Identifying The Difference Between PgMP® vs PMP®

With so many certifications existing in the spectrum of Project Management Institute (PMI), it’s no wonder that candidates are overwhelmed by the selection of credentials they need for their career. It’s not all about which certification has more value, but rather which certification caters to the preference of an individual. Granted, these certifications have received the exposure that they deserved, but this article will focus solely on the most common and probably most coveted certification in different types of industry: Project Management Professional ( PMP )® and Program Management Professional ( PgMP )® certifications. The difference between PgMP® vs PMP® is wholly different, yet similar. Different in terms of features and target aspirants and similar in terms of which type of avenue they are applied, as well as some of the processes that come with it.

Before asking yourself which certification works for you and gives you value, you have to understand their overall features first. This means understanding what project and program are and the certifications that they are connected with.

The Difference Between PgMP® vs PMP® are the roles and responsibilities of the individual taking it

Let us understand the two components that make up both the PgMP® and PMP® certifications—project management and program management.

Project Management

In the world of ideas, tasks, and business, a project is a temporary activity which its sole purpose is to make a product or service and delivering these results to the clients or stakeholders. A project begins and ends in a particular period and specific tasks or operations are designed to achieve a goal or an objective. Buildings, bridges, and dams—these are the few structures born out from projects. They all undergo different project processes in order to be built successfully for public or private usage.

Now the process for this is called project management. It is the implementation of skills, knowledge, and strategies of projects in order to meet the expected requirements. There are five stages of project management and these are: initiating, planning, executing, monitoring and controlling, and closing.

The project manager is the person in charge of such operations and he or she ensures that the projects implemented are successful and in good quality. Projects composed of teams working hard in order to meet the needs of the clients or stakeholders. The project manager distributes tasks for each team members and manages not only the team, but the constraints of budget, schedule, tools, and resources.

Program Management

A program, on the other hand, is a set of multiple projects operating together to achieve a clear business case. Unlike a project, a program is a group of interconnected projects and one project cease to function or operate if another project is missing. In other words, a project under a program cannot be separated since it won’t operate if it’s a single entity.

Program management is the process of managing multiple projects such as enhancing the organization’s performance. It is typically related to change management, business transitions, industrial engineering, and other related processes. A program manager oversees these program operations and he or she is main decision makers of all project structures. He or she governs the interdependencies involved in the projects. These projects have their own leaders, but the ultimate upper hand falls to the program manager who ensures resources are accessible for the teams in order to operate the projects.

Now that we are able to distinguish these two approaches, let us now determine the difference between PgMP® vs PMP® and their respective values for the certified candidates.

The Difference Between PgMP® vs PMP® falls on more than one spectrum

So what is the difference between PgMP® vs PMP® certification? Is it the exam? The process? The significance of one’s career? Yes, these are some of the elements that make PgMP® and PMP® distinct to each other. From requirements to processes, PgMP® and PMP® have both something to offer when it comes to their differences.

Requirements and Candidates

Both PgMP® and PMP® certifications require an exam, as well as the following qualifications in order for the candidate to proceed with the test. PMP® caters to experienced project managers while PgMP® inclines on professional program managers. Both certifications also help an aspirant to boost his or her career, as well as knowledge in each field.

PgMP® certification requires a highschool diploma or an associate’s degree, with 4 years of experience in project management and 7 years of experience in program management; a bachelor’s degree is also qualified for PgMP®, provided it is accompanied by 4 years each of experience in program and project management.

The PMP® certification is similar with PgMP® in terms of educational requirement, except for this certification an applicant needs 7,500 hours leading and directing projects, as well as 35 hours of project management education. For applicants with a bachelor’s degree, they need to have at least 4,500 hours leading and directing projects and also 35 hours of project management education.

Features

PgMP® certification has a longer process compared to PMP®. Even before PgMP® applicants take the test, they need to undergo a panel review and sometimes an audit where they document their project and program endeavors and have their supervisors or managers vouch for their claim. PgMP®’s requirements are more inclined to PMP®. On the other hand, PMP® is all about fulfilling the requirements for legibility. PMP® certification is four times less costly compared to PgMP®—due to the process, random audits, and maintenance, the latter requires more than just an exam fee. And even are both considered the most sought-after certifications in the industry, PgMP® is a more complex process to achieve, thanks to their several processes involved.

Choosing the Right One

Actually, there is no right one or the adage, “there can only be one”. You can actually have both! If you want to settle to PMP®, that’s fine. And if you want to go up and pursue PgMP® after, there is nothing wrong with that, too. At the end of the day, it’s all about your preference and your determination to steer your ship around to a new adventure of your career endeavor. These certifications provide you a set of advanced skill, knowledge, and capability — so why not grab all of them by the horns?

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Which Certification Is Right PMP® Or PMI-ACP® ?

PMP® Or PMI-ACP®? Needless to know whether you have come up with this dilemma or not! It’s a way too common these days. Almost 50% of people looking for professional certification are wondering which one to opt for in between PMP® and PMI-ACP®.

First and foremost it would be better if you list out your specific requirements prior deciding on the professional certification course.

As a PMP® manager your roles would entitle you to:

◈ Leader: Capability to Lead and direct projects.

◈ Control: Control and regulate all the aspects of the project for its sustenance.

◈ Manage Teams: Manage teams and cross functional teams for the completion of the project within the constraints of budget and time schedule allotted.

◈ Apply Knowledge: Have sufficient knowledge and experience of the specific methodology required for the project in hand.

As an agile practitioner your roles would entitle you to:

◈ Understanding Agile: Understanding of agile methodology and concepts

◈ Agile Practices : Work with project teams that are specifically devised for agile practices

◈ Management: Strive to achieve lean management

◈ Have Proficiency: Proficiency in utilizing agile tools and techniques

Now, if you have all ‘yes’ for one certification then you have your answer. However, it often happens professionals get confused even after underling the roles of both the certifications. They have ‘yes’ for both the certifications. This is where the juggling takes place.

What to do when there is a tie between both PMP® and PMI-ACP®. I have devised a little questionnaire for you. Score ‘1’ if you are affirmative in either PMP® or PMI-ACP®. This table is devised keeping in view the roles you wish to adhere to and aspire to play.

PMP	PMI-ACP
You monitor projects but you do not interact with complete team, you only interact with few set of people and manage project in organized environment.	You are leading team and interact with each team member on regular basis.
You only look at results which team produces, someone else is responsible to ensure that team produce the result.	You are responsible for your teams productivity, you are the one who sees the gaps and find solutions if team fails to produce desired results.
You do not get into details of how the software develops, you never bother about the build integration and coding issues.	You are responsible to ensure that your team usage right development practices so the productivity gets enhanced.
You are working on system integration projects where you have multiple team associated with you and your main role is to identify and solve dependencies.	You are working as Project Manager of development team of 10-15 size and your main role is to ensure delivery, and you do use agile values in making day to day decisions.
You need to prepare complex project planning and monitoring reports which goes to management at frequency for review- the documentations.	You do prepare status reports but they are not that complex, they goes to management but management also connected with you and they do discuss status with you when they need details.
You need to interact with many stakeholders; these stakeholders have been managing project traditionally for a while.	Your management is moving towards agile, they want to be lean as soon as possible.

Whichever side scores more would be your option. If you score same on both the sides then my recommendation would be to opt for PMI-ACP® first since its new and highly advanced methodology. Once done with PMI-ACP® certification you can do PMP® which would be an add-on to your expertise and bring in more credits.

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Common Success Factors, Uncommon Success in Europe

Whether implementing Six Sigma in Munich or Manhattan, Paris or Prague, certain common factors are critical for success. Nonetheless, how one successfully applies these factors is culturally dependent.

Universal Critical Success Factors

Accepting the General Electric definition of Six Sigma as “completely satisfying customers’ needs profitably” means that Six Sigma requires a company-wide initiative to dramatically improve process performance. It means that every employee in a company learns a structured approach to managing improvement projects and solving problems using facts and taking the customer’s perspective. It means on-target performance with minimum variation. With those givens in mind, here are some of the factors of Six Sigma which are considered universal:

◈ Clear Project Chartering and Sponsorship: Defining the business case for the project, scope, baseline measures, resources required, potential risks and naming a senior executive as mentor/sponsor for the life of the project.

◈ Identification of Customers and Their Needs: Identifying who receives the outcome of the process and what is critical to quality from their perspective.

◈ Application of Measures: Describing the outcomes (Ys), process and input (x’s) measures upon which the project will focus.

◈ Analysis of Causal Variables: Using quantitative methods to define causal relationships and the vital few variables that impact the desired outcome.

◈ Improvement of Mean Performance and Sigma Levels: Reducing variability, not just average performance.

◈ Standardization and Application of Control Charts: Putting in place the tools to track performance on an ongoing basis.

Case studies of two European companies show how they successfully maintained these foundation elements yet adapted Six Sigma to their national and company cultures.

Siemens – Business Improvement with Six Sigma as Toolkit

Siemens is an example of a German multinational company that carefully thought through its approach to Six Sigma, with a focus on improving collective business performance. Important to Siemens was how Six Sigma fits with other improvement initiatives such as ISO 9000 or the European Foundation for Quality Management (EFQM) Business Excellence Model. Not one to take on the “flavor of the month,” Siemens carefully assessed what contribution Six Sigma could make and integrated it into a comprehensive, logical approach to improvement called Top+ Quality.

Figure 1: Six-Step Top+Quality Approach

Using the framework illustrated in Figure 1, Siemens clearly spells out the responsibilities of senior managers as well as project leaders in business improvement. In Steps 1 through 3, senior managers identify in measurable terms the business benefits they want to achieve through quality improvement – reductions in non-conformance costs, improved benefits to customers or both. They use the results of benchmarking or EFQM assessments to help identify problem areas and set improvement targets. In identifying the drivers or levers of improvement, senior managers can select from them the ones best solved through Six Sigma (i.e., those related to processes or input variables)

Other improvement levers, for example, a customer database, are identified and addressed using different improvement methods. Where appropriate, Six Sigma projects are then clearly scoped, team leaders are assigned and training is linked to concrete actions – Steps 4 and 5. Senior management stays involved in two ways. As illustrated in Step 6, their job is to be sure the critical parameters related to Six Sigma and other improvement projects are defined, monitored and responded to accordingly. Here, Siemens makes the link to balanced scorecards which are used in many divisions. The supporting elements of the Top+Quality improvement circle also are the responsibility of senior management – devoting time and attention, making processes and improvement activities visible/transparent, selecting the right project leaders, and giving these leaders appropriate training and time to see their actions through to results.

The benefit of the Siemens approach is the top-down link to business improvement objectives, the distinction between process/input levers and other levers which are important but not suited for Six Sigma, and finally the highlighting of senior management’s role throughout the process. By positioning Six Sigma as a toolkit in a larger improvement methodology, Siemens concentrates on overall business improvement and effectiveness.

Ericsson – A Vehicle for Individual and Organizational Change

Ericsson is a Swedish multinational that is an example of a company Ericsson whose approach to Six Sigma balances the needs of the company with the needs of the individuals on whose support success depends. Because implementing Six Sigma often entails radical changes, receptivity to change – for an individual as well as an organization – is an important predictor of success. Clairy Wiholm, a Six Sigma deployment manager for Ericsson, researched the variables that influence an individual’s readiness for change. Figure 2, provided by the Ericsson Quality Management Institute, outlines these elements of change capability.

Figure 2: Elements of Change Capability

Having defined and validated the elements of change capability, the Ericsson team leading the Six Sigma implementation could measure and help prepare those for whom Six Sigma is an appropriate improvement approach. Wiholm and her colleagues stress that it is not important that the entire population in a given business unit be “fit for change.” As depicted in Figure 3, there will be a normal distribution in people’s reaction to change.

Figure 3: Change Reactions

By making the topic of change explicit, a number of critical questions were discussed and addressed: What is a given business unit’s average change capability? What profile do the business leaders have? How can the 20 percent who are early Six Sigma adopters help show the majority who “go with the flow” that there is something in it for them? These are issues critical to when and how each business unit embraces Six Sigma. Once a business unit has decided to proceed, modules of the Six Sigma training specifically help participants understand why they react to change as they do, and help them become more fit for change, thereby increasing the chances of their success in Six Sigma.

In addition, because Ericsson recognizes the need to engage on the individual level, it designed its Six Sigma training with an opportunity for “contracting” between project leaders and their managers. The manager of each participant in a Six Sigma Black Belt course attends one day during the first week of training. This gives time off-line for the manager to clarify a number of critical elements – why the person was selected, why the project was chosen, how the success or failure of the project will affect the individual’s career. Likewise, the project leader can negotiate for the time needed to work on the project assignment and the support he/she will need from the supervisor. Particularly in companies where Black Belts are balancing project work with operational responsibilities, contracting for time to work on assignments is vital to the success of Six Sigma.

Ericsson demystified change in measurable and practical terms. By weaving change management modules and contracting sessions into Six Sigma training Ericsson significantly increased the probability of success.

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Distinction between ITIL and PMBOK

ITIL (formerly an acronym for Information Technology Infrastructure Library) is a set of detailed practices for IT service management (ITSM) that focuses on aligning IT services with the needs of business. In its current form (known as ITIL 2011), ITIL is published as a series of five core volumes, each of which covers a different ITSM lifecycle stage. Although ITIL underpins ISO/IEC 20000 (previously BS 15000), the International Service Management Standard for IT service management, there are some differences between the ISO 20000 standard, ICT Standard by IFGICT and the ITIL framework.

ITIL describes processes, procedures, tasks, and checklists which are not organization-specific or technology-specific, but can be applied by an organization for establishing integration with the organization's strategy, delivering value, and maintaining a minimum level of competency. It allows the organization to establish a baseline from which it can plan, implement, and measure. It is used to demonstrate compliance and to measure improvement. There is no formal independent third party compliance assessment available for ITIL compliance in an organisation. Certification in ITIL is only available to individuals and relates to their knowledge of the five books.

The Project Management Body of Knowledge is a set of standard terminology and guidelines (a body of knowledge) for project management. The body of knowledge evolves over time and is presented in A Guide to the Project Management Body of Knowledge (the Guide to the PMBOK or the Guide), a book whose sixth edition was released in 2017. The Guide is a document resulting from work overseen by the Project Management Institute (PMI), which offers the CAPM and PMP certifications.

Much of the PMBOK Guide is unique to project management e.g. critical path method and work breakdown structure (WBS). The PMBOK Guide also overlaps with general management regarding planning, organising, staffing, executing and controlling the operations of an organisation.

Distinction between ITIL and PMBOK

ITIL	PMBOK
ITIL is focused on Service Delivery and Service Level Management.	The PMBOK Guide is process-based, meaning it describes work as being accomplished by processes
ITIL advocates that IT services must be aligned to the needs of the business and underpin the core business processes. It provides guidance guidance to organizations on how to use IT as a tool to facilitate business change, transformation and growth.	The Project Management Body of Knowledge (PMBOK) is a collection of processes and knowledge areas generally accepted as best practice within the project management discipline. As an internationally recognised standard (IEEE Std 1490-2003) it provides the fundamentals of project management, irrespective of the type of project be it construction software, engineering, automotive etc
ITIL Version 3 framework defines five phases of IT Service Management Lifecycle. These are part of the ITIL Version 3 Core publications. They are: Service Stategy Service Design Service Transition Service Operation Continual Service Improvement	PMBOK recognises 5 basic process groups and 9 knowledge areas typical of almost all projects. The basic concepts are applicable to projects, programs and operations. The five basic process groups are:The five basic process groups are: 1. Initiating 2. Planning 3. Executing 4. Monitoring and Controlling 5. Closing
There are mainly four IT functions as per the ITIL Version 3 framework. They are: Service Desk IT Operations Management function	Processes overlap and interact throughout a project or phase. Processes are described in terms of: Inputs (documents, plans, designs, etc.), Tools and Techniques (mechanisms applied to inputs) & Outputs (documents, products, etc.). The nine knowledge areas are: 1. Project Integration Management 2. Project Scope Management 3. Project Time Management 4. Project Cost Management 5. Project Quality Management
Application Management Function Technical Management Function	6. Project Human Resource Management 7. Project Communications Management 8. Project Risk Management 9. Project Procurement Management
ITIL describes the ideal end state that an organisation would like to achieve.	Much of PMBOK is unique to project management e.g. critical path and work breakdown structure (WBS).
ITIL focuses on the lifecycle of services.	PMBOK focuses on the lifecycle of projects.
The decision as to undertake a project will be made as a result of ITIL Service Strategy and Service Design	The project team may then use PMBOK best practices for accomplishing the goal, objective or output identified during Strategy and Design
ITIL is specific to IT only.	PMBOK project management can be applied to any domain, such as Civil Engineering Construction or Public Sector or IT
ITIL addresses how IT organisations as a whole should operate.	PMP addresses how individual projects within the organisation should be executed.
By taking a larger view of services in the organisation as a whole via a lifecycle approach, ITIL sets out to examine service strategy, service design, service transition, service operation, and continual service improvement.	PMP applies to projects throughout the entire organisation not just IT. The PMP framework, focusing on effective execution of projects, can be applied to any area of any organisation
Take, for example, an organisation that is building and deploying an email service – on one level, ITIL will evaluate what is needed.	PMP will then take this information and further break it down into easier-to-manage increments.
ITIL provides a Body of Knowledge for managing IT Operations which are repetitive in nature.	PMBOK provides a Body of Knowledge (BOK) for managing Projects which are a “temporary endeavor” in general
ITIL Version 3 has 23 processes and 4 IT functions	The latest PMBOK 4th edition has totally 42 processes for the Project Management Body of Knowledge
The UK Office of Government Commerce (OGC) is responsible for the management and distribution of materials on the ITIL framework	In the US, the Project Management Institute manages the PMP certification. The PMP certification is based on content contained in the Project Management Body of Knowledge (PMBOK), a book published by the PMI

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Prince2 Processes

A process is a structured set of activities designed to accomplish a specific objective. PRINCE2 has activities for Starting Up a Project, running a project, and many others. It groups these into processes.

PRINCE2 is a process-based approach for project management. There are 7 processes that guide you through the project, and each provides a set of activities. These activities help to direct, manage and deliver a project, and are described in the PRINCE2 manual. Like any process, a PRINCE2 process takes one or more inputs, acts on them, and provides defined outputs.

The 7 PRINCE2 process are:

◈ Starting Up a Project (SU)
◈ Initiating a Project (IP)
◈ Directing a Project (DP)
◈ Controlling a Stage CS)
◈ Managing Product Delivery (MP)
◈ Managing a Stage Boundary (SB)
◈ Closing a Project (CP)

1. An Overview of the Processes

As mentioned earlier, there are seven management processes in PRINCE2. Each process is the responsibility of one of the management levels in the project organization, meaning the Project Board, Project Manager or Team Manager.

1.1 Directing a Project Process

Directing a Project is the responsibility of the Project Board. It runs from the start of the project until its end. Note that the Starting Up a Project process happens before the project starts. During this Directing a Project process, the Project Board authorizes project stages and manages the overall project by using the management style Management by Exception.

1.2 The Starting Up a Project Process

This is the responsibility of both the Project Manager and the Executive. This is the very first process and is, in fact, known as the Pre-Project process, referring to the fact that it occurs before the project starts, as the project does not start until the Initiation Stage begins. In this process, the reasons for the project are established, the project management team is assigned, and a Stage Plan is created to run the Initiation Stage.

1.3 The Initiating a Project Process

The Initiating a Project process is the process that defines the Project Product, product quality, project timeline and costs, risk analysis, and commitment of resources, and assembles the PID (Project Initiation Documentation). This is also the process where the Project Plan is created and the Business Case for the project is finalized.

1.4 The Controlling a Stage Process

The Controlling a Stage process is where the Project Manager does most of his work. The Project Manager watches over the work, takes corrective action, observes changes, and communicates with stakeholders, which includes reporting. Each action can be repeated many times by the Project Manager until the stage is complete. The project is divided into stages for management and control efficiency. The Controlling a Stage process monitors each stage and is repeated for each stage in the project.

1.5 The Managing Product Delivery Process

Managing Product Delivery is the process where the planned products are created and it comes under the responsibility of the Team Manager. It is where the Work Packages are executed, the products get created, and work gets done. The Team Manager receives the Work Packages (which are a list of tasks) from the Project Manager, and delivers the completed and tested Work Packages back to the Project Manager.

1.6 The Managing a Stage Boundary Process

The Managing a Stage Boundary process has two main functions: (1) reporting on the performance of the existing stage and (2) planning the next stage. Therefore, the Project Board can check on how well the stage has done against the Stage Plan. In other words, this process evaluates the stage and prepares the plan for the next stage. The End Stage Report and Next Stage Plan are submitted to the Project Board.

1.7 The Closing a Project Process

The Closing a Project process covers the work of wrapping up the project and this process is the last part of the last stage. PRINCE2 suggests a number of activities to be done to prepare the project for closure, such as End Project Report, Lessons Learned Report and Acceptance Record.

The output of this process will be the basis for the Project Board’s confirmation for closure, as the project is closed by the Project Board in the Directing a Project process and not by the Project Manager.

2. Project Lifecycle

The following is a quick overview of the project lifecycle; the way processes are run through the management stages. The following figure summarizes the information.

2.1 Pre-Project

What happens before the project starts? This is known as Pre-Project (project has not started yet).

Someone, somewhere, at sometime has an idea or a need. This can be a business opportunity or something that is necessary to do for the company (e.g., a change in legislation like a CO2 reduction). This idea or need is the trigger for the project.

The first step that is normally taken is the creation of a project mandate document. This is why we say that the project mandate is the Trigger for the project. A project mandate can be a simple one-page note, an email, or a structured document based on a company project mandate template.

There are a number of Pre-Project activities to be done and these are referred to as the project start-up. PRINCE2 suggests a number of pre-project activities that should be done.

The main objective of the Starting Up a Project process is to verify that the project is worthwhile. The project mandate is expanded to a Project Brief, and a plan is created for the Initiation stage. The Starting Up a Project process is also about preventing poor projects from starting.

After this process is complete, The Project Board reviews the Project Brief and decides whether to initiate the project. This is the first decision that the Project Board takes.

2.2 Initiation Stage

This is the first Stage in a project and the activities to be performed for project initiation are contained in the Initiating a Project process. The main objectives of the Initiation Stage are to:

◈ Define the Project Product quality, project timeline, costs, risk analysis and commitment of resources, and then assemble the Project Initiation Documentation (PID). The PID contains almost all of the project information to date, including the Project Plan.
◈ Create a detailed Business Case, document the benefits and prepare a Benefits Review Plan that will describe how and when Benefits will be reviewed.
◈ The Project Plan is a high-level plan for the whole project. A Stage Plan is also created for the first delivery Stage Plan (in the Stage Boundary process), which is a lot more detailed.

At the end of the Initiation Stage, the Project Board will receive the PID and decide whether to authorize the project or not. In simple terms, this means that the Project Board will decide (Yes or No) to allow the project to start. If yes, the PID is baselined so it can be used in the future to compare the project objectives with the current situation.

2.3 Next Stage or Stages after the Initiation Stage

The Project Manager has day-to-day responsibility for the project on a stage-by-stage basis, and reports to the Project Board. The Project Manager does the following:

◈ Assigns work to be done (assigns work to the Team Managers).

◈ Checks that all deliverables have passed the required quality tests.

◈ Checks that stage is in line with Stage Plan.

◈ Checks that forecasts are within project tolerances.

◈ All these activities are done in the Controlling a Stage process.

At the same time the Project Manager maintains a number of documents, such as the Daily Log, Lessons Log, Issue Register, Risk Register, Quality Register and Configuration Items Record.

The Project Manager keeps the Project Board up to date about the progress of the project using the Highlight Report. For example, the Project Board may have agreed to receive a Highlight Report every two weeks from the Project Manager.

Work Packages are produced in the Managing Products Delivery process, and the Checkpoint Reports are used to keep the Project Manager up to date on a regular basis.

Towards the end of a stage in the Managing a Stage Boundary process, the Project Manager will request permission to proceed to the next stage and will have to provide the following information to the Project Board: Updated Business Case, End Stage Report, and Next Stage Plan.

The Project Board will use the information provided by the Project Manager to assess the continued viability of the project and will make the decision to authorize the next stage.

2.4 Final Delivery Stage

During the final stage, the Project Manager will be accepting and getting approval for the last products to be produced, and will focus on decommissioning the project.

The Project Board will check that the recipients of the project's products are in a position to own and use them, and will also check that they will be supported after the project has stopped.

The Closing a Project process is always the last part of the last stage and it describes a number of activities that should be done, such as:

◈ Assessing the project by comparing it to the original plan
◈ Writing End Project Report
◈ Planning post-project benefits reviews
◈ Writing and delivering Lessons Learned Report

The Project Board will revise the data provided by the Project Manager and then can take the decision to Authorize Project Closure. The Project Manager can then leave the building.

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ITIL - Service Strategy Overview

Service Strategy helps to design, develop and implement service management as organizational capabilities and strategic assets as well. It enables a service provider to consistently outperform competitive alternatives over time, across business cycles, industry disruptions and changes in leadership.

Service strategy comprises of the following key concepts −

◈ Value creation
◈ Service Assets
◈ Service Provider types
◈ Service structures
◈ Defining the service market
◈ Developing service offerings
◈ Financial management
◈ Service portfolios
◈ Demand management
◈ Return on investment

Strategic Assessment

Before crafting service strategy, a provider should first take a careful look at what it does already.The following questions can help expose a service provider’s distinctive capabilities −

◈ Which or our services or service verities are the most distinctive?

◈ Which or our services or service verities are the most profitable?

◈ Which of our activities in our value chain or value network are the most different and effective?

Factors in Strategic Assessment

Here are the key factors that play important role in strategic assessment −

Sr.No.	Description
1	Strengths and weaknesses The attributes of the organization. For example resources and capabilities, service quality, skills, cost structures, product knowledge, customer relationship etc.
2	Business Strategy The perspective, position, plans and patterns are received from a business strategy.
3	Critical Success factors How will the service provider know when it is successful?
4	Threats and opportunities Includes competitive thinking. For example, is the service provider vulnerable to substitution?, or Is there a means to outperform competing alternatives?

Value Creation

Service strategy defines a unique approach for delivering better value. According to customers service consist of two elements −

◈ Utility

◈ Warranty

Utility

Utility is perceived by the customer from the attributes of the service that have positive effect on the performance of task associated with the desired business outcomes. This is fir for purpose.

Utility is generally stated in terms of −

◈ Outcomes supported

◈ Ownership costs and risks avoided

Warranty

Warranty ensures the utility of the service is available as needed with sufficient capacity, continuity, and security. Value of warranty is communicated in terms of level of certainty.

Warranty is usually defined in terms of availability, capacity, continuity, and security of the utilization of the services.

Availability

It assures the customer that the services will be available for use under agreed terms and conditions.

Capacity

It assures that the service will support a specified level of business activity or demand at a specified level.

Continuity

It assures that the service will continue to support the business through major failures.

Security

It assures that the service provided by the service provider will be secure.

Service Assets

There are two types of service assets as listed below −

◈ Resources

◈ Capabilities

Resources

Resources are the inputs for production. The resources are transformed by management, organization, people and knowledge.

Capabilities

Capabilities refer to skills to develop and control the resources for production. The skills are based on knowledge, experience and information.

Service Provider Types

Service Provider can be broadly classified into three types as listed below −

Type I – Internal Service Provider

Type II – Shared Service Provider

Type III – External Service Provider

Type I Internal Service Provider

Internal Service provider refers to the business functions within an organization. Administration, finance, human resources, and IT service providers all comes under internal service providers.

Type II Shared Service Provider

In this, business functions such as IT, human resources, and logistics are consolidated into an autonomous special unit called a Shared Service Unit (SSU).

Type III External Service Provider

External service provider refers to the third party service providers. It can offer competitive prices and drive down unit cost by consolidating demand.

The Four Ps of strategy

The below mentioned Four Ps identify the different forms of a service strategy and are considered as entry points to service strategy.

1. Perspective

It describes a vision & direction and articulates the business philosophy of interacting with customer.

2. Positions

It describes the decision to adopt a well defined stance. It is expressed as distinctiveness in minds of customers. This means competing in the same space as others but with differentiated value proposition that is attractive to the customer. Whether it is about offering a wide range of services to a particular type of customer or being the lowest cost option, it is a strategic position.

3. Plan

A plan describes "How do we offer high value or low cost services?" or "How do we achieve and offer our specialized services?"

4. Pattern

It describes the organization’s fundamental way of doing things.

Services strategy processes

The following diagram expresses the different processes and their relationship in service strategy −

Strategy Management

This process involves four activities − definition of market, development of offering, development of strategic assets, and preparation for the implementation of the strategy.

Service Portfolio Management

Service portfolio defines all services that a service provider can provide. It helps to control service management investments throughout an enterprise and actively managing their value.

Business Relationship Management

This process deals with establishing good relationship between service provider and customers by ensuring that appropriate services are developed to meet customer’s needs.

Demand Management

This process maintains balance between consumption of services and their delivery.

Financial Management

Financial management helps to determine all the costs of IT organization. It can serve as a strategic tool for all three kinds on service provider types − internal, external and shared service provider.

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Project Management vs Program Management vs Portfolio Management

These are very important topics from a PMP exam point of view and you are going to see some questions on these topics in your exam; therefore, make sure you understand these topics well.

Okay, let’s get started.

Project

“A project is a temporary endeavor undertaken to create a unique product, service or result.”

So, you can say that a project is temporary in nature, i.e. once the project achieves its objective its existence comes to an end, and the objective of a project is to create a unique product, or develop a system to provide you any service, or is the result of any task.

For example, let’s say that you have been given a project to set up a call center for a company that they can use to provide support service to their customers. You start the project, set up the call centre, and hand it over to your client. Now your client is ready to provide support service to their clients.

It is not necessary for your team members to be located in one place; sometimes your project team may include members located outside your geographic location.

Please note that once you hand over the end product to the client, your project will be completed and you will close the project. Moreover, since the nature of the project is temporary, your project team members will be separated once the project is completed.

Project Management

Project management is the process that helps projects achieve their objectives. These processes include initiating the project, developing the plan to execute the project, executing the project according to the approved plan, controlling the project activities throughout its lifetime, and finally handing over the output of the project to the client, and closing the project.

Simply put, project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

Program

A program is a group of related or similar projects managed in a coordinated way to get the benefits and control not available from managing them individually. This means that in a program you will have multiple projects which are either similar or related to each other.

For example, let’s say that you have two projects: the first project is to construct a school building and the second project is to construct an office building. Since these two projects are similar in nature, you will keep them under a program.

Program Management

Program management is defined as the centralized coordinated management of a program to achieve its strategic objectives. In program management, you only manage the interrelated or interdependent projects as a group to achieve the desired result.

The objective of program management is to optimize the utilization of resources among projects and reduce the friction or constraints so as to increase the organization’s performance.

The Difference between Project Management and Program Management

The following are a few differences between project management and program management:

◈ In project management, you manage one individual project while in program management you manage multiple similar or related projects.
◈ A project can be a part of a program but a program cannot be a part of a project.
◈ Program management addresses the management of project management. It helps you set the project management processes and measure the project results.

The Benefits of Program Management

The following are a few benefits of program management:

◈ Less conflict among projects
◈ Optimal utilization of resources
◈ Resource constraints are minimized
◈ Better communication and coordination among projects
◈ Improves organization’s performance

Portfolio

Portfolio refers to a group of related or non-related projects or programs. A portfolio can consist of multiple programs or multiple projects without having a single program. A portfolio can have multiple non-similar projects without having a program, because two or more non-related projects will be managed under portfolio management. Conversely, in program management only related projects are managed.

For example, let’s say that you have three projects: the first project is to construct a building, the second project is to conduct research to find the impact of motor pollution on the environment, and the third project is to set up a call center.

How you are going to manage these projects?

You will manage these projects by keeping them under a portfolio, because all three projects are neither related nor similar to each other.

Portfolio Management

Portfolio management has a bigger scope and objective than program management.

In portfolio management, there is a centralized management whose job is to identify, prioritize, and authorize the projects or programs. This centralized management controls and manages the projects or programs to achieve the organization’s strategic business objectives.

Please note that, although portfolio management sets the priority of the projects or programs in a group, it does not oversee any individual project or program.

The Difference between Portfolio Management and Program Management

The following are a few differences between portfolio management and program management:

◈ In program management, you manage similar projects, while in portfolio management you manage non-similar projects or different programs.
◈ The scope for program management is larger than the project scope, and the portfolio has an organization-wide scope which changes with the strategic objectives of the organization.

The Benefits of Portfolio Management

The following are a few benefits of portfolio management:

◈ Optimal allocation and utilization of resources among projects or programs
◈ Provide constant support to projects or programs
◈ Fewer conflicts and better communication among projects or programs
◈ Better coordination among projects or programs

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Best Practices in Project Portfolio Management

Maintaining competitive advantage in a world of rapid change and constant disruption is vital to organizational success. Mature portfolio management practices are needed to drive innovation while remaining aligned with strategic goals.

But who is responsible for initiating tomorrow’s projects today?

Project portfolio managers and leaders are needed to bridge the gap between strategy and implementation. By organizing a series of key projects and initiatives into a single portfolio, business professionals can streamline data collection, evaluation techniques and the projected level of risk and its impact on the overall portfolio and the business.

By utilizing project portfolio best practices, these leaders can centralize management of all projects and align them with the company’s strategic objectives.

What is Project Portfolio Management?

Project portfolio management (PPM) is a process that allows organizations and leaders to see the big picture by analyzing the entire portfolio and its potential impact on the organization.

When implemented, project portfolio managers should be able to successfully understand the projected return on investment and all details related to the project including risks, budgets, resources, tasks, timelines and goals.

Not only is proper management needed to help grow the organization, but poor project management can cost companies millions. According to the 2017 Study Pulse of Profession, organizations waste an average of $97 million for every $1 billion invested.

Implementing best practices can help managers stay on track and stay ahead of any issues that could cost the company time, money and resources.

Project Portfolio Management Best Practices

Identify Organizational Goals and Overall Business Strategy

Understanding your company’s goals and strategy will provide a clear understanding of what the project portfolio should achieve and will ultimately help you develop an action plan. Common pitfalls occur when a project is rolled out without a business case.

Organize Project Distribution

Managers and leaders should prioritize projects according to the company’s top concerns. For example, if your organization’s main focus is on leveraging technology to enhance customer experience, projects related to that goal should be shuffled to the top of the list and be cohesive within the portfolio.

Clarify the Scope and Mission

To ensure business alignment, map out project requirements, objectives and scope during the concept phase of a project’s life cycle. Be sure to also clarify project owners and document all facets of individual projects and the project portfolio including deliverables, standards of performance and limitations.

Create Clear Evaluation Criteria

Developing specific project evaluation criteria will ensure your organization can easily review, evaluate and authorize projects. Questions that may help in developing some clear, universal criteria include:

◈ How does this project drive business goals?
◈ What is the expected tangible outcome?
◈ Can this be achieved by a project already in motion?
◈ What resources are needed to complete this project?
◈ What are the risks associated with this project?

Develop Risk Management Strategy

As a project portfolio manager, creating a risk-return profile will provide organizational leaders with the information needed for consideration of risk as well as the reward of a project portfolio. Risks need to be identified, assessed and managed in relation to the overall portfolio, not just in comparison of projects side by side.

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Top 12 Project Management Certifications for 2018

Top project management certifications

1. PMP: Project Management Professional

The gold standard in project management certifications, the Project Management Professional certification is a rigorous test that covers absolutely everything you need to prove your knowledge and skill in managing the "triple constraints": time, cost and scope. The Project Management Institute (PMI) is this credential's parent organization, and works continuously with businesses and academia to ensure relevance for the certification.

Organization: Project Management Institute

Price: Computer based exams are $405 for PMI members; $555 for non-members. Paper-based exams are $250 for PMI members; $400 for non-members.

Requirements: Four-year secondary degree plus three years of project management experience, 4,500 hours leading and directing projects, and 35 hours project management education OR a high-school diploma, five years of project management experience, 7,500 hours leading and directing projects, and 35 hours of project management education.

2. CAPM: Certified Associate in Project Management

The Certified Associate in Project Management is the precursor to the PMP certification and is also administered by the PMI. For professionals without a college degree, or with only rudimentary project management experience or those who want to achieve their PMP certification in steps rather than all at once, the CAPM is a stepping-stone to the more rigorous PMP.

Organization: Project Management Institute

Price: $225 for PMI members; $300 nonmembers

Requirements: High-school diploma, associates degree or equivalent and at least 1,500 hours of project management experience OR 23 hours of project management education.

3. CSM: Certified ScrumMaster

The use of agile methodologies has become the standard in IT organizations, so it's not surprising that IT practitioners uniquely qualified to manage projects in agile environments are in high demand. While there are different Scrum master certifications available, the Certified ScrumMaster (CSM) from Scrum Alliance is a great jumping-off point for project managers getting started as Scrum practitioners. The Scrum Alliance, the parent organization for this credential, is a nonprofit organization that encourages the adoption of scrum and agile practices, promotes user groups and learning events, and provides resources for professional development. The organization boasts more than 450,000 certified practitioners worldwide.

Organization: The Scrum Alliance

Price: ScrumMaster training course cost varies by training provider, but is approximately $995 to $1,395

Requirements: General familiarity with scrum; completion of a two-day Certified ScrumMaster training course.

4. CompTIA Project+ certification

This entry-level certification is roughly on par with PMI's CAPM credential, though the requirements are less stringent. CompTIA's Project+ solicits feedback from the entire computing industry, government representatives, research institutions, academia and independent experts to design the certification.

Organization: CompTIA

Price: $285

Requirements: One year of experience managing, directing or participating in small- to medium-sized projects is recommended.

5. PRINCE2 Foundation/PRINCE2 Practitioner

Projects in Controlled Environments (PRINCE2) is most well-known overseas, especially in the U.K. and its government entities. The PRINCE2 certifications are delivered by the ILX Group and focus on directing, managing and delivering projects across all phases, pre-project, initiation, delivery and final delivery.

There are two primary qualifications, PRINCE2 Foundation and PRINCE2 Practitioner. The Foundation certification is an entry-level credential that tests basic project management terminology and methodology, while the Practitioner certification tests advanced project managers who have already achieved PRINCE2 Foundation.

Organization: ILX Group

Price: Foundation: $200; Practitioner: $340

Requirements: PRINCE2 Foundation requires a PRINCE2 Foundation course; PRINCE2 Practitioner requires one of the following: PRINCE2 Foundation; Project Management Professional (PMP); Certified Associate in Project Management (CAPM); or an IPMA certification.

6. CPMP: Certified Project Management Practitioner

The EC-Council was formed after the Sept. 11, 2001, terrorist attacks to address issues of cyberterrorism and the information security of nations at large. The EC-Council's Certified Project Management Practitioner course is for project managers who want to benchmark their skills through hands-on experience and across various management techniques and tools necessary to successfully manage complex projects efficiently. The objective of the CPMP course is to add value to management professionals by developing managerial, leadership and technical skills required to make any project, small or complex, a success.

Organization: EC-Council

Price: $199 for exam voucher

Requirements: No prerequisites, but it is recommended that candidates attend a three-day preparation course.

7. Associate in Project Management

The Global Association for Quality Management (GAQM), which administers the Associate in Project Management (APM) — as well as a Professional in Project Management and a Certified Project Director certification — is a global, not-for-profit certification body that offers credentials across a variety of IT specialties. The GAQM's project management certifications are focused on a broad knowledge base and emphasize effective resource allocation, clear direction, adaptability to change, effective communication and assurance of quality deliverables at minimal risk. The APM program is designed for the entry-level project manager, or for those who want to start a career in the field.

Organization: Global Association for Quality Management

Price: $300

Requirements: GAQM body of knowledge study and e-course; no formal education or experience requirements.

8. MPM: Master Project Manager

The American Academy of Project Management (AAPM) has modeled the Master Project Manager (MPM) after the "professional licensure" model that many professions like pilots, engineers, doctors and lawyers follow. The AAPM focuses on professional project managers, but also includes those pros with business and technical management responsibilities.

Organization: American Academy of Project Management

Price: $300 for application, review, processing, review, initiation and certification.

Requirements: Three years of project management experience and training. Waivers are available for professionals holding a master's degree, with other qualified training and experience, the military or project management instructors.

9. PPM: Professional in Project Management

The Professional in Project Management (PPM) is a mid-tier project management credential from the GAQM. The GAQM's project management certifications are focused on a broad knowledge base and emphasize effective resource allocation, clear direction, adaptability to change, effective communication and assurance of quality deliverables at minimal risk. The PPM is targeted towards intermediate to experienced project managers who are involved in risk and crisis management, and who are involved in the day-to-day management of projects.

Organization: Global Association for Quality Management

Price: $300

Requirements: GAQM body of knowledge study and e-course; no formal education or experience requirements, but candidates should have at least some project management experience in order to pass the exam.

10. PMITS: Project Management in IT Security

The EC-Council’s Project Management in IT Security (PMITS) explores the complexities of managing an IT security project. The certification helps candidates reinforce their existing project management skills while tailoring them to the unique requirements of implementing and managing IT security within their organizations.

Organization: EC-Council

Price: $250 (PMITS courseware)

Requirements: At least two years of experience in information security and an educational background that shows a focus on security (bachelor's degree or higher preferred). Candidates may also opt to attend an EC-council training program before attempting an exam.

11. Certified Project Director

The GAQM's Certified Project Director certification is the credentialing body's highest-level project management certification. This designation is designed for experienced project managers who are involved in directing multiple, complex projects and programs. The program focuses on managing, budgeting and determining scope for multiple projects, multiple project teams, and assessing and mitigating interdependent risks to deliver projects successfully. The CDP program is only for those who have significant project management experience.

Organization: Global Association for Quality Management

Price: $300

Requirements: GAQM body of knowledge study and e-course; candidates must be familiar with principles and methodologies of project management and pass the PPM or equivalent exam.

12. CPM: Certified Project Manager (IAPM)

The International Association of Project Managers (IAPM) is a global professional association and certification body focused on the project management profession. The IAPM’s purpose is to promote research, development and practical applications of project management, develop standards and guidelines for both beginner and advanced project management training, and review and approve project management competencies within the profession.

There are four levels of certification within the IAPM, split into two disciplines, traditional project management and agile project management: Certified Junior Project Manager and Certified Junior Agile Project Manager; Certified Project Manager and Certified Agile Project Manager; Certified Senior Project Manager and Certified Senior Agile Project Manager; and Certified International Project Manager.  IAPM’s Certified Project Manager certification is for candidates with a foundational knowledge of project management, including the basics of planning, organization and implementation of various projects. The exam covers both the hard and soft aspects of project management.

Organization: IAPM

Price: The certification and examination fee depends on a candidate’s nationality; pricing is gauged based on country-of-origin’s GDP to ensure that any candidate can afford the training and testing. In the U.S., the certification and exam cost is $650, with a 20 percent discount for students, job seekers and active aid organization personnel, according to the IAMP.

Requirements: There are no prerequisites, but IAPM offers workshops through global training partners, or recommended literature for self-study. Once a candidate has completed the workshop or feels adequately prepared, they can take a self-test to benchmark their knowledge. Candidates must achieve a 65 percent on the exam to pass.

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PMP® vs. CAPM® Certification: What’s Best For You?

Global organizations are in dire need of skilled project managers. More than 2 million new project-oriented positions will need to be filled worldwide each year between now and 2027, according to a 2017 report by the Project Management Institute (PMI).

For those striving to grow their career in project management, gaining in-demand skills through a project management certification is your next step in enhancing your credibility and effectiveness.

Two Certificates: Unlimited Potential

The Project Management Institute offers two specialized certifications: Project Management Professional (PMP)® and the Certified Associate in Project Management (CAPM)®.

Both are credited with helping advance career potential. However, to determine which certification is best for you, consider your experience level along with your project management goals and intended career path.

Project Management Professional (PMP)®

PMP® certification is recognized around the world as a professional certification that demonstrates a project manager’s expertise and skills while providing individuals with a standardized, detailed set of project management best practices.

Benefits of PMP® certification include higher project completion rates and increased salaries, according to the PMI.

Ideal candidates

Experienced project management professionals leading complex projects and those who are responsible for all aspects of project delivery, including working with cross-functional teams.

Prerequisites for the PMP® Exam

◈ A secondary degree (high school diploma, associate’s degree or the global equivalent)
◈ 7,500 hours leading and directing projects
◈ 35 hours of project management education

OR

◈ Four-year degree
◈ 4,500 hours leading and directing projects
◈ 35 hours of project management education

Certified Associate in Project Management (CAPM)®

By earning a CAPM®, you are demonstrating to your team and employer that you are ready to manage larger projects, take on more responsibility and build on your project management skills.

Becoming a Certified Associate in Project Management will help you develop new job skills and knowledge and understand basic project management concepts, as well as how to apply tools and techniques to project management processes.

Ideal candidates

Entry-level project managers or those interested in a career in project management.

Prerequisites for the CAPM® Exam

◈ Secondary degree (high school diploma, associate’s degree or the global equivalent)
◈ 1,500 hours of project experience

OR

◈ 23 hours of project management education completed by the time you sit for the exam

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PMI Agile Certified Practitioner (PMI-ACP)

Professionals who enjoy the flexibility and power of agile methods will now be able to demonstrate their full capabilities through a formal certification process. The Project Management Institute offers a formal credential for agile users. As agile methods continue to grow throughout the global marketplace, the need for proficient agile professionals is great. The PMI-ACP (Project Management Institute – Agile Certified Practitioner) credential presents vibrant opportunities for professionals seeking certification with strong returns on investments. Consider the following:

Work Experience Counts

If you are already using agile and have current project management experience, then you meet the basic criteria for beginning the credentialing process. Classes that provide credit toward PMI-ACP credentials are conducted online by highly regarded industry professionals. If you are interested in obtaining agile training, PMI (Project Management Institute PMI.org) which sponsors the associated tests, details other offerings that will put you on the path to full PMI-ACP credentials. With its wide-reaching applications across industry-wide project management challenges, PMI-ACP credentials translate into more potential opportunities as more and more business settings continue to adopt agile methods.

Strengthening and Expanding Your Skill Set Builds Power

Seasoned project managers can tell you that to stay on top of the game, your methods have to be up to date and efficient. agile methods respond to the chaos of global business with successful project management skills that are resilient, powerful, and inclusive with regard to client participation. Project managers seeking an additional credential that will reward them with increased career possibilities would be wise to explore the PMI-ACP certification. Responding effectively to the unexpected and having the cutting edge skills to mitigate potentially catastrophic management scenarios is one of the things agile professionals deliver time and time again. The PMI-ACP credential allows a potential employer to recognize that you have passed the standardized test and completed the necessary coursework to be an industry leader in the application of agile methods in a diversity of business settings. PMI-ACP training can be that missing piece of the puzzle you have been looking for to secure the competitive advantage and increase your market value for many years to come.

Mobility

Through the PMI-ACP credentialing process, you will gain access to a strong network of other agile users and related professionals who represent an elite subset of project managers. Through mentoring, networking, and attending conferences you will be able to stay tuned into the future developments in the field while at the same time staying on top of current market trends. While taking courses, you will interact directly with industry leaders and be exposed to cutting edge technology, knowledge, and skills. With the growing numbers of industries seeking agile trained professionals, the opportunities extend beyond just agile project management into training, development, and other leadership roles that could also include travel, if that is something you desire.

Is PMI-ACP Certification Right for Me?

Agile methods are rapidly becoming analogous to best practice project management skills across industries throughout the global marketplace. With its dynamic applications, agile methods meet many of today’s project management goals. The PMI-ACP credential will prepare dedicated project managers with the knowledge, skills, and professional network to achieve great success within today’s rapidly changing business environments. With ongoing peer support through the professional association of PMI events and other networking opportunities, you will be able to further develop your area of expertise and directly impact a growing field with your expert knowledge.

As the international marketplace expands and savvy project managers respond to industry fluctuations, securing a knowledge base in a widely accepted specialty such as agile methods, is one way to stay a step or two ahead of your competition. Securing PMI-ACP credentials through a top-tier and regionally accredited program is one career development investment that holds great potential for impressive returns on investment for many decades to come.

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