Page 180 - DMGT302_FUNDAMENTALS_OF_PROJECT_MANAGEMENT

Unit 10: Managing E-business Projects

Notes
that would have been lost from the bottom line had those projects that were measured not
been completed successfully.

The total cost of the programme was $320,000. This included planning for the ROI study,
food and beverage for participants in the programme, facilitator costs, development of
the customised programme, time out of the office for training, salary/fringe of participants,
etc. Any cost associated with the programme or planning for the programme was included
in the total costs. The biggest component of the cost was salary/fringe of participants,
especially since the attorneys and paralegals are billable resources.
Intangible benefits, those benefits that did not have a dollar value associated with them,
were also considered. They included:
1. Reduced anxiety over involvement in and managing projects.
2. Improved teamwork and reduced conflicts.
3. Satisfaction of managing partners and senior attorneys over status reporting on
projects.
These intangible benefits were able to be tied back to the programme and certainly
contributed to the success of the projects.
During phase 3, we calculate the ROI of the project management training programme,
using the ROI formula:

ROI = Net Programme Benefits/Programme Costs × 100
1. ROI = $665,000/$320,000 x 100
2. ROI = 2.08 x 100
3. ROI = 208%
For every $1.00 invested, $2.08 is returned after the costs are recovered. This was
significantly over the 20% ROI set at the beginning of the project during the planning of
the study.
Phase 4: Reporting

A report of the results of the study was presented to the managing partners of the law firm.
Components of the study were presented to the participants and others in the law firm.
The project was considered a success and it was decided that the 3 day customised project
management training programme would be rolled out firm-wide. Additionally, a half
day programme was created for the managing partners of the firm to provide them
training around how to support project initiatives. A future focus was to develop a portal
to house all project information. That was a “to do” for the IT/Application Development
department and would be a key strategic project for them.
Question
Analyse the case and Discuss the case fact.

Source: http://www.projectsmart.co.uk/using-roi-to-evaluate-project-management-
training.html

10.7 Summary

As we enter the new millennium, the internet-based way of doing business is certainly
going to change whole industries and markets and will therefore have a great impact on
consumers and businesses.

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