The Value of PMI and Project Management Gary

The Value of PMI and Project Management Gary Klein Government Relations Specialist NIH Presentation August 12, 2009

What is PMI? Global Not-for-Profit Professional Association Founded by working project managers Members in 171 countries Global Standards 11 standards provide a common framework and language for projects across industries and regions Credentials 5 widely recognized credentials Based on both knowledge and work experience Educational Activities Continuing education for credential maintenance Accreditation of academic PM programs Registered Education Providers (REPs) 2

Advancing the Profession Research Career Development Ethics and Sustainability PMI Educational Foundation Advocacy and Outreach 3

40 Years of Growth 293, 416 Jan. 2009 PMI Membership 100, 000 10, 000 Founded 1969 4

Global Membership Join Locally, Connect Globally North America 69% EMEA 12% Asia Pacific 14% Latin America 5% 250 Chapters, 29 SIGs, 2 Colleges October 2008 data 5

Globally Recognized Standards 6

PMI Family of Credentials • • • Certified Associate in Project Management (CAPM®) Scheduling Professional (PMI-SP®) Risk Management Professional (PMI-RMPSM) Project Management Professional (PMP®) Program Management Professional (Pg. MP®) 7

Project Management Professional (PMP®) Project role: leads and directs project teams Eligibility requirements: Bachelor’s degree/global equivalent; 3 years experience leading teams; 35 hours project management education Steps to obtaining credential: application process + multiple choice exam Exam Information: 4 hours; 200 questions Fees: US$405 PMI Member; US$555 non-member Credential maintenance: 3 years; 60 PDUs 8

Why Become Certified? PMI credentials: Recognize your knowledge, skills and abilities Reflect achievement in your field Improve skills and knowledge Prepare you for greater job responsibilities Lead to career opportunities and advancement Can lead to salary increases Build confidence Greater recognition by peers and management Show your commitment to the profession Enhance the profession 9

Career Development A jumpstart for beginners Credentials Learning Networking Resources for career building Seminars. World®, e-learning PMI Leadership Institute Advanced tools for team leadership Career HQ, Path. Pro. TM 10

Research More than 350 publications Project Management Journal $14 M in research support since 1997 Biennial research conferences Researching the Value of Project Management 11

The Value of Project Management to Organizations 12

Value: Results “Project management provides hard value: saving wasted dollars and effort and mitigating the risk of wasting dollars. ” “The value of project management is tangible. It’s the structure behind the projects. We do better than industry benchmarks. ” “The feeling of control that comes from the PM processes is significant –- there is less overhead, less time needed/ wasted, and a greater focus on the benefits. ” All quotations from interviews in Researching the Value of Project Management 13

Value: Learning “What we have learned from the [project] has become the most valuable wealth of the company. ” "The project management framework has taken the company to the next level. It is a stepping stone to much bigger work, bigger clients. " “One thing we try to do is learn from each other, focus on lessons learned at the end of each project… the corporate culture leads to sharing and learning from others’ experience. ” 14

Value: Communication “Project management contributes to team building and co-ordination. It greatly improved work efficiency and customer satisfaction. ” "Implementing formal project management has allowed the company to put people where their passions are…. . . " “It gives them a sense of being connected to the enterprise… how [their work] relates to the larger operation and to the success of the organization. " 15

Project Management: Value Results + Learning + Communication = • Real business value • Real organizational value • Real strategic value 16

Value: Organizations Know It “ 80% of higher-performing projects use a certified project manager” 50% of project failure traceable to poor (or no) project management: Bad estimates/deadlines Scope changes Poor resource planning Larger organizations extend project thinking to program and portfolio management Price. Waterhouse. Coopers survey, 2007 17

Project Management: Value Use of project management principles leads to more than 21% improvement in numerous project metrics 38. 6% 37% 32. 8% 32. 5% 32. 1% 31. 9% 25. 6% 23. 8% 23% 22. 8% 21. 7% Source: Value of Project Management in IT Organizations survey, Center for Business Practices, February 2002 18

Trends in Project Management 19

Global Demand for Project Management • $12 trillion per year spent on fixed capital projects worldwide – 20% of global economy • Trillions more in projects for IT, new product and service development, entertainment/IP, NGOs • More than 20 million practitioners of project management • Yet trillions at risk due to shortage of trained practitioners 20

Challenges Facing The Profession Globally The Gap: Getting from Strategy to Execution • Need for understanding of integrated portfolios • Shortage of experienced project managers • Schedule and lifecycle compression • Increasing demand for both risk management and sustainability 21

Project Management in the Public Sector PM is not new to the U. S. public sector It plays a critical role in the success of many federal programs Its absence contributes to the failure and under-performance of other federal programs PM adoption in “pockets” of government 22

Project Management in the Public Sector Understanding the Challenges of PM in the Public Sector: PM not viewed as a needed discipline PM not useful/applicable to “what we do” Slow executive recognition & support Difficult converting “non-believers” Subject Matter Expert or PM? Lack of awareness and training 23

Future Trends in PM in the Public Sector 1. Accountability and Performance Expectations on the Rise 2. Effective Stakeholder Management Continues to Need Work 3. The Focus Is Changing from “Doing Work” to “Getting Results” 2008 Survey by Lou Pack and Troy Barker, ICF Consulting 24

Future Trends in PM in the Public Sector 4. The Role of the Project/Program Manager is No Longer Being Seen as Simply “Collateral Duty” 5. PMOs are Expanding Their Capabilities and Services http: //survey. icfsurveys. com/ppm 25

PMI’s Envisioned Goal Worldwide, organizations will embrace, value and utilize project management, and attribute their success to it. 26

Thank You www. pmi. org © 2009 Project Management Institute, Inc. All rights reserved. “PMI”, the PMI logo, "PMP", the PMP logos, "PMBOK", "Project Management Journal", "PM Network", and the PMI Today logo are registered marks of Project Management Institute, Inc. For a comprehensive list of PMI marks, contact the PMI Legal Department. 27