Constructing an antiretroviral drug factory in Nigeria

A case study from an international perspective

Asoss Zaitali International Project Management

Chalmers University of Technology

Björn Tropf International Project Management

Chalmers University of Technology

Guðmundur Ingi Sigurleifsson International Project Management

Chalmers University of Technology

Hafez Shurrab International Project Management

Chalmers University of Technology

I. Executive Summary 1

II. Country and facility location brief 2 A. Political Analysis 2 B. Economical analysis 2 C. Social analysis 3 D. Technology analysis 3 E. Legal analysis 4

III. Cultural Analysis and Challenges Faced 5 A. Cultural diversity and its effect on our project 5 B. The indigenous people and cultural differences 5 C. Religious diversity 5 D. International project leadership 5 E. A call to project managers 6 F. Multi-cultural international teams 6 G. Virtual teams 6 H. Right attitude and motivating international team

members 7 I. Continuous learning in multi national locations 7 J. Corruption 7 K. Location of the medical plant 8 L. Business etiquette crash course 9

IV. Governance and Organisation 10 A. Governance Management 10 B. Organisation 12

V. Project Design, Delivery, Validation, Commission, Operation and Maintenance 14 A. Introduction 14 B. Stakeholder management 14 C. Risk management 16 D. Maintenance 17 E. Procurement 17 F. Quality control and further improvements 17

VI. Communications 19 A. Language and socio-economic barriers 19 B. Time differences and concepts 19 C. Political communication 19 D. Knowledge sharing 20 E. Project reporting 20 F. How to communicate in Nigeria 20 G. Approaching Business Meetings in Nigeria 20

VII. Critical success factors and Conclusion 20 A. Critical success factors 20 B. Conclusion 21

VIII. Appendix 21

IX. References 24

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I. EXECUTIVE SUMMARY This report gives evidence of the current developments that

are taking place in what is known as the heart of Africa, namely: Nigeria. It is our firm and prospective belief that, investing and building a business in Nigeria will be lucrative and a great return on investment. Furthermore, it will greatly benefit our company to step out of our comfort zone and work in areas that are remote and unforgiving.

This proposed project will be a joint venture with five other countries spanning a minimum of one year. Together with China, Japan, Germany, Greece, Italy and our precious Sweden, we have in this report proposed ideas for our organization as well as mapped out the specific functions of mentioned countries. By adhering to mention proposals forwarded by our own renowned organization, we hope to build a medical facility in Nigeria but also cultivate new leadership and management skills as well as venture into new innovative business markets in Africa. With the combined efforts of our upper management and the help from our esteemed colleagues, we can make our company Chalmcare an exclusive oasis in the heart of Africa. This experience will help produce new personalities that can be planted in our company in the nearby future. It will also act as catalyst in allowing a new pool of professionals in Nigeria.

In summary, the recommendations in this report propose the use of multi-cultural international teams from the six mentioned countries that will be working in unison with each other either on-site primarily or as virtual teams secondary. Our job is to build a medical facility that will host the antiretroviral drug Lamizido. The project proposal in this report will allow us to design, construct, validate and operate a manufacturing facility that is to be located in Lagos, which is one of the larger cities in Nigeria and home to a population of 18 million residents. Lagos is an excellent choice strategically as it lies in the coast right next to the sea and it also offers international airports. It also offers a certain degree of security since it lies the furthest away from any reported cities that have terrorist activities or criminal operating bases.

Furthermore, by conducting our business with a level of openness and transparency, we hope to eliminate or at least reduce any level of corruption that might take place within the confines of our company. This will allow us to keep our company’s good name and integrity, seeing as far too many international companies have had to shut their doors due to immoral and corrupt business activities in Africa.

A last recommendation is to host workshops and team-building activities right before the project that allows us to further enhance our relationship with the countries we are working with. This will ensure that we can do future projects with our colleague countries. This proposed project is an excellent way of making sure that we create a well-endowed and healthy organization that wants to perform and own its private success. The recommendations and solutions given in this report are by no means completely comprehensive, they will however prove to be key in deciding whether to extend to our African neighbors or not.

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II. COUNTRY AND FACILITY LOCATION BRIEF This section presents information on the country Nigeria

with respect to its political, economical, social, environmental and legal capabilities. The information available will make a case for why Nigeria should be our host country and will offer the reader the ultimate expression of why Nigeria truly is the heart of Africa.

A. Political Analysis The Nigerian republic consists of 36 states and the capital

territory, Abuja, is situated in the center, right in the heart of Nigeria. Different laws prevail in all 36 states, which together form a legal system that is heavily influenced by ethnic, religious and class differences. Most states adhere to the English common law in the south, which is followed by Islamic law that is found in 12 of the northern states and mixed with traditional law (CIA, 2013).

Nigeria gained independence from the United Kingdom in 1960 and has since experimented with five constitutions of which the last three were created during military regimes. Today the Federal republic of Nigeria is a democratic rule with a constitution that resembles the government of the United States, although holding on to many principles that were inherited from the British colonization (Jaja, 2004).

The first election took place in 1999 after the passing of the last tyrant in the country. Dr. Goodluck Ebele Jonathan led the People´s Democratic Party (PDP) to victory and furthermore held the office for three consecutive elections up to date. Debates about rigged elections and corruption have however forced the Supreme Court to intervene in order to validate the presidential election on all three occasions. Corruption is high and politicians seem to devote their loyalty to interest groups with deep pockets rather than their own political party (OECD, 2013).

B. Economical analysis The local currency in Nigeria is naira (NGN), which has

been subjected to a lot of fluctuations due to military regimes. The GDP mainly consists of the oil sector, which is the second largest in Africa, but mining and agriculture also play a large role in keeping an impressive 7.19 % annual compound growth for the last four years (Taborda, 2014).

1) Analysis of Macro-Trends on a Country level The Nigerian steady GDP growth has been compared to a

base from 1990 but in 2013 Nigeria revealed a rebased GDP figures that showed an 89 % increase in the size of the economy (Atuanya & Augie, 2014). That jump was enough to put them inches ahead of the South African economy, subsequently making it the largest in Africa. However having a population three times larger than South Africa this success still shows lack of efficiency and proper infrastructure to lift the Nigerian population out of the increasing poverty that is estimated to reach 27.9 % in June 2014 (Taborda, 2014).

The pharmaceutical industry makes up for 2% of the GDP or approximately 7.396 billion USD in 2012. Over 128 drug manufactures in Nigeria produce around 60-70% of pharmaceutical products for West-Africa sub region employing over 600.000 people. Foreign investors have already made their mark on the industry between 2000 and 2008 helping it to keep a steady 12% annual compound growth in 2011. Even though the numbers are this high there are only 71 pharmaceutical

companies registered as active members of the Pharmaceutical Manufacturing Group in 2012 and only 8 of them are listed on the Nigerian Stock Exchange. There is still plenty of room for R&D in this sector as evidence show that little or no pharmaceutical innovation is taking place in Africa as well as Nigeria having the lowest local drug production globally (Siyanbola, 2012)

2) Incentives for Investors Back in 1995 the Nigerian Investment Promotion

Commission (NIPC) created a new market for foreign investors that guarantees them a 100% foreign ownership in most industries except for gas and oil making it possible for them to repatriate all profits and dividends. In terms of incentives for investors the Nigerian government has encouraged non-oil private sectors to play a larger role in the economy by putting a fixed corporate tax rate at 30% along with making annual capital allowances available. These allowances can amount to 10% on buildings, 25% on plants, and 20% on furniture and fittings. On top of that companies can avail of allowances during the first year up to 50% on plants. To summarize that up for a pharmaceutical plant, capital allowances can only reduce taxable income by two thirds each year and losses can be carried forward by four years (Doody, 2010-2011).

Location and the type of a business should be carefully chosen as it could mean additional incentives and lower taxation. The Nigerian Export Processing Zones Authority (NEPZA) has currently 11 operating Free Zones and 13 more on the way whose main purpose is to create incentives for businesses who create products for export. Companies that are located in the zones apply to different rules as they have duty-free and tax-free import of raw materials, machinery, consumer goods and other components for the creation of intended export products. The Nigerian government also recognizes many industries that can qualify for a pioneer status that grants them a 5-year tax holiday and up to 7 years if the business is located in an economically disadvantaged area. In order to qualify for a pioneer status a foreign company needs to invest a minimum of 40.000 USD. The company can then implement capital allowances as soon as the pioneering years have ended (Doody, 2010-2011).

Foreign industries involved in R&D can additionally deduct up to 120% of cost of work in Nigeria and up to 30% for engineering and chemicals they are eligible for a 20% tax credit from the government and if the company is located 20km or more away from sufficient electricity and water facilities they are entitled to deduct 20% of the cost of providing these basic needs. This is offered to encourage companies to reinvest in the country and is in many cases considered necessary since the infrastructure in the given area is often not up to standards (Doody, 2010-2011).

The NIPC set up the One Stop Investment Centre (OSIC) in the capital Abuja to act as a platform to bring together relevant governmental agencies with investors to provide efficient and transparent services and overall smoothen out the investment process. These services include administrative procedures for the issuance of Business Approvals, Permits, Licenses, company incorporation and sufficient data and information on the given industry or sector. The OSIC brings in 16 agencies that are or can be involved with the investment process. They are listed in figure 8 in the appendix. Due to the existence of OSIC many bottlenecks and roadblocks have been removed and as a result of that Nigeria has become the highest in income of Foreign Direct Investment in Africa due to large

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investments in all sectors. USA, China and the UK amount for most of the investments in Nigeria followed by smaller players like Italy, the Netherlands, France and South Africa (Doody, 2010-2011).

C. Social analysis The official language in Nigeria is English as a result of

British influence over the years, but on the other hand, 478 other languages are spoken across the country. Being the most populated country in Africa with around 170 million people, Nigeria experiences a growth rate estimated at 2.3% a year. Nigeria is also home to a vast variety of ethnic diversity in terms of customs, crafts, art, language, music and dance. There are over 250 tribes, which can be divided into 50% Muslim, 40% Christian and 10% holding on to old traditional beliefs. The majority groups are Hausa in the North, the Ibo in the southeast and the Yoruba in the Southwest. Other major ethnic minority groups are the Fulani, Idoma, Igala, Igbirra, Nupe, Kanuri and Tiv in the north, The Efik, Ekoi, Iboibio and Ijaw in the east, and finally the Edo, Itsekiri, Ijaw and Urhobo in the west (Doody, 2010-2011).

1) Demography Nigeria is Africa’s most populous country and home for

one-sixth of Africa’s total population (CIA, 2013). The country’s inhabitants are also rather young with the median age of 18.2 years old. As for literacy levels only approximately 60 % of the total population know how to read and write with the majority being males (CIA, 2013).

2) Equality between genders in work Women make up almost half the population in Nigeria

which means a potential female labor force of 50 % but sadly the real value is today only at 31 % with the majority of women working in the formal sector being minimal. Instead you can find women being mainly involved in petty trading, street hawking and selling cheap merchandise on the streets (Makama, 2013). According to statistics presented by author Makama (2013) an entire 78 % of the women are involved in the informal sector which are farming and petty trading as main activities, furthermore the economic value in the work made by the female population is estimated to be around 30 % of the entire country’s gross national and yet despite this fact, women earn half as much as their male counterparts (Makama, 2013).

3) Access to medical help The number one killer in Nigeria is HIV/Aids with

approximately 240 000 people dying each year, this puts Nigeria at number one in terms of deaths per year in the world with South Africa on a second place (CIA, 2013). Reports show that there are only 14 teaching hospitals in the country with six of them being poorly and inadequately equipped for patients (Hayes, 2013). Furthermore, the number of physicians available in the country is amazingly low giving Nigeria one of the lowest shortages in the world with the number being 0.4 physicians per 1000 people. This is primarily due to medical professionals leaving Nigeria each year in order to practice in more developed countries (Hayes, 2013).

4) Dangerous regions As of the moment, The Foreign and Commonwealth Office

(FCO) advises against all travel to the North East region of Nigeria due to reports on increased terror activities. There is evidence of a terrorist organization called Boko Haram having their operating base specifically in the northeast region of Nigeria. The majority of attacks occur particularly in Borno

and Yobe states where random attacks and kidnappings seems to be part of everyday life (CIA, 2013). Figure 1 in the appendix shows what specific states are in danger, the map will be highly beneficial when deciding where to strategically locate the medical facility and also what routes to use for transportation of medical goods and resources.

D. Technology analysis Nigeria is known for a poor overall infrastructure and the

government is still far behind schedule to provide basic needs for the general public. Presidents Jonathan´s administration claims that they have identified Nigeria's weak spots and taken necessary steps to deal with them, following the vision of becoming one of the top economies in 2020 in the world.

1) Electric power Since 2005 the energy sector has been increasingly

deregulated and manipulated by the government to attract private investors but now arrangements are being made to cut them out of the picture to approach the goal of ensuring a sustainable generation of electricity for the public. As a result of this, lack of electricity in many parts of the region can be traced back to the numerous foreign investment and industrialization in the country that consume most of the newly found power generated. Back in 2008 there were several disruptions to gas supplies along with drops in reservoir water which caused many blackouts in some regions directly affecting the manufacturing sector. The government tackled this head on by launching a USD 40-60 billion plan for the next six years along with emergency repairs (Doody, 2010-2011).

2) Transportation Imports and Exports go mainly through two major cities,

the capital Abuja or Lagos in the south. The national carrier for Nigeria is Virgin Nigeria, which operates internationally from Lagos, London, Johannesburg and the UK both by air and sea. International airports can be found in the capital Abuja and Lagos Murtala Muhammed but domestic airports are almost 70 across the country including the ones that are simply fields of grass or dirt. From Lagos, goods can be transported through 8.600 km of channels and rivers. The government is currently working with the private sector to revitalize many of the major ports in Nigeria to boost trade and accessibility. In addition they hope that this partnership will bring life into the Nigerian railway network in an attempt to reopen railway links between Nigeria´s seaports and inland container depots to take some pressure off highways and roads. In total there are about 3.505 km of narrow railway lines, unfortunately not suitable for heavy freight transferring. Therefore most transfer of goods is done with trucks who drive on some of the 193.000 km of roads that stretch across Nigeria but barely 30.000 km are paved and most of those roads have seen better days due to heavy traffic and lack of maintenance. Priorities have been set to maintain larger road networks and development of highways especially around Lagos (Doody, 2010-2011).

3) Telecommunication Although Nigeria has the fastest growing

telecommunication sector in the world with an annual growth of 125% annual growth since 2000, they are still a far behind other nations. Radio still remains the key source of information for the general public because television viewing and Internet usage is mostly concentrated in urban areas. The Nigerian Communications Commission (NCC), an independent regulator established in 1992, has turned the telecoms sector into a real success story in a short amount of time. The industry

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gained ground back in 2001 when mobile operators entered the market followed by increased foreign investments. In 2007 the NCC increased their efforts by instigating reforms leading to hundreds of companies offering telecom services, thus boosting the listed telecom density from 29.98% to 56.3% in only three years, which sums up to a total of 79 million subscribers. Despite these efforts the NCC estimates that further foreign investments of 25 billion USD will be needed to achieve a 100% telecom density as planned by Nigeria's vision for the year 2020. NCC has made similar efforts in Internet usage where the most recent reliable estimates show almost 24 million users in Nigeria. As mentioned here above, one of the incentives offered by the State Accelerated Broadband Initiative (SABI) is support to the private sector to build and operate a broadband infrastructure in major urban areas. Meanwhile the Rural Broadband Internet Access (RUBI) puts their efforts in encouraging those Internet providers to extend their connectivity to rural areas (Doody, 2010-2011).

4) Environmental analysis Nigeria is located on the west coast of Africa with a total

land area of 923.000 square km and 853 km of coastline. Neighboring countries are Benin in the west, Niger in the north along with Chad and Cameroon in the east. The terrain consists of lowlands, swamps and tropical forests in the south, hills and plateaus in the central regions and followed by vast plains and smaller deserts in the north. The far north can see as little as 508 mm of rain per year, the center regions receive around 508 - 1524 mm per year while the south gets 1524 - 2032 mm of rain per year where the rainforest eases the access to fresh water swamp. Out of these three regions the most developed one is obviously the south where all the major industries station themselves alongside the rich oil grounds outside the south coast. The major cities are Lagos situated in the south-west with a population of around 20 million people, Kano in the north with 3.6 million people, Ibadan in the south-west with 3.5 million people, the capital Abuja in the center of Nigeria with a population of 3 million people, Kaduna which lies between Abuja and Kano with a 1.6 million people and Port Harcourt in the south with 1.1 million people (Doody, 2010-2011).

Climate changes can vary between regions despite the fact that Nigeria lies mostly within a tropical zone. Two wind currents affect Nigeria. The northeast current carries hot and dry climate along with some fine dust from the Sahara Desert and the other one is. The southwest current however brings cloudy and rainy weather from the Atlantics Ocean. Due to these currents humidity is high along the coastline and temperatures reach up to a staggering 32°C. Further inland the weather can be split into two seasons, a relatively lower temperature raining season from April to October and then higher temperatures up to 38°C followed by cool nights down to 12°C in the dry season from November to March (Doody, 2010-2011).

E. Legal analysis As mentioned earlier, the legal system of Nigeria was the

subject of many different influences and rulers. Oyakhiromen (2009) points out that the traditional settlements in Nigeria had their own legal systems until the British and Muslims entered the country and established their own legal system. For this reason there are now four different law systems in place:

• The Customary law from the traditional settlements

• The English law due to the colonial background

• The Common law after the independence

• The Sharia (Muslim) law in the north of the country

According to Oyakhiromen (2009) the resilience of the customary law can be found in its flexibility and capacity to adapt to the latest social conditions. For this very reason it is still in place. As (Doody, 2010-2011) points out, Nigeria is a free enterprise country, where regulations are only set in place if they are necessary for the national interest. The federal law applies for all companies that are established in Nigeria, i.e. the same law applies throughout Nigeria for companies. Nonetheless this does not mean that companies with foreign investors do not have to comply with further laws. Instead they for example need to be registered with the Nigerian Investment Promotion Commission (NIPC) and obtain a Business Permit from the Federal Ministry of Internal Affairs (FMIA) before operating (Doody, 2010-2011).

As an addition to the taxation for foreign investors mentioned above, the Nigerian taxation system is split up into three different parts or tiers within the government. These are Federal, State and Local taxation, with each one having a clear area of governance. Some of these taxes are double taxation agreements with number of countries designed to ensure that the tax payable on Nigerian company profits being paid out are reduced to the amount of foreign taxes paid abroad and vice versa. According to (Doody, 2010-2011) the “importance of tax regulations cannot be overemphasized” if a company wants to operate in Nigeria. All transaction with ministries, departments and agencies need to be supported by an evidence of a Tax Clearance Certificate. This certificate can only be obtained if the last three years of tax assessment have been fully settled. The Federal Board of Inland Revenue (FBIR) collects the Value Added Tax (VAT) at a low rate of 5%.

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III. CULTURAL ANALYSIS AND CHALLENGES FACED This section presents a cultural overview of Nigeria and

challenges faced when trying to set up effective project teams in the country. This section will offer the reader a better understanding of what is required in order to realistically manage a team in the third world and how religious and cultural diversity needs to be respected and not neglected.

A. Cultural diversity and its effect on our project Multi-cultural teams do not necessarily always present

advantages; in some cases they hold disadvantages such as lower cohesion and social integration. Ochieng and price (2009b) report that multi-cultural teams cope often with cultural differences that can cause poor performance in projects the authors argue that this is due to higher levels of emotional conflict and different beliefs and worldviews. The challenges described usually occur in co-located teams, teams that are dispersed geographically encounter a set of other difficulties such as lowered ability to gain trust and confidence since face-to-face communication is completely or partially absent (Ketan Luhar (cited Ochieng & Price), 2012). Dispersed teams perceive it as far more challenging to create interpersonal relationships compared to its co-located counterparts. This results in complications when managing team members at a distance (Ketan Luhar (cited Ochieng & Price), 2012). As a precaution and a matter of flexibility, we will have scouts and members on-site to maintain relations with stakeholders as well as virtual teams that provide influx of plans and information that would otherwise be difficult to get a hold of in Nigeria. These recommendations make sure that project management is central in being able to deliver the project. Furthermore, we intend on coping with diversity by offering culturally-aware leadership over teams that show effective cross cultural communication and that possess the conviction to respect, understand and cooperate with one another.

B. The indigenous people and cultural differences According to Muriithi (2003) there are numerous

implications to international projects in African countries due to different worldviews. In his report he discusses methods that will yield benefits in the long run for when setting up developmental projects. Muriithi (2003) recommends that as managers we remain tough when bargaining in order to successfully acquire and keep project resources. According to Mutabazi (2003) Africans behave according to a model called African Circulatory Management Model: “it is a model where goods, people, energy, workforce, services and information have to circulate, to be exchanged or shared between individuals and communities” (Mutabazi, 2003). Furthermore he explains that in most African countries, this model is rooted in their communities and is something inherited by their ancestors and elders, and the elderly are according to Ogbonna (2010) very cherished and deeply respected for in the Nigerian community.

By servicing team member obligations to the community through welfare funds and help desks, we can integrate project commitments into the daily life and remind members that the project extends not only into the confines of work but also out to the people we wish to serve. The cost of these services should be planned for in project budgets. A second wise recommendation given by Muriithi (2003) is to completely remove inequities in pay between that of local and expatriate employees. This will remove any injustice or doubt in the work

given to both sides. Furthermore, the author states the importance of letting top management feel that they are in control of the project, this means both the overseas top management and also the elders that are part of the indigenous Nigerian community (Muriithi, 2003). By reminding ourselves to focus on the cultural complexity and reduce all “us and them” prejudices, we can launch projects where everyone feels they are on equal footing. It is paramount that we consider relations between people as part of our work in Nigeria. Striving to enhance the motivational orientation towards risk, self-definition, environment and attitude of time is perhaps the greatest criteria for successfully completing our proposed project plan.

C. Religious diversity Religion has an uncanny ability to literally bypass any legal

or logical frame of mind. Traditional Africans all have strong ties and value for that which is sacred and religious. According to Ogbonna (2010) indigenous Africans hold religion as an integral part and not an independent one. In Nigeria there is an even divide between Christians and Muslims. Mutabazi (2003) even goes so far as to claim that Africans find it impossible to exist without religion. If we connect the love for religion with the Nigerian concept of time we find that time is never essential, meaning that for us to make a successful business that is made for and together with the Nigerian community we have to adapt a flexible time schedule that allows allotted time for social interaction and religious prayer. A practical solution will be to offer proper spaces or rooms within our workplace where members can take time off to perform religious duties such as praying or reading. This will hopefully encourage all members to come to work instead of taking the day off or take detours to work.

D. International project leadership The best type of leadership in the construction sector in

Nigeria is according to authors Odusami & Iyagba & Omirin (2003) a consultative autocrat. The authors cross-checked several construction projects to see if there is a relationship between leadership, team composition and construction performance in Nigeria, what they found is that leaders that absorb information input from team members but go with the final decision make the best fit. The least effective style of leading was autocratic leadership in which the leader has overall authority with little to no input at all from team members (Odusami & Iyagba & Omirin, 2003). Furthermore, an international manager needs to be able to recognize cultural complexity in cultures, meaning different values, assumptions that differ from culture to culture. Not focusing on complexity will only hinder the managers ability to manage an effective multi-cultural team explains (Ketan Luhar (cited Ochieng & Price), 2012).

Furthermore, being familiar with cultural issues is a virtue in itself, it will help the manager plan projects that improves overall efficiency in multi-cultural groups and to avoid any conflicts that might arise in the planned future (Ketan Luhar (cited Ochieng & Price), 2012). The recommendation for our project is to assemble a team that consists of preferably both professionals from our overseas company and professionals from African countries, predominantly people originally from Nigeria. This will smoothen the time it takes to set up a working team and running office as well as allow for better negotiations with the local community due to us having members that possess our project “know-how” and members

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that know they’re way around the country. The Swedish representative as project coordinator and Chair will have to incorporate both sides within the project and ensure that the communication between the parties is effective. Moreover he or she will have to be work together with our Chinese and Japanese representatives that will be in charge of staffing and training project members. It is important that we ensure our stakeholders that we are able of effectively communicating and managing our project and team both within our CIPD organization and our host country.

E. A call to project managers Project management practices in Nigeria is still in its

infancy compared to its counterparts in the west, project management methodologies such as Six Sigma, Agile, PMI and Prince have yet to be implemented in most African countries. This is simply due to differences in resources, knowledge and attitude. The methodologies are most likely familiar to some students in the country albeit to a very small extent, which is why there is an increasing brain drain in the country’s academic world where scholars and professionals are leaving for other more developed countries (Odusami & Iyagba & Omirin, 2003).

Furthermore, nearly all professionals within the construction company that work in Nigeria practice project management second to their primary professions as architects, civil engineers, builders and estate & quantity surveyors. They usually offer management practices as consultant services, as a result only a small concentration of practitioners exclusively practice project management (Odusami & Iyagba & Omirin, 2003). Furthermore, the majority of practitioners that do come in contact with project management practices usually do so experientially on the job since there is a lack of a professional body that regulates project management in the construction sector in Nigeria (Odusami & Iyagba & Omirin, 2003).

The Chinese representative will have a key role in the responsibility for the project management. Because China is always trying to achieve new heights in terms of project management and creating new benchmarks, like the 30 floor building that has been built within 15 days, the project manager can have a positive impact on the success of this endeavor. Moreover he or she will be able to introduce the project management methodologies from a practical point of view.

One problem that has still to be faced is the fact that most Nigerian professionals that have project management qualifications have obtained them overseas, meaning that the likelihood of these professionals ever returning back are slim since no incentives are given to make them stay in Nigeria (Odusami & Iyagba & Omirin, 2003). However, thanks to major advances in communication technology; virtual teams are becoming more and more widespread in international projects.

F. Multi-cultural international teams With the onset of virtual teams and the development of new

communication software, individuals can literally work from their home in UK together with their counterparts in far off African countries. Maznevski et al. (2010) describes a group of people from different cultures working in a mutual organization and trying to achieve the same goals as a multi-cultural team. Our medical plant is a company that works internationally, according to Butler & Zander (2010) firms that operate on a global scale will find multi-cultural teams as

beneficial since they offer certain flexibility and culture sensitivity that surpasses teams that consist of mono-cultural members.

The use of a multi-cultural team is highly recommended for our project in Nigeria. It will help transfer experience and knowledge into the project and instill project maturity wherever it might be lacking. It will also act as an incentive to members who want to make an international career in terms of boosting one’s private career. Furthermore, due to project management being relatively new in African countries (Odusami & Iyagba & Omirin, 2003) having the know-how from our overseas company will compensate for competence missing in Nigeria. It is also our recommendation that the use of a virtual team will allow us to improve both the ability of the local Nigerian project members as well as improve and document our understanding of working in the third world.

Since the representatives from our board come from six different countries with least two major time zone differences, i.e. Europe and China/Japan, we need to look closely at the possibility of introducing virtual teams. The setup of the board will be discussed in detail in the organization chapter.

G. Virtual teams In the article written by authors Bosch and Rispens (2003)

virtual teams are defined as geographically dispersed teams made up of individuals who perform tasks interdependently yet work towards a common goal, the majority of communication is also through the use of technology. While we plan for our project team to work on-site, the use of virtual teams combined with fieldwork will enable better flow of experience in an otherwise turbulent and dynamic environment (Bosch & Rispens, 2003). A virtual team in a traditional sense usually involves participants from different walks of life and cultures, they also have a low team history and perform work on non-routine tasks (Bosch & Rispens, 2003).

While virtual teams are highly advantageous, our priority as a company is still honing and improving our connections with the Nigerian community. According to Bosch et al. virtual teams are structures with lateral and weak relationships (2003). This means that virtual teams will not be a primary function in our organization but a secondary one. Furthermore, author Berry (2011) promises that virtual teams offer lower costs and better utilization of resources which is very helpful in an environment where resources are scarce and hard to get by. The only complication that the use of virtual teams might bring is the need for standardized and efficient communication systems that offer stable and secure storage of data and retrieval systems. This can be troublesome especially considering the lack of a well-built Internet infrastructure in the country. It is therefore our recommendation that, until we can confidently secure processing power and stable connections in Nigeria that the majority of our virtual team communication uses e-mails with attachments as primary medium of communication. All other communication will preferably be face-to-face and on-site. With the time differences between China/Japan and Europe, it is our advice to relocate the board members to Nigeria for the first two weeks of the project so that all project members can agree on common communication rules. The relocation can be increased for more weeks if necessary to show that everyone involved is pulling on the same rope and therefore presenting the right attitude.

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H. Right attitude and motivating international team members Maznevski et al. (2010) describes several positive outcomes

that come from multi-cultural teams. The increased diversity allows for increased creativity, better adaptability and higher productivity. The explanation for this is due to the members having different modes of perception, experience and mental behaviors that allow them to have different perspectives on matters (Maznevski, 2010). The differences in problem solving abilities will give rise to positive synergies that will be further increased by being able to work in new environments with new tasks. The job enrichment experience will improve and build upon whatever knowledge and skill members previously held argues Maznevski (2010). There will always be a challenge of ideas and new insights and perspectives that will keep learning in the project motivating, satisfactory and enriching which will in return improve overall motivation and attitude in team members. This enables a longer input period as compared to a mono-cultural team (Maznevski, 2010).

To conclude, it should therefore be our top priority to select and employ people who possess the right attitude towards working in multi-cultural international teams. Together with our host country, we have a total of at least six different country representatives that all need to produce results synergistically in for what will be for most of them; unfamiliar territory.

I. Continuous learning in multi national locations Harvesting project knowledge requires detail and

improvement to format, process and use of lessons learned (Schindler & Eppler, 2003). Without the leadership of a proper management, the methods required to document learning will remain ineffective. In order to systematically manage project learning, a great deal of discipline, motivation, know-how and debriefing skills is required, explains Schindler and Eppler (2003). The authors have in their article described key success factors when managing lessons learned. The first key factor is to regularly capture important project experiences when reaching milestones. The second factor is to gather lessons learned graphically and structure it accordingly, e.g. in a time line with mistakes, successes and insights in orderly fashion. Other factors are to gain commitment, ensure interactive evaluation of the experiences and have a neutral moderator to process the lessons learned (Schindler & Eppler, 2003). The most difficult problem with working in Nigeria will be finding appropriate time slots for when members can properly document project insights considering how future planning is almost frowned upon (Mutabazi, 2003). Schindler and Eppler (2003) both agree that: “A permanent, conscious and systematic gathering, analysis and communication of project experiences requires an adjustment of the role understanding of project teams, as well as reconsidering the final reports and their main functions”.

J. Corruption As earlier stated in the PESTEL analysis, corruption is

extremely high in Nigeria and as such we will refrain from repeating the obvious and get to practical solutions that will help combat corruption. We will present the most common forms of corruption and how we intend on preventing them from affecting our project negatively. These solutions are by no means answers that will stop corruption completely in Nigeria but will hopefully allow a level of transparency and integrity in our project.

The first obstacle is overcoming bribery. These include kickbacks, gratuities, payoffs, sweeteners and greasing palms as explained by Olagunju (2012). To combat this we must have a high level of transparency and accountability in all our transactions, this is especially important at the higher level. We will plan in a small budget surplus that will reduce any bumps at the lower level, this will be taken care of assigned front men that are not directly involved in the project. The second obstacle is exposing fraud; this involves trickery, swindle and deceit, counterfeiting, racketing, smuggling and forgery (Olagunju, 2012). Large and difficult to manage projects all have one theme in common and that is fraud. By having tight security schemes and routine controls, project “pit-stops” and weekly check-ups together with binding contracts that are legally devoid of any possible “loop-holes” we hope to minimize any attempts at fraud, the contracts will specifically be ICC model contracts.

Perhaps the biggest difficulty will be handling embezzlement. This is theft of public resources by public officials as defined in the article written by Olagunju (2012). The author reports that embezzlement is one of the most common ways of accumulating economic gain, he reasons that this is perhaps due to lack of strict regulations. Although we are a privately funded company we can still be subjected to embezzlement by buying resources that are a result of such activities. It is very difficult to bypass this type of corruption so making sure that we have an open business atmosphere is important. Making sure that we abide by anti-corruption laws, that we avoid bribing public servants, that we make sure that the standard of all goods and resources that come in and out of our company are clean will go a long way in avoiding feeding the corruption frenzy.

A fourth method of corruption is perhaps the most direct one, namely extortion by the use of coercion, violence or threats (Olagunju, 2012). One of our principles as a company will be to never negotiate with terrorists or terrorist organizations, make sure that none of our funds or resources will aid such organizations in any form or way and also to never succumb to extortion or means of extrapolating knowledge of criminal activities in Nigeria. This is our recommendation if we are to work in Nigeria using moral and just causes. If we send in employees from our overseas company, we make sure that they are carrying proper documentation enforcing the fact that they have right legal documents and working permits given by the British consulate and embassy. This is to stop extortion from immigration and custom officers as well as police staff who all are notorious for using means of extorting money (Olagunju, 2012).

Two lesser-known forms of corruption are favoritism and nepotism. The first is a human tendency to favor friends, colleagues and trusted partners whilst the latter is bypassing application or regulations by directly giving undue preference to family members as explained by Olagunju (2012). Overcoming these two types of corruption is rather easy within our internal organization seeing that we are working with employees that have nothing other than their competences in common. However, when we are working on-site in Nigeria it is important that we avoid having a proclivity towards any of the aforementioned methods. We recommend giving jobs to people who carry merit rather than people who happen to be in our radar.

To summarize, it is crucial that we treat corruption as a serious threat to our project as it will prevent us from spending

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money efficiently. It is not uncommon for projects to fail due to corruption, this is especially apparent in larger organizations that differ from smaller ones. Larger organizations have a larger network of information being shared and distributed thus making decisions making across the board more difficult. It is therefore as mentioned earlier; important that we have a level of openness, transparency, integrity and intuition when doing business with other businesses.

K. Location of the medical plant The decision on where to build the medical plant has to be

made from various perspectives. The categories we will look at are:

• Starting a business

• Dealing with construction permits

• Registering the property

• Enforcing contracts

• Transportation

• Water and electricity

• Security

While we must ensure that whatever location we pick, it must respect the aforementioned criteria as well as offer a secure location from which we can safely produce our antiretroviral drug. The working conditions need to meet if we are to build and operate a complex facility that abides by world-class pharmaceutical standards. While our proposed facility will include necessary administrative and training facilities to support import of raw materials for production, it is still paramount that we weigh all different accessible routes in order to maximize logistics and transportation methods. The information presented will help us decide what the course of action should be. For the first four categories we are comparing data from figure 6 in the appendix.

While the largest city and state, Lagos and the capital, Abuja, come to mind first, there are other possible states that provide certain benefits. These are: Borno, Gombe, Jigawa, Kebbi, Koji and Yobe.

1) Starting a business In the capital Abuja, the procedures, time and cost for

starting a business are the lowest (5 procedures, an average of 22 days and a cost of 58,5 in relation to the income per capita.) On average there are 7.4 procedures, a time of 30,3 days and a cost of 67,5 % in relation to the income per capita. There in this category, Abuja is a clear winner with Koji taking the second place.

2) Dealing with construction permits In this category, Abuja portrays a different picture. The

average of procedures in that perspective is 14, the average time 108 days and the average cost 561,6 % of the income per capita. The cost for the capital is here at 950% of income per capita, and therefore much higher than the other states. Lagos, the largest city and state has a better cost of 580% of income per capita, which is a bit above average, but shows a very high time of 350 days, i.e. more than three times the average time. The winner in this category is Jigawa, with the lowest procedures of 10, a time of 47 days and a cost of 396% of income per capita. Koji again takes the second place.

3) Registering the property The procedures do not diverge so much in this category.

The average is 9.6. Lagos shows the highest with 13 procedures. The time is very low of Borna and Gombe, with 14 and 16 days respectively and a very high value of 195 days for Kebbi. The average is 62,4 days. The cost in % of the property value is at an average of 25,8%, with Kebbi showing a very high cost of 120%. Borno, Jigawa, Abuja, Joji and Lagos revolve around 15 %. The winner for this category is Gombe, followed by Borno.

4) Enforcing the contracts All procedures in the area are at 40, with Lagos being the

exception with 39. The average days are 399,8, with Jigawa having the lowest (261 days) and Koji having the highest (534 days). Abuja has 381 days and Lagos 457. The costs in % of the claim are between 26,1 (Yobe) and 42,9 % (Abuja) with the average 30,8 %. The winner here is Yobe followed by Kebbi.

5) Transportation In terms of international airports, only the following cities

are available: Abuja, Enugu, Kano, Lagos and Port Harcourt. The list of international harbours is even shorter: Lagos and Port Harcourt. This means that any international shippings will have to be transported by either trucks, railways or water channels. As the railway system is quite bad for heavy transportation, the easiest choice would be trucks.

6) Water and electricity While there is no clear source that reports which cities have

the best access to water and electricity, it is common knowledge that the access to water and electricity is better in the urban areas than in the rural areas and that cities with harbors and airport tend to have a secure and more reliable electricity grid. Moreover a correlation between the areas of safe travel and the secure electricity grid can be made, as the government controls these parts. In this regard Lagos and Abuja would be the best choice.

7) Security From the security aspect, only cities within the “green”

zone are safe for travel as can be seen in figure 1 in the appendix. This means that the cities within the following states are not suitable for the plant: Borno, Gombe, Jigawa, Kebbi, Yobe seeing that they are “red” zone countries thus leaving only the following states for our venture: Abuja, Koji, Lagos.

As a result our recommendation for the city is Lagos, if a lot of material has to be imported into the country and an expansion is planned. Although the city is quite expansive it provides both an airport and harbor and only ranks low in terms of the Dealing with construction permits and registering the property categories. It is average for the starting a business and enforcing contracts and ranks very high in the transportation and security area. Finally it provides a secure access to water and electricity.

Abuja is also a good choice, less expansive than Lagos but with a worse transportation situation. Nonetheless, as it is the capital this might improve in the future. Koji is well ranked in all areas except transportation, but we believe that the city (and state) is not well fit for a medical plant. There are no other chemical plants in the area and the overall business situation is poor. It might be a good place for an on-site extension though; it is definitely recommended that we consider it in the future depending on our success with the first project.

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L. Business etiquette crash course 1) Meeting People The most common way of greeting is with a handshake and

a welcoming smile. Men tend to place their left hand on the other person’s shoulder while shaking hands this is to show sincere pleasure and a level of comfortability with one another. It is also rude to rush the greeting process, as this will only make the other person view you as impatient and distrustful. Taking one’s time and asking about the health of the person or his/her family will go along way. Furthermore, close friends are often seen kissing or hugging when meeting, if you don’t see yourself as a close friend then refrain from the previously mentioned procedures. Also men tend to wait for the woman to extend her hand, this is especially important when encountering Muslims. Always address people in their academic or professional title followed by the surname, when you’ve established an invitation of sorts or consider yourselves as friends only then can you use first names/nicknames. Lastly, when greeting elderly and senior it is a sign of respect to bow one’s head (kwintessential.co, 2014).

2) Gifts and pleasantries When invited to dine at someone’s home then preferably

bring nuts, fruits or chocolates. Giving small gifts to their children is also a nice bonus. Furthermore, gifts should be given with the right hand or both, never use the left hand. This is especially important for Muslims as they associate left limb activities as forbidden. Also it is important that gifts given from a man to a woman must be said to come from the man’s wife, sister or mother. There are also no taboos as to what paper color one should use when wrapping gifts (kwintessential.co, 2014).

3) Business cards Cards can be exchanged without any formal procedure or

ritual, however when presented or received use right hand or both hands. Also don’t scribble in new information on the card, if need be, print new cards. It is also highly beneficial to include any formal or advanced titles or degrees on your card, as this will increase your credibility (kwintessential.co, 2014).

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IV. GOVERNANCE AND ORGANISATION This section presents relevant theory coupled with practical

recommendations in order to give the reader an understanding of the underlying mechanisms that need to be governed and organized in order to deliver a successful project in Nigeria.

A. Governance Management Project governance has recently been found as one of the

principal causes for project failure (Patel, 2007). Doctor (2008) emphasizes that having a proper project governance framework is very crucial to projects due to the complex governing and corrupt systems they have that are very different from Europe and North America. A clear example would be when locals are hired to take part in certain level of decision-making; it is more likely that local communities of power influence their decisions (Smith, 2007). The significance of project governance has increased due to globalization. This has affected many companies and organizations while managing projects in different contexts (Miller & Lessard, 2000). Project governance has different meanings, depending on the corporate context that introduces its boundaries. It could be as simple as taking the responsibility to define the processes and evaluation criteria of project value delivery as well as project successes and failures. It could also be the complex structuring, operating, regulatory and controlling organizational system, dedicated to achieve long-term strategic goals to satisfy customers, employees, shareholders, suppliers, and creditors. Project governance concepts should be kept flexible to meet any considerations for specific organizations, countries, and sectors (Müller, 2010).

1) Three pillars of project governance In projects, there are three pillars that support decision-

making. These are structure, people, and information (Gottlieb & Jensen, 2012). A structure means, that a project is in the first place defined by a project/program/portfolio steering committee. Projects governance is integrated within the wider governance arena using different combinations of policies and procedural documentation (Garland, 2009). As for the second pillar, people involved in a committee define the effectiveness of the committee structure and membership, which is determined by the nature of the project and the top management of the mother organization. The top management board also determines which organizational roles should be represented in the committee. Finally, the information pillar refers to the forms of communication enabling the members of a committee to follow up the risks and issues that have been escalated by the project manager. Communication forms could be regular reports and certain key documents that concern the business case on the project (Grande-Bretagne, 2009).

2) Core project governance principles There are four main principles discussed in the literature

that project governance frameworks are based upon and should be taken into account for the Nigerian environment. The first principle is ensuring a single point of accountability for the project success, which means the there should be a clear leadership for the project success accountability. Many challenges beset projects at some point in their life, and there should be one person or group of people driving the solutions of the difficult issues. If no person takes the responsibility of making important decisions from the beginning, especially in Nigeria, the project initiation phase would be significantly slowed down (Bekker & Steyn, 2008).

The second principle forces the project ownership to be independent from asset and service ownership or any other stakeholder group. One reason is that the combination of project ownership and service or asset ownership result in a loose project scope that leads to alternative customer and stakeholder requirements and thereby to potential project failure. Furthermore, it also leads to skewing the project outcome and decreasing the scrutiny on what a project owner may require, reducing efficiency. This was among other main causes a lack of efficiency for international projects that performed in Nigeria (Odusami, 2003). Therefore, assigning a project owner from a specialist party to the project is considered the only proven mechanism to ensure the meeting of stakeholder and customer needs and optimizing monetary gain (Garland, 2009).

The third principle is ensuring that project decision-making activities and stakeholder management are separated. One main reason is that a size of a committee and its decision-making effectiveness are inversely proportional to each other. Project decision-making communities grow in size and become more overlapped with stakeholder management groups. That kind of growth negatively influences the degree of understanding of a critical project issue that each attendee may bring up in meetings. Therefore, stakeholder groups should be kept separated from decision-making activities as the project develops. However, the stakeholder’s needs should be sufficiently addressed and taken care of by the project decision makers. An effective strategy to keep their concerns well viewed and addressed could be charging of any key stakeholder groups by the chair of the project board (Garland, 2009).

The fourth principle is to ensure that the project governance structure and the organizational governance structure are separated. Organization structures are not considered as efficient delivery frameworks for delivering a project since projects require flexibility and speed of decision-making, which cannot be sufficiently enabled by the hierarchical mechanisms associated with organization charts. Therefore, the project management framework created for a project are kept separated from the organizational structure, which mean the decisions made by the steering committee should not be ratified by one or more persons in the organization whose working domain is outside that project decision making forum (Garland, 2009).

Apart from the four main principles of project governance, there are several complementary practical principles. Davidson (2014) believes that the steering committee/board should take the full responsibility for project management governance. Further, according to Office of Government Commerce (2009), the performance criteria, roles as well as responsibilities for the project governance should be clearly defined and effectively communicated. Murray & Ward (2007) also add that throughout the project life cycle, displaced governance arrangements should be applied and supported by appropriate controls and methods. Moreover, Dinsmore & Rocha (2012) think that the project portfolio should be coherently aligned with business strategy. That means that project portfolio should be at least supportive of the business strategy. Another principle could be that for project plans, before being approved, the authorization points should be reviewed, recorded and communicated (Lambert, 2003).

Davidson (2014) says that in order to enable healthy and effective decision making processes, the delegated

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authorization bodies should have sufficient representation, authority, competence and resources. As for informational basis of the project business case, Holtan et al. (2009) shows that the relevance and realism are quite important for making authoritarian decisions. Furthermore, they emphasize the importance of determining time. As for when and how to escalate the project issues to the required levels, Dinsmore and Rocha (2013) emphasize the importance of clearly defining criteria for reporting project status. Besides, they highlight the importance of rooting an encouraging culture whereby improvement and honest internal disclosure of project information become parts of the organizational value and norms. Finally, project stakeholders involvement should be done in a way that each stakeholder is engaged at the right stage, when the degree of trust is at its highest.

3) Projects and Project-Based Organizations In project-based organizations, life cycles are long, non-

repetitive, developmental, and the working project teams are disbanded upon the projects completion. Furthermore, projects rely heavily on supply chain contributions. Measuring performance in projects is difficult since there is a strategic business vision beyond the project efficiency to be measured. Also, effective project-based organizations have the advantage of strong process basis that effective projects (by their stage gating aspects) as well as project leadership can bring (Morris, 2002).

4) Knowledge Frameworks in Projects There are several forms of Knowledge management and

organizational learning tools. They are usually employed in projects with databases, portals and knowledge support. Databases support projects with knowledge that fulfills overall project/management needs to an extent, such as a web-based front ends for different users, while portals represent doorways through which users can access a set of information relevant to their needs. An example of a portal’s contribution could be risk management portal that allow users to access everything they need (templates, learning-based guidance and e-learning support) to perform effective risk management. Finally, knowledge support may be employed in different contexts, such as project strategy, business context and technology strategy as well as value management (Morris, 2002).

5) Common Project Management Framework Eskeröd and Riis (2009) show four cases of companies

dedicating a group of practices to create common project life-cycle models as frames of reference for managing projects. Each company had a specific challenge to deal with concerning PM including delivering high quantity of individual customer projects, cross-national and different-sized projects, and competitive projects in terms of performance maturity. According to the study, there are four main elements for establishing a common frame of reference from the cases. The first element is that every company created and/or adopted a common PM model including methods and tools that require a common approach to PM. An example for it is the establishment of a center for PM and unit of analysis to create and develop a common ground. The second element is the establishment companywide generic PM training programs. The third element is to develop a project managers’ career by a tailor-made examination or certifications granted by external recognized bodies such as International Project Management Association (IPMA). The fourth element includes the activities dedicated to share the knowledge related to the common approach among project managers. Nonetheless the strategies

and policies were different. For instance, it was mandatory for project managers in one company to participate in all relevant activities, even though that was not the case for the other companies.

6) Project Management Systems as Strategic Drivers Cooke-Davies et al. (2009) discuss how the implementation

of project management systems (PMS) could be aligned strategically with the business beyond the operational role of projects. They discuss four different profiles of PMS drive specific business strategies. For instance, classic PM is used to apply a radical change to improve the economics of a process, while its impact on business differentiation is deemed to be incremental. Nonetheless, innovation projects are more appropriate to apply radical changes for businesses, while their contributions to the economics of a process are just incremental.

7) Project Management Office According to Aubrey & Hobbs et al. (2010), the PMO is an

organizational entity that is characterized by a certain degree of mandate. Additionally, PMOs include multiple projects, not only large projects. As shown by Indelicato (2009), the responsibilities of PMOs range from supporting projects to being directly responsible for the management of projects. Köster (2009) discussed how a PMO is effective for managing international projects in different contexts. She writes that a PMO should be strategically located close the company’s projects to support. That would be a central connection line between the company headquarters and its projects in challenging countries for projects like Nigeria.

8) Roles, functions and characteristics a PMO Hobbs (2007) investigates the importance of PMOs for a

list of organizational roles and functions. PMOs were found as a great support to the functions and roles that are related to the development of PM competencies and methodologies. Furthermore, PMOs were found to be important as a strategic support to the upper management in managing benefits and adapting to the external environment. Finally, managing archives and databases of risk and project documentation were considered as PMOs’ contributions to the organizational learning group. Hobbs (2007) presents a significant analysis of statistical results concerning the characteristics of high performing PMOs. The structural characteristics of PMOs include the percentage of projects within the mandate, the percentage of project managers located within the PMO and the decision-making authority of The PMO. They were found to be proportionally associated with PMO performance.

9) Corporate Governance in Nigeria Corporate governance systems are mostly shareholder or

stakeholder modeled in any country (Solomon, 2011; Jackson & Deeg, 2006). Adegbite et al. (2013) discuss the important role of those they call agents of convergence in promoting particular types of corporate governance models through cross and intra-border initiatives. They underline the continually growing international interest of corporate governance in Nigeria. Economically, there are several main international actors that influence the corporate governance systems in various institutional contexts including the Organization for Economic Co-operation and Development (OECD), International Monetary Fund (IMF), and the World Bank (Soederberg, 2003).

Okike (2007) believes that the laws regarding corporate governance systems in Nigeria, which were passed by the

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British colony, have been abolished after the independence in 1990. Nonetheless, according to Ahunwan (2002), the Nigerian Company legislation (CAMA) shows that the laws of Nigerian companies are still greatly influenced by U.K. rules, which were mostly Anglo-Saxon oriented and have historically lacked the robustness and capacity to tackle local challenges (Wood & Frynas, 2006). McCarthy and Puffer (2008) believe that the corporate governance nature in Nigeria is extremely difficult due to major disorders in Nigerian social system and huge disruptions in the Nigerian form of government, economic system, and supporting governmental institutions such as the legal system.

In addition to the World Bank, OECD and IMF, Adegbite et al. (2013) believes that the African Development Bank (AfDB) considerably influences corporate governance developments and monitoring in Africa, and is trying to develop a comprehensive corporate governance strategy. However, the striving for conforming the international standards in corporate governance do not achieve significant changes in existing practices because companies in Nigeria tend to adopt the surface level of international best practices to meet requirements. Therefore, the substantial absorption of the principles is still lacking (Adegbite et al., 2013).

In Nigeria, the general climate of corporate governance is enormously damaged by poorly functioning markets, ethnic tensions and rivalries, the deep-rooted corruption and bribery of the Nigerian political culture, and a lack of adequate infrastructure. In such circumstances, a large number of directors and managers have been able to use corporate resources and opportunities for their own personal benefit at the cost of the corporation and its shareholders (Ahunwan, 2002). Moreover, Nigeria is characterized of having high concentrations of corporation ownership, which is according to Porta et al. (1999), a main root cause of exploitation of minority shareholders problem. Furthermore, Nigeria has an ineffective judicial system incapable of enforcing formal rights and undeveloped market institutions incorporate a lot of information asymmetries (Ahunwan, 2002). As a result, the costs of contracting increase greatly and making business activities become much more risky ventures (Porta et al., 1999).

As for accountability in Nigeria, many stories tell, for instance, about unjustified and unaccountable instability of governmental subsidies, which exposes the low level of financial accountability in Nigeria (Makinde, 2002). The consequences on projects could be tragic under such circumstances due to the instability of all connected sectors such as market prices (Müller, 2010).

B. Organisation The Chalmcare Pharmaceutical International Developments

Company is divided into six major departments. (See figure 2 in the appendix)

The construction department is responsible for coordinating all construction effort, taking care of the procurement and searching for subcontractors as well as suppliers. Most of the members of the department should be on site where the actual plant is built. The financial department takes care of investments, finances, taxation, and maintenance cost. While its members can work from any country in the world, they need to work closely with the international relations department. Local labor and whole subcontractors will be hired by the HR

Department. They make sure that the required skills are met and the international project scope does not pose a problem.

Most of the communication part will have to been taken care of by the International Relations Department. Together with the Legal Department they need to ensure that all necessary documents are sent to governmental agencies on time and bribes are made where necessary. In terms of taxation as well as local law the legal department is in charge of authorizing the other departments to start or proceed with their operation without getting in trouble. The Production & Regulation Department will be necessary when the plant has been built for the maintenance as well as material & drug procurement.

This project will be aligned to the organizational structure and governed by the Project Management office (PMO). The PMO is aligned alongside the departments, but spans up the organizational matrix with the included projects. For each project there are people working from each department within the company. This is necessary for this project, because different people are needed at different times within the project. The legal department is needed a lot in the beginning of the project and then only from time to time but continuously. The construction department is no longer needed after the medical plant has been built, since the Product & Regulations departments will perform the maintenance. All subcontractors and local labor should be included in the particular departments and receive instructions from them directly. If some Nigerian locals are taking care of the budget on site, they have to be integrated into the financial department.

Representatives from six different countries will oversee the project from a Project Sponsor Board: Sweden, Germany, Italy, Greece, Japan and China. The project coordinator and chair of the project comes from Sweden, a linear-active and data oriented country. The same applies to the project information management from Germany. The chosen country for the project information management is a good choice, as the job heavily relies on data. The chair should have been chosen from another reactive and listing country instead of a data-oriented country. A good choice could have been China, where the project management comes from or Japan, which provides the staffing, and training program. The multi-active and dialogue oriented countries; in this case Greece and Italy provide the design and procurement as well as the operations and facility management respectively. While some of the staffing choices do not seem to fit very well with the countries through the perspective of the Lewis Model, all involved countries need to understand how they are going to interact with each other. Communication patters, listening habits, leadership styles and the language of management will be the major differences that need to be dealt with. Moreover there will be a diversion in negotiating, manner, taboos and body language. (Lewis, 1990) As a result it is essential to identify commonalities and exploit synergies between the countries to achieve the actual project.

We therefore suggest inviting all board members pre-project start to a three-day workshop to understand the different perception and build a successful team. The team should be put on purpose in the storming phase of Tuckman’s team model in order to reach the norming phase and lay out the ways of communication and working. If the workshops succeed the board will be in either norming or performing stage when the actual project starts. In order to support this, one recognized facilitator should hold the workshop. In this controlled

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environment major problems and errors are desired, as they prepare the project team for the actual project and their collaboration. We believe that the practical approach is the only way to overcome the multinational difficulties. An understanding of other cultures can be developed from theory, but it will not manage the pressure if the stakes are too high. Therefore we advise not to purely send out any guidelines on who to work together with in an international context.

We recommend the following framework for the project governance as can be seen in figure 3 in the appendix, which takes place between the internal project environment and the external environment. During the project execution it is important to return to the planning phase by controlling the achieved results. From the initiation stage until the project close stage, we suggest that all the project principles previously discussed should be considered as bases for each stage in this framework. For instance, accountability for the project success should be appointed to a certain person or project board/steering committee, and the project ownership should be independent from asset and service ownership or any other stakeholder group. Another example is also ensuring that project decision-making activities and stakeholder management are separated. All these principles in addition to the complementary principles should be taken into consideration at the appropriate stage.

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V. PROJECT DESIGN, DELIVERY, VALIDATION, COMMISSION, OPERATION AND MAINTENANCE

This section presents the actual design of the project and also how delivery of resources and goods will be validated. It presents the overall scope of the project and allows the reader to comprehend the risks that come along and how they have been dealt with. This section also details out how the actual operating and maintenance of the facility will be done.

A. Introduction 1) Scope management One of the most important and crucial functions of a project

manager is the project scope management. A project may come from different sectors and environments. It could contain industrial and non-industrial activities that are implemented in manufacturing or service environments within the private or public sector. Effective project scope management also enables the successful management of other fundamental project management areas including cost, time, and quality (Khan, 2006).

2) Planning Scope definition should enable us to introduce an

appropriate framework of project management concepts and strategies. The cultural scheme of Africa in general excludes many widely followed project management strategies, leading to a customized framework of project management that includes appropriate tools and approaches. Figure 4 in the appendix shows how the tailoring process of project management fundamentals may conceptually be filtered and adapted to the African conditions (Muriithi, 2003).

Seddon (1985) has analyzed some examples of cultural traits such as Hofstede’s cultural dimensions as shown in figure 5 in the appendix. These include power distance, uncertainty avoidance, individualism / collectivism and masculinity / femininity. The data shows cultural differences between the UK and some African countries similar to Nigeria. The difference could be found in every single dimension if we for instance compare Nigeria with the UK. The power distance is high in Nigeria and low in the UK. The uncertainty avoidance is moderate in Nigeria and rather low in the UK. The Nigerian society is mostly collectivist, while the British society in the UK is mostly individualist. Finally, the masculinity in Nigeria is moderate, while it is rather high in the UK.

The organizational structures in Africa are relatively tall due to the long range of power distance, which in turn contributed to the emergence of the patronage systems. Furthermore, the prominent collectivism of African communities makes it more difficult for individuals to neutrally work in formal organizations, detaching their personal emotions toward any issue may matter the public African opinion. As for risk avoidance, it is again the nature of organizational structures in Africa that makes the top management involved in very small details in projects, leaving no space and resources for creativity and risk taking (Muriithi, 2003).

3) Project Implementation One of the predominant challenges for projects in Africa is

to keep them consistently and continuously resourced (Muriithi, 2003). That is due to the microscopic control of top management in resource allocation. Mansfield et al. (1994) and

Gow et al. (1988) address other key implementation issues related to contract administration and project team motivation.

4) Project Termination A project handover is considered successful if it conforms

the promised specifications and sustainability of operations. In Africa, last steps usually drag on for years, especially for public sectors. As a result, the benefits of projects are considerably undermined (Muriithi, 2003). Another significant aspect that will be further discussed in the sections is stakeholder. In Africa, scope management can help in avoiding unnecessary interference of peripheral stakeholders with the project. An example of these stakeholders could be the politicians who are interested in anything they can use to deliver development or benefits to client groups (Leonard, 1987).

5) Risk, Time and Cost Since uncertainty avoidance seems to be the default

strategy preferred to the minimization strategies in Africa, scope variations should be dealt with in a special way. What worsens the situation is the unstable social-political environment and high rates of inflation that add urgency to cost control. Therefore, a project manager should see beyond what typical sources of variations may reflect (Muriithi, 2003).

From the experience of different senior project managers in Africa, there is a group of tools and techniques that has high success potential and carryover. As for internal administration of projects and organizations, several tools and techniques proved their effectiveness in African organizations including process analysis, the critical path method, PERT, Zero Based Budgeting (ZBB), Management by Objectives (MBO), the Planning, Programming and Budgeting System (PPBS), and the logical framework method. On the other hand, reward and recognition systems that are based on Western motivation theories seem inapplicable in Africa due to the different economic rationality of African work values.

Moreover, techniques matter project teams, similar to brainstorming, are not likely to be effective because the presence of supervisors in such occasions will, to a greater extent than in the West, make subordinates muffled regarding expressing their own opinions and suggestions. As for procurement, community or family networks seem to play a much more significant role regarding contract compliance assurance than does the commercial law. Therefore, procurement processes in which cost minimization and other neutral criteria are assumed for awarding contracts are not necessarily effective to ensure sustainability of project operations. Instead, it is recommended that the project manager uses the community networks and not to circumvent them when required (Muriithi, 2003).

B. Stakeholder management Projects are managed to create benefits to different parties,

i.e. stakeholders. In the design phase of each project the relationship between the generated benefits and the stakeholders needs to be clarified, as they can vary. For some of the stakeholders, the benefits are more materialistic, while for others, they could be strategic or social initiatives. Because the formula of this relationship completely changes from project to project, depending on the context of the project, there is a big challenge in ensuring the conformance of a project deliverable to the pre-agreed benefits. Formulating the right equation of how all the benefits will be delivered to the

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corresponding stakeholders as agreed could be called stakeholder management (Eskerod & Jepsen, 2013). A group of stakeholders may involve investors and shareholders, employees, suppliers, customers, and the public stakeholder group. This group is represented by the governmental communities, that provide infrastructures and markets with regulations and laws, that must be obeyed, and to whom other obligations such as taxes may be due (Hillman & Keim, 2001).

In the context of chemical industries such as pharmaceutical industry, Moodley (2010) addressed three most important external stakeholder groups including suppliers/contractors, clients, and end users due to the uncertainties and problems they usually cause in such industry. That makes these groups closer to area of stakeholder management focus and an immediate priority. In other words, to ensure a successful project, the scope should be properly aligned with their expectations and interests, which in turn, should be deeply understood. That is important to avoid the situation of lack of common goals in which stakeholders perceive the relationship as insincere. Practically, there should be regular forums to assess stakeholder viewpoints and gather the information required. Moreover, dialogues and bidirectional communication channels should be deeply rooted rather than just informing stakeholders on progress. As a result, there would be some sort of action plan whereby stakeholder input is integrated with a feedback loop. That will reflect the willingness to approach win-win situations and build mutual trust and partnership smoothly (Moodley, 2010). However, it is necessary to zoom in and investigate which dimensions of stakeholder management need to be developed. According to Moodley (2010), the dimensions of stakeholder management that require attention in chemical industry in terms of stakeholders impact assessment and the effectiveness of stakeholder management process are tools and methods, strategy and plans, and evaluations (Moodley, 2010).

By breaking down the recommended stakeholder management strategies, a group of tactics to realize them can be viewed. Kujala and Ahola (2005) show the great value of implementing stakeholder/customer satisfaction surveys and evaluation forms for communication and meetings effectiveness. Besides, Moodley (2010) recommends spending a fair time in tracking and analyzing the relevant stakeholders by listening, observing and conversing with them. As a basic supporting background for these tactics, a communication plan manages the level and distribution of project information to the corresponding stakeholders must be developed. This plan should include the communication frequency and type of information that matter to each party. The scope of information is recommended to focus on benefits and risks between the project and its external stakeholders (Kwak & Ibbs, 2002). The communication means vary depending on the availability of stakeholders and urgency of the project issues. For instance, face-to-face communication is recommended when dialogues of negotiations are required to resolve issues, while simple notifications via e-mails or SMS can be done for progress report. Between the both extremes, the balance should be kept by selecting convenient communication means that fulfill the requirements of a communication purpose (Grunig, 2013).

Another important aspect of stakeholder management that needs to be specially developed in chemical industry is motivating stakeholders to deliver the project objectives. That could be realized by involving external stakeholders in project milestones and significant events such as rewards and

recognition ceremonies and team building and lessons-learned sessions. By escalating such level of involvement, it is expected that external stakeholders’ teamwork and energy levels will improve due to the increased level of commitment generated to achieve project goals (Moodley, 2010).

Even though the reactive approach of external stakeholder management seems to be extremely important, the collision of stakeholders’ goals and benefits may occur during the project implementation. Therefore, considering a proactive approach seems to be inevitable option to minimize the potential project risk. A proactive approach could be based on a generated group of scenarios whereby the strategies of the external stakeholders are analyzed, the ways of how their goals differ from each other are anticipated, and their expectations and viewpoints on specific issues are deeply understood. Identifying and analyzing a stakeholder expectations and needs could be simply based on the outcomes from Maslow’s hierarchy of needs and PESTEL analysis (Aaltonen & Sivonen, 2009).

Since this pharmaceutical manufacturing facility project is to plan to be done in Nigeria, we would like to highlight the main concerns related to the potential external stakeholders for such context. The main stakeholders can be found in the appendix in figure 7 as list and in figure 9 as stakeholder map.

1) Chinese Suppliers in Nigeria Even though their extraordinary competitiveness positions,

many issues have been reported against the Chinese suppliers and should be considered for stakeholder management. That may include conspiracy with unprincipled local practitioners, information hoarding on operations, proliferation of Nigeria’s market with shoddy services and products, allegations about discriminatory management style, and non-compliance with technology transfer and importation of home labor (Babatunde, 2013).

2) Federal Government of Nigeria (FGN) According to Siyanbola (2012), Nigeria has great health

care needs in terms of drugs, and the pharmaceutical industry projects seem to be welcomed by the FGN due to the underlying economic boost. The thrusts of the National Drug Policy in Nigeria 2005 were to make available affordable, safe, effective and of good quality medicines at any time and in all sectors of the health care system. Besides, the policy referred to necessity for improving the health care quality level through the wise use of medicines and the empowerment of local capacity for manufacturing and exporting essential medicines (Siyanbola, 2012). According to Burke (2013), the way a project should be operated in African communities could be defined by community expectations and perceptions. The FGN represents such communities in Nigeria, and therefore, their expectations and perceptions about any pharmaceutical projects should be properly communicated with them (Siyanbola, 2012).

3) Nigerian Suppliers of Pharmaceutical Ingredients There are many Nigerian suppliers that can deliver

indigenous raw materials and recipes related to drugs production. They may lack the capability to produce active pharmaceutical ingredients (API) of generic and specialized drugs, but they can at least be considered for getting some work done on the supply chain. Therefore, it might be a good strategy to empower the capability of these suppliers to deliver core ingredients as part of long-term partnerships. Before that, getting closer picture of the quality and productivity of these suppliers is extremely important and could be taken care of by

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stakeholder management tactics and strategies. However, there are 128 local drug manufacturers approximately in Nigeria, which means that dealing with the same suppliers and distributors is more probable, especially in the West African sub region. Moreover, there are only eight pharmaceutical manufacturers listed on the Nigerian Stock Exchange out of the 72 companies registered as active members of the pharmaceutical manufacturing group (Siyanbola, 2012).

4) National Agency for Food and Drug (NAFDAC) NAFDAC is a Nigerian government agency embraced by

the Federal Ministry of Health. It is responsible for controlling and regulating the manufacture, exportation, importation, distribution, sale, advertisement and use of food, packaged water, drugs, chemicals, medical devices, and cosmetics. NAFDAC is coupled with reforms that have been introducing to the sector since 2001. The reforms can be proved by the improvements of the profitability of companies, re-investment, and local drugs manufacturers.

5) Research Institute (NIPRD) The National Institute for Pharmaceutical Research and

Development (NIPRD) is part of the Federal Government and has been established in 1989. It has various collaborations with other organisations like the NAFDAC or the WHO. The organisation tries to extend the creation of local raw material, drugs and herbal medicines through effective collaboration and to make nigeria self-sufficient in the production of all essential drugs.

6) World Health Organization (WHO) The World Health Organization is a leader for Health

related topic within the United Nations. It directs and coordinates all efforts to improve health and is driving an active health research agenda. Moreover it is involved in the standardization and norming of health matters and provides support to specific countries. In Nigeria it works closely together with the NIPRD and the NAFDAC.

C. Risk management As Oracle (2009) points out, risk assessments “fully

discloses the sensitivity of the project to its participants to ensure that all threats are fully understood.“ It therefore helps to make better decisions, negotiate fair contracts and create risk mitigation scenarios. One of the reasons why projects fail is that the project plan is too optimistic and does not include external factors within it. Reasons for a too optimistic plan are usually underbidding, scale-to-fit and political spins in the project. External factors often create phenomena like scope creep or unanticipated work.

We tried to include all external events in our risk plan that have a probably higher than 1%. Natural disasters like earthquakes can always happen, but there probability is quite low and there are no good mitigation plans. We excluded these risks since Nigeria is not prone to have these kinds of disasters. The risk plan is included in the Appendix in Figure 10. The unit for the Impact is 1000€. Five risks have been identified with a risk value of more than 30.000€. These are:

• Delayed deliveries

• Worker safety

• Lack of specialists

• Insecure contracts

• Additional stakeholders

• Delayed deliveries

Due to the poor infrastructure in the country, the delivery of equipment and construction material is most likely to be delayed. To mitigate this risk we recommend to refrain from using just-in-time procurement procedures but rather build a storage/warehouse on site that is guarded 24/7. Moreover equipment should be sent in high quantities to avoid a shortage on site. For the project manager this means including some buffers in the procurement activities to avoid any risks for critical path. Finally, the local procurement labour should take care of all bribes in advance to make sure that the equipment or material is kept at certain checkpoints, this means at the lower level of course.

1) Worker safety Worker safety here covers various areas, from the correct

safety regulation up to kidnapping and executions. The latter can be avoided with guards on site and information on how to manage any given crisis. Safety regulations should be easy to access and mandatory for all workers on the construction site. They should include common safety equipment like helmets and secure boots. It is highly recommended to spend budget on mitigating the worker safety risk. Not only in terms of humanity but also from a budget point of view. Any accidents that occur are usually much more expensive than the safety equipment if legal labour is employed.

2) Lack of specialists The lack of specialists can be mitigated by looking early at

graduate students in the particular disciplines and recruit them locally. As many of the students in Nigeria leave the country to find a better job abroad, the lack of specialists can be easily avoided if these students are offered proper payment and maybe future possibilities within the company or as contractor. While there is always the possibility to bring in external specialists, this option is usually much more expensive. Moreover external specialists bear the risk to not be familiar with Nigerian regulations and laws. Finally, there is a good opportunity to save taxes if local labor is employed.

3) Insecure contracts Even though the contractors in Nigeria are not

untrustworthy compared to the European contractors, there is a high risk for national laws to collide. We therefore recommend to always using an internal approved contract like the template from the International Chamber of Commerce. This contract covers the basic rights on an international level and should be used for even the smallest purchases. The risk of insecure contracts should be avoided at all cost, as foreign court settlements cost a lot of the budget and time. Even though the money might be given back, the time is lost. If this happens within the critical path the results can be disastrous.

4) Additional stakeholder The risk of additional stakeholders cannot be properly

mitigated, as the stakeholders will change during the process of the project. Additionally, the risk itself does not concern the actual stakeholders but the stakeholder involvement. The project manager needs to keep the stakeholder list and communication plan up to date and inform everyone on time. Problems occur if one stakeholder is forgotten and decides to hold the project or even work against it. An example would be a forgotten bribe the causes the equipment to be stopped from transport, putting the whole project to a hold. We believe that

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stakeholder management is one of the most important tasks in this project.

5) Project delivery in accordance with procurement Procurement management is a crucial part for a successful

project delivery. It maps the required goods and service out in terms of their local and global suppliers and brings them in accordance to particular neutral criteria such as minimum cost. In Nigeria, it is recommended to look across family and community local networks of suppliers, especially if the minimum quality level can be secured by one of them. As a rule of thumb, the contract compliance is more likely to be ensured through as networks (Muriithi, 2003).

However, the Chinese suppliers impose themselves by delivering particular level of work quality in relatively short time (Davies, 2008) and cheaper rates compared to other suppliers. Many of them are already well established in Nigeria (Oluwakiyesi, 2011) and state-owned enterprises (SOEs), which makes it easier for them to access home government concessional loans when required (Osakwe, 2012). That could be regarded as very helpful in terms of risk mitigation and exportation (Babatunde, 2013). In addition to their multi-faceted superior competitiveness, Chinese firms have many long-term partnerships between both public and private Nigerian companies. The joint ventures are based on deep understanding and appreciation toward each others’ cultures, which in turn ranks a Chinese supplier as a first alternative to look for if the Nigerian supplier available lacks the required qualifications and aptitude (Babatunde, 2013).

D. Maintenance The success and further growth of the factory depends upon

several main factors that need to be considered. First and foremost a guaranteed access to water and electricity must have been established in the planning process way before the construction even started. Disruption in power or unclean water can have great affect on production as many input chemicals and output pharmaceuticals need to be kept at specific temperatures and moisture levels, and otherwise free of contamination. Moreover a cheap access of raw materials and pharmaceutical ingredients needs to be secured (United Nations, 2011).

In the beginning stages of production it is estimated that experienced employers should be brought in to establish and uphold the standards and procedures of the company. Therefore it is strongly recommended to create an onsite human resource department to maintain and expand local production capacity. Pharmacists, university graduates from chemistry and biochemistry departments and engineers familiar with manufacturing machinery and quality control methods and processes should all be sought out. By following this, the plant could be run mostly by local staff in a matter of few years and the brought in experts could be reallocated to further expansions (United Nations, 2011).

E. Procurement When operating in a developing country the need of proper

quality assurance becomes even more vital. To begin with pharmaceutical procurement has to have a standardized procedure of analyzing products and suppliers. First the right product must be selected by looking at estimated shelf life or if the product is considered unstable or with any bioavailability

problems. Once the product has been selected, information about the supplier should be gathered and pre qualifications estimated. This could be backed up with World Health Organization (WHO) certifications and reports such as Good Manufacturing Practices (GMP) inspections reports from national drug authorities. The right contract can also affect procurement, as they should state acceptable pharmaceutical standards, packaging standards and proper labelling in terms of language and shelf life on products. Once a shipment of pharmaceutical products is received a physical inspection should take place and suspicious products sampled for analysis. Furthermore a targeted laboratory testing should be conducted on critical ingredients, new suppliers and other suppliers that have had quality problems in the past. The proper way to close these procurement methods would be to have a reporting system to follow upon on each product that shows sign of problems (Layloff, 2012).

F. Quality control and further improvements In the whole manufacturing process there are many things

to follow upon. Simple things such as hygiene, thurral cleaning and maintaining all machinery and equipment equally need to be done consistently. Once the ingredients and other finished products have been acquired both the secondary and tertiary level manufacturing can begin. Each process should follow certain standards or preferably some known methods such as Lean methodologies, ISO standards, Six Sigma methods or anything that works best for the given manufacturing in order to ensure knowledge management and make way for further improvements (Layloff, 2012).

According to PharmOut (2007) it is recommended to utilize a Computerized Maintenance Management Systems (CMMS) to take care of the baseline configuration of the plant. For this it is important to allocate a Unique Identifying Number (UINs) to each piece of equipment, describe the validated plant configuration and establish a repository of maintenance plans. The plans should hold all records of maintenance activities and also schedule them.

The maintenance equipment should be treated in a risk-based approach: The equipment will be classified on its impact on product quality. The differentiation can be made in four different classifications: Direct Impact, Indirect Impact, No Impact and Safety/Environmental Impact. Equipment in the last group will upon failure directly impact the safety or the environment.

The CMMS as well as the current maintenance plan need to be updated every time new equipment is added. This also includes the installation of new equipment or updated equipment where parts have been changed. If the CMMS is correctly put in place, properly trained maintenance staff and contractors need to administrate it. They need to understand that even small changes in filters, lubricants etc. can affect the product quality and have therefore to be recorded in the CMMS. As a result, policies, procedures and work instructions need to be put in place for the documentation itself. A documentation needs to describe the what, when and how of maintenance.

If different departments take care of maintenance, it is additionally important to make sure that the maintenance of equipment and supplies have a clear person or department of responsibility. Pharmout (2007) state that the following utilities often fall “between departmental cracks”: Chemicals, power

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supplies, fire protection systems, security systems, HVAC, water and gas supplies. Especially for the fire protection or security system pose a serious threat of no one has been assigned to manage those. (PharmOut, 2007)

We therefore propose to hire professional technical writers to produce the technical documentation, put a CMMS in place by an IT team and leave all responsibilities to our Production & Regulation Department to avoid any insecurities in terms of responsibility. This also ensures that newly bought equipment for the production is directly included in the CMMS and properly documented. Moreover we recommend the Total Preventative Maintenance (TPM) as a modern maintenance management technique to be followed within the organization.

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VI. COMMUNICATIONS This section presents cultural barriers and inclinations and

how these will affect communication. Here, the reader will understand how language truly is the currency of the mind and how different concepts and understandings of time can easily shift the project hourglass.

A. Language and socio-economic barriers Gupta (2008) states that communication is of real

importance when considering multi-cultural teams due to challenges in social integration and subpar proficiency levels in the English language. One difficulty while in Nigeria will be addressing problems in formal English, as it seems to be an exclusive preserve limited to the urban elite in the country. One way to tackle this problem is to have a number of local translators that can act as front men. Ogbonna (2010) explains that Nigerians are very picky with what authority they choose to take orders from, it is therefore a good idea to send out team members that hold higher degrees or higher social status of some kind. This will increase trust in our ability to make important decisions that affect the Nigerian population directly (Ogbonna, 2010). In summary, assigning local translators especially members that hold academic degrees or status of some sort will help reduce language barriers that might arise.

Furthermore, in a socio-economic sense having people that have status of some degree can in fact also have the opposite effect from what was discussed earlier. Individuals with less academic qualification or economic status might be unwilling to listen to their more accomplished counterparts. The key is finding authorities that are humble in their approach and individuals of “lesser rank” that are ambitious and driven. Awopegba (2001) writes in his socio-economical analysis that albeit being the most populous country in Africa, Nigeria is still under-developed as can be attested by United Nations that did a Human Development Indicator test where Nigeria scored low in terms of literacy, economic and life expectancy rate (Awopegba, 2001). The recommendation to counter the low score and increase Nigeria's socio-economic prowess would be according to Awopegba: to plan and adequately fund human capital development in the country and apply international standards into the market.

The author also writes that a regular input of planners, builders and employers of human capital development should be put in to facilitate the development of a successful national development in the country of Nigeria (Awopegba, 2001). It is necessary for the success of this project that we consider the impact of factors such as language barriers, socio-economic situations, religious and political diversity as well as time differences if we are to adopt permissible actions that allow the preservation of our own private interests in Nigeria.

B. Time differences and concepts Mutabazi et al. (2003) writes that time management is one

area in which clashes between Western and African cultures occur. The author writes: “Where time is saved or wasted in the West, it is lived and shared in Africa” (Mutabazi & Derr, 2003). Mutabazi explains that time is very much devoted to developing social relationships in African countries. Ogbonna (2010) further describes the notion of time. The author explains that the African concept of time only entails the past and present with little to no consideration to the future which is in direct conflict with the Western concept where time has an

infinite future, indefinite past and important present (Ogbonna, 2010). The African perception is that the future cannot constitute time since events have not yet happened explains Ogbonna (2010).

In fact, people who keep track of time are according to Ogbonna, viewed with suspicion and distrust. In the case of our company, we have two options; either be time specific but viewed with distrust or build trust and completely disregard our time schedule. The key to battling this problem is having the right attitude. If we go into the project initially with a relaxed professional attitude, we absorb the trust of the population and when this is done, we show them how important the development of the medical facility is and how detrimental a delay could be to the betterment in health of the people in the country.

C. Political communication Researchers Akpan and Edewor (2005) did an interesting

study where they tried to find out effective communication strategies that could improve interaction effectiveness between politicians and voters in Nigeria. The study revealed that voters have a full understanding of the vital issues pertaining to political campaigns and more interestingly, they discovered that there are some important considerations to be made based on the socio-economic characteristics of Nigerian voters (Akpan & Edewor, 2005). It seems that “posters, stickers, personal selling, billboards, interpersonal communication, opinion leaders, magazines, face caps, vests, radio and television” (Akpan & Edewor, 2005) were all used in some form or shape when creating political communication channels. What the study found is that the telephone is not an effective communication channel and that the most effective way of securing the voters approval is by considering their geographical environment and demographic characteristics. In summary: there needs to be a focus on the urban/rural divide and factors such as attitude, behavior, age, sex, family size, income, education, religion, tribe, interests and occupation (Akpan & Edewor, 2005).

The authors write: “No communication strategy is likely to succeed unless it takes into account the supremacy of the community, respect for old age, utility of the individual, sanctity of authority and religion as a way of life” (Akpan & Edewor, 2005). In conclusion, a communication strategy that fails to take into account the leisure time, illiteracy level and needs of the Nigerian community is a strategy bound to fail concludes Akpan and Edewor (2005). What this means for our organization is two things: we need to determine the most effective communication channel that takes into account literacy levels, geographical location and characteristics. Second, we need to adopt a slogan, conclude what message we want to convey and determine our positioning on the matter. Our country analysis shows that teledensity and mobile coverage is high in the country (56.3 % or approx. 80 million people) this combined with radio communication will make the foundation of our communication channel. Secondary channels will be through the country’s different hospitals and health-care providers where staff will recommend and promote hearsay information.

Our stance and message will be clear and simple. Our job is to improve the quality of life of the people of Nigeria by providing them with necessary medication and by opening up possibilities that will lead to work in the health, construction and management sectors.

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D. Knowledge sharing Building up on communication is the idea of knowledge

sharing. Especially in projects with multiple and changing contexts it becomes difficult to share knowledge with all involved parties. As Bosch-Sijtsema (2014) points out there are: “...difficulties to create a shared understanding amongst all different players, a fragmented use of information and data (Anumba et al., 2002), lack of sufficient incentives for collaboration and communication, as well as ineffective cooperation due to unclear information dependencies (Senescu et al., 2013), and difficulties to share distributed and embedded knowledge throughout the project.”

According to Bosch-Sijtsema (2014) knowledge sharing of practice-based knowledge is especially efficient when face-to-face communication can take place. Social interaction processes and visual communication means are crucial for sharing knowledge. While it is not always possible to meet in person there nowadays is the possibility to rely on technological advances like videoconferences. If all team members drive the exchange of information and knowledge the organizational efficacy can be improved from both internal as well as external sources. This in turn increases the team efficiency and overall moral.

We therefore recommend locating the majority of the project members near the actual construction site of the medical plant. Since there are many shareholders involved in the project, short ways of sharing information and knowledge will help to keep stakeholders satisfied and the project reporting up-to-date.

E. Project reporting While the earned value technique is one of the first

concepts that come to mind in project reporting, there are more important concepts, especially when approaching project reporting from the communication perspective. In general, actual accurate data needs to be collected and compared on a regular basis and then shared with different stakeholders, mainly upper management, i.e. the strategic part of the project organization. A project control system can help to both have an effective cost and schedule control as well as good foundation in terms for knowledge sharing. A possible control system might store collected construction data from the site and store it in a centralized database for later use (El-Omari, 2011). This allows all stakeholders to have a visual communication means that can be discussed about. There exist several different technologies to help with the communication like RFID, bar coding, LADAR as well as video and voice records. (El-Omari, 2011). Moreover there is the possibility of reflection hub where employees are welcome to enter a recording room that is secure and strictly confidential. The information that is recorded can help the organization to dynamically improve communications as well as presenting insight about attitudes, opinions and reflections. It can serve as a feedback loop, to let the upper management know whether the project is running successfully.

F. How to communicate in Nigeria There is no absolute way of communication in Nigeria. Due

to there being several hundreds of ethnic groups and tribes, this results in a large variety of communication styles being employed (Ogbonna, 2010).. In the southwest where the Yoruba tribe resides, people communicate using proverbs and songs to skillfully put messages through. They are also popular for their sense of humor and believe embedding jokes in

conversations in order to make them more memorable (kwintessential.co, 2014). Therefore always observe your company and don’t hesitate to make jokes as long as its not being done at the expense of whomever you are interacting with. Another key trait that is common in the South where our medical facility should be built is that people tend to speak more direct and with a louder voice than elsewhere, this is especially true when they describe topic that they are passionate about. Furthermore, it is also adviced by kwintessential.co (2014) that a harsch tone is avoided since it is considered hostile as in pretty much everywhere in the world. The recommendation is a clear and welcoming voice with facial expressions that indicate empathy and not indifference this is of course recommended after doing a thorough observation of the state of things. Both Ogbonna (2010) and kwintessential.co (2014) state that Nigerians can be lingering in their conversations. They like to start slowly before moving into specifics, with a rationale that focuses on behavior and context. This takes us to our second important topic, which is how to approach during Nigerian business meetings.

G. Approaching Business Meetings in Nigeria Investing time on developing interpersonal relationships

prior to meetings is a common African trait (Ogbonna, 2010). We should expect on devoting a substantial amount of time on honing and nurturing each and every single relationship with our African members. This not only stands true for our Nigerian members but for our entire project group in general. Having more than six different nationalities in collaboration in an African country is a feat in itself. Bypassing this critical procedure will hamper any success we might see. Our initial meetings will therefore mostly revolve around establishing a level of comfortability and trust while maintaining a level of formality and politeness. In that sense, going into a business meeting with Nigerians will not be much different than starting a project group. It is also well advised that we present ourselves as a united front as any disagreement or upset in our team will only make our stakeholders wary and suspicious of our work. Lastly, if we intend on working with protocols or agendas, it would be highly advisable to send it beforehand so that our Nigerian business partners can do some preparation or have discussions with stakeholders that might not be able to show up (kwintessential.co, 2014).

VII. CRITICAL SUCCESS FACTORS AND CONCLUSION Success factors must follow certain criteria in order to be

called critical: They must be important for achieving corporate goals and objectives, must be measurable, i.e. controllable by the organization and they have to be few in numbers. Moreover they must describe all part of the process, not only the end result, but also be applicable to other companies with similar objectives and be hierarchical in nature. That means there will be critical success factors for both the whole organization as well as single functional areas (Freud, 1988).

A. Critical success factors On the organizational level, we define the following four

critical success factors:

• A critical mass of skilled human resource with the appropriate scientific background in pharmacy, pharmacology, chemistry and biochemistry.

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• A basic infrastructure for reliable source of electricity and access to clean water to meet an acceptable quality standard.

• A functioning national drug regulatory authority that the medicines produced locally is in accordance with good manufacturing practices.

• A timely and cost-effective access to raw materials, especially active pharmaceutical ingredients from China and India (United Nations, 2011).

In terms of the construction and legal department, the following critical success factors have to be met:

• A fast and secured handling of construction permits and property registration documents.

• A reliable creation of enforcing contracts, especially in the cases where bribes are needed.

For the International Relations department the critical success factor is:

• A mutually beneficial relationship with all governmental and non-governmental stakeholders.

B. Conclusion As of 2014, there are still a lot of opportunities for R&D companies in Nigeria as well as companies involved in the medical sector. Africa as a whole still has the lowest local drug production worldwide. Within Nigeria, a country with a population of more than 170 million, there are only 71 pharmaceutical companies, and only 8 of them are listed on the Stock Exchange. There are a lot of different incentives and tax reductions for international companies that invest in the country and produce their products either for the local market or for export. Factors that need to be ensured by the company are water, electricity, telecommunication and transportation. While the country itself cannot be seen as dangerous, any foreign businesses should stay away from the states that are reported as dangerous. As of the moment, no major conclusions can be made until management has processed our proposal and deliberate preparations have been made. However, it is our firm belief that with the information and research presented in this report, the project in Nigeria can be made possible and successful in launching our organization into new heights.

VIII. APPENDIX

Figure 1: Shows the dangerous regions in red.

(https://www.gov.uk/foreign-travel-advice/nigeria)

Figure 2: Organizational Chart

Figure 3: Project Governance

Figure 4: The Adaptation of PM Concepts to the African

Concept (Muriithi, 2003)

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Figure 5: Comparative Cultural Traits of Kenya, Nigeria and

the UK (Muriithi, 2003)

Figure 6: Location based risks

Figure 7: Main stakeholders

Figure 8: One Stop Investment Centre (Doody, 2010-2011)

Figure 9: Stakeholder map

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Figure 10: Common risks

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