Project Management in China

The companies and their business environment are facing drastic challenges within the age of globalisation. On the one hand, the companies are exposed to market saturation and enormous pressure in Europe and the USA, while on the other hand, they notice attractive production locations and a huge market potential in China. In the highly industrialised nations, migration to so-called low cost countries has become a business management trend. When it comes to the construction of new industrial facilities - which is the foundation for producing new products, project management becomes a key part of the globalisation process. However, project management in China leads to new challenges and traps for western executives. Unlike in European countries, China is an ‘individual related’ country, where the personal relationships has a greater effect in business success. Knowledge of human nature becomes more important in China than it is regarded in western countries, where facts and figures predominantly determine the communication within the business environment. In China, the soft side of management provides a new challenge. What is the key to successful business in China? It is not only dependent on hard factors or hard skills such as knowledge, specialised know-how or expertise. The personal culture in China requires so-called soft skills, which adversely affect business success. They are often underestimated in intercultural project management, in which the project environment demands a collaborative partnership rather than a command-and-control managerial hierarchy. Practice shows that the human factor has a prominent position in project success. To be successful, major attention needs to be drawn to the Chinese way of thinking. Soft skills in communication, negotiation, conflict resolution and team work play a decisive role in business practice and prevent stumbling blocks. To handle business and the differences in tradition, culture and mentality, a sensitive flair is needed. The mastering of soft skills determines the success or failure of business in China.