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WARNING: Employees without the right project management skills could cost your business millions of dollars

THE CONSEQUENCES OF BAD PROJECT MANAGEMENT

Project management is integral to a successful business, regardless of which industry you work in. A PwC study of more than 10,000 projects across 200 companies, 30 countries, and various industries found only 2.5% of companies successfully completed all their projects.

Construction projects can be beset by delays, due to many factors such as a shortage of materials or labour, but a good project manager will ensure the delays are kept to a minimum or even eliminated. According to Deltek, a global provider of software solutions, even minor delays to construction projects could cost in the millions. A project valued at $50 million with a duration of three years could end up costing as much as $65 million with a 30% delay.

Source: Deltek

WHY DO PROJECTS FAIL?

Project management requires quality control, budgeting, and exceptional time-management. But when project management goes wrong its usually because of one (or more) of the following:

  • Lack of resources and talent
  • Communication breakdown(s)
  • Failure to identify roles and responsibilities
  • Lack of focused objective
  • Failure to stick to processes and plans

Therefore, making sure your employees have all the necessary tools at their disposal and the training they need is essential. You don’t want to see project failure and unnecessary budget blowouts.

EMPLOYEES WITHOUT THE RIGHT PROJECT MANAGEMENT SKILLS COULD POTENTIALLY JEOPARDISE YOUR BUSINESS.

A 2017 report from the US-based Project Management Institute found Australian companies on average wasted close to $110 million for billion dollars spent on infrastructure. PMI chief executive Mark Langley said the wastage was caused by a failure to retain good project staff.

“Champion organisations do this very well. One of the key things that they do, that Australia lags in, is defined career paths for project and program managers. There’s an opportunity for Australian organisations to start to invest in careers of project managers in both the public and private sector.” – PMI chief executive Mark Langley

If you are a business owner or CEO still unsure if it’s worth training your employees in project management courses, it’s time to re-evaluate your decision. Here’s four reasons why:

1. Good employees won’t stay

Research has found people who feel they are not developing are 12 times more likely to leave a company than those who feel they are getting the investment and training they need.

2. Every industry needs project managers

Although project management is usually associated with the building and construction sector, it is increasingly a skillset being used across a variety of industries. The Australian Institute of Project Management (AIPM), the peak body for project management in the country, has close to 8,000 members working in a range of sectors. Industries such as IT and professional services are increasingly using project management to transform their businesses, upgrade their networks and structures, or work with a variety of clients.

Source: AIPM 2019 Report

3. Investing in your employees can lead to greater profits.

There is data to suggest companies that invest money in training their staff can see an average increase in profit of 24%. A short-term cost is likely to pay for itself, and more, in the long run if you are willing to make the choice to provide training opportunities for your employees.

4. Upskilling your staff creates an internal talent pipeline

Training your employees produces a larger pool of talent so people can continue to progress in your company. Studies have found Australian companies take an average of 33 days to fill vacancies, costing business upwards of $10,000.

HOW TO GET STARTED

You can invest in your employees with an online project management course, such as the Diploma of Project Management BSB50820. The course is designed by industry experts to ensure students learn the key skills and knowledge to follow best practice in project management.

Importantly, the qualification is endorsed by AIPM.

“AIPM endorses courses that consistently demonstrate outcomes aligned to a relevant Project Management methodology and which reflect industry standards and current best practice. These courses must show a commitment to professional development and evaluation of industry practices.” – Australian Institute of Project Management

Source: AIPM 2019 report on the demand for project management skills

If you think your business can benefit from investing in your staff, get in touch today to discuss the options or learn more about how we can help your business

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