Will project management credentials survive a recession?

Knowledge based assessments are empirical. The person had sufficient knowledge to pass a defined test at a defined point in time. However, the passing of a knowledge based assessment such as PMP or, for that matter, an MBA only shows the person has a predefined level of knowledge. The disadvantages of knowledge based assessments are:

• There is no indication the person can apply the knowledge effectively in the workplace.
• The knowledge tested in any exam is only a portion of the overall domain knowledge.

Given the problems with either assessment process, assessing the relative value of a qualification is complex and differs depending on who makes the value judgement: an employer or an individual. The value of a qualification to an individual can be measured in at least three areas:
The advantage it offers in the job market;

• The recognition governments and other licensing authorities give to credential holders; and
• Its recognition by other entities offering higher qualifications through credits or advanced standing.

Employers and credentials

The value of a qualification to an employer is in part a function of the credentials reputation, and in part what this tells the employer about the credential holder. However the current state of development leaves some gaps:

• The PMP is a uniquely valuable industry based credential; but no single assessment is ever going to provide a guarantee of a person’s suitability for employment in a particular organisation. Being a PMP provides one point of assessment; the PMP holder had the knowledge needed to pass a difficult, quality controlled exam.
• Whereas the relative subjectivity of competence assessments lacks the clarity of pass/fail and is situational. Many of the current competency based certifications lack a rigorous testing of underpinning knowledge and there is no way of knowing if the demonstrated competence is transferrable.

To select the best candidate, employers also need to look to other aspects of a person’s overall capabilities as well as the credential they hold. But employing qualified staff helps lift the credibility of the employer in the market.

Looking five to 10 years into the future I expect the project management credential process will have change substantially to blend aspects of workplace assessment (competency) with the formal testing of knowledge. The PMI Program Management Professional (PgMP) credential is a start along this route; my prediction is most other credentials will follow.

However, don’t wait for the future! If you are in the job market today, or want to improve your prospects with your current employer holding a recognised industry credential is becoming essential. The biggest change we’ve noticed in the last decade is the general shift from the view that having a credential was a major advantage in the job market to the current situation where not having a credential has become a significant disadvantage. I’m not sure this is a good thing but it is the reality we all have to live with.

The choice in Australia is between PMP, PRINCE2 and RegPM. A few organisations have a preference for one of these, most seem to be unaware of the differences. So, if you want to advance your career in project management and increase your income the market has spoken: get a credential—you really do need to be certified if you want to be a project manager.