06 Emcm5203 T2
06 Emcm5203 T2
06 Emcm5203 T2
2 International
Projects
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Describe the concept of strategy and strategic management;
2. Explain the relationship of projects with strategic management;
3. Discuss organisation culture and the culture that support effective
project management; and
4. Select the nature of management by project.
INTRODUCTION
In practice, success in projects and project portfolios is critical as it vastly
contributes to the success of organisations (Cooper, Edgett & Kleinschmidt,
2004). Drawing on theories and models of corporate culture, strategy and
organisational orientation; the importance of firm specific factors for positive
performance, concurrently considering the impact of cultural contexts on project
and project portfolios towards performance contribution is very critical (Unger,
Rank & Gemünden, 2014).
Additionally, with the recognition that most projects are managed ineffectively,
both practitioners and academicians for centuries have been examining a better
way to manage projects (Williams, 2005). In addition, the traditional approach on
accomplishing the time, budget and scope (or performance) goals is not adequate
to guarantee the achievement of organisational business objectives (Shenhar &
Dvir, 2007).
Increasingly, projects are the vehicle to create value and at same time, the
number of projects performed is often massive. Furthermore, projects are
recognised as being introduced to accomplish business results and organisational
goals (Turner, 2014). Achieving the organisational objectives and efficiency has
continuously and will always be imperative for project success.
Likewise, Ginsberg (2016) supported various opinions (such as Easterly & Pfutze
2008; Ife, 1995; Pieterse, 2009) central to project success, which is recognising that
many projects do not realise their full potential because the project framework
fails to identify critical contextual considerations in part or as whole.
Commonly, it is agreed that projects need to take the local context into account
(Crossley, 2010; Muriithi & Crawford, 2003). Equally, it is alarming that many
organisations however still fail to present correctly the project context. In
addition, they somehow exhibit project in isolation and deal with local context
separately and also removed from project planning process.
Accordingly, this topic focuses on the key areas in comprehending the context of
international project management as follows:
(a) Strategy and strategic management;
(b) Relationship of strategy with project;
(c) Organisational culture;
(d) Culture supporting effective project management; and
(e) Management by project.
Since then, within a given organisation, the focus has changed from analysis and
development of strategic competency or capability to concentrate more at aiming
towards obtaining competitive advantage. Nevertheless, whatever the focus of
organisational strategy, understanding exactly what the strategy consist of is
important.
Nevertheless, others may see strategy as a way of doing business, for positioning
an organisation and determining competitive differences from a prospective or
an emergent standpoint (Turner, 2014).
Now, let us briefly explore the various definitions of strategic management. First,
let us look at a definition by Digman (1990).
This obviously include adapting the organisation itself (through internal changes
such as shifting conditions and circumstances) to fit the external environment
(Moore, 2001).
ACTIVITY 2.1
1. Differentiate between strategy and strategic management.
Indeed, how can an organisation ensure that projects contribute to the realisation
of its mission and vision instead of towards failure? In this perspective, it is
therefore imperative to coordinate between strategy creation and approval of
projects. Grounded on the recognition that projects are initiated to achieve
business results, therefore the concept of project and strategic management thus
aids organisations, project teams, project managers and executives
focus project execution on achieving business results without discarding the
traditional mindset (Turner, 2014). Achieving the operational goals and efficiency
therefore, has always been and will continue to be vital for project success.
Modern organisation emphasise that project teams must be able to organise and
implement international projects, not just to achieve time and budget goals, but
more importantly creating customer satisfaction, and above all, accomplishing
the organisational business results. From this standpoint, the orientation or the
alignment between project objective and organisational goals are of utmost
importance. Collectively this alignment is a new emerging trend and is referred
to as „strategic project management‰ (Cleland, 1998; Shenhar, 2004).
Observing from this standpoint, projects are used by many organisations (public
and private companies) as an instrument of strategy. Unger et al. (2014) agrees
with this viewpoint that projects are the vehicle to create value, while having a
great number of projects performed simultaneously. Additionally in this context,
many forces can drive a project in an organisation.
Yet, depending on the nature and type of organisation, these possible forces for
project creation varies. It can be due to current market demand, process change
in manufacturing, meeting external business needs, new research and
development product, competition for competitive advantage or even other
needs to satisfy requirement or changes internally.
Keep in mind that it is important not only to analyse and diagnose existing
organisational culture, but also to examine its setting, background and outcomes,
as this may allow more conscious and deliberate shaping of the future culture.
SELF-CHECK 2.1
1. Describe the relationship between projects and strategy.
2. Explain briefly what are the possible forces that drive projects in
an international context.
According to Liu, Meng and Fellows (2015), cultural influence in projects are
unavoidable and a clear understanding of it is vital for successful project
management.
In fact, one of the most important factors that influence the success of an
international project is the internal environment of the organisation itself. The
way the people behave in an organisation, together with the goals they set and
the manner they treat their customer are shaped by forces within the
organisation. All of which and together with the organisational members will
have a special set of values and attitudes that influence all levels of the
organisation.
Yet, according to Karlsen (2011), many literature stress that the term is difficult to
define. Moreover, it is a comprehensive multi-dimensional subject which can
have a range of meanings (Morrison, Brown & Smit, 2006).
In this view, the key feature here is that culture is presented to new
organisational members as the correct way to behave, thus spreading
organisational survival and growth. Culture too can be seen as the shared
patterns of fundamental assumptions (such as human nature, social interaction
and perceptions of the environment) prevailing within an organisation (Schein,
2010). However, a more simple definition is the way things are done in a certain
organisation, an example being „the Nokia way‰.
Such description according to Hu, Chen and Zhu (2011) is applicable to both
national and organisational levels. Karlsen (2011) further stressed that there are
three levels of culture that can influence the management of projects – national,
organisational and individual. This perspective is also supported by Ajmal and
Koskinen (2008) who stated that culture exists at various levels in the
organisation and is manifested in virtually all aspects of organisational life.
Level Description
Artefacts Refers to visible organisational structures and processes. In any project
environment, it can be the project logos, language, special terms for
milestones, ethical codes for project procurement guidelines, project
structure, the authority levels of project manager, project team members
and so on.
Espoused These values are the organisational goals, strategies and philosophies
values that are not necessary based on basic assumptions of the workforce. In
project environment, the project management standards can be artefact
based on espoused values, if it is documented (visible) even though not
implemented.
Basic The basic underlying assumptions are unconscious beliefs that are taken
underlying for granted such as perceptions and feelings. Ultimately, the
assumptions assumptions become the source of action in the organisation.
In an international project context, the basic core assumptions can differ greatly
between geographically dispersed organisational entities. This is due mainly by
the influence of national culture values. Examples of these basic underlying
assumptions are open mindedness, autonomous working style, accountability or
valuing diversity.
Simply put, these elements of organisation culture entail visible and invisible, as
well as conscious and unconscious. However, based on experience, the
unconscious and invisible core assumptions are most difficult to manage and
change.
SELF-CHECK 2.2
1. Define culture in the context of project management.
In this premise, how can the organisational cultures be captured in more detail?
As mentioned, there are numerous models that can be used to classify cultures
(Karlsen, 2011; Kimbrough & Componation, 2009). Looking from an international
project management context, the Cartwright and McCarthy (2005) model is more
appropriate although it emerged from the context of project acquisitions and
mergers. The Cartwright and McCarthy (2005) model has five organisational
dimensions as depicted in Figure 2.4.
Dimension Description
Degree of internal Refers to the intensity of internal integration within the internal
integration project environment. It extends the internal relationships within
the organisation with respect to cooperation and coordination.
This includes sharing of information and ideas, achievement of
common objectives and goals supported.
Autonomy and This involves individuals on how much authorities are given and
involvement the freedom in exercising control. It touches the organisational
membersÊ degree of authority to make decisions concerning the
way they perform work. In the case of international projects,
project manager and team need sufficient autonomy to react
flexibly to changing circumstances and sufficient authority to
decide on resource allocation as well as performance rewards.
Figure 2.5: Concept of fit between the internal organisation and external environmental
Source: Thomas and Mullaly (2009)
According to Thomas and Mullaly (2009), the design of an organisation and its
subsystems must „fit‰ with the environment that an organisation functions. It is
more effective when its design and management style are appropriate to both the
tasks undertaken and the environment of the organisation accordingly.
SELF-CHECK 2.3
1. Briefly discuss the five dimensions of organisational culture that
support effective project management.
Source Viewpoint
Anderson (2003) Stresses that projects without strategic direction from
permanent organisations usually show poor performance or end
up with failure.
Thiry (2007) Validates that there is a collaborative relationship between
project management practise and organisational practise in
project-based organisations (PBOs).
Turner Offers a perspective that governance structures and operational
(1991; 2001) control in PBOs need to vary according to the difference of
projects and further propose different governance models for
PBOs.
Audry (2007); Present PMOs are part of a network of complex relations that
Hobbs (2008) links strategy, project and structures and thus is a point of entry
to foundation of organisational project management.
In light of MBP, many organisations recently stressed the need to further develop
towards a fully projectised structure, which goes beyond a simple portfolio
approach and involves the management of strategic decisions through
programmes (Ren, Yeo & Ren, 2014).
With this move, it has somewhat shifted the responsibilities and decision-making
roles whereby several projects need to be managed together in order to create
synergies and deliver benefits to the organisation rather than delivering a specific
product or service in isolation.
Internal integration;
Diversity.
Copyright © Open University Malaysia (OUM)
TOPIC 2 CONTEXT OF INTERNATIONAL PROJECTS 53
• Concept of fit states that the design of an organisation and its subsystems
must „fit‰ with the environment that an organisation functions.
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