Training And Education

In Level 3, there is a recognition that there exists a return on investment for training dollars. The benefits, or return on investment, can be measured quantitatively and qualitatively. Quantitative results include:

• Shorter product development time

• Faster, higher quality decisions

• Higher profit margins

• Fewer people needed

• Reduction in paperwork

• Improved quality and reliability

• Lower turnover of personnel

• Quicker "best practices" implementation

Qualitative results include:

• Better visibility and focus on results

• Better coordination

• Higher morale

• Accelerated development of managers

• Better control

• Better customer relations

• Better support from the functional areas

• Fewer conflicts requiring senior management involvement

Project management training and education is an investment and, as such, senior management wishes to know when the added profits will materialize. This can best be explained from Figure 7-6. Initially, there may be a substantial cost incurred during Level 2 and the beginning of Level 3. But as the culture develops

FIGURE 7-6. Project management costs versus benefits.

FIGURE 7-6. Project management costs versus benefits.

and informal project management matures, the cost of project management diminishes to a pegged level while the additional profits grow. The "question mark" in Figure 7-6 generally occurs during Level 3, which is usually about two to five years after the organization has made a firm commitment to project management.

A question normally asked by executives is, "How do we know if we are in Level 3 of the project management maturity model (the PMMM)?" The answer is by the number of conflicts coming up to the senior levels of management for resolution.

By Level 3, executives have realized that the speed by which the benefits can be achieved can be accelerated through proper training and education. Therefore the training and education in Level 3 does not consist merely of a few random courses. Instead, as discussed in the advancement criteria for completing Level 2 and moving up to Level 3, the company develops a project management curriculum. This will encompass a "core competency model" for the basic and advanced skills that a project manager should possess. Training is conducted to support the core competency skills.

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