THE CONTEXT OF INTERNATIONAL PROJECTS IN TERMS OF ORGANIZATIONAL STRATEGY AND CULTURE Chapter 2 HOW ARE INTERNATIONAL PROJECTS LINKED TO ORGANIZATIONAL STRATEGY? An organization has a vision it pursues. To achieve its vision, it has a kind of roadmap or plan: this is also called its strategy. To implement its strategy, the organization uses (international) projects. During the project and at the end of the project, the organization checks whether the project has delivered the desired results. This is an ongoing cycle we also call strategic management cycle. 2 Project 3 Project 2 Strategic Management Cycle Business Planning Communi- cating and high-level aligning Feedback and Learning Translating the Vision/ Mission 1 3 2 Project 1 4 Executing Completing Planning Initiating How (international) projects are part of the organization’s strategy 3 THE CONNECTION BETWEEN (INTERNATIONAL) PROJECTS AND (INTERNATIONAL) PROGRAMS A program can be defined as a bundle of projects. Compared to a project, a program typically is bigger, requires more resources, and is crucial for the success of organizational strategy. The projects within a program serve the same strategic objective. Projects in a program are interdependent. They share the same objectives and scarce resources. They typically have a common infrastructure and share a certain set of risks. Programs have the following advantages:  Ensuring strategic alignment through interdependency of objectives.  Reducing the complexity of ‘large projects’ by clearly breaking them down into smaller, easy-to control projects contributes to clearer responsibilities, minimizes risks, and boosts morale and motivation. It also improves the quality of the results. Programs are essentially managed in the same way as projects. 4 PROJECT PORTFOLIO MANAGEMENT (PPM) A project portfolio is a collection of projects managed under one umbrella. These projects may be interrelated or not. Purpose of PPM is to maximize the efficacy of projects in the light of strategy execution. There are two main management processes within project portfolio management: 1. Selection and prioritization of projects. 2. Management of the projects within the portfolio by monitoring target achievement. A project portfolio is periodically adapted to the organizational strategy. The main activities of the PPM process are shown on the following slide. 5 Required inputs: 1. Program/ project title 2. Project objective in light of overall strategy 3. Risk level 4. Timeframe 5. Dependencies with other programs/ projects 6. Estimated budget or ROI 7. Impact of not delivering the program/project 1 3 2 4 Build or Update Project Portfolio Analyze & Prioritize Project Portfolio Monitor & Adjust Project Portfolio Consider new proposed projects The Project Portfolio Management Process 1. Categorization.

1. THE CONTEXT OF INTERNATIONAL
PROJECTS IN TERMS OF
ORGANIZATIONAL STRATEGY AND
CULTURE
Chapter 2
HOW ARE INTERNATIONAL PROJECTS LINKED TO
ORGANIZATIONAL
STRATEGY?
An organization has a vision it pursues.
To achieve its vision, it has a kind of roadmap or plan: this
is also called its strategy.
To implement its strategy, the organization uses
(international) projects.
During the project and at the end of the project, the
organization checks whether the project has delivered the
desired results.
This is an ongoing cycle we also call strategic
management cycle.
2

2. Project 3
Project 2
Strategic Management Cycle
Business
Planning
Communi-
cating
and
high-level
aligning
Feedback
and
Learning
Translating
the Vision/
Mission
1
3 2
Project 1

3. 4
Executing
Completing
Planning
Initiating
How (international) projects are part of the organization’s
strategy
3
THE CONNECTION BETWEEN (INTERNATIONAL)
PROJECTS AND
(INTERNATIONAL) PROGRAMS
A program can be defined as a bundle of projects.
Compared to a project, a program typically is bigger, requires
more resources,
and is crucial for the success of organizational strategy.
The projects within a program serve the same strategic
objective.
Projects in a program are interdependent. They share the same
objectives and
scarce resources.

4. They typically have a common infrastructure and share a certain
set of risks.
Programs have the following advantages:
gic alignment through interdependency of
objectives.
breaking them down
into smaller, easy-to control projects contributes to clearer
responsibilities,
minimizes risks, and boosts morale and motivation. It also
improves the quality
of the results.
Programs are essentially managed in the same way as projects.
4
PROJECT PORTFOLIO MANAGEMENT (PPM)
A project portfolio is a collection of projects managed under
one umbrella. These projects may be interrelated or not.
Purpose of PPM is to maximize the efficacy of projects in the
light of strategy execution.
There are two main management processes within project
portfolio management:
1. Selection and prioritization of projects.
2. Management of the projects within the portfolio by
monitoring target achievement.

5. A project portfolio is periodically adapted to the
organizational strategy.
The main activities of the PPM process are shown on the
following slide.
5
Required inputs:
1. Program/ project title
2. Project objective in light of
overall strategy
3. Risk level
4. Timeframe
5. Dependencies with other
programs/ projects
6. Estimated budget or ROI
7. Impact of not delivering the
program/project
1
3

6. 2
4
Build or
Update
Project
Portfolio
Analyze
& Prioritize
Project
Portfolio
Monitor
& Adjust
Project
Portfolio
Consider
new
proposed
projects

7. The Project
Portfolio
Management
Process
1. Categorization of
program/project
3 . Organizational
capability and
capacity information
2. Program and project
information
1. Business requirements in
form of organization’s
strategy
3. Prioritization of programs/projects
according to criteria as:
•pressure from the market
•capability of the organization

8. •risks
•timescale for delivery
•impact of not doing the programs/projects
2. Determination of complexity
and challenge of portfolio
Required activities:
1. Monitoring objectives of single project
2. Monitoring combination of projects in
light of organizational success
3. Monitoring project selection in light of
change
Required tools & techniques:
Same as for project
management, cf. Chapter 7
Critical aspects to be monitored:
Required inputs:
6

9. PROJECT MANAGEMENT MATURITY
An organization gains experience about project management
over time.
Usually, the organization starts with single projects.
First, it develops an efficient way of project management.
Then, it reaches the stage in which projects perform well as an
entirety.
The final stage is a continuous selection of projects which
contribute to sustainable competitive edge of the organization.
The prerequisite for the last stage is well implemented and
smoothly working project portfolio management.
7
- Existence of processes to measure project effectiveness and
efficiency
- Continuous improvement of the efficiency of project portfolio
management
- Project management processes integrated in the corporate
processes
- Synchronization of projects with corporate strategy
- Solid analysis of project performance

10. - Standardization and institutionalization of project management
- Informal and unsystematic collection of project performance
data
- Project estimates and schedules based on industry standards
- Introduction of a structured project management methodology
- Inconsistent application (mainly for large visible project)
- Many ad-hoc processes in the organization
- Awareness development through senior management
regarding the
importance of structured project management
Level
5
Level
1
Level
4
Level
3
Level
2

11. In
c
re
a
s
e
o
f
p
ro
je
c
t
m
a
tu
ri
ty
Example of a 5 stage project management maturity model
8
PROJECT MANAGEMENT AND ORGANIZATIONAL
CULTURE
Organizational culture can be defined as the way an
organization is doing things.

12. A critical success factor of international projects is a supportive
project culture.
This has to be based on ethnorelativism: values as open
mindedness, respect, and trust.
Organizational culture goes like a common theme through
projects, programs, and project portfolios.
All members of the organization need to have a special set of
values, attitudes, and behaviours in order to help the
implementation of the organizational strategy.
Strategy and culture need to be in tune for maximal
organizational success.
9
4. Employee
welfare,
fairness and
trust
1. Degree of
internal
integration
5. Diversity

13. 2. Autonomy
and
involvement
3. Adaptability:
speed,
innovation and
risk
ADEQUATE ELEMENTS OF ORGANIZATIONAL CULTURE
FOR
SUCCESSFUL INTERNATIONAL PROJECTS
10
Project
Management
Program
Management
Project
Portfolio
Management

14. Management
by Projects
Main Content of
Concept
Managing a single
project efficiently
within given
organizational
constraints and
context.
Clustering projects
pursuing the same
objectives into a
program to support
alignment with
overall
organization’s
strategy and to

15. increase flexibility.
Clustering projects
into portfolios to
ensure alignment
with organization’s
strategy. PPM
supports
coordinated
resource allocation,
increases flexibility
of the whole
organization and
leads to sustainable
project success.
Managing the whole
organization as a
bundle of projects
based on a

16. supportive
organizational
culture. At the
extreme, the
organization
consists of one
complex project.
Scope
Limited to a set of
objectives linked to
one single project.
Business-unit or
organization-wide,
depending on
content of program.
An organization-
wide management
system.

17. A management
approach affecting
the whole
organization, also
inter-organizational.
Required Project
Maturity Level
Level 1 – 3:
Minimum level 1,
ideal level 3
Level 3 – 4 Level 4 – 5 Level 4 – 5
Overview of relevant project management methods – all aiming
at
strategy implementation
11
DEFINING THE INTERNATIONAL
PROJECT

18. Chapter 3
WHAT IS HAPPENING AT THE START OF AN
INTERNATIONAL PROJECT?
With reference to the project management life cycle, we are
in the initiating phase.
The project starts with an idea, a customer demand, a bid
issued by a government or other opportunities.
As each international project is unique, creativity is important
at this stage. Special techniques are helpful (see companion
website).
The project objective has to be in line with the organizational
strategy.
It is extremely important for the overall project success, that
the scene is set well at this stage of the project.
This is especially true for stakeholder involvement, and the
accuracy of the first rough schedule and budget.
2
Output
(deliverables)
Input
Initiating Phase: Input, Output, Controls and Mechanisms

19. Mechanisms:
Tools & techniques
(e.g. fishbone diagram) for
concept development
Controls:
Organization‘s project mgmt
standards/ procedures
Constraints: strategic, financial,
time, legal, cultural,
environmental, ethical
Initiating Phase
• Scope Statement
• Scope Acceptance
• Project Proposal
• Stakeholder Matrix
• Culture Gap Analysis
• Diversity-Complexity-
Assessment
• Organization’s Strategy

20. • Customer’s Requirements
• Market Demand
• Opportunities Provided
by Globalization
3
ATTENTION TO SCOPE MANAGEMENT
The project manager has to clarify from project start as clearly
as possible what the project should do, and what it should not
do.
Due to the heterogeneity of the stakeholders in an international
project, special care is due related to scope definition.
The danger of differences in associations, attached meanings
and general misunderstandings is high.
The SMART tool may be helpful:
able

21. 4
DEFINING MILESTONES
A milestone is a major pre-defined event that represents
measurable accomplishment toward the project’s completion.
Milestones need to be passed in order to continue with the
project.
They divide the project into more manageable sub-parts.
Milestones are defined at the beginning of the project.
It is important to formulate them as clearly as possible.
It is also important to communicate them well within the project
team.
5
THE WORK BREAKDOWN STRUCTURE (WBS)
The milestones are typically the pillars of the so-called Work
Breakdown Structure.
It structures the entire project into little, manageable chunks.
The WBS creates a linked, hierarchical series of activities,
which
are independent units but at the same time part of the whole.

22. The Work Breakdown Structure typically looks like a tree
diagram
(see companion website). It can also take the form of a check
list.
The process is as follows:
State the project scope and make sure that all stakeholders
have
the same understanding.
6
MAPPING CULTURAL PROJECT CONTEXT
Among others, international projects are characterized by
diversity and complexity.
This is largely due to cultural heterogeneity.
Major stakeholders need to be understood as well as possible,
including their social identity.
All stakeholders’ behaviour is embedded in context.
An important part of context in international projects is local or
national culture, organizational culture, and professional culture

23. as
outlined in the next slide.
7
Individual (human nature,
personality)
Professional/
Functional Culture
Organizational
Culture (Corporate culture)
Sub-
cultureSub-
culture
National Culture
Sub-
culture
Sub-
culture
Sub-

24. culture
CULTURES WITH IMPACT ON
INTERNATIONAL PROJECTS
8
1. Power Distance
Hofstede‘s model to map differences in national
culture
9
Universalism Particularism
Individualism
Communi-
tarianism
Neutral Affective
Specific Diffuse
Achievement Aspiration
Internal locus
of control

25. External locus
of control
Sequential Synchronic
Future
orientation
Past
orientation
Trompenaars‘ model to map differences in national
culture
10
Managing risk and uncertainty (4)
Defining & planning the project (3, 5)
Organizing the project (6)
Leading and managing the team (8)
Communicating (9); Co-operating (10)
Equality Hierarchy
Defining the project (3)
Managing risk and uncertainty (4)

26. Planning the project (5)
Organizing the project (6)
Implementing & controlling the project (7)
Embracing
Risk
Avoiding
Risk
Managing risk (4)
Organizing the project (6)
Implementing & controlling (7)
Motivating and leading the team (8)
Communicating (9); Co-operating (10)
Learning (11)
Individual Group
Matching strategy with projects (2)
Defining the project (3)
Planning the project (5)
Implementing & controlling the project (7)

27. Learning (11)
Universal
Circumstan-
tial
The Cultural Gap Tool to systematically analyse the
national culture environment of international projects (1)
The figures in brackets (this slide and next) indicate the book
chapters in which the topics are mainly
discussed. 11
Defining scope (3)
Leading and managing the team (8)
Communicating (9); Co-operating (10)
Conflict Consensus
Managing stakeholders (3)
Planning the project (5)
Implementing & controlling (7)
Leading and managing the team (8)
Learning (11)

28. Task Relationship
Planning the project (5)
Organizing the project (6)
Implementing & controlling (7)
Motivating and leading the team (8)
Achievement
Standing /
Status
Defining the project (3)
Planning the project (5)
Implementing & controlling (7)
Sequential Synchronic
Planning the project (5)
Executing & controlling the project (7)
Learning (11)
Theoretical Pragmatic
The Cultural Gap Tool to systematically analyse the
national culture environment of international projects (2)
12