Managers are increasingly being asked to justify the investment before undertaking the necessary changes needed to implement or to improve their PM processes.  Unfortunately, previous research into the question of PM’s Return on Investment (PM/ROI) has been largely anecdotal and speculative.

This research develops a process to measure the PM/ROI.  This study has shown that a positive tendency exits between organizations with higher PM maturities and favorable cost and schedule performance.  The result of this regression analysis is used as a basis to develop curves to forecast predicted cost and schedule performance levels for a specific PM Maturity level.

This PM/ROI calculation will assist managers to better understand and respond to queries from top managers about the cost effectiveness of project management.  The methodology presented makes it possible for managers to measure the potential benefits of projectizing an organization or improving a company's relative level of PM sophistication.  This, in turn, helps managers make more prudent PM investment decisions.
 

• Other related Research in Project Management:

• Benchmarking "Project Management Best Practices"
 
• Project Management Process Maturity Model

• Detail information can be obtained from:

by C. William Ibbs, Ph.D. and Young-Hoon Kwak, Ph.D.   Sept. 1997 PMI Publications 90 pages. ISBN:1-880410-32-X.  
 
 

• For Further Information, please send e-mail to Professor Young Hoon Kwak, Ph.D. or  C. William Ibbs, Ph.D.