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Business Issues
 
Business Issues
Introduction
Business issues are
those that impact the project and are based in business units. Since all
international and regional projects interact with business processes and
departments, business issues are often the ones that undermine the project.
Business issues are some of the more intractable issues since they are often
strongly rooted in the culture of the areas involved. For example, many IT
projects involved with rolling out systems run afoul of business issues.
Issues
Issue: The
International Project Requires Critical People In A Country
This is often inevitable. Traditional project management has
for over 50 years emphasized getting the best and most critical people on the
team. In general, this has led to the failure of many international projects.
There is a need for people with critical skills and knowledge at certain points
in the project, but this need does not extend across the entire project.
Impact
When you take a critical
person from their regular work and put them into project, you do harm in many
ways. First, the department from whence they came is weakened. The department
must find a substitute—often impossible. Second, the person may be assigned to
the team, but they are pulled off of the project when emergencies or important
work arises. Third, they are subjected to many interruptions. Fourth, they
derive their power and influence from the status quo. The results of the project
may change their importance and weaken it. They are likely to be not as
supportive of the project.
Prevention
What do you do? Aim to get people who have some knowledge
and experience, but who are eager to participate in the project. Taking these
people away will have less impact on the departments. Another step is to have
some turnover in the team so that the project is not overly dependent upon one
person.
Action
If you have a critical person on the team, then you should
assign joint tasks with others. That will protect the project in case they have
to leave the project. Another action to take is to restrict which tasks they
work on. If you cut down on the tasks, then you can get them back to their home
departments sooner.
Issue: The
Infrastructure In A Country Is Very Poor
This is not just true of emerging nations. It is also true
of some developed countries since the infrastructure often deteriorates the
further you get from major cities. People often assume infrastructure issues
away in the twenty-first century. This is not a good idea. Infrastructure is
even more important today. Poor infrastructure has an impact on expectations and
what people view as feasible. In some parts of India, for example, the
communications are very primitive. Carrying out a project can be very
challenging—even if you employ satellite telephones.
Impact
Some of the impacts have already been pointed out. One
impact is that logistics support for a project may be seriously underestimated.
Another impact is project communications may have to be very limited. In one
project in the jungles of southeast Asia this was such a bad situation that the
old approach of delegation of authority was used. The manager then left the
jungle to report on the project at periodic intervals.
Prevention
An analysis of the
infrastructure is very important at the start of the project. The experience of
the French and Americans in VietNam point out the importance of this assessment.
Contingency plans also need to be established.
Action
An ongoing assessment of infrastructure problems and their
impacts should be part of most international projects. There can be improvements
as well as deterioration. There can be safety considerations that arise, for
example. Consider creating an infrastructure score card in which you assess the
infrastructure elements that are relevant to the project in each country.
Issue: The Business
Needs Are Diverse In Each Country For The Project
While the project may benefit the company or organization
overall, there should be local benefits as well. Each location has its own
business needs and concerns. If a project does not address or even acknowledge
these needs, then the project will often be seen as negative since it robs
resources from dealing with local needs. The project is perceived as an
unwelcome diversion. Each location has its own needs. You should not generalize
based on one location.
Impact
Ignoring local needs sets the stage for trouble in the
project. It will be more difficult to obtain resources. Management in the
location will be resistant to the project. They and their employees see the
project as just another example of headquarters bullying around the offices.
While you cannot have true democracy, you can at least acknowledge local needs.
Prevention
If you want to get people on your side, then you should
determine the needs and issues of each location in which the project will be
undertaken. Try to map these needs into the project. It may be necessary
politically to carry out other projects that provide benefits for specific
locations. This will certainly gain more support.
Action
You find that this
problem often arises when people are removed from the project. They are pulled
off to deal with local problems. Management often reacts by coming down hard on
the managers in the location. This is counterproductive and just raises
hostility. Instead, you must work to understand the local issues and see how the
project can minimize the impact of the project on them.
Issue: The Project
Depends Upon Vendors Who Do Not Have A Strong Presence In Some Locations
A vendor or supplier wants to get work. They often state how
they have offices and customers in various locations. Potential customers often
accept this as a fact. Only later do they find out that the supplier presence in
some of the locations is marginal at best. In one case, a vendor claimed that
maintenance was available in all 10 countries that the project was going to be
implemented in. This turned out to be false. They really only had a presence in
6 of the countries. In the other 4, there was only a sales office. The vendor
then had to fly people in from other locations to provide support. Needless to
say, the costs were higher and the time to do repairs longer.
Impact
Everyone wants to believe what people tell them. This is the
case with vendor claims and statements. If a vendor fails to provide adequate
support in one or more locations, the schedule and cost of the project are
impacted.
Prevention
You want to determine if this is a problem at the start of
the project. For the finalist group of vendors, have the managers in each
location carry out an assessment of vendor support in their country. In
addition, have each potential vendor identify customers in each location. These
can be contacted.
Action
If a vendor fails to perform in one location, treat it as a
general problem. This is the principle of “An attack on one is an attack on
all.” If you don’t treat it seriously, then the vendor may think that it is not
important. Point out to the vendor that they cannot make up for it by increased
support in other locations. Press the vendor to develop an action plan to deal
with the problem. Have the local management report on vendor progress.
Issue: There Is No
Provision To Address Problems And Issues In Countries As They Arise
In many projects the project leader identifies and tracks
problems that impact the project. However, if the project work is going on in
several locations, it becomes more difficult and complex to determine the
relevant issues in each location. Some project leaders may not treat an issue as
significant if it only affects one location.
Impact
During the course of a project, many issues and problems
arise. Some of these occur within the project itself and so are more easily
recognizable. Others occur in other departments or externally in one location.
The project leader may not be geared up to find these and figure out what to do.
The project leader may not have the experience or skills to recognize the
potential impact on the project. The result is that the project team may be hit
“blind-sided” and not be aware.
Prevention
At the start of the project it is important to identify
local issues and problems that exist. Work to discover issues that may on the
surface bear no relation to the project. Then you need to actively track these
and uncover new issues as time goes on. Seek input from local management on the
importance of an issue.
Action
If you find an issue that catches you by surprise, you must
do several things. First, you can work to deal with the issue. Second, you
should immediately determine what local issues are present in each location.
Present to management an expanded list of issues.
Issue: There Is A
Wide Variety Of Business Processes In Different Countries
A business process is a
business process, right? Yes and no. While many processes that do the same thing
are similar, they are not likely to be identical. Take an office products
supplier in Asia. They were directed by their parent firm to implement an ERP
system. The system selected was quite rigid. When the system was analyzed, it
was determined that there were differences in almost all processes supported by
the ERP. As an example, the ERP does not allow products to be shipped to
customers without the proper paperwork and transactions. In this country the
paperwork always follows the shipping since there is a history of trust and
confidence. In the end the ERP could not be installed—but not before over US$ 1
million was wasted!
Impact
If you don’t pay attention to the unique way transactions
are carried out in various countries, then the project may be implementing
solutions that will not fit in the specific country. The results of the project
may never be able to be used. Rather than fight with headquarters, many local
managers will try their best and then eventually give up. They do not want to be
perceived as negative. The project is successful, but the results of the project
fail. Overall, the result is failure.
Prevention
It is necessary to identify which business processes will be
touched by a project. Then you can undertake to have each location conduct an
assessment of the processes in their location. This will surface a number of
problems and issues to be addressed. Do not stay at the level of a general
business process. Instead, get down to the level of specific transactions.
Action
If you find that a business process issue arises, you should
have the specific location examine the other processes that are touched by the
project. You should have someone independent of the team do an assessment of the
business processes as they will be impartial. They may also uncover ways to get
around the problems without changing the project in a major way.
Issue: Problems In
One Country Are Not Seen As Sufficiently Important In Headquarters
Each location has individual problems and situations.
Management at headquarters may not want to hear about these things. They rely on
the managers put in place in the location to deal with the situations. This was
the only way centuries ago when communications were poor. Remote managers and
governors were given wide discretion on what to do. The problem is exacerbated
by local managers who want to get promoted and so tend to push local problems
“under the rug” if they cannot deal with them.
Impact
Many very large problems
start out as simple issues at the local level. There could be a small chemical
leak or a problem with employee security. Then it turns out that the problem
expands. This was the case with the renegade employee at the trading firm in
Asia who caused the parent company in Europe to go under. The signs were fairly
plain to see locally, but went unreported.
Prevention
Independent of the projects going on, management at
headquarters must make the effort to be informed of local issues and problems.
Managers at various locations should be encouraged, not discouraged, to present
problems. This often is a major culture problem in companies. It requires a
degree of openness that is not common or inherent in the culture of the firm.
Action
When a problem surfaces, it is often treated as unique. This
is not the proper course of action. When you kill one termite, you can assume
that there are many others. Here it is the same. You should institute an effort
to uncover local issues. You should visit the locations and work with Human
Resources to encourage people to come forward with problems and situations.
Issue: It Is Taking
Too Long To Have Decisions Made
Suppose you have an international project that is based at
headquarters. The project leaders are there as well. So you would think that if
the project leader required a decision on a situation, it would be
straightforward. This is often not the case. Discussing and dealing with the
situation may require a great deal of coordination with several locations. There
may be many managers involved. All of these factors tend to stretch out
decision-making.
Impact
Delayed decisions have
the obvious impacts on a project in terms of work. However, there are additional
side effects. First, people may infer that management must not care about the
project. Otherwise, they would have made decisions. Second, some may feel that
the problems must be so important that the project work should be stopped until
there is resolution. In all of these the project suffers.
Prevention
A defined method for generating decisions should be
established at the start of the project by the project leader. The project
leader should then test out this method by surfacing an issue. Informal methods
of communication need to be set up and tested as well. Management should be kept
informed of issues before they become serious.
Action
If a decision is being delayed, then the project leader
should work informally to determine what the problem is. It is possible that the
issue is perceived to be bigger in scope than what the project needs to have
addressed. An effort should be made to restrict the scope of the decision
required to get action. It does little good to raise panic about the project.
Then managers will question the project leader’s abilities.
Issue: There Is
Substantial Turnover Of Staff In One Location
In one project we were involved with there were 4 countries
involved. There was virtually no turnover in 2 countries. There was some
turnover (about 25%) in another. However, in the fourth there was over 50%
turnover. This was due to the labor market in the area. It was also due to weak
local management.
Employees were really turned off. The project could not address
the local management problem except to bring this to management’s attention. The
approach was to construct the project so that the work in the country was of
very limited scope. Work was transferred to other locations.
Impact
The direct impact of turnover is to create a shortage of
resources to the project. Knowledge is lost. Experience is lost. The project
work in the location can grind to a halt.
Prevention
Before starting the
project carry out a review of the management and employee turnover in the
locations of the project. If you find one problem location, then you need to
carefully consider what work is assigned to the location. When you organize the
project in the location, you should mete sure most tasks are jointly performed.
This will give you backup in the event of loss of staff. You should institute
short tasks and milestones.
Action
If you find that there is a turnover problem, then you
should go to the location and start managing it directly. Hands-on management
can give you more information. It also reveals to the employees how important
their involvement in the project is. Another step is to reorganize the work in
the project there along the lines discussed above.
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