Asian PM / Western PM:
Global Standard vs. Local PracticeStandard
Changethe M anagement

Young
B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada , Ken Hayashi
All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Intention of this session

Tools of this session

Most of us are aware of the basic project
management skills and knowledge baseand that they are an important tool tomange a project. However, in most reallife projects, it is not uncommon toencounter frictional and motivational
hazards and tensions between stakeholders.
These tensions are typically due to lessunderstanding of each other, unexpectedly
caused by difference in cultures, mainly[location culture] and [corporate culture].
Why do these exist and how can we gain abetter understanding to effectively manage
these factors?

As this topic generally has no clear answer, theRound table discussion is more appropriate toshare knowledge and experience, and is largely
dependant upon the individual.

Goal image of this session
The audience will realize that there are clear
differences and [tips] relative to the right PM
approach, based on the [location culture], as
well as [corporate culture]. Having an
understanding of how to manage these cultures
is the key to successful project management.
More specifically, this session would provide
the practical (virtual) image and tips for any
PMer who is going to manage any project inAsia in future.

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

The flow of this session~Asian PM / Western PM ~Global standard vs. Local practice~1) Introduction & Outline Presentation : 25min-Historical characteristics of project management approaches inEurope/America, and Asia
-PM approach & culture matrix-Difference of PM business model in the region (Fee perception, responsibility, etc)
-Corporate culture types / characteristics-Recent changes in Asia
2) Round Table Discussion : 40min-Quick question to audience-Location Culture & Project management approach-Corporate Culture & Project-Pit-Holes when both mis-match-PM global standard-Key words-Case Study discussion3) Closing : 10min-Tips for Facility Manager (or PMer) to manage [location culture] & [Corporate culture]-Tips for PM global standard & it’s flexibility to adjust to local-Changing ages for Asian PM style and direction to go
All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Historical characteristics of PM approaches
in JAPANTORYO

Revolutionof 60years

棟梁

Master Builder

400 years oldCollaboration
betweenWesterntechnology
and Japanesetradition

DesignWestern
CultureConstruction

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Historical characteristics of Project delivery
in Europe, USA / Japan

5c

Europe, USAJ apanConstruction by Professional
Builders

Shrine Builder
Local Builder, Daiku(Carpenter)

15c
16c
18c

Architect
Architect

19c

DesignDesign Bid
Bid
Build
Build

20c

Industrial
Revolution

Import of WesternTechnology
Western
Western Architect
Architect

Construction
Construction
Local
Local Architect
ArchitectManagerManager
DesignDesign-Builder
Design-Builder Design
Bid
Bid
Pure
CM
Western
Pure CM
Western
Build
Build
ClientClientDesignCM at Design

CM at
Risk
Risk

21c

Master Builder

Build
BuildGeneralGeneral
Contractor
Contractor
Learn Design
Skill

Pure
Pure CMCMCMCM atat
Risk
Risk

DesignDesignBuild
Build bybyGC
GC
TAKENAKA CORPORATIONAll Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

PM Organization Establishments inEurope/America/Asia
1965 Europe IPMA (International Project Management Association）
1970 USA
PMI (Project Management Institute)1972 Europe APM (Association for Project Management)
1976 AustraliaAIPM (Australian Institute of Project Management)
1978 Japan ENAA (Engineering Advancement Association of Japan)
1991 Russia SOVNET (Russian Project Management Association)
1991 Korea PROMAT (Korean Institute of PM and Technology)
1993 India
PMA (Project Management Associates)
1998 Japan JPMF （Japan Project Management Forum）
1998 Japan PMI Tokyo, Japan Chapter
1999 Japan SPM （Society of Project Management）
2002 Japan PMCC (PM Professionals Certification Center)2005 Japan PMAJ (Project Management Association of Japan)
All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

PM Culture Matrix in Asian Countries

CultureGlobalType 1
Location

Type 3CultureCorporate

International

Type 2
Domestic

Type 4Asian
All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Corporate culture
Top Down

Bottom UP

Risk Hedge

Risk Take

Short term outcome
orientedLong term outcome
oriented

Matured stage

Growing stage

Governance

Delegation

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken HayashiLocation Culture (Example)
USA/Europe (American)

Asia (Japanese)

Clear Explanation

Dry / Logic

Hidden SenseA^ Un

Wet / FeelingDocumentation

Independent

Trust Base

Joint &Dependence

Pure PM (simple)
Written Mission & Stand point

Compliance＆Risk
Management

Mixed PM (complex)
Broad task & Wide expectation

Accountability & failure risk hedge[Trust] base & Commitment

Pure PM Fee

Biased PM fee

Pure PM Business

Mixed PM Business

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Case Study 1 :US based Security firm
Corporate Culture
Location Culture:Global:International

SIMPLEA n s w e r®

MA IN

M EN USU B ME N U

globalAll Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Big Office Relocation Project in JAPAN
Place:Tokyo, RoppongiInt. Client Firm
CorporateLocal Landlord
Corp.
Services&ServicesGeneral Contractor

Enterprise
Ent.
TechnologyTech.

Multi Cult. PM TeamInt. PM Firm (HK base)+Local PM Consultant(GC in-house)

Int. Interior
Design Firm(USA, JPNbase)Local Eng.
ServicesConsultant

Int.
CommissioningConsultant(HK base)

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Pit holes

Case1Tips

Poor Integration amonginternational
consultants

Integrated Drawing
Management

Commissioning standard
difference between
international consultantsand domestic vendors

Engage international
knowledge-fulldomestic M/E engineeringconsultant

Hard to justify the fair pricewith client and local
vendors

Mobilize domestic
independent costconsultant
as a member of PM team

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Case Study 2 :US based IT firm
Corporate Culture
Location Culture: Global: Domestic

SIMPLEA n s w e r®

MAI N

MEN U

SU BMEN U

globalAll Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Several Facility Projects in JAPANInt. Client Firm
Corporate
Local Landlord
Corp.
Services&Services
General Contractor

Enterprise
Ent.
TechnologyTech.

Local PM Team
Local PM
Consultant

Local Interior
Design Firm

Local Eng.
Services
Consultant

Local
Vendors

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Pit holes

Case2

Tips

Less explanation to user
regarding global concept
would create several
friction with users

In-house PM’er must build
common internal
recognition for its right andresponsibility

Headquarters
management tend to havepoor understanding of localpracticeLocal FM dept. needs to
get trusted for theirprofession by actual
practices / result

Local architect / engineer
to have poor
understanding on global
concept

In-house PM’er to share tech.
wording in the local languagewith local architect to respectand maximize their profession

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Case Study 3 :Japan based IT firm in China
Corporate Culture
Location Culture: Global: Domestic

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

HQ Relocation Project in Greater China
Place: Beijing, China
Owner/Landlord
Base Building
Contractor/NSC

Project Outline:
The Gateway,
6,200SQM(Net Area),
280 employees
Hot Desking

Interior
Design &Fitting out
Firm

Sony TeamGA

IS(SH/BJ)(SH/SIN/TYO)

PMConsultant
Sony
Facility
(TYO)

Eng.
Commissio
Servicesning
Consultant Consultant

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Pit holes

Case3Tips

Big gap of understanding what isPM work responsibility by local
vendors most of whom do nothave much experience working
with pure PM

In addition to clear
documentation, PM’er
should act as if being a
local contractor

Corp. global standard does
not suit to local
vendor’s local practice

Never neglect to revise
global standard. Follow
local rule if conflicts.

Cost over run at the end,
due to frequent local codechangeUnderstand local costing
culture and keep
contingency 10-50%

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken HayashiCase Study 4 : Japanese
Steel Manufacturer
Corporate Culture
Location Culture: Asian: Domestic

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

New Office Construction Project For M&A
Place: Tokyo , Japan

Client Team

Consolidation ofhead offices
local offices
IT systems
Corporate brand design

A FirmB Firm

PM & Design& IT & CM Team
Only One Firm
Planning
Project Director
DesignProject Manager

A+Facilty Analist●プロジェクト全般
実務管理
Network InfraX

B

Design Manager
CMAll Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Pit holes

Case4Tips

Client does not haveknowledge to evaluate
outputs and its process
for each task

Education of client
should go in paralleland process sharing by
PM vendor

Corp. culture differ
even in the same
location culture

In-house Fmer need totranslate not language
but the [culture] to get
vendor’s support

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Key Words
Risk management
by client
Quality adherence

Strategic plan

GovernanceVendor relationship/ customThe view ofhuman nature
as fundamentally
good / bad

Location
CultureCorporate
CultureTransparency
Accountability

Diversity
Contract
documentation
CultureKIGASUMANAI(Japanese)

GANBARU(Japanese)

A tacit
Understandingin local customs

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Discussion theme
1) What kind of difficulties do you alreadyexperience (as PMer) at each local projectsite, or what do you think /imagine these
difficulties would be if you were involved inmanaging a project in another country ?

2) What have you (as PMer) been frustrated orupset at regarding a local project?

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Discussion theme
3) How did you solve these issues on your own ?

4) What was the pit-holes at each region when
performing RFPs, Contracts, Fee discussions,
Vendor management, Budgeting, Reporting,etc

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Discussion theme
5) Do you think [PM Global standard] exist. If so
how and what are they?

6) Do you think one successful case study in one
location, can be simply applied to anotherlocation as well ?

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

+++Closing+++
1. Tips for the Facility manager (project manager) inunderstanding both [corporate culture] and[location culture] and their balancing.
2. Tips for establishing PM global standards andlocalization .
3. Sharing the pit-holes for the facilitymanagers(project manager) working in global firms.
4. PM culture and the direction to go, especially inJapan, Korea, and China
All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

If Project failed,
HARAKIRI
All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi

Young B Kim, CFMJ
Johnson Controls Japan KK.
Registered Architect, Japan

Project Managers Group, Asia
Pacific

Specialized the Securities
Facilities.
Over 15 yrs In house FMer
experience.

Nissan R&D Conversion PJ
Yoshitake Hozumi, CFMJ

Noriaki Yamada, CFMJ

Uchida Yoko KK.
Certificated FMer

Sony Facility Management Corp.
Registered Architect, Japan

Over 15yrs Service providerexperience

Over 15yrs experience in Sony Gp.
Specialized Asia Pacific Fitting outProjects

Japanese organization M&A PJ(JFE Steel PJ)

Sony Computer Entertainment HQ PJ
AP Regional HQ PJ

Kentaro Hayashi, CFMJ

Katsuo KatoGroup History:

2003 Facility M anagem ent Guide Book Japan
2003 W W P Yok oham a (Outsourcing P M )2005 W W P P hiladelphia
Scheduled
Nissan R&D Conversion PJ
Translation Cott’s Facility M anagem ent
Shigeo Ogaw a, PM er, passed aw ay in 2003 Handbook
FM P roject M anagem ent M ook
Over 15 yrs Service Providerexperience.

Takenaka Corporation
Registered Architect, Japan
Over 15yrs Service Providerexperience.

Various Roppongi Hills PJ(Goldman Sachs, Lehman Brothers)

Takenaka Corporation
Registered Architect, Japan

Akihiro Okada, CFMJ

Global FM Lab.
Registered Architect, Japan
Over 30 yrs experience in
IBM Japan

IBM Tokyo Hakozaki HQ PJ
Yamato R&D Center PJ

All Rights Reserved. Copyright © Young B. Kim, Nori Yamada, Yoshi Hozumi, Aki Okada, Ken Hayashi