International project management
tapaswini
Chapter7IPM.pdf
IMPLEMENTING AND CONTROLLING INTERNATIONAL
PROJECTS
Chapter 7
THE CHALLENGE OF IMPLEMENTING AND CONTROLLING AN INTERNATIONAL PROJECT
The efficiency and efficacy of the processes and activities in the implementation phase highly depend on the quality of the output of the initiation and planning phases.
The main activities in the implementation phase follow the Plan-Do- Check-Act cycle:
Implement activities based on the project master plan.
Check the status of the project at regular intervals.
Compare the results of these status checks with the plan.
Act in case of deviances between the plan and the actual status by implementing counter measures.
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MONITORING AND CONTROLLING
Project monitoring refers to keeping track or checking a situation for a special purpose.
Project controlling entails an element of influence and exertion of power to rectify undesired situations:
Direct control (subject of this chapter): Fact-based controlling of resources with tools and techniques.
Indirect control (subject of other chapters) : Person-oriented controlling, using stakeholder management, leadership, motivation, negotiation, conflict management.
The detailed inputs, and outputs of these activities will be explained on the following slide.
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Required inputs:
Project Proposal and Project Master Plan , i.e.
Required tools and techniques:
1. Change orders
2. Change documentation supported by IT
3. Follow up of issue log in status meetings
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3 2
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PLAN
DOCHECK
ACT
The
Monitoring
Cycle
1. Inadequate allowance for time in planning phase
2. Inadequate specifications
3. Inadequate knowledge about customer’s needs
4. Lack of discipline
5. Improvements due to technological progress
6. Unforeseeable circumstances
1. Stakeholder Matrix
2. Cultural gap analysis
3. Diversity-Complexity Assessment
4. Project Scope Statement
5. Enhanced Risk Register
6. Resource loaded Gantt charts
7. Cumulative spread sheets
8. Quality plan incl. specs
9. Project structure
10. Contracts
Main output:
Data in form of nominal scale, interval scale, or descriptions
Required activities:
• Collection of hard data, mainly supported by IT
• Collection of soft data considering impact of cultural diversity
Main reasons for variances:
1. Data in various forms
2. Observations
Required tools and
techniques:
1. Red/Amble/Green
2. Milestone Analysis
3. Critical Path
4. Earned Value Analysis
5. Balanced Score Card
Required inputs:
Required inputs:
1. Analysis of deviations or variances
2. Analysis of their root causes
Main output:
• Deviation analysis regarding time, cost, quality, scope,
satisfaction level
• Issue log
Required activities:
• Decision on countermeasures
• Claim management
• Change management
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CULTURAL IMPACT ON PROJECT IMPLEMENTATION (1)
The application of the cultural gap analysis helps the project manager selecting adequate controlling and monitoring techniques.
It also raises his or her awareness regarding potential behavioural differences within the team in the implementation phase.
An important difference to keep in mind:
In task-oriented cultures, remote or virtual controlling usually works.
In relationship-oriented cultures, personal controlling and support is difficult to replace by remote controlling techniques.
The following two slides give a systematic overview of potential behavioural differences among project members in the execution phase.
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The higher the inclination to avoid risk, the more
likely it is that important decisions due to a changing
environment get delayed due to the fact that more
details are needed for decision making. If decisions
are avoided, plans cannot be modified, and
monitoring gets meaningless.
Embracing
risk Avoiding risk
Data collection and reporting: persons from
individualistic cultures tend to feel more comfortable
responding to non-anonymous interviews or
questionnaires for data collection. They also tend to
feel more comfortable with measurement of their
personal performance compared to team members
from collectivistic cultures.
Individual Group
Individuals from rather circumstantial cultures might
feel that it does not make sense to monitor and
revise ‘old’ plans. They might feel that it is sufficient
to adapt to changes when they come, without
documenting deviations from the original plan.
Universal Circumstan-
tial
CULTURAL IMPACT ON PROJECT IMPLEMENTATION (2)
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Project managers from achievement-oriented
cultures may tend to invest some time in monitoring
on a regular basis in order to counteract quickly.
More status-oriented project managers might spend
their time on presumably more rewarding activities
like politics or building networks.
Achievement Standing /
status
Prioritization of tasks under time constraints might be
difficult for individuals from synchronic cultures. Sequential Synchronic
Individuals from more pragmatic-orientated cultures
may prefer quick action and countermeasures over
thorough analysis of the cause of deviations from the
plan.
Theoretical Pragmatic
Task Relationship
Individuals from relationship-oriented cultures could
have difficulties in reporting issues or anything bad
in order not to ruin the relationship to the person
they are reporting to.
They may also need more direct physical follow-up
in terms of encouragement rather than virtual status
meetings.
CULTURAL IMPACT ON PROJECT IMPLEMENTATION (3)
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MONITORING TOOLS AND TECHNIQUES
Project monitoring: Data Collection:
Frequency count or nominal scale data.
Raw numbers or interval scale data.
Verbal characterization.
Documentation.
Reporting project information:
Routine reports.
Special analysis reports.
Exception reports.
Pre-requisite: Existence of relevant performance indicators, called Key Performance Indicators (KPI).
Areas to be monitored: ‘Hard’ facts: Time, cost, measurable quality.
‘Soft’ things: Goal commitment of project team and initial clarity of goals, establishment of clear communication, adequate project team capabilities, project culture.
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PARTICULARITIES OF MONITORING INTERNATIONAL PROJECTS
Tends to be more complex than monitoring standard projects.
Context plays a big role.
Reports need to be customized to expectation of recipients that may be culturally impacted.
Attention needs to be paid to developments within the project, but also outside of the project.
The monitoring matrix as depicted in the following slides helps with this task.
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Internal
Completion
1. Resources: time, cost
2. Productivity of human resources
(due to cultural diversity)
3. Quality
4. Scope
5. Delays of input from other projects
6. Support level from HQ/top
management
7. Efficiency and consistency of
business processes across locations
1. Executive management
2. Steering committee
3. Line managers
4. Heads of subsidiaries
5. Project team members
6. Users within organization
1. Customer
2. Suppliers
3. Subcontractors
4. Consultants
5. (International) users outside of
organization
1. Economic situation of the countries
the project operates in
2. Government regulations and
approvals (changes, delays)
3. Natural disasters or untypical
weather change
4. Technological problems like power
outages
More details see Chapter 4
Satisfaction
External
Monitor matrix for international projects
CONTROLLING TECHNIQUES (1)
Low tech controlling tools:
Traffic light system: Rather a visualization method than a generic control tool. Its effectiveness depends on underlying criteria (see example on next slide).
Due to its self-explanatory colour coding very suitable for international projects.
Milestone analysis: Review meetings are conducted around pre-defined milestones.
Important to have clear criteria to pass a milestone.
Approach is easy to use and easy to learn.
Can be combined with team-building events.
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Criteria for project status
light setting
Profitability
R&D costs
Milestone review
Specific project risks
Project resources
Red, if any of the criteria
is red.
Total project traffic
light status
Yellow, if any of the criteria is yellow.
Green, if all criteria is
green.
EXAMPLE OF TRAFFIC LIGHT TOOL
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CONTROLLING TECHNIQUES (2)
More complicated controlling tools:
Earned Value Analysis (EVA): Shows the relationship between variances in cost, schedule and project performance.
Suitable for controlling long-lasting, complex, international projects.
Earned value is the value expressed in a currency of the work accomplished at a certain point in time based upon the planned or budgeted value for the work.
Automation of control by the use of expert systems: Expert systems are IT based.
Input relies on traditional data collection methods.
Balanced Score Card (BSC): Apart from financial control, more intangible performance areas like customer’s satisfaction, internal business processes, and
learning and growth need to be monitored.
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Time
C o
s t
in T €
36 80
146
225
350
458
565
693
841
1.000
0
100
200
300
400
500
600
700
800
900
1.000
1.100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Planned cost in relation to
schedule
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Example of EVA Calculation (1)
Time
C o
s t
in T €
36 80
146
225
350
458
565
693
841
1.000
36
80
160
240
390
503
610
748
900
1.059
0
100
200
300
400
500
600
700
800
900
1.000
1.100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Planned
Actual
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Example of EVA Calculation (2)
0
100
200
300
400
500
600
Apr May Jun
AC = 503
Time
C o
s t
in T €
PC = 458
SVm
SV = 54 CV = -99
EV = 404
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Example of EVA Calculation (3)
MANAGING PLANNED AND UNPLANNED CHANGE
Detect variations from the plan:
Identifying of issues through context scanning (e.g. with monitoring matrix).
Entering the issue into a special forma called an issue log (see next slide).
Allocating resources to solving the issue.
Following up the progress of implementing change to solve the issue until completion.
Central version control:
Change requests of changes in progress need to be administered by a central database.
Transparency and accessibility of change data is important.
Claim management is a special form of change management.
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Issue Log
No. Date Description
Impact (in terms
of project
completion)
Suggested
solution
Responsible
person
Date of
comple-
tion
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Example of issue log
