Page 176 - DMGT302_FUNDAMENTALS_OF_PROJECT_MANAGEMENT

Unit 10: Managing E-business Projects

Self Assessment Notes

Fill in the blanks:
9. The measures for ....................... orientation describe the company’s success in acquiring
and retaining customers and sales.

10. ....................... measures indicate the effectiveness of internet marketing activities in meeting
customer, business and marketing objectives and can be collected online or offline.
11. Acquiring new customers is measured through the number of new customers and/or new
leads generated via the .......................
12. ....................... can be developed through reputation, relationship and knowledge of the
other party’s business.

Case Study Using ROI to Evaluate Project Management Training

eturn on Investment (ROI) is a monetary measurement that is used to evaluate the
efficiency and effectiveness of an investment made by an organisation. Investments
Rtake many forms, financial, human capital, equipment, and training programmes,
to name just a few. This article will focus on the use of ROI and the Phillips ROI
Methodology™ to measure the effectiveness of a project management training programme
completed within XYZ Law Firm. The 5 levels of evaluation which will be reviewed
within the case study are:
1. Level 1: Reactions (the “smiley” sheet): Did participants like the training they
received?
2. Level 2: Learning: Are participants confident that they have learned something from
the training programme?
3. Level 3: Behaviour/Application: Are participants able to apply what they learned in
the training programme back on the job?

4. Level 4: Results/Business Impact: Did the training show improvement in efficiencies,
productivity, profits, costs, reduced turnover?
5. Level 5: ROI: Did the training programme show a positive ROI?

Why the Interest in ROI for Project Management Training Programmes?
The challenges surrounding training and its effectiveness within the organisation have
become more complex over the years. Today, the challenge is even more significant for
learning and development professionals. Return on Investment (ROI) as a tool for evaluating
project management training is becoming an expectation of senior executives within
organisations. In today’s tight economy with reduced resources and tighter budgets, learning
and development professionals are finding it increasingly necessary to show the monetary
value of the project management programmes they are bringing to the organisation.
Today, the success of project management training programmes is measured by the
financial contribution of the programme to the organisation. It is not surprising then that
ROI measurements for project management training programmes are often requested.
With such a large focus on project management in all kinds of organisations, there is an
increasing desire to show the monetary benefit of investing in project management training
Contd...

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