Four Globalization Risks Impacting International Projects
Are We Noticing Globalization Risks Impacting International Projects
The world economies have embraced globalization to higher degrees though recently there has been increasing concerns against globalization and somewhat few countries are seen favoring protectionism (read: BREXIT). Nonetheless, over the years globalization has offered tremendous opportunities for enterprise businesses as well as SMBs to tap developed market, emerging market. These opportunities have been in terms of new market for products & services, new market of cost effective resources, network of skilled labor, partners, etc.
But at the same time, globalization has introduced wide range and complexity of risks, especially managing project risks. Some of these risks associated with international projects can possibly such that they can put question mark on survival of the business. Let’s look at the globalization risks impacting international projects.
Global workforce working on a project obviously has cultural differences. For some of the aspects, cross-cultural team members is good for team whereas on the other hand there are challenges involved: risk appetite/aversion, communication & personal style, emotional, religious thought process. All these factors if not understood clearly and also if not managed well can tear-off team fabric or working spirit.
Complexity of Regulatory Requirements
Though globalization has given avenues for businesses to tap talents, resources and markets potentials from different countries, however it has also brought in diverse regulatory and statutory compliance requirements from participating countries; e.g. Taxation, labor laws, environmental regulations, etc.
As a business manager, it is difficult for a person to keep track of different regulatory requirements and fast-changing regulatory frameworks. This poses a serious risk for global project in terms of planning and executing.
Of course a large part of these risks can be highlighted and managed using a central project management software platform. Such platform can give better visibility for project stakeholders including government agencies and auditors.
Global Resource Planning
Globalization has given opportunity to hire skilled resources from different parts of the world, however as demand for local talent spurred global firms has resulted in shortage of specific talent/skills. It has become a challenge for global resource manager to identify and assign most suitable resources for project. Of course, central enterprise project resource management software platform can simplify some of these challenges (such as filtering skilled resources, check their workload/ availability, request to book them, etc).
Fixation of Problem and Resolution
The very nature of globalization means, different people from different teams working in different location. In case of major issue, it is becoming more and more difficult for senior management to fix the problem, identify function/department that caused the problem, identify responsibility, etc. Given the amount of information compiled by global teams, it is even more challenging for executive management team to filter necessary and important information. The other aspects of resolving such major issue is responsiveness of global project team members. Building responsiveness, flexibility among team member is a cultural exercise for organization.
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