization Resource leveling: A technique in which start, and finish dates are adjusted based on resource constraints to balance the demand for resources with the available supply. It can often result in changes to the original critical path. Resource smoothing: A technique that adjusts the activities of a schedule model within their free and total float. The critical path is not changed, and the completion date may not be delayed. Resource smoothing may not be able to optimize all resources. 19  International Project Management Unit 6. Organizing the international project 3. Structuring communications 3. Structuring communications Effective communication links stakeholders with diverse cultural, organizational, and expertise backgrounds, bringing together varied perspectives and interests. Communications model for Cross-Cultural Communication 20  International Project Management Unit 6. Organizing the international project Communications methods 1. Leading an international project Communication methods use to share information among project stakeholders: Interactive communication. Between two or more parties performing a multidirectional exchange of information in real time meetings. Push communication. Sent or distributed directly to specific recipients who need to receive the information. This ensures that the information is distributed but does not ensure that it actually reached or was understood (letters, memos, reports, emails, voice mails, blogs..) Pull communication. Used for large complex information sets, or for large audiences, and requires the recipients to access content at their own discretion subject to security procedures (Web portals, intranet sites...) 21  International Project Management Unit 6. Organizing the international project 4. Internal and external coordination 3. Structuring communications The internal and external coordination of the project is managed through communication from different dimensions: Internal External Formal Informal Written Oral 22 Upward Horizontal Downward  International Project Management Unit 6. Organizing the international project 4. Internal and external coordination 3. Structuring communications For an effective coordination must be defined all aspects of communication, including choice of appropriate technologies, methods, and techniques: Communication Technology Common methods used for information exchange and collaboration include: conversations, meetings, written documents, databases, social media, websites... Factors that can affect the choice of communication technology include: ü Urgency of the need for information. The urgency, frequency, and format may vary from project to project and also within different phases. ü Availability and reliability of technology. Communications artifacts should be compatible, available, and accessible for all stakeholders ü Easy to use. Technologies should be suitable for project participants and proper training events should be planned. 23  International Project Management Unit 6. Organizing the international project 4. Internal and external coordination 3. Structuring communications Communication Technology ü Project environment. Face-to-face operations or in a virtual environment; location in one or multiple time zones; multiple languages and cultures. ü Sensitivity and confidentiality of the information. Additional security measures may be required, as well as social media policies for employees to ensure appropriate behavior, security, and the protection of proprietary information. 24  International Project Management Unit 6. Organizing the international project 5. Procurement Management y Outsourcing 5. Procurement management and outsourcing Project Procurement Management includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team. The personnel authorized to procure the goods and/or services may be members of the project team, management, or part of the organization’s purchasing department. Project Procurement Management includes the management and control processes required to develop agreements such as contracts, purchase orders, memoranda of agreements (MOAs), or internal service level agreements (SLAs). 25  International Project Management Unit 6. Organizing the international project Key Concepts for Procurement Management 5. Procurement management and outsourcing The project manager does not have to be a trained expert in procurement management laws and regulations but should be familiar enough with the procurement process to make intelligent decisions regarding contracts and contractual relationships. The project manager is typically not authorized to sign legal agreements binding the organization; this is reserved for those who have the authority to do so, which usually involves the legal department. The contracting approach and the contract itself should reflect the simplicity or complexity of the deliverables or required effort and should be written in a manner that complies with local, national, and international laws regarding contracts. A contract should clearly state the deliverables and results expected. Anything not in the contract cannot be legally enforced. In international contracting, the legal jurisdictions must be clearly spelled out in the contract. 26  International Project Management Unit 6. Organizing the international project Roles in Procurement Management 5. Procurement management and outsourcing Seller: contractor, vendor, service provider, or supplier, depending on the application area. Buyer: the owner of the final product, a subcontractor, the acquiring organization, a service requestor, the purchaser or the winning bidder. Considerations The buyer becomes the customer to subcontractors, suppliers, and service providers and is therefore a key project stakeholder from the seller’s perspective. Terms and conditions of the contract and the statement of work (SOW) become key inputs to the seller and Project team. The seller is usually outside the performing organization or at least external to the project and may become a buyer of lower-tiered products, services, and materials from subcontractors and suppliers. 27  International Project Management Unit 6. Organizing the international project Contract Payment Types 5. Procurement management and outsourcing Categories: Fixed-price or Lump Sum contracts involve setting a fixed total price for a defined product, service, or result to be provided. These contracts should be used when the requirements are well defined and no significant changes are expected. The seller accepts a high level of risk. Cost-reimbursable contracts are suitable when the work is evolving, likely to change, or not well defined. They involve payments to the seller for all legitimate actual costs incurred for completed work, plus a fee representing seller profit. The risk in on the buyer. Time & materials/means contracts (T&M). An hybrid contract between a fixed price and cost reimbursable contract used when the scope is broadly defined, and there is a high probability of changes to the scope. The unit cost of labor or material is fixed, but the number of units is flexible. The buyer and seller share the risk of the contract. 28  International Project Management Unit 6. Organizing the international project Types of Fixed-Price Contract 5. Procurement management and outsourcing Firm fixed price (FFP). The price for goods is set at the outset and not subject to change unless the scope of work changes. The seller has great incentive to complete the project as cheaply and quickly as posible. If the product is not well defined, both parties are at risk. Fixed price incentive fee (FPIF). A price ceiling is set, and all costs above it are the responsibility of the seller. Although the price is fixed, the seller is offered a performance-based incentive usually related to cost, schedule, or technical performance. Both party wins. Fixed price with economic price adjustments (FPEPA). It is a fixed-price contract, but with a special provision allowing for predefined final adjustments to the contract price due to changes in conditions, such as inflation changes, payments in different currencies or increases (or decreases) in the cost of specific products. 29  International Project Management Unit 6. Organizing the international project Types of Cost-Reimbursable Contract 5. Procurement management and outsourcing Cost plus fixed fee (CPFF). The seller is reimbursed for all allowable costs for performing the contract work and receives a fixed-fee payment calculated as a percentage of the initial estimated project costs. Fee amounts do not change unless the project scope changes. Risk is limited to service losses, not materials. Cost plus incentive fee (CPIF). The seller is reimbursed for all allowable costs plus a predetermined incentive fee based on the achievement of certain performance objectives set forth in the contract. if final costs are lower or higher than originally estimated costs, both buyer and seller share the costs of variances based on a pre-negotiated cost sharing formula (e.g. (80/20). Cost plus award fee (CPAF). The seller is reimbursed for all legitimate costs, but the most of the fee is earned based on the satisfaction of certain broad subjective performance criteria that are defined into the contract. The determination of fee is based solely on the subjective determination of seller performance by the buyer. 30  International Project Management Unit 6. Organizing the international project Comparison of Contract Types 5. Procurement management and outsourcing Fixed Price (FP) Time & Material (T&M) Cost Reimbursable (CP) FFP For small projects CPFF FPIF CPIF FPEPA CPAF LOW Buyer’s Risk HIGH HIGH Seller’s Risk LOW 31  International Project Management Unit 6. Organizing the international project Seller Selection Analysis 5. Procurement management and outsourcing 1. Least cost. Appropriate for procurements of a standard or routine nature where well-established practices and standards and from which a well-defined outcome is expected. 2. Qualifications only. It applies when the value of the procurement is relatively small. The buyer establishes a short list and selects the bidder with the best credibility, qualifications, experience, expertise, areas of specialization, and references. 3. Quality-based/highest technical proposal score. The selected firm is asked to submit a proposal with both technical and cost details. Technical proposals are first evaluated based on the quality of the technical solution offered. The seller who submitted the highest-ranked technical proposal is selected if their financial proposal can be negotiated and accepted. 32  International Project Management Unit 6. Organizing the international project Seller Selection Analysis 5. Procurement management and outsourcing 4. Quality and cost-based. The seller is selected mainly on the basis of cost. However when risk and/or uncertainty are greater, quality should be a key element when compared to cost. 5. Sole source. The buyer asks a specific seller to prepare technical and financial proposals. Since there is no competition, this method is acceptable only when properly justified and should be viewed as an exception. 6. Fixed budget. It requires disclosing the available budget to invited sellers and selecting the highest-ranking technical proposal within the budget. Because sellers are subject to a cost constraint, they will adapt the scope and quality of their offer to that budget. Appropriate only when the SOW is precisely defined, no changes are anticipated, and the budget is fixed and cannot be exceeded. 33