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ORGANIZING THE INTERNATIONAL PROJECT Chapter 6.docx
- 1. ORGANIZING THE INTERNATIONAL PROJECT Chapter 6 THE CHALLENGE OF ORGANIZING AN INTERNATIONAL PROJECT Purpose of organizing international projects: organizational design. Forms of organizing an international project: ‘Organizing the project’ is a set of activities that have to be finished in the planning phase of the project. 2
- 2. SELECTION OF SUITABLE PROJECT STRUCTURE The following factors need to be considered with regard to the selection of the most suitable project structure: . 3 Chief Executive Head of Production Head of MarketingHead of R&D Functional Manager Functional Manager Functional
- 3. Manager Functional Manager Functional Manager Functional Manager Functional Manager Project Project coordination 4 Example of a functional project structure Chief Executive Head of Production Head of MarketingHead of R&D Functional Manager
- 4. Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager Functional Manager Project Manager PM Team Member PM Team Member PM Team
- 5. Member Project Team Member 5 Example of a ‘projectized’ structure Chief Executive Engineer- ing Finance Marketing Human Resources Others Consul- tants Suppliers Project 1 Operations Controlling
- 7. Project responsibility 6 Example of a matrix structure CULTURAL IMPACT ON PROJECT ORGANIZATION (1) Organizational structures have the following purposes: hierarchies, and reporting lines. differ between individuals, but also between national cultures. Keep in mind the cultural embeddedness of matrix structures and responsibility charts, both based on: ower distance.
- 8. 7 Individuals from equality-oriented cultures tend to prefer flat and lean organizational structures. People from hierarchy-oriented cultures tend to favour pyramid-like tall organizations with a high degree of formalization and centralization. Equality Hierarchy Individuals from group-oriented cultures tend to work better in permanent functional organizational structures because of the continuity to work in the same group. People from individualistic cultures tend to welcome temporary organizational structures like projects. Individual Group Individuals from cultures with high uncertainty avoidance tend to welcome structure as an
- 9. orientation frame. They tend to accept precise guidelines for co-ordination and rules. People from low uncertainty cultures tend to feel at ease with matrix organizations offering more flexibility, but also ambiguity. Embracing risk Avoiding risk Individuals from status-oriented cultures tend to see and use an organizational structure to show and increase their personal standing. Tall organizations with many hierarchy levels are preferred because they offer good opportunities to be perceived as important. In achievement-oriented cultures, structures tend to be tailored to suit best organizational objectives. Achievement Standing / status
- 10. 8 Cultural impact on project organization (2) INTERNAL AND EXTERNAL CO-ORDINATION OF AN INTERNATIONAL PROJECT Means of internal project co-ordination: mmunication nodes. Means of external project co-ordination:
- 11. -level meetings. 9 Project Manager Quality Assurance Controlling Human Resource/ Change Management Administration Engineering Assembly Logistics Process Reengineering Software Development Manufacturing Procurement Project Management Project Realisation (depending on the nature of the project)
- 12. Project Office 10 Example of a mechanism for internal co-ordination: The Project Office Firm Fixed Price (FFP) Cost Reimburse- ment Cost Plus Fixed Fee (CPFF) Incentive Contracting high low high Involvement of customer Degree of risk for customer
- 13. 11 Contracts as special forms of external co- ordination CONTRACTS IN INTERNATIONAL PROJECTS It is recommended to use industry-wide global standards if available. A good starting point is the United Nations Commission on International Trade Law (UNCITRAL). It is also recommended to refer to INCOTERMS as a common language and reference frame in order to reduce misunderstandings. 12 PARTICULARITIES OF ORGANIZING INTERNATIONAL PROJECTS Size of team: projects, bigger teams are more difficult to manage than smaller teams. though this
- 14. depends on the nature of the project). -projects. c project phases. Using structure to overcome language and cultural barriers. functional language. 13 LINKING STRUCTURES, TASKS, AND PEOPLE The structures provide the frame of co-ordinating the activities of project members and stakeholders. The Work Breakdown Structure contains all activities the project members need to carry out in order to obtain the project result. The responsibility chart of responsibility matrix combines structures, activities, and people:
- 15. WBS. project. Basic roles can be summarized by the RASIC system as illustrated on the next slide. 14 esponsible pproval upport nformed onsulted R C A S I Responsibility for work
- 16. Responsibilities for management Responsibilities for communication 15 R I A R S A R C A R C A R C A R A R A R A R S A R A R A I R A
- 17. C R A R A S R A Assembly Function Tests Generation of working plans Material ordering process Functions/Roles Logistics Manufacturing Packaging Returned Goods Documentation - export Specification and validation of packaging S u b -P ro je c
- 18. t M g r B Change Mgmt Assembly Drawings Assembly Facility Layout Goods Receipt Warehouse Layout Commissioning Interim Storage Dangerous Goods Commodity Codes M a rk e ti n g P ro
- 21. c s G R P ro je c t M a n a g e r S a le s Project: Production Transfer to China PROJECT RESPONSIBILITY CHART Sub-Project Description of work packages R &
- 23. s e m b ly 16 Example of a responsibility matrix