IPM

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CHAPTER 6: CASE STUDIES OF
INTERNATIONAL PROJECT MANAGEMENT
Unit Name: International Project Management
Phạm Thị Mai Khanh (Ph.D.)
phamthimaikhanh.cs2@ftu.edu.vn
International Project - Concepts
A project is a temporary endeavour undertaken to create a unique product
or service. (PMBOK 2016)
An interna7onal project is a temporary endeavour, delivered by a project
team located in more than one country and from more than one
organiza7on, undertaken to create a unique product or service. (adapted from
PMBOK 2016)
An interna7onal or regional project is a project that involves mul4ple
loca4ons, en44es, organiza4ons, and business units. (Lientz and Rea 2003, p. 3)
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Examples of interna7onal projects
• Interna'onal efforts by governments.
• Interna'onal nonprofit and aid agencies.
• Efforts by firms to enter new markets and
expand their customer base.
• Mergers and acquisi'ons.
• Support for standardiza'on.
• Marke'ng ini'a'ves.
Interna7onal Projects – new traits
• Dependence of the organiza'on on the project. In a standard project, if there is
failure, the people and the organiza7on go on. However, interna7onal projects
tend to be more visible. The project is much more important and more at stake
with the interna7onal project.
• Risk and complexity. Interna7onal projects have much greater risk and
complexity.
• Poten'al benefits. The benefits of an interna7onal project are oQen spelled out
at the start much more than a standard project. This is probably because of the
following factors: (1) there is more at stake; (2) it takes more management
aTen7on to manage the project.
• Cost of the project. While many standard projects can be large and expensive, an
interna7onal project almost seems to always cost more. There is more
transporta7on, communica7on, and coordina7on. Greater complexity contributes
to higher cost as well.

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Interna7onal Projects vs. Standard Projects
Lientz and Rea 2003, p. 9
How Interna7onal Projects are Different?
Lientz and Rea 2003, p. 9

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Interna7onal Projects – new traits
• Dependence of the organiza'on on the project.
In a standard project, if there is failure, the people and the
organiza7on go on. However, interna7onal projects tend to be more
visible. The project is much more important and more at stake with
the interna7onal project.
• Risk and complexity.
Interna7onal projects have much greater risk and complexity.
Interna7onal Projects – new traits
• Poten'al benefits.
The benefits of an interna7onal project are oQen spelled out at the
start much more than a standard project. This is probably because of
the following factors: (1) there is more at stake; (2) it takes more
management aTen7on to manage the project.
• Cost of the project.
While many standard projects can be large and expensive, an
interna7onal project almost seems to always cost more. There is
more transporta7on, communica7on, and coordina7on. Greater
complexity contributes to higher cost as well.

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Why Interna7onal Projects are Complex?
• Lack of control
• Different cultures
• Different 7me zones
• Different currencies
• Variety of regula7ons and rules
• Poli7cal upheaval and uncertainty
• Visibility of the project to the outside world
Interna7onal Projects vs. Standard Project
Lientz and Rea 2003, p. 10

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Interna7onal Projects - Characteris7cs
• Approach toward work. Even in adjoining countries that speak the same
language and have the same religion and racial background, there can be
different aatudes toward work.
• The factor of 'me. Different cultures have different aatudes toward 7me.
• The value of money. What do people think about money? Do they want to
amass and save it? Or do they just want to get by? This relates to the aatude
and approach toward work. Offering money incen7ves oQen fails in some
countries. It turns people off and they feel insulted.
Interna7onal Projects – Characteris7cs (2)
• Planning versus doing. Some cultures have encouraged an analy7c frame of
mind. This may have been supported by religious aatudes. In such situa7ons,
team members may want to spend a lot of 7me discussing the work rather
than doing it—crea7ng an obvious problem for the schedule.
• Teamwork versus individual effort. –whether the emphasis is on individual
performance or team performance.
• Religion. Religion affects how people view life and how they go about their
work.
• The factor of climate and weather. Work paTerns are different in various
parts of the world due to climate and weather. Air condi7oning has served to
equalize the situa7on, but it is s7ll there J

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Interna7onal Projects – Characteris7cs (3)
•Management expecta'ons. Management tends to have exaggerated
expecta7ons about the benefits of almost all substan7al interna7onal
projects. These can be based upon vendor promises, experience at other
companies, and other factors. This is dangerous since there can be many
management- generated changes as the expecta7ons are not met.
• Management involvement. Some managers may feel that they have more at
stake with the project so that they tend to interfere with the project. They
may try to micromanage the project. This will slow things down as no one will
want to take ini7a7ve.
• The need for wider employee, customer, and/or supplier par'cipa'on. If you
want to achieve success in an interna7onal project, you must seek out and
involve as many affected people as possible.
Why interna7onal projects fail?
• Treatment of the interna7onal project as a standard
project
• Excessive management aTen7on
• Lack of sensibility to the local culture
• Failure to stay the course
• Failure to take into account self-interest
• Over-dependence upon technoloty
• Lack of measurement

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Cri7cal Success Factors for Interna7onal
Projects
• Everyone must win with the project
• Collabora7ve effort
• Measurement, measurement and more measurement
• Gather lessons learned as you go
• Cultural sensi7vity and awareness throughout the
project
• Proac7ve resource alloca7on
• Project organiza7on and manager and team member
selec7on
Advantages
of interna4onal projects
• Access to technical experts
• Environmental benefits
• Global workdays
• Improved disaster recovery abili7es
• Increased innova7on
• Larger pool of poten7al job candidates
• More accurate picture of interna7onal customers' needs
• Proximity to customers
• Reduc7on in travel 7me and expenses when star7ng a local office
instead of having team members travel there regularly

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Challenges
of interna4onal projects
• Adapt the organiza7onal culture to virtual teams
• Build trust
• Cope with language differences
• Establish a team iden7ty
• Handle divergent cultural values
• Manage conflict over distance
• Use of communica7on technology

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Types of Interna7onal Projects
• Mul7na7onal SoQware Deployment
• M&A
• Marke7ng a New Product
Lientz & Rea (2003), Chapter 11-13 (p. 195-225)
Types of Interna7onal Projects
Mul7na7onal SoQware Deployment (Issues)
• Background: the implementa7on of enterprise resource planning
systems (ERP systems).
• Objec7ves and scope:
– Technical purpose
– Business Purpose
– Poli7cal Purpose
• End products:
– The major end product is the soQware installed, working, and being used effec7vely
as part of improved business processes.
– Improved informa7on at headquarters, regions, and countries on a more 7mely and
predictable basis

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Types of Interna7onal Projects
Mul7na7onal SoQware Deployment (Issues)
• There is a Lack of Sensi7vity to the Culture Factors in Specific Countries
• The SoQware Was Purchased; However, It Cannot Handle the Regulatory
Requirements in Certain Countries Despite the Vendor Claims
• A Large Number of Key Personnel May Be Tied Up in This Project for
Months
• The SoQware Does Not Interface Easily with Several Cri7cal Legacy Systems
• Headquarters Does Not Provide Sufficient Resources or Money for the
Implementa7on in Remote Loca7ons
• The Consultant Selected for Suppor7ng the Implementa7on of the SoQware
Does Not Have Personnel in Some Company Loca7ons
Types of Interna7onal Projects
Mul7na7onal SoQware Deployment (Remedies)
• Planning
• SoQware and Consultant Acquisi7on
• SoQware Implementa7on
• Data Conversion Area: Interfaces
• Training and Cutover

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Types of Interna7onal Projects
Mergers and Acquisi7ons (Overview)
• Background: Cross-border M&A is a form of FDI which involve buying existing
foreign businesses.
• Objec7ves and scope:
– Technical purpose
– Business Purpose
– Poli7cal Purpose
• End products:
– Results of inves7ga7on of the companies.
– Business plan for the merger and acquisi7on; migra7on plan for the businesses.
– Financial analysis and proposals.
– Before-combina7on measurement.
– Project plan for implementa7on
– AQer-combina7on measurement.
– Detailed changes, organiza7on charts, etc.
Types of Interna7onal Projects
Mergers and Acquisi7ons (Issues)
• The Two Companies Are Not Compa7ble in Terms of Culture
• There Was a Lack of Analysis of Processes and Systems; Too Much
ATen7on Was Placed on Organiza7on
• The Acquiring or Dominant Firm Does Not Pay ATen7on to Issues at the
Local Level
• Organiza7on Change is Pushed Through without Thought or Planning
• Costs Are Not Reduced as Planned
• Current Work in Many Loca7ons is Nega7vely Impacted

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Types of Interna7onal Projects
Mergers and Acquisi7ons (Remedies)
• Iden7fy Merger and Acquisi7on Candidates
• Carry Out Due Diligence and Inves7ga7ons
• Undertake Detailed Planning
• Perform the Consolida7on
• Measure Results
Types of Interna7onal Projects
Marke7ng a New Product (Overview)
• Background: a new product has to be customized to the specific market
segment.
• Objec7ves and scope:
– Technical purpose
– Business Purpose
– Poli7cal Purpose
• End products:
– Planning completed for the product for each country.
– Culture and poli7cal check and evalua7on for the planning.
– Pre-rollout promo7on and adver7sing for the product.
– Rollout of the product in the countries along with the promo7on.
– Gathering of lessons learned and experience to fine tune future marke7ng campaigns
– Use of lessons learned to improve the product planning process for the future.

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Types of Interna7onal Projects
Marke7ng a New Product (Issues)
• There is a Failure to Learn from Other Product Launches
• There is a Lack of Culture Sensi7vity
• Too Much of the Adver7sing Is Geared to an Upscale, Western Audience
• How the Product Marke7ng Is Handled Is Inconsistent between Countries
• There Is a Lack of Coordina7on during the Marke7ng in Different Areas
• There Is Insufficient Follow-up AQer the Product is Launched
Types of Interna7onal Projects
Marke7ng a New Product (Remedies)
• Review Market Research and Other Informa7on
• Review Track Record for Successful and Failed Compe77ve Products
• Develop Culture Profiles of the Product for Each Market
• Prepare the Launch of the New Product
• Coordinate Product Marke7ng and Sales
• Gather Experience and Lessons Learned

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Issues of Interna7onal Projects
• Project Issues
• Business Issues
• Management Issues
• External Issues
Lientz & Rea (2003), Chapter 14-17 (p. 229-266)
Issues of Interna7onal Projects
• Project Issues (1)
Project Issues are those that occur aQer the project is started.
– Individuals in a Country Are Pulled away from Work on the
Project Due to Local Needs
– There Are Different Languages Employed among Team Members.
There Is No Provision for Interpreters
– People in Some Loca7ons Lack Experience and Knowledge about
Methods and Tools
– Communica7ons across the Loca7ons Is Poor

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Issues of Interna7onal Projects
• Project Issues (2)
– Technology Employed in Different Loca7ons Is Not Compa7ble
– The Project Leaders Do Not Have Prior Experience in
Interna7onal Projects
– Project Team Members Lack Experience and Knowledge about
Condi7ons in Other Countries
– It Is Difficult to Determine Status of the Work in Various
Loca7ons
– There Is Too Much ATen7on on Project Details That Many Issues
Are Not Iden7fied
Note: Issue-Impact-Preven'on-Ac'on
Issues of Interna7onal Projects
• Business Issues (1)
Business issues are those that impact the project and are based
in business units.
– The Interna7onal Project Requires Cri7cal People in a Country
– The Infrastructure in a Country Is Very Poor
– The Business Needs Are Diverse in Each Country for the Project
– The Project Depends upon Vendors Who Do Not Have a Strong
Presence in Some Loca7ons
– There Is No Provision to Address Problems and Issues in
Countries as They Arise

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Issues of Interna7onal Projects
• Business Issues (2)
– There Is a Wide Variety of Business Processes in Different
Countries
– Problems in One Country Are Not Seen as Sufficiently Important
in Headquarters
– It Is Taking Too Long to Have Decision Made
– There Is Substan7al Turnover of Staff in One Loca7on
Note: Issue-Impact-Preven'on-Ac'on
Issues of Interna7onal Projects
• Management Issues (1)
Management issues tend to be of larger scale than business
issues. Many management issues are oQen accepted as
constraints.
– Work Is Performed in One Country and Then Sent to Another
Country for Finishing
– Management Expecta7ons Are Centered upon Headquarters
with a Lack of ATen7on to Local Needs
– The Project Is Approved without Recognizing Other Projects and
Efforts
– There Is a Lack of Control Since the Project Is a Joint Venture

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Issues of Interna7onal Projects
• Management Issues (2)
– The Company in One Country Is Jointly Owned with a Local Firm
– Management Approval Was Only Obtained at Headquarters
without Involvement of Local Management
– The Method for Managing the Project Overall Is Too Bureaucra7c
– The Manager Who Was behind the Project Moves to a New
Posi7on
– Management Appears to Lose Interest in the Project Due to
Other Commitments
Note: Issue-Impact-Preven'on-Ac'on
Issues of Interna7onal Projects
• External Issues (1)
External issues are those that arise from government,
compe77on, and other factors that are not within the
organiza7on.
– Local Laws Are Impac7ng the Project
– Compe77on Is Much More Intense in a Specific Country
– Savings from a Project Are Not ATainable Because of Local Laws
– Economic Condi7ons in One Country Worsen

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Issues of Interna7onal Projects
• External Issues (2)
– The Opera7ons in One Country Have More Urgent Work Than
the Project
– New Technologies Appear in Some Loca7ons That Offer New
Opportuni7es
– It Is Difficult to Line Up Qualified Suppliers in Some Countries
– The Culture in a Country Is Not Compa7ble with the Results of
the Project
– There Are Many Different Cultures and Languages in a Country
Note: Issue-Impact-Preven'on-Ac'on