Examining the Benefits of Project Management Professional (PMP) Certification for IS Project Managers and Organizations

Abstract

The project management professional (PMP) certification has gained a positive reputation among project managers as well as with HR managers and recruiters. However, the organizational benefits are untested. This paper examines the business value of PMP certification. The three questions this study investigates are, What value does certification give project managers? What value does certification give organizations? and How can organizations encourage project managers to pursue certification? Content analysis of transcripts from twenty-five structured interviews identified several reasons businesses should encourage their project managers to pursue PMP certification, but many of the benefits are not easily quantified. INTRODUCTION Project teams have become an essential element for information systems (IS) departments. IS departments rely on project teams to develop new systems and to implement new technologies (Martinez, 1994). As a result, the role of the project manager is increasingly important (Stewart, 1995). More and more companies rely on skilled project managers to meet schedules, budgets, and quality goals. 'Project Manager' has become a recognized job title within the IS field, with a defined career path in many organizations (Fried, 1992; Marken, 1998; Pettersen, 1991). Project managers enjoy a strong and growing profession (Posner, 1987). Since its founding in 1969, the Projecl: Management Institute (www.pmi.org) has grown to become the leading professional organization for project managers. With over 100,000 members worldwide in 2003, the nonprofit PMl is the leading professional association in the area of project management. The PMl establishes project management standards, provides seminars, educational programs and professional certification that more and more organizations desire for their project leaders. Project management is the application of knowledge, tools, and techniques to a broad range of activities in order to meet the requirements of a particular project (Duncan, 1996). Project management helps organizations meet their customers' needs by standardizing routine tasks and reducing the number of tasks that could potentially be forgotiien. In 1984, the PMl began a certification program in project management. PMl's Project Management Professional (PMP) credential is the project management profession's most globally recognized and respected certification. In 1999, the PMl became the first organization in the world to have its certification program attain International Organization for Standardization (ISO) 9001 recognition. To obtain PMP certification, an individual must satisfy education and experience requirements, agree to and adhere to a code of professional conduct, and pass the PMP certification examination (Duncan, et al. 1994). In 2003, there were over 50,000 PMPs who provided project management services in 120 countries. This research investigates the benefits, both to the individual and to the organization, of PMP certification. Many corporations encourage their project managers to pursue PMP certification. They offer rewards for employees who successfully complete the PMP exam and incentives for those who are considering it. Project manajjers see certification as a way to get ahead, to stand out, to earn higher salaries, or to improve their job security (Pierson, et al. 2001). Corporations see certification as a means of achieving higher rates of project success. Many coiporations strongly encourage project managers to become PMP certified; some actually require project managers to hai/e the PMP credential for employment or for advancement within the corporation. However, passing the PMP exam is not easy (Craig, 2002). It is a difficult test, requiring many hours of studying. Thus, project managers may