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Regional Project Management
Capacity Assessment
A study of the project management
capacity in the Western Balkans
This publication was produced for review
by the USIAD
Author: Tatjana Lukic
29/04/2010
Regional Project Management Capacity Assessment
2
CONTENTS
ACRONYMS AND ABBREVIATIONS ......................................................................................................................... 3
1.0 EXECUTIVE SUMMARY................................................................................................................................ 4
2.0 WHY IS PROJECT MANAGEMENT IMPORTANT FOR WESTERN BALKANS .................................................... 5
2.1 PROJECT MANAGEMENT COMPETENCE AS FACTOR OF INDUSTRY COMPETITIVENESS ........................................................ 5
2.2 GLOBAL NEED FOR PROJECT MANAGERS ................................................................................................................. 6
2.3 PROJECT MANAGEMENT AS MEANS TO INCREASE ABSORPTION CAPACITY OF ECONOMIC AID AND EU ACCESSION FUNDS ...... 6
3.0 SCOPE AND METHODOLOGY OF THE CAPACITY ASSESSMENT .................................................................... 7
3.1 SCOPE .............................................................................................................................................................. 7
3.2 METHODOLOGY ................................................................................................................................................. 7
3.3 PM CAPACITY INDEX ........................................................................................................................................... 7
4.0 FINDINGS OF THE PM CAPACITY ASSESSMENT ........................................................................................... 9
4.1 SUMMARY OF FINDINGS ....................................................................................................................................... 9
4.2 PM CAPACITY IN ALBANIA .................................................................................................................................. 13
4.3 PM CAPACITY IN BOSNIA AND HERZEGOVINA ......................................................................................................... 15
4.4 PM CAPACITY IN KOSOVO .................................................................................................................................. 19
4.5 PM CAPACITY IN MACEDONIA ............................................................................................................................ 21
4.6 PM CAPACITY IN MONTENEGRO .......................................................................................................................... 24
5.0 CONCLUSIONS AND RECOMMENDATIONS ............................................................................................... 27
5.1 PROPOSED PM CAPACITY BUILDING PROGRAM FRAMEWORK ................................................................................... 28
5.2 RECOMMENDED NEXT STEPS .............................................................................................................................. 29
5.3 MID-TERM RECOMMENDATIONS ......................................................................................................................... 31
6.0 APPENDIX A: SELECTED REFERENCES ........................................................................................................ 33
7.0 APPENDIX B: CONTACTS ........................................................................................................................... 34
7.1 ALBANIA ......................................................................................................................................................... 34
7.2 BOSNIA AND HERZEGOVINA ................................................................................................................................ 35
7.3 KOSOVO ......................................................................................................................................................... 36
7.4 MACEDONIA .................................................................................................................................................... 37
7.5 MONTENEGRO ................................................................................................................................................. 38
Regional Project Management Capacity Assessment
3
ACRONYMS AND ABBREVIATIONS
CAPM Certified Associate in Project Management
CES Center for European Studies
EBRD European Bank for Reconstruction and Development
EU European Union
ICT Information and Communication Technologies
IMF International Monetary Fund
IT Information Technology
KPEP Kosovo Private Enterprise Project
PM Project Management
PMI Project Management Institute
PMP Project Management Professional
RCI Regional Competitiveness Project
USAID United States Agency for International Development
WEF World Economic Forum
Regional Project Management Capacity Assessment
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1.0 EXECUTIVE SUMMARY
This study was conducted for the USAID “Regional Competitiveness Initiative“ (RCI), as a
part of the project named “Assessment of the Project Management Training and Certification
Potential in the Western Balkans1”, with the following goals:
• To understand the current status of the project management profession within the
countries of the Western Balkans, including the recognition or acknowledgement of
the project management profession by government, industry or other actors;
• To evaluate the future needs and interest towards implementing or expanding on
project management training and certification initiatives within each country.
The analysis was conducted over a three month period, from November 2009 to January
2010, combining desk research with visits to each economy and on-site interviews with
relevant parties. It has to be noted that the analysis was conducted within resource and
time constraints (each visit was three days in duration) and with limited number of
interviewees, under the assumption that their views and opinions truly represent the current
state of capacity within each economy. More importantly, there is no available research,
locally or internationally, focused at understanding project management competency in the
region, or documenting demand, supply or trends related to project management in
general. To substantiate research and describe the wider economic context, the Consultant
used the World Economic Forum, the World Bank, the International Finance Corporation,
USAID and similar renowned institutions as sources of market data and complemented it
with the proprietary PM Capacity Index scoring approach, developed specifically for the
purpose of this assessment.
Empirical analysis confirmed assumptions initially developed by the desk research that
project management training capabilities and awareness about the global standards in the
Western Balkans were practically non-existent (outside of Serbia). Local training providers
currently do not feature PM courses as a part of their standard commercial offering, partly
due to the lack of qualified local trainers and partly due to still low demand for this type of
training. There have been very few initiatives focused at developing project management
knowledge and competencies within the private sector, where there is the highest need for
such programs. Additionally, there currently are no professional organizations, such as
Project Management Institute (PMI) Chapters, that gather project management
professionals and lobby for recognition of the profession.
The interviews also demonstrated a strong need for project management training in the
public sector, especially within institutions cooperating with international bodies, donor
organizations, EU institutions and supervising or implementing major national or sector-
wide projects of high value (such as multi-million dollar infrastructure and ICT projects, for
example).
1 including Albania, Bosnia & Herzegovina, Macedonia, Montenegro and Kosovo
Regional Project Management Capacity Assessment
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On the positive side, it was noted that, within each country, there exists a core group of
individuals with an awareness about the value and need for global PM standards and
certifications, good knowledge base and strong interest in adding this type of training to
their service offering or university curriculum. This group of high quality candidates could
represent a core regional PM excellence group and would be ideally suited to disseminate
knowledge and global standards in their peer groups and industries in each country.
Based on these findings, the report ends with a set of recommendations that could be
implemented in both short and mid-term, addressing deficiencies across all sectors and
ensuring longevity and sustainability of any future capacity building program.
2.0 WHY IS PROJECT MANAGEMENT IMPORTANT FOR WESTERN BALKANS
2.1 PROJECT MANAGEMENT COMPETENCE AS FACTOR OF INDUSTRY COMPETITIVENESS
The growth potential of a country`s technology, engineering and service industries is based
on the existence of favorable conditions in several areas. These include, among other
factors, the IT and communications infrastructure, the research and development
environment, the legal regime and the quality of the overall business environment. The
supply of local talent, however, represents the most important factor contributing to the
competitive advantage of an economy over another. The skills, knowledge and business
acumen of the local employees, together with the quality of service, reliability and
flexibility of supply, are key factors required to compete effectively in the global markets
and attract foreign investments. In addition to technical knowledge, employees must also
possess expertise in areas such as project management, change management and
risk analysis, among others.
Studies such as the World Economic Forum`s Global Competitiveness Report in
2009-2010 show that a significant gap between the skills supplied by the education sector
in the region and the skills needed by the private sector represents one of the key areas
that impede the region`s economic growth. Options for life-long learning, on-the-job
training and continuous professional development are still very limited, as is the possibility
of attaining globally accepted professional credentials.
With the entry of global corporations into regional markets, local firms are faced with
though competition for important domestic projects, especially those financed by
international donors such as the World Bank, EBRD, USAID, European Commission and
similar institutions. To be able to compete with global players, local firms need to build
credibility and demonstrate superior service quality. Project management in particular
represents an area of competence that is indispensable for ensuring quality of the final
product or service, increased productivity of the workforce and efficient, transparent
allocation of resources. This has been acknowledged by the skills-gap studies conducted
in the region to identify deficient skills among the professionals in the leading industries,
which emphasized project management training as one of the key priorities for
firms.
Regional Project Management Capacity Assessment
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2.2 GLOBAL NEED FOR PROJECT MANAGERS
According to the Project Management Institute, US $12 trillion, 1/5 of the world's gross
domestic product (GDP), is being spent on projects this year. This has resulted in a
dramatic increase in the need for skilled project managers.
The global need for skilled project management is being raised by such organizations as the
International Monetary Fund, the World Bank and the European Parliament.
Gartner Inc., the leading provider of research and analysis to the global IT industry, found
that project management was the number on hiring priority of companies surveyed,
and at the same time the most frequently reported as "difficult to hire."
According to the Project Management Institute, in 2008, the Economist Intelligence Unit
(EIU), the world's leading provider of industry and management analysis, conducted a
survey of senior executives who were asked to identify the job category most important to
their current and future success. The results showed that:
• Project professionals were identified as the single most important management
job category.
• 97% of the other disciplines they listed were integral parts of the project
management profession.
• 60% stated that senior management collaborates directly with project
professionals. More than half of them indicated that this collaboration would
increase.
2.3 PROJECT MANAGEMENT AS MEANS TO INCREASE ABSORPTION CAPACITY OF ECONOMIC
AID AND EU ACCESSION FUNDS
In the Western Balkans, the need for project management competence is augmented by the
fact that, for the past twenty years, the region has been receiving significant amounts of
foreign aid. According to the Centre for European Research (CES), the total amount of
economic aid in the period 1995-2008 was more than EUR 6 billion per annum. Knowing
that the key method for distribution of this aid is project-based disbursement, it becomes
clear how critical it is to build local competence in project management in order to ensure
that the foreign aid results in the positive impact on the economic performance and avoid
fraud or ineffective use of resources.
Similarly, to be able to absorb the financing that is becoming available through the EU
accession framework programs and ensure the funds are spent effectively and the
projects accomplished successfully, the economies of the Western Balkans will need
increasing numbers of qualified and certified Project Managers, possessing
familiarity with the globally accepted methodologies and skills and competence in managing
projects, stakeholder expectations, resources and risks.
This is why USAID regards competence in Project Management as one of the key tools in
building sustainable competitive advantage for regional firms and individuals and has
recognized project management training and certification as a region-wide priority.
Regional Project Management Capacity Assessment
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3.0 SCOPE AND METHODOLOGY OF THE CAPACITY ASSESSMENT
3.1 SCOPE
The assessment was conducted over a period of
three months, from November 2009 to January
2010 encompassing the following economies in
the Western Balkans region (see Figure 1):
Albania, Bosnia and Herzegovina, Kosovo,
Macedonia and Montenegro. In Serbia, the
capacity assessment has already been conducted
by the USAID Serbian Competitiveness Project.
3.2 METHODOLOGY
To determine current capacities and level of
demand for training and expertise in project
management in the region, the Consultant
arranged visits to each economy and met with
relevant representatives and interested parties
from the private and public sector, ranging from private training organizations and IT
service providers firms to local chambers of commerce, governmental agencies universities
and relevant international donor organizations.
The interviews focused on the organizations` profile and their capabilities in the area of
project management, the learning/training approach, content of the course(s), and trainers’
capabilities to transfer knowledge through high quality instruction. In case of potential
beneficiaries, the analysis was targeted at understanding their existing competencies and
needs and interest for training and certification.
In addition, the visits served to identify potential beneficiaries of future project
management programs (should those be launched) and organizations that can act as
trustworthy local partners and service providers for PM training and certification delivery.
3.3 PM CAPACITY INDEX
In order to systematically and consistently evaluate the PM capacity of each economy, a
special index was designed, named “PM Capacity Index”. The index consists of twenty-
five qualitative indicators grouped into five distinct categories, as illustrated in
Figure 2 below.
The indicators are scored with grades from 0 to 2, with zero score awarded when there
is no or scarce evidence of capacity, grade one in cases where certain capacity exists
sporadically or is currently being developed, and grade two in cases when the capacity is
evident and wide-spread. The total score is then expressed as a percentage of the
maximum score and transposed into an index, with 100 representing the best possible
score.
Figure 1 – Map of locations visited
Regional Project Management Capacity Assessment
8
PM Capacity Area
1. Public sector capacity 2 points 1 point 0 points
1.1 Level of PM awareness among public sector employees High Moderate Low
1.2 Level of PM competence among public sector employees High Moderate Low
1.3 Existence of PM training programs for public sector employees
Readily
available Sporadically None
1.4 Existence of the PM office in government/at municipal level Yes Only PM team None
1.5 PM certifcations required in public sector procurement Yes Sporadically No
2. Private sector capacity (represented by IT industry)
2.1 Level of PM awareness among private sector employees High Moderate Low
2.2 Level of PM competence among private sector employees High Moderate Low
2.3 Existence of in-house PM training programs
Readily
available Sporadically None
2.4 Project Manager recognized as a job position Yes Sporadically Rarely
2.5
Management recognizing need for project management
competence Yes Sporadically Rarely
3. Academic sector capacity
3.1
University education includes project management as a
course/subject Yes Sporadically Rarely
3.2
University PM curriculum aligned with/based on global PM
standards Yes Only partially No
3.3
University PM lecturers aware of and certified in globally accepted
PM methodologies Yes Sporadically Rarely
3.4 University lecturers interested in attending TOT courses in PM Yes Sporadically No
3.5
Universities interested in adding Project Management as a subject
to their current curriculum Yes Sporadically No
4. Training industry capacity
4.1 PM courses available in the local language
Readily
available Sporadically None
4.2 PM courses delivered by foreign trainers in foreign language
Readily
available Sporadically None
4.3 Existence of multiple providers offering PM training
2 and more
providers
Single
provider None
4.4
Existence of a local training provider with REP (Registered
Education Provider) status Yes In preparation None
4.5 Training providers interested in attending TOT courses in PM
Yes, strong
interest Some interest No
5. Enabling Environment Capacity
5.1 Existence of a local PMI Chapter Yes Being founded No
5.2 Existence of other PM-related associations/chapters Yes Being founded No
5.3
Interest in PM demonstrated in local Chambers of
Commerce/business associations /NGOs Strong Sporadically None
5.4
Interest in PM demonstrated among local donors/international
institutions Strong Some None
5.5 Availability of the sources of funding to cover training
Readily
available Problematic Not available
6. TOTAL max 50 mid 25 min 0
7. PM Capacity Index (0 to 100) max 100 mid 50 min 0
Capacity score
Figure 2: PM Capacity Index: Indicators and Scoring
Regional Project Management Capacity Assessment
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4.0 FINDINGS OF THE PM CAPACITY ASSESSMENT
The assessment of the PM capacity in each of the economies of the region was based on the
analysis of five main components of the PM Capacity Index, as follows:
o Public sector capacity
o Private sector capacity
o Academic sector capacity
o Training industry capacity
o Enabling Environment capacity
The indicators in each of the capacity areas are related to the current state of PM
competence, level of awareness about global PM methodologies, level of interest in and
demand for PM training and certification and existence of local service providers or
institutional capacity relevant to each area. Serbia was used as a benchmark and a sort of a
“best practice” model due to the fact that it possessed the highest level of PM capacity,
achieved partly due to the results of the USAID Competitiveness Project, which trained
more than 200 professionals during 2009 but also due to the fact that there exists a long-
standing tradition of project management education in academia and certain industries, like
construction and ICT.
4.1 SUMMARY OF FINDINGS
The analysis confirmed assumptions initially developed by the desk research that project
management training capabilities in the Western Balkans and awareness about the global
PM standards are at a low level (apart from Serbia). The PM Capacity Indices of the
countries surveyed range from 20 to 46 (out of 100) or from one fifth to less than half of
the maximum capacity, as illustrated in the graph below (Figure 3).
Figure 3: PMI capacity indices in the Western Balkans
Regional Project Management Capacity Assessment
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While there have been sporadic attempts in the past several years to organize project
management trainings, mainly by NGOs, there have virtually been no initiatives focused at
developing project management knowledge and competencies within the private sector. This
is starting to change, however, as the USAID local projects have recently launched
training programs in project management in Kosovo and Macedonia, targeted at the private
and the public sector, respectively. This is reflected in the capacity score for the relevant
areas, as illustrated in Figure 4 below, where Macedonia and Kosovo have higher scores for
public sector capacity and enabling environment.
Figure 4: PM Capacity Score by Area
As the graph in Figure 4 above shows, there is pronounced interest and capacity for
Project management education in the academic sector in almost all of the countries,
especially Albania and Bosnia. University lecturers have expressed an interest in
modernizing their curriculums and aligning them closer with the needs of the private sector
by introducing subjects that would teach modern Project Management practices and follow
global standards, such as those of the PMI.
Outside of the academic sector, there are a number of training service providers specialized
in technology training and certifications (such as Microsoft and Cisco certifications) as
well as consultancy firms delivering customized training for international donor
organizations in each country, but those have limited knowledge of globally accepted project
management standards and low understanding of how to teach project management
principles to professionals. Macedonia is currently the only country where local training
Regional Project Management Capacity Assessment
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providers offer professional Project management training, but only through foreign trainers,
whereas training companies in other countries do not feature specialized PM training.
Additionally, there currently are no professional organizations, such as Project
Management Institute (PMI) Chapters that gather project management professionals and
lobby for recognition of the profession. Strong desire to form such a chapter was noted
in Bosnia and Herzegovina, where local enthusiast have started the process of formal
registration of the local PM society, and in Macedonia, where such initiatives have existed
for a couple of years but never gained critical mass to overcome the administrative
challenges and set up a local chapter.
This contrasts the professional services organizations in Serbia that have developed project
management training as an overall part of their client strengthening services. The firms
selected as partners in the USAID`s Serbia Competitiveness Project provide project
management consulting services, project remediation services, and training as part of their
overall business. They provide basic project management courses, advanced course studies,
as well as certification exam preparation. These companies are also heavily involved with
the Serbian chapter of the Project Management Institute (PMI), which develops
standards and manages the Project Management Professional (PMP) certification.
On the positive side, it was noted that, within each country, there exists a core group of
individuals or, in some cases, companies, with an awareness about the value and need for
global PM standards and certifications, good knowledge base and strong interest in adding
this type of training to their service offering or university curriculum. This group of high
quality candidates could represent a core regional PM excellence group and would be
ideally suited to disseminate knowledge and global standards in their peer groups and
industries in each country.
Table 1 below summarizes all the findings and provides qualitative scoring for each capacity
area within each economy analyzed, while chapters that follow will provide detailed
explanation of findings from each country.
Regional Project Management Capacity Assessment
Project Management Capacity Index Scoring Sheet Albania
Bosnia & Herzegovina Kosovo Macedonia Montenegro Serbia
1. Public sector capacity 2 points 1 point 0 points 0 2 1 5 1 2
1.1 Level of PM awareness among public sector employees High Moderate Low 0 0 0 1 0 1
1.2 Level of PM competence among public sector employees High Moderate Low 0 0 0 0 0 0
1.3Existence of PM tra ining programs for public sector employees
Readily available Sporadica lly None 0 1 1 2 0 1
1.4 Existence of the PM office in government/at municipal leve l Yes Only PM team None 0 1 0 1 0 0
1.5 PM certifcations required in public sector procurement Yes Sporadica lly No 0 0 0 1 1 0
2. Private sector capacity (represented by IT industry) 0 3 1 3 1 5
2.1 Level of PM awareness among private sector employees High Moderate Low 0 1 0 1 0 1
2.2 Level of PM competence among private sector employees High Moderate Low 0 0 0 0 0 1
2.3 Existence of in-house PM tra ining programs Readily available Sporadica lly None 0 0 0 0 0 1
2.4 Project Manager recognized as a job position Yes Sporadica lly Rare ly 0 1 0 1 0 1
2.5
Management recognizing need for project management competence Yes Sporadica lly Rare ly 0 1 1 1 1 1
3. Academic sector capacity 6 6 2 4 4 7
3.1University education includes project management as a course/subject Yes Sporadica lly Rare ly 1 1 0 1 1 2
3.2University PM curriculum aligned w ith/based on global PM standards Yes Only partia lly No 0 0 0 0 0 1
3.3University PM lecturers aware of and certified in globally accepted PM methodologies Yes Sporadica lly Rare ly 1 1 0 0 0 1
3.4University lecturers interested in attending TOT courses in PM Yes Sporadica lly No 2 2 1 1 1 1
3.5
Universities interested in adding Project Management as a subject to the ir current curriculum Yes Sporadica lly No 2 2 1 2 2 2
4. Training industry capacity 3 2 3 4 2 9
4.1 PM courses available in the local language Readily available Sporadica lly None 0 0 0 0 0 2
4.2 PM courses de livered by fore ign tra iners in fore ign language Readily available Sporadica lly None 1 0 1 1 0 1
4.3 Existence of multiple providers offering PM tra ining
2 and more providers
Single provider None 0 0 0 1 0 2
4.4Existence of a local tra ining provider w ith REP (Registered Education Provider) status Yes
In preparation None 0 0 0 0 0 2
4.5 Training providers interested in attending TOT courses in PMYes, strong interest
Some interest No 2 2 2 2 2 2
5. Enabling Environment Capacity 1 5 5 7 2 9
5.1 Existence of a local PMI Chapter YesBeing founded No 0 1 0 1 0 2
5.2 Existence of other PM-re lated associations/chapters YesBeing founded No 0 0 0 0 0 2
5.3Interest in PM demonstrated in local Chambers of Commerce/business associations /NGOs Strong Sporadica lly None 1 2 1 2 2 2
5.4Interest in PM demonstrated among local donors/international institutions Strong Some None 0 2 2 2 0 2
5.5 Availability of the sources of funding to cover trainingReadily available Problematic
Not available 0 0 2 2 0 1
6. TOTAL max 50 mid 25 min 0 10 18 12 23 10 32
7. PM Capacity Index (0 to 100) max 100 mid 50 min 0 20 36 24 46 20 64
Capacity score
Regional Project Management Capacity Assessment
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4.2 PM CAPACITY IN ALBANIA
4.2.1 ECONOMIC AND SOCIAL CONTEXT
With a population of 3.2 million and GDP per capita of 3,963 USD, Albania it is still
considered one of the poorest countries in Europe. Lagging behind its Balkan neighbors,
it is making the difficult transition to a more modern open-market economy. In recent years
the Albanian economy has improved, and infrastructure development and major reforms
in areas such as tax collection, property laws, and business climate are proceeding well. The
economy has shifted from agriculture and industry to services and construction. Meanwhile,
large scale migration has fueled high workers’ remittances, which make up around 13% of
GDP.
During 2004-2008, Albania experienced an average 6% annual GDP growth. Signs of
slowing in both construction and industry have been offset by high growth rates experienced
in the service sector (financial and ICT in particular) and the acceleration of public
investments. The country's growth and competitiveness, however, remain constrained by
low levels of exports and private and foreign investment, weak governance, and structural
bottlenecks in the infrastructure sectors. In the World Bank`s enterprise survey from 2007,
inadequate skills of the workforce are cited among the top five constrains for enterprise
development, as shown in Figure 5 below.
Figure 5: Top 10 Constraints to Firm Investment in Albania, source: World Bank
The official unemployment rate is 12.7%, with almost 60% of all workers employed in
the agricultural sector, although the construction and service industries have been
expanding recently. The GDP is comprised of services (50%), agriculture (19%), industry
(12%), construction (14%), and transport and communication (6%).
The economic context for adult education and training in Albania is difficult. There is a
very high rate of unemployment, while the black economy and irregular jobs are quite
Regional Project Management Capacity Assessment
14
spread. People coming out from school, even with a diploma, have many difficulties to find a
job especially in the formal economy. Status and attractiveness of vocational schools is still
low and possibilities for on-the-job training and continuing professional education extremely
limited.
The World Economic Forum`s Global Competitiveness Index for 2009-2010 ranks
Albania at 96th place out of 133 countries surveyed, due mainly to low scores in the areas of
infrastructure, business sophistication and innovation, market efficiency and macroeconomic
stability. Higher education and training component, relevant for this assessment, has a poor
overall score too, 90 out of 133, with local availability of research training and services
component fairing the worst, with a 110 score.
4.2.2 FINDINGS AND RECOMMENDATIONS
These results correspond with the findings of the assessment of the local capacity in project
management compiled from the interviews with the focus groups. During a three-day visit,
the Consultant met with the representatives of local training firms, IT companies, Albanian
IT Association, lecturers from Tirana University and local donor projects (GTZ and Parsh).
The full list of interviewees with their contact details can be found here.
As demonstrated by the scores in Table 1, overall PM Capacity Index in Albania is 20, or
1/5 of the maximum capacity. This low score is mainly due to the fact that the PM Capacity
in the public and private sector are almost non-existent, as there seems to be no
recognition of the project management profession, awareness about the global standards or
interest in specialized training.
In contrast to this, there exists certain capacity on the side of commercial training
providers, as well as pronounced interest to participate in TOT programs and obtain the
knowledge required to start offering PM education to the wider public. These are the
technology companies that already provide technical training (e.g. Microsoft or Cisco
learning partners) or consulting companies led by Albanian entrepreneurs with
international working experience and education and good knowledge of project
management. These companies would represent the core group from which the local PM
competence could be developed and suitable partners in any future capacity-building
program.
The academic sector capacity is also positive, judged by the reactions from the
lecturers at the School of Economics of the University of Tirana. While the current level of
awareness and knowledge are low, the interest in training and certification in project
management, as well as the willingness to introduce PM methodology into curricula, is
highly pronounced.
Analysis of the PM enabling environment showed that there are no local associations or
chapters dedicated to PM, and hence no organizational support for PM initiatives. Industry
associations, on the other hand, such as Albanian IT Association (AITA), expressed
interest in PM training and could represent a good partner in any future programs, due to
Regional Project Management Capacity Assessment
15
their access to leading IT companies in the country, openness and willingness for
cooperation.
International donors are concentrated on more pressing issues, such as reform of
primary and secondary education, modernization of curriculum and teaching methods,
vocational education and basic IT skills, so there is limited interest in PM training programs.
For a project management initiative to succeed in Albania, however, donor support is
essential, as the private sector does not have the means to finance training nor capacity to
promote the project management methodology or lobby for the recognition of the
profession. The first step in any future initiative would therefore be to secure support and
co-financing of international organizations, such as USAID, UNDP, IFC, EU Commission or
similar and create a wide-ranging program that will encompass the public, private and
academic sector. This would ensure that all key stakeholders share a common project
management toolkit, adhere to globally accepted standards and promote transparency in
project procurement and implementation.
4.3 PM CAPACITY IN BOSNIA AND HERZEGOVINA
4.3.1 ECONOMIC AND SOCIAL CONTEXT
Bosnia and Herzegovina is a middle-income country with an official gross national income
per capita of US$4,530. Approximately 53 % of GDP is created in the service sector, 23% in
industry, and 8% in agriculture.
Since 1995, Bosnia and Herzegovina has seen robust economic growth. The growth was
initially driven by reconstruction efforts, but as of late it is mostly driven by private
sector investments. The growth of BH exports in recent years has also been significant,
surpassing that of all other countries in the Balkans region. While exports are still
dominated by steel and aluminum, the shares of more technologically sophisticated
products have been increasing, as evidenced by rapid growth in exports of machinery, car
parts and furniture. However, all of the above export industries are suffering from weak
export demand, translating into a sharp drop in exports in 2009.
The results of the Labor Force Survey of May 2008 show the unemployment rate in BH
falling to 23.4% of the labor force, from 29% a year earlier. However, employment is likely
to shrink in 2009 as a result of the global crisis. Labor force participation remains very
low, at about 44% of the total working age population and informal employment is still high.
Poverty decreased in recent years, to 14% in 2008, but it still remains a concern. As
most poverty is income related, employment growth is the solution for the bulk of the
poverty problem.
Faster reforms are needed for Bosnia and Herzegovina to compete with other transition
economies, as it strives for deeper integration into European and global markets. In order to
do this fully, the environment must be conducive to a private sector, market-led economy.
In the medium run, improving the skills base of BH labor force will be a key
Regional Project Management Capacity Assessment
16
determinant of competitiveness. The workforce has to be able to adapt quickly and
efficiently to external business pressures and internal business re-engineering and acquire
skills and knowledge needed to survive in the business climate of intensive market
competition. This is confirmed by the World Bank`s enterprise surveys showing that
inadequately educated workforce is one of the top 10 constrains to firm growth (see Figure
6 below).
Figure 6: Top 10 Constraints to Firm Investment in BiH, source: World Bank
The World Economic Forum`s Global Competitiveness Index for 2009-2010 ranks Bosnia
and Herzegovina at 109th place out of 133 countries surveyed. This low score is due mainly
to deficiencies related to institutional and infrastructure capacity, low market efficiency and
poor level of business sophistication and innovation. According to the Index, local
availability of research and training services and extent of staff training have an
even worse score, putting Bosnia at the very end of the list, with scores of 130 and 131,
respectively.
4.3.2 FINDINGS AND RECOMMENDATIONS
To assess the level of PM capacity in Bosnia and Herzegovina, the Consultant met with the
key players in the Bosnian IT and training industry, representatives of the Chambers of
Commerce, industry associations and lecturers from the Sarajevo University,
representatives of the international donor projects, as listed here.
The findings resulting from the assessment are in line with the results of the Global
Competitiveness Index – the local capacity, as well as demand, for training and education in
the area of project management is very limited, and there is no wider recognition of the
project management profession and benefits of internationally accepted methodologies. This
is demonstrated by the scores in Table1, showing that PM Capacity Index for Bosnia and
Herzegovina is currently at around one third (score of 36 out of 100) of maximum
capacity.
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Due to the existence of specialized institutions for training of public sector employees as
well as generous support from donors sponsoring public administration training, project
management has been addressed as a topic within this target group and certain awareness
created. There however have not been any concentrated efforts or programs to train public
workers in internationally accepted project management methodologies such as PMI or
PRINCE, that leered to certification and ensure that knowledge acquired is applied in
practice or included as a necessary component in public procurement. Since Bosnia and
Herzegovina is supposed to be a recipient of various EU funding programs targeting EU
integration objectives, over the next several years, building project management
competencies of public sector employees who will manage these programs and distribute
funds, will be essential.
On the side of the private sector capacity and demand, represented by the IT industry,
there exists certain level of awareness about the internationally recognized PM
accreditations, but no in-house training programs or employer-sponsored initiatives to build
this type of competence among the workforce. One of the key reasons is the fear on the
side of employers that employees who attain certification will leave company for better-paid
posts in larger enterprises or abroad, resulting in a financial loss for the company investing
into this training. This fear is generic to all types of certifications, especially those related to
managerial skills and competencies, and prevents larger push for certification-oriented
training. This however is not the case for technology-related trainings, such as Microsoft and
Cisco, as those are easily sellable in the market and directly contribute to company`s
bottom line.
The PM capacity of the local training industry is essentially non-existent, as the only
provider of professional PM training in the Federation is a subsidiary of a Croatian IT
company, bringing in trainers from Croatia, while trainers from Serbia work with local
partners in Republic of Srpska. There however is pronounced interest from a number of
other training providers to participate in TOT programs and obtain the knowledge required
to start offering PM education to the wider public. These are mostly the technology
companies that already provide technical training (e.g. Microsoft or Cisco learning
partners) or consulting companies with training experience from local development
projects. Coupled with university lecturers, these actors would represent the core group
from which the local PM competence could be developed and suitable partners in any future
capacity-building program.
The PM capacity in the academic sector is also at the low level currently, as Project
Management is not taught as a subject at the University, only addressed as a topic at the
School of Construction Engineering. The technology-related schools still do not dedicated
much emphasis to this important area, focusing instead at the theoretical and technical
topics. This results in the lack of managerial, project management and soft skills in general
on the side of the graduates from technical faculties.
On the positive note, the School of Economics at the University of Sarajevo, has a
number of lecturers who have undergone basic training in project management (based on
PRINCE2 methodology) and expressed interest in participating at a more advanced TOT
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course in project management based on PMI standards. The School also has a commercial
training arm, and has plans for adding project management training to their training
offering. Selected professors from the School of Economics are also involved with setting up
a local PM association, to serve as impetus for a PMI Chapter, and therefore have the
potential to play a major role in any future PM training initiative.
Analysis of the PM enabling environment showed that there is pronounced interest in
organizing project management training on the side of Chamber of Commerce. Bosnia and
Herzegovina has a very comprehensive chamber system, down to the level of regions and
bigger towns, and chambers could be an excellent partner in promotion of future training
programs, due to their access to leading enterprises, openness and willingness for
cooperation. Bosnian IT Association (BAIT) has also expressed interest to participate in any
future PM capacity building initiatives.
International donors, such as UNDP, USAID and EU agencies, currently have no training
programs in this area, but have expressed interest in supporting or sponsoring future
certification oriented PM training programs targeted at specific industries or public sector. As
in the case of other Western Balkan countries, their focus has been on more pressing
issues, such as reform of primary and secondary education, modernization of curriculum
and teaching methods, vocational education and basic IT skills.
However, for a project management capacity building initiative to succeed, donor support is
essential, as the private sector has limited means to finance training and promote project
management methodology. Bosnia and Herzegovina is supposed to be a recipient of various
EU funding programs targeting EU integration objectives over the next several years, and
workforce development will certainly be one of the key focus areas, making EU projects and
agencies the primary source of potential support and funding for PM capacity building
initiatives. In parallel, USAID has just launched a Bosnian Competitiveness Project, where
PM training and certification could be incorporated as one of the workforce development
activities. Additionally, USAID could also support setting up of a Bosnian PMI Chapter and
help build capacity of the local training providers as the basis for sustainability of any PM
capacity building program.
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4.4 PM CAPACITY IN KOSOVO
4.4.1 ECONOMIC AND SOCIAL CONTEXT
Kosovo is one of the poorest economies in Europe, with per capita GDP of an estimated
US$2,683 per annum in 2008. Since the end of the conflict in June 1999, Kosovo’s
reconstruction has progressed, due to local efforts as well as generous donor support of
around €2.7 billion between 1999 and 2007.
Economic growth has continued at a strong pace at an estimated 5.4%, supported in part
by foreign assistance and on-going workers’ remittances (estimated at around 12% of
GDP). Private consumption and public investment accounted for a large part of this growth.
Future growth remains uncertain, given the ongoing underperformance of the energy and
electricity sectors, and slow reform progress in institutional matters (e.g., judicial reform,
land titling) that would help spur private investment and potentially FDI.
Poor infrastructure, political and legal uncertainty have resulted in only limited foreign
direct investment, making the economy dependent on the service sector, international aid
and remittances from the Kosovo diaspora. Although there is a solid foundation for private
sector development, the uncompetitive nature of its manufacturing base and its reliance on
retail and trade, makes the need for private sector development critical.
Private sector development is also indispensable for improvement of the labor market. The
lack of significant economic growth over the past few years has resulted in unemployment
rate rising to almost 45%, the highest rate in Europe. However, the existence of a large
“grey” economy means that the real rate of unemployment is probably somewhat lower.
Kosovo has one of the youngest populations in the region with over half the population
under the age of 25. Youth unemployment in Kosovo is five times higher than the average
within the European Union.
Figure7: Top 10 Constraints to Firm Investment in Kosovo, source: World Bank
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The critical issue in Kosovo is the urgent need to develop a solid private sector that will
sustain high economic activity and generate the necessary growth to facilitate significant job
creation.
The absence of an integrated skills and training infrastructure, as shown in Figure 7
above (based on findings of the World Bank`s enterprise surveys) is another characteristic
of the present economy. In the longer term, if left unaddressed, this will further undermine
already very low levels of productivity and discourage foreign investment.
In Kosovo, as in other transition countries, there is a widespread lack of essential
business management and technical/production skills such as the ability to perform
strategic business planning, organizational and operational management and financial
analysis, all of which are vital for starting and successfully operating a business. Due to the
absence of these skills, many potential entrepreneurs become reluctant to start their
business or tend instead to invest in low profit activities.
4.4.2 FINDINGS AND RECOMMENDATIONS
To substantiate the analysis of the PM capacity in Kosovo, the Consultant met with the
representatives of local training firms, leading IT companies, the Albanian IT Association
and the USAID KPEP Project during the workforce development conference in Ohrid,
Macedonia, held in November 2009. The full list of interviewees with their contact details
can be found here.
As demonstrated by the scores in Table 1, overall PM Capacity Index in Kosovo is 26, or
around 1/4 of the maximum capacity. This low score is mainly due to the fact that the PM
Capacity in the public and private sector almost non-existent, as there seems to be no
recognition of the project management profession, awareness about the global standards or
interest in specialized training.
Local training providers are scarce, and there is only one institution that currently
provides PM training, the Management Development Associates, sponsored by the USAID
Kosovo Private Enterprise Project (KPEP) and targeted at attaining the PMI certification. The
lecturers however come from abroad, conducting the training in English, as there are no
local PM experts with international certifications who could deliver training in the local
language. The price of the courses is quite prohibitive, costing more than 1500 USD for a 5-
day training, and the KPEP sponsorship is awarded only to those candidates who
successfully pass the PMP exam. Taking into account the level of demand, course and
certification costs and the fact that there are no examination facilities in Kosovo, there will
be very few candidates who will have both the ability and the funds required to attain
certification.
IT and training companies interviewed expressed interest to participate in a TOT programs
and obtain the knowledge required to start offering PM education to the wider public. These
companies would represent the core group from which the local PM competence could be
developed and suitable partners in any future training industry capacity-building program.
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The academic sector capacity is limited as well, with only the AUM (American
University of Kosovo) providing PM education as a component of its courses. There however
is certain interest in adding project management as a subject in the University curricula.
Analysis of the PM enabling environment showed that there are no local associations or
chapters dedicated to PM, and hence no organizational support for PM initiatives. Industry
associations, on the other hand, such as Kosovo IT Association (STIKK), expressed
interest in PM training and could represent a good partner in any future programs.
International donors, other than USAID are concentrated on more urgent issues, such as
reform of primary and secondary education, improvement of curriculum and teaching
methods, vocational education and basic IT skills, so there is limited interest in PM training
programs. This means that only donors who have industry-level programs or industry
certification and standardization project would potentially be interested in supporting a
wider PM training and certification initiatives.
4.5 PM CAPACITY IN MACEDONIA
4.5.1 ECONOMIC AND SOCIAL CONTEXT
Macedonia is a small economy with a gross domestic product (GDP) of about $9.6 billion
and with per capita GDP of an estimated US$4,120 per annum in 2008. Services - primarily
in trade and transport, and communications - account for above 60% of GDP. Around a
third of GDP is generated by industry, dominated by iron and steel, garments, construction,
and mining. Agriculture accounts for the remaining 11-12% of GDP.
Macedonia remains committed to pursuing membership in the European Union and
global economic structures. In December 2005 it obtained candidate country status for EU
accession and became a full World Trade Organization (WTO) member in 2003. The
improvements over the last few years were also reflected in the country’s strong
performance on the World Bank’s Doing Business report. However, economic problems
persist, even as Macedonia undertakes structural reforms to finish the transition to a
market-oriented economy.
Only around 63 % of the working age population participated in the labor force in 2008,
with 34% of it being unemployed. The unemployment rate, already one of the highest in
the region even before the crisis, has most likely increased since as the number of new job
contracts had fallen and lay-offs have picked-up. At the same time, absolute poverty
continues to affect around one fifth of the population. Given the strong ties between
employment status and poverty, the poverty rate is likely to increase as the labor market
situation deteriorates.
Labor force education and skills are competitive in some technical areas and industries
but significantly lacking in others. This is demonstrated by the findings of the World Bank`s
enterprise surveys, showing that inadequate skills of the workforce are one of the top ten
constraints to firm growth and investment in Macedonia (see Figure 8 below) . Without
adequate job opportunities, many with the best skills seek employment abroad.
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Figure8: Top 10 Constraints to Firm Investment in Macedonia, source: World Bank
The World Economic Forum`s Global Competitiveness Index for 2009-2010 ranks
Macedonia at 84th place, above all neighboring Western Balkans countries except
Montenegro. This is due mainly to good scores related to macroeconomic stability,
technological readiness and market efficiencies. Although primary, secondary and university
education fare rather well, local availability of research and training services and
extent of staff training have some of the lowest scores in the Index, of 101 and 103
respectively. These findings have been confirmed with the results of the PM capacity
assessment, where the lowest scores have been given to the training industry and private
sector capacity.
4.5.2 FINDINGS AND RECOMMENDATIONS
To assess the level of PM capacity in Macedonia, the Consultant interviewed a number of
important stakeholders: Macedonian IT Association (MASIT), leading training and ICT
companies, representatives of the IT and training industry, representatives of the University
of Science and IT of Ohrid, representatives of the local USAID office, EU TAM BAS, USAID
Competitiveness and USAID Business Enabling Environment projects, as listed here.
The PM Capacity Index for Macedonia is the highest of the economies surveyed after
Serbia, with the score of 46 (out of 100). This result is due to good level of capacity in the
Public sector, where the USAID has organized, through its e-Government Project, a
sponsored Project Management training for public sector employees, designed
according to globally accepted PMI standard and delivered by Serbian trainers, in
cooperation with a local training company. The training is now in process and is expected to
contribute to building project management competencies of government officials and give
them tools for improvement of documentation, better planning and implementation of
projects and increased transparency in project procurement and supervision.
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Macedonia is also the only country in the region where PM certifications are starting to have
better visibility in the market, and is even requested as a qualification on certain
tenders, mostly those financed by international institutions like the World Bank. This trend
contributes greatly to promotion of the PM certifications and project management profession
in general, and will certainly create additional demand for PM training in future.
Analysis of the potential of the local training industry shows that there is great interest in
project management and plans to integrate it into future training offering. There are
currently three local providers offering PM training, but only on demand. The key reason is
the absence of local trainers, who could deliver the PM training in the Macedonian language.
The lecturers therefore come from abroad, either from Serbia, or from US and UK. This
makes training courses expensive and limits access to only those people with advanced
knowledge of English, which is a small fraction of the population.
The PM capacity in the academic sector is limited as well, as project management is not
treated as a separate subject but generally taught as a topic at engineering and technology-
related schools. The approach is very theoretical and is not aligned with the global
methodologies, so the university graduates lack the skills and competence in project
management. The newly created University of Ohrid expressed the most interest in adding
project management as a full course to their curriculum and would be one of the key
candidates for any initiatives targeting academic sector.
Analysis of the PM enabling environment showed that there is pronounced interest in
organizing project management training on the side of the Macedonian IT Association
(MASIT), which gathers the leading Macedonian IT companies. International donors,
such as EU-funded TAM-BAS Program, intend to organize a PM training for the local
consulting community, while the USAID Competitiveness Project plans to do the same
for the industry professionals. If both of these planned programs are launched, together
with the on-going PM training for public sector employees funded by USAID e-Government
project, this will give great boost to the practice and competence of Project Management in
Macedonia and increase recognition of the PM profession. To sustain the momentum, a local
PMI Chapter should be created as well, to gather PM professionals and work on increasing
awareness about the benefits of Project Management.
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4.6 PM CAPACITY IN MONTENEGRO
4.6.1 ECONOMIC AND SOCIAL CONTEXT
Montenegro has been making a gradual transformation into a market economy since 1990.
In fact, in the short time since independence, the Montenegrin economy has been booming.
Montenegro’s GDP growth in 2008 was estimated at 7.5%., while GDP per capita was
US$5213. Growth to varying degrees has occurred in all sectors of the economy, but
tourism continues to be a leading sector and has enjoyed a considerable amount of foreign
direct investment (FDI). Inflation has been kept below 3% and the economy has benefited
from a reformed banking system and tax cuts. Montenegro’s foreign trade deficit continues
to be a problem however, as the volume of imports has been more than twice the volume of
exports for several years in a row.
Montenegro has eagerly pursued recognition and involvement within the international
community. It has joined the United Nations and NATO’s Partnership for Peace program in
2006, the IFM and the World Bank in 2007, while its formal application to the European
Union was lodged at the end of 2008.
Despite steady economic growth, Montenegro’s unemployment rate remains problematic.
Montenegro also suffers from a large shadow economy and significant hidden
unemployment. Labor market is set within the context of major skill deficits, shortages and
mismatches and high unemployment standing at 15.9%, while youth unemployment is
at approximately 20%. Substantial numbers of people do not have basic primary education,
and certain groups are affected more than others. Workforce skill deficits hinder business
competitiveness and reduce the supply of skilled labor. This is confirmed by the World
Bank`s enterprise surveys, showing that inadequately educated workforce represents one of
the top ten constrains to firm investment and growth in Montenegro (see Figure 9 below).
Figure 9: Top 10 Constraints to Firm Investment in Montenegro, source: World Bank
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According to the research by Employment Bureau of Montenegro, local employers find that
Montenegrin workforce lacks the following skills: knowledge of foreign languages,
communication and computers skills, technical/technological skills, organizational,
marketing and the financials skills.
The World Economic Forum`s Global Competitiveness Index for 2009-2010 ranks
Montenegro at 62nd place (out of133), ahead of all neighboring Western Balkans countries.
This is due mainly to good scores related to efficiency enhancers, such as technological
readiness, market efficiencies, higher education and training and health and primary
education. Somewhat surprisingly, local availability of research and training services
and extent of staff training have good scores as well, 64 and 65 respectively. These
high scores however do not correspond with the findings from the field when it comes to
project management competence and local PM capacity, as explained in the next section.
4.6.2 FINDINGS AND RECOMMENDATIONS
During a three-day visit to Montenegro for the purpose of field research, the Consultant met
with representatives of selected IT companies, training firms, local business associations,
Chamber of Commerce, Directorate for the development of SMEs, local USAID office
representatives and university lecturers. The full list of interviewees with their contact
details can be found here.
As demonstrated by the scores in Table 1, Montenegro`s overall PM Capacity Index is 20,
or 1/5 of the maximum capacity. This low score is mainly due to the fact that the PM
Capacity in the public and private sector is almost non-existent, and so is the capacity of
the local training industry. On the positive side, the government has just begun to include
project management certifications as a preference in some public tenders, which in turn is
starting to create interest in and demand for project management professionals with
globally recognized certifications.
Commercial training providers are few, and none of them currently provide training in
project management as a part of their regular offering. Some NGOs that were created with
support of international donors (e.g. Center for Entrepreneurship and Development, CEED)
posses certain expertise in general project management training and pronounced interest to
participate in TOT programs and obtain the knowledge required to start offering certified PM
education to the wider public. In addition, there are two technology companies that
provide technical training, who expressed interest to add PM training to their offering too.
These firms and organizations would represent the core group from which the local PM
competence could be developed and would be suitable partners in any future capacity-
building program.
The academic sector capacity is also limited, as project management is currently not
taught as a separate subject at any of the Universities. While the current level of awareness
and knowledge are low, the interest in training and certification in project management, as
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well as the willingness to introduce PM methodology into curricula has been noted on the
side of private universities, such as UDG or Mediterranean University.
Analysis of the PM enabling environment shows that there are no local associations or
chapters dedicated to PM initiatives. General business associations, such as Montenegro
Business Alliance, feature are highly receptive to supporting promotion of PM methodology
and open to greater involvement in any future training initiative. Governmental agencies,
such as Montenegro Chamber of Commerce and Directorate for Development of SMEs, also
expressed strong interest in PM training. While they currently do not possess the knowledge
required to deliver training, they have excellent logistics infrastructure, willingness for
cooperation and could represent a good partner in any future programs.
International donors, such as GTZ, have been focused at introducing new concepts and
approaches in the vocational educational and to issues related to increasing quality of
primary and secondary education. In the past several years, USAID has been focusing on
development of the capacity of the civil society and the NGO sector, as well as improvement
of the legislative capacity of the Montenegrin Parliament, so it currently does not have
projects related to workforce development. For a project management initiative to succeed
in Montenegro, however, donor support is essential, as the private sector does not have the
means to finance training nor capacity to promote project management as a profession. The
first step in any future initiative would therefore be to secure support and co-financing of
international organizations.
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5.0 CONCLUSIONS AND RECOMMENDATIONS
The findings of the assessment of the PM Capacity in Western Balkans demonstrate a
generally low level of project management awareness and competence in all economies
analyzed, as well as total absence of local capacity for advanced project management
training (except in Serbia). A combined PM Capacity Index for the region of 29.2 (out
of 100) shows that interventions are required in all five areas analyzed – private sector,
public sector, training industry, academic sector and enabling environment.
If we utilize the “capacity vs. interest matrix” approach to illustrate the findings summarily
and rate each economy against two key dimensions: level of interest in PM training
(high/low) and the current combined PM capacity (moderate/low), the result would be the
Figure 10 below, grouping the economies into four main categories.
Low Capacity High Interest Macedonia,
Bosnia
Moderate capacity
High Interest: Serbia
Low Capacity Low Interest:
Albania, Kosovo,
Montenegro
Moderate Capacity Low
Interest:
/
I
N
T
E
R
E
S
T
CURRENT PM CAPACITY
Figure 10: PM Capacity-Interest Matrix
The results suggest that the best candidates for intervention are Macedonia and Bosnia,
where the highest interest for PM capacity building has been detected and certain initiatives
have already been undertaken, either by the local USAID office, other donors or private
organizations. Supporting grassroots initiatives in these two countries, such as sponsoring
founding of local PMI chapters and capacity-building the local training industry, would
produce synergy with any ongoing projects in this area and ensure sustainability and
longevity of all project management-related initiatives.
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Albania, Kosovo and Montenegro require a more substantial approach and larger effort to
raise awareness about the benefits of project management within the enabling environment,
as well as more work to build project management knowledge and competence in the local
training industries.
5.1 PROPOSED PM CAPACITY BUILDING PROGRAM FRAMEWORK
The findings suggest that there is a clear need for training of private and public sector
professionals as well as capacity-building of the local training institutions and
academia in order to ensure sustainability and longevity of any training initiative, develop
local resources and embed project management education into formal education. Service-
oriented industries, such as ICT, Construction, and Tourism are primary candidates for
training, as increased PM competencies would have the most direct impact on productivity
and efficiency gains in these industries due to their project-based nature.
Public sector employees, on the other hand, require tools and concepts that will enable
them to increase rate of success of large public projects, more efficiently manage financial
and human resource; ensure transparency, control costs and minimize corruption and fraud
during project implementation. In addition, due to the low level of general awareness about
the project management methodologies, accreditation and certification schemes, it would be
necessary to include a strong awareness-building component into any training
program, as well as lobby for formal recognition of project management professional
qualifications. Figure 11 below outlines the framework for a proposed Project Management
Capacity Building Program and benefits expected.
Figure 11: A Framework for a Project Management Capacity Building Program
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5.2 RECOMMENDED NEXT STEPS
The key short-term recommendation would be to utilize the momentum and interest
generated by the study and organize a regional “train-the-trainer” program based on the
PMI methodology. The Program would provide PM training to selected professionals,
lecturers and trainers identified during the study and support their PM certification. The goal
would be to develop a base of credible regional PM experts and success stories that improve
the value proposition of training and certification, and increase acceptance and adoption of
global PM standards in the region (see Figure 12 below). In addition, a regional training
program that brings individuals from all over Western Balkans would offer opportunities for
networking and business linkages and foster regional cooperation and exchange of
knowledge.
Figure 12: Goals of a Project Management Capacity Building Program
In the next phase, these professionals would be tasked with introducing PM training into
their commercial offering, academia curriculum as well as in project implementation
procedures and everyday business practice, thus serving as a “best practice” example to
other market players. USAID`s support channeled through grants and technical assistance
to training service providers by local USAID project would be essential to ensure that the
results of “train-the-trainer” program from the first phase are disseminate the knowledge
obtained.
It is important to emphasize that any training program must be based on globally accepted
PM methodology and geared towards obtaining global certifications. To that end, the
recommendation is to refer to the world`s leading project management association, the
Project Management Institute (PMI), and design training program that is in accordance with
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the PMI Body of Knowledge and leads to their PMP or CAPM credentials. Ideally, the training
service provider would be a PMI-accredited REP (Registered Education Provider), but non-
accredited providers could be acceptable as well if they can demonstrate superior quality
and adherence to PMI methodology. Due to cultural and language proximity, it would be
ideal if the training provider were a company from Western Balkans with strong track record
in PM training in the local markets. Currently only Serbia and Croatia feature such training
providers, while accredited training firms can be sourced from Slovenia, other EU countries,
UK and US as well.
On the technical side, eligibility for the PMP certification exam requires a minimum of 4500
hours of practical experience and 35 hours of PM training. This means that any training
program devised by the USAID would need to cover 35 hrs or 5 days of classroom training
(with 7 hrs of training per day). An alternative would be to combine shorter classroom
training with online learning, saving costs and providing additional online resources to
candidates.
In summary, there are two options how the training Program could be organized:
1) Classroom training, organized either as a single boot-camp lasting 5 days (35 hrs) or
a combination of two shorter courses (e.g. 2 + 3 days) in a location which would be
the most convenient for all attendees;
2) Blended training, combining a 2-day introductory classroom training and online
learning using PMI-accredited online courses, providing access to more than 50 hrs
of PM training over the period of 1 year.
In terms of location for the on-site training, Montenegro or Macedonia would be the best
suited, because of the proximity to other countries, availability of suitable training facilities
and cost advantage.
To build on the USAID successes achieved elsewhere in the region, the recommendation
would be to consider engaging training service providers/lecturers from Serbia, as they
already posses expertise in PM training based on PMI standards (lecturers are also PMPs),
verified through the USAID Serbian Competitiveness Project and accepted by the PMI
(candidates trained through their courses successfully passed PMP examinations). While
these providers have the ability to deliver the training in English language, their
geographical proximity, common language and cultural fit with other Western Balkans
countries would be extremely helpful in knowledge transfer. Additionally, this option would
be highly cost-effective, as training fees in Serbia are a fraction of the training fees charged
in the US or the EU, potentially resulting in 30% to 60% cost savings.
The table below describes the two options and the costs associated with them. It is
important to note that the costs for the on-site training are based on the standard
commercial prices of Serbian (e.g. CPM at www.cpm.rs ) and global training providers (e.g.
PMT at http://www.4pmti.com/4daypmpbootcountryclasses.aspx?cid=10000). The cost for
the blended learning option consists of the on-site tutorial for 20 participants charged as a
lump-sum and a separate fee for each candidate taking online courses. The greatest benefit
of the blended learning model is in the fact that candidates would have access to a wealth of
PM knowledge (56 hrs of coursework) created by one of the leading online learning
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providers, Skills Soft (represented in Serbia by 2ETC, at
http://www.2etc.net/index_files/Page501.htm), while also receiving introductory on-site
training.
Alternative Description Course fees
1a) ON-SITE TRAINING with lecturers from Serbia
There are 6 training providers in Serbia delivering high quality PM training based on PMI standards. They are partnering with the USAID Competitiveness Project in Serbia to deliver training to professionals from the ICT, construction and public sector. The Competitiveness Project could provide recommendations for provider selection
US$150 -200 per participant per training day
(e.g. 5 day training course costs US$750)
1b) ON-SITE TRAINING with lecturers from the USA or EU
There is a large number of PM trainers and lecturers worldwide that provide world-class PM training based on PMI standards
While these courses are highly professional, this would be a fly-in/fly-out alternative with limited or non-existing mentoring possibilities and no effect on regional cooperation and knowledge sharing. The cost is also three to four times higher than the cost of regional training providers.
US$500-700 per participant per training day
(e.g. 4 day PMP bootcamp costs US$ 2400)
2) BLENDED LEARNING combination of on-site and online training
Training provider from Serbia offers a blended learning approach combining a 2 day on-site tutorial with a 1-year long access to 56 hrs of PMI-accredited PM courses and PMP exam preparation materials.
US$1050 in total for on-site tutorial plus US$ 450 per participant for 1 year access to online training
In case training delivery was performed by an STTA, the cost of the on-site training would
be significantly lower, as it would be based on the consultant`s daily fee, regardless of the
number of trainees (but maximum 15 per training class are recommended). Again, the
recommendation would be to engage a resource from the region as it would greatly enhance
the learning outcome due to language and cultural proximity.
5.3 MID-TERM RECOMMENDATIONS
With the view of securing long lasting results of a project management capacity building
initiative in the Western Balkans, it would be important to complement training programs
with a comprehensive promotional campaign that would raise awareness about the benefits
of project management across all sectors of the economy and lobby for formal recognition of
project management qualifications.
Public sector procurement requirements can be leveraged to include project certifications as
part of large projects and thus drive demand for project management expertise.
Increasing the demand for certified PM professionals within public sector generally leads to
a greater supply of PMPs within the marketplace and raises the overall quality of project
delivery.
Regional Project Management Capacity Assessment
32
Interventions targeted at both the private and the public sector would ensure that all key
stakeholders share a common project management toolkit, adhere to globally accepted
standards and promote transparency in project procurement and implementation.
Additionally, support to founding of local PM associations, with a view towards growing them
into recognized PMI chapters, would help build an institutional framework around the
training program and offer opportunities for further professional development and
networking and business linkages to PM professionals around the region.
The incoming Regional Workforce Development Workshop in Skopje, in April 2010,
organized by the RCI, will serve as an excellent venue to present and discuss the findings
from the study and assess interest for various training options proposed in the report. The
event will gather representatives of the regional USAID projects, other international donors,
industry associations, public agencies and private enterprises (mainly from the ICT sector).
The next steps and concrete action points will be decided upon based on the feedback from
the event participants, careful consideration of the report findings by the USAID, and the
regional workforce development priorities of the RCI and local USAID mission.
* * * * * * *
Regional Project Management Capacity Assessment
33
6.0 APPENDIX A: SELECTED REFERENCES
• World Bank: Country Briefs for each economy analyzed at http://www.worldbank.org.ba
(and respectively for each country)
• World Bank: “Doing Business Report” for each economy analyzed, at
http://www.doingbusiness.org/ExploreEconomies/?economyid=26
• World Bank: “Enterprise Surveys 2009” for each country analyzed at
http://www.enterprisesurveys.org/ExploreEconomies/?economyid=26&year=2009
• World Economic Forum: Global Competitiveness Report 2009-2010 at
http://www.weforum.org/en/initiatives/gcp/Global%20Competitiveness%20Report/in
dex.htm
• World Economic Forum: “Educating the Next Wave of Entrepreneurs”, 2009
• The European Training Foundation: “Designing Adult Learning Strategies – the case
of South-Eastern Europe”, 2006
• Eurochambers:” The Obstacles to investing in Western Balkans –the View of the
Private Sector”, 2009
• Industry analyses and studies such as:
o “Bosnia and Herzegovina ICT Sector Profile” by FIPA, 2005
o “Assessment of the Kosovo ICT Sector” by USAID, 2007
o “ICT as a catalyst for Growth” by USAID, 2010
o MASIT analyses at http://www.masit.org.mk/
o BAIT at http://www.bait.org.ba/Pages/view/33/1/
Regional Project Management Capacity Assessment
7.0 APPENDIX B: CONTACTS
7.1 ALBANIA
Country/Organization Name Contact Person
Position of Contact
Person E-mail Telephone City Address
ALBANIA
Albanian ICT Association Dritan Mezini President dmezini@dm-consulting.biz
00355/42/272622
00355/69/20 77 847 Tirana
Deshmoret e 4 Shkurtit Str.
P. Leskoviku 2nd floor Suite 7
ISSETI - Albanian Institute of Studies and Education in IT Ornela Koleka Project Assistant koleka@isseti.org
00355/42/35 729
00355/68/20 04 041 Tirana
George W. Bush str. 2nd
Tower/II
ICT Studio Dr. Endri Xhina Managing Director endri.xhina@ictstudio.net
00355/42/271 131
00355/67/20 29 550
00355/68/40 73 297 Tirana Rr, Ymer Kurti, P5, Apt. 4
DM Consulting Services Dritan Mezini Executive Director dmezini@dm-consulting.biz
00355/42/272622
00355/69/20 77 847 Tirana
Deshmoret e 4 Shkurtit Str.
P. Leskoviku 2nd floor Suite 7
CCS Solutions Sokol Qeraxhiu Managing Director sqeraxhiu@css-solutions.com.al
00355/4/2 253 990
0355/67/20 28 271 Tirana
Str. Gjin Bue Shpata 2/1,
Floor 1
Faculty of Economy, University of Tirana Prof. Dr. Kozeta Sevrani
Head of Informatics
Department kozeta.sevrani@unitir.edu.al
00355/4/345 789
00355/68/20 44 843 Tirana Rr. Elbasanit
Semos - ALTS Eliana Xhelilaj Chief Techology Officer eliana.xhelilaj@semosalts.com
00355/48/302 399
00355/68/201 46 16 Tirana
Rr. Maliq Muco Pall.
Kirchberger
(tek Pall. Diplomateve)
PARSH Project for Vocational Education in Albania Sokol Avxhiu
(Project Manager) Head of
Office office@parsh.org.al
00355/42/257 477
00355/42/257 476 Tirana Rr. Bogdani, P. 7, Apt. 5a
Albanian Centre of Training Firms - Technical Economic
School in Tirana Ira Rroco Centre Director centre@albtrainfirms.com
00355/42/246 818
00355/68/40 45 721 Tirana Rr. Xhorxhi Martini
CIVET 2000 Edlira Muedini Managing Director edliram@icc-al.org 00355/42/227 615 Tirana Rr. Bogdani, P. 7, Apt. 4b
Regional Project Management Capacity Assessment
7.2 BOSNIA AND HERZEGOVINA
Country/Organization Name Contact Person
Position of Contact
Person E-mail Telephone City Address
BOSNIA and HERZEGOVINA
USAID BiH Vladimir Milin Development Specialist vmilin@usaid.gov
00387/33/702 300
ext. 139 Sarajevo (71000) Hamdije Cemerlica 39
Excellence in Innovation Project Sancho Ramhorst Chief of Party sramhorst@edc.org
00387/33/550 945
ext. 110 Sarajevo (71000) Mjedenica 52
Excellence in Innovation Project Fuad Curcic
Business Development
Manager fcurcic@edc.org
00387/33/550 970
ext. 107 Sarajevo (71000) Mjedenica 52
BAIT - Bosnian IT Association Brano Vujicic President of the Board brano@bait.org.ba 00387/33/719 025 Sarajevo (71000) Marka Marulica 2/III
University of Sarajevo, School of Economics and Business
prof. Zlatan Sabic and prof.
Tarik Zaimovic (Associate) Professor
zlatan.sabic@efsa.unsa.ba
tarik.zaimovic@efsa.unsa.ba 00387/33/447 559 Sarajevo (71000) Trg Oslobodjenja 1
Foreign Trade Chamber of B&H Marin Causevic Manager marin.causevic@komorabih.ba 00387/33/566 210 Sarajevo (71000) Branislava Djurdjeva 10
Chamber of Commerce of Sarajevo Canton Rusmira Mandic
(Education Programs)
General Manager rusmiram@pksa.com.ba 00387/33/25 01 06 Sarajevo (71000) La Benevolencija 8
Chamber of Commerce of the Republic of Srpska Nada Budisa
Education Programs
Manager nadab@bl.komorars.ba 00387/51/215 578 Banja Luka (78000) Djure Danicica 1/II
Recro-Net, Sarajevo Srdjan Babic
Business Solutions
Consultant sbabic@recro-net.ba
00381/33/769 412
00387/63/899 331 Sarajevo (71000) Dzemala Bijedica 162
Algebra, Sarajevo Zlatan Mulabegovic Director zlatan.mulabegovic@algebra.ba
00387/33/712 712
00387/61/897 109 Sarajevo (71000) Marka Marulica 7/1
Lanaco, Banja Luka Sanja Sabljic
Education Programs
Manager edukacija@lanaco.com 00387/51/33 55 06 Banja Luka (78000) Knjaza Miloša 15
Ping, Sarajevo Brana Vujicic Director info@ping.ba 00387/33/262 650 Sarajevo (71000) Jukićeva 36
EC Education d.o.o. Halil Sejdic Manager
educa@ec-education.ba
sejdich@bih.net.ba
00387/33/703 679
00387/61/189 057 Sarajevo (71000) Hamdije Cemerlica 2/9
EU TAC - Association for development of EU Cpacity Melisa Gazdic Executive Manager m.gazdic@eutac.eu
00387/33/703 801
00387/61/216 014 Sarajevo (71000) Hamdije Cemerlica 2/XI
Regional Project Management Capacity Assessment
7.3 KOSOVO
Country/Organization Name Contact Person
Position of Contact
Person E-mail Telephone City Address
KOSOVO
USAID Kosovo Private Enterprise Project Besim Ilazi ICT Sector Specialist bilazi@usaidkpep.org
00381/38/233 006
00386/49/118 649
00377/44/168 273 Pristina (10000) Radovan Zogoviq 1
STIKK - Kosovo ICT Association Vjollca Cavolli Executive Director vcavolli@stikk-ks.org
00381/38/767 076
00386/49/133 722
00377/44/122 247 Pristina (10000) Pashko Vasa 22
Cacttus Driton Hapciu Chief Strategy Officer dritonh@cacttus.com
00381/38/24 86 86
00377/44/50 24 84 Pristina (10000) Rexhep Mala 29
Expik Besnik Kaleci Head of Mitrovica Office besnik.kaleci@expik.com
00381/38/249 248
00377/44/762 368 Pristina (10000) Rr. E Vushtrise p.n.
Ten Step Kosovo Faruq Hunter Managing Director info@tenstepkosovo.com
00377/44/185 473
00386/49/185 473 / /
Ten Step Kosovo Kushtrim Mehmetaj General Manager info@tenstepkosovo.com
00377/44/185 473
00386/49/185 473
Regional Project Management Capacity Assessment
7.4 MACEDONIA
Country/Organization Name Contact Person
Position of Contact
Person E-mail Telephone City Address
MACEDONIA
USAID Macedonia - Economic Growth Office Tanja Markovska
Project Management
Specialist tmarkovska@usaid.gov
00389/2/310 22 62
00389/2/310 24 63 Skopje (1000) Samuilova 21
USAID Competitiveness Project Macedonia (Carana) Visar Ademi
Workforce Development
Manager vademi@carana.com
00389/2/32 15 744
ext. 109
00389/71/341 305 Skopje (1000) Orce Nikolov 63
USAID Business Environment Activity
(Booz/Allen/Hamilton) Filip Petkov Economic Advisor filip@bah.com.mk
00389/2/32 31 250
00389/70/377 757 Skopje (1000) Nikola Vapcarov 2/II/4
USAID Business Environment Activity
(Booz/Allen/Hamilton) Dimitar Dimitrovski Senior Legal Advisor dimitar.dimitrovski@bah.com.mk
00389/2/32 31 250
00389/70/383 801 Skopje (1000) Nikola Vapcarov 2/II/4
TAM BAS Program Team Jovan Gavrilovski
National Programme
Director jovang@basprog.com.mk 00389/2/32 96 867 Skopje (1000) Ilindenska 47/1
MASIT - ICT Chamber of Commerce of Macedonia Ivan Mitrevski Executive Director mitrevski@masit.org.mk
00389/2/32 38 601
00389/75/280 507 Skopje (1000) Dimitrie Cupovski 13
MASIT - ICT Chamber of Commerce of Macedonia Goran Mitreski President goran.mitreski@kabtel.com.mk
00389/2/32 38 601
00389/75/281 000 Skopje (1000) Dimitrie Cupovski 13
University of Information Sciences and Technologies,
Ohrid Ana Chukalevska Manager for ECTS ana.chukalevska@uist.edu.mk
00389/46/550 001
00389/70/990 263 Ohrid (6000) Vanco Nikoleski bb
Trajkovski & Partners Jasmina Trajkovski
Information Security
Management Expert
jasmina.trajkovski@tpconsulting.com
.mk
00389/2/31 23 601
00389/75/280 609 Skopje (1000) Sveti Kliment Ohridski 24/2/1
Semos Education Valentina Taseva Managing Director vale@semos.com.mk
00389/2/3130 900
00389/70/260 610 Skopje (1000)
t.c. Skopjanka//bul. K.J. Pitu
19, lok. 6
Semos Ilija Sekulovski COO ilija@semos.com.mk
00389/2/2465 900
00389/70/225 507 Skopje (1000) t.c. Skopjanka
Seavus DOOEL - Seavus Group Borjan Soljakov
Business Development
Global Sales borjan.soljakov@seavus.com
00389/2/3097 400
00389/70/383 510 Skopje (1000) 11 Oktomvri 33a
Kabtel Goran Mitreski General Manager goran.mitreski@kabtel.com.mk
00389/2/3103 231
00389/75/281 000 Skopje (1000) Vojvodina 4
NextSense Sasa Gavrilovik Chief Creative Officer sasha@nextsense.com 00389/2/3075 111 Skopje (1000) Partizanski Odredi 101
Cosmo Innovate Center Edward Sofeski Project Manager contact@cosmoinnovate.com.mk
00389/2/244 8077
00389/70/361 553 Skopje (1000) bul. Jane Sandanski 113
Basme KT basme@basme.com.mk 00389/2/32 17 446 Skopje (1000) Naum Naumovski Borce 88a
Ten Step Macedonia
Afrodita Kermicieva-
Panovska Managing Director panovska@tenstep.com.mk
00389/2/32 90 540
00389/2/32 90 544 Skopje (1000) Ivo Ribar Lola 59-1/2
Regional Project Management Capacity Assessment
7.5 MONTENEGRO
Country/Organization Name Contact Person
Position of Contact
Person E-mail Telephone City Address
MONTENEGRO
USAID Montenegro Ana Lekovic
AID Development Assistance
Specialist lekovica@state.gov
00382/20/410 500
00382/67/283 557 Podgorica (81000) Ljubljanska bb
Directorate for Development of SMEs Lola Radulovic Education Adviser lola.radulovic@nasme.me 00382/20 406 321 Podgorica Novaka Miloševa 42
Microsoft Montenegro Oliver Obradovic Executive Director oobrad@microsoft.com
00382/20/602 211
00382/67/20 10 30 Podgorica (20000) Kralja Nikole 27a/IV
Montenegro Business Alliance Darko Konjevic Executive Director mba@cg,yu 00382/20/622 728 Podgorica Kralja Nikole 27a/IV
CEED Consulting Dragana Radevic CEO
dragana.radevic@ceed-
consulting.com
dradevic@t-com.me 00382/20/620 611 Podgorica Kralja Nikole 27a/IV
Cikom Dragoslav Kenjic Technical Director dragoslav@cikom.com
00382/20/21 81 81
00382/67/201 357 Podgorica Dalmatinska 78
Cikom Vladan Tabas General manager vladan@cikom.com
00382/20/21 81 81
00382/67/201 001 Podgorica Dalmatinska 78
EconoMix Ljubisa Radunovic Project Manager info@economixgroup.com
00382/20/249 700
00382/69/035 700 Podgorica
Bulevar Svetog Petra
Cetinjskog 80
Chamber of Economy of Montenegro Ljiljana Filipovic Vice President ljfilipovic@pkcg.org 00382/20/230 714 Podgorica Novaka Miloševa 29/II
Chamber of Economy of Montenegro - Center for QM Aleksandar Marđonović Head of the Center amardjonovic@pkcg.org 00382/20/210 130 Podgorica Novaka Miloševa 29/II
Chamber of Economy of Montenegro - Center for
Education Mladen Perazić Head of Department mperazic@pkcg.org
00382/20/230 415
00382/67/334 423 Podgorica Novaka Miloševa 29/II
Digit Montenegro Dusko Petrovic Executive Director info@digit.co.me 00382/20/662 616 Podgorica
8. marta 62/Lamela 105/ulaz
III
For questions or further clarification of findings or recommendations, please contact: Author: Tatjana Lukic USAID Competitiveness Project Booz Allen Hamilton Dalmatinska 17 Belgrade, Serbia tlukic@compete.rs www.compete.rs
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