Every leader has heard that investing in workers’ development is the best way to motivate individuals and to help the company as a whole. However, recently leaders are beginning to question this, and they want their definitive proof that investing in development is worthwhile. In a post for the PM Perspectives Blog, Raed Haddad explores the value of project management training.
ROI for Development
If a company is going to invest millions of dollars in development, they are going to want to see that their people are improving. According to Haddad, this is especially amplified because of the changing workforce and the decline in talented, experienced individuals. The new workforce is challenging the traditional approaches to training. So, how can the ROI (return on investment) for workforce development be measured?
Haddad proposes that instead of measuring development in terms of “return,” organizations instead look at “value.” To begin, companies need to have a baseline of where they are presently and where they have been. Understanding these metrics is vital in understanding where the company and its people are going. This can be done by assessing individuals’ knowledge, competency, and the organizational maturity.
Assessing knowledge is quite easy and is a very low investment on the part of the organization. There are tools online that can easily help in this measurement. Competency is slightly more difficult to assess than knowledge. One of the better ways to measure this is to look at a few past projects that an individual worked on and measure certain elements of their performance. How was the cost performance, or did they stay on schedule? Additionally, customer satisfaction can make a huge statement on its own.
To measure organizational maturity, Haddad suggests utilizing an OPM3 or Framework assessment. These may take some time, but they provide invaluable feedback for the organization to consider.
You can read the original post here: http://www.esi-intl.co.uk/blogs/pmoperspectives/index.php/measuring-the-impact-it-is-not-mission-impossible-part-1/