Managing projects successfully spells substantial benefits for companies. Successful project management drives results and transforms an organisation at every level: this includes quality, productivity, efficiency, risk and return on investment. To manage projects successfully in Asia, one has to understand the region's unique cultural traits and how to deal with them.
Project issues in Asia
Regardless of the sector they are working in, project managers share common cultural conflicts and issues when delivering projects in Asian countries. Some of these include conflict and resolution, team motivation and negotiation.
1. Authority
Most Asians, in particular East and Southeast Asians, are more receptive to authoritative figures. They expect their project managers to be decisive, firm and assertive. Project managers should carefully observe the indirect ways in which people express their discontent and try to achieve a balance between the authoritative and participative management styles. Having recognised credentials is one way to do that. Certifications not only help project managers gain trust and respect from their fellow colleagues, but also allow project managers to keep their organisation and planning skills up to date.
2. Conflict and resolution
A common cultural trait amongst Asians is the avoidance of conflicts. Conflicts are usually seen as negative and emphasis is placed on maintaining a harmonious relationship. Conflicts are hence best resolved through compromise. Asians tend to avoid confrontation and prefer to maintain good relationships even when resolving conflicts. It is advisable to adopt a softer or less confrontational approach when handling disagreements.
Asians also have a low trust level with people considered outside of their ‘in-group'. A project manager, even a local, is usually considered as an outsider because of his or her seniority level. An outsider often receives far less information than an in-group person because of the trust placed on that person. His or her ideas and behaviours will be viewed with skepticism and distrust, hence making project management more difficult.
3. Team motivation
Language
Asia has more than 10 major languages and countless local dialects. A project manager needs to deal with the issue of language and open communication while managing people. Difficulty in communication with project team members or customers in their local language can have a negative impact on the outcome of a project.
Open communication
In a project setting, open communication amongst stakeholders is important to the project's success. The more candid communication is between all parties, the earlier problems can be identified and resolved, and a higher trust level and morale built amongst all parties. The only way to cultivate a candid and open communication environment is to build trust within the team, specifically between team members and the project manager. This requires the project manager to participate in team activities more frequently, adapt to the local culture and customs and encourage different opinions during meetings.
A project manager not only needs to be alert to the progress of the project, but also has to be an effective communicator between the client and the contractor. One of the projects I came across involved a Hong Kong-based interior design company which hired a Korean site supervisor on behalf of their European client to coordinate and supervise a project in Korea. The supervisor was to oversee the project and the performance of the prime contractor, a Korean company. Halfway into the project, problems arose. Amidst them, the supervisor found that the construction material was not delivered on time due to payment disputes and quality issues. However, instead of reporting them to their client in Hong Kong, the supervisor turned a blind eye.
In this case, the Hong Kong company was seen as an outsider. When disputes surfaced, local parties colluded to protect their in-group members. Subsequently, a project manager from Hong Kong was sent to Korea for two months. She acted as a communicator between the client and the prime contractor while monitoring the performance of the contractor on behalf of her company. Finally, performance started to improve and the project was completed to the satisfaction of the client, albeit two months late.
Motivation
To motivate a team, the project manager needs to show respect to the local people. One should try to become part of the in-group and cultivate an environment of trust and open communication.
In general, Asians are concerned about job security and monetary rewards. Education and training can be a strong motivating factor for most people especially amongst younger members of the team. Project managers can organise cross-country training and development programmes which not only serve as a motivation, but help to increase intercultural understanding amongst team members.
4. Negotiation
Asians are generally thought to be more tolerant of ambiguity. They sometimes even prefer to leave an issue unresolved during a negotiation. On top of that, they are also tough bargainers. Frontline negotiations are characterised by: (1) usually being a long process; (2) the patience and skills it takes to reconcile two languages into a contract and (3) the concern about their pride.
The principle-based negotiation strategy which serves to achieve a win-win situation for both parties may not always work, as pride is an emotional factor which can get irrational at times. Instead, relationship can be built on informal and social sessions such as a dinner. ‘Offline lobbying' sometimes can get a negotiation out of an impasse.
5. Other Potential Issues
Payment
Part of the business culture in certain East Asian countries is to postpone payment to vendors. In the Greater China region, this is a major problem for project managers. After a project has been completed, it may take a long time to settle payment. A project manager may still need to work with the customer on payment issues even though the project has already been officially closed.
Etiquette
One has to carefully observe all etiquettes on his or her first visit to a new city or country to avoid creating a poor impression amongst local stakeholders. For example, a Japanese or Korean manager visiting Singapore needs to be aware that it is a much less smoker-friendly country than their home counties.
Understanding cultural diversity is essential in managing projects in this region. It provides project managers with useful insights that help identify appropriate measures to prevent or address problems arising from issues on authority, conflict and resolution, team motivation and negotiation. A project manager will be able to motivate the project team and avoid unnecessary conflicts if he or she addresses the issue of cultural diversity. However, it is only one of the factors contributing to success of a project. It is also imperative for project managers to continuously learn and upgrade their project management skills.
A US company procuring telecommunication bandwidth in China
A US Telecom was building a regional Virtual Private Network (VPN) for an international client in the late 1990s. The project was managed by two project managers from US and Hong Kong and was supported by local teams across Asia. The network, which made used of a public network to connect remote users in distant offices required local bandwidth in several Chinese cities. The local project team went through the normal application process and was told that the circuits would be ready in three months. One month later, one of the local telecoms told the project team that due to demand upsurge, new cables will need to be installed. Circuits would only be available after six months.
Analysis
The project team immediately assessed the situation and even considered if the local telecoms was deliberately causing the problem. The project team worked on a backup plan based on a redesign of the network and tried to understand what indeed happened.
Solution
They then tried to work out a scheme that will push the Chinese telecom to re-prioritise their request.
Getting a favour through relationships was dismissed even though the US Telecom enjoyed an excellent rapport with the local telecom. They understood that as a US Telecom, they were not an in-group member.
The final solution was to set up a meeting between the senior managers from the US the local telecom in China. By doing so, the US Telecom showed respect to the local telecom. In the meeting, the US managers emphasised the importance of the project to their business and the Chinese city and pleaded the local telecom to support them. After the meeting, they had dinner and proceed to other social activities. Two weeks later, they were informed that the circuit would be available as per the original schedule.
Conclusion
This case study is an excellent demonstration of how understanding cultural differences can be useful in deriving the best solutions for problems that occur during negotiations. Understanding the importance of respecting their counterparts and recognition of themselves as outsiders helped the US telecom identify the most effective solution: showing the other party respect or ‘face' by bringing in senior managers and building relationships through informal sessions.
Kevin Chui
Vice President (Hong Kong)
Project Management Institute
http://www.pmi.org/
