Globalization

RT-263 Topic Summary
RT 263

Overview

The steep rise of global construction market and declining domestic market is forcing U.S. construction companies to become global, simultaneously opening a vast field for study. RT-263 tries to comprehensively explain, synthesize, and prioritize the key drivers and critical success factors for engineering and construction firms to become truly global and increase the success of owners, and engineering and construction organizations in global context.

There is limited research focused on strategies for quantifying the globalizing performance of companies and moreover, no research on quantifying the globalizing performance specific to engineering and construction organizations. To fill this crucial gap, RT-263 developed a metric associated tool “Globalizing Self-Assessment Tool (G-SAT)” to strategically manage and analyze globalizing progress of a construction and engineering firm. Also a two-dimensional model is developed to represent globalizing index of engineering and construction companies.

The research approach included extensive literature review, interviews, and collection of case study statistical testing procedure. 

Key Findings and Implementation Tools

1 : Global Market

For engineering and construction organizations to globalize effectively they must evolve beyond users of global resources into ventures that effectively operate in and integrate into a global market. (RS263-1, p. 2)
Reference: (RS263-1)

2 : Two Key Dimensions of Globalizing

The engineering and construction industry globalizing index has two dimensions:

  1. Global Reach
  2. Global Integration (RS263-1, p. 5)
  • Global Reach – refers to scope of the company’s business and/or operations. To quantify an organization’s "Global Reach" the following four (4) Critical Success Factors (CSF) shall be known. 

    • Percentage of International revenue
    • Percentage of countries with a presence; significant operations or small local office
    • Regions where more than 5% of Total Revenue Earned
    • Percentage of Non-Domestic employees
 
  • Global Integration – globally integrated organizations shall have the following eight (8) attributes. In addition, the study identifies 46 Critical Success Factors (CSF) spread across these 8 attributes. The CSFs are detailed in the research report. 

    • Executive Commitment
    • Key Management Personnel
    • Work Distribution
    • Financial Management
    • Crisis Management
    • Environmental, Health & Safety
    • Learning & Knowledge Sharing
    • Quality Management Systems
Reference: (RS263-1)

3 : Global Integration Attribute Weighting (GIAW)

With the help of Analytical Hierarchy Process (AHP) the GIAW ranking were determined for the 8 global integration attributes as presented in the table below. (RS263-1, p. 7)
Reference: (RS263-1)

4 : Implementation Tool #1

IR263-2, User’s Guide to Globalizing Self-Assessment Tool (G-SAT)

This tool enables engineering and construction companies to examine their globalizing status and growth over time. It will also help them evaluate and plan globalizing tactics and strategies. The tool plots the organization’s results into one of the four quadrants of the "Globalizing Index."
Reference: (IR263-2)

Key Performance Indicators

Improved performance/achieved success, Globalization index

Research Publications

Globalizing Self-assessment Tool (G-SAT) User Guide - IR263-2

Publication Date: 07/2010 Type: Implementation Resource Pages: 25 Status: Tool

Building a Successful Global Engineering and Construction Company - RS263-1

Publication Date: 07/2010 Type: Research Summary Pages: 21 Status: Supporting Product

Globalization: Building a Successful Global Engineering and Construction Company - RR263-11

Publication Date: Type: Research Report Pages: Status:


Supporting Resources

Presentations (CII Annual Conference & Workshops)

Plenary Session - Building a Successful Global Engineering and Construction Organization

Publication Date: 07/2010 Presenter: Number of Slides: 11 Event Code: AC10

Implementation Session - Building a Successful Global Engineering and Construction Organization

Publication Date: 07/2010 Presenter: Number of Slides: 25 Event Code: AC10


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