This document discusses lessons learned from building an international development collaboration between IBM teams in the US, Germany, and Russia. Some key challenges included building trust with counterparts in Russia, adapting processes to local practices rather than imposing foreign approaches, and addressing logistical and regulatory hurdles in transporting technology between countries. Success requires commitment from all stakeholders, identifying cultural differences, and establishing new processes through pioneers willing to take on challenges of working globally.

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Global Development Partnerships
Lessons learned from building international
development collaborations
NASA Project Management Challenge 2009 © 2009 IBM Corporation

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Intention of this presentation
Share lessons learned and best practices from building
international development cooperations. This is a personal
view which might be subjectively biased and for sure is not
complete.
Try to transfer these insights onto an abstract level.
Spark some ideas on how to initiate international
collaborations. I marked these proposed actions with this
“piece of a puzzle” throughout the entire presentation.
The focus is NOT to discuss the benefits and disadvantages
of globalization.
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Globalization
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Basics on Globalization – What is it?
A modern and generic definition of Globalization is:
Globalization is the process of growing international
interdependences and integration.
The main causes for the modern globalization trends are
technological progress (“digital revolution”), particularly in the
communications and transportation technologies, and
the political decisions which impacted the liberalization of
world trade.
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The Globalization Hype
The Globalization topic is pervasive in the news, in internet forums,
and in our minds.
Global threat or global challenge
People fear to lose jobs and livelihoods due the effects of
globalization. If you start a global collaboration then fear is an
inhibitor for the success of your mission.
Why going global?
– Huge market potential
– Worldwide skill base, open and connected worldwide community, open source
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Entrepreneurial potential for globalization
You need the support, motivation, and commitment of the entire
team, i.e., all stakeholders including high level management,
sponsors and the execution team.
Management Employees
Globalization
Organization Finance
graphic provided by Dr. Christopher Stehr
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Reasons for failure
Dr. Christopher Stehr, assistant professor at the University of Ulm and chairman of
polymundo [1], analyzed companies which collaborate globally. As a result of this study
he derived that global collaboration can only be successful if the following questions can
be answered with YES.
Is the company really able to adapt its organization structure due to
the worldwide necessities and conditions? (organization)
Is the top management (CEO/owner et.al.) in terms of time
and capability able and willing to resolve or to take over
the new challenges and tasks? (management)
Are the employees ready and prepared to support the continuously
entrepreneurial globalization of their enterprise (employees)
Are share holders and other financiers willing or able to support and
to finance the entrepreneurial globalization (finance)
[1] polymundo is a company for globalization consultancy: http://www.polymundo.de/e_unternehmen.html
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My background on Globalization
IBM is a globally integrated company
– Global development teams due to high resource and expertise
requirements for large high tech development projects
– Technical expertise is provided onsite at customer locations:
R&D labs around the world
Three years ago we built up a development team in IBM
Russia
– My role in this effort “liaison manager”
Evaluation of potential development cooperations with
international external partners
– identify an appropriate form and select the best partner
I am a member of IBM’s Corporate Service Corps.
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Our mission
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Our mission
Build High Performance Computing (HPC)
systems with outstanding economical energy
consumption ...
... in an international development collaboration
with a new team in Russia.
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Beginning of the collaboration: starting point in 2006
Moscow, Russia
Rochester, MN
Boeblingen, Germany
Poughkeepsie, NY
Raleigh, NC
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Beginning of the collaboration: starting point in 2006
Experienced teams in USA and Germany did exist:
technical development, Project Management, and administration
(finance, procurement, etc.)
Parts of the lab facilities in Russia (buildings) did exist, but
no hardware development engineers and no adequate
infrastructure
– Establish a liaison manager onsite and build a trustful relationship with
your counterpart
– Hiring
– Education
– Adminstration, Logistics (Visa, Export clearances for transportation)
– Financials
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Challenges,
Experiences and
Lessons Learned
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Team building
Wisely identify a liaison manager as your counterpart
in the other country
– Trusted partner
– Accepted leader
– Insider
– As yourself this person should be 100% accountable for the success of the project
Since your counterpart has local team insights and you usually know
most about the project you should select the other team members in
a common decision process.
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Hierarchy and Communication Networks
In China Lin would be my preferred counterpart. In Russia Olga would be my preferred counterpart.
Tatjana
Lin, CEO
Maxim
Natasha Elena
Hai, Assistant
Igor, CEO
Olga
Yang, Mgr. Jing, Mgr. Wei, Mgr.
Michail
Viktor
Sheng Xia Chen
Oleg
Xenia
Katerina
Ning Hao Lian
Lee Fei Boris
Larissa
Hong
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Transportation logistics and export regulations
Export is not just the transportation of goods across borders but also the
international exchange of all kind of data and information.
– Goods
– Software/data transfer
– Communication
For high tech collaborations it is one of the most crucial requirements
to bring the export and import clearances in place.
“If we compare the transportation of high-tech goods and a pallet of nasal
spray to Russia then the shipment of high tech goods takes much longer and
is much more expensive. Furthermore the probability of losing high tech
goods during transportation is much higher”.
(Statement by a logistics expert)
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The transportation issue
The toughest problem in our collaboration was to bring
development prototypes into the country.
You cannot get a general clearance. You need to apply for
each of the components separately.
You need an expert with good connections to customs offices
to estabish a viable solution. You need to meet with this
expert in person.
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Some lessons learned
“The Russian way”: Russian methods have matured evolutionary
and therefore most often work best in Russia. Even if you are the
senior partner you should not always try to do it the German way, or
the US way, or the typical project management style. Listen for the
advices of the insiders and decide afterwards.
Processes should evolve from best practices. For new endeavors
there are often no established and applicable processes in place.
For such missions you need key players that are willing to do
pioneering work and establish new processes. The difficulty in
performing pioneering work is often underestimated since we usually
act according to our habits and our best practices which are usually
included in our established processes. Therefore it’s hard to find
such persons who are pioneers AND on the other hand no notorious
demolitionists.
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How to identify cultural traps
Do preparations to avoid traps ...
... by talking with experts
... by reading literature
– The quick way: try to identify in which areas your habits differ most from
the culture in your partner‘s country, e.g.,
– are written or spoken statements more reliable?
– importance of common socializing activities: who joins for
lunch/dinner? who picks you up at the hotel?
– who contributes in meetings, who dominates, who decides
– do meetings usually end with a list of assignments/action plans
Learn it the hard way: go to the country.
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Preffered way of communication - level of commitment
USA, West Europe:
Weak commitment Strong commitment
Russia:
Weak commitment Strong commitment
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Summary: the „pieces for the puzzle“ to take away
A new international collaboration cannot be effective from day one:
it is a strategic decision to start a global collaboration which requires
patience.
You need the support, motivation, and commitment of the entire
team, i.e., all stakeholders including high level management,
sponsors and the execution team. Furthermore the organization
must be ready for globalization.
Wisely establish a liaison manager onsite and build a trustful
relationship with this insider.
You are a master in Project Management but a freshman in the
countries: listen to the native insiders.
For high tech collaborations it is one of the most crucial
requirements to solve logistic issues.
Key players must be “pioneers” and establish new processes. Are
your team members “global citizens”?
Try to identify traps and weak spots and assign problem solvers.
... and there are lots of additional pieces
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Questions?
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Contact Information
Michael Stetter
IBM Deutschland Research & Development GmbH
Schönaicher Str. 220
71032 Böblingen, Germany
michael.stetter@de.ibm.com, +49 7031 162801
http://www.linkedin.com/in/stetter
http://www.xing.com/profile/Michael_Stetter2
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