Organizing Overseas Teams

Hi, I’m Zacharias Beckman, president of Hyrax International. When it comes to coordinating international projects, one of biggest challenges we hear about is staying on top of the project.

As an international project manager, you have to know how to stay organized, and you need to know what your team is doing. When you have several different teams, all spread around the world, that’s not always easy. You also need to make sure that one of your teams isn’t being held up, waiting on another team.

This is what Tanya ran into, at one of our clients. She had been managing a U.S.-based team. Her company had just bought a smaller firm in India, intending to set up a “follow the sun” strategy. With teams in the U.S. and India, they could move faster because one team would hand off work, at the end of the day, to their overseas counterparts.

But there was a problem. After a few months efficiency was falling, not improving. Tanya found that the teams were poorly coordinated, and more often than not one would end up waiting on the other one. Tanya needed to change her strategy to accommodate a global team. She had to refocus, and figure out how to get these teams collaborating smoothly despite a separation of over 10 hours.

She made two major changes, both of which focused on improving coordination.

She took a critical look at their project management system, and decided that it wasn’t up to the job. It had worked great when everyone was in one office. But now it had to deliver a new level of coordination. She needed something that could better drive the process, improve visibility to her management team, and show dependencies between team members. It was absolutely critical that everyone know, at any time, who was waiting on them. They also needed better requirements management, and better collaboration tools. Her new system gave them the tools, but it couldn’t solve the communication issues on its own.

Tanya also changed the team schedule, setting up short, collective meetings every day. To avoid burdening one team, she set a rotating schedule: meetings where held at 9am in the US twice a week, and 7pm twice a week, with no meeting on Friday. Team members had to join at least two meetings each week, but it was up to them to pick which ones.

Tanya’s changes showed almost immediate results. The teams became more coordinated, and situations where one team was held up waiting for another pretty much vanished.

In a multinational organization, it’s important to remember that remote teams can feel like they are in a vacuum, lacking communication or cut off. To compensate, a good manager has to be extra vigilant and put in good processes, and good tools, and also make sure that no one team becomes the favorite. Tanya spread the meetings out to share the burden of after hours meetings. By doing so, she also sent the message that both teams are equally important.

Don’t Use Basecamp

Hi, I’m Zacharias Beckman, President of Hyrax International. Managing a multinational team can be really challenging. You have to make sure that each team, around the globe, is coordinating their efforts. That means overcoming the communication problems between them, tracking task dependency from one team to the other, and staying on top of projects — so that one team doesn’t get held up waiting for another one. So, the real challenge is figuring out to stay on top of each team and how do you make sure that all of their activities are coordinated well.

Get The Right Toolbox

Part of the answer is making sure that you have the right tools for the job. A good project management tool is going to help coordinate team activities and tasks around the globe. With the wrong tools in place, project teams suffer. They don’t have good communication, they don’t understand what the other team is doing, and task dependencies — the handoff of activities from one team to the other team — is not coordinated well. You end up with project chaos.

And when you’ve got team members that are separated by 8 or 10 or more hours in a day, this can derail the entire project for more than a day at a time.

We have two “go-to” tools that we use all the time very successfully. And we also have one that is a project nemesis. The one that we don’t like is Basecamp. We tell our customers, “Never use Basecamp.” The thing with Basecamp is, it’s super easy to use. You can sign up and start using it, literally, in a few minutes. People who don’t like process love Basecamp, because there is no process. You just put your tasks in. It’s easy, it’s unstructured, you can attach documents, and it all goes into Basecamp — and it kind of vanishes into Basecamp. That’s the problem, Basecamp doesn’t drive the process. We need tools that drive the process.

Driving The Process

A great project management tool is going to remind people of what they need to be working on, it’s going to track the interdependencies between tasks, and it’s going to make sure that someone doesn’t get hung up waiting on somebody else. This is particularly important for multinational teams where communication is already an issue. We need tools that will fill that gap and work hard to coordinate these teams, because they are already distributed, they are already having a hard time coordinating.

For small companies we recommend Teamwork PM. Teamwork PM is a good step towards an enterprise grade project management tool but it doesn’t have a lot of overhead. Your team can be using it in no time at all. It does coordinate tasks really well between team members, and it tracks dependencies, and it notifies team members of what they need to be working on. Which is one of the key ingredients to success.

For mid-sized and large teams, we recommend Atlassian Jira. It’s an enterprise grade solution. It’s completely customizable workflow system means that you can build out really elaborate, powerful processes to support your team and to support your entire organization. Jira can be customized to go all the way from requirements management and development through to customer support and care.

There are lot of great tools out there, Teamwork PM and Jira are two of them. But the most important thing to remember when selecting your project management tool — make sure it drives the process, make sure that the Project Manager is going to be able to easily get the information they need out of the systems so that they can stay on top of the project — before problems start to crop up.

Be sure to check our website. On this blog post we’ve listed a number of other project management tools that we have used in the past in addition to Atlassian Jira and Teamwork PM.

Our Project Manager’s Toolbox

Here are a few of the project management platforms that we feel are worth taking a look at. We couldn’t recommend Atlassian JIRA (for mid- to large-size organizations) and Teamwork PM (for small-size organizations) more highly, but they clearly aren’t the only solutions on the block. We track close to fifty different project management tools — these are the ones that have risen to the top, in our opinion.

  1. Atlassian — JIRA, Confluence, ServiceDesk for a complete enterprise solution
  2. Genius Project — Traditional, full cycle portfolio and project management platform
  3. Herogami — Agile development with Kanban
  4. Jama Software — Full lifecycle project management
  5. Liquid Planner — Traditional team and project planning
  6. Rally Software — Agile project management platform
  7. Teamwork PM — Full featured, easy to deploy task and project management

This Is Horrible Management Advice

I’ve been seeing a lot of management advice lately — hopefully it’s a sign that the U.S. economy is starting to boom again, and projects are taking off. But the problem is, most of the advice I’m seeing is really horrible — at least, if you’re working anywhere outside of America.

Western Management Is… Western

Western management theory works great if you’re managing a Western team. That means a team of people that are completely and entirely Western in terms of their culture and expectations.

For example, in this recent article, Lisa Evans reports that employers are “turning away from the traditional management style of hierarchies.” This is absolutely correct — in the United States. But applying this advice elsewhere in the world could be a huge mistake, especially in the highly organized and role-driven cultures throughout the East. Much of what Ms. Evans writes is sound advice across cultures. She writes that, “Recognizing these basic human needs can create a workforce of employees who are committed to working for their leader because of who they are and how they are treated,” a management principle that is a universal truth. But, as with most Western-oriented management writers, she also adds advice that will fall flat across Asia: “Empowering employees is one of the best ways to get commitment.” Unfortunately, this doesn’t work well in countries and cultures where explicit instruction is expected. In India, for instance, delegating and empowering your team usually backfires. The culture of India, one that produces great technical minds, is still focused on rote training and clear task delegation.

Adapt Your Management To Fit Culture

Don’t be scared of looking for advice online, though. There’s a lot of great advice — but consider the author and their audience. If the article seems to “American,” look for advice from a more International source. One great example is Donna Flynn’s recent article on Managing A Team Across 5 Time Zones. She writes that it’s important to share the burden of communication in a multinational team: “Several months ago we started a rotating meeting schedule.  Every month, each team member now has one evening, one mid-day, and one early morning meeting, and misses one meeting that falls in the middle of their night.  No team member is expected to attend a team meeting between 10 pm and 7 am.”

Ms. Flynn adds, “No tool can replace being together in the same room.  I bring my globally dispersed team together twice a year for workshops,” advice that I heartily agree with. It’s one of the key success strategies that I teach to our clients.

So choose your source. There are even products that focus on overly “Americanized” management techniques. One is The Time Timer. It’s a clock, big, bold, and designed to sit on a conference table and get people to stay focused on the agenda. The product pitch resonates with Americans: “You’re in a meeting, there are only two minutes left, and you’ve been talking around and around without even getting into the most important topic. There was no sense of urgency. And now it’s too late.”

But there’s a problem. This agenda-driven mentality is too Western. It only works in those Western cultures that prize time above all else — such as the U.S., Switzerland, Germany, and a handful of other European countries. But deploy this strategy in South America, and your partners will think you don’t care about getting to know them. Try it in most of Asia, and you’ll be labelled impatient and opportunistic, and they’ll think you don’t want to build a real business relationship. Most cultures around the world do not value time like Americans do. In fact, the most important business cultural preference for them: Relationships. That means taking time to build a relationship, and letting the meeting run long. Long meetings are prized because it’s a sign that everyone is getting to know each other. Short meetings send a different signal: “I don’t value this relationship very highly.”

The most important thing to keep in mind: Be aware of the business culture you are working with. Make sure that the management style you apply is going to be the right style for that culture, and for your team.

How Leadership Differs Around The World

British linguist Richard D. Lewis has explored in depth how leadership style differs across cultures and countries. His diagrams of Leadership Styles, published in When Cultures Collide, offer wonderful insight into why so many multinational efforts run into problems. Anyone doing business across borders needs to understand these differences and adapt their own style accordingly.

Different Culture, Different Leadership

Leadership Styles
Leadership Styles

The variation of styles — from structured individualism of America, to consensus rule of Asia — fit  preconceptions about foreign culture. Even so, it’s important to understand the meaning behind each model, and also be aware of individual variation. The models are not unilaterally true across a country. Every individual will have their own blended style of leadership.

See Lewis’ Leadership Styles diagrams, inset, but also be aware that stereotyping is risky, as Lewis himself warns: “Determining national characteristics is treading a minefield of inaccurate assessment and surprising exception. There is, however, such a thing as a national norm.”

Lewis also argues that these cultural characteristics won’t change anytime soon. He writes, “Deeply rooted attitudes and beliefs will resist a sudden transformation of values when pressured by reformists, governments or multinational conglomerates.” While the “Westernization” of many Eastern countries gets a lot of press, most of these changes are superficial. Cultural preferences are deeply rooted. We learn about our culture from birth. Especially in countries with thousands-years-old history and culture, changes are slow to emerge. Stated more directly: Individuals may jump at the chance to adopt foreign practices, such as capital investment, but this doesn’t mean they are also adopting Western culture.

Management gurus have time and again tried to quantify and distill the secret of successful management into an easily followed formula. Peter Drucker, James Champy, Frederick Taylor, Henri Foyal, Frederick Brooks, and Mike Hammer have all put down their thoughts on the topic. But each has placed a Western emphasis on their particular management magic (and, except for Foyal, a very American emphasis).

As I’ve pointed out many times, cultural conflict is common across multinational organizations. Learning how to avoid the conflict — misunderstandings, misinterpretation, and direct cultural incompatibility — is the first step.

Multinational Leadership Success

There is no single management tool that can work in the global landscape. The cultural intricacies that define how people interact, both in a business setting and a social setting, run far too deep. And, just as management styles depend on environment, so do our relationship-building tools. Creating a successful International business relationship depends so strongly on cross-cultural awareness, in fact, that without extensive exposure to foreign culture most efforts are rife with failure.

Check out this short six-part series that talks about how business cultural preferences affect 27 project management disciplines.

How To Go Global

How do you learn to “go global” and take your product, and your company, to an International scale?

Hi, I’m Zacharias Beckman, President of Hyrax International. I founded this company because I believe that American businesses, in particular, are really embracing the global economy. That means learning how to adapt products to different cultures around the world; changing a business’s internal culture in order to be compatible; changing how projects are managed, because the traditional Western management style that most of these American businesses employ, those styles are not going to work in Asia or South America or the Middle East. So, American businesses need to start to adapt.

Adapting To “Global”

A new level of business cultural awareness is needed. We need to understand how to communicate with each other, how to adapt to each other’s way of thinking about time, how to manage people with a different concept of power distance or the separation between a boss and an employee. It’s a complex landscape.

Taking a product into another country means adapting that product so that it fits well with the culture there. For example — lets say you wanted to take a product that was a four pack of golf balls, here in the United States, and sell it in Japan. It’s probably not going to work — because the word for “four” in Japan sounds very much like the word for “death.” So taking that product and simply slapping a new label on it in Japanese and shipping it over there — that’s not going to work.

This is why we created the Global Project Compass (see our six-part article on the Compass). It’s a map that takes 27 different project management verticals, things like quality assurance; time estimation; acceptance testing, and it maps them to business cultural preferences. And we see how, for example, communication is going to change each one of these 27 different project management disciplines.

We are global project experts. We understand the technical execution and we understand the cultural implication. Our programs will make sure that you succeed taking your products overseas and building a multinational organization.

The Global Opportunity

Global activity has broadly strengthened and is expected to improve further in 2014-15, according to the April 2014 World Economic Outlook (WEO). Much of the impetus for growth is coming from advanced economies. As the global economy returns to growth, it’s clear there are expanding international opportunities. Businesses are focusing on global economic strategies and new, emerging markets.

But outsourcing, forming a joint venture, or extending supply chains across the globe isn’t easy. Engaging with your partner is, in many respects, like hiring new staff located on the other side of the planet. How do you manage these new employees that aren’t in the office, don’t speak the same language, work a different shift, and will probably never meet your customer or understand the local market? More than likely, they are accustomed to doing business in a completely different way from what you find normal and acceptable.

Doing Business In The Global Economy

Understanding the strong cultural biases and preferences of our counterparts overseas is critical to success. I run into these differences all the time when working internationally. Here’s an example: In a survey conducted across Western and Eastern businesses, respondents were asked to choose whether they strongly agree or strongly disagree with the following statements. Consider your own answer to these questions:

  1. At work, we do business with the firm that has the best product, regardless of our relationship with them.
  2. To avoid a conflict of interest, I avoid doing business with someone solely because of a personal connection.

When presented to Western business people, responses tended toward agreement with these statements. More so, when presented to American business people, the score is almost always very strong agreement. It demonstrates the strong Western preference to be unbiased in the evaluation of products and services. In fact, in many Western companies, there are rules and regulations that specifically forbid preferential treatment because of personal relationships. These companies go out of their way to completely remove personal preference from any buying or hiring situation, making the process one that is as objective and fact-based as possible.

But when presented to Eastern business people, respondents registered strong disagreement with the statements. In India, the Middle East and China, the response is almost uniform: Intense disagreement. These cultures are strongly relationship oriented, and that cultural preference permeates the business environment. A business person making decisions in the BRIC (an acronym for Brazil, Russia, India, China) will focus on how well they know the person or group they intend to do business with. Strong personal relationships are an integral part of doing business. These strong relationships are what keep things moving smoothly. For instance, Japanese business contracts are much shorter than those drafted in the United States. This is because many of the expectations of the business environment are so deeply embedded in the culture that long, detailed contracts are unnecessary and even offensive. Furthermore, the value of “face” and one’s reputation is so intrinsic that it provides a much stronger motivation than a legal document.

Business Culture And Conflict

These fundamental differences in values and business practices lead to huge misunderstandings in the business world. Just some of these differences include how we manage people, what kind of relationship a boss and a subordinate have, and how we communicate.

Studies conducted by KPMG and Standish reported that 70 percent of projects are failing to meet their goals when it comes to quality, budget, and time — and nearly one quarter (24%) of all projects can be counted as complete failures. These projects are either cancelled outright, or are so off the mark the customer never even uses the finished product.

Frank Ridder, research director at Gartner, has commented that, “[We] found that 55 per cent of global organizations manage their sourcing activities tactically and at an operational level, failing to add a strategic management layer and invest enough in developing critical multisourcing competencies.” In other words, these organizations fail to effectively manage outsourced projects because they don’t plan far enough out, and they don’t take the time to understand the markets they’re developing.

These figures are becoming more and more widely accepted. According to Brandi Moore, a respected consultant on multicultural projects, fully two-thirds of outsourced projects are unsuccessful, and at the same time 65% of Western managers cite culture as their biggest challenge in multinational organizations.

The emerging global economy is creating challenges that Western and Eastern business are just learning how to deal with. As Geert Hofstede, of the Hofstede Institute, aptly wrote, “One of the reasons why so many solutions do not work or cannot be implemented is that differences in thinking among the partners have been ignored.” It’s impossible to build a global organization when each of its parts operates in a cultural vacuum, unaware of how the other parts work.

How Business Culture Affects Your Business

Hi, I’m Zacharias Beckman, President of Hyrax International. We get a lot of questions about how business culture affects business on a day to day basis.

Sarah, a project manager here in America, is very successful at what she does. She’s got a lot of successful projects under her belt. But right now she’s having problems. It looks like the project that she is working on is going to ship late. There are lot of quality problems with it.  It’s over budget, it’s behind schedule, and Sarah is very frustrated. All of the techniques that she’s been using in the past aren’t working for her now. She feels like she is  not getting the feedback from her team that she’s used to getting. For example, she proposed some changes to quality assurance system and instead of getting feedbacks, there’re silence, delays and  then finally the team agreed to implement what she had proposed.

In a typical Western style, she is expecting very clear communication from her team.  Direct, critical feedback on the project and on the proposed changes that she is making. The problem is, her team is in Asia and they don’t think  that she knows she is doing. She asks too many questions. She doesn’t demonstrate the authority and the wisdom necessary for the team to feel like she’s in charge of the project.  They are not accustomed to this kind of management.

Sarah’s run into a couple of business cultural preferences. She’s experiencing power distance, which is the separation between a boss  and a subordinate, and how they ‘re allowed to communicate because of cultural constraints. And she’s also experiencing differences in communication style — the low context, direct communication of the West versus the very high context, rich and subtle communication of the East.

Sarah’s solution in this case is to get business cultural training and understand how her management style differs from what her team is used to and then adapt  her management program, her project management technique, to work well with her team is Asia.

Check our website for more information on both of these business cultural preferences. I’ve blogged about them quite a bit in the past.

And if you are managing an International multicultural team, it’s really important to understand how much business cultural preferences will affect your project and your management style. You need to be sure that the project management methods you’re putting into play, are going to work with your multinational team.