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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

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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


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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


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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


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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.


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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.


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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


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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


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


4.2 PM courses delivered by foreign trainers in foreign language

Readily


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


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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


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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


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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.


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


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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


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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


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


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


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.


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.


17

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


18

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.


19

4.4 PM CAPACITY IN KOSOVO


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


20

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.


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.


21

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


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.


22

Figure8: Top 10 Constraints to Firm Investment in Macedonia, source: World Bank


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.


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.


23

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


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


25

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.


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.


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


26

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.


27

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.


28

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


30

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


31

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.


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.

* * * * * * *


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/


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 [email protected]

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 [email protected]

00355/42/35 729

00355/68/20 04 041 Tirana

George W. Bush str. 2nd

Tower/II

ICT Studio Dr. Endri Xhina Managing Director [email protected]

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 [email protected]

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 [email protected]

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 [email protected]

00355/4/345 789

00355/68/20 44 843 Tirana Rr. Elbasanit

Semos - ALTS Eliana Xhelilaj Chief Techology Officer [email protected]

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 [email protected]

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 [email protected]

00355/42/246 818

00355/68/40 45 721 Tirana Rr. Xhorxhi Martini

CIVET 2000 Edlira Muedini Managing Director [email protected] 00355/42/227 615 Tirana Rr. Bogdani, P. 7, Apt. 4b


7.2 BOSNIA AND HERZEGOVINA


Position of Contact


BOSNIA and HERZEGOVINA

USAID BiH Vladimir Milin Development Specialist [email protected]

00387/33/702 300

ext. 139 Sarajevo (71000) Hamdije Cemerlica 39

Excellence in Innovation Project Sancho Ramhorst Chief of Party [email protected]

00387/33/550 945

ext. 110 Sarajevo (71000) Mjedenica 52

Excellence in Innovation Project Fuad Curcic

Business Development

Manager [email protected]

00387/33/550 970

ext. 107 Sarajevo (71000) Mjedenica 52

BAIT - Bosnian IT Association Brano Vujicic President of the Board [email protected] 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

[email protected]

[email protected] 00387/33/447 559 Sarajevo (71000) Trg Oslobodjenja 1

Foreign Trade Chamber of B&H Marin Causevic Manager [email protected] 00387/33/566 210 Sarajevo (71000) Branislava Djurdjeva 10

Chamber of Commerce of Sarajevo Canton Rusmira Mandic

(Education Programs)

General Manager [email protected] 00387/33/25 01 06 Sarajevo (71000) La Benevolencija 8

Chamber of Commerce of the Republic of Srpska Nada Budisa

Education Programs

Manager [email protected] 00387/51/215 578 Banja Luka (78000) Djure Danicica 1/II

Recro-Net, Sarajevo Srdjan Babic

Business Solutions

Consultant [email protected]

00381/33/769 412

00387/63/899 331 Sarajevo (71000) Dzemala Bijedica 162

Algebra, Sarajevo Zlatan Mulabegovic Director [email protected]

00387/33/712 712

00387/61/897 109 Sarajevo (71000) Marka Marulica 7/1

Lanaco, Banja Luka Sanja Sabljic

Education Programs

Manager [email protected] 00387/51/33 55 06 Banja Luka (78000) Knjaza Miloša 15

Ping, Sarajevo Brana Vujicic Director [email protected] 00387/33/262 650 Sarajevo (71000) Jukićeva 36

EC Education d.o.o. Halil Sejdic Manager

[email protected]

[email protected]

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 [email protected]

00387/33/703 801

00387/61/216 014 Sarajevo (71000) Hamdije Cemerlica 2/XI


7.3 KOSOVO


Position of Contact


KOSOVO

USAID Kosovo Private Enterprise Project Besim Ilazi ICT Sector Specialist [email protected]

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 [email protected]

00381/38/767 076

00386/49/133 722

00377/44/122 247 Pristina (10000) Pashko Vasa 22

Cacttus Driton Hapciu Chief Strategy Officer [email protected]

00381/38/24 86 86

00377/44/50 24 84 Pristina (10000) Rexhep Mala 29

Expik Besnik Kaleci Head of Mitrovica Office [email protected]

00381/38/249 248

00377/44/762 368 Pristina (10000) Rr. E Vushtrise p.n.

Ten Step Kosovo Faruq Hunter Managing Director [email protected]

00377/44/185 473

00386/49/185 473 / /

Ten Step Kosovo Kushtrim Mehmetaj General Manager [email protected]

00377/44/185 473

00386/49/185 473


7.4 MACEDONIA


Position of Contact


MACEDONIA

USAID Macedonia - Economic Growth Office Tanja Markovska

Project Management

Specialist [email protected]

00389/2/310 22 62

00389/2/310 24 63 Skopje (1000) Samuilova 21

USAID Competitiveness Project Macedonia (Carana) Visar Ademi

Workforce Development

Manager [email protected]

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 [email protected]

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 [email protected]

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 [email protected] 00389/2/32 96 867 Skopje (1000) Ilindenska 47/1

MASIT - ICT Chamber of Commerce of Macedonia Ivan Mitrevski Executive Director [email protected]

00389/2/32 38 601

00389/75/280 507 Skopje (1000) Dimitrie Cupovski 13

MASIT - ICT Chamber of Commerce of Macedonia Goran Mitreski President [email protected]

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 [email protected]

00389/46/550 001

00389/70/990 263 Ohrid (6000) Vanco Nikoleski bb

Trajkovski & Partners Jasmina Trajkovski

Information Security

Management Expert

[email protected]

.mk

00389/2/31 23 601

00389/75/280 609 Skopje (1000) Sveti Kliment Ohridski 24/2/1

Semos Education Valentina Taseva Managing Director [email protected]

00389/2/3130 900

00389/70/260 610 Skopje (1000)

t.c. Skopjanka//bul. K.J. Pitu

19, lok. 6

Semos Ilija Sekulovski COO [email protected]

00389/2/2465 900

00389/70/225 507 Skopje (1000) t.c. Skopjanka

Seavus DOOEL - Seavus Group Borjan Soljakov

Business Development

Global Sales [email protected]

00389/2/3097 400

00389/70/383 510 Skopje (1000) 11 Oktomvri 33a

Kabtel Goran Mitreski General Manager [email protected]

00389/2/3103 231

00389/75/281 000 Skopje (1000) Vojvodina 4

NextSense Sasa Gavrilovik Chief Creative Officer [email protected] 00389/2/3075 111 Skopje (1000) Partizanski Odredi 101

Cosmo Innovate Center Edward Sofeski Project Manager [email protected]

00389/2/244 8077

00389/70/361 553 Skopje (1000) bul. Jane Sandanski 113

Basme KT [email protected] 00389/2/32 17 446 Skopje (1000) Naum Naumovski Borce 88a

Ten Step Macedonia

Afrodita Kermicieva-

Panovska Managing Director [email protected]

00389/2/32 90 540

00389/2/32 90 544 Skopje (1000) Ivo Ribar Lola 59-1/2


7.5 MONTENEGRO


Position of Contact


MONTENEGRO

USAID Montenegro Ana Lekovic

AID Development Assistance

Specialist [email protected]

00382/20/410 500

00382/67/283 557 Podgorica (81000) Ljubljanska bb

Directorate for Development of SMEs Lola Radulovic Education Adviser [email protected] 00382/20 406 321 Podgorica Novaka Miloševa 42

Microsoft Montenegro Oliver Obradovic Executive Director [email protected]

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

[email protected] 00382/20/620 611 Podgorica Kralja Nikole 27a/IV

Cikom Dragoslav Kenjic Technical Director [email protected]

00382/20/21 81 81

00382/67/201 357 Podgorica Dalmatinska 78

Cikom Vladan Tabas General manager [email protected]

00382/20/21 81 81

00382/67/201 001 Podgorica Dalmatinska 78

EconoMix Ljubisa Radunovic Project Manager [email protected]

00382/20/249 700

00382/69/035 700 Podgorica

Bulevar Svetog Petra

Cetinjskog 80

Chamber of Economy of Montenegro Ljiljana Filipovic Vice President [email protected] 00382/20/230 714 Podgorica Novaka Miloševa 29/II

Chamber of Economy of Montenegro - Center for QM Aleksandar Marđonović Head of the Center [email protected] 00382/20/210 130 Podgorica Novaka Miloševa 29/II

Chamber of Economy of Montenegro - Center for

Education Mladen Perazić Head of Department [email protected]

00382/20/230 415

00382/67/334 423 Podgorica Novaka Miloševa 29/II

Digit Montenegro Dusko Petrovic Executive Director [email protected] 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 [email protected] www.compete.rs

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