Analysis of IPMA and PMI Standards and Their Comparison

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: independently, and only with the cited sources, literature and other professional sources.

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.

I understand that my work relates to the rights and obligations under the Act No. 121/2000 Coll., the Copyright Act, as amended, in particular the fact that Mendel University in Brno has the right to conclude a license agreement on the use of this work as a school work pursuant to Section 60 paragraph 1 of the Copyright Act. Before closing a license agreement on the use of my thesis with another person (subject) I undertake to request for a written statement of the university that the license agreement in question is not in conflict with the legitimate interests of the university, and undertake to pay any contribution, if eligible, to the costs associated with the creation of the thesis, up to their actual amount.

In Brno, 20. 5. 2014

……………………………………………………..

Signature

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

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

8

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速 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速 Guide

p. 60

Table 8:

Comparison of Standards by Indicators

p. 61

9

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

10

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

11

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 12

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.

13

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:

14

-

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.

15

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 (DoleĹžal, MĂĄchal, 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 16

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 International Organization for Standardization 3 Project Management Institute 2

17

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 returnability 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 18

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)

19

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

Cost constraint

Performance criteria

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

Cash

Budget, allowable expenditures

Personnel

Team members, time-allocation

Equipment

Capital equipment

Suppliers

Consumable suppliers

Overhead

Organizational purposes cash

Intangibles

'Political capital'

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.

20

3.2 PROJECT MANAGEMENT AND ITS CYCLE Project management is a young branch which commenced its own history after the 2 nd 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 DoleĹžal, MĂĄchal, 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 21

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 Taylor5. Henry Ford6 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.

4

George 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.

22

Period of time

Before 1900

1900 – 1949

1950 – 1969

1980 – 1989

1990 +

Characteristic features 

people cheap, even expendable



immense projects



urgency not driven by the rat-race



emergence of management science



early development of critical path networks



inception of Henry Gantt´s planning charts



project management as a recognized profession



project management software in batch mode



more concern for people at work



desktop computers development



managers less dependent on IT experts



wider acceptance of project management as a profession



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 23

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 abovementioned 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.

24

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) –

25

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.

26



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.

27

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 teambased 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.

28

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 29

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 30

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 (Maaytovรก, 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 Maaytovรก (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 (Maaytovรก, 2013).

31

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.

32

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.

33

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.

34

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).

35

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.

36

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.

37

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.

38

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 39

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 1.02

PM success Interested parties Project requirements and objectives

2.01 2.02

Leadership Engagement

3.01 3.02

Project orientation Program orientation

2.03

Self-control

3.03

Portfolio orientation

1.04

Risk and opportunity

2.04

Assertiveness

3.04

1.05 1.06

Quality Project organization

2.05 2.06

Relaxation Openness

3.05 3.06

1.07

Teamwork

2.07

Creativity

3.07

1.08

Problem resolution

2.08

Results orientation

3.08

1.09

Project structures

2.09

Efficiency

3.09

1.10 1.11 1.12 1.13 1.14 1.15 1.16

Scope and deliverables Time and project phases Resources Cost and finance Procurement and contract Changes Control and reports Information and documentation Communication Start-up Close-out

2.10 2.11 2.12 2.13 2.14 2.15

Consultation Negotiation Conflict and crisis Reliability Value appreciation Ethics

3.10 3.11

1.03

1.17 1.18 1.19 1.20

Project, program, and portfolio implementation Permanent organization Business Systems, products and technology Personnel management Health, security and environment Finance Legal

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).

40

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, 41

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, 42



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: 43

80% 70%

Percentage

60% 50% Technical

40%

Behavioural

30%

Contextual 20% 10% 0% IPMA Level A

IPMA Level B

IPMA Level C

IPMA Level D

Level of IPMA

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.

44

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

45

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 4 5 6 7 8 9 10 11 12 13

15% 12% 11% 12% 7% 6% 8% 6% 9% 7% 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 46

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 PMP® PgMP® PMI-SP® PMI-RMP® CAPM®

Amount of PDU points needed

Transferable amount

60

20

60

20

30 in the field of PM planning 30 in the field of risk management -

10 10 -

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 47

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.

48

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).

49

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.

50

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: 51



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

52

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.

53

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.

54

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.

55

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) 56

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,

57



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 Check sheets

Pareto diagrams

Cause and Effect analysis

Analysis of trends

Histograms

Scatter diagrams

Control diagrams

Description A method of systematic collection and subsequent presentation of data.

A specific type of histogram that helps to identify and address priority problem areas.

An analysis using diagrams to identify the relationship between the effect and cause.

A statistical predictive method that quantifies the relationship between data.

A tool for graphical presentation of data in the current time without trends and deviations.

A type which organizes data by using two variables displayed in the graph.

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 58

determines particular inputs, tools and outputs. The PMBoK速 Guide (2013) also intimately describes inputs, tools and techniques and outputs of the three abovementioned 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速 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速 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.

59

Aspect

ICB and CzCB

PMBoK速 Guide

Methodology

competence

procedural

theoretical basis containing

theoretical and practical

procedural steps with

basis with difficult

effortless application

implementation

Areas

three competence areas

five process groups

Sub-areas

46 elements

47 processes

Material provision

national standards

unique document

Procedure

Table 7: Main Differences of ICB and PMBoK速 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速 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 R鱈os (2012) which are evaluated in the following table as a part of the practical analysis and study of this thesis.

60

Indicator Accreditation of the model Levels of certification: number Levels of certification: accessibility Extent of the certification Direction of project management Form of organization

ICB and CzCB

PMBoKÂŽ Guide

Certified by ISO 9001 and

Certified by ISO 9001 and

ISO 17024 norms

ISO 17024 norms

Four classes of certification

Three classes of certification

It is not requisite to have a

It is not requisite to have a

low level to access to a

low level to access to a

higher one

higher one

Projects, programs and

Projects and programs

portfolio management

managements

Per competences

Per processes

Confederation of Associations

Membership Associations

Required experience for

Required experience for

the higher levels

the higher levels

Model requirements:

No training or initial

Training or education

training required

education obligated

obligated

Written evaluation and face

Only written evaluation as

to face interview

a knowledge exam

Measurement of

Years of experience are

Years of experience are

experience in PM

required

required

Model requirements: experience in PM

Certification process: evaluation system

Validity

Licences of only five years

Licences of three to five years

Purpose of the guidelines

It has guidelines for

It has guidelines for

and standards: projects

individual projects

individual projects

It has no guidelines for

It has guidelines for

business projects

business projects

It has guidelines for

It has guidelines for

and standards: people

evaluation and certification

evaluation and certification

Alteration of the

It allows alterations in the

It does not allow

standard

alterations in standard

Purpose of the guidelines and standards: organization Purpose of the guidelines

guidelines and standards

Table 8: Comparison of Standards by Indicators (source: own design inspired by Guerrero, Cardoza and RĂ­os, 2012) 61

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速 and PMI-SP速 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速. PMP速 can be considered somewhere between C and D level.

100% 90% Ratio in Percentage

80% 70% 60% 50% 40% 30%

PMI

20%

IPMA

10% Austria Croatia Czech Republic Denmark Finland France Germany Greece Hungary Italy Latvia Netherlands Norway Poland Portugal Serbia-Montene Slovakia Slovenia Spain Sweden Switzerland Ukraine United Kingdom

0%

European Country

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

62

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.

63

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.

64

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速 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速 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速 Guide. The whole core of the standards is stated in national publications of IPMA and one unique document called PMBoK速 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.

65

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 66

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.

67

8 LIST OF BIBLIOGRAPHIC REFERENCES

8.1 PRINTED INFORMATION RESOURCES A guide to the project management body of knowledge (PMBOK® guide). 5th edition.

Newtown Square: Project Management Institute, 2013, 589 p. ISBN 978-1-935589-679.

BENNETT, John. International construction project management: general theory and practice. 5th edition. Boston: Butterworth Heinemann, 1991, 387 p. ISBN 07-506-13300.

CAMILLERI, Emanuel. Project Success: Critical Factors and Behaviours. Farnham: Gower Publishing, 2012, 324 p. ISBN: 978-0-566-09228-2.

DĚDINA, Jiří and Milan MALÝ. Moderní organizační architektura. Praha: Alfa Publishing, 2005, 170 p. ISBN 80-868-5111-7.

DOBSON, Michael. The triple constraints in project management. Vienna: Management Concepts, 2004, 77 p. ISBN 15-672-6152-3.

DOLEŽAL, Jan, Pavel MÁCHAL and Branislav LACKO. Projektový management podle IPMA. 2nd edition. Praha: Grada, 2012, 526 p. ISBN 978-80-247-4275-5.

FEWINGS, Peter. Construction Project Management: An Integrated Approach. 2nd edition. Abingdon: Routledge, 2013, 624 p. ISBN 11-368-2762-5.

FIALA, Petr. Řízení projektů. 1st edition. Praha: Oeconomica, 2002. 174 p. ISBN 80245-0448-0.

FIELD, Mike and Laurie KELLER. Project Management. Boston: Cengage Learning EMEA, 1998, 441 p. ISBN 18-615-2274-6.

FOTR, Jiří. Podnikatelský plán a investiční rozhodování. Praha: Grada Publishning, 1999, 214 p. ISBN 80-7169-812-1.

HAUGAN, Gregory. The new triple constraints for sustainable projects, programs, and portfolios. Boca Raton: CRC Press, 2013, 393 p. ISBN 978-146-6505-186.

68

HINDE, David. Prince2 study guide. Chichester: Wiley, 2012, 470 p. ISBN 11-1997078-4.

CHIU, Yc. An introduction to the history of project management: From the earliest times to A.D. 1900. Delf: Uitgeverij Eburon, 2010, 245 p. ISBN 90-597-2437-2.

ICB – IPMA Competence Baseline Version 3.0. Nijkerk: International Project Management Association, 2006, 200 p. ISBN 0-9553213-0-1.

JURAN, Joseph and Joseph FEO. Juran´s quality handbook: the complete guide to performance excellence. 6 th edition. New York: McGraw Hill, 2010, 1136 p. ISBN 00716-2973-4.

KANDA, Arun. Project management: a life cycle approach. New Delhi: PHI Learning Private Limited, 2011, 226 p. ISBN 81-203-4173-2.

KERZNER, Harold. Project management: a systems approach to planning, scheduling, and controling. 11th edition. Hoboken: Wiley, 2013, 1296 p. ISBN 978-1-118-02227-6.

KERZNER, Harold. Advanced project management: best practices on implementation.

2nd edition. Hoboken: Wiley, 2004, 847 p. ISBN 04-714-7284-0.

KOUSHOLT, Bjarne. Project Management. 1st edition. Copenhagen: Nyt Teknisk Forlag, 2007, 503 p. ISBN: 978-87-571-2603-7.

KRYST, Tomáš. Certifikáty projektového řízení IPMA a PMI – popis a srovnání. Praha, 2011. 65 p. Bachelor thesis of Faculty of Informatics and Statistics, University of Economics in Prague. Thesis supervisor Martina Kuncová.

LESTER, Albert. Project management, planning, and control: managing engineering, construction, and manufacturing projects to PMI, APM, and BSI standards. 6th editing.

Oxford: Butterworth-Heinemann, 2014, 592 p. ISBN 978-008-0983-219.

LEWIS, James. Team-Based Project Management. Washington D.C.: Beard books, 2004, 240 p. ISBN 1-58798-229-3.

LOCK, Dennis. Project Management. 9th edition. Hampshire: Gower Publishing Limited, 2007, 544 p. ISBN 978-0-566-08772-1.

69

LOJDA, Jan. Manažerské dovednosti. 1st edition. Praha: Grada Publishing, 2011, 184 p.

ISBN 978-80-247-3902-1.

MORRA-IMAS, Linda and Ray RIST. The Road to Results: Designing and Conducting Effective Development Evaluations. Washington, DC: World Bank, 2009, 582 p. ISBN 08-213-7911-9.

MORRIS, Peter, Jeffrey PINTO and Jonas SODERLUND. The Oxford Handbook of Project Management. Oxford: Oxford University Press, 2011, 572 p. ISBN 978-0191629-389.

MULAČOVÁ, Věra and Petr MULAČ. Obchodní podnikání ve 21. století. 1st edition.

Praha: Grada Publishing, 2013, 520 p. ISBN 978-80-247-4780-4.

NEWTON, Richard. Úspěšný projektový manažer: jak se stát mistrem projektového managementu. 1st edition. Praha: Grada, 2008, 255 p. ISBN 978-80-247-2544-4.

NĚMEC, Vladimír. Projektový management. 1st edition. Praha: Grada, 2002, 182 p.

ISBN 80-247-0392-0.

PANNEERSELVAM, R. and P. SENTHILKUMAR. Project Management. New Delhi: PHI Learning Pvt. Ltd., 2010, 416 p. ISBN 81-203-3817-0.14 PITAŠ, Jaromír. Národní standard komeptencí projektového řízení verze 3.2. 3rd edition. Brno: Společnost pro projektové řízení, 2012, 349 p. ISBN 978-80-260-2325-8.

PRATT, David. Pragmatic Project Management: Five Scalable Steps to Success.

Vienna: Management Concepts Press, 2010, 140 p. ISBN 15-672-6274-0.

PRIES, Kim and Jon QUIGLEY. Total Quality Management for Project Management.

Boca Raton: CRC Press, 2013, 295 p. ISBN 14-398-8505-2.

RAD, Parvitz and Ginger LEVIN. The Advanced Project Management Office: a comprehensive look at function and implementation. Boca Raton: St. Lucie Press, 2002, 205 p. ISBN 15-744-4340-2.

ROSE, Kenneth. Project quality management: why, what and how. Boca Raton: J. Ross Publishing, 2005, 192 p. ISBN 19-321-5948-7.

14

There are no records of the authors´ first names.

70

ROSENAU, Milton. Řízení projektů. 3rd edition. Brno: Computer Press, 2010, 344 p.

ISBN 978-80-251-1506-0.

ROZEMEIJER, Eric. Frameworks for IT Management. Zaltbommel: Van Haren Publishing, 2007, 143 p. ISBN 90-875-3087-0.

SVOZILOVÁ, Alena. Projektový management. 1st edition. Praha: Grada, 2006, 353 p.

ISBN 80-247-1501-5.

SVOZILOVÁ, Alena. Projektový management: Systémový přístup k řízení projektů. 2nd edition. Praha: Grada Publishing, 2011. 392 p. ISBN 978-80-247-3611-2.

URBAN, Jan. Tvorba a rozvoj organizačních systémů. 1st edition. Praha: Management Press, 2004, 162 p. ISBN 80-7261-105-4.

WESTLAND, Jason. The project management lifecycle: a complete step-by-step methodology for initiating, planning, executing and closing a project successfully.

London: Kogan Page Publishers, 2007, 237 p. ISBN 07-494-4937-3.

71

8.2 ELECTRONIC INFORMATION RESOURCES 2012 Annual Report PMI [online]. 2013 [cit. 2014-03-21]. Available from: <http://www.pmi.org/AboutUs/~/media/PDF/Publications/PMI%202012%20Annual%2 0Report.ashx>.

Association for project management: About APM [online]. 2013 [cit. 2014-03-21].

Available from: < http://www.apm.org.uk/AboutUs>.

Australian Institute of Project Management: About Us [online]. 2012 [cit. 2014-03-21].

Available from: <http://www.aipm.com.au/AIPM/ABOUT/ABOUT_US/3G/A/about_us.aspx?hkey=99 96465c-df34-49ff-9ae2-09f0b1be662f>.

CAPM® Certification Handbook [online]. 2013 [cit. 2014-03-21]. Available from: <http://www.pmi.org/Certification/~/media/PDF/Certifications/pdc_capmhandbook.ash x>.

GUERRERO, Dante, Anthony CARDOZA and Ignacio RÍOS. Comparison of professional certification systems for project management [online]. 2012 [cit. 2014-0321]. Available from: <http://pirhua.udep.edu.pe/bitstream/handle/123456789/1552/comparison_of_professio nal_certification_systems_for_project_management.pdf?sequence=1>.

HAWDON, Cassie. Business IT course blog: Chapter 11, Project management [online].

2011 [cit. 2014-03-21]. Available from: <http://20112376nd.blogspot.cz/>.

International Project Management Association IPMA: About IPMA [online]. [cit. 201403-21]. Available from: <http://ipma.ch/about/how/>.

International Project Management Association IPMA: How We Run IPMA [online]. [cit. 2014-03-21]. Available from: <http://ipma.ch/about/>.

International Project Management Association IPMA: Certify Individuals [online]. [cit.

2014-03-21]. Available from: < http://ipma.ch/certification/certify-individuals/>.

72

International Project Management Association IPMA: Certification [online]. [cit. 201403-21]. Available from: < http://ipma.ch/certification/>.

Inter-American Development Bank Evaluation Office [online]. 1997 [cit. 2014-03-21].

Available from: <http://www.emeraldinsight.com/journals.htm?articleid=1576244&show=html>.

IPMA Certification Yearbook 2012 [online]. 2013 [cit. 2014-03-21]. Available from: <http://www.spm.ch/fileadmin/user_upload/1_IPMA_Certification_Yearbook_2012.pdf >.

IPMA-HR Long-Range Strategic Plan [online]. 2012 [cit. 2014-03-21]. Available from: <http://ipma-hr.org/sites/default/files/pdf/2012LongRangeStrategicPlan.pdf>.

LOPEZ, Claudia. Comparison of PMI, AIMP, AACE, IPMA and PRINCE2® Certifications

[online].

2005

[cit.

2014-03-21].

Available

from:

<http://webcache.googleusercontent.com/search?q=cache:BsvbkyIC36gJ:www.cpms.or g.cy/files/get/19+&cd=1&hl=en&ct=clnk&gl=cz>.

MAAYTOVÁ, Alena. Projektový management [online]. 2013 [cit. 2014-03-21].

Available from: < http://20112376nd.blogspot.cz/>.

Metodika logického rámce [online]. 2008 [cit. 2014-03-21]. Available from: <http://www.strukturalni-fondy.cz/cs/Fondy-EU/Programy-2004-2006/Operacniprogramy/SPOLECNY-REGIONALNI-OPERACNI-PROGRAM(SROP)/Dokumenty/Metodiky-a-kucharky/Metodika-zpracovani-Logickeho-ramce>.

PRINCE2® Training Courses: What is PRINCE2® [online]. [cit. 2014-03-21]. Available from: <http://www.prince2.com/what-is-prince2>.

PMI

Strategic

Plan

[online].

2012

[cit.

2014-03-21].

Available

from:

<http://www.pmi.org/About-Us/~/media/PDF/Governance/Strategic_Plan.ashx>.

Project Management Professional (PMP) ® Handbook [online]. 2013 [cit. 2014-03-21].

Available from: <http://www.pmi.org/Certification/~/media/PDF/Certifications/pdc_pmphandbook.ashx >.

73

Společnost pro projektové řízení: About us [online]. [cit. 2014-03-21]. Available from: <http://www.ipma.cz/web/about/profile.php>.

Sukad: PMP

Certification

[online].

[cit.

2014-03-21].

Available

from:

<http://blog.sukad.com/20120919/pmp-certification-growth/>.

74

9 ANNEXES Annex 1: Self-Assessment Form IPMA (source: official website of IPMA)

75

76

Annex 2: PMI Reporting Form (source: official website of PMI)

77

78

Annex 3: Number of Certificates per IPMA Level (source: IPMA Certification Yearbook, 2013)

79

Annex 4: Number of PMI Certificates (source: official website of SUKAD)

80