EFFECTIVE MANAGEMENT OF

CROSS-CULTURAL TEAMS

Marc Tassé, PMP

Secretary General and Executive Director

PMI Mongolia Chapter

Introduction – Marc Tassé, PMP, MGM, MIBA

Education Qualifications:

− Master of International Business

Administration (MIBA) Degree

− Master of Global Management (MGM)

Degree

− Project Management Professional

Professional Associations:

− Member of the Project Management

Institute (PMI)

− Canadian Association of Management

Consultants

− Canadian International Council

Professional Experience:

− >20 years of Business Development

and Project Management experience

− Working in Mongolia for 3 years

− 6 years working in South Korea

− Experience working with 26 countries

Large range of projects, including:

− Organizational Change

− International Events

− Global Marketing Campaigns

− Service and Product Development

2015 2

Overview

• With globalization and instant communication, project teams are no longer required

to be in geographical proximity in order to be effective.

• Technology is making it easier for the de-centralization of project teams and

resources in order to take advantage regional specializations and cost benefits.

• This requires project managers to not only be technologically savvy, but also

requires them to become intimately aware of the different cultural and work practises

of their multinational teams.

• But working with teams and team members in different countries, from different

cultures and with varying backgrounds creates unique opportunities and challenges.

2015 3

Joint Product Development Case Study

• Subsidiary of large China based international manufacturer

• Purchased an Italian based manufacturer, all Italian staff

• Tasked with developing new line of devices

• Project is 6 months behind the development schedule and 25% over

budget

• A new project manager is sent to “fix the problem” and get on track

Hitch

• Italian law forbids overtime – workers can only work 40 hrs

• Any new hires become permanent employees, no temps

2015 4

Wednesday, 15th May 2013

• Sanjay Parekh, Co-founder and Managing Director of Webexpenses,

began his business at the turn of the century, but by 2007 decided his

London office was no longer worth the cost.

• “We now have employees based all over the UK, allowing us to choose

from a very wide pool of talent unrestricted by location.”

• Parekh says his business costs have fallen by 15% as a result of closing

his office, yet the company has expanded its revenues by over 20% per

annum since 2007.

The Guardian

2015 5

Officeless Business Case Study

Wednesday, 15th May 2013

• Need for new ways of managing projects

• Globalization, ease of transport and instant digital

communication allows project teams to span the globe

• Have to deal with regulatory challenges imposed by foreign

jurisdictions

• Become “culturally sensitive” to diverse local needs

2015 6

What do the two cases have in common?

Six Cultural Dimensions

• Power Distance

– Levels of authority, how power is perceived

• Individualism

– Self-image, self and family or society at large

• Masculinity

– Level of competitiveness, drive to win

• Uncertainty Avoidance

– Risk aversion, take a gamble

• Long Term Orientation

– Immediate result focus or long term strategy

• Indulgence

– Follow own impulse , indulgence

2015 7

China – US Hofstede Analysis

2015 8

Concept of “Ba” in Project Management

“Ba” is a shared context in motion, in which knowledge is shared, created,

and utilized. Dr. Ikujiro Nonaka

– How do individuals and groups adapt and learn

• Socialization phase: having an existential dimension and taking the form of a

face-to-face or personal contact;

• Externalization phase: having a reflective dimension and taking the form of a

peer-to-peer interaction;

• Combination phase: having a systemic dimension and taking the form of inter-

group interaction;

• Internalization phase: having a synthetic dimension and taking the form of

practice on site.

2015 9

2015 10

China - France Medical Collaboration

• Young French entrepreneur sent by government to China to find

opportunity for collaboration

• Spends one week in China, meeting many potential collaborators

• Corresponds by email and messaging

• Invites Chinese partner to France at their own expense

• Wants to impose French regulatory standards on imported Chinese

medical products

• Made in France solution for Chinese industry

2015 11

China France Medical Collaboration #1 - Fail

2015 12

Behavior Result

Socialization• Goes to China alone

• Met with key contacts

• Identified three opportunities

for collaboration

Externalization

• Writes report and submits

proposal based on experience

• Has translated into Mandarin

• No consultation from potential

partners

• Assumptions on market

Combination

• Builds plan based on European

standards and conditions,

impose on China

• Foreign solution

• Expect Chinese to adopt

French standards

• Learn to do the French way

Internalization

• Submitted proposal to Chinese

government

• Was invited to come by

Chinese sponsor

• Make Chinese delegation pay

their way to France

• Project rejected and cancelled

• Perception French did not

respect partners

• French assume “political”

motivation

China - France Hofstede Analysis

2015 13

Best Practices for Managing Intercultural Teams

General Decision Making Communication

Power Distance • Ground rules

• Identify authority

• Flexible to needs

• Reward all

• Responsibility

• Understand

expectations

• Delegate across

levels

• Rotate roles

• Action steps

• Follow up on

contributions

• Agreement by all

Individualism • Clear group

objectives

• Individual

accountability

• Interaction

• Save “Face”

• Input opportunities

• Individual decision

making

• Accountability for

team and individual

• Complete tasks in

meetings

• Individual opinions

• Neutral facilitator

Masculinity • Recognize all

success

• Balance work &

life

• Clear team roles

• Adjust roles over

time

• Anticipate overtime

• Rotate facilitator

• Active participation

• Surface and discuss

bias

2015 14

Best Practices for Managing Intercultural Teams

General Decision Making Communication

Uncertainty • Link and rational

Time Orientation • Link and rational

to actions

• Balance

deliverables with

team building

• Guidelines on

time issues

• Independent vs

group tasks

• Big picture

• Balance planning

with adaptation

• Timeline and agenda

links

• Time for relationship

building

• Focus on objectives

Indulgence • New challenges

• Allow team to

adjust rules to

local culture

• Agree on leader

• Active leader role

• mentor

• Clear purpose

• Flexible

communication style

• Specific outcomes

for team

2015 15

Tips to Managing Cross-Cultural Teams

• Communicate continuously

• Use active listening

• Keep communication simple

and clear

• Use different technologies to

advantage

• Build relationships and trust

• Show respect for other cultures

• Be sensitive to cultural differences

• Check for understanding

• Ask for clarification

2015 16

There are always three sides to a conflict

Side A, Side B and the Truth

© Project Management Institute 2015

secretary@pmimongolia.mn

www.pmimongolia.mn