Making the Case For ROI Training
IT managers with financial know- how deliver more cost-effective projects.
Computerworld - Three ROI "bullet points" slapped on a PowerPoint slide won't work to justify even the smallest IT investment. Top managers working with slashed budgets and smaller staffs want detailed cost-benefit analyses before they invest in new IT projects. Yet most IT professionals have never been formally trained on how to calculate return on investment or perform detailed cost studies.
That's beginning to change. Many businesses are kicking up their investments in project management and financial analysis training as a way to teach IT workers how to evaluate investments for ROI.
"CEOs and boards of directors are requiring specific information about financial costs and benefits before they will give the green light for new IT investments," says Lou Marcoccio, president of Marcoccio Associates, a Westboro, Mass.-based consulting firm specializing in cost/benefit analysis.
Project management training enables IT professionals to adopt a methodology that puts rigor behind business planning processes. "Many organizations have identified [project management] training as one of the best investments a company can make to bring the ROI they want," says John Bonnano, chief operating officer at TrainingTrack, a division of Boston University's Corporate Education Center.
UnumProvident Corp. is among them. "We realize training in project management and financial analysis is no longer merely a 'soft' item," says Rick O'Coin, the insurance company's director of IT education. "We can't ask IT departments to measure, evaluate and forecast ROI with no training or experience."
O'Coin says UnumProvident identified a gap in its IT training more than a year ago. "We weren't running projects well and weren't performing ROI or cost-benefit analyses as we should," he says.
Last spring, 30 of the firm's top IT project managers completed training from Boston University, which provided on-site sessions three days a week for nine months at the company's twin headquarters in Portland, Maine, and Chattanooga, Tenn. O'Coin says he's seeing an attitude shift toward ROI evaluation and project management training.
"When dollars were tight, we'd send IT professionals only for technical training, but not for other soft [skills]," he says. "Now we're sending those technology executives for project management training, and [we're] even evaluating what they've learned."
A year ago, says Marcoccio, only seven schools in the U.S. offered ROI-related training as part of their computer science programs. Now more than 1,500 courses are offered in colleges and universities and online. "This is a major money-making opportunity for many schools, as CIOs and IT organizations must learn to provide detailed cost analysis," he says.
Due Diligence, Please
Largely because of Enron Corp.'s financial woes, top managers are aware that they may be held liable if they don't exercise due diligence for potential investments. As a result, companies are performing quarterly financial breakdowns of costs, plus the direct and indirect benefits of any IT investment over a system's life.
- Study: Total Economic Impact of Google Apps Employees can work faster and IT spending can decrease when companies switch to Google Apps, says a commissioned study by Forrester Consulting. Going...
- Best Practices in BYOD - Addressing BYOD Challenges in the Enterprise Take control of the iOS, Android™ and BlackBerry® devices in your organization, from one powerful, unified console.
- Built for Business: 10 Reasons BlackBerry Smartphones Are Still the Best Way to Do Business The BlackBerry® 10 mobile computing platform removes many of the barriers that slow down other devices. Here are just a few of the...
- Choosing an MDM Platform: Where to Start the Conversation If you're in the early stages of choosing an MDM solution, or you're considering switching vendors, here are seven critical questions to ask...
- Increasing the Value of Your Reports and Dashboards Learn how incorporating other analytical capabilities such as predictive modeling and visualization can increase the value of your reports and dashboards by providing...
- Video surveillance for IT: maximum image quality, minimum bandwidth Join us on Thursday, May 8th at 1 p.m. EST when Willem Ryan, Senior Product Marketing Manager at Avigilon, will discuss how IT... All Management White Papers | Webcasts