An Overview of Project Management Standards

The Most Important Project Management Standards Compared — Which Method Is Right for Your Organization?

Three classic project management standards currently shape the approach of professional project managers in companies and organizations:

• PMI — the standard of the American Project Management Institute,
• IPMA — or, in German-speaking countries: GPM — a methodology of the International Project Management Association —,
• PRINCE2, a standard widely used especially in the United Kingdom and the Netherlands.

All classic project management methods focus on detailed specifications, long-term planning, and structures. Yet even where certain practices converge to some degree, the methods differ from one another fundamentally in numerous respects. Because every project management method will have a far-reaching influence on project work and process design within an organization, choosing carefully is of essential importance for the success of project management. The method must align with both the needs and expectations of the client and the corporate culture.

PMI (PMBOK), IPMA, and PRINCE2 each reflect the project cultures of their countries of origin. Taken together, they cover the full spectrum between a closed and an open system, and between a numbers-based and a competency-based organizational culture.

PMBOK: Global Standard

The PMI method, based on the standardized processes and tools of the PMBOK® Guide, makes it possible to set the priorities, depth, and intensity of a project flexibly across its various areas depending on the situation — enabling tailored project management for the organization. The American-influenced PMI is characterized by a strong orientation toward monetary values and performance metrics as well as high scalability. The strong focus on scalable parameters brings a great deal of transparency to an organization, but it requires the disclosure of extensive data. In German companies, this can sometimes cause friction. The pros and cons of applying PMI must therefore be weighed carefully.

IPMA: German Thoroughness

One of the most widely used project management standards in German-speaking countries is the IPMA of the GPM. Like PMI, it is characterized by its toolbox nature. Numbers-based parameters play a subordinate role, and scalability is also less of a focus. At the heart of the method is instead the individual: the leader and the project participants, with their individual competencies, are placed front and center. The ability to adapt tasks and make competency-based decisions is most pronounced in IPMA.

PRINCE2: Proven Classic

Compared with the other project management standards, the English standard PRINCE 2 defines the roles of project staff, stakeholders, and leaders very precisely. It is a closed system with strict instructions that project managers and staff must follow exactly. Even at the top-management level, stakeholders must conform to PRINCE2’s requirements — which can create considerable potential for conflict. There is little room for individual team members to distinguish themselves. Although the standard comes with a high implementation effort, it also offers numerous advantages: thanks to the clear guidelines of the methodology, PRINCE2 projects have a great deal of built-in momentum — management only intervenes in exceptional situations.

In particular, companies in the information and telecommunications technology sector are adapting their project management practices in response to the high pressure to innovate as they develop new product categories. A hybrid approach that combines classic and agile project management principles is increasingly gaining traction. This allows for more flexible responses to ongoing change requests and can significantly shorten project duration. The Scrum method is increasingly being applied even in larger initiatives (see also the concept of “Scrum of Scrums”).

SCRUM — Agile Project Management as an Alternative or Complement to Classic Methods

The key priorities of agile project management — in contrast to the classic project management standards — lie with individuals and interactions, working products, and collaboration with the customer. Tools, processes, documentation, and contract negotiations, on the other hand, play a rather subordinate role. As the best-known agile project management method today, SCRUM relies on the shortest possible design phase followed by the regular delivery of functional, quality-assured intermediate products at short intervals. To achieve this, multiple short SPRINTS are conducted immediately after the project scope and initial requirements have been established. During each sprint, the requirements for the intermediate products are analyzed, followed by design, implementation, and testing. This approach enables rapid feedback among project participants as well as flexible adaptation of the implementation — and, where necessary, of the objectives.

Choosing the Right Method

The standard chosen for project management must necessarily fit the requirements and corporate culture of the client. Among other things, the following questions are helpful when selecting a methodology:

• Is an open organizational culture maintained, one based on trust?
• What leadership philosophy predominates in the organization?
• How is performance measured in the organization?
• Can the project goal be precisely defined at the start of the project?
• How process-driven are the projects?
• How significant are key performance indicators for the work within the project?

Certifications: GPM/IPMA, PMI/PMBOK, and APM/Prince 2

Project management has long become a common way of working in public agencies, companies, and organizations. Project staff and leaders with the most varied experience and qualifications put their methodological knowledge to work in the service of achieving goals — worldwide and across Germany. In the end, success is what counts. Recently, however, the professional profile of the project manager has come under closer scrutiny: what exactly distinguishes professional project personnel? How can one determine whether a project manager actually possesses sound knowledge of one of the recognized project management standards?

What initially appeared to be merely a new source of income for professional associations is becoming increasingly important for companies and project managers alike: the ability to have individual project manager competency tested and certified by an independent body. Advantages can be identified for both the companies and project clients as well as for the project managers themselves: clients can be assured that they have engaged a specialist with solid methodological knowledge. Better project outcomes and more efficient project processes can be expected. The company to which the project personnel belong, knowing the qualifications of its staff through certification, can set and document quality standards. This brings not only a boost to reputation and clear competitive advantages — it also enables more targeted personnel development internally.

Three professional associations currently offer the possibility of certification in Germany:

• The GPM (Deutsche Gesellschaft für Projektmanagement e.V.), which represents the German chapter of the globally active IPMA (International Project Management Association),
• the American PMI (Project Management Institute), and
• the APM Group (Association for Project Management Group).

Recognized trainers and institutes first qualify project managers in the respective methodology and prepare them for the corresponding examinations. However, the certification procedures of the individual associations differ both in methodology and in certification levels and costs. Their degree of prevalence and recognition also varies domestically and internationally. It is therefore strongly advisable to thoroughly familiarize yourself with the various procedures and their respective advantages and disadvantages beforehand.

GPM Certification

The certificate offered by the Deutschen Gesellschaft für Projektmanagement is the best-known of all project management standards in Germany. It comprises a total of four different certification levels, from the project office staff member — Level D — to the Certified Project Director with five years of experience in multi-project and program management — Level A. The process management standard applied by the GPM (ICB — IPMA Competence Baseline) not only describes project management knowledge areas but also provides a general framework of project management competency. The GPM certificate thus ensures a comprehensive engagement with all subject areas of project management, placing the qualification of the individual at the forefront. Internally, personnel deployment and development can be well anchored to the four-level certification system. On the downside, the certificate involves a high time commitment and fees that are comparatively higher than those of the other procedures. Certification is not mandatory.

PMI Certification

The Project Management Institute is the world’s leading professional association, which accounts for the certificate’s high international recognition. PMI certifies according to the process management methodology of the PMBOK® Guide. Certification is offered at three levels: beginners, students, and project staff members with a university degree and initial project management experience as well as basic knowledge of terminology and PM processes can obtain the Certified Associate in Project Management (CAPM) credential. Project managers with professional experience and sound knowledge of project leadership qualify for the Project Management Professional (PMP) certificate. Project managers with experience in multi-project management ultimately receive the Program Management Professional (PgMP) certificate. The training program is flexibly structured and reflects a process-oriented understanding of project management, which can clearly be seen as an advantage. Unfortunately, certification is only conducted at testing centers using a multiple-choice format. At PMI, the certification itself is the primary focus of the process.

PRINCE2 Certification

The project management method Prince 2, certified by the Association for Project Management Group, is used in more than 50 countries worldwide. The rights are held by AXELOS Ltd., formerly the Office of Government Commerce (OGC). Prince 2 stands for Projects in Controlled Environments and is used predominantly in the United Kingdom and the Netherlands. The APM Group offers two credentials: Foundation for beginners with initial experience and first knowledge of the terminology and processes of project management. Practitioner for those who make decisions in projects and report to the steering committee. The preparation effort for the Prince 2 certificate is quite low, and the organization of the certification procedure is kept simple as well. A further advantage is the separation of the course from the examination. A disadvantage is the one-dimensional examination process, which is similar to PMI’s.

From Theory to Practice

Good project management software takes into account the vast experience accumulated in the project management standards PMBOK and PRINCE2. Use a project management tools overview to benefit from this knowledge. Whether you want to align your processes with one of these frameworks, implement Scrum, work in a hybrid approach, or simply gain access to the know-how they contain: with Allegra, you move from theory to practice in no time!

Further Information

Read more about how to easily create a functional specification and get an overview of the key elements of project documentation. You will find a detailed comparison of the best project management software in our comprehensive review.