Project Management in the Digital Age: Global Culture and Ethics

Introduction: Globalization and the Project Manager

Emerging markets continue to be a promising area for many of America's most beloved companies, such as Coca-Cola, Apple, and others. This bodes well for project managers in the digital age as they expand operations overseas. However, as these companies become more global, the risks associated with their operations become increasingly important. Understanding gender, ethnic, and cultural differences can have a profound impact on the overall success of a project manager in the digital age.

Our economies are becoming more global with each passing year. We are currently in the midst of a global recession — not merely a domestic one — which is a testament to the magnitude and extent to which U.S. operations reach other nations. This phenomenon extends into the global work environment, as talent within specific nations is becoming more desirable. That talent is often placed under the supervision of a project manager who rarely, if ever, interacts with the individual on a face-to-face basis. As more jobs shift abroad, project managers must be aware of cultural and gender differences and, more importantly, must understand how those differences affect overall business operations.

Our society is becoming more global as technology advances. Companies are now expanding across country lines in order to capture valuable market share and profits. These companies bring with them competitive advantages in terms of operations, product knowledge, and human capital. It is this human capital component that will be the biggest force driving productivity gains in the future. As companies expand, so too does the need for project management. This is especially true within a digital framework, as technology allows individuals to be virtually everywhere at once. Products such as Skype, video conferencing, and similar tools make management in the digital age more seamless and easier to use. Managers in the digital age must therefore be cognizant of technology's benefits with regard to productivity.

Technology and Collaboration in the Digital Age

Technology has become synonymous with the information age. Information rarely escapes our grasp, as anyone can now access its vast array of knowledge. More importantly, in the context of our global society, technology plays a profound role in a nation's ability to compete in an increasingly competitive environment. As the old adage states, "Knowledge is power," and in many instances this is correct. Information allows project managers to make better-informed decisions regarding projects that can have serious implications if the wrong solution is chosen. Furthermore, information allows the project manager to access and search particular concepts with greater convenience (1). Technology allows humans to live longer and more productive lives, which directly correlates to a project manager's overall performance. Fewer people are getting sick and therefore more people are working. The benefits that technology yields are as difficult to enumerate as they are to fully comprehend.

The first main area of successful project management in the digital age pertains to collaboration. Interpersonal collaboration is extremely important as our society becomes more global. Working professionals on each team vary in skills, experience, and expertise. It is the project manager's job to leverage these skills and abilities to further the goals of the team. In order to be successful, the project manager must be engaged with each team member regardless of geographic location. Technology complicates this, as many teams do not meet in a traditional face-to-face manner. This challenge is further compounded by the fact that many individuals within the group come from international backgrounds. As a global society, the project manager must overcome differences in background for the greater good of the group.

Asian individuals, for example, will have a different value system than that of an American interpersonal network. The benefits of having an interpersonal network are fairly obvious. However, the benefits and limitations of such a network are almost entirely dependent on the underlying cultural aspects. For example, an interpersonal network of Chinese or Asian social workers could be very different from the interpersonal network of an American social worker. To overcome these differences within the digital age, managers should establish a common metric of success and a set of shared behaviors that all individuals in the group can utilize.

One such example comes from Macy's Inc., an American retail chain. Macy's currently operates more than 800 stores worldwide, with many stores located in areas such as Guam, Puerto Rico, and Dubai. In order to support successful project management, Macy's has incorporated a standardized system of both performance appraisal and employee behaviors. For example, Macy's utilizes a balanced scorecard to keep employees motivated and focused on performance. This scorecard tracks all members of the team and their performance relative to their peers. The form is the same regardless of location or nationality, which helps the project manager pinpoint exact areas of opportunity within the team. This approach can be very effective in the digital age, as team members can access the scorecard information themselves and take a more proactive role in their own development.

Macy's also has a standardized approach to selling called "MAGIC," which provides a consistent framework while allowing flexibility in implementation. The components of MAGIC for international team members are as follows:

M — Meet and make a connection
A — Ask questions and listen
G — Gather information
I — Inspire to buy more
C — Celebrate the purchase

Cultural Sensitivity and Outsourcing

All selling team members, regardless of location, are expected to use this standardized approach. Their performance on these behaviors is then rated by the project manager using the balanced scorecard. These results can be used to compare performance at the company, regional, or district level (2). This approach gives the project manager valuable information with which to leverage the success of the team in the digital age.

Another essential quality for project management success is cultural sensitivity. In the digital age, more jobs are being outsourced to other countries, which expands the scope of the project manager's responsibilities. Technology does indeed create jobs, but contrary to popular belief, many of those jobs are created overseas. The money generated in these overseas positions is often retained in the host country rather than repatriated to the United States. The technology sector leads all industries in outsourcing, accounting for nearly 45% of outsourced positions. Close to a third of all manufacturing jobs are also outsourced. As a result, project managers must now manage associates and team members located in countries thousands of miles away.

Dependence on technology can have a profound effect on the project manager's role in the digital age. As the nation becomes more dependent on technology, jobs will be lost to overseas candidates — primarily in the technological and manufacturing sectors. Project managers must be aware of this shift in personnel as they continue to lead more culturally diverse teams. Furthermore, as brick-and-mortar retail locations increasingly become mere showrooms for consumers who ultimately purchase online, the role of the project manager is further complicated.

As more jobs are outsourced, the project manager must deal with multiple personality types and cultural backgrounds. This presents challenges in terms of successfully implementing strategic initiatives. Some countries, such as the United States, place emphasis on individual accomplishments and merit. Other countries, such as China, emphasize collectivism and team building. The project manager must find ways to leverage the strengths of each cultural orientation to further the team's shared objectives.