Global Project Management – Not Business As Usual

Abstract

Engineering and construction companies will have to make radical changes to their project management techniques if they are to be successful in the global marketplace in the 21st century. Customers will expect lower costs, shorter engineering and construction periods, low-cost, high-quality materials and equipment from manufacturers anywhere in the world, and prompt attention to their needs. These expectations mean that dramatically new approaches will be required not only in the organizational structure of such companies but also in their way of thinking and in such critical functions such as information systems, supplier management, and quality assurance. It will not be business as usual. There are six key areas in which engineering and construction companies will have to excel to be successful in satisfying the global customer. First, these companies will need an organization that can match their expertise in a cost-effective manner to the needs of their global customers. Second, global companies will need information technology (IT) systems that will permit fast, reliable transfer of data to any point on the globe. Third, the staffs of these companies will have to be able to think globally and to delegate design functions to engineers at distant locations. Fourth, they will have to make effective use of suppliers anywhere in the world to benefit from lower manufacturing costs and proximity to a given construction site. Fifth, they will need to develop the knowledge to use local materials and construction techniques in such a way as to minimize costs and take full advantage of local existing facilities. Finally, they will have to ensure that the required quality is achieved in the end product they deliver regardless of its location. Note that successful global companies will have to be very good in the basic project management processes of planning, designing, scheduling, controlling costs, and managing materials and construction. However, the six areas listed above are crucial to global success, and companies that are complacent and do not focus on excellence in each of these areas will be unable to compete in the global marketplace.