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A Research Proposal
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Executive Summary
ETC is established to provide project management training and project management consultancy
to organizations focused on improving their project and overall performance.
This business plan is being undertaken to highlight the progress of ETC to be the leading project
management training provider in the country by the year 2020. Project management industry has
a big potential of growth in Malaysia. Recent launch of National Economic Transformational
Program as well as 10 Malaysia plan opens many project is undertaken both by private and
government agencies.
Although a lot of effort has been made, project failure that result of loses in billions of dollars
annually by both sectors is alarming. The key reason was in ability of the organization to practice
good project governance.
Thus ETC realizes this as an issue that troubling the organization and have taken the initiative to
help them on it. Apart from helping the organization to resolve this issue, ETC is planning to use
this opportunity to establish itself as the leading provider in project management training and
Consultancy
Contents
1.0 Introduction ............................................................................................................................................ 6
1.1
4
Citation.................................................................................................................................................... 71
9.0 Appendices ............................................................................................................................................ 72
Appendix 1 .............................................................................................................................................. 72
Appendix 2 .............................................................................................................................................. 78
List of Tables
Table 1: What are your total years of working experience
Table 2 ; Number of years working experience in project environment
Table 3: What is current job designation
Table 4 : Exposure to project management tools
Table 5: do you hold project management certification
Table 6 : Project Management as a career
Table 7; Project Success factor
Table 8; Project failure factor
Table 9: Project Governance
Table 10: Role of PMO
Table 11 Role of top management
Table 12 Leadership quality
Table 13: Project methodology
Table 14: Effective KPI measurement
List Of Figures
Figure 1 : Project Failure
Figure 2 : Multiple segment in Malaysia private education, (ETP,Education )
Figure 3 : Growth rate of industry in Malaysia (Education ETP)
Figure 4: Growth of GNI in Malaysia
Figure 5. Entry point Project in education sector
Figure 6: Summary of Education NKEA
1.0 Introduction
This research is undertaken to study the feasibility of setting up a project management academy
in Klang Valley, Malaysia. Although there are various companies and training organization that
conduct training on project management, but there is a big gap in bridging the need of the
organization and how a project is being managed, both theoretically and practically. The goal of
the academy is to narrow this gap and providing effective project management training with
relevant certification to enhance the individual and the organization competency
1.1
Company Background
ETC is established to provide project management training and project management consultancy
to organizations focused on improving their project and overall performance. This organization
is built by multi-disciplined professional with the combined experience more than 60years in
project management and corporate management. Our programs prepare various levels of people
in an organization in their involvement project management. Trainings are conducted by using
various types of engaging, advanced simulation techniques encompassing multi skill sets
Industry Background
Malaysia is considered as the new industrialized market economy, which is open and very state
oriented. In year 2012, Malaysia was ranked third among South East Asia largest economy and
29th in the world. Malaysia GDP also rose significantly throughout these years.
This rapid development started during the tenure of Malaysian fourth Prime Minister Datuk Seri
Dr Mahathir Mohammad, who transform Malaysia from agriculture based country to more
industrialized country. Numerous initiative and policy was introduced to improve country
economy through industrialization. All sectors such as construction, information technology, oil
and gas, infrastructure and even service based industry grow rapidly. He also encouraged
involvement private companies in developing Malaysia. This action plan creates numerous
projects in all sectors.
Vision 2020, to turn Malaysia into a develop nation, an initiative from Tun Mahathir saw rapid
development in Malaysia. Various projects was undertaken to realize this initiative the
development throughout the country especially in Klang Valley, Penang and Johor. Under the
current Prime Minister, Economic Transformation Program (ETP 2011) was initiated to further
improve the nation development. Introduction of ETP results in introduction to Entry Points
Projects (EPP 2011) to realize the goal and objective of ETP. EPPs are projects that should
generate big results fast. EPPs are clearly defined, with potential investors are already identified,
with well develop implementation strategy and plan with funding requirements clearly prepared
(ETP2011). EPPs are the initial start; more projects will be identified and implemented in
coming years. ETP are managed by PEMANDU, a unit in Prime Minister Department.
Some project was successful but they were enough failed projects too. One of the main reasons
that contribute to the failure is lack of governance in managing projects. Certain organization do
not have clear process how a project supposed to be created and managed to ensure the initiative
give appropriate results
Initially a lot of foreign expertise was sought to manage projects but a lot of initiatives was
introduced to increase the involvement of local talents. The participation of local talents was not
encouraging as how it was expected to be. During the tenure of Datuk Seri Ahmad Badawi, he
launched lot initiatives to improve the local talent. Although a lot of initiatives was introduced,
the development of the local talents still not very encouraging. The lack of talent also leads to a
lot of project failures especially in meeting the project specification and expectation
Various certifications are introduced by numerous training organizations such as PMP, Prince 2,
Microsoft projects and other type of projects management trainings. This certification is needed
to ensure the local talents can improvise their talents as well give them a strong platform to
implement what they have learned practically.
One of the major gaps that can be observed is, training company trainings the candidate on
passing the exam but not training them enough in applying what they have learned practically in
their working environment. This situation leads to another problem where the workforces are
informed but cannot apply what they have learned effectively in their work.
Project management based Project Management Book of Knowledge (PMBOK) version 5, can
be divided into 5 major process area:i.
Initiation
ii.
Planning
iii.
Executing
iv.
v.
Closing
These major process area are part of 10 knowledge area:1. Project Integration Management
2. Project Scope Management
3. Project Time Management
4. Project Cost Management
5. Project Quality Management
6. Project Human Resource Management
7. Project Communication Management
8. Project Risk Management
9. Project Procurement Management
10. Project Stakeholder Management
All these knowledge areas are further subdivided to 47 minor processes, which contain its own
input, tools and technique and outputs. Apart from that soft skills and management skill are vital
in managing project.
(PMBOK V5)
This indicates, that, if any organizations that invest in project management training will be able
to develop their employee not in managing projects but transform them to be an effective
workforce.
10
To ensure project are well implemented project governance play an important role as well.
11
Project failure
12
13
Based on these report The Standish group indicated that in 2012 CHAOS results show another
increase in project success rates, with 39% of all projects succeeding ; 43% were challenged ;
and 18% failed. Although the percentage of successful project increases, the combined
percentage of failed and challenged are still significantly high.
Percentage
Incomplete Requirements
13.1
12.4
Lack of Resources
10.6
Unrealistic Expectation
9.9
9.3
8.7
Specification
Lack of Planning
8.1
7.5
Lack of IT Management
6.2
KPMG in their global survey report in project management 2013 which was done across all
industry indicated similar finding as well as PwC survey gave the same results as well. The
reports shows project failures are global issues that need to be addressed collectively (KPMG
2013, PwC 2013).
14
This report also coincide with finding of Haslinda, Azizah and Othman, which concludes the
reason of Government ICT project failures reported in Malaysia are contributed by
1. Lack of Project Management Skills
2. Lack of contribution, familiarity and background and inappropriate ICT knowledge
among top management
3. Failure of the developer to align project with current technology
4. Complexity and Size of the projects with constant change in user requirement
5. Poor project management process used in managing the projects.
In AG report 2013, it is highlighted that Auditor General Tan Sri Ambrin Buang said, among
reason why project failed in Malaysia especially in government projects (AG report 2013)
Although the report points out more towards government agencies, it relates to the contribution
of the private sector as well. This is because most of the government projects are funded,
partially managed or fully managed by private sector through Private Funding Initiatives (World
Bank,2014) Although user requirement and involvement are important, vendor or the project
management team are equally important especially in aligning project strategic objective to
project management plan.(Standish)
15
If we fail, private sector also fail, this was statement from Datuk Idris Jala, the chairman of
PEMANDU in is interview with the (The Edge daily,2011)
Thus the AG report also reflects that the performances of private companies in managing their
projects are, similar if not in the same situation as per public agencies.
This indicates project failures are not solely dependent in managing time, cost and scope but also
include other contributing factors such as user involvement, managing technology changes,
aligning organization strategy with project as well project management skills among the project
stakeholders including project manager and project team member possess and learn . (Dr
Lynda,2007)
Poor governance is also cited as one of the main contributors to project failures.
Ensure a single point of accountability for the success of the project. This principle gives
Service delivery ownership determines project ownership. This places the business as the
important factor of project delivery and making sure the project governance model maintains a
service delivery focus.
3.
This will help to separate the decision makers from non-decision makers to ensure timely
delivery of the projects.
4.
Organizational line of command and accountability are different project decision making and
16
According to KPMG in the Global project management survey 2013, organizations that
consistently adopted good project management practices experience higher success rates from
those that did not. One of the practices that is listed was, the usage of good Project Management
office.(KPMG,2013)
Project governance is normally overseen within an organization by Project Management Office
(PMO). PMI describe is an organizational unit to centralize and co-ordinate the management of
projects under its domain (PMBOK V5)
Three types:
1. Supportive
2. Controlling
3. Directive
Other names might be; Programme Management Office, Project Office or Programme Office
17
18
Recent studies have indicated companies which adopt maturity model have shown a distinct
improvement in project performance.
Worldwide, the Project Management Office (PMO) is on the rise. It is increasingly recognised
that high-performing PMOs are not only impacting positively on project management
performance, but are boosting organisational performance as a whole.( KPMG)
Kamalia Sarjo, () in her report mentioned that in Malaysia ICT project implementation, many
standard methodologies and best practices of project management existed and being used
internationally such as PMBOK, ITIL, CMMI-DEV, PRINCE2, Adaptive or Agile Methodology
(ISACA, 2008), PPISA (MAMPU, 2010) but there are a lot of room for improvement. (kamalia
sarjo,2011)
Nor'ashikin (2013) reported in her study on the management of public sector ICT projects in
Malaysia showed less use of standard guidelines of project management methodology such as
PMBOK only 4% and PRINCE2 only 5% which is 50% used own approach and 25% no specific
methodology being used.( Kamalia sarjo,2011)
Their study also indicating not all company which have PMO and maturity model are successful
in project implementation. One of the reason indicated that the application of project process as
per the model are far from desired. This due to the employee do not understand the model
effectively and to put in use effectively. Thus, it indicates establishing PMO in an organization
as well adoption of the maturity model would not be enough if the implementation is not carried
out properly. Lack of training is cited as one of the major reason for this.
19
need in most of the organization (ETP,2011). Effective project management training will be very
helpful to develop project management skill as well as to practice project governance. Project
governance is tied to successful implementation of project methodology and maturity model.
This requires the organization to have more professionally certified employees to see through the
implementation.
Professional certification is important as it gives more global recognition to the individual as
well as to the organization. Professional project management certification such Project
Management Profesional (PMP), Program Management Professional(PgMP), Risk Management
Profesional (PMI-RMP), PRINCE 2 has wide global presence. Furthermore project management
terminology and jargons are standardized globally. Project communication and project
performance reporting will be made easier if these terminology are standardized within
organization itself. MDEC through their KPI program, listed PMP as one of training program
that is being funded by them. Potential candidate can apply to MDEC for grant to sit and pass the
PMP exam. A lot of organizations are encouraging their employees to maximize this
opportunity.(MDEC,2013)
Government agencies and majority of the private companies such SHELL are emphasizing that
their potential vendor must provide project manager with PMP certification. This is listed as one
of the tender qualification criteria as well.
However, (Clinton & Laurence, 2005; Pfau & Kay, 2002) reported that for certain organization ,
this investment do not give good results due to the training programs are poorly designed, as
most of it are not linked to a business strategy or the training outcomes have not been properly
evaluated. (World Bank Report,2014). Every training program must be evaluated since there is
no alternative way of ensuring that investments on training are worthwhile without doing
evaluation.(World Bank,2014)
Unfortunately training the employees in project management does not automatically guarantee
that the trained behavior is put into practice. Some project managers do not apply the skills and
techniques they learned during training effectively to the actual work as the training do not
simulate their actual issue in managing reports. Normally the training need is often on ad hoc
basis, often arises from reviews of troubled projects. (Garland,Ross 2009)
20
Although training provider offer various project management training according to the need of
the various industry, project uniqueness and how organization manages their project makes it
difficult for them to apply what they learn.
21
are in tertiary education could prepare them better to face the challenges when they are being
employed by the organization.
Recent report from the World bank indicated that, most universities cannot produce graduates
who are ready for the workforce unless they develop a clear, accurate understanding of what
potential employers are looking for in first time employees (entry level) and incorporate them in
their syllabus. Most companies do not engage themselves with the universities on such strategic
level, not communicate with them on their views or what are the undergraduate should be
learning to increase their employability. (World Bank,2014). Therefore there is a gap between
the requirement of the employer from what is learned and taught to the undergraduates. Training
providers do not see this as an opportunity for them, which bridge this gap by working hand in
hand with university to help them to resolve this gap.
Post training evaluations are equally important to measure the success of the training. Training
evaluation should not only based trainer performance or how the training was conducted but
should ask more engaging questions to further probe the effectiveness of the learning. The result
of the evaluation especially for the in house training should the shared with the organization to
point out what could be next course of action that can be taken to further improve employees
learning and applying what they have learned in their job.
Kirkpark training evaluation model is a well-known model for training evaluation is seldom or
not used effectively in evaluating the training by the current training. This model gives feedback
of the effectiveness of the training based on
Level 1 Reaction
Up to what level the trainees responded to the training
Level 2 Learning
To what level trainees acquire the intended knowledge, skills, attitudes, confidence and
commitment based on their participation in a training event
Level 3 Behavior
Up to what level trainees are going to use what they have learned in their job.
22
Level 4 Results
To what level targeted outcomes happens as a result of the training event and subsequent
reinforcement
One of the most practical and effective way to know the value of training initiative is through the
return of expectations (ROE). ROE will demonstrate to the level the expectation have been
satisfied. If it is done properly, it will give a positive outcome for the organization. (Kirkpark)
The most practical and effective way to show the value of an initiative is through return on
expectations (ROE). ROE is what a successful training initiative delivers to key business
stakeholders to demonstrate the degree to which their expectations have been satisfied. When
done properly, it cannot fail. This is because it is built on a platform of business partnership and
agreement from start to finish.
Industry Growth
One of the key area described in Malaysia Economic Transformation Program (ETP) is
Education NKEA (National Key Economic Area). The focus of the National Key Economic Area
(NKEA) of Education will be on strengthening the private education services sector by
increasing private consumption and investments as well as expanding education exports.
23
24
25
26
Based on the buisness reviews several key point have beed highlighted
1. Project failures are not only based on time, scope and cost only. Lack of project
management skills plays a major role as well.
2. Project governance through a strong maturity model is vital of project success
27
3. Employees is not or could not apply what they learn in training effectively in their job
4. Current training models is not effective enough in fulfilling the need of the organization
There is plenty of opportunity of growth in training industry
ii.
iii.
iv.
28
2.
Probability sampling
Probability sampling is used when inferences need to be made from the sample population to
answer the research question. (Mark Saunders, Philip Lewis and Adrian Thornhill)
Non Probability sampling
Non probability sample is used when the probability of each case is not entirely known and it is
impossible to answer the research questions that require making statistical inferences about the
character of the population. (Mark Saunders, Philip Lewis and Adrian Thornhill)
The target respondent for this survey is large and scattered around in various industry and
location. Thus it will not be practical to conduct a survey for the whole population. Therefore I
have chosen non probability sampling method to conduct this survey.
Purposive sampling or also known as judgmental sampling which a type of non-probability
sampling is used to conduct this survey. It allows the user to select, the cases that best answer the
research questions and to meet the objective (Mark Saunders, Philip Lewis and Adrian
29
Thornhill). It is commonly used when the user is working with very small samples and to select
cases that are particularly informative.
30
Ethical Issues
Considering the sensitivity of the research to management of the organization, I gave assurance
that I will not disclose any of the participants names, their position in company, the project they
are working on and any related matter that will breach individual ethical conduct to any third
party, other than purely academic reason with Cardiff Metropolitans University (CMU).
Consent from the participant will be given the highest priority. The target respondent also has the
right of refusal in not participating in the survey. Privacy and confidentially of the target
respondent will be protected while conducting the survey as well. Apart from that as the person
who administer the survey, I will be impartial in analysis of the findings and fully committed not
to be involved in any sort of plagiarism
31
0-3 years
3-5 years
6-8 years
9-10 years
11%
25%
12%
40%
12%
32
0-3 years
3-5 years
6-8 years
7%
36%
26%
31%
33
Senior Management
Team Leader
Team Member
8%
45%
41%
6%
34
Disagree
No Opinion
Strongly Agree
Strongly Disagree
9%
33%
22%
11%
25%
35
36%
26%
0-3 years
3-5 years
6-8 years
31%
Disagree
No Opinion
11%
38%
32%
19%
Strongly Agree
36
49% respondents agree that project management is a good career option for them. If this data
compared to table 4 and 5, we could indicate that respondent who has a certification agrees that
project management is a good career option for them. 32% of them indicating that they do have
no opinion on this matter, this could happen due to lack of project management training or it
could simply be, that are not interested in becoming a project manager. 19% indicates that they
not in favor to take project management as their career option.
37
Disagree
No Opinion
Strongly Agree
Strongly Disagree
4%
7% 11%
25%
53%
Disagree
No Opinion
3%
Strongly Agree
9%
14%
52%
22%
Strongly Disagree
38
Table 7 and Table 8 indicate a common problem faced by most of the respondents that they are
facing major issues in managing their projects. 60% respondent disagree or strongly disagree that
their project are not challenged, while 74% of the respondent strongly agree that they are facing
major issues in managing their project. If we compared this finding with the previous data from
table 1 to table 6, it does not matter if the person has large number of experience in working
either in project or not, even if they have certification or not, most respondents do experience
major issues in managing their project. This finding also make data in table 4 more relevant as an
exposure to training with certification will be a help for the respondent to manage their project
more effectively. Finding from table 5 compared to finding of table no 7 and 8, leading holding a
leading role in project environment also is not helping them to resolve their issue in managing
their project.
Project governance and leadership
Disagree
No Opinion
Strongly Agree
Strongly Disagree
3%
11%
35%
33%
18%
39
Disagree
No Opinion
Strongly Agree
19%
18%
52%
11%
40
Agree
Strongly Agree
48%
32%
No Opinion
Strongly Disagree
Disagree
11%
Disagree
No Opinion
Strongly Agree
Strongly Disagree
7%
19%
43%
19%
12%
41
19% and 43% of the respondent strongly agree and agree leadership quality is a must in ensuring
the project success, while 19% of the respondent either strongly disagree or disagree with the
finding. Strong leadership is a must in project success as they are the one who could even
empower the PMO to manage project governance in project.
Disagree
No Opinion
Strongly Agree
Strongly Disagree
4%
36%
29%
15%
16%
42
Disagree
No Opinion
Strongly Agree
20%
47%
26%
7%
Key Findings
Based on the data analysis, it can concluded that
1. Strong involvement of top management in setting up a PMO, which uses a good project
process and methodology and sets performance based reward, will ensure successful
project delivery.
2. Project management training with certification will help the project team members to
understand the need of the projects and deliver them successfully
43
5. Buisness Model
5.1 Buisness Model Canvas
Multi National
Copanies
Small Medium
Industry
Universities
GLCs
Individuals
Value Proposition
Channels
1. Competitive Pricing
1. Social Media
1.
2. Simulation Models
2. Education Booth
2. Games Series
Key Activities
Competition Strategy
Relationship
Key Partnership
1. Government Agencies
Revenue stream
Market
Leader
One stop
center
for PM
In
Training
Sales booth
Value
Chain
44
Apart from that, small medium industry who do not have their project management office in their
organization. ETC will provide them with appropriate consultancy to set up project management
office(PMO) by using a maturity model
One the most important part of the business id to get the accreditation for the local universities from
Project Management Institute to get some of their program recognized. Apart from that introducing
project management certification at the tertiary level will be our priority.
Individual who want to improve themselves or looking for a career change will our potential customer as
well.
Value Proposition.
ETC will place its strength by offering value for money product and services. Apart from that our
signature product will be our simulation based training using SIM games, which improve the trainee
learning rapidly
Competition Strategy
Our strategy will be let our experienced trainer who are practitioners and expert at forefront in
introducing our value for money services
Channels
Our main channels are to will be our seminars and workshops. It will be done at organization location or
at a joint location. Other organizations will be encouraged to join in as well.
Relationship
Our key relationship partner will be with the government agencies as they are our main contributor for
training grants through various scheme that can be used by the organizations
Key Activities
Our key activities will be organizing sales booth. A new initiatives to organize inter universities project
management simulation games will be one of our key activities.
Our Key Partnership
Our key partnership will be establish with Project Management Institute, US and Association For Project
Managers, UK
Value Chain
We will position ourselves as the one stop center for project management training and consultancy
45
Introduction
Mission Statement
1. ETC training center advances and propagate project management maturity through the
development of human capital.
2. ETC will ensure that our programs will be tailor according to industry and organization
need by qualified and experienced trainer in best possible learning experiences.
3. ETC will ensure that, the fees charged will be value for money, without compromising
quality customer service and delivery.
4. ETC will ensure that our training and services are validated by international body to
emphasis our quality of service.
46
Our Vision
ETC aims at becoming the training provider of choice, who is measured by its high standards of
excellent training, and doing so becoming the industry leader in implementing growth and skill
enhancement with the authority to implement those skills in their respective organization.
47
Our Values
Integrity Customers will be treated ethically, fairly, and honestly
Teamwork Work as a team with customers to realize their training benefit
Service Customers will be rendered value for money services
48
Marketing Plan
As a new business startup ETC has decided to use 4P marketing strategy as part of its marketing
plan.
Target Market
1.
2.
3.
4.
5.
49
a. People
b. Process
c. Technology
ETC focuses in providing the following services and solutions to develop organizational
maturity in implementing projects. Our product provide the solutions for the key finding
in business review section that mainly emphasis on
1.
Project failures are not only based on time, scope and cost only. Lack of project
3.
Employees are not or could not apply what they learn in training effectively in
their job
4.
Current training models is not effective enough in fulfilling the need of the
organization
50
Below are product and services that will be offered by ETC to its potential customers.
Competency Assessments
Our consultants will start with a Project Management Maturity Assessment to identify the
gaps in people, processes, organization and technology. A road map will be designed to
bridge the gaps to achieve the desired maturity level. Organization will be able to choose
from two different type of Maturity model:
i.
PMI- OPM3
PMI-OPM3 is established by Project Management Institute (PMI) and uses PMBOK V5
as its guide for project management governance
ii.
P3M3
P3M3 is established by AXELOS which uses PRINCE2 as guide for project governance
ETC also assists in the setting up of a PMO in an organization. This service is offered to
the organization who want to establish PMO as part of their project governance. We
provide guidance in developing organization structure, roles and responsibilities of the
PMO team, governance, processes and technology based on the requirements by clients.
Organization also will be provided with proper training and a suitable maturity model
will be implemented.
This service is provided for the organizations which already have a PMO, but do have
clear methodology and project process. Standardization and clear directions are important
in implementing projects consistently and successfully. ETC will assist organizations to
develop clear processes based on international standards and best practices, and then
automate them to be available on the organizations intranet.
51
Certain organization may find it difficult to manage their current projects which they
want to outsource. ETC will provide leadership to implement End-to-End management
throughout the project management life cycle.
As mentors our consultant will assist and audit the project teams in implementing
standards and best practices. ETC also act as the independent facilitators in assisting
internal meetings of strategic or project plans.
Technology
ETC will assists organization in managing their portfolio and project management
process by using customized software.
Dashboards
ETC will develop executive dashboards for the organization to enable them to manage
their project reporting and performance management.
52
This service is targeted to the learning organization that are interested to incorporate
project management into their syllabus and to conduct training for their students. This
workshop will lead to proper project management training with professional certification.
This service is offered to the local learning institution to get their program such as
diploma, degree, master or doctorate in project management accredited by Project
Management Institute. (PMI).
53
Based on above mentioned service and solution ETC has developed a variety of training
programs.
Target Audience
Type of Training
Sponsor/Senior
Management/CEO
Middle Managers/
Project Managers/
Team Leaders
54
Open Training
ETC will conduct a full training evaluation using Kirkpark training evaluation model
before and after training to ensure the training need of the organization is addressed as
per their return of expectation (ROE). We believe by using this approach we could
improve the application of training knowledge in their job by employee and eventually
improving the productivity of the organization in managing their project successfully.
ETC also will seek formal accreditation from the two leading project management body
in the world Project management Institute (PMI) and Association for Project Managers
(APM) to strengthen the product value and position. Apart from that ETC also will
collaborate with local learning institution to develop and to deliver project management
certification within their institution as well. Currently, none of the local learning center
have obtained any accreditation from PMI for their programs.
55
Competitive Advantage
1.
ETC consultant, trainers are practitioners who total combined more than 60years
Blending of professionals who understands current and local issues faced by the
organizations
3.
4.
effectiveness of training
5.
One of the pioneer in embarking simulation and role play based project
management training.
6.
Cater to the need of younger generation by using social media as tool for learning.
56
Price
ETC will price its services and training programs at a premium price level, approximately
10% above the market rate. ETC will than wills showcase value added services and offer
promotional rate to attract potential customers. Apart from that ETC will also introduce
discounted trial trainings, bundling several training programs together at attractive prices.
Referrals system will be used to encourage trainee to bring more participants to the
training.
For small and medium organization ETC will position itself as a consultant who can give
them a holistic solution to address their issue in managing their project. Several training
program will be used to answer their need at competitive pricing in exchange for long
term engagement as a training provider cum project consultants. This will ensure a long
term partnership and business relationship with them.
For the large organization ETC will customize the training and services based on the
assessment conducted. The assessment will be given at a much discounted rate at the
beginning to penetrate into the organization. Based on the assessment and training
evaluation, ETC will suggest the right approach to improve the project performance in
the organization. Maturity model could be introduced as well as several training
programs that support the implementation of the model will initiated as well. This will be
giving them holistic solutions to address their issues, thus prevent them from seeking
other competitor.
As for the learning organization, roping their staff as parts of the trainer will open door to
conduct more workshop within them. It will be easier for ETC to approach the
management of the learning organization with the support of their lectures and several
findings from the workshop.
ETC pricing strategy is to position itself as a premium company with premium pricing,
but giving value for money training and services by being as long term training partner.
This will ensure the business and income continuity for ETC.
57
Place
ETC will rent a business unit in Bangsar South to serve as the office and training center.
Bangsar south is located right in between Petaling Jaya City and Kuala Lumpur City
Center. This is a new business center, where a lot of new small and medium enterprise
company making it as their base too. Bangsar South also easily accessible by various
mode of transport including trains. Major shopping complex such as MidValley Shopping
Center, Bangsar Shopping Center and Bangsar Village are within a short distance of
travel. Apart from that, various type of food and beverages restaurant ranges from
premium to standard easily available. Most of the buildings have obtained MSC status
building, with enable premium business infrastructure obtained with much lower price
due to government incentives. Easy travel, easy gateaway with premium till standard
restaurants offering all type of food and premium infrastructure center, will be able to
pull the crowd as well. Positioning ETC in this location will give a good branding as well
as a good starting place to operate the business.
Apart from physical location, ETC also will also position itself online through its website
and social media platform such as LinkedIn. Our main distribution channels in
participating in trade fair organized by various agencies. Setting up promotional booth in
business premises that host various types of companies will be one of ETC initiative as
well. Attractive catalogue that emphasis on the services and trainings offered by ETC will
be distributed professionally by dedicated sales force. Initial sales force will be small but
expected to grow bigger as more market share is being captured.
Partnership with learning organization enables ETC to open more doors within the
industry. Roping in the lecturers as one of our panel of trainers, will make them as
unofficial sales force that could bring more sales to ETC. Other existing trainers also will
be encouraged to promote ETC training and services, with the promise of better
commission structure and long term training opportunity with the organization brought in
by them. Online presence will be increased by using a dedicated personnel to position
ETC well in online platforms.
58
Although this are the similar strategies used by the most of the competitors, ETC will be
banking on value added services and unique product to push the sales through.
Promotions
ETC is planning to embark into unique promotion strategy apart from keeping the
traditional method of promotion.
One of the signatory product of ETC is simulation training based on SIM model. This
simulation programs need a minimum of four participants in a group to use it. An inter
learning center competition using the simulation will be launched. Every learning center
are allowed to send a maximum of two team for the competition. Winner will be selected
from the team who could complete the simulation with the best possible result with good
teamwork. The winners would win apprentice scheme in one of the leading project
management organization, besides winning the traditional trophies. The learning center
would also receive certain training incentive as well. This event will be slotted as an
annual ETC event. This would give ETC a good ground to promote itself to the industry.
Apart from that it also will encourage participation from three different sectors from
industry, learning center as well as ETC, as the training provider. This will create a right
synergy that will encourage further collaboration among us. Industry player participation
in local learning organization also will improve. ETC stand to benefit the most from this
venture as it can obtain further business opportunity from both sectors. Similar
competition will be conducted among the industry as well to encourage their participation
project management practices. Winners will set to take home several trainings for free
apart from trophies. Winning organization will obtain a free project maturity evaluation
for them.
Apart from this strategy ETC will also place advertisement in various leading industry
magazine from all industry to promote its product and services. Participating in
educational booth, career and trade fair will be an ongoing effort. Online promotion
through social media channels will be conducted as well. Project management workshops
59
Organizing project management seminars, led by panel of credible speakers will help
ETC branding as well. ETC core values ITS CLEAR will be used as the main thrust for
all the promotion activities and will be used extensively to position itself well in the
industry.
Most of the promotions timing will be evaluated to ensure the return of investment are
realized at the maximum rate.
60
Staff Management
Principle
The role of the principle of ETC will more focused in building business and relationship
rather than act as trainer. The principle is expected to open doors for more business
partnerships, strengthen the existing business relationship as well to constantly looking
for business opportunity as well. He is also will be responsible for the growth of the
company and to ensure ETC always stay on course to achieve their goals and business
objective.
In order to offer best quality services, ETC will be focused on employing high
experienced instructors and consultants with high degree of personable attitude. Industry
experience is a must with a strong professional certification. For a start ETC will have
only two full time trainers excluding the ETC principle who can act as the trainer as well.
Other trainers and consultants will be on freelance. This strategy will help ETC to have a
large pool of trainer and consultants without having a high operational cost. Full time
trainers will be also involved in developing training modules and materials. They would
play an important role in ensuring the modules that are being used are highest of quality
and fulfill the industry standard and need. Freelance trainers are allowed to use their own
material base on their area of expertise. Their material will undergo through a proper
quality check before allowed to be used in the training. The intellectual property rights
will still be with the trainers. Competitive per hour fees will be offered with long and
short term financial incentive as well. Full time and part time trainer are encouraged to
bring in sales as well with the promise of attractive profit sharing package. This is done
to keep their loyalty to ETC for a long run.
61
Sales Force
Sales team is a vital component in bringing in business for ETC. Two strong sales
personnel will be hired based on their knowledge of the industry, strength of their
network, high degree of sales success as well with a good and pleasant personality. They
will be offered a competitive salary with numerous incentives to boost their sales
performance. A specific annual target will be placed on them, broken into monthly basis
to ease performance measurements. Performance that exceed monthly and annual target
will give them attractive sales bonus and profit sharing in the company as well.
Office personnel
ETC is looking to hire two staff for this position for a start. More personnel will be hired
in line with the growth of ETC. The office staffs are expected to run the office and the
training center effectively. They also will play the role as training coordinator as well.
They also will be trusted to organize the training schedules for the training and to interact
with the trainers to confirm their availability. Answering calls and doing other office
related work is expected to be their normal routine duties. They too are allowed to bring
in sales although that would not be their focus of work. A good salary package with
annual performance bonus will be offered to them.
Training
Training will be conducted at client premises as well as in ETC training center. Other
venue such as hotels and other training halls will be used as per the client request.
62
Organization structure
ETC will start its operation by adopting this simple organization structure as a start. The
organization structure will be change in accordance to the growth of ETC in near future.
ETC
Principle
Trainers
Fulltime
trainers
Freelance
Trainers
Staff
Sales
Office
Personnel
63
Financial Plan
Based on the above business requirement , ETC have drawn up its Cash flow and income Statement for
three years.
The key assumption that has be included are
1. Training and consultancy are expected to grow within 5 to 10 percent every year
2. Long term partnership is maintain to obtain regular trainings
3. Cost of expenditure increase in the same rate as per the growth of training.
Cash Flow Statement for next three years
2,500
2,500
2,500
Number of persons
10
15
20
12
12
12
Year
Revenue
2,015
2016
2017
Training
600,000.00
1,800,000.00
2,400,000.00
7,200.00
21,600.00
28,800.00
240,000.00
720,000.00
960,000.00
247,200.00
741,600.00
988,800.00
352,800.00
1,058,400.00
1,411,200.00
24,000.00
48,000.00
48,000.00
Direct Expense
Materials
Labor
Gross Profit
Other Income
Consultancy
64
376,800.00
1,106,400.00
1,459,200.00
180,000.00
240,000.00
330,000.00
EPF
19,800.00
26,400.00
36,300.00
Utilities
12,000.00
13,200.00
14,400.00
100,000.00
Rent
180,000.00
180,000.00
180,000.00
6,000.00
6,600.00
7,200.00
24,000.00
26,400.00
28,800.00
Loan repayment
12,000.00
12,000.00
12,000.00
30,000.00
30,000.00
6,000.00
6,600.00
7,200.00
539,800.00
541,200.00
645,900.00
(163,000.00)
565,200.00
813,300.00
Capital
100,000.00
Bank Loan
300,000.00
802,200.00
1,615,500.00
Indirect Expenses
Depreciation
Traveling & Car park
Net Profit
Investment
400,000.00
Cash Flow
237,000.00
65
600,000.00 1,800,000.00
2,400,000.00
Materials
3,600.00
14,400.00
Labor
120,000.00 240,000.00
480,000.00
123,600.00 247,200.00
494,400.00
476,400.00 1,552,800.00
1,905,600.00
24,000.00
24,000.00
Direct Expense
Gross Profit
7,200.00
Other Income
Consultancy
24,000.00
500,400.00 1,576,800.00
1,929,600.00
180,000.00 240,000.00
330,000.00
EPF
19,800.00
26,400.00
36,300.00
Utilities
12,000.00
13,200.00
14,400.00
Rent
180,000.00 180,000.00
180,000.00
6,000.00
6,600.00
7,200.00
24,000.00
26,400.00
28,800.00
Loan repayment
12,000.00
12,000.00
12,000.00
30,000.00
30,000.00
6,600.00
7,200.00
Indirect Expenses
Depreciation
Traveling & Car park
6,000.00
439,800.00 541,200.00
645,900.00
66
Net Profit
60,600.00
1,035,600.00
1,283,700.00
256,740.00
60,600.00
1,035,600.00
1,026,960.00
67
organization
1. Competitive pricing
68
Risk Mitigation
Market
Technology
Risk: Constant changes in technology will make certain product obsolete and constant
purchasing of license is needed.
Mitigation: More training will be based on non product centric solution such as Goole
documents rather than using Microsoft project. This will also reduce the cost of licensing
for every year.
Operational
Risk: Cost of hiring consultants will be higher as more specialized trainers will be
required to conduct certain niche training program and consultancy.
Mitigation: Profit sharing option will be used to address this situation. More junior
consultants will be exposed to this type of training and consultancy earlier so they can
join the pool of senior trainer in near future.
69
7.0 Conclusion
ETC believe this business plan will be able to achieve the goals, which is to be the To be the
leading corporate training company in Malaysia by 2020. We believe with our strategy and
action plan the goal will work based on this key factors
1. Our strength in our trainers
2. Our simple and effective marketing plan
3. Moderate approach to all the potential customer in seeking business opportunity.
70
8.0 References
1. Garland, Ross. Project Governance: A practical guide to effective project decision making. London:
Kogan Page, 2009
2. PMI. (August 2013), Project management Book of Knowledge, PMBOK, United States: PMI.
3. Muller. (2008), Governance of Project Mangement, sweeden: Gower.
4. World Bank. (June 2014). Malaysian Economic Monitor. Malaysian Economic Monitor. 1, 1-120.
5. PEMANDU. (2011), New Economic Model of Malaysia, Malaysia: PEMANDU.
6. KPMG. (2013). Global IT Project Management Survey. Global IT Project Mangement Survey[online]. 1,
1-40.Available
8. Dietmar Pfahl et al (2003). Evaluating the learning effectiveness of using simulations in software
project management education: results from a twice replicated experiment. Dr Thesis, university of
Beilfield, Germany
9. Kamaliyah Sarjo @ Hj Ahmad. (April 2014). The Development of ICT Project Management Framework
in Public Sector Using Business Process Management Approach. International Journal of Information
Systems and Engineering (online),. 2, 1-10.
10. Price Waterhouse Cooper (2009). Whats wrong with Project Governance. Price Waterhouse
Coopers: UK
11. National Audit Department, Malaysia. (2014), Auditor General Report 2013, Putrajaya: National
Audit Departmant.
12. Prime Minister Department. (2010), 10th Malaysian Plan, Putrajaya, Malaysia: Economic Planning
Unit, Prime Minister Department.
13. Mark Saunders, Philip Lewis. (2009), Research methods for business students, UK: Pearson Education
Limited.
14. Haslinda Sutan Ahmad Nawi et al. (2010). Government ICT Project Failure Factors: Project
Stakeholders Views. JOURNAL OF INFORMATION SYSTEMS RESEARCH AND INNOVATION. 1, 70-79.
15. The Standish Group. (2014), Standish Chaoas Report 2013, United States: The Standish Group
16. Kirkpatrick. 2014.
http://www.kirkpatrickpartners.com/OurPhilosophy/TheKirkpatrickModel/tabid/302/Default.aspx.
[ONLINE] Available at: http://www.kirkpatrickpartners.com/. [Accessed 21 September 14]
71
17. Lynda Bourne, Dr, (2007). Avoiding Sucessful Failure. In PMI Global Conference. Hong Kong
Convention and Exhibition Center, 23-31 January 2007. Australia: Mosaic Project Services Pty Ltd. 2-7.
Citation
1. H.T Ong. (January 25, 2007). Effective Project Management - Essential Elements For Successful
Projects. CIOB Singapore and National University of Singapore. 1 (1), 10-55.
2. HM Treasury. (November 2007), Project Governance: a guidance note for public sector projects, UK:
HM Treasury.
3. Rosmah Mohamed & Arni Ariyani Sarlis Alias. (2013). Evaluating the Effectiveness of a Training
Program Using the Four Level Kirkpatrick Model in the Banking Sector in Malaysia. IBBM. 1, 4-10.
4. AXELOS. (2013), Portfolio, Programme and Project Management Maturity Model (P3M3)
Introduction and Guide to P3M3, UK: AXELOS
5. K. Yeo, "Critical Failure Factors in Information System Projects," International Journal of Project
Management,vol. 20, pp. 241-246, 2002.
6. Chow, T., and Cao, D.-B. 2008. A Survey Study of CriticalSuccess Factors in Agile Software Projects,
The Journal of Systems and Software (81:6), pp. 961-97
7. Economic Transformation Programme (ETP) Handbook. (2012). Chapters 7, 11 and 12. Available at
http://etp.pemandu.gov.my/download_centre.aspx
8. Malaysia Industrial Development Organization. (2013). Malaysia Investment Performance Report
2013.
9. Ministry of Higher Education, Malaysia. (2013). Graduate Tracer Study 2012.
10. MinistrWorld Bank. (2012). Malaysia Economic Monitor: Harnessing Natural Resources. Washington,
D.C.: World Bank.
11.World Bank. (2012b). Putting Higher Education to Work: Skills and Research for Growth in East Asia.
World Bank East
12.Asia and Pacific Regional Report. Washington D.C.: World Bank.
13. World Bank. (2013). Malaysia Economic Monitor: High-Performing Education. Washington, D.C.:
World Bank.y of Higher Education, Malaysia. (2013). Graduate Employability Blueprint 2012-2017.
72
9.0 Appendices
Appendix 1
73
74
75
76
77
78
Appendix 2
1.
I confirm that I have read and understand the information sheet for the
above study. I have had the opportunity to consider the information, ask
questions and have had these answered satisfactorily.
2.
1.
2.
3.
_______________________________________ ___________________
Signature of Participant
Date
_______________________________________ ___________________
Name of person taking consent
Date
____________________________________
79
Signature of person taking consent
* When completed, 1 copy for participant & 1 copy for researcher
1. Strongly Disagree
2. Disagree
3. No opinion
4. Agree
5. Strongly Agree
Questions
1. What is current job designation/ level?
____________________________________
2. What is your total years of working experience
a. 0-3 years
b. 3-5 years
c. 6-8 years
d. 0-3 years
3. No. of years working experience in project environment
a.
0-3 years
b.
3-5 years
c.
6-8 years
d.
0-3 years
80
4.
7.
Good project process with established methodology within organization will improve project
success.
1
8.
A clear and well defined Project Management Office (PMO) is vital for project success.
1
9.
Most project fails due to lack of clear direction and frequent changes in its deliverables.
1
10. Exposure to project management tools and training with certification will help me in managing
my project effectively.
1
81
14. Effective KPI and performance based rewards is important in delivering successful projects.
1