PMP Certification: A Beginner's Guide, Fourth Edition

By George G. Angel

Project management is in everything we do, from our personal lives to our professional careers. It is the fastest-growing profession in the world, and the skills learned in this book can be used for any sort of project, large or small: setting up a small business; planning a wedding, family vacation, company picnic, or other event; and organizing projects of any scale.

This beginner’s guide will teach you real-world project management skills for any project and will help prepare you to become a certified Project Management Professional (PMP) or Certified Associate Project Manager (CAPM).

This fourth edition provides up-to-date information on how to effectively manage projects, programs, and portfolios to achieve organizational success. It includes tips and sample questions at the end of each chapter as well as a mock exam to help prepare you for the Project Management Institute (PMI) certification exams.

This text follows the three PMI domains: People, Business Environment, and Processes. A case study with detailed real-world examples, sample templates, and actual project documents guides you through your own projects, from charter to close, using all five project groups (initiating, planning, executing, monitoring and controlling, and closing projects).

This edition takes the standard processes and framework for traditional projects introduced in PMI’s sixth edition Project Management Body of Knowledge (PMBOK) and adds the new focus on Agile (adaptive) project management methods, tools, and techniques in PMBOK’s seventh edition to enhance your knowledge and ability to handle a wide range of projects.
 

• Language: English
• Publisher: University Press of Colorado
• Release date: Sep 25, 2023
• ISBN: 9781646424047

Book preview

Introduction

Project management is recognized as one of the fastest-growing professions in many of today’s industries—software and hardware product development, government, military, construction, and information services (just to name a few). It has become a required skill for career advancement and improved project and program management success across all geographies, all sectors, and all industries.

Assumptions

This book assumes the readers have varying degrees of knowledge and experience—from little or no formal project management experience to more advanced experience. Because of this range of experience, this book is designed to be a primer and to help identify and/or confirm the further steps needed to become a more successful project, program, or portfolio manager.

About This Book

The true measure of success (goal) of this book is:

1. Does it make sense?

2. Can you use it? (i.e., apply what you learned from this book to your real-life projects for immediate results)

The first question is not easy to answer because of the diversity and wide range of methods, approaches, and experience in this very dynamic world of project management. However, I believe, that if this book is laid out in a logical and easy to follow manner, with real-world examples and a sample case study for you to use as an example (guide), then it is very possible to convert the language or project management into a roadmap that is easy to understand and follow.

The second question is even tougher because of the sheer depth and breadth of project management and the fact that everyone learns and applies what they learn in different ways. We all have different learning styles, that is, visual, tactic, kinetic, rote, and so on, making the learning process very challenging for many of us. Thus, the need to focus on question number one first and foremost (does the material make sense?), and then by giving examples that you can relate to so you can try on the new shoes (so to speak), allowing you to apply what you have learned on your projects for increased ease and immediate results.

When McGraw Hill first approached me in 2008 to write the first edition of this book, I had a different title in mind (Managing Projects the Real World). They had a vision that made sense especially now, because of the gap between what I call seat of the pants—that is, sitting in the driver’s (or pilot’s) seat—everyday project managers and the project managers (PMs) who continue to see the need to approach projects in a more organized and consistent manner. These visionaries recognized the importance of getting certified in this amazing and challenging profession of project management, which led me to focus more on bridging the gap between being a project manager and being a globally recognized Project Management Professional (PMP). I have seen this vision grow through the years with an increasing interest by individuals in every sector, in all industries across all geographies to pursue these highly sought-after credentials.

While credentials are important and are hugely beneficial to both the holder and the employer, it is not the only path to success. I know many great project managers who have not taken the time to get certified and still perform very well using their basic instincts. This is why it is extremely important to use your common sense and to use all the resources (tools, techniques, and the vast network of professionals) to help you achieve project success.

For this book to meet the true measure of success mentioned above, it will guide you through the everyday challenges of managing projects and provide you with tips from several sources that have many years of experience on how to prepare for and pass a Project Management Institute Inc. (PMI) exam.

It also dives into the new role of the project manager in today’s ever-changing world of project management with the transition from the traditional predictive approach to a more adaptive, people-oriented, Agile mindset.

What makes this book different from others?

The differentiators in this book are the straightforward approach to project management details, the proven real-world examples, and the collection of checklists and references that serve as guides for newcomers to project management as well as for the most experienced project managers. This book takes you through the fundamentals of project management to the more complex Agile or hybrid projects using real-world examples of what works and what doesn’t work (lessons learned) in this dynamic profession to demonstrate how sound project management principles can improve the efficiency and effectiveness of you and your project team. Sample documents (templates) and a real project case study help build on the topics discussed throughout the book to give you a clearer picture of how projects should be managed for best results and a higher degree of success.

This book helps project managers better understand the importance of balancing project constraints (barriers) and communicating timely and accurate project status to all primary stakeholders. It also helps prepare you (the reader) for the dynamic, fast-paced (quick-on-your-feet), results-oriented world we are facing, from large projects to lean, Agile short burst workflows (Sprints) and the need to mix the two approaches (hybrid) to get you to the end of any project standing tall and feeling a sense of accomplishment in the successful results (deliverables and outcomes) you and your team performed.

This book is a hybrid that provides real-world project examples to help you manage your projects more successfully, and as an added bonus it aligns with the Project Management Institute’s (PMI) view of project management, including Agile tools and methods. To accommodate readers with a wide range of experience, this book covers content from both A Guide to the Project Management Body of Knowledge (PMBOK Guide), Sixth Edition, because of its solid foundational content, and the PMBOK Guide, Seventh Edition, which includes many of the new focus areas, Agile methods, and principles to help you understand the universal language of project management. If you are interested in pursuing project management certification at some point in the future, this book also included helpful tips and tricks to help prepare you for a PMI CAPM or PMP exam.

The really great news is, based on your interest and experience level, you can follow the flow in the book from the beginning or you can jump right into any of the chapters to focus on specific areas of interest. After all, project management is much like the game of Whac-A-Mole, where one minute you are dealing with a budget issue, and the next minute a risk event occurs and next you find out about a material delay that will blow your schedule. That is what I love about project management, every day is a new day and there is no such thing as normal, which keeps you on your toes and in a constant state of learning.

Tip

This book also includes series elements Tip, Note, Try This, and Ask the Expert. These elements are based on collaborative input from PMP certified instructors, PMP reviews, and input from students who were willing to share a specific experience, address a common problem, or highlight important information that will help you understand the topic better. If you are planning to take a PMI exam, you will want to pay particular attention to the Tip series as they provide helpful information to better prepare you for the CAPM or PMP exam so you can achieve a higher degree of success (pass rate).

Special Note

If you are not familiar with Project Management Institute (PMI) credentials or are not sure you want to pursue PMI certification right away, you definitely want to start this book from the beginning. If you have a few years of project management experience and already know about PMI and their credentials and you want to learn more about how to get certified, go to chapter 2. If you have no interest in getting PMI certified, you can jump right into the People Domain, starting in chapter 3 or any other section that you would like to learn more about.

If you are reading this book as a textbook while taking the Colorado State University (CSU) Project Management Certification course, follow the Modules in order stating with Module 1 (chapter 3).

If you are only working on Agile or hybrid projects, you can scan the book with focus on key areas unique to Agile (especially chapter 15—Executing Agile Projects).

It is also important to note that this book is just a starting point in this large and growing profession of project management. I hope it whets your appetite for more on the exciting topic of project management.

So, sit back, have fun, and start at the beginning or jump into the topics you want to focus on first and you can always come back often to other chapters when you want a refresh or need to focus on a specific topic to get your through the day, week, or month on your project.

Three Takeaway Points from This Book

If you only remember one thing (okay three things) from this book, remember these three takeaway points. Several students have told me they even printed these out and laminated them to put over their desks. If you remember these points and try to live by them, you will have a much higher degree of success on your projects. These points will be referenced and repeated a few times while reading this book and I hope they make sense to you and help you reach the success you so richly deserve. Have fun!

1. Stay focused on the end-goals and objectives. It is very easy in the real world to get distracted by the many requests from sponsors, the potential risks identified by the team, changes in scope, and the natural tendency to want to add value (do more) to the project. Change management, as a process (and models presented in the PMBOK Guide, Seventh Edition), can help you and the team stay focused on the approved scope and goals of the project.

2. Use the tools and resources available. It is important to use standard tools and templates from the PMBOK Guide, from your project management office (if available), from other projects in your group or company, and from other resources. Also, you can acquire shareware tools at no cost (or low cost) to help you track and manage the cost, schedule, and scope of your project. This includes consulting or collaborating with subject matter experts (SMEs).

3. Work as a team. Remember, the number-one asset on a project is the team. As a project manager, you cannot do it all. The best way to ensure that the team is working together is through clear communications and with rewards or recognition when things are done right.

Organization

Because this book is designed to meet the needs of a wide range of project/program managers and project team members, it is broken into a fundamentals section titled Standards, followed by three major sections (parts) identified by three domains: People, Business Environment, and Process. A summary of how this book is organized is provided below.

Standards. Chapters 1 and 2 cover the essentials of Project Management as a global standard and provide an Introduction to PMP Certification (credentials) and how to prepare for and pass the PMP (or CAPM) exam. This section also helps bridge the gap between being a project manager (PM) and becoming a certified Project Management Professional (PMP).

Part I: People. This section consists of chapters 3–7, which set the stage by introducing the importance of the team, how to acquire, develop, and manage a project team, and how to start (initiate) a project. Part I also addresses PMI’s expanded focus on the soft-side of project managing with renewed attention to People as a Domain.

Part II: Business Environment. This section (chapter 8) has been added to this fourth edition and addresses PMI’s new focus on how a project will fit into the bigger program, or portfolio of an organization to help meet overall business goals and objectives.

Part III: Process. This section (chapters 9–17) covers project processes by Process Group, that is, Initiating, Planning, Monitoring and Controlling, and Closing, which is how the PMP exam questions were grouped in the pre-2021 exam. And for those of you interested in taking a CAPM exam, this section also provides a more in-depth view of the PMBOK Guide Knowledge Areas and performance domains. At the end of this section, it will highlight how to bring a project, or phase of a project, to a successful close.

For added learning purposes (i.e., to test your skills), and certainly for people who are planning to take a PMI exam, we have also added sample quiz questions along the way to test your comprehension of the material covered in the book. Since this book is designed to work as a textbook as well as a reference guide, we added (beefed up) case study examples to align with group project assignments to build on and apply throughout a project management course and to use on real-world projects.

We then close this book project (in chapter 17) with a look at next steps (beyond the classroom) to enhance your skills and knowledge of project management to help you build a roadmap to your future to either expand your role as an experienced project manager or to help you step into the dynamic, exciting, and very challenging world of project management for the first time.

If your goal is to pursue PMI certification now or in the future, we provide a 50-question sample (mock) exam with answers to give you an idea of what to expect on a PMI exam.

Now that you have a high-level overview of this book, let’s dive into the dynamic world of project management.

Standards

Essentials of Project Management, Introduction to PMP Certification and How to Prepare for and Pass the PMP/CAPM Exam

1 Changes to This Book and Bridging the Gap between Being a Project Manager and Being a Certified Project Management Professional

Key Skills and Concepts

Welcome to the Fourth Edition—what changed in this book and why?

What is the Waterfall System Approach?

The difference between being a Project Manager and being a certified Project Management Professional

Introduction to Project Management Institute (PMI) and the PMBOK Guide (A Guide to the Project Management Body of Knowledge)

A brief history of project management and the standards

The PMI Global Standards

Reasons for getting certified (What is in it for me?)

Benefits of certification/credentials (What is It worth?)

Introduction to PMI credentials

What Changed in This Book and Why?

Welcome to the Fourth Edition of this book. The main reasons to update this book are to keep it fresh, up-to-date, better aligned with the new focus areas according to PMI, and because project management is ever changing. Project management is constantly evolving with new methods, new processes, new and different tools and techniques, and new focus areas. This edition takes us from the traditional predictive knowledge areas (such as scope management, schedule management, and cost management) and a focus on deliverables and processes in the PMBOK Guide, Sixth Edition, to the more lean and mean (well not so mean, depending on the project and the team) to the more predominate flexible or adaptive (expect and embrace changes) view of project management in the PMBOK Guide, Seventh Edition, and alignment with the updated (2021) PMI exams.

One of the most significant changes is the increased focus on Agile project management, which is more adaptive than predictive in nature. PMI, as with many other organizations, has realized the changing project environment and has now added a third view of project management; this new view is more of a hybrid, or combination of the traditional (Waterfall-predictive) approach and the Agile (adaptive-flexible) view. It is important to keep in mind that Agile is not a methodology as much as it is a mindset with many tools and techniques available to support this hybrid approach. As always, the project manager and team will need to determine the right mix between predictive and adaptive to apply for the best possible fit (hybrid approach) for their project.

What Is the Waterfall System Approach?

The Waterfall system is the most traditional method for managing a project, with team members working linearly in sequential phases toward a set of end goals or deliverables with each new phase beginning only when the previous one has been completed in logical steps.

No matter which approach or toolset you use, it is most often up to you, as the project manager, to determine the best fit for a given project. For example, on a software development project, you might choose the full Agile approach, while on a hardware product development project or construction project you may need a more predictive approach. In some instances, you blend both, delivering a Waterfall project schedule that includes a series of sprints in some of the tasks, activities, or work packages.

The key is balance and blend (B&B) for best results. The really good news is that there is no hard and fast rule on how to manage a project, so most reference books, including this one, is to serve as a guide to provide enough information to allow you as a project manager to decide how you and your team will approach and manage your project(s).

The role of the project manager has changed dramatically in the last few years based on the Role Delineation Study conducted by PMI. The new role of the project manager increases their level of involvement and accountability on not only the projects managed but how these projects fit into the overall business objectives. Without going into a lot of detail, the project manager’s role is viewed as being (or needing to be) more business-oriented and strategic in nature.

Some of the important drivers to changes in this Fourth Edition are as follows:

Shift or migration to a more flexible people-oriented (often referred to as the soft-side of project management) approach.

Shift from process-centric focus on deliverables to the bigger picture focus on value and results-oriented principles (Business Acumen).

Transition to the dynamic change-oriented Agile or hybrid model to allow us to be lean and responsive to the ever-changing needs of projects.

Tip

It has been my experience that no matter how good you are as a project manager, the success of any project is determined by the team. However, the team, especially in a traditional project, needs to be led, directed, and managed and they need the full support of the project manager. On some projects, especially large government projects, the project manager needs to be strong and decisive, and while many project managers meet these criteria, many organizations, agencies, and departments require the project manager to be certified.

So, what is the difference (gap) between being a regular project manager and one that is certified at the Project Management Professional (PMP) level?

Bridging the Gap between Project Manager and Certified Project Management Professional

As you may already know, project management is very dynamic; it uses globally recognized tools, techniques, methods, and processes that often evolve and change to keep up with the demands of projects such as software, use of virtual (distant/remote) teams, many new applications for digital communications, tablets, cell phone apps, and so forth.

Even though the fundamentals remain constant, the project manager’s role is emerging, with the level of involvement and responsibilities of the project manager growing. Companies, agencies, and organizations in both public and private sectors are realizing the importance of good solid project management discipline, not only embracing it but striving to build these practices into the foundation (fabric) of their organization. Large corporations and medium and small companies are all built by fulfilling objectives and completing a series of projects; no matter what type of business they are in, everything comes down to project management.

While project management goes back to nearly the beginning of time, the way we manage projects is ever changing. The tools and techniques are getting more advanced every day. The team dynamics and sponsor expectations are continually in flux. The role of the project manager has been elevated to that of a strong member of decision-makers who often have a higher degree of influence in the success of the business, organization, or agency. Project managers have arrived in many cases and are viewed as a major player in growing the business, for example, increasing revenue, increasing profit margin, or improving efficiency.

Project management is by definition the application of knowledge, skills, tools, and techniques to project activities to meet approved requirements. As with any application, there are tasks that must be performed in order to complete the work. In addition to the increased focus on Agile project management, another significant change in the Project Management Professional (PMP) exam is the increased focus on the tasks of the project manager. The tasks we (as PMs) perform are broader and often cut across many Knowledge Areas of the project; PMI refers to these as Crosscutting Knowledge and Skills; some examples are as follows:

Active listening and facilitating (especially true on Agile projects)

Be aware of the applicable laws and regulations (building codes, etc.)

Benefits realization (how the project fits in to the bigger picture)

Problem-solving (able to evaluate the situation and make decisions)

Brainstorming techniques (more heads are always better than one)

Business acumen (business savvy)

As project managers, we must be able to interact with and effectively manage across a much broader audience and on a higher scale than ever before. For more details on the new role of the project manager including Agile project management, see The Expanded Role of the Project Manager in chapter 3.

To help educate and certify project managers, there are several credentials available internationally. These include PMI-issued credentials totaling more than 1,000,000 Project Management Professionals (PMPs) and over 400,000 Certified Associates in Project Management (CAPMs) in 2022. In addition, there are 300,000+ people certified in one or more of the International PM credentials such as Certified International PM (CIPM) and Certified PM (CPM) under the umbrella of the International Project Management Association (IPMA). These credentials are noteworthy as the demand for certified project management competence spreads globally, however, these international certifications don’t add up to the PMI Project Management Professional (PMP) credential, which has been around the longest and continues to prevail as the most globally recognized and highly sought-after certificate.

There is a huge difference between being a project manager and managing projects as a globally recognized certified PMP or holder of other International PM credentials. The difference can often be seen in the reduced number of failed projects. As project managers develop the skills needed to manage projects effectively and then go on to get certified, their success rate typically increases, as does their salary. According to a 2020 PMI Salary Survey, nearly three-quarters of survey participants (72%) report that their total compensation (including salary, bonus, and other forms of compensation) increased over the 12 months prior to completing the salary survey. About one-quarter (28%) reported increases of at least 5% over that time period.[¹]

Those holding PMI’s globally recognized Project Management Professional (PMP) certification report significant earnings increase in most countries included in this study. Among survey respondents, those holding the PMP certification report higher median salaries (22% higher on average across the 42 countries surveyed) than those without a PMP certification. While the professionals who hold the PMP credential report higher median earnings worldwide annual salaries vary depending on several factors such as the complexity and size of the project, location, field of expertise (IT, construction, or healthcare, for example), or experience, but, one thing is clear, salaries for PMP credential holders will most often be much higher than those project managers not certified.

To get a better understanding of the drivers, let’s look first at project management in general. It is in practically everything we do—creating a new technology, designing an office building or a new home (or tiny home), planning and managing a major event (such as the Olympics), or running a fundraiser for a church or school. Project management principles can also be used in our personal lives—remodeling a basement or kitchen, designing a landscape, and planning a wedding or a family vacation. A large number of these projects are done with little or no formal training. Because projects (by definition) are unique in nature, we tend to manage them in various ways and with different degrees of success. Most of the time when the project reaches the end, everyone is fairly happy with the results.

Project management goes back thousands of years. Look at the pyramids of Egypt (some date back to 2550 BC), the Roman aqueduct that was believed to be the first one built (in 312 BC), and the Great Wall of China (sections began to emerge as early as 700 BC). Many of these engineering marvels are still standing today (with some renovation). How do you suppose these marvels were designed and built? Project management. Project management existed in one form or another early on, and our ancestors somehow mastered it without the artifacts we utilize today such as written scope statements, communications plans, risk plans, or activity schedules (task boards).

Even though many early project managers were successful, their processes were independent (ad hoc), inconsistent, and mostly not repeatable; thus, the need for structure—documented, proven, and repeatable processes; standard tools, techniques, and methods—and solid project management discipline.

Even some ultimately successful projects were anything but successes at the beginning especially when you measure them by today’s standards (i.e., on time and on budget). For example, the Sydney Opera House—one of the most recognizable images of the modern world—was designed by Jørn Utzon of Denmark in 1957 and deemed, at the time, a spectacular failure. Even though it is now revered as an icon of Sydney, it was originally labeled a white elephant and an acoustic nightmare. When construction started on the opera house in 1959, it was estimated to cost AU$7 million and take five years to build. However, it was finally completed in 1973 (nine years behind schedule) at a cost of over AU$100 million (AU$93 million over budget). Even though this project failed to meet the traditional project management success metrics, it is considered a huge success.[²]

Special Note

If you are already familiar with PMI’s credentials or if you are not planning to pursue certification just yet, that’s okay. Feel free to jump to chapter 3. You can always come back to chapter 1 and chapter 2 as a reference when you are ready for more information regarding exam eligibility, PMI credentials, or exam information.

Introduction to the Project Management Institute

A lot of us have been managing projects longer than we care to admit, and for the most part we have been doing pretty well, mainly going on basic instincts and gut feelings. However, the growing need to modernize has caused the world of project management to really take off. The 1950s marked the beginning of the modern era of project management as we know it today. This new era ushered in the need for a framework of globally recognized standard processes, tools, and methods. A small group of project management professionals recognized this need and in 1969 founded a nonprofit organization called the Project Management Institute (PMI). PMI began documenting a proposed set of project management standards it called a white paper (an authoritative guide) in 1987. Its intent was to standardize project management information and practices. The white paper published in 1987 later became the original A Guide to the Project Management Body of Knowledge (PMBOK Guide), published as a book for the first time in 1996. This guide became recognized as a worldwide standard and provided common processes, principles, Knowledge Areas, tools and techniques, and a global project management discipline. PMI saw the need to take this new discipline into the twenty-first century and make it official by creating an examination for project managers to validate their ability to understand the new standards. To do this, PMI launched the Project Management Professional certification exam in 1994. Since that time, the PMP credential has skyrocketed in popularity.

The History of PMI, How It All Began

As mentioned, the Project Management Institute was formed in 1969. That is when a couple of guys, Jim Snyder and Gordon Davis, met with a third person at the Three Threes Restaurant located in Philadelphia, Pennsylvania. Here, they shared their thoughts and ideas about a need for a forum for project managers to share information and discuss common problems. Further discussions resulted in the first formal meeting at Georgia Institute of Technology in Atlanta, Georgia, on October 9, 1969. The by-product of this meeting was the birth of the Project Management Institute. Shortly thereafter, articles of incorporation were filed in Pennsylvania, signed by five persons, who are officially recognized as the founders of PMI: James Snyder, Eric Jenett, Gordon Davis, E. A. Ned Engman, and Susan C. Gallagher, and a PMI was formed and incorporated later that year.

By 1984, it became clear that PMI would have more credibility if they added a certification process for project managers. As a result, the first credential PMI created was the Project Management Professional (PMP) certification. An exam was developed, and the first certification examination was conducted on October 6, 1984, at PMI in Philadelphia. Fifty-six individuals took the exam and 43 passed to become the first Project Management Professionals, and today it is still one of the most sought-after credentials in the world. By 2021, the number of PMPs exceeded one million worldwide and is still growing.[³]

PMI’s PMBOK Guide Then and Now

To help facilitate the need for a standard framework for project managers, PMI decided to publish A Guide to the Project Management Body of Knowledge (PMBOK Guide). The first PMBOK Guide was published to standardize the terminology and practices that were already accepted in the field of project management. It has since become the de facto international standard for project management.

Fast-forward to 2022 and the PMBOK Guide is now in its Seventh Edition, which is a major shift from its predecessor. The PMBOK Guide, Sixth Edition, which was published in 11 different languages and was paired with an Agile Practice Guide by PMI, was designed to address several new focus areas; together, these two publications addressed a much broader view of project management and helped align PMI to the more adaptive approach to managing projects by shifting to a hybrid model for managing projects.

The PMBOK Guide, Seventh Edition, represents a major shift in the way we manage projects. Instead of the Knowledge Areas, process groups, and a whole slew (49 in the Sixth Edition) of processes, PMI has expanded their approach to include two primary resources:

1. The Project Management Standards, which carries the American National Standards Institute (ANSI) designation, and

2. A Guide to the Project Management Body of Knowledge (PMBOK Guide), a framework for applying the standard based on the broad body of knowledge within the project management profession, which has moved from processes to principles (12).

Note

The 12 project management principles stated in The Standard for Project Management section of the PMBOK Guide, Seventh Edition, are built around a set of statements that guide the actions and behaviors of project management practitioners regardless of development approach. The principles summarize the what and why of project management.

Emerging Demand for Certified PMPs

To demonstrate the ever-increasing demand for certified PMPs, you need only look at the job postings for project managers. Only a few years ago, advertisements for project manager jobs stated, PMP certification a plus. Now they read, PMP certification required. This is true for public and private sector companies as well as government agencies that require their project managers to be certified. To meet this increased demand, project managers are getting serious about acquiring those important initials after their names. The number of PMPs has grown exponentially since 1998. When I certified in 1998, there were only 11,000 PMPs worldwide. In 2021, the number of PMPs exceeded 1,000,000—and this number continues to grow each month.

With the increased demand for skilled project managers and with the new perspective of how projects need to be managed, PMI expanded the role and focus of project managers across the globe. Their new vision is documented in The Standard of Project Management, PMBOK Guide, Seventh Edition, 2021.

PMI Global Standards

The size and depth of the extended view of project management is referred to as The Standard for Project Management. The Standard is considered a global perspective on the many changes in project management. The PMI Standards and PMBOK Guide make up the collective globally recognized view of project management.

What Is a Standard?

PMI global standards are the foundation of the profession, helping to ensure an organization’s knowledge and frameworks are up-to-date. A standard is a document, established by consensus and approved by a recognized body, which provides for common and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context. Developed under a process based on the concepts of consensus, openness, due process, and balance, PMI standards provide guidelines for achieving specific project, program, and portfolio management results. Practice guides provide supporting information and instruction to help you apply PMI standards. Practice guides may become potential standards and, if so, would undergo the process for development of full consensus standards.[⁴]

The good news is the changes to the PMBOK Guide from the Sixth Edition to the Seventh Edition resulted in a lot less detail and a lot less memorization required in order to use the guide for real projects or to prepare for one of the PMI exams. Additionally, the global perspective offered in The Standard for Project Management provided project managers with a wholistic view for best practices across a broad spectrum of projects. One of the big changes in the PMBOK Guide, Seventh Edition, is there is a noticeable increase in focus on people over process and less focus on planning with more emphasis attention on results and outcomes. This new focus is much more conceptual, with a focus on principles instead of specific processes. Gone are the pages and pages of repetitive Inputs, Tools and Techniques, and Outputs (often referred to as ITTOs), resulting in a big reduction in the size of the book. Less weight in the book bag or backpack is always a plus.

Further good news is that many projects still work best using the tried and true (T&T) traditional/predictive model, so we decided to leave a high-level view of the five process groups, including the project Knowledge Areas and some of the primary processes. Combining the T&Ts with the new focus on the three primary domains (people, business environment, and processes) and the importance of models, methods, and artifacts gives you the reader, a more complete foundation for improving your overall project performance and success. This is why we chose to leave a large portion of the PMBOK Guide, Sixth Edition, in this book.

Introduction to Processes, Process Groups, and Knowledge Areas

What Is a Process?

A process is a series of actions that bring about a result. It serves as a guide to what needs to be done to convert inputs (information) into outputs (often referred to as a deliverable project management plan document or training manual, or a set of blueprints). A process is often considered synonymous with a procedure; however, a process is usually viewed at a higher level that can include multiple procedures. A procedure usually defines a series of steps that, when completed, achieve a consistent and repeatable product or result. Many companies and organizations follow standard operating procedures (SOPs), which may be referred to as best practices to help ensure quality.

Processes also tend to overlap and interact in a variety of ways. Some processes run in series in which one process can build on the next. However, many processes are repeated within the different Process Groups, or phases of the project. The good news is that the project manager and project stakeholders usually get to decide which processes are appropriate for their specific project.

Project processes should be performed by the project team with input from stakeholder interactions. Project processes usually fall into one of two categories: project management processes and product-oriented processes (additional details will be provided in the appropriate chapters).

What Are Process Groups?

PMI has grouped processes into five Process Groups. They are: Initiating, Planning, Executing, Monitoring and Controlling, and Closing the project or phase. More details will be provided on processes, process groups, and how they map to Knowledge Areas according to PMI.

What Are Knowledge Areas?

A Knowledge Area is like risk management, scope management, schedule management, and so on. We will get into more details on Knowledge Areas as appropriate throughout this book.

The standards for project management include a set of certifications or credentials that the Project Management Institute has developed to help guide project managers toward more consistent and increased project success.

Introduction to PMI Credentials

PMI offers a comprehensive certification program for project managers with different levels of experience. The program supports a career framework in the project management profession. PMI’s credentials and professional development can help business professionals start, build, or advance their careers in project management, program management, scheduling, and risk management. For current information on PMI and their growing number of credentials, go to www.pmi.org.

PMI credentials establish your dedication and proficiency in project management. To attain one of PMI’s credentials, you must first satisfy the education and professional experience requirements. To better understand PMI credentials and the requirements needed to obtain certification, review the following definitions and then refer to the PMI.org website for the necessary requirements, project roles, and details. There are a number of different PMI credentials, and new ones are being added to the PMI portfolio along the way. Several of the credentials are specialized and all are not included in this chapter. For more information and to see any changes or additions to the PMI credentials, go to the www.pmi.org website.

Reasons People Pursue PMP Certification

PMP is most often viewed as the premier certification credential for project managers. When a PMI member audience in 2020 was asked why they were pursuing this credential, the majority of the responses were to further their knowledge (79%), to advance in their career (76%), and to increase prestige/respect (68%), with the next highest being to increase earning power (57%), and a combined 28% to either secure a new job or hold on to an existing job.

Another survey conducted by Krishna Kuma, CEO of Simplilearn Solutions, in 2021 shows the top six reasons why people pursue the PMP credential as cited by Elizabeth Harrin at girlsguidetopm.com.[⁵]

Six Reasons to Get Project Management Certified

Based on feedback from a number of professionals and PMP aspirants to hear what they had to say. Below are their six reasons why project management certification is in high demand in comparison to other professional certifications and noncredentialled PM.

1. PMP certification gives more weight to your resume—more and more organizations are making PMP a prerequisite for project manager recruitment. Having the credential and skills will make it easier to find a job as a project manager.

2. Clients demand it—increasingly, clients of most of the big companies demand that their projects are managed by PMP professionals, which gives the company the leverage and chance to be the one to handle prestigious clients.

3. PMP project managers get paid well in comparison to non-PMP project managers—on average PMPs earn 20% more than non-PMP credential holders.

4. Networking opportunities—it takes a village, and this is especially true in project management, where we learn from each other.

5. Improves the way you manage projects—PMP education and hands-on experience continues to improve your PM skills.

6. It helps you to be more aligned with the industry—PMP certification requires continuing education and recertification.

The PMP credential constantly gives us the edge project managers need to successfully manage projects and to stay up-to-date with the industry standards to become a strong leader in the field of project management.

There are a number of other credentials offered by PMI. To help you learn more about the PMI credentials, eligibility requirements, and how to become certified, continue reading the following information about PMI credentials.

PMI Credential Eligibility

To begin the process of becoming certified in one of the PMI credentials, you first need to determine your level of experience and eligibility. A good starting place is to refer to the latest PMI certification handbook for the certification in which you are interested available from www.pmi.org.

Note

To be eligible for the PMP credential, a candidate must meet the education and professional project management experience and it must have been accrued within the last eight consecutive years prior to application submission.

Ask the Expert

Q: Which credential is right for me?

A: It depends. The best way to determine the answer to this question is to look at your experience, your level of education, your current and future job roles, and your aspirations. Then, take a look at examples provided below and confirm by reviewing the latest credential requirements listed in the PMI credential handbook. While each credential is designed to stand alone (no one credential serves as a prerequisite for another), you can pursue multiple credentials over time. Each credential complements the others.

Examples of Credential Eligibility

To put this credential eligibility in perspective, let’s look at three people with different levels of experience to see which credential is right for each of them:

Joey has not led a project himself; he does, however, have a high school diploma, GED, associate’s degree, or the global equivalent and has over 23 hours of project management education. Joey has a good foundational understanding of the PMBOK Guide Process Groups, Knowledge Areas, Domains, and concepts. Joey should go for the CAPM-level credential. The CAPM focuses on the PMBOK Guide. With only 150 multiple-choice questions (compared to 180 in the PMP exam), it measures one’s ability to understand the project management fundamentals according to the PMBOK Guide, Sixth and Seventh Editions.

Suzy has over three years (36 nonoverlapping months) of project management experience, leading and directing project teams over the past eight years. When she adds up her hours managing projects, she has more than 4,500 hours, and Suzy also has a bachelor’s degree. She also has over 35 hours of formal project management education. Suzy has demonstrated her ability to think on her feet in real, live project situations and has a good grasp of project management principles, methods, and processes, according to the PMBOK Guide. Suzy should go for the PMP-level credential. She understands that the PMP exam focuses on the ability to apply sound judgment to project situations.

Suzy’s sister Mary currently has a high school diploma (no college degree). She does have a minimum of 7,500 hours of project management experience, leading and directing project teams over a five-year (60 nonoverlapping months) period in the last eight years. Mary also has over 35 hours of formal project management education, so she is also eligible to sit for the PMP exam.

Why Get Certified? What’s in It for Me?

Anything worthwhile, such as getting certified, requires commitment. A lot of people wonder, Why should I subject myself and my family to the extra time it takes to prepare for a PMI exam, especially in today’s demanding work environment? Most of us are already working long hours on several different projects at the same time and with less time for family and friends. PMI studies currently indicate a huge shortage of project managers worldwide. Many qualified workers with a ton of experience are working multiple projects and may not have the time to put in the extra effort to get certified.

The strength of PMI’s certifications is that they are portable and not tied to any single method, standard, or organization.

According to PMI Project Management Job Growth and Talent Gap in 2017 stated, Demand over the next 10 years for project managers is growing faster than demand for workers in other occupations. Organizations, however, face risks from this talent gap. The latest PMI-commissioned talent gap analysis by Anderson Economic Group (AEG) points to outstanding opportunities in jobs and career growth for project managers within the 11 countries studied. Through 2027, the project management-oriented labor force in seven project-oriented sectors is expected to grow by 33 percent, or nearly 22 million new jobs. By 2027, employers will need nearly 88 million individuals in project management-oriented roles. China and India will represent more than 75 percent of the total project management-oriented employment. This report shows that project managers are important contributors to productivity. Talent shortages in the profession can potentially create risks of nearly US$208 billion in GDP over the 10-year period in the 11 countries examined.[⁶]

Getting certified can be demanding, time consuming, and costly—so why put yourself through the extra work? The biggest reason, we believe, starts with the feeling you get when you walk out of the test center with a Congratulations, you passed printout in your hand, knowing you reached a goal that millions of project managers are thinking about pursuing. A chill runs down your spine, and the smile on your face can be spotted a mile away. You want to tell the world, I have arrived. I passed the PMI exam! Then come the real benefits. You will be able to talk the talk (know a common language to be able to communicate with project managers on a global basis) and walk the walk by being able to apply standard and proven processes on global projects.

Your family and friends will be proud of you because they know the time and energy you put into studying for the PMI exam. Your boss and coworkers will admire your commitment and achievement. Some companies even reward employees who rise to the level of certification with recognition bonuses, salary increases, and promotions for their dedication.

Benefits of Achieving PMI Credentials

PMP Benefits

PMP certification is globally recognized, one of the most popular, and valuable credentials for project managers across all industries. This certification shows that you have the experience, training, and competency to lead and direct the project. This recognition is seen through expanded marketability to employers and a higher