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

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.

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.

Engagement Style And International Success

If you missed the first part of this six-part series, see: Part 1 of the series, Creating An International Culture Of Success, or see the entire series right here.

Engagement Style

Do we get right down to business, without knowing much about the other person — or, do we build a strong and trusting relationship, only talking about business after we know each other well?

Sending a delegate to represent an American company must be well thought out before departure. This delegate must have authority as well as longevity in the organization. Replacing delegates during the relationship should be done with care and planning. The new contact will need to be brought in slowly to transition the relationship. It is wise for American firms to engage more than one delegate to a relationship with the BRIC or they risk the business leaving with a delegate who departs. — Moore, Brandi, The Little BRIC Book.

Most cultures throughout the world choose the latter path: A relationship-driven engagement style. Conducting business outside of the “in group,” the trusted circle of family, associates, and professional contacts that you know well, is unheard of. It is far better to go into business with someone that you know well, even if the price or product isn’t the best. You know what you’ll be getting. Furthermore, the combined influence of your in group means everyone will do their best for you — and if they don’t, there are always solutions to improve the situation.

The Western, venture-driven style is very different. It’s found in relatively few cultures — probably less than 10% or so of the world. America is perhaps the most dramatic example of a culture that believes in doing business first. It’s a message driven culture, promoting products, uniformity, and a “best product and best price gets the business” ideal. Some of this ideal is beginning to leak into other cultures, but culture doesn’t change quickly.

The Global Project Compass identifies the following management disciplines as being most directly affected by engagement style:

  1. Accounting Policy & Costing
  2. Risk Management
  3. Procedure & Outsourcing Management
  4. Business Continuity & Recovery
  5. Information Assurance & Security

Accounting Policy & Costing

Policies regarding accounting and cost management are deeply affected by engagement style. Strongly relationship driven cultures tend to support more relaxed, flexible policies when it comes to managing the flow of money. This flexibility affords hiring family members, awarding favored contracts to close allies, and giving favors such as gifts for professional favors.

Unlike relationship driven cultures, many cultures focus on cost and performance first, and enact policies accordingly.

Venture driven cultures tend to support stronger accounting and cost management policies, leaning more heavily on the rules of business. This is particularly true in countries such as the United States, Switzerland, and Germany. In such cultures, the favoritism afforded by strong relationships is regarding as nepotism or corruption.

It’s important to remember that both systems are unique and both kinds of cultures feel their system works very well.

Risk Management

Different cultures approach risk from very different perspectives. Cultures that prioritize relationships tend to view those relationships as a means to avoid risk. Awarding an important contract to a close relative or friend provides security. The close relationship helps eliminate unknowns. While price and performance may not be the best, they are known. The strong “in group” network that defines the relationship means everyone will want to support the in group. Performance becomes a matter of saving face.

Venture driven cultures tend to equate risk reduction with choosing the best performer. Giving favored treatment to friends and relatives is viewed as a risk, and potentially disastrous. This usually means taking as objective an approach as possible. Contracts are awarded based on price/performance analysis, and risk is reduced by evaluating past performance. Contingency plans for poor performance generally involve financial penalties or having a contract revoked (not something a relationship driven culture is comfortable with).

Procedure & Outsourcing Management

As pointed out above, the typically “Western” venture driven style eschews anything that seems like favoritism. When talking about outsourcing this is probably one of the biggest differences between venture driven and relationship driven culture. The relationship driven culture will stick to its in group, favoring existing relationships. The venture driven culture assumes that every project must be objectively awarded based on performance criteria.

This also shows up in organizational procedures. Venture driven cultures tend to have written procedures that are enforced through business mechanisms (such as forms, systems, and policy review). Relationship driven cultures, on the other hand, rely more on informal, cultural procedures. Important policies are enforced not by forms and systems, but by the peer network and cultural environment.

Business Continuity, Recovery, & Security

Who is responsible for the continuity of the business? Many venture driven cultures will push for a separation of concerns, using an objective, often outside third party. This might be a service provider responsible for auditing and securing an information network.

Relationship driven cultures tend to prefer a more closely-held approach. Sensitive information is often controlled internally, and important individuals within the organization are tasked with ensuring continuity.

Each culture’s approach to security and information management can be very different. Probably the most dramatic example of this is the American view on intellectual property protection versus that of Chinese culture. While China is definitely changing, the American perception that intellectual property is owned and protected by law is not commonly shared in China. We routinely hear stories about how products are copied in record time in the Chinese market — and U.S. firms are constantly evolving strategies to stay ahead of the Chinese copycats.

Cover graphic attribution: The artist and visual designer Yang Liu was born in China and lives in Germany since she was 14. By growing up in two very different places with very different traditions she was able to experience the differences between the two cultures first-hand.

Start Outsourcing The Little Things

Many small businesses don’t understand the benefits of outsourcing or where to get started. There are plenty of opportunities to lower your stress levels by hiring an outside contractor. Here are some tips on how to get started, and how to successfully engage an outsourcing company.

Hi, I’m Zacharias Beckman, President of Hyrax International and I wanted to talk a little bit more about successful strategies for outsourcing. We recently had our client of us ask how they could be more successful with their outsourcing and stay focused on what they do really well. Outsourcing helps us focus on our core competency, by taking all these distractions and letting somebody else worry about them. And for larger firms, outsourcing will reduce costs, streamline operations and quite often get us to market faster.

We don’t hesitate to outsource legal services and accounting, so, why not other things? Services like Ziptask, oDesk and Elance, make it very easy to outsource a lot of services. For example, you can outsource a personnel assistant, or web research, data entry, SEO operations for your website. You can even have an entire website designed for you very easily.

All of these services –- oDesk, Ziptask, Elance –- they provide quick work, fast turn around, low prices, but a recurring problem is getting quality work. So, here are few strategies.

Number one, don’t take the first cheapest bid that you get. Instead, take your time, review the bids, look for the most literate bids and look for well reviewed respondents. Also, make sure that your contract, your work order, is very explicit and detailed in what it is you want.

You can also test out each respondent with a little bit of piece work before you actually give them the entire contract. Make sure they can do the work before you make a big commitment.

And finally, use project management services. Ziptask and oDesk both offer a managed level of support where they will provide an English speaking Project Manager to run the project for you and make sure the quality is there.

Also, don’t be too trusting and rush right into a deal. For example, if you are doing a new product development, you might consider outsourcing the product development and construction to one firm, but outsource the quality assurance to another firm. By separating these concerns the two firms essentially become check and balance to against each other.

6 Tips For Successful Global Expansion

Exporting is an opportunity that many small and medium sized firms should be taking advantage of to expand and grow to their full potential. Yet, fewer firms are exporting than one would expect. For instance, in this 2013 Canadian study, less than 2 per cent of such businesses are exporting. At the same time, recent import and export figures at the United States’ largest port, the Port of Los Angeles, point to considerably lower export volume than in previous decades.

These figures are mirrored in the U.S. by McKinsey’s Global Institute study, which points at a mere 5% of businesses exporting. But there is growth. According to the report, “Global flows are growing and contribute to GDP growth. Flows of goods, services, and finance in 2012 reached $26 trillion, or 36 percent of global GDP — 1.5 times as large relative to GDP as they were in 1990.”

With such a low percentage of firms exporting goods there is huge opportunity abroad — a gap that will likely be filled as the global economy recovers.

The Globe And Mail’s Michelle Little, in a recent article, also points out the high potential for returns by “creating a borderless product, networking to make key contacts abroad and embracing technology to both reduce costs and reach out to potential clients.” According to the Globe article, one firm to take advantage of export opportunities was Imprint Plus, specializing in name badge systems and boasting 35,000 customers in 75 countries. But it wasn’t always so: The firm can attribute much of its success to a strategic shift. When CEO Marla Kott saw the opportunity, she made the decision to refocus the business in a much more international direction.

Other firms, including Foxy Originals and Procurify.com, have realized similarly successful results by leveraging a global strategy.

As Ms. Little writes, “With a whole world outside our Canadian borders, opportunities are there for those willing to embrace technology, create key social networks and see past the headaches of patent infringement and ever-changing regulations.”

And, Imprint Plus’ Ms. Kott provides the following six strategic tips for businesses seeking to expand globally and leverage the potential of an international market:

  1. Innovate and create mighty products or services that are unique.
  2. Do an extensive competitive analysis and don’t stop at the U.S.
  3. Speak to prospective customers.
  4. Be fearless and look at money spent attending trade shows as education funding.
  5. Educate yourself continuously through government programs, trade commissioners, and business intelligence.
  6. Join an international networking organization.

For the complete article, see Three Companies Offer Advice for Successful Global Expansion in The Globe And Mail.

Managing Time In Different Cultures

Meeting deadlines and managing project workflows when working with people from different nationalities can be one of the most challenging aspects of managing intercultural business relationships. Different cultures have very different perspectives when it comes to the importance and flow of time.

Hi, I’m Zacharias Beckman, President of Hyrax International. Somebody asked me recently how different cultures think about time, and I thought the best way to explain that would be with a short story.

Recently, I moderated a panel, here in the United States. In order to prepare for the panel I put together about seven slides that introduced the topic, which was the global economy, and each of the panel members. But, when I ran those slides by the panel coordinator, she was really concerned that I would take too much time. I had seven slides, she told me I had only four minutes, to go through the entire introduction.

So we start the panel presentation, everything goes great. We get through the introduction, less than four minutes, and we start the panelist’s portion. Now, during the panelist’s presentation, she is sitting right up in front, where I can see her, holding up cards to show us how much time is left. 30 minutes, 20 minutes, 10 minutes, 5… 2… and the last card, a big zero on it, to show that we are done. You have to stop now. So we end up wrapping up the panel at exactly 60 minutes, when the panel coordinator comes up to the podium and makes it clear that we’re done, even though there were still a lot of people raising their hands and wanting to ask questions. This is typical in the United States, and few other Western cultures where time is so important — it rules all.

Now lets compare this to my very first experience teaching, offering  a presentation, in Asia. I went there with all of these preconceptions about how important time is. As I was preparing for the presentation, I asked the Project Manager, how much time should I take and he said, “ohh… you know, about an hour. That’s fine. You do whatever you think is right.” Well, being American, I planned exactly for one hour.

Now, the next day, when the presentation starts, I’m really stressed out. Because it’s 10 o’clock, we are supposed to be starting, and people are just starting to show up. I hurriedly asked the Project Manager, “Do you want me to shrink the presentation, because we are late, I could pull it down to 45 minutes or so.” And he says, “Oh, you know, if you think that’s right, you do whatever you think is best. 45 minutes would be fine.” So, on the fly, I cut pieces out and we wrap it up in 45 minutes.

The presentation went well, but afterwards when I am talking with the Project Manager, he asked me, “Why did you finish so soon? Everybody was loving it! They had so many questions! We could have gone for another hour, or another two.” So it turns out that I had sent the wrong message. I had said that my time was more important than spending time with the group, answering their questions.

It’s important when we are working in a multinational context to be flexible and to be observant. To ask somebody, what does the local culture expect and to look for hints. I would have been better served to have paused the presentation and ask the Project Manager, “Do we need to finish up now? Does the team need to get back to work? Or should we keep going?” Remember that particularly in Asia, the focus won’t be on time, it’s going to be on developing a relationship… the focus is going be on you.

Most Common Global Communication Mistakes

Getting past communication problems is one of the first challenges that comes up in global relationship building. In the best case, our cultural mistakes can be amusing, but more often they can give offense and cost us money. Here are few common mistakes to avoid when making your first foray abroad.

Hi, I’m Zacharias Beckman, President of Hyrax International. We coach our clients on five different business cultural preferences that apply around the globe, in different cultures and in different business settings, and each one of these are extremely important. But today, I want to talk about common communication mistakes that people make when going from one culture to another in a business environment.

The first one is assuming that business culture and business practices around the world are more or less the same as they are at home. So for example, westerners tend to be very direct. They get right to the point, they want to dive into business and start negotiating right away. But many Eastern cultures tend to be more conservative. They want to build a relationship first, they want to get to know you, before they decide whether or not they should be doing business with you. So, this is just one example of how an initial meeting, when these two cultures come together, can result in a clash.

Another mistake can be putting too much attention just on the words that have been exchanged. So, what I mean by that is, Westerners might take a discussion and turn it into a contract, and look to that contract as the embodiment of the relationship. What was agreed and signed is how business should be conducted. But this doesn’t really work too well throughout most of the world. The Middle East, Asia, South America — it’s the relationship that’s more important. The contract tends to be a guideline, an initiation of that relationship. But over time the expectation is that the relationship will rule over the contract. Mutual health, mutual well being, is more important. So, what was agreed should change and this can result in a conflict where Westerners tend to be perceived as rigid, whereas other cultures are looking at them wondering, “Well, why aren’t you concerned about how well off we are together, about our future together?”

And the third point I want to mention is: Not looking deeper than just the communication and the words that are being exchanged. Multinational business and cross-cultural leadership are very complicated, because it brings a lot of different business cultural preferences into play. For example, how do different cultures think about time — is the schedule going to rule all? Or it is more important to take your time and make the right decisions and think about the long term?

It’s different from one individual to another. So, when I’m talking about East versus West, these are generalizations and it’s important to realize that generalizations don’t apply to individuals. You’ll meet Easterners that are extremely westernized and you’ll meet Westerners that are extremely easternized. But the important thing to understand is that every company has it’s own culture and just trying to push two companies together usually results in problems.

Overcoming Communication Barriers

There are many reasons for communication failure. What is said may not be received exactly the way the sender intended. Different business cultures view directness, harmony, saving face, and confrontation in different ways. How do these differences affect communication, and how do you overcome the obstacles?

Hi, I’m Zacharias Beckman, president of Hyrax International, and I want to talk briefly about overcoming communication barriers. It’s important to understand that throughout the business world English is usually a second, third or fourth language for people — even though it is a commonly used business dialect.

Fluency takes years and includes slang and idioms and local references. For example, in the U.S. you might hear, “If this doesn’t work we’re sunk” or “that’s a home run,” which is a baseball reference of course. In India someone might say, “you are gone,” to mean that their position isn’t very positive. And, I’ve had people stand up and storm out of a room saying “that’s it, I quit,” but it’s sarcasm and I know they just mean they need a break.

In an international setting it’s best to avoid sarcasm and slang, and even jokes. Instead slow the conversation down. Give your partner time to digest what has been said, so that they can understand it and ask questions if they need to.

Also, be very aware of body language. It’s very easy to misinterpret body language. The Indian head waggle, for instance, many Westerners will assume that it means “yes” because, more or less, it looks like a “yes,” but it isn’t. It definitely doesn’t mean “yes.” Instead, ask questions when you see something you don’t understand and look for multiple confirmations, so that you know that the message is properly understood.

Our number one tip for the Westerners — don’t assume that agreement means agreement. Many cultures are very much oriented on preserving harmony and preserving face, so they won’t be confrontational. They won’t directly say “no” and they won’t be terribly critical. And for Easterners, our tip is: When your Western partner seems to be overly confrontational and critical, don’t immediately assume they mean offense. They may not. Perhaps they’re being open, honest and direct.