Project Management: Environmental Factors -- Effect on Project Implementation


How do environmental factors come affect project implementation?

Environmental factors come in the following varieties:

- Legal/Political: Is the country in which the project is being implemented politically stable? What kind of government controls are imposed on projects? Do government officials have to be “compensated” to win their approval? (Often a situation in third-world countries. “Bribery”, in the Western connotation of the word is also common in China). What are the ecological laws – how will hazardous materials be handled – what are the pollution standards? What is the crime rate of the country? Are there threats from extremists or terrorist groups? This could be an issue if, say, an American company were to implement a project in Libya or Afghanistan.
- Geography/Climate: Implementing a construction project in the jungles of S. America could be a grueling task for all project participants. The Panama Canal was a good example of a project that demonstrated the difficulties of working in adverse conditions. Indeed, many individuals became ill or lost their lives due to exhaustion or malaria. Today, projects implemented in harsh geographies or climates entail high cost and complex planning. Geographical conditions can have an indirect impact on project members. Imagine working in Alaska during the summer: a time when there is 20 hours of daylight. A “southerner” not used to these conditions may find it difficult to sleep well – this could impact the project as loss of sleep may affect performance.
- Economic: In the country in which the project is being implemented, what is the GDP? Is the economy faltering? If so, there may be fewer sources of capital funding. Other factors such as balance of payments, currency fluctuations, exchange rate, hyperinflation, population growth, education level of the workforce and market size can influence project choices and operations. The hyperinflation of the late 1990’s in SE Asia is an example of a time not good for foreign project investment. However, China is ripe for projects as their economy is growing at a steady rate, partially due to an educated workforce. India, although a third-world country, holds a surplus of skilled, low-wage workers. Especially attractive to Western interests are its ever-growing share of computer programmers. Microsoft implements many programming projects in India to capitalize on the low-wage factor.
- Infrastructure: Can the country provide the required services to complete the project? For example, a heavy-industry project needs a great deal of electrical power and a good transportation system (to provide a steady, reliable source of raw materials). Telecommunications or software projects need dependable telecommunication networks. Other “indirect” infrastructure items may be schools for project team members’ children to attend.
- Culture: Possible the biggest hurdle that PM’s face when working in a foreign country. Differences in language, religions, philosophies, or ethical/moral differences can – if not well prepared for – impair or ruin a project. For example, when it comes to dealing with a foreign language, there are many idioms or idiosyncrasies that native speakers use (and take for granted). If a foreign PM is unfamiliar with these semantics, he/she may not be able to negotiate effectively. Religious unfamiliarity may also present problems. For example, a female PM working in a Middle Eastern (Islamic) country will need to cover her head and her body above her ankles. To do so otherwise is considered disrespectful and vulgar.


Why is it important to honor the customs and traditions of a country when working on an international project?

Honoring the customs and traditions is a way of showing respect. In order to gain respect and cooperation of others, one must demonstrate it his or herself. This can sometimes mean sacrificing one’s own principles and traditions. In many cultures, this act of sacrificing is also a viewed as an honorable gesture. Also, learning to adapt to working amongst others of different and cultural background only increases the individual’s skills in dealing in cross-cultural environments. For example, working traditions in Mexico can conflict with the traditions followed in the US. A US project manager may find their “open-ended” schedules a dramatic change from the very strict and timely project schedules we are used to in his home country. However, concentrating on human relationships rather than timely schedules is the tradition in Mexico. If the US PM were to push for a stricter schedule, he/she may be perceived by the Mexicans as being cold and ineffective to work with. A PM must be able to shift paradigms.

What is culture shock? What can you do to reduce the negative effects of culture shock?

Culture shock is a “natural psychological disorientation” that many people experience when going to work in a different culture
How much an individual is "shocked" depends upon how different the country is in which the project is being implemented. For example, if an American PM was asked to lead a project in the UK, he/she may not have much adapting (shock) to deal with. The language, religion and culture are all very similar there. Having spoken with some British individuals, they tell me that people from the UK identify themselves more with the US than their native continent, Europe. The same situation holds for Americans working in Australia or New Zealand. However, the degree of culture shock is many times higher if one is being transposed to a culture very different than in the US. Take for example, tackling a project in China. First there is the language barrier. Then, there are vast differences in religion, philosophy, politics, food, and interpersonal relationships. All of these traditions have to accepted or, at least tolerated, to one degree or another in a relatively short period of time. Culture shock comes from "a breakdown in your selective perception and effective interpretation system." An individual or a team is thrust into a situation where one's pre-established norms don't apply (again, the degree of this depends on the country). It may be a sink or swim situation. Therefore, adequate cross-cultural TRAINING, prior to taking on the assignment, is essential.

Culture shock has four stages:

- Honeymoon: Start of the assignment in the foreign culture. This tends to be a time of excitement.
- Irritability/hostility: The initial excitement is gone; differences seem greater than expected; this could include differences in language, politics, food, etc. This is a frustrating time – perhaps accompanied with a loss of confidence.
- Gradual adjustment: Isolation and irritability is gradually reduced. One tends to gain a new perspective on things.
- Adaptation: Most of the sense of disorientation is gone. One starts to feel fairly comfortable in the new culture.

Some ways to manage Culture shock:

- Regular, physical exercise
- Healthy diet
- Meditation
- Create “stability zones”. These could include things that remind one of home, such as listening to your favorite CDs, watching American TV or movies (if available), talking to family and friends on the phone, or going to an American restaurant.

How should you go about preparing yourself for an international project?

Preparation should be done with an adequate amount of cross-cultural TRAINING, prior to taking on the assignment. The amount of training usually depends on: (1) the length of stay in the foreign culture; (2) how “foreign” the culture is. More advice::

"Information-giving Approach" (stay less than 1 month):
- Area briefings
- Cultural briefings
- Watching foreign movies/books
- Use of interpreters
- “Survival-level” language training

“Affective Approach” (stay is 1-4 weeks):
- Culture assimilator training
- Role Playing
- Cases
- Culture shock reduction training
- Moderate language training

"Experiential Approach" (stay is 1-3 years):
- Assessment center
- Field experience
- Simulations
- Extensive language training

The training topics should include: language, religion, dress codes, education systems, holidays (national/religious), food and eating schedules, family life, business protocols, social etiquette and equal opportunity. The training format may vary from videos, books and seminars to actual field pre-experience in the foreign land. In addition, I think it is very important to associate with people from that country (if no actual field experience is possible). If there are no representatives from that culture/country at the organization where one works, it is possible to go the local university and seek out members from that culture. There are usually international organizations or coffee houses on campus that international students participate in. This type of interaction, I feel, gives a perspective second only to actually visiting the country.

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