The boom in the popularity of online resources isn’t confined to the consumer world - the scope for business opportunities is endless, and they aren’t restricted by international borders or time zones. For project-based organisations that manage many large assignments around the world at the same time, and where the skills of the different employees is one of its greatest assets, it is very important that the entire team can work as one, whether they are based on desks next to each other or on different continents.
We really do live in a virtual world. Shopping on the internet is as normal as going to the high street; online networking site FaceBook has 24 million subscribers; web-based dating agencies are more popular than their real-world equivalent; and companies including Nissan and Vodafone have a presence in the virtual world Second Life.
The boom in the popularity of online resources isn’t confined to the consumer world - the scope for business opportunities is endless, and they aren’t restricted by international borders or time zones. For project-based organisations that manage many large assignments around the world at the same time, and where the skills of the different employees is one of its greatest assets, it is very important that the entire team can work as one, whether they are based on desks next to each other or on different continents.
However, if the company is to be successful, it has got to manage the risks that come with globalisation, that far exceed those of projects based in just one location.
Some of the challenges are obvious: as any London-based practitioner knows, communicating with colleagues based in Sydney requires careful juggling of the time difference. And if the colleague is in Tokyo, then there’s the language barrier to be managed as well.
But these challenges are actually relatively superficial and shouldn’t detract organisations from the more fundamental differences that need to be addressed. The reason that some Britons and Americans occasionally acknowledge that they are divided by a common language is that the words represent a different way of thinking, a different culture, and a different approach.
As if that isn’t hard enough, business law also varies between countries, as do cultural attitudes towards a variety of business-related issues – from working lunches to organising credit - that need to be recognised and managed.
Take two very specific examples: Brazil, whose economy is developing quickly along with China, Russia and India, has a very complicated way of withholding tax, that doesn’t fit with the standard US/UK model of the purchasing cycle. In Europe, Germany’s works councils are often likened to the UK’s trades unions, but their position is much more firmly entrenched at senior level within a company. For organisations trying to manage one team based in many different countries, coping with these nuances alongside day to day practicalities is a real challenge.
The diverse ways of working and cultural attitudes across global teams need to be managed carefully, especially if they are compounded with the use of different systems, processes and technology in each region. If companies have not previously worked internationally, and therefore haven’t needed consistency with reporting, or if they have grown quickly for example through mergers or acquisitions, standardising ways of working can be difficult, and can add a significant element of risk into the project.
However, it isn’t just a case of rolling out new technology and dictating how it should be used, or what processes and methodologies should be put in place. Uniformity isn’t necessarily always the right solution. Consultancy-based businesses depend on the skills of different employees who can bring individual characteristics, talents and approaches to each task. How do you ensure that these individuals buy in to a global methodology that, by its very definition, seems to downplay their uniqueness? How do you explain to a workforce: you are no longer different?
For management consultants the key is to take the skills they so often use on projects for clients – those of communication and change management – and refocus them internally to ensure everyone understands what is happening and why.
Nonetheless, even the most meticulous plan can fail if it isn’t communicated to the right people. The intricacies of managing a global project should never be under-estimated, and it requires experienced project managers who are capable of building solid teams across the various regions.
For companies that are defined by the quality of their human capital, and whose success is dependent on the talents of individual employees, hiring and retaining key personnel has always been critical – whether working on a global or local basis. But whereas the success of any project will ultimately be determined by the quality of the people undertaking it, to ask them to work without the right support tools places a considerable burden on their shoulders and will almost certainly deny them the opportunity to demonstrate their talents to the full.
This is why most organisations have also adopted a formal methodology - a clearly defined, proven process for managing tasks. This ensures that all parties are speaking the same language, even if it’s not in the same tongue, and enables projects to be measured in the same way. The true implications of reaching, or missing, certain milestones become clear to all involved, as do the options for future project development.
Although it might, at first, appear dictatorial, a defined methodology actually frees consultants from all the details of managing a project; channels experience and lessons learned from previous jobs; and removes the need to re-invent the wheel every time. Instead the focus can return to the bigger picture of project delivery and service excellence.
But if methodologies distil the organisation’s acquired knowledge and experience, then technology is needed to hold that information and make it accessible in real time to those that need it. This can be quite a big task, and there is no shortage of tools that can manage off at least part of the process: time and financial management; expense management; or CRM for example.
However, while this may help to improve service delivery of an individual job, it doesn’t add much value to the wider organisation, or support the ongoing development of its methodology.
Ideally, the chosen product needs to be able to handle all these areas, from the accounting and finance functions, to the details of individual assignments. It needs to allow immediate and up-to-date access to financial data, time and resource planning, as well as information on the current status of a project, as well as providing a time-to-complete status. This will enable the organisation to calculate work in progress accurately, avoiding boom and bust profitability reporting. In other words, effective tools reduce the level of effort required to manage planning, cash and business fluidity.
This is something that disparate software solutions working independently of each other, as so many do, simply cannot achieve – especially if they are trying to collaborate internationally. Instead managing these projects will continue to be time-consuming, prone to error, and unable to support either established processes or talented people.
They key to success, therefore, is complete integration. These tools are bigger than basic project management systems or amalgamated functions; instead they are a form of ERP that is specifically designed for companies that provide professional services.
If consultancies are trying to run international projects, they need to turn their ad hoc processes into proven methodologies, based on a solid infrastructure and technology that has the flexibility to allow key consultants to work in a way that suits their particular skills. This will ensure that wherever consultants are in the world, the organisation maintains control and visibility of all projects, at all times.
