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PMP vs PRINCE2

If you are looking for a career in project management and want to excel your skills using a certification, you will find many courses. However, among all, PMP and PRINCE2 stand out from the crowd.

PMP stands for “Project Management Professional” and is awarded by the Project Management Institute (PMI), USA.

On the other hand, PRINCE2 Projects In Control Environment certification is provided by a training institute which is affiliated with any of the five examined institutes certified by AXELOS.

Differences between PRINCE2 and the PMP

Before you start reading the differences between these two prestigious certifications, please bear in mind that the objective of both certifications is to equip you with enough knowledge and technique so you can complete projects successfully, though the approach is a little different.

Fundamental Difference

The basic difference between the PRINCE2 and PMP is that PRINCE2 provides you with a methodology. It tells you how to proceed and complete the project. To help you achieve your objectives, it also provides you with templates that you can use or modify according to your requirements.

Conversely, the PMP provides you with a framework for project management. It educates you about the tools and techniques used in every situation and leaves the decision up you to select the best option.

Acceptance

Both certifications are equally reputed and globally accepted.

However, in terms of preference, PRINCE2 is more well-known in the UK, Australia, and Europe.

On the other hand, the PMP certification is more well-known in the US, Canada, the Middle East, and Asia.

Eligibility Requirements

The eligibility requirements for PMP and PRINCE2 are different.

PRINCE2 has three qualification levels and for each level, the eligibility requirements are different.

The first level is PRINCE2 Foundation. Anyone can acquire this qualification, and no experience or education prerequisites are required for this qualification.

The second level is PRINCE2 Practitioner. To apply for the PRINCE2 Practitioner exam you must have passed any of the AXELOS approved certification exams, for example, PRINCE2 Foundation, CAPM, PMP, etc.

The third level is PRINCE2 Re-Registration. To maintain your PRINCE2 Practitioner qualification, you must pass the Re-Registration exam within 3 to 5 years of passing the PRINCE2 Practitioner exam.

Applicability

Though PRINCE2 was initially adopted by IT industries, it was later updated to be universally accepted.

As of now, the principles of PRINCE2 are universal in nature so you can apply them to a project of any size or kind. It does not matter whether it is small or large, or whether it is a construction project, IT project, or a product development project.

Likewise, the PMP framework can also be applied to all industries and all kinds of projects.

The skills earned by obtaining any of these certifications are transferable to all industries.

Qualification Level

As discussed above, PRINCE2 has three qualification levels:

PRINCE2 Foundation
PRINCE2 Practitioner
PRINCE2 Re-Registration

PRINCE2 Foundation

This is the basic level qualification from PRINCE2. Here you can learn the basics of the PRINCE2 methodology and terminology.

To get this certification, you will have to pass a closed book exam. The exam consists of 75 multiple choice questions. The duration is 60 minutes and you must get 50% to pass the exam.

This qualification does not expire; it will be valid forever.

PRINCE2 Practitioner

If you are an experienced project manager and are managing projects in a PRINCE2 environment, you can try to obtain your PRINCE2 Practitioner qualification.

This qualification will give you an in-depth understanding of the relationships between the PRINCE2 elements, principles, themes, etc.

To apply for the PRINCE2 Practitioner exam you must have passed any of the certifications listed below:

PRINCE2 Foundation
CAPM
PMP
IPMA Level A
IPMA Level B
IPMA Level C
IPMA Level D

You can apply for this qualification if you are a project manager, program manager, project management consultant, project team member, etc.

This is an open book exam and you can use the official PRINCE2 manual. The exam consists of 80 multiple choice questions. The duration of the exam is two and half hours and you must get at least 55% to pass it.

This qualification is valid for 5 years. To renew your qualification, you will have to pass another exam called “PRINCE2 Re-Registration” within 3 to 5 years.

PRINCE2 Re-Registration

In order to maintain your PRINCE2 Practitioner qualification, you must pass the Re-Registration exam within 3 to 5 years of passing the PRINCE2 Practitioner exam.

Failing to do so will withdraw your PRINCE2 Practitioner status.

The PRINCE2 Re-Registration exam is also an open book exam where you can use the official PRINCE2 manual. The exam consists of 30 questions. The duration is one hour and you must get 17 questions correct or 55% to pass the exam.

Now we come to the PMP certification.

There are no qualification levels in the PMP exam. There is only one PMP, although the PMI offers many other certification courses which are different than the PMP exam.

Eligibility

The eligibility requirements for the PRINCE2 were already discussed above.

The three eligibility requirements for the PMP exam are as follows:

Education

You should be either a bachelor’s degree holder (or global equivalent), or a secondary degree holder (high school diploma, associate’s degree or global equivalent). The degree or diploma can be in any discipline.

Experience

If you are degree holder, you should have at least 4,500 hours (about 3 years) of experience leading and directing projects, and if you are a diploma holder, you should have 7,500 hours (about 5 years) of experience.

Training

You must attend 35 contact hours of formal project management training. This training can be obtained from either a PMI Registered Education Provider (R.E.P) or non REPs.

Examination

The PRINCE2 exam is conducted by training centers affiliated with any Examinee Institute. The exam details for the PRINCE2 exam are provided above.

The PMP exam is conducted by Prometric Centers. The exam consists of 200 multiple choice questions, and the duration is 4 hours. The passing mark for the PMP exam is unknown though it is widely believed to be around 70%.

The cost of the PRINCE2 exam is not fixed; it varies according to the institute and the country. The fee for the PMP exam is fixed because there is only one center that conducts the exam and you pay money directly to the PMI.

Validity and Renewal

The PRINCE2 Foundation certification is valid for 5 years. The PRINCE2 Practitioner qualification is valid for 5 years, and to renew it you will have to pass another exam called “PRINCE2 Re-Registration” within 3 to 5 years.

The PMP Certification is also valid for 3 years and to renew it further, you will have earn 60 PDUs every 3 years under different categories.

Which Certification Should You Select?

This is not really a difficult decision. If you live in a country where PRINCE2 is more valued and accepted, you should obtain that certification.

If you are living in a region where the PMP certification is in more demand, you should choose that.

However, if you ask me, I would suggest you go for both. If you are planning to get the PMP certification, after passing it you should at least try the PRINCE2 Foundation course.

And if you are going for PRINCE2, try to get PMP certified after attaining your PRINCE2 certification.

There is absolutely no harm in having both certifications, and in fact your skills will be greatly increased, you will perform more efficiently, and the chances of successfully completing projects will increase. Also, this will make you a more viable candidate in the PMP profession.

In fact, the PMI also recommends PRINCE2, as per the PMBOK Guide Sixth edition: “this standard is a guide rather than a specific methodology. One can use different methodologies and tools (e.g., Agile, waterfall, PRINCE2) to implement the project management framework.”

Likewise, PRINCE2 also recommends the PMP certification. You can also see that the CAPM and the PMP certifications are among the many pre-requisite for the PRINCE2 Practitioner exam.

This shows that these two certifications complement each other rather than compete.

Conclusion

Although PMP and PRINCE2 are different certifications and follow slightly different paths, their objective is the same, i.e. to complete projects successfully. Choosing a certification is totally personal and depends on the geographic location you are in and the certification’s demand.

If you intended to take the PMP exam, I suggest you at least gain a good understanding of the PRINCE2 methodologies after passing the exam. Likewise, you must read the PMBOK Guide after becoming a PRINCE2 Practitioner.

What are your thoughts about these two certificates? Which have you obtained? Please share your thoughts and comments in the comments section.

Ways to Increase Your Salary as a Project Management Professional

Top performing companies successfully complete 89 percent of their projects, meaning effective project managers not only impact the success of their company’s top initiatives—they enable better project performance overall.

Ninety-seven percent of organizations strongly agree that project management is critical to the success of their company, according to a survey by Pricewaterhouse Coopers. From seeing complex projects from inception to completion, project managers have the capacity to reduce company costs, increase organizational efficiency, and help generate higher revenue.

When it comes to project management, salaries can be rewarding, but also depend on several factors. Let’s take a deeper dive into how certifications, earning an advanced degree, specialization, and other factors can add more money to your paycheck.

Certification and Graduate Degrees

Those with a PMP certification earn 20 percent more than those without one. The median salary for project managers holding this certification is $111,000, versus a median salary for non-PMP holders at $91,000 across all industries.

The PMP certification demonstrates your proficiency in becoming a certified project manager. Earning one not only helps you enhance your salary, it demonstrates to employers that you have the skills, knowledge, and organization to successfully manage projects and teams. PMP certification is often preferred or recognized for promotions and career advancement.

The certification is earned through the Project Management Institute, a globally-recognized association that promotes collaboration, education, and research within project management. The organization also maintains international certification standards, credentialing, policies, and procedures.

In addition to certification, 34 percent of project management job postings prefer or require a graduate degree, according to a report from Burning Glass Labor Insight. A master’s degree in project management can equip you with the concrete skills you need to lead complex projects.

Specialization

Along with earning your PMP certification, you can further increase your salary depending on your specialization within project management. For example, you may choose to become a program manager or a portfolio manager.

Here’s how the three break down:

Project managers plan, direct, and close projects by determining responsibilities, creating an inclusive plan, and managing the budget. They typically make an average salary of $108,200.
Program managers execute several related projects in a collective way—also known as a program—to improve a company’s outcomes, and they command a median salary of $120,000.
Portfolio managers analyze an organization’s projects to help companies identify the best tasks, distribute the right resources, and improve project performance. They earn a median salary of $128,000.

Project Team Size

Team size also affects a project manager’s income. Depending on the size of the team, a project manager could earn an additional $20,000 per year in salary. According to the Project Management Institute, ranges include:

One to four people: $100,000
Five to nine people: $107,070
10 to 14 people: $111,000
15 to 19 people: $115,823
20 or more people: $120,000

Project managers also make 40 percent more if they are managing ventures that surpass $10 million.

Industry

Your chosen industry can have a significant impact on your earnings as a project manager. According to the Project Management Institute, project managers in the following industries report the highest median income in the nation:

Pharmaceuticals: $125,500
Agriculture, Mining, and Natural Resources: $120,640
Consulting: $120,000
Aerospace: $115,000
Engineering: $112,000
Information Technology: $110,000
Oil and Gas: $110,425
Government: $110,000

Project management salaries within the science, technology, engineering, and math (STEM) fields are rewarding due to the rapid growth and high salaries within the field. In fact, 93 percent of STEM jobs offer wages well above the national average, and the national median salary for all STEM positions is almost double the average wage for non-STEM roles.

Within the government, projects are more complex than other fields and often require specialized knowledge of particular software, making project management salaries higher than average.

Location

Where you choose to work can also affect your salary. This includes locations both within the U.S. and worldwide.

You can make up to $16,000 more depending on your location within the U.S.

Nationwide, project manager salaries are:

Miami: $83,615
Austin: $87,742
Chicago: $89,065
Boston: $91,440
Charlotte: $93,320
Houston: $93,927
Seattle: $94,841
New York City: $95,855
San Francisco: $99,748
Silicon Valley: $110,197

Keep in mind that cost of living varies with each city. For example, the cost of living in Seattle is 24 percent more expensive than the average city, while the cost of living in Austin is three percent lower.

In addition to the U.S., project managers earn the most in countries such as Australia, Switzerland, the Netherlands, Germany, and Canada. According to ProjectManager.com, they command a median salary of:

Canada: $95,140
Australia: $134,658
Switzerland: $133,605
The Netherlands: $103,274
Germany: $101,983

Where you choose to work can have a huge impact on earnings, in addition to certification and advanced degrees, specialization, project team size, and industry. Project managers should then consider a multitude of factors when looking at salary.

Source: www.northeastern.edu

13 Songs That Describe What it Means to Be a Manager

Being a manager is a tough job.

You want to get the most out of your people. You want your team to hit its goals. And it would be nice to also, you know, spend some small sliver of your day not thinking about work.

But it can all be overwhelming.

Well, we here at LinkedIn Learning have hundreds of courses to help you work through some of biggest challenges all managers face. But sometimes, sometimes before you learn, you just need to know you aren’t alone

And that’s where this post comes in. Because we are 99 percent certain the songs in this article are actually all about being a manager – so know that Cher has been there, too.

1. When you post an open role on your team.

Hiring the right people is such a big part of managing. So, every time you post an open role on your team, you aren’t just looking for the good.

You are looking for the great. Dare I say, the heroic.

2. When your team is running multiple high-profile projects at once.

It’s great when your team gets to work on a high-profile project. It’s even better when your team is working on multiple high-profile projects at once – what a chance to shine!

At the same time, that comes with some pressure as well. But don’t worry; we believe in you.

And so does Freddie Mercury.

3. When your best employee leaves the team.

On one hand, you feel good for them, as hopefully it’s for a better opportunity.

But, on the other hand, you’ll miss them. It’s okay, take a minute and acknowledge the pain.

4. When you want to connect with an employee, but they are keeping their guard up.

You want to connect with a new employee. But maybe they aren’t quite ready to let their guard down just yet.

It’s okay, it’ll happen eventually, we promise.

5. When someone unfairly criticizes one of your employees.

Because nobody puts baby in the corner.

6. When your team comes in under-budget.

Who doesn’t love cheap thrills?

7. When your once-antagonistic team starts to gel.

Pitch Perfect – one of the few cinematic masterpieces of our time – is the epic drama about a motley crew of girls who, at first, have their own fiefdoms and don’t collaborate well. But, after going through a lot, they come together to gel as a unified team.

Sound like your team? Then this is the collaboration for you.

8. When you make a mistake managing an employee and instantly regret it.

Had a night where you couldn’t sleep because you said the wrong thing?

Well, you aren’t alone. Every manager has been there. Just crank up the Cher and know it’ll all work out.

9. When you are dealing with an employee problem you don’t know how to solve.

All managers need help sometimes. We hope LinkedIn Learning can occasionally provide it :).

10. When an employee continues to struggle – but you still believe in them.

Maybe they are inexperienced, maybe they have low confidence, maybe they need to learn some new skills.

But you know they have the ability to do the role – and just want them to work with you, so they can prove it to the world.

11. When your team crushes its goals.

Your goals obviously can’t hold you — and nor can the ceiling.

12. When you see your coaching pay off as one of your employees is developing nicely.

Let out those tears of pride. You’ve earned it.

13. When one of your employees says “thank you.” And means it.

This doesn’t happen often. But, when it does, dang does it feels good.

What is a public-private partnership? Definition and meaning

A public-private partnership, also called a PPP, P3 or 3P, is a long-term cooperative agreement between a private company and the national or local government.

Public-private partnership arrangements have existed throughout history, but have become significantly more popular across the globe since the 1980s as governments attempt to obtain some benefits from the private sector without having to make the full privatization jump. In a PPP arrangement, private companies carry out aspects of government work.

According to the World Bank Group, public-private partnerships do not usually include turnkey construction or service contracts – these are classed as public procurement projects, or privatization of utilities where the public sector still has a limited ongoing role.

The PPP Knowledge Lab says the following regarding PPPs:

“A public-private partnership (PPP) is a long-term contract between a private party and a government entity, for providing a public asset or service, in which the private party bears significant risk and management responsibility, and remuneration is linked to performance.”

When the government is short of funds for a much-needed project, a public-private partnership, which benefits from an injection of money from the private sector, is a promising option.

The PPP Knowledge Lab adds that a private-public partnership encompasses several different types of contracts – there is not a standard, internationally-recognized definition of PPP. Different jurisdictions how their own unique terminologies to describe similar projects.

A growing number of nations are enshrining a definition of public-private partnerships in their laws.

Public-private partnership – the best ones

Governments have seen the greatest gains when the public-private partnership arrangements occurred as a result of competitive bidding.

When the private company’s main contribution has been to raise finance, governments have not fared so well. This is because governments can generally borrow money at cheaper rates than private entities can.

According to gov.uk, the United Kingdom was the first nation in the world to develop the concept of public-private partnership arrangements for public service projects. (Image: Adapted from gov.uk)

Critics say that governments only ask private companies to raise money when they do not want their public borrowing figures to rise.

In the majority of PPP cases, the private entity bears considerable risk and management responsibility, with remuneration (how much they are paid) linked to performance.

What isn’t a PPP?

In countries whose civil laws follow the tradition of the Code Napoleon, there is a difference between public contracts such as concessions and PPPs where the private company is delivering a service to the government in the form of bulk supply, such as a BOT (Build-Operate-Transfer) project for a water treatment plant, or the management of hospital facilities or other existing facilities for a fee.

In other jurisdictions, some specific sectors are excluded from the PPP definition, especially those sectors where there is an extensive private sector initiative or where extensive regulations exist.

In some nations, arrangements involving more limited risk transfer, including management contracts, are excluded from the PPP definition for institutional reasons. In such cases, the public authorities prefer to call them traditional procurement processes for goods and services. PPP Legislation and Laws has a summary of some sample laws.

Public-private partnership growth and decline

Europe:

From 1990 to 2009, almost 1,400 PPP arrangements were signed just in the European Union (EU), representing a capital value of about €260 billion.

Since 2008 – the onset of the global financial crisis – the EU estimates that PPP deals in the trading bloc have declined by over 40%.

According to a European Commission bulletin on PPPs, investments in public sector infrastructure are viewed as an important means of maintaining or boosting economic activity.

The European PPP Expertise Centre (EPEC) was set up to support public-sector capacity to implement public-private partnerships and share timely solutions to problems common across the EU in PPPs.

United States:

A 2007 survey found that two primary reasons for PPPs were expressed by US city managers:

Cost reduction, according to 86.7% of survey respondents.
External fiscal pressures, such as tax restrictions, according to 50.3%.

In a follow-up survey – Collaborative Service Delivery: What Every Local Government Manager Should Know -carried out in 2012, interest had shifted – the respondents believed that collaborative service delivery was ‘the right thing to do’ (86%) – other motivations in that survey included the need for leveraging resources (84%), better outcomes (81%), relationship building (77%), and better processes (69%).

Among the 2012-survey respondents, the provision of public services and utilities through contracts with private entities reached 18% – the peak – in 1977, and has since declined.

Twenty-two percent of local governments in the 2012 survey said they had brought back in-house one or more services that they had previously provided for their citizens through PPP arrangements.

Public-private partnership controversy

A frequently-mentioned problem with PPP arrangements was that private investors obtained a **rate of return that was greater than the government’s bond rate, even though all or most of the income risk related to the project was borne by the public sector partner.

** Rate of return is the ratio of an investment’s income over its initial cost.

In a PriceWaterHouse (PWC) report – Hanging in the Balance Sheet? – published in 2008, the authors argued that it was not fair to compare the private and public borrowing rates, because of the ‘constraints in public borrowing’, which could imply that public borrowing was excessively high, so PPP projects might be beneficial by keeping the government books free of additional debt.

Several Australian studies of early initiatives to promote PPPs in infrastructure concluded that, in the majority of cases, those proposed schemes were inferior to the standard public procurement model based on competitively tendering construction of publicly-owned assets.

A response to these negative conclusions was the development of formal procedures that focused on PPPs ‘value for money’, instead of reductions in debt.

Value for money, for example, was achieved by arranging an appropriate allocation of risk. From the late 1990s onward, private finance initiatives in Australia had these assessment procedures included in the contracts.

Another model under discussion and of particular interest to developing countries, is the PPCP (public-private community partnership), in which both players – the government and private sector entities – work together for social welfare, thus eliminating the main focus of the private sector partner on profit.