Reasons to leave the cost of training in your project budget

by Francis on November 7, 2010

Often, dur­ing the pro­cess of ini­ti­at­ing new pro­jects, it seems that agreed budgets come under pres­sure, par­tic­u­larly when the newly appoin­ted pro­ject man­ager and cli­ent are review­ing where the mon­ies are to be spent, one of the the first thing to be ques­tioned and, often sub­sequently removed, is the cost of train­ing, which, while an easy tar­get for cost cut­ting on many pro­jects, can become a false eco­nomy to the over­all pro­ject objectives.

The review pro­cess goes some­thing like this; as the budget comes under scru­tiny, the pro­ject team tries to push train­ing costs onto their par­ent organ­iz­a­tion, arguing that the pro­ject is only tem­por­ary, but the par­ent organ­isa­tion is per­man­ent and as such will get long term bene­fits from the train­ing, the par­ent com­pany usu­ally then pushes back on this attempt, say­ing that the pro­ject deliv­ery group, whether internal or external, should bear costs of train­ing since the train­ing is for their pro­ject… The next tar­get for the costs is then the cli­ent, who again will usu­ally advise the pro­ject team that the costs should be in their budget since the pro­ject team and their par­ent organ­isa­tion will reap the long term bene­fits… and so the cycle con­tin­ues until either one party accepts the costs, a com­prom­ise is reached to share them some­how, or the bulk of the pro­posed train­ing is removed from the project.

How­ever, I would argue that the bene­fits of the train­ing are so tan­gible for all parties that the real ques­tion should not be how to min­im­ise the volume and asso­ci­ated cost of train­ing, but how much train­ing can the com­bined group provide to get the best trained and effi­cient pro­ject team possible.

In sur­vey after sur­vey, the item lis­ted as the biggest incent­ive for many per­son­nel, in both pro­ject and cor­por­ate roles, is the access to train­ing and per­sonal devel­op­ment, so spend­ing on train­ing will make employ­ees hap­pier and more com­mit­ted to the pro­ject. For the par­ent organ­iz­a­tion, a more highly trained pro­ject team will be more effi­cient and deliver the pro­ject to a higher level of sat­is­fac­tion for the cli­ent, redu­cing deliv­ery risk and enhan­cing the par­ent com­pany bot­tom line and repu­ta­tion as a for­ward look­ing organ­isa­tion that employ­ees want to work for. Finally, for the cli­ent, a more effect­ive pro­ject team, on both their and their con­tract­ors sides, will deliver their pro­ject with less risk, more reli­ab­il­ity and a bet­ter chance of improved bene­fits being real­ised from the project.

So, if the parties can agree on pay­ing more for train­ing to obtain these bene­fits, the next ques­tion is where to spend the money. For most tech­nical pro­jects, the team will be inclined to spend the money exclus­ively on tech­nical devel­op­ment such as more tech­no­logy tools, spe­cific tech­nical design skills and train­ing in the use of the new tools etc. Com­mu­nic­a­tion skills are usu­ally there­fore put at the bot­tom of the list and clasif­fied as “soft skills” that every­one already has, yet train­ing in just these skills can deliver quick and easy bene­fits that will enhance all aspects of the over­all deliv­ery of the pro­ject. A team which is bet­ter equiped to com­mu­nic­ate with one another, both intern­ally and extern­ally, will be a more effi­ci­cent team; meet­ings will become more pro­duct­ive, there will be less repe­ti­tion of work since every­one will be more aligned to the pro­ject goals, error rates should reduce since per­son­nel will be more aware of what their col­leagues are doing, and as such will be more inclined to work on tasks which bene­fit the work or the oth­ers rather than tasks which may con­flict or com­pete with other mem­bers of the pro­ject team’s work.

In essence then, I would argue that inter­per­sonal com­mu­nic­a­tions train­ing is a low hanging fruit as far as bene­fits real­ised rel­at­ive to cost expen­ded for any pro­ject whether under­taken by a co-located or vir­tual team, some­thing to think about the next time you are in a pro­ject budget cut­ting meet­ing and the cost of train­ing comes up for discussion.

If you have any thoughts or com­ments on this or any other posts here, please feel free to leave a comment.

Copy­right secured by Digiprove © 2010 Francis Norman
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{ 4 comments… read them below or add one }

David Jago November 8, 2010 at 2:26 pm

G’day Francis –

Being a trainer whose field overlaps communication, I can’t help but agree with you.

Yep, since everyone benefits, everyone pays. So the next step should be to decide how to split up the investment from each party. I would also argue that this should include both the initial “cost” and a plan to realise (or at least articulate) the benefits all round. This starts to look like peer learning, where folks make meaning together.

I suspect that the “logic” with communications (and other behavioural & contextual skills) goes soft = fuzzy = hard to define = hard to learn = too hard. In reality communication does have a large competency base. As such, it can be learned through a combination of skills training & practise, self-reflection and ongoing application.

Go well!

David

Francis November 8, 2010 at 8:38 pm

Thanks for the thoughts David, some very good insights there.

Francis

Rebecca Trelfa November 9, 2010 at 1:32 am

Communication is essential to virtual teams. If you have the right team, you don’t need to train them how to communicate. You just need to make sure that you have the right people working together. I use self assessments and 13+ years of interviewing skills to put virtual teams together. Taking the time to HIRE properly will ensure that your communication budget is little to none.

Francis November 12, 2010 at 3:53 pm

Thank you for your thoughts Rebecca, I agree completely that it is always best to hire people from the get go with the communication skills you and your business require, however, where it become necessary to blend pre existing, internationally distributed teams of people, people who are often hired for a different skill set, such as technical specialists or local knowledge experts, and where in some instances, these people may have been in position for many years prior to the need for internationalisation, the requirements for an appropriate training regime and the right sized budget becomes much more pressing. Without a clear understanding of the source of this budget and the benefits to each of the involved stakeholders, the training can often become a casualty of cost cuts, yet the cuts themselves may result in inefficiencies in later stages that are more expensive than the initial investment would have been.

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