MENDEL UNIVERSITY IN BRNO

Faculty of Regional Development and International Studies

Department of Regional and Business Economics

Analysis of IPMA and PMI Standards and Their Comparison

Diploma Thesis

Thesis supervisor: Author:

doc. Ing. Pavel Máchal, CSc. Bc. Jan Špatenka

Brno 2014

Declaration

I declare that I carried out this thesis:

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I agree that my work will be published in accordance with Section 47b of Act

No. 111/1998 Coll. on Higher Education as amended thereafter and in accordance with

the Guidelines on Publishing University Student Theses.

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In Brno, 20. 5. 2014

……………………………………………………..

Signature

Acknowledgements

I would like to give thanks to the supervisor of my thesis, doc. Ing. Pavel Máchal, CSc.,

for his professional and scientific help, consultations and patience. Last but not least I

would like to give thanks to my family for their unfaltering support.

Abstract

The thesis is focused on two chosen standards of project management such as IPMA

and PMI. The document covers fundamental terms of connected with the topic of

project management. There is also a description of both institutions including their

history and structure. The comparison of both standards and their certifications

according to chosen indicators is based on the analysis of above-mentioned theoretical

background. The thesis is based on information contained in official IPMA and PMI

materials.

Keywords

Project management, standards, IPMA, PMI, certification, project quality management,

Abstrakt

Tato diplomová práce je zaměřena na dva vybrané standardy projektového řízení, který

jsou IPMA a PMI. Dokument se dotýká základních termínů, které jsou s tématem

projektového managementu spojeny. Jsou zde zároveň představeny obě organizace a

popsána jejich historie a struktura. Na základě analýzy výše zmíněných údajů bylo

provedeno srovnání obou standardů a jejich certifikací dle vybraných ukazatelů. Práce

pracuje s informacemi získanými z oficiálních dokumentů standardů IPMA a PMI.

Klíčová slova

Projektové řízení, standardy, IPMA, PMI, certifikace, řízení kvality projektu,

Table of Contents

List of Figures ................................................................................................................... 8

List of Tables .................................................................................................................... 9

List of Graphs ................................................................................................................. 10

Abbreviations and Symbols ............................................................................................ 11

1 Introduction .................................................................................................................. 12

2 Aim of the Work and Methodology ............................................................................. 14

2.1 Aim of the Work ................................................................................................... 14

2.2 Methodology ......................................................................................................... 14

3 Theoretical and Methodological Basis of the Work .................................................... 16

3.1 Concept of Project Complexity............................................................................. 16

3.1.1 Definition of Project ...................................................................................... 16

3.1.2 History of Project Management ..................................................................... 18

3.2 Project Management and Its Cycle ....................................................................... 21

3.2.1 History of Project Management ..................................................................... 21

3.2.2 Definition of Project Management ................................................................ 23

3.2.3 Project Management Cycle ............................................................................ 25

3.3 Project Team Composition and Management Structure ....................................... 28

3.3.1 Fundamental Types of Management Styles ................................................... 29

3.3.2 Differences in Organizational Structures ....................................................... 29

3.4 Project Quality Management ................................................................................ 32

3.4.1 Total Quality Management ............................................................................ 33

4 Characteristics Of IPMA and PMI Organizations ....................................................... 34

4.1 Introduction and Description of Organizations .................................................... 34

4.2 IPMA and PMI History ......................................................................................... 36

4.3 Strategic Plan of Both Institutions ........................................................................ 37

4.4 Description of IPMA and PMI Standards ............................................................. 39

4.4.1 ICB and CzCB Standards .............................................................................. 39

4.4.2 PMBoK Guide Standard ................................................................................ 41

4.5 Certification and Description of Certificates ........................................................ 42

4.5.1 IPMA® Certification ...................................................................................... 42

4.5.2 PMI® Certification ......................................................................................... 45

4.6 Brief Overview of Other Organizations ................................................................ 47

4.6.1 PRojects IN Controlled Environments – PRINCE2®

.................................... 48

4.6.2 Australian Institute of Project Management – AIPM .................................... 49

4.6.3 Association for the Advancement of Cost Engineering – AACE .................. 49

4.6.4 Association for Project Management – APM ................................................ 50

5 Comparison of IPMA and PMI Standards ................................................................... 51

5.1 Approach of IPMA and PMI to Project Management .......................................... 51

5.1.1 Comparison of Project Definition .................................................................. 52

5.1.2 Project Management and Cycle Comparison ................................................. 53

5.1.3 Project Team and Its Comparison .................................................................. 55

5.1.4 Project Quality Management by IPMA and PMI .......................................... 57

5.2 Comparison of Standards and Certifications ........................................................ 59

5.2.1 Basic Comparison of Both Standards ............................................................ 59

5.2.2 Standards Comparison by Selected Indicators ............................................... 60

5.2.3 Comparison of Certifications ......................................................................... 62

6 Discussion .................................................................................................................... 64

7 Conclusion ................................................................................................................... 66

8 List of Bibliographic References ................................................................................. 68

8.1 Printed Information Resources ............................................................................. 68

8.2 Electronic Information Resources ........................................................................ 72

9 Annexes ..................................................................................................................... 755

8

LIST OF FIGURES

Figure 1: The Triple Constraint p. 19

Figure 2: Project Management Scheme p. 25

Figure 3: Functional Organizational Structure p. 30

Figure 4: Pure Project Organizational Structure p. 31

Figure 5: Matrix Organizational Structure p. 32

Figure 6: IPMA Governance p. 35

Figure 7: PMI Strategy Map p. 38

Figure 8: Four Level Certification System and Process p. 43

Figure 9: Project HR Management Overview p. 56

9

LIST OF TABLES

Table 1: Definition of Triple Constraint Categories p. 20

Table 2: Characteristic Features of Project Management in Time p. 23

Table 3: The Competence Elements of ICB p. 40

Table 4: Structure of CAPM® Questions p. 46

Table 5: The Amount of PDU Points Required for Recertification p. 47

Table 6: Control Quality Tools by IPMA and PMI p. 58

Table 7: Main Differences of ICB and PMBoK® Guide p. 60

Table 8: Comparison of Standards by Indicators p. 61

10

LIST OF GRAPHS

Graph 1: Weighting of Competence Ranges at IPMA Levels p. 44

Graph 2: Ratio of Actively Certified of IPMA and PMI in EU p. 62

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ABBREVIATIONS AND SYMBOLS

ICB – The IPMA Competence Baseline

IPMA – International Project Management Association

ISO 10 006 – International standard by International Organization for Standardization

PMI – Project Management Institute

PRINCE2® – Projects in Controlled Environments

TQM – Total Quality Management

YPMG – Young Project Managers Group

WBS – Work Breakdown Structure

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1 INTRODUCTION

Project management is a discipline that uses and applies knowledge, skills, tools and

techniques to reach the project objectives in a given time utilizing designated funds.

Each project must go through several cycles during its implementation – from

specification, through planning, proper implementation to successful project completion

and hand-over. In other words, the procedure, when used correctly, significantly reduces

the proportion of coincidence and unexpected scheduled events to final work outcome.

This leads to considerable savings in the spheres of time, energy and money.

Although most of the company activities make use of project management, it must be

said that this tool is one of the few ways to reach a competitive advantage. This issue

has also been more and more brought to people's awareness in ordinary situations in

which a project is perceived as a task they face and need to fulfil or solve at the same

time. In spite of the fact that this thesis is designed as a specialized paper, it also

contains comprehensive information about basic terms and processes that project

management offers within its basic components, such as project communication,

teamwork, project life cycle, project management components and organizational

commitment.

This work is, besides the basic concepts and approaches to project management,

focused on a detailed analysis of IPMA and PMI standards, including their comparison.

The paper also includes a detailed study of the procedures associated with both

standards which verify competences of ability to acquire and apply knowledge. This

topic was chosen for the diploma thesis as it exhibits very specific features in the Czech

environment. There is a very high number of trained project managers in the Czech

Republic. This is, however, quite a strange phenomenon when one takes into account

that education in this field is not so strongly rooted at universities, not even in those

fields of study whose graduates are almost certain to become part of a project team.

The essence of project management has been known and used for ages. The primordial

birth of projects is often associated with the construction of the Egyptian pyramids.

Speaking about this issue with regard to the Czech environment, an often cited example

is the project of the Charles Bridge construction in Prague which managed to meet the

defined criteria. Even though there had been several new techniques associated with

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military projects, the terms 'project' and 'project management' themselves emerged as

late as in 1960s.

At the beginning of the work, the review of literature can be found which comprises all

essential resources connected with project management and topics related to it. All the

other sources used are given at the end of the whole thesis in the relevant section

dedicated to bibliography according to the ISO 690 norm. Another substantial chapter is

devoted to both of the abovementioned standards with focus on their advantages and

disadvantages, including a thorough comparison. This part involves an overview of

these two project management styles and certifications that are included in the

following chapter.

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2 AIM OF THE WORK AND METHODOLOGY

2.1 AIM OF THE WORK

The thesis is set in the environment of project management. The core of the work is

conceived with huge respect to traditional approach to this field. Its procedures and

techniques are formed as a reaction to current development in the field.

The main aim of the work is to compare and analyse the IPMA and PMI standards from

two principal points of view, such as their approach to project management, which

consists of chosen aspects – project cycle, human resources and project quality

management, and comparison of standards and their certifications. Specific objectives

were designed to complement the context of the main aim and also clarify the

background of the issue. The first specific objective is to review the current research in

two main organizations connected with project management and its certification based

on the study of relevant literature. The second objective is to provide a theoretical

background of the thesis, i.e. make an analysis of the definition and history of project,

project management and its cycle, including the tools and methods, and also describe

the project team composition and management structure. The next objective is dedicated

to characteristics of both organizations and their certification processes. This will result

in a thorough analysis and comparison of obtained data and information related to

IPMA and PMI.

All the aims will be achieved thanks to the analysis of correct and verified data reached

by studying relevant literature resources and contacting the competent organizations.

The research of the thesis will be based on the previous analysis included in this work to

preclude any deceptive or misleading information and conclusions.

2.2 METHODOLOGY

When working out the main objective and sub-objectives of the thesis according to the

specification and the abovementioned aims, the following few methods of scientific

work will be used:

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- study of relevant literature and other resources in order to put the explored issues in

a wider theoretical framework,

- literature review that verifies the innovative subtext and, in particular, the

contribution of the presented thesis, and supports the elaboration on data just

obtained,

- evaluation of the information obtained through the research and analysis of both

standards including the demarcation of advantages and disadvantages of chosen

approaches,

- collection of statistical and other factual materials related to the issue and their

further detailed elaboration, and

- final evaluation of the acquired and processed data and the subsequent formulation

of formal output of this research.

Baseline data necessary for the analysis processing was obtained mainly from sources

of appropriate organizations linked to the IPMA and PMI standards. The paper contains

graphs and tables which serve for greater clarity and comprehensibility.

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3 THEORETICAL AND METHODOLOGICAL BASIS OF THE

WORK

This part is devoted to a comprehensive overview and evaluation of the relevant

scientific literature that deals with both the project management issues as a whole and

its individual approaches and branches. It also explains the terms which are contained in

the documents and moreover helps to gain a comprehensive impression of project

management in all its forms.

The literature review serves as a convenient core and introduction to the issue and

practical part of this study which proceeds from this chapter.

3.1 CONCEPT OF PROJECT COMPLEXITY

In order to be able to determine terms such as 'project' or 'project management' there is

a need to point out that a project can particularly has many meanings in different

languages and backgrounds. This term often occurs in architecture, construction or

engineering. We cannot talk about any similarities with the term used in the context of

project management in these cases. Unlike this field we can speak about a kind of

proposal in the above mentioned branches (Doležal, Máchal, Lacko et al, 2012).

3.1.1 Definition of Project

The word 'project' originally comes from Latin projectum, itself stemming from the

Latin verb proicere meaning 'to throw something forward'. We can estimate the

definition due to its prefix pro- which indicates an action or behaviour that comes

before something else. This is closely connected with the word 'management' which

evolved from Italian maneggiare and can be translated in to English as 'to handle' since

it comes from the Latin manus or 'hand' in English (Chiu, 2010).

Speaking about the project in the field of project management is, according to Newton

(2008), the way of working, the way of organizing people and the way of task

management. It is distinguished from other management styles by a complete focus on

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specific results and thus it ceases to be necessary at the time of the result achievement.

The most noticeable features of the project are its commencement comes at certain time

and formal termination arises when the result is accomplished. There typically are also

defined sources in the form of financial means and investment of time needed to

achieve the required result. The result achievement has an impact on some change.

Some characteristics of the project provide an important basis for appropriate

managerial steps determination which deals with successful termination of the project.

Complexity is one such critical project feature. Bennett (1991) also states that

practitioners often describe their project as simple or complicated when discussing

management issues. This connotes a practical acceptance that complexity makes

a difference to the management of projects. In respect to this fact, more complicated

projects demand management on an exceptional level and that the application of

conventional systems for the common projects is not convenient.

There are many definitions of the project in the field of project management. For

instance the definition according to IPMA standard1: “project is a time and cost

constrained operation to realise a set of defined deliverables (the scope to fulfil the

project´s objectives) up to quality standards and requirements,” (ICB – IPMA

Competence Baseline Version 3.0, 2006, p. 13) or according to ISO 10 0062: “project is

a unique process consisting of a set of coordinated and controlled activities with the

beginning and end dates, undertaken to achieve an objective, which meets specific

requirements, including the constraints of time, cost and resources,” (Kousholt, 2007,

p. 15). These definitions also mentioned, for instance, in the work of Doležal, Máchal,

Lacko et al (2012) are one of the most common with respect to the consequences of

project management. The third well-known determination is associated with PMI3

which speaks about the project as a “temporary endeavour which is carried out to

create a unique product, service or other kind of result,” (Camilleri, 2012, p. 5).

With respect to above-mentioned it is conceivable to determine out term as a basically

any activity of which purpose is to form something new. This is a unique activity

limited by cost, time and resources. The project intent might be directed at designing

a new dress just as renovation of old kitchen units or new mobile application

1 International Project Management Association

2 International Organization for Standardization

3 Project Management Institute

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development. From a lay point of view, we can also mention starting a family or choice

of a summer vacation. All in all, there is a wide range of activities included in this term.

One of the best ways how to describe the project issue is to determine its characteristic

features according to Fiala (2002, p. 10) who speaks about project “as a result of

material and immaterial character based on strategic planning, designed, organized

and realized under the guidance of particular manager acting on the behalf of

a proprietor or contracting authority with the considerable amount of attributes, such

as:

its results must serve throughout the project clearly designed period of time set by

the authority,

success of the project at the time of its initiation is not apparent,

the duration of the project is limited in time,

the project is carried out outside the normal business routine,

resources of the project are limited,

the project moves towards just one result.”

According to the same author (Fiala, 2002), it is possible to characterize whether the

project is successful or not which is measured by functionality of the project, its return-

ability and its impact on environment and environs. These characteristics are

accompanied by contentment of all involved parties and on-time product delivery in the

set quality and price.

3.1.2 History of Project Management

There are several definitions of project in this chapter which can guide our thoughts to

'the triple constraint' for projects. As stated in Rose´s book (2005) this includes time,

cost and scope with the same importance to both project success and the project

manager. One of the main activities of every project manager is to balance the three

aspects to meet the project aims and achieve the best possible results. This author also

speaks about the fourth element called quality which is the closest one towards scope

taking into account customers´ requirements. With regard to this fact, some authors

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speaks more about 'performance criteria' as the third element instead of 'scope' which

actually covers both mentioned ideas (Dobson, 2004).

These three aspects which are undoubtedly constituents of the project should be taken

into consideration. The division and appellation of the boundaries and limits that are

well-known across the world of project management was supplemented by Haugan

(2013) who speaks of so called new triple constraints in the context of projects,

programs and portfolios. His publication contains the concept of a set of triple

constraints with huge respect to sustainability and environment.

The theory covers constraints of population, climate changes and energy applied to the

existing project management triple constraints of time, cost and performance. Haugan

(2013, p. 4) describes the new three constraints in the synergy with the original ones:

“population factors include any impacts or assumptions regarding changes in demand,

demographics, racial composition, immigration, birth rates, or death rates. Climate

factors include any impact or assumptions regarding weather, sea levels, biota, ice, and

glaciers that are involved in the performance of the project. Energy is connected with

the availability or cost of energy in the management of the program or in the resulting

product, service, or result.”

Figure 1: The Triple Constraint (source: own design inspired by Dobson, 2004)

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All in all, it is important to determinate triple constraint categories to limit project

claims on common resources which include the spending-based and time-based kinds.

Our priority on some project always depends on its value. According to Dobson (2004)

there is a minimum level of performance that means the value at the admissible level.

A definition of project performance can include utilitarian demands and functional

deadlines at the same time. The definition on cost and time also comprises different

types of descriptions:

Time constraint

Specific deadline On or before specific time

Event-related Before reaching particular event

Urgency Need to be done at specific time

Not urgent Sooner is better than later

Cost constraint

Cash Budget, allowable expenditures

Personnel Team members, time-allocation

Equipment Capital equipment

Suppliers Consumable suppliers

Overhead Organizational purposes cash

Intangibles 'Political capital'

Performance criteria

Functional requirements Capacity, price, speed, storage

Purpose The desired end state

Evaluation criteria Threshold to be met

Table 1: Definition of Triple Constraint Categories (source: own design inspired by

Dobson, 2004)

The categories first described are not necessarily the ones that turn out to be most

important. All of them are set as typical instance of time and cost constraint and

performance criteria variables.

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3.2 PROJECT MANAGEMENT AND ITS CYCLE

Project management is a young branch which commenced its own history after the 2nd

World War. Provided that the term project can describe almost every way of working in

its vague definition it means that project management is dated back to ancient history.

Even at that time there were first methods, practices and techniques that people tried to

verify to be able to handle a variety of situation and obstacles. According to Doležal,

Máchal, Lacko et al (2012) this fact is accompanied by several fundamental differences.

This publication speaks primarily about 'the slower time' because of complications

related to communication over long distances. Furthermore, it is pointed out that there

were no time constraints or they were not so crucial at that time. Huge buildings were

building even several centuries. Today´s projects are strongly limited by time and

resources which is one of the biggest differences comparing ancient and nowadays

times.

3.2.1 History of Project Management

Although it may not seem the history of project management is really rich topic. There

are a large number of studies on this subject that are very closely engaged in the field.

Project management applies our skills, knowledge, methods, thought to activities in

order to get defined requirements. There is no doubt that the most visible results and

outcomes of this discipline is to find in the field of architecture related to building

constructions and engineering of all types. In other words, projects have been with

human race since coming a man and since the beginning of held farming and hunting.

Projects have took an active part in delivering the innovation which drives our society

nowadays; the management has played a decisive role in ensuring the collaborative and

creative efforts connected with communication, transfer of information, transportation

and defence systems (Morris et al, 2011).

This fact is particularly analysed by Lock (2007) who distinguished the whole history of

project management into five periods of time. The first one is goes back before 1900

and represents projects having left impressive legacies on the architectural and

industrial culture. We can just guess how some of those people managed to finish all the

22

giant buildings without any technology or tool available today. That is true that people

were very often regarded as a cheap and expendable resource.

The second period (1900 – 1949) was focused on rapid industrialization and the

demands of munitions production in the 1st World War associated with scientists and

industrial engineers such as Elton Mayo4 and Frederick Winslow Taylor

5. Henry Ford

6

is also a person who belongs to this period.

The third period is dated from 1950 to 1969 and is characteristic of digital computers

that made the processing and updating of critical and crucial path networks. There is no

doubts that this way of processing was much faster an easier. All the output reports in

those early computing days came as text from line printers, so that graphics such as bar

charts were crudely modelled from archetypes of alphanumeric characters.

The penultimate period is 1980 to 1989 which is described by the author in the same

publication as decade when managers became far less dependent upon IT experts. The

whole technological sector made a huge and measurable progress. Software that was

able to run activity-on-arrow networks became antiquated.

The last period 1990 to the present day is totally conditional on computers. The internet

connection makes every effort much easier. There are no obstacles during collaborative

work online, communication through online applications or processing with web 2.0

tools. Project management is no longer considered as two separate sectors – industrial

and IT projects. Project management has well worked-out structure, principles, methods

and other aspects that are elaborated in large quantities of books and all types of

publications in many languages.

There are main characteristic features based on Lock description in the below

mentioned Table number 2.

4George Elton Mayo (1880–1949) was an Australian industrial psychologist, sociologist and organization

theorist. Towards the end of his life, through his association with the Harvard Business School and the

Hawthorne Studies, he enjoyed a public acclaim granted to few social scientists of his day. 5 Frederick Winslow Taylor (1856 – 1915) was an American mechanical engineer who sought to improve

industrial efficiency. 6 Henry Ford (1863 – 1947) was an American industrialist, the founder of the Ford Motor Company and

sponsor of the development of the assembly line technique of mass production. He was also known for

his pacifism during the first years of World War I.

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Period of time Characteristic features

Before 1900

people cheap, even expendable

immense projects

urgency not driven by the rat-race

1900 – 1949

emergence of management science

early development of critical path networks

inception of Henry Gantt´s planning charts

1950 – 1969

project management as a recognized profession

project management software in batch mode

more concern for people at work

1980 – 1989

desktop computers development

managers less dependent on IT experts

wider acceptance of project management as a profession

1990 +

computers and laptops allowing run of all types of apps

more interest in project risk

worldwide communication through the internet

Table 2: Characteristic Features of Project Management in Time (source: own

design inspired by Lock, 2007)

All in all, project management has evolved over the ages in several points of view such

as culture, knowledge, construction skills, tools and techniques evolved so did the

purpose and construction of buildings. In the work of Chiu (2010) there are several

historical sections looking at the societal, managerial and the scientific changes which

took place prior to AD 1900. His book also contains evaluation of project management

implementation in time including discussion of findings.

3.2.2 Definition of Project Management

There are certainly many definitions of project management that describe this

phenomenon from different points of view. Kerzner (2013, p. 4) considers project

management a tool “designed to make better use of existing resources by getting work

to flow horizontally as well as vertically within the company.” He does not have any

24

doubts about destroying the vertical, bureaucratic workflow, nevertheless it simply

requires that line organizations talk to one another horizontally which points out on

responsibility of the line project managers. This expert also mentions benefits from the

project management, such as identification of functional responsibilities, minimizing the

need for continuous reporting, identification of time limits for scheduling, identification

of a methodology for trade-off analysis, measurement of accomplishment against plans,

early identification of problems due to corrective action to follow, improved estimating

capability and knowing when objectives cannot be met or will be exceeded.

The world´s leading theorist Harold Kerzner (2013, p. 4) summarize his thoughts

regarding project management as follows: “project management is planning,

organizing, directing, and controlling of company resources for a relatively short-term

objective that has been established to complete specific goals and objectives.

Furthermore, project management utilizes the systems approach to management by

having functional personnel (the vertical hierarchy) assigned to a specific project (the

horizontal hierarchy).”

Both these definitions are supplemented by Svozilová (2006) who agree with above-

mentioned facts and deduce the point of the term as an invested efforts accompanied by

knowledge and methods with respect to remodel material and nonmaterial resources

with result in a set of products, services or their combination to achieve marked out

objectives. She claims that the difference between project management and other

common forms of operative and flexible management is its temporariness and

impermanence and allocation of resources due to its realization according to the project

needs.

Therefore it is quite clear that the definition of project management is based on

management term in general which means that the act involves four main managerial

activities:

planning,

organizing,

leadership, and

controlling.

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According to Němec (2002) there is a need to distinguish terms project management

and management of the project. The first term is related to companies where more

projects are realized. Such projects need to be coordinated and managed. The second

case is used while creating a specific method of planning and realization of some

particular project. This fact is represented in the following Figure number 2.

Figure 2: Project Management Scheme (source: own design inspired by Němec,

2002)

As you can see, there are many published definitions describing project management.

Lester (2013, p. 7) tried to summarize and cover all the important ingredients: “the

planning, monitoring, and control of all aspects of a project and the motivation of all

those involved in it, in order to achieve the project objectives within agreed criteria of

time, cost and performance.” This definition basically contains all three fundamental

criteria enriched by motivation of stakeholders of the project.

3.2.3 Project Management Cycle

There are many approaches of how to describe project management cycle. Those who

are strongly based on IPMA and PMI standards will be analysed later in this study. The

project life cycle is composed of four basic phases according to Westland (2007) –

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initiation, planning, execution and closure. There is a previous period before these

phases which precedes the project approval and contains several important steps7.

Project initiation is the first one during which a business problem or opportunity is

identified and a business case providing several solution alternatives is defined. The

initiative to start a project is mostly associated with demand for new functionality,

process design, and connection to other systems, integration with them or their

innovation necessary to coordinate activities connected with its development. While we

distinguish project instructions, there is a need to set crucial points, such as the scope of

the project, key project deadlines, solution concept, necessary capacity estimation and

time schedule. These data replenished by a correctly set project team are summarized by

a feasibility study investigating whether each option addresses the particular problem

and a conclusive recommended solution is then put forward. The study should include

an analysis of the project itself, return on investment and the forecast for the next

period. The study is important not only to support the project but should answer the

main financial issues and impacts that the project will be affected (Westland, 2007).

The second key aspect of the project cycle is planning. The plan is usually determined

in the time and goals point of view. These two values together create a project

milestone. Every project milestone determines breakpoints in the project plan.

Milestone is hand in glove with project stages. These stages can follow the previous

ones or run parallel to each other. A critical path is usually the longest journey from the

beginning to end of the project and contains risk management activities that should be

attentively monitored to avoid any delay of the project (Hawdon, 2011). There is

a comprehensive summary of activities regarding project planning in the book of

Westland (2007, p. 4):

“project plan outlining the activities, tasks, dependencies and timeframes,

resource plan listing the labour, equipment and materials required,

financial plan identifying the labour, equipment and materials costs,

quality plan providing quality targets, assurance and control measures,

risk plan highlighting potential risks and actions to be taken to mitigate those risks,

acceptance plan listing the criteria to be met to gain customer acceptance,

7 This phase is described in more detail in chapter 3.4 dedicated to tools and methods of project

management.

27

communications plan describing the information needed to inform stakeholders,

procurement plan identifying products to be sourced from external suppliers.”

According to the summary, the aim of this phase is final identification of resources

required to implement the project with regard to the completion of the project within the

expected time, expected costs and required quality.

During the execution, or implementation phase, various activities and tasks are filled

arising from the project schedule in order to achieve the objectives of the project which

follow its definition. Westland (2007) declares that this step contains series of

management processes that are undertaken to monitor and control the deliverables being

set by the project. He claims that this includes identifying change, risks and issues,

reviewing deliverable quality and measuring every outcome produced against the

admissible standards. While risk management implementation will be altered on

a project-to-project basis, there are several advisements that apply to virtually every

project. Kerzner (2004) states, for instance, implementation in both a top-down and

bottom-up manner across the project. The project is prepared for closure as all of the set

deliverables have been produced at a specific qualitative level and accepted by the

customer. This phase is accompanied by a number of typical activities, some of which

are not be pleasant even they have to be done. Some of them according to Kanda (2011)

are accountancy, learning from experience, report writing and controlling, project team

dispersion, etc.

The last phase of the project cycle is project closure which closes the project from the

formal point of view and reports the overall success and achievements of the project

goals and objectives. Handing over the deliverables to the customer, passing the whole

documentation, revoking suppliers contracts, disengaging staff and equipment which

was used in the course of the whole project and informing stakeholders of the closure of

the project are main activities associated with this phase according to Panneerselvam

and Senthilkumar (2010). They also state a project closure report as a major part of the

phase since all the tasks to complete the project have to be documented and delivered to

the customer. This report usually contains project completion criteria, listing outcomes

or deliverables, time plan and schedule, ceasing supplier contract and agreements,

communicating the closure of the project, etc.

28

Every project consists of different parts that constitute a logical sequence and segments

of the project. The project division into separate phases allows users to plan their issue

more efficiently. The purpose of this fact is both to create much better conditions and

enables smoother orientation of interested groups and stakeholders of the project.

3.3 PROJECT TEAM COMPOSITION AND MANAGEMENT

STRUCTURE

Establishment of the team is an integral and important part of any kind of aspiring

cooperation. However activities associated with the project team does not end at its

creation. It is necessary to constantly keep working on good relationships within the

team and its stability so that its activities and primarily results, which are crucial, would

be the best.

Many questions and findings were noticed by Lewis (2004) in his book related to team-

based project management. It deals with the most appropriate paradigm or model for a

project team, finding an effective way of team development, many kinds of

relationships members have with each other. All the thoughts are gathered around the

question of how to achieve such a paradigm. He answers his own questions himself to

a certain extent when describing a project team as a whole: “a team is typically defined

as a group of people who work together to achieve a common goal or objective, who

produce high-quality results, and who enjoy doing so. The two aspects of this definition

that focus on relationships would be the collaborative nature of the group and the

enjoyment of it,” (Lewis, 2004, p. 66). He adds to this that members need to be willing

to collaborate with each other. It is not possible to compete and cooperate at the same

time as competition and cooperation are opposites.

There is another definition of a project team according to Svozilová (2011) who is not

too concerned with human relationships within the team, but rather with real activities,

responsibilities and duties that relate to every particular team member. She describes

a project team as a main executive part of the project. Project team is a group of people

who are involved in achieving the objectives of the project and are subject to the project

manager to the extent of the allotted time or a working capacity and within the allocated

powers and responsibilities.

29

3.3.1 Fundamental Types of Management Styles

When we speak of the importance of team relationship stability and balance, there is

a need to mention management styles which ensure the project team environment.

Doležal, Máchal, Lacko et al (2012) remark four main management styles that are

characterized at two basic levels; according to the leader´s focus on task and

relationships which very closely correspond with above-mentioned project team

descriptions written by Lewis and Svozilová. Doležal, Máchal, Lacko et al (2012)

describes these four styles as follows:

directive style (telling) – which is characterized by one-way communication when

leader defines roles of individuals or even groups and determines who, what, how,

where and when does,

training style (selling) – the leader still controls the realization of the task, however,

he is also focused on the implementer of the task and works with him on an

emotional basis, trying to involve them in the solution process, to sell him the task

in other words,

participative style (participating) – the leader and the individual or group are jointly

connected with the method of solving the task, the leader is not fully involved in

the step solution and is more concerned in relationships, and

delegating style (delegating) – the leader still takes part in decision making

nevertheless the process itself including its responsibility is delegated to the

particular person or group which is answerable to the leader. The leader performs

the monitoring procedure.

3.3.2 Differences in Organizational Structures

There are also many differences in organizational structure which also affects project

team behaviour. Organizational structure of the company need not comply with the

realization of a time-limited project. A definition of organizational structure follows two

possible ways – top down or bottom-up (Urban, 2004).

There is a choice to opt for different types of structures depending on the size of the

project, its time and human resources. Vertical differentiation contains a number of

30

hierarchical levels or layers which help to lead organization´s activities to better

management and coordination. Horizontal differentiation is associated with an extent of

labour division and specialization. Spatial differentiation is related to the internal

segmentation of the organization in different territorial units. This division is reliant on

the degree of formalization which standardizes the performance of individual work

activities, such as detailed and binding job descriptions, organizational manuals, etc.

The second aspect connected with management structure is centralization or

decentralization that reflects on what hierarchical level the majority of decisions are

made (Maaytová, 2013).

The basic organizational structure according to Fiala (2002) which is more concentrated

on functional point of view is divided into four fundamental schemes – functional

organizational structure, pure project organizational structure, matrix organizational

structure and network organization structure.

Figure 3: Functional Organizational Structure (source: own design inspired by

Fiala, 2002)

This type of structure is based on dividing workers into clusters according to their

specialty and expertise. Each of these independent units usually works for a variety of

other structural units of the lower stage of proceedings (Mulačová et al, 2013). It is

expected that there is a good cooperation between team members in case of the project

realization within individual departments. Experts are divided according to their

professional status which promotes the exchange of experience and knowledge.

Complications arise in the form of the absence of a 'coordinator' of the project if the

31

project is to address the need for cooperation of various departments. Organizational

structure in functional form is the least desirable in terms of project management

(Maaytová, 2013).

Figure 4: Pure Project Organizational Structure (source: own design inspired by

Rosenau, 2010)

The pure project organizational structure (Figure no. 4) is according to Maaytová (2013)

subjected to the goals of each project. It is created from functional structure in case that

the form of organization does not allow to fulfil project needs. The project is defined by

the linear power with a single control centre. Workers are formally assigned to the

project and create so called project teams which are led by project managers. This

ensures continuity and professional approach. This structure is recommended for larger

projects.

The matrix organizational structure, which is represented on Figure number 5, is

according to the same author optimal for the implementation of medium-sized and

parallel-running projects requiring common available human resources. This structure is

communication and coordination skills intensive. Special departments are responsible

for the personnel working security on projects and for the professional level of

employees. Project managers are responsible for setting objectives and creating

a realistic plan in terms of time and cost implementation (Maaytová, 2013).

32

Figure 5: Matrix Organizational Structure (source: own design inspired by Fiala,

2002)

The network structure is another form of organizational arrangement. It can be

characterized as a coordination mechanism based on the strong belief that connects

independent resource owners. Cost reducing, shortening production cycles, better

technology and synergic effect are the main reasons why to set up a basic network

structure. It also has several disadvantages, such as informal relationships based on

mutual trust, costs of communication and channels of communication for information

sharing. This structure is convenient for business that often implements new projects. It

is sometimes considered a combination of pure project and matrix organizational

structure (Dědina and Malý, 2005).

3.4 PROJECT QUALITY MANAGEMENT

Quality of a project is clearly one of the crucial elements of the project success. The

core of the issue lies in making an effective and coherent transfer on the way from

inputs to project outputs. According to Juran (2010), quality can be considered a feature

of final outcomes which meet customers´ needs and thus provide sufficient satisfaction.

33

He is also well-known thanks to his distinction of big and small quality. The ´Big Q´ is

a matter of 1980s embraced by quality and senior managers who took into consideration

encompassing the goals of the companies. The ´Little Q´ is according to him limited in

scope and related to individual outcomes or target groups. There is a definition of PMI

which describes quality as a degree to which requirements were fulfilled (PMBoK

Guide, 2013).

There are three main misunderstandings stated by Rose (2005) in his book which have

been assumed over time. The first one is the mistake of an expensive process. He points

out on the frequent repeated presumption that quality is expensive which he describes as

´conventional ignorance´ in this case. The main point is that quality actually costs some

money but on the other hand it pays back over and over. So the result of this is that

quality is essentially free. The second presumption is associated with price of the final

product. It is incorrect to think that quality confers price. The last one is related to the

factor of time consumption. This aspect is taken into account from the spiritualist point

of view by Rose who claims that we always have time and we should have time

especially for quality as a major part of project management process.

3.4.1 Total Quality Management

TQM consists of the efforts of the organization to establish and maintain the stable

environment in which the company continually improves its ability to provide high

quality outcomes, i.e. products and services. There is no currently agreed approach of

comprehensive quality management and thus it usually draws on previously developed

tools and techniques of quality management. The comprehensive quality management

system enjoyed wide attention during the late eighties of the 20th

century. There are

several main prerequisites to this approach, such as a well-established hierarchy, a set of

processes, will of individuals towards the initiative, familiarization with TQM benefits

and corporate culture that fits to the whole idea (Pries and Quigley, 2012).

There are several substituting systems, such as ISO 9000 which is a series of standards,

Lean Manufacturing which is focused on preserving value with less work and Six

Sigma as a set of techniques and tools for process improvement.

34

4 CHARACTERISTICS OF IPMA AND PMI ORGANIZATIONS

This chapter is dedicated to two main organizations that take an active part in providing

standards and standardization in the project management environment all over the

world. Their existence is very closely connected with their standards that represent

various approaches to project management. It is necessary to also mention other

standards dealing with the issue, such as PRINCE2® and a directive of project

management quality ISO which does not have its own standard of project management

even though it is in process. This part of the thesis is mainly focused on describing basic

characteristics of IPMA and PMI, their history, structure and representation in local

condition of the Czech Republic. The other two above-mentioned standards will be

touched only by brief description.

4.1 INTRODUCTION AND DESCRIPTION OF ORGANIZATIONS

International Project Management Association (IPMA) is, according to its official

websites, a federation of over 55 member associations which develop project

management competencies in their geographical areas of influence, practitioners

interacting and relationships developing with corporations, agencies at the

governmental level, universities and colleges and institutions focused on consulting and

training. IPMA actively promotes competence connected with project management for

wide variety of customers, such as project teams, business organizations, individuals

and government agencies from Europe, Asia, Africa, the Middle East, Australia and

North and South America.

Professional international association IPMA is provided by project management

association called SPŘ, o. s.8 in the Czech Republic. This institution uses articles of

original association including its standard and certification program. This non-profit

organization is, according to its official websites, involved in project management as

a member of association of IPMA. Their primary role is to promote project management

at the Czech background as a distinct profession with a global agency and standards of

its own as well as concrete knowledge and abilities.

8 It is a certifying authority originally called 'Společnost pro projektové řízení, o. s.' in Czech.

35

Since IPMA is an association, it unites national entities that are its members. These

entities are concentrated on individual project managers and firms being engaged in

project management. With regard to this fact, they offer certifications and services

provided by IPMA in particular countries. They also have the opportunity to create so

called national standard which is based on standard managed by IPMA and provided in

the appropriate country language. IPMA operates in 50 countries around the world and

has more than 170 000 certified project managers9.

Figure 6: IPMA Governance (source: official website of International Project

Management Association)

The IPMA Governance consists of a Council of Delegates, an Executive Board, and

a few Management Boards, working and project groups and a Secretariat. This Council

and Board Members come from the whole world and thus reflect the global thinking of

IPMA.

Project Management Institute, hereinafter referred to as PMI, is the second professional

organisation associating individual project managers and entire companies involved in

project management as a whole. The typical output of the entity is a standard called

9 This figure is valid for the year 2012 (source: official website of International Project Management

Association).

36

Guide to the Project Management Body of Knowledge – PMBoK® Guide, a widely used

standard for project management in the world. One of the biggest attractions for those

who are interested in project certification is undoubtedly the fact that PMI is the largest

organization of its kind. The largest in terms of both number of members and certified

project managers. The certification holders need not to be members of the institute as

well as in the case of IPMA. More than 200 000 members come from the region of

North America as PMI arose right there. Nowadays, PMI operates in more than 180

countries and has over half a million members and certified project managers. The PMI

organization found representation in the Czech Chamber of PMI in our regional

conditions (2012 Annual Report PMI, 2013).

4.2 IPMA AND PMI HISTORY

An organization called Internet was founded in 1964 and it associated project managers

from Europe. This institution was later renamed to International Association for Project

Management which is known as IPMA nowadays. In 1967 the Czechoslovak Project

Management Science Group invited to join the first 'all-state' conference which deals

with methods of network analysis in Prague. IPMA, which created a standard of project

management called IPMA®

Competence Baseline – ICB, organizes forums, publishes

magazines and especially the development of project management moves towards. The

institution is represented by SPŘ in the Czech Republic and was established in 1990

under the name of INTERNET CZ. It began certifying project managers according to

standard ICB in 2001 and takes an active part in organizing conferences, collaboration

with YPMG10

, newsletter publishing and other activities. The greatest achievement of

the entity was a publication of the National Standard Competences of Project

Management in 2008 (Kryst, 2011).

The emergence of non-profit professional organization PMI, according to the same

author, dates back to 1969 with the reason of need to capture wide range of

management techniques which already were in common use at that time. First thoughts

regarding the standardization came in 1976 as well as first signs of project management

10

Young Project Managers Group is a group of people whose main intent is to learn. They create projects

according to IPMA standard which gives them knowledge of leadership and management tools to support

project management.

37

as a separate profession. The PMI Board of Directors decided to set up a project to

anchor the concepts and procedures necessary to support project management as

a separate profession in 1981. The project was involved in distinctive characteristics of

project managers, content and structure of knowledge base know as standards and

profession accreditation that gave rise to the possibility of PMP® certification. The

results of the project were published in the Project Management Journal in 1983

(PMBOK® Guide, 2013).

4.3 STRATEGIC PLAN OF BOTH INSTITUTIONS

Both institutions developed their long-range strategic plans which set strategic goals and

principles to identify further needs of members and customers and options for satisfying

those needs.

International Public Management Association determined their mission as a process to

enhance public sector performance by providing human resource leadership, promotion,

professional development and a circle of human resources professionals for sharing of

sources and conceptions. IPMA is willing to become a leading organization for public

human resources. The strategic plan of IPMA (Long-Range Strategic Plan, 2012)

contains five strategic goals:

membership – maintain membership and increase member involvement which is

connected with enhancing the partnership between the Association and the chapters

and regions,

research/advocacy – conduct research, benchmarking, surveys to identify best

practices and become the leading voice advocating for public sector HR at the level

of public policy,

professional development – provide opportunities for professional development as

well as certification program being valued by the HR community,

assessment – develop, authenticate and market quality assessment products, and

financial and organizational health – increase the awareness and attractiveness of

IPMA, ensure the institutional leadership and guarantee financial stability.

38

Project Management Institute also developed a strategic plan prepared by PMI Board of

Directors. There are strategic queries about the organization´s future and set horizons

focused on separate threshold of strategic dialogue. The core purpose of the document

and its mission is to advance the practice, science and profession of project management

throughout the world in a conscious and proactive manner. The strategy contains several

core values that are not intended to be changed, vice versa; they are fundamental and

deeply held. The values are project management impact, professionalism, volunteerism,

community and engagement. The mission is determined in a few periods. The most

elaborated the strategic guidance for next 3 – 5 years which is represented in the

strategy map below (Strategic Plan, 2012).

Figure 7: PMI Strategy Map (source: Strategic Plan, 2012)

This horizon articulates goal statements of further five years. The idea undertakes

institutional beneficial outputs which will be provided to the interested group and

stakeholders of the Institute. The whole document is related to the Working Strategic

Plan. The PMI Board will keep on refining the material as a part of its annual strategic

work.

39

4.4 DESCRIPTION OF IPMA AND PMI STANDARDS

Both International Public Management Association and Project Management Institution

have their own standards which are developed on different approach to project

management and thus determine the difference between institutions as a whole.

4.4.1 ICB and CzCB Standards

This chapter will analyse two standards of project management within the International

Public Management Association. Due to the fact that National Standard of Competence

of Project Management (CzCB) is based on IPMA – Competence Baseline (ICB), it is

non-essential to do a detailed description for both of them. Current release of the ICB

made by IPMA is version 3.0 published in 2006 and CzCB version 3.1 issued by SPŘ in

2010. The concept of this standard is, compared to the other, competency. It is not

focused on the precise form of defined processes and their particular application but on

the ability and skills, in other words, competences of project, program and portfolio

managers and members of their teams. These consequences can have many reasons but

the most probable is the one that the standard was developed in sixties on the basis of

national standards and regulations of a few European countries which were produced

independently. That is why ICB does not ordain processes nevertheless it recommends

steps that should be applied in the particular situation (Doležal, Máchal, Lacko et at,

2012). The document is divided into six parts, such as preface, introduction, key

concepts, certification, element description and appendices.

The introduction outlines the reason of the very standard and defined skills and abilities

as a managerial competence. Competence is subsequently divided into three main areas

that should be mastered by a manager. Such competences present the integration of all

components of project management from the perspective of a project manager during

the evaluation of a situation (Pitaš, 2012).

The next chapter of the standard contains basic concepts of project management, such

as project, professional project management. It also sets principles of the standard and

includes a four-stage system of certification and certification benefits for holders

including requirements and necessary educational skills. The second chapter of the

40

standard defines terms of competence and its three areas – technical, behavioural and

contextual. Competence is a body of knowledge, personal approaches, skills and related

experience which are essential for success in a particular position needed. ICB indicates

project management competency as the one that runs through the three competency

areas (Fewings, 2013). These areas were developed to better assess competencies as

themselves as well as for purposes of examiners within certification:

Competences

Technical Behavioural Contextual

1.01 PM success 2.01 Leadership 3.01 Project orientation

1.02 Interested parties 2.02 Engagement 3.02 Program orientation

1.03 Project requirements and

objectives 2.03 Self-control 3.03 Portfolio orientation

1.04 Risk and opportunity 2.04 Assertiveness 3.04 Project, program, and

portfolio implementation

1.05 Quality 2.05 Relaxation 3.05 Permanent organization

1.06 Project organization 2.06 Openness 3.06 Business

1.07 Teamwork 2.07 Creativity 3.07 Systems, products and

technology

1.08 Problem resolution 2.08 Results orientation 3.08 Personnel management

1.09 Project structures 2.09 Efficiency 3.09 Health, security and

environment

1.10 Scope and deliverables 2.10 Consultation 3.10 Finance

1.11 Time and project phases 2.11 Negotiation 3.11 Legal

1.12 Resources 2.12 Conflict and crisis

1.13 Cost and finance 2.13 Reliability

1.14 Procurement and contract 2.14 Value appreciation

1.15 Changes 2.15 Ethics

1.16 Control and reports

1.17 Information and

documentation

1.18 Communication

1.19 Start-up

1.20 Close-out

Table 3: The Competence Elements of ICB (source: own design inspired by

Rozemeijer, 2007)

The ICB does not counsel any specific methodologies, methods or tools. That might be

defined by the organization. It is up to the project manager to choose appropriate

methods and tools for particular project situation or background (Rozemeijer, 2007).

41

4.4.2 PMBOK Guide Standard

This section is dedicated to the flagship of PMI standard. A Guide to the Project

Management Body of Knowledge in its fifth edition is a handbook for project managers

based on the best practices of project management. All the used procedures are widely

used and generally recognized around the world. Implemented practices and techniques

were found to be useful and valuable for project management as a whole. The concept

of best practices indicates that the application of skills, techniques and tools described

in the standard generally increases the chance of success of a wide range of projects

(PMBOK® Guide, 2013). Every issued edition has been based on the original document

of Project Management Body of Knowledge which was released in 1987. The document

itself (2013, p. 563) describes standard as: “a document that provides, for common and

repeated use, rules, guidelines, and classification of project activities or their results,

aimed at the achievement of the optimum degree of order in a given context.” PMBOK®

Guide standard is not the only standard for project management which was developed

by PMI. However, it is the basis for all other specialized standards. The list of standards

is available on the website of PMI.

The basic approach is the concept of procedural issue of project management. It defines

five main circles of processes, nine knowledge areas, individual processes and their

interconnections. All processes a process steps are defined within their inputs, outputs

and transformational tools, such as tasks, methods and techniques (Doležal, Máchal,

Lacko et al, 2012).

This chapter also contains the outline of the document which is not excessively

analysed. Those who are interested in detailed outline are referred to the complete

version of the document. The structure of the document is not definitive since the

overall structure is the subject of constant comments, improvement, moving, adding and

deleting of chapters. The entire project management is constantly evolving and

therefore it needs to be developed as well as its standard. Publication of PMBOK®

Guide is published in eleven languages which do not contain Czech, unfortunately.

However none of the main world languages is missing (Kryst, 2011). The table of

contents includes introduction, organizational influences and project life cycle, project

management processes, project integration management, project scope management,

project time management, project cost management, project quality management,

42

project human resources management, project communication management, project risk

management, project procurement management, project stakeholder management

(PMBOK® Guide, 2013).

4.5 CERTIFICATION AND DESCRIPTION OF CERTIFICATES

The standards of IPMA and PMI entities offer the possibility of certification of project

managers. It means certification of individual applicants in both cases. This aspect is

different from, for instance, PRINCE2® which also offers accreditation for permanent

organizations. PMI basically certifies in the form of a test in which applicants

demonstrate their knowledge of the relevant issue connected with the standard. IPMA is

more focused on the personality of the candidate (Doležal, Máchal, Lacko et al, 2012).

4.5.1 IPMA® Certification

For the reason that IPMA accesses to certification a bit differently, the ICB standard

cannot be fully verified only by some check test according to Doležal, Máchal, Lacko et

al (2012). It does not touch knowledge of processes, their activities, etc. but the

assessment of the competence of the candidate. Hence IPMA has a four-level

certification system that is not completely hierarchical and so individual levels do have

different aiming. The levels of certification, according to ICB – IPMA Competence

Baseline Version 3.0 (2006), are:

IPMA Level A (Certified Projects Director) – is focused primarily on the ability to

manage portfolio using adequate methods and tools and does not concern any

individual projects,

IPMA Level B (Certified Senior Project Manager) – the subject of the certificated

person is the ability to manage a complex project which may contain sub-section so

the main activity of such a manager is to lead managers of particular subprojects,

IPMA Level C (Certified Project Manager) – verifies the ability to manage

a project with limited complexity which means, in addition, to proving a certain

level of knowledge and demonstration of experience,

43

IPMA Level D (Certified Project Management Associate) – is designed primarily

for members of project teams who perform individual tasks within a project as

specialists or to substantiate the theoretical knowledge of project management.

The certification process contains several steps to assess an applicant. The assessment

steps are applied to each of the IPMA competence levels. The IPMA certification

system is not completely rigid.

The official website of International Project Management Association includes

a thorough overview summarizing the whole certification process at every level:

Figure 8: Four Level Certification System and Process (source: official website of

International Project Management Association)

The effectiveness of the assessment can benefit from the so called STAR-method

according to ICB – IPMA Competence Baseline Version 3.0 (2006, p. 12): “the

assessor asks the candidate to describe a situation from the project report he has

produced stating the task the candidate had to carry out in that situation, what activity

he performed in that situation and what result was achieved.”

As mentioned in the chapter 4.4.1, there are three competence elements within IPMA

standard. In connection with this fact, each project management competence element is

constituted of knowledge and experience. The total competence obliged per range

should be segmented between the ranges in the following portions:

44

Graph 1: Weighting of Competence Ranges at IPMA Levels (source: own design

inspired by ICB – IPMA Competence Baseline Version 3.0, 2006)

The authors of the Baseline 3.0 took into account the fact that several competence

elements will be considered as a rule in a practical project programme or portfolio

situation. That results in the ICB where the main relationships are listed in each

competence element description. With respect to this, the purpose of the main relations

between the competence elements is to help the reader to apply the competence

elements in the practical situations (ICB – IPMA Competence Baseline Version 3.0,

2006).

Recertification is an assessment process of professional qualification of already certified

project managers. The qualification is defined, according to the official website of the

Association, as ability to acquire and apply knowledge and skills at the given level of

project management. The process of recertification is mandatory for every certified

manager who intends to henceforth use benefits and boons of the certification. The

period of validity is five years regardless of the level of certificate.

0%

10%

20%

30%

40%

50%

60%

70%

80%

IPMA Level A IPMA Level B IPMA Level C IPMA Level D

Pe

rce

nta

ge

Level of IPMA

Technical

Behavioural

Contextual

45

4.5.2 PMI® Certification

The institute of PMI as an international organization in the field of project management

education provides five basic types of certification. There had been only one certificate

called PMP® in bygone days and the rest was added later. All the existing certificates

within PMI are based on passing through entry requirements, except for PgMP® where

every applicant has to attend an assessment centre. The entry requirements are required

length of experience, number of worked hours of training in project management, etc.

The PMI test is identical all over the world, runs only in English and its completion is

followed by issuing of internationally valid and accepted certificate. PMI standard

allows obtaining of six different certificates (Doležal, Máchal, Lacko et al, 2012):

CAPM® - Certified Associate in Project Management,

PMI-SP® - PMI Scheduling Professional,

PMI-RMP® - PMI Risk Management Professional,

PMP® - Project Management Professional,

PgMP® - Program Management Professional,

PMI-ACP® - PMI Agile Certified Practitioner.

In collaboration with these exams, there is an important publication which guides

practitioners of the profession and describes the expectations that appliers should hold

for themselves or others. The name of the book is Project Management Institute Code of

Ethics and Professional Conduct and is specific because of the basic obligation of

responsibility, respect, fairness, and honesty (PMBOK® Guide, 2013).

If we proceed from the same source in the following words, there are five major

benefits of the certification which are connected with passing the exam. The first one is

flexibility because the certification does not come from the only methodology and thus

is flexible and adaptive. The next one is actualization which is associated with incessant

updating of the standard to be up-to-date with respect to current needs. Professional

development is the next benefit based on the procedure of recertification programme

which requires attending at educational activities and conferences. One of the most

down-to-earth benefits is competitiveness on labour market which is increased by

having the certificate according to the PMI surveys. This field is concluded by prestige

46

that is connected with the fact that PMI is the first institution providing certificates

especially for project managers.

The CAPM® certification was chosen for deeper analysis as it offers recognition to

applicants who are willing to start their career in the field of project management as

well as to those who are already members of any project team and wish to demonstrate

their knowledge. The certification denotes that the individual possesses the knowledge

in principles and terminology of PMBOK®

Guide. People who contribute specialized

skills to a project team can benefit from this certification by allowing them to neaten

their work with that of project managers. Wisdoms that help to develop growing levels

of competence in the project management practice, such as on-the-job experiences, can

be enriched by the knowledge of practitioner which is gained from earning CAPM®

certification (CAPM® Handbook, 2013).

There are 150 multiple-choice questions where 15 of them are considered pre-test ones.

Those questions do not affect the final score and are used in examinations as an

effective and legitimate way to test the validity of future examination questions. All

questions are placed throughout the examination randomly according to its Handbook

(2013). The questions are arranged as stated in the Table number 4.

PMBOK®

Guide – Fifth Edition

Chapter Percentage of Questions

3 15%

4 12%

5 11%

6 12%

7 7%

8 6%

9 8%

10 6%

11 9%

12 7%

13 7%

TOTAL 100%

Table 4: Structure of CAPM® Questions (source: own design inspired by CAPM

®

Handbook, 2013)

The recertification process starts on the day of successful completion of the certification

process. This period of CAPM® takes five years, the rest certifications have to be

updated in a three-year-long period. A year before the expiry, i.e. at the beginning of the

47

fourth year of certification cycle is the time when applicant has the option to apply for

recertification. The exam has to be passed in this one-year period which is called

renewal period. When we speak about the other certifications, there is a specific

programme called Continuing Credential Requirements which contains prerequisites for

prolonging the cycle. Every applicant has to gain particular number of Professional

Development Units (PDU) to apply for recertification of any type. There are two ways

how to gain PDU points – through Education PDU Categories containing accredited

courses, e-learning seminars, etc. and Giving Back to the Profession Categories

associated with author´s comments, working as a project manager and others. One PDU

point means one hour spent on above-mentioned activities (Kryst, 2011).

Certification Amount of PDU points

needed

Transferable amount

PMP®

60 20

PgMP®

60 20

PMI-SP®

30 in the field of PM

planning 10

PMI-RMP®

30 in the field of risk

management 10

CAPM®

- -

Table 5: The Amount of PDU Points Required for Recertification (source: own

design inspired by PMP®

Handbook, 2013)

It is possible to transfer only those PDU points that are earned in the last year of

certification cycle under condition of certain amount mentioned in the Table number 5.

The holder is solely responsible for recording PDU points. PMI also recommends

retaining documentation connected with PDU points reporting.

4.6 BRIEF OVERVIEW OF OTHER ORGANIZATIONS

As you might know, IPMA and PMI are not the only organizations dealing with the

issue of project management. In spite of the fact that the thesis is mainly focused on the

two standards, this chapter serves as a brief and relevant completion of the topic to let

48

you achieve a compact perspective. Another purpose of the chapter is not to miss out

any further options on this field and thus not to give preferential treatment to IPMA and

PMI.

4.6.1 PRojects IN Controlled Environments – PRINCE2®

This is a process-based method which was established in 1989 by CCTA11

. It is

extensively used by the government of United Kingdom and also in private sector

across countries. PRINCE2®

defines project a project as “a temporary organization that

is created for purpose of delivering one or more business products according to an

agreed Business Case,” according to Hinde (2012, p. 3). The same author describes

a project team as a group of people who come together for the duration of the particular

project and deliver business products.

There are several key features of PRINCE2®

according to its official websites:

focus on business justification,

defined organisation structure for the project management team,

product-based planning approach,

emphasis on dividing the project into manageable and controllable stages, and

flexibility that can be applied at a level appropriate to the project.

There are two main certifications. The first one is the foundation certification which is

a prerequisite to the second one. It deals with measure whether an applicant would be

prepared to act a mature member of any project team that uses this method within the

PRINCE2®

background.

The second certification called a practitioner certification which is aimed on measuring

whether an applicant is able to run and manage a project within the same conditions

which are described for foundation certification. An applicant has to produce detailed

explanations of all procedures, techniques and tools and show that fully understands all

the processes including a demonstration of understanding the reasons behind the

processes (Lopez et al, 2005).

11

The Central Computer and Telecommunications Agency which is nowadays called the Office of

Government Commerce.

49

4.6.2 Australian Institute of Project Management – AIPM

AIPM is a leading entity for project management in Australia that was established in

1978. Thanks to its more than 10,000 members, it is considered the largest national

membership organization for project management in Australia and also the second

biggest member of the International Project Management Association. Its mission is to

come up with innovative and up-to-date information from the project management point

of view to Australia according to its official websites.

It includes six basic levels of certification. The first three are called RegPM

programmes which can be described as a competency-based, workplace assessment

program within the National Competency Standards for Project Management. This

requires all applicants to make a so called logbook of evidence to prove their

competency at the certain level. QPP certification as the fourth level is convenient for

those who already are members of any project team and take an active part in assisting

and contributing to a project. The fifth certification called RPM is suitable for persons

who are willing to manage a project rather than interface on its project team and the last

level called MPD certificate is relevant for managers who manage complex projects

with managerial responsibility for multiple structures of the project and other connected

activities (Lopez et al, 2005).

4.6.3 Association for the Advancement of Cost Engineering – AACE

This association was founded in 1956 in USA and is a non-profit association which

serves the total cost management community. The institution is aimed on a wide variety

of disciplines across all industries and has over 9,000 members.

Candidates can pass exam as certified cost engineers or certified cost consultants. The

recertification cycle is three-year-long and allows the individuals to demonstrate their

specialty and expertise through work experience, education, professional development

and other aspects. There are several main branches that AACE is focused on, such as

planning, scheduling, cost control, management science, etc (Rad and Levin, 2002).

50

4.6.4 Association for Project Management – APM

The Association for Project Management is a provider of a Certified Project Manager

(CPM) which is connected with identification of project management competences. It is

an entity with more than 20,000 individual member and 500 corporate ones. Its mission

is, according to its official website, to provide leadership to the movement of

institutions and persons who are interested and engaged in the same aim which is to

improve project outcomes.

APM has according to Rad and Levin (2002, p. 58) “four main levels of projects:

level 1 – in-house with a single disciplinary team,

level 2 – in-house with a multidisciplinary team,

level 3 – multi-company with a multidisciplinary team, and

level 4 – multi-country and multi-company with a multidisciplinary team.”

The association aims to promote their programme called ‘Five Dimensions of

Professionalism’. It contains breadth, depth, achievement, commitment and

accountability. All the factors within the framework should help candidates to develop

their career.

51

5 COMPARISON OF IPMA AND PMI STANDARDS

The main aim of this chapter is to analysis information and data mentioned in the

above-written parts of the thesis connected mainly with IPMA and PMI approach and

certification. It contains price comparison and comparison of the number of certified

project managers. The mission of the chapter deals with summarization of the main

differences, pros and cons, so that a reader is able to create a comprehensive view of the

matter. The issue described very informatively will be now taken into comparison side

by side.

There are two main organizations which issue, manage and extend their own standards

of project management. The IPMA is connected with ICB standard and its Czech

version made by SPŘ which is CzCB. The institute of PMI is associated with PMBOK®

Guide. These standards play a crucial role in providing a certification process for

project managers. The IPMA promotes A, B, C, D levels. The PMI offers certificates

CAPM®, PMP

®, PMI-SP

®, PMI-RMP

® and PgMP

®. There is a need to pass through

a certification process to get the certification.

5.1 APPROACH OF IPMA AND PMI TO PROJECT MANAGEMENT

The IPMA approach to project management is defined as a set of knowledge, skills and

those forms of behaviour that enable us to serve the required work performance. Such

competences are divided into three groups:

technical skills,

behavioural competencies,

contextual competencies.

This issue described in detail in Table no. 3 (page 40) take into consideration

knowledge of various methods, tools, techniques and procedures.

The PMI is the application of knowledge, tools and techniques to project activities to

meet project demands. This approach contains 47 logically grouped project

management processes to accomplish through the appropriate application and

integration. This scheme is divided into five process groups:

52

initiating,

planning,

executing,

monitoring and controlling, and

closing.

There are also several aspects that are included in managing a project, such as

requirement identification, addressing the various needs, carrying out communication

among stakeholders, creating project deliverables and balancing the competing project

constraints: scope, quality, schedule, budget, resources and risks (PMBOK® Guide,

2013).

The PMBoK® Guide (2013) also describes a project management plan as iterative

activity which is progressively elaborated throughout the project life cycle. This

procedure contains improving and detailing plan as more detailed and specific

information and more precise computations become accessible.

5.1.1 Comparison of Project Definition

As written in the Chapter 3.1.1, there are several angles of reflection of how to

apprehend the definition of project. It is natural that both comparing standards have

their own differing ideas about this issue.

When we take into consideration a project in the project management background, the

IPMA standard describes it as “a unique set of parameters, such as objectives, clear

deliverables, time and cost, project-specific organisation and by their differentiation

from other operational activities,” (ICB – IPMA Competence Baseline, 2006, p. 128).

The same book also claims that project co-ordinated activities as a unique set which are

undertaken by an organisation to achieve specific goals which are related to the project

deliverables. Projects also comprise attributes of novelty, legal constraints, work sharing

and team work and complexity. The standard besides other things pays attention to the

classification by the type, such as: investment, R&D, organisational or ICT within the

other levels of order as internal and external projects and regional, national or

53

international from the regional development point of view. These facts are also stated in

the ICB – IPMA Competence Baseline (2006).

With respect to IPMA definition of a project, PMBoK® Guide (2013) is more focused

on unique product, service or result of the project. This is reflected for instance in case

when speaking about formal beginning and end of a project. The Guide defines the end

of the project as a period when results and objectives are accomplished or when the

project is terminated since the outputs are not carried out. Another definition also

confirms our above-mentioned presumption: “every project creates a unique product,

service or result,” (PMBOK® Guide, 2013, p. 3). The Guide also describes in detail

what a project can create. The final outputs are divided into a product as a component of

another item, a service or capability to perform a service, an improvement of already

existing product or service, and a result in the form of an outcome or document.

The PMBoK® Guide as well as ICB defines exact differences among portfolios,

programs and projects. A portfolio refers to a collection of projects, programs and sub

portfolios. Programs are next to this grouped within a portfolio and are comprised of

projects and subprograms. Despite programs and projects do not need to be

interdependent or directly related; they are linked to the particular strategic plan by

means of the portfolio of organisations (ICB – IPMA Competence Baseline, 2006 and

PMBOK® Guide, 2013).

5.1.2 Project Management and Cycle Comparison

The project cycle is very closely connected with time. This is immediately apparent

when reading both IPMA and PMI approach to this issue. Doležal, Máchal, Lacko et al

(2012) state that there are two renditions of the cycle. The most general one divides

project into pre-project phase (definitional), project phase (initiation, preparation,

realization and termination) and post-project phase (evaluation and operation). The

realization is many times preferred before the others which results in underestimation of

the rest, mainly pre-project and post-project phases. IPMA also put an emphasis on

milestones of the project which are defined as important events in some specific time

point within the particular project. It usually has null length of duration and is

a significant prerequisite for the initial planning.

54

Since the standard deals with very thorough dividing of life cycle, there are also set

recommended tools and procedures relevant for the specific phase. The pre-project

phase is coupled with the ´Opportunity Study´12

and ´Feasibility Study´13

. It also enables

using of the ´Pre-project reflection´ which is a document combining both mentioned

tools and recommended for easier projects. The stat-up of the project is accompanied by

the ´project charter´ which is considered a fundamental project document dealing with

basic technically-organizational project parameters. The next phase called preparation

of the project is the point when a project team is set and defines a range of the project

using, for instance, ´WBS´ and ´table of dimensions´ followed by the ´project

management plan´ and its approved version called ´baseline´. The realization of

a project is in many cases accompanied by a kick-off meeting at the time when the

realization physically starts. The close-out of a project is not understood as termination

of all activities connected with the project. However it is followed by evaluation and

commissioning. The accurate determination of the time of completion is essential for

evaluation whether the project met its triple constraint (see Chapter 3.1.2) and other

elements (Doležal, Máchal, Lacko et al, 2012).

The PMBoK® Guide (2013) describes project cycle as the series of sequential phases

with determined names and numbers that are related to a project from its initiation to its

closure. It provides a fundamental framework enabling management of the project

regardless of any type of the activity. According to the Guide, every project is modified

by size and intricacy and thus the PMI standard follows very generic life cycle, such as:

starting the project,

organizing and preparing,

carrying out the project, and

closing the project.

Next to this, PMI defines so called iterative and adaptive life cycles. The iterative are

those which are characterized by one or more project activities that are intentionally

repeated according to the product increases. Adaptive life cycles are proposed to react

on some bigger changes and ongoing stakeholder preoccupation. Although this type of

12

The document that lays a foundation of pre-investment phase within which is defined the widest range

of opportunities that can be taken into account as potentially and economically profitable. 13

Its aim is to verify the feasibility of a business plan. The intent can take different forms, such as the

acquisition of fixed assets, new market entry, and new product on the market or other project intention.

55

methods is also iterative, iterations are swift, which means duration of two to four

weeks, and fixed in time and cost. These cycles are the most convenient for projects

with changing environment and pre-defined scope and requirements (PMBOK® Guide,

2013).

It is evident that IPMA approaches to the cycle definition much more comprehensively

described than by PMI. When reading both resources, the first standard describes the

process literally step by step with suggested and recommended tools accompanying

certain procedure.

5.1.3 Project team and its Comparison

Both comparing standards agreed on a project team as a substantial element of every

project. It is a propelling force resulting in final outcomes in every shape or form.

Successfulness of a project highly hinges on the right composition of the project team.

Even this crucial aspect has slightly different descriptions in the two standards

comparison.

The introduction of teamwork in the ICB – IPMA Competence Baseline (2006) is

dedicated to the definition of project team as a group of people who work together to

achieve some joint objective and to project team building and communication practising

at project meetings, workshops and seminars in the online form and via electronic tools

in the offline form. What marks this standard is the team development followed by this

defined process:

form – the overall focus is not clear for members as well as their individual roles

and responsibilities, it is a kind of testing phase developing joint sense of purpose,

storm – phase of assigning roles accompanied by possible conflicts among

members arising from approaches polarization,

norm – standards and norms forming when familiarizing with values, skills, tools,

criteria and assigning of team leaders,

perform – phase of performance when every member is fully engaged in

achievement of joint objectives together as one project team.

56

All in all, team forming is according to IPMA a process with several stages occurring in

time. This is supplemented by Doležal, Máchal, Lacko et al (2012) who speak about

several characteristics that need to be met within a project team, such as common

objective, mutual responsibility, joint action readiness, constructive conflicts,

confidence, openness and knowledge ability, self-awareness, etc.

Project team is described from the human resource management point of view in the

PMBoK®

Guide (2013). The Guide divides HR management and project team forming

into four basic processes, such as plan human resource management, acquire project

team, develop project team and manage project team. Every separate unit has its own

proposed inputs, tools and techniques, and outputs. To better understand the whole

scheme, please look at the Figure number 9, which summarizes the whole issue. For

further detailed information which is not a matter of this thesis, follow the PMBoK

Guide (2013), Chapter 9.

Figure 9: Project HR Management Overview (source: PMBOK®

Guide, 2013)

57

It is obvious that each standard approaches to this issue in a different way. The ICB lets

it take its course and describes mainly the project team development in detail. The

PMBoK® Guide on the other hand intimately depicts every input tool and output within

each of four processes. In any event, both approaches to the issue are right and thus it

depends on personal preferences which one is more convenient for particular purposes.

5.1.4 Project Quality Management by IPMA and PMI

Quality of a project is an integral part of the processes that accompany the whole project

and its project team. It is determined by the extent to which the requirements of the

project are accomplished. Quality management is based on the participation of all

members of the project team who have to consider the quality of outputs the basis and

core of every project.

The ICB understands validation of project quality as a process which is carried out via

procedures such as quality assurance, quality control and project and product audits.

There are several types of computer-aided design for these purposes, scale models or

prototypes which can be used and tested to validate the product design and, at the same

time, to adapt outputs to satisfactory level. Such testing is important to prove that the

outputs meet the original specification and to uncover any blemishes (ICB – IPMA

Competence Baseline, 2006).

There are two main vantage points to quality implementation according to IPMA, such

as quality of project processes and quality of project products. This is added by six

principal areas which might help to enhance the quality:

quality management policy – usually in the form of a document made by a quality

expert containing main objectives and responsibilities,

quality objectives – as a part of corporate policy of quality with specific aims and

time frame regarding their accomplishment,

quality assurance – umbrella title for formal issues and management processes to

ensure the required quality of products and services,

58

quality control – provides constant monitoring, identification and elimination of

problematic cases which is sometimes said to be technical aspects of quality

management,

quality audit – as an independent quality evaluation carried out by qualified staff

ensuring quality level, wholesomeness, compliance with legislation and

appropriateness and timing, and

plan quality management – as a result of a project manager work describing

achievement of particular level of quality.

The same authors (Doležal, Máchal, Lacko et al, 2012) also determine main processes

of quality management, such as quality planning, quality assurance and quality control.

These processes are supplemented by several main tools which are according to both

IPMA and PMI convenient for project quality management. See the following Table

number 6:

Tool Description

Check sheets A method of systematic collection and subsequent

presentation of data.

Pareto diagrams A specific type of histogram that helps to identify and

address priority problem areas.

Cause and Effect analysis An analysis using diagrams to identify the

relationship between the effect and cause.

Analysis of trends A statistical predictive method that quantifies the

relationship between data.

Histograms A tool for graphical presentation of data in the current

time without trends and deviations.

Scatter diagrams A type which organizes data by using two variables

displayed in the graph.

Control diagrams A method used to prevent faults using statistical

methods.

Table 6: Control Quality Tools by IPMA and PMI (source: own design inspired by

Doležal, Máchal, Lacko et al, 2012 and PMBOK®

Guide, 2013)

PMBoK® Guide (2013) also defines three main axes of project quality management in

the form of plan quality management, perform quality assurance and control quality and

59

determines particular inputs, tools and outputs. The PMBoK® Guide (2013) also

intimately describes inputs, tools and techniques and outputs of the three above-

mentioned areas. Its description of project quality management is a bit wider and

comprises of almost all possible aspects of the issue. Whilst ICB standard is primarily

focused on quality control, PMBoK® Guide provides equally thorough and complex

information regarding the whole matter.

5.2 COMPARISON OF STANDARDS AND CERTIFICATIONS

When comparing the standards, there is a need to have in mind two very different

perspectives on an issue. The standards are trying to standardize processes, techniques,

and knowledge and project management skills.

5.2.1 Basic Comparison of Both Standards

ICB takes the problem from the point of view of competences. There are only several

practical tools and techniques with an exception of CzCB where the best practices and

techniques of project management are mentioned. Description of competencies in the

ICB is not exhaustive and it is therefore necessary to study more literature which

describes the competencies in detail.

PMBoK® Guide analysis the problem of project management more procedural. There is

a list of methods and tools that have been collected for years of project management

praxis. A project manager who knows the methodology of project management

according to the PMI standard has an excellent theoretical basis and obtains the

knowledge of techniques and tools relevant for project management. This core is so

broad and extensive that when applying to the specific problem, there is a need to

process and adjust the procedure.

60

Aspect ICB and CzCB PMBoK® Guide

Methodology competence procedural

Procedure

theoretical basis containing

procedural steps with

effortless application

theoretical and practical

basis with difficult

implementation

Areas three competence areas five process groups

Sub-areas 46 elements 47 processes

Material provision national standards unique document

Table 7: Main Differences of ICB and PMBoK® Guide (source: own design)

In spite of the global scope of the PMI, there is only one unique document contrary to

national standards which are allowed by IPMA. It is possible to enrich the material by

the tenth amendment or adding content to make the material best suited to the

conditions and environment of the particular region. Standard PMBoK®

Guide describes

the knowledge areas of project management whereas the ICB standard and its national

versions describe the manager competences. Standard ICB is more theoretical but

adapted for application to specific practical problems whereas the other one book is

both theoretical and practical but the implementation of certain procedures is a bit tough

and must be modified.

5.2.2 Standards Comparison by Selected Indicators

When taking into consideration how to best possibly compare both selected standards,

i.e. information and data associated with them which were stated in detail in the

previous sections, there were set several indicators by Guerrero, Cardoza and Ríos

(2012) which are evaluated in the following table as a part of the practical analysis and

study of this thesis.

61

Indicator ICB and CzCB PMBoK® Guide

Accreditation of the

model

Certified by ISO 9001 and

ISO 17024 norms

Certified by ISO 9001 and

ISO 17024 norms

Levels of certification:

number Four classes of certification

Three classes of

certification

Levels of certification:

accessibility

It is not requisite to have a

low level to access to a

higher one

It is not requisite to have a

low level to access to a

higher one

Extent of the certification Projects, programs and

portfolio management

Projects and programs

managements

Direction of project

management Per competences Per processes

Form of organization Confederation of

Associations Membership Associations

Model requirements:

experience in PM

Required experience for

the higher levels

Required experience for

the higher levels

Model requirements:

training required

No training or initial

education obligated

Training or education

obligated

Certification process:

evaluation system

Written evaluation and face

to face interview

Only written evaluation as

a knowledge exam

Measurement of

experience in PM

Years of experience are

required

Years of experience are

required

Validity Licences of only five years Licences of three to five

years

Purpose of the guidelines

and standards: projects

It has guidelines for

individual projects

It has guidelines for

individual projects

Purpose of the guidelines

and standards:

organization

It has no guidelines for

business projects

It has guidelines for

business projects

Purpose of the guidelines

and standards: people

It has guidelines for

evaluation and certification

It has guidelines for

evaluation and certification

Alteration of the

guidelines and standards

It allows alterations in the

standard

It does not allow

alterations in standard

Table 8: Comparison of Standards by Indicators (source: own design inspired by

Guerrero, Cardoza and Ríos, 2012)

62

5.2.3 Comparison of Certifications

Different concept of project management and its methodology in standards is reflected in

the different concept of certifications. The IPMA certifies holders as project managers

whereas PMI certifies them in project management. The tiny difference between the two

statements is obvious. Project manager of IPMA has to prove their abilities and skills, i.e.

competences and to conduct operations in accordance with well-established standards and

rules. IPMA provides four types of certification in the field of project management. The

previous one is said to be more difficult than the previous one. The higher level of

certification means the higher position level of a project manager. The Institute of PMI

provides five certifications. A step-by difficulty cannot be applied on the certificates. For

instance certificates PMI-RMP®

and PMI-SP®

are mainly focused on risk management and

planning. It can be said that the A degree corresponds to PgMP and B degree to the

CAPM®

. PMP®

can be considered somewhere between C and D level.

Graph 2: Ratio of Actively Certified of IPMA and PMI in European Countries

(source: own design inspired by Lopez et al, 2005)

As it is evident from the Graph number 2 with data of the year 2004, there is an apparent

domination of IPMA certifications which control majority of above-mentioned European

countries. There are two countries without any PMI certificated persons, such as Serbia and

Ukraine. Nevertheless they cover only a small number of certified project managers. On the

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Au

stri

a

Cro

atia

Cze

ch R

epu

blic

De

nm

ark

Fin

lan

d

Fran

ce

Ger

man

y

Gre

ece

Hu

nga

ry

Ital

y

Latv

ia

Net

her

lan

ds

No

rway

Po

lan

d

Po

rtu

gal

Serb

ia-M

on

ten

e

Slo

vaki

a

Slo

ven

ia

Spai

n

Swed

en

Swit

zerl

and

Ukr

ain

e

Un

ite

d K

ingd

om

Rat

io in

Pe

rce

nta

ge

European Country

PMI

IPMA

63

other hand, Greece and Norway are countries with no PMI managers. The Czech Republic

belongs to countries where IPMA prevails by almost 90% which means 211 actively

certified people to 24 certified people by PMI.

The certification process is in both cases a bit confusing and complicated. There is a need to

fill out a number of documents to prove work experience and demonstrate completed

education. The IPMA certification requires passing both a written test and oral interview.

The Project Management Institute does not demand an oral interview since it is based on the

same conditions for all applicants and impartially in the case of the interviews could not be

guaranteed. There is an exception in the form of PgMP certification which is comprised of

a commission exam and multi ratings. Validity of IPMA certificates takes five years

whereas PMI is designed for three years. The exception is a five-year-long validity of the

CAMP certificate. Recertification of PMI requires achievement of PDU points which can be

obtained in the shape of experience in project management, participation in events related to

project management, etc. Therefore there is no need to intricately demonstrate applicants´

activities associated with project management as in the case of IPMA.

64

6 DISCUSSION

The thesis was designed to analyse and compare characteristics of IPMA and PMI

standards. With respect to these purposes, there are steps that were carried out to

achieve determined objectives. There is a research on relevant areas of project

management based on literature and electronic sources mentioned in the bibliographic

references. On the ground of the research, the study of these areas broke out and thus

gives an essence of the issue to develop a comparison analysis of above-mentioned

standards and approaches to project management. The chosen areas which run through

the whole thesis and culminate in the final result in the form of the comparison aspects

are approach to project management comprising, comparison of standards and

comparison of their certifications.

It is indisputable that both standards have many differences although each of them is

focused on the same topic of project management. This fact cannot be contested in any

aspect from the structure and history of their institutions, above different approach to

project management in its particular parts, to differences in their certification process.

The thesis analysed four chosen components of project management, such as project

definition, project life-cycle, project team and human resources and project quality

management. Just in case of project cycle, there are two different points of view. The

IPMA standard deals with pre-project phase, project phase containing initiation,

preparation, realization and termination, and post-project phase consisting of evaluation

and operation. In opposite to this, PMI describes the cycle in four stages, such as

starting the project, organizing and preparing, carrying out the project and closing the

project.

The difference is also considered in the scope of project team. IPMA procedural speaks

about forming, storming, norming and performing of the team whereas PMI takes into

account this issue more generally in the form of development of human resource plan,

acquiring project team, developing project plan and managing project plan. This case is

a typical demonstration of more general and thorough approach to process issues of

project management whereas IPMA conception is more detailed and focused on

particular part of the whole matter.

65

This can be also found out in the comparison of quality management. PMI description

of project quality management is a bit wider and comprises of almost all possible

aspects of the issue determined into quality management, perform quality assurance and

control quality. Contrary to this, IPMA standard is primarily focused on quality control

next to quality assurance and project and product audits, PMBoK®

Guide provides

equally thorough and complex information regarding the whole matter. As a result, both

standards take into account same tools dealing with quality management, such as check

sheets, pareto diagrams, cause and effect analysis, analysis of trends histograms, scatter

diagrams and control diagrams (see Table number 6, page 58). Detailed analysis of

project management and its approach from IPMA and PMI point of view is described in

chapter number 5.1 and its subchapters.

The second compared aspect is connected with standards and certifications. From the

methodological point of view, ICB and CzCB, which were chosen as the assessed ones,

are competently based, whilst PMBoK® Guide is procedural. This results in theoretical

basis containing procedural steps with effortless application in three competence areas

in the case of ICB and CzCB and theoretical and practical basis with difficult

implementation within five process groups in the case of PMBoK®

Guide. The whole

core of the standards is stated in national publications of IPMA and one unique

document called PMBoK® Guide. Further information is stated in Tables 7 and 8 as

a part of 5.2 chapter which thoroughly describes also the very process of certification

and its characteristic rules.

When occupying with IPMA and PMI standards and primarily with specific chosen

aspects, there are several advantages and disadvantages which are considered relevant

related to the core of the analysis and its comparison. There is a need to mention that

these considerations can be and are subjective and attitudinal. The main pros of IPMA

are its competence basis and applicability to every field also within European

partnership when considering IPMA mainly European certification. This is also its cons

because IPMA is not so well-known in non-European countries and do not offer surfeit

of study materials. Contrary to this, PMI advantage is that it is globally well-known,

also applicable to every field but extremely in IT sector. What can be considered as

disadvantage is huge stress on theoretical knowledge, and monolingual study materials,

courses and exams as well.

66

7 CONCLUSION

The main core of the thesis which is focused on project management is to compare

IPMA and PMI standards. The document is designed as a standard research work with

its typical chronological procedure. Firstly the main and specific objectives were set

followed by suggested methodology in connection with the official work assignment.

Secondly the theoretical background of the matter was described which resulted in the

research of already existing literature. This part also laid the foundations for marked out

analysis. Afterwards the fundamental features and characteristics of both institutions

were delineated to give a clear idea of their thorough and complete functioning. These

aspects are considered the very basis for the subsequent analysis and study of which

main aim was to analyse IPMA and PMI according to two main vantage points –

approach to project management and standards and their certifications.

When comparing institutional approach to project management, four main aspects were

chosen, such as the approach to project definition, project cycle, project team and

human resources and project quality management to procedurally compare both

standards. We can generally state that IPMA as a competence based standard is in case

of project human resource management and project quality management more narrowly

focused on particular area of the issue whereas PMI as a procedural based standard can

be described as a more comprehensive approach to analysed fields.

The second perspective touches comparison of standards and their certifications. From

this point of view the IPMA standard covers three main competence groups whereas

PMI is divided into five process groups described in one unique document. This IPMA

approach seems to be more focused on skills and natural prerequisites of managers

while PMI assesses such persons more theoretically with a huge emphasis on procedural

knowledge. This is also reflected when speaking about certification process since IPMA

insists on face to face interview in combination with written exam to be acquaintance

with competences of applicants. Another fact which indicates that PMI approach is

more lined, strict and ruled whereas IPMA gives managers more space to act is that

IPMA allows modifications in the standard whereas PMI does not.

The whole result which was appraised in the thesis based on analysis of processed data

does not intend to decide which standard is better or worse since it is not possible. Both

67

of them are convenient tools aiming at project management with different approaches

which might be deciding and crucial factor for every project manager to choose which

one is more intimate for them according to their personal preferences. When looking at

number of certified persons across Europe or all over the world, there is a need to take

into account accessibility of the standard in such country and promotion as a current

strong tool on the open market.

All in all, the thesis does not pretend to offer guidance on the correct selection of the

standard. It just tries to disinterestedly describe both standards, their organizations,

approach to selected aspects of project management and their certifications to give

a clear idea about which one is convenient to be used in particular situation and thus

give a helping hand with raising awareness of project management standards.

68

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14

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9 ANNEXES

Annex 1: Self-Assessment Form IPMA (source: official website of IPMA)

76

77

Annex 2: PMI Reporting Form (source: official website of PMI)

78

79

Annex 3: Number of Certificates per IPMA Level (source: IPMA Certification

Yearbook, 2013)

80

Annex 4: Number of PMI Certificates (source: official website of SUKAD)