The importance of effective communication when handling large projects

The importance of effective communication
when handling large projects

An overview with Oliver F.Lehmann

Welcome to the latest edition of the PPM Hub, where we’re thrilled to introduce Oliver F. Lehmann, an accomplished trainer with over three decades of experience in developing project business and the founder of the Project Business Foundation. Throughout his career, Mr. Lehmann has provided professionals with the necessary tools to tackle complex projects and advance their qualifications. He is well-known for his impactful seminars and workshops, which have helped businesses in crisis management, increasing profit margins, and developing strong client connections.

Join us for the remainder of the interview as we explore the importance of effective communication in managing large projects and its impact on project success.

In your extensive experience as a trainer and advocate for Project Business, how have you seen effective communication impact the success of cross-corporate projects? Can you share a specific example of a project where communication made a critical difference?

Oliver F.Lehmann
Communication skills are indeed essential for project success, and poor communication is among the most common causes of trouble in projects and even crisis.The following example is based on a real case, but names and places are changed to protect the players’ privacy:

In the heart of Silicon Valley, Tech Titan, a renowned tech giant, had contract work to Marketing Maven, a leading marketing firm, to launch a groundbreaking new phi-tech.product. Despite the combined expertise of both companies, the project was facing significant challenges.

The Tech Titan team, deeply immersed in the intricate details of the product’s technology, struggled to communicate its unique selling points to the Marketing Maven team. The Marketing Maven team, on the other hand, focused on broader marketing strategies, found it difficult to grasp the technical nuances of the product. The result was a disconnect that threatened to derail the entire project.

Enter their new project manager, Anya, hired by Tech Titan, the customer. With a keen eye for detail and a knack for bridging gaps, Anya recognized the root of the issue. She knew that the project’s success hinged on effective communication and collaboration between the two companies.

Anya began by organizing a series of cross-company workshops called “Healing Days”, in which the two companies and some more contractors joined to discuss trouble at their various interfaces and developed jointly applicable solutions. As the facilitator of the one-day workshops, I encouraged team members from the companies to share their perspectives, ask questions, and actively listen to each other. We used simple, visual tools such as the Ishikawa diagram to help break down complex conflicts and foster understanding. By creating a safe and inclusive environment, Anya and I facilitated open dialogue and collaboration.

Over time, the walls between the companies began to crumble. The Tech Titan team learned to articulate their technical achievements in terms that the Marketing Maven team could understand. The Marketing Maven team gained a deeper appreciation for the complexities of the product and how it could be effectively marketed. In addition, both parties as well as the other companies understood and respected the specific business interests of the players. The once-divided teams began to work together seamlessly, leveraging their combined strengths to overcome challenges and drive the project forward.

When the product was finally launched, it was a resounding success. The product was praised for its innovative features, and the marketing campaign was hailed as a masterpiece. The project’s triumph was a testament to the power of effective communication and collaboration between companies. Anya’s leadership and her ability to foster open dialogue had saved the day, proving that in the world of cross-corporate projects, communication is truly the key to success.

From your perspective, what are the key challenges that arise in communication when managing projects that involve multiple organizations?

Oliver F.Lehmann
When managing projects that involve multiple organizations, several key communication challenges can arise. These challenges often stem from:

Differing Business Interests: Profit center vs. cost center: The project is a cost center for the customer, meaning they are seeking to reduce expenses, while it is a profit center for the contractor(s), meaning they are seeking to maximize margins from the project and must protect their own credit line, when they lay out money for the customer. This difference in perspective can lead to tensions and misunderstandings.
Competing priorities: Organizations may have conflicting business interests that can influence their approach to the project.

Resource allocation disputes: Organizations may disagree on how resources should be allocated, leading to tensions and delays.

Matters of money and cash-flow: Differences in financial goals, risk tolerance, and investment strategies can create challenges in project planning and execution.
Organizational Culture and Values: Differing communication styles: Different organizations may have distinct approaches to communication, such as formal vs. informal or direct vs. indirect.
Conflicting priorities: Organizational goals and values may not always align, leading to misunderstandings and disagreements.
Project Goals and Objectives: Misaligned expectations: Different organizations may have varying expectations regarding the project’s goals, scope, and outcomes.
Lack of shared vision: Without a clear, shared vision, it can be difficult to maintain focus and alignment throughout the project.
Information Sharing and Knowledge Transfer: Data silos: Each organization may have its own data and information systems, making it challenging to share and access relevant information.
Lack of transparency: A lack of transparency and openness can hinder effective communication and collaboration.
Decision-Making Processes: Bureaucratic hurdles: Complex decision-making processes can slow down progress and create bottlenecks.
Conflicting authorities: Multiple decision-makers with differing priorities can lead to delays and inefficiencies.
Technological Barriers: Incompatible systems: Different organizations may use incompatible software or hardware, making it difficult to collaborate effectively.
Security concerns: Sharing sensitive data across multiple organizations can raise security concerns.
Cultural Differences: Language barriers: Language differences can hinder effective communication and understanding.
Cultural nuances: Variations in cultural norms and expectations can lead to misunderstandings and misinterpretations.

To overcome these challenges, it’s essential to establish clear communication channels, foster a collaborative culture, and utilize effective project management tools and techniques.

Can you share an example of a project where poor communication led to significant issues? How was the situation addressed?

Oliver F.Lehmann
Here is a real-life example:

A small German software company, renowned for its efficiency and precision, had secured a lucrative contract with a major Arabic conglomerate. The project, a complex software solution tailored to the specific needs of the Arabic client, was subject to a tight deadline.

As the development progressed, the German team faced increasing frustration. Despite repeated inquiries, critical information from the Arabic client arrived late and often incomplete. This hindered the software development process, jeopardizing the project’s timely delivery and potentially incurring significant penalties.

Another problem on the side of the German contractor was keeping resources busy with billable work who were blocked precisely for this project.

The German developers, accustomed to a collaborative and egalitarian approach, interpreted the client’s delayed responses as a lack of cooperation or a disregard for the team and its needs. However, the root of the issue lay in a deep-seated cultural difference.

In German culture, business relationships are generally characterized by mutual respect, equality, and a focus on fulfilling contractual obligations. The concept of “Good faith” was applied with the obligation on each contract party to show goodwill for the other party while both parties are seen as partners on an equal footing. However, in Arabic culture, there is a more hierarchical power dynamic. The client, as the customer, is perceived as a superior, while the contractor is seen as a service provider. If the client doesn’t respond immediately, the contractor is expected to accept that.

The Arabic client, accustomed to this hierarchical relationship, had interpreted the German team’s repeated inquiries as a sign of disrespect or a challenge to their authority. This cultural misunderstanding led to a breakdown in communication and a delay in providing the necessary information.

Once the problem’s root cause was identified, the solution was simple: Both organizations agreed on a “Mission Success First” approach in which the needs of the project were the prioritized criterion for decision making. This new framework helped overcome the cultural differences and foster a more collaborative working relationship. By focusing on the shared goal of project success, both teams were able to work together more effectively and ensure the timely delivery of the software.

The importance of efficient communication when handling large projects

Effective communication is often highlighted as a key factor in project success. Based on your experience helping companies navigate project crises, what strategies do you recommend for improving communication among diverse teams and stakeholders in large projects?

Oliver F.Lehmann
Here are my recommendations for Effective Communication in Large Project Teams:

Develop precision in language and terminology, but don’t expect it from others: Training: Indeed, this is a major aspect of all my seminars. Accurate language improves project management dramatically, but most people in the field are poorly educated. Therefore, I recommend my students to be patient and open-minded to the often poor language accuracy of others.
Allocate Time for Communication and Documentation: Plan for overhead: When estimating project timelines, include time for meetings, communication, and documentation tasks.
Seek External Assistance When Needed: Mediators or facilitators: If communication breakdowns occur, consider bringing in a neutral third party to help resolve conflicts and facilitate open dialogue.
Establish Clear Roles and Communication Channels: Regular meetings: Schedule regular team meetings, both in-person and virtually, to discuss progress, address issues, and share updates.
Dedicated communication platforms: Use tools like Slack, Teams, or project management software to facilitate real-time communication and document discussions.

Clear roles and responsibilities: Define communication roles within the team to ensure that information is disseminated effectively.
Foster a Culture of Openness and Transparency: Encourage feedback: Create a safe environment where team members feel comfortable sharing their thoughts, concerns, and suggestions.
Promote active listening: Encourage team members to listen attentively to each other and avoid interrupting.

Be mindful of cultural differences: If the team is culturally diverse, be aware of potential communication barriers and take steps to address them.
Use Visual Aids and Tools: Diagrams and charts: Use visual aids like flowcharts, Gantt charts, and mind maps to illustrate project plans and progress.
Presentations: Conduct regular presentations to summarize project status and key findings.

Knowledge management tools: Implement tools to capture and share knowledge within the team, such as wikis or knowledge bases.
Set Communication Expectations: Define communication protocols: Establish clear guidelines for how and when to communicate, including response times and preferred communication channels.
Agree on communication styles: Discuss preferred communication styles (e.g., email, phone, in-person) and ensure that everyone is comfortable with them.
Address Communication Challenges Proactively: Monitor communication effectiveness: Regularly assess the effectiveness of communication channels and make adjustments as needed.
Resolve conflicts promptly: Address communication breakdowns or conflicts promptly to prevent them from escalating.

Provide training: Offer training on communication skills, conflict resolution, and cultural awareness.
Leverage Technology: Project management software: There are tools that help plan and track your project. Some are more favorable for traditional methods, in particular building WBS and network diagrams, that help bring predictability and order into projects. Other support agile approaches that are beneficial when the project is dominated by discovery and creativity.
Collaboration tools: These tools support real-time collaboration and document sharing.

Procurement portals: These tools help find contractors and work with them based on a mutually agreed upon contract.

By following these recommendations, you can create a positive and productive communication environment that supports the success of your large project team.

How does technology play a role in improving communication for large, cross-corporate projects?

Oliver F.Lehmann
Technology has revolutionized the way teams collaborate, especially in large, cross-corporate projects. By providing tools for real-time communication, document sharing, and project management, technology has become an indispensable asset for enhancing collaboration and ensuring project success.

An example: Tools for real-time communication allow teams to connect and collaborate in real-time, regardless of their physical location. This fosters a sense of connection and facilitates rapid decision-making. Add cloud-based platforms that enable teams to work on documents simultaneously, making it easy to share information and track changes. This eliminates the need for physical exchanges of documents and reduces the risk of errors or lost information.

Here are some ways technology plays a role:

Real-Time Collaboration Tools: Video conferencing enables face-to-face meetings, even when team members are geographically dispersed.
Instant messaging and chat: Provide real-time communication for quick questions, updates, and discussions.

Document sharing allows teams to collaborate on documents simultaneously, making it easy to share information and track changes.
Project Management Software: Task tracking Tools helps teams manage tasks, deadlines, and dependencies, ensuring everyone is aligned on project goals.
Communication features: Many project management tools include built-in communication features, such as discussion boards and notifications, to keep team members informed.
Virtual Private Networks (VPNs) and Remote Access Tools: Secure connections: VPNs create secure, encrypted connections between team members, allowing them to access company resources and communicate privately.
Remote access tools help collaboration and administration across the globe.
Translation And Time Zone Management Tools: Scheduling conflicts: Tools can help teams schedule meetings that accommodate different time zones.
Language barriers: For projects involving teams from different countries, translation tools can help bridge language barriers and ensure effective communication. Grammarly helps improve documents written in a foreign language.
Knowledge Management Systems: Centralized repository: These systems provide a central location for storing and sharing project-related information, documents, and knowledge.
Data Analytics and Reporting: Informed decision-making: Technology can provide data-driven insights into project progress, helping teams make informed decisions and identify potential issues.

However, the growing multitude of communication channels can lead to information overload, making it difficult for individuals to keep updated on communicated content. This can result in missed information, misunderstandings, and decreased efficiency. Another risk is the feeling of isolation of individuals, when communication is done using technology only.

By leveraging these technologies while considering their caveats, organizations can improve communication, enhance collaboration, and increase efficiency in large, cross-corporate projects. Technology has become an essential tool for breaking down geographic barriers, fostering a sense of shared purpose, and ensuring the successful completion of complex projects.

What are the most common communication barriers you’ve observed in cross-corporate projects, and how can they be overcome?

Oliver F.Lehmann
In 2017, I did market research on the question of what the most frequent causes of conflicts are in cross-corporate project business. The respondents said, the number 1 cause was different business interests. On numbers 2 and 3, causes were organizational and interpersonal incompatibilities between the contract partners. I published the results at https://project-business.org/research/conflicts-in-project-business.

In 2024, I did another research asking where the problems in projects occur – inside the organizations involved in project business or at the interfaces between them. Interestingly, respondents said that for small projects, the problems mostly originated inside the companies. However, the larger the projects got, the more the projects were caused at the interfaces between them.

I published the results at https://project-business.org/research/the-fault-zones-in-project-business.

In what ways can efficient communication contribute to risk management in large projects?

Oliver F.Lehmann
Effective communication is a cornerstone of successful risk management in large, cross-corporate projects. It plays a crucial role in identifying, assessing, and mitigating potential risks, ensuring project teams are prepared to address challenges and maintain project momentum.

Here are some ways effective communication contributes to risk management:

Early identification of risks: Open and transparent communication among team members can help identify risks at an early stage. By sharing information and discussing concerns, teams can proactively address issues before they escalate.
Improved risk assessment: Effective communication allows for a more accurate assessment of risks. By gathering input from various stakeholders, teams can better understand the potential consequences of risks and prioritize them accordingly.
Enhanced risk response planning: Clear and open communication is essential for developing effective risk management strategies. By sharing information and collaborating, teams can identify and implement appropriate measures to address identified risks.
Facilitated decision-making: Effective communication can help teams make informed decisions about risk management. By sharing information and discussing options, teams can reach consensus and develop a unified approach to addressing risks.
Improved stakeholder management: Clear and open communication with stakeholders is essential for building trust and maintaining their support. By keeping stakeholders informed about risks and mitigation efforts, teams can manage their expectations and minimize the impact of risks on the project.
Enhanced team collaboration: Effective communication fosters a collaborative environment where team members feel comfortable sharing information and working together to address challenges. This can help teams identify and mitigate risks more effectively.

Obviously, effective communication is a vital component of risk management in large projects. By fostering open dialogue, sharing information, and collaborating properly, teams can identify, analyze, and respond to risks, ensuring project success.

How do you assess the effectiveness of communication in a project that spans multiple organizations?

Oliver F.Lehmann
Evaluating the effectiveness of communication in a large, cross-organizational project is crucial for ensuring its success. Here are some key indicators and strategies for assessment:

Stakeholder Satisfaction: Surveys and feedback: Conduct surveys or interviews with stakeholders to gather their feedback on communication channels, timeliness, and clarity.
Observe interactions: Observe how stakeholders interact with project team members and assess if communication is open, respectful, and effective.
Project Progress and Milestones: Alignment with goals: Assess whether the project is progressing according to plan and if any delays or issues can be attributed to communication breakdowns.
Milestone achievement: Evaluate the achievement of project milestones and identify if communication challenges have hindered progress.
Document Quality and Completeness: Accuracy and consistency: Review project documentation, such as meeting minutes, emails, and reports, to ensure they are accurate, complete, and consistent.
Accessibility: Assess the accessibility of project information to all stakeholders, ensuring that everyone has the necessary information to contribute effectively.
Conflict Resolution: Timely resolution: Evaluate how quickly and effectively conflicts are resolved. Communication breakdowns often lead to conflicts, so timely resolution is a positive indicator.
Collaborative approach: Assess whether conflicts are resolved through collaboration and compromise or if they escalate due to communication issues.
Team Morale and Engagement: Employee satisfaction: Conduct surveys or informal discussions to gauge team morale and engagement. Poor communication can lead to decreased morale and reduced productivity.
Collaboration and teamwork: Observe how team members interact and collaborate. Effective communication fosters a positive and collaborative work environment.
Communication Channel Effectiveness: Utilization and satisfaction: Analyze the usage of different communication channels (e.g., email, video conferencing, project management software) and gather feedback on their effectiveness.
Timeliness and clarity: Evaluate how quickly and clearly information is communicated through different channels.
External Feedback: Client satisfaction: Gather feedback from external stakeholders, such as clients or partners, to assess their satisfaction with communication and collaboration.
Vendor performance: Evaluate the performance of external vendors or contractors in terms of communication and responsiveness.

By regularly assessing these indicators, project managers can identify areas for improvement and take steps to enhance communication effectiveness in cross-organizational projects.

What advice would you give to project managers who are struggling with communication issues in large, complex projects?

Oliver F.Lehmann
I have some recommendations for project managers juggling a lot and feeling like herding cats.

1. Clear the air: Make sure everyone knows the rules of the road when it comes to communication. Are there specific channels for different topics? Do you have a preferred style of communication (formal or informal)? Get everyone on the same page.
2. Foster a safe space: Encourage your team to speak up. Let them know it’s okay to ask questions, share concerns, or even disagree. A safe space is essential for open and honest communication.
3. Pictures are worth a thousand words: Sometimes, a simple diagram or chart can explain something better than a long paragraph. Use visuals whenever possible to make things easier to understand.
4. Set expectations upfront: Let everyone know what to expect in terms of response times and communication frequency. This helps avoid misunderstandings and keeps things moving smoothly.
5. Stay on top of things: Keep an eye on how communication is going. Are things flowing smoothly? Are there any recurring issues? If you see something, don’t be afraid to address it head-on.
6. Leverage technology: There are tons of great tools out there to help you manage communication. Project management software, collaboration platforms, and messaging apps can streamline things and make your life easier.
7. Don’t be afraid to ask for help: If you’re really struggling, don’t hesitate to bring in a facilitator or mediator. They can help you identify the root of the problem and find solutions.
8. Keep learning and improving: Communication is a skill that can always be improved. Look for opportunities to learn new techniques and best practices.

Remember, effective communication is the backbone of any successful project. By following these tips, you can create a more collaborative and productive work environment.

Reflecting on your three-decade career in project management training, how have communication strategies and project handling approaches evolved over time? What were the key challenges faced in the past, how have they been addressed in recent years, and what emerging trends do you see shaping the future of project management?

Oliver F.Lehmann
Over the past three decades, project management has undergone a significant transformation, driven by technological advancements, globalization, and changing business landscapes. Communication strategies and project handling approaches have evolved to meet these evolving demands.

Key Challenges of the Past:

Siloed teams: In the early days of project management, teams were often isolated from one another, leading to communication breakdowns and inefficiencies.
Lack of standardization: There was no standardized methodology or set of best practices for project management, leading to inconsistent approaches and outcomes.
Limited technology: The availability of project management tools and software was limited, hindering the ability to track progress, manage resources, and communicate effectively.
Indeed, I still remember when I got a car phone in my company car, which, despite a patchy call network for the first time allowed me to phone customers and my company when I was on a business trip without having to find a phone box. These times were long ago. As a single parent, it also allowed mе to stay in contact with my kids when I had to travel. I’m happy that these times have passed.

Addressing Challenges in Recent Years:

Agile and iterative approaches: The rise of agile methodologies has revolutionized project management by emphasizing flexibility, collaboration, and continuous improvement.
Technological advancements: The proliferation of project management software, communication tools, and collaboration platforms has significantly improved communication and efficiency.
Cross-functional and cross-corporate collaboration: Organizations have recognized the importance of cross-functional collaboration and have implemented strategies to break down silos and foster teamwork.
Risk management: Increased focus on risk management has helped organizations identify and mitigate potential challenges, improving project outcomes.

Emerging Trends Shaping the Future of Project Business Management:

Artificial Intelligence (AI): AI is being used to automate tasks, improve decision-making, and enhance project management capabilities.
Remote work and virtual teams: We learned a lot during COVID to improve our skills to work in virtual spaces. The increasing prevalence of remote work and virtual teams is requiring new approaches to communication and collaboration.
Sustainable Project Management: There is a growing emphasis on sustainable project management, considering environmental and social factors in project planning and execution.
Data-Driven Decision Making: The use of data analytics and big data is becoming more prevalent in project management, enabling data-driven decision-making and improved performance.
Ethical Considerations: As projects become more complex and impactful, ethical considerations are becoming increasingly important, requiring project managers to address social and environmental implications.
Cross-corporate work: It is a measurable trend that corporations outsource work today that they would have done internally still some years ago. This changes the nature of project management and brings new requirements to project managers (see https://project-business.org/research/market-report-trends-in-make-or-buy/).

Indeed, the field of project management has evolved significantly over the past three decades, driven by technological advancements, changing business landscapes, and a growing emphasis on collaboration, effectiveness, and efficiency. As we look to the future, emerging trends such as AI, remote work, and sustainability will continue to shape the way projects are managed. And the process shifting from cross-functional to cross-corporate will also go on.

Project managers who can adapt to these changes and meet these new challenges will be well-positioned to succeed in the evolving project management landscape.

Oliver F. Lehmann, Founder of the Project Business Foundation, MSc, ACE, PMP
Is a globally active trainer from Munich, Germany. He spent 13 years as a practitioner in customer projects, mostly in the automotive industry, before he began his business as an educator. He has two focus areas: 1. Preparing seasoned project managers for the coveted PMP certification offered by the Project Management Institute (PMI); and 2. Helping organizations and individuals improve the profitability of customer projects and make customers happy. Oliver wrote two books named SITUATIONAL PROJECT MANAGEMENT – THE DYNAMICS OF SUCCESS AND FAILURE and PROJECT BUSINESS MANAGEMENT. In addition, he wrote 60 papers that were published in the PM World Journal.