PRINCE2 and the IPMA Competence Baseline (ICB 3) Michael Young, Reinhard Wagner. AXELOS.com

PRINCE2 and the IPMA Competence Baseline (ICB 3) Michael Young, Reinhard Wagner AXELOS.com White Paper May 2015

Contents Introduction 3 Relationship between ICB3 and PRINCE2 6 Comparison of ICB3 and PRINCE2 6 Conclusion 10 Acknowledgments 11 About AXELOS 11 Trade marks and statements 11

PRINCE2 and the IPMA Competence Baseline (ICB 3) 3 1 Introduction 1.1 PURPOSE OF THIS DOCUMENT This White Paper is intended to show how the International Project Management Association (IPMA ) Competence Baseline (ICB3) relates to PRINCE2 and vice versa. In particular we intend to demonstrate how PRINCE2 contributes to the knowledge element of ICB3 which will be useful for project managers wishing to undertake certification with either IPMA or PRINCE2. This document can be used by a number of audiences, including: Candidates: As a guide to personal development In preparation for certification As an input to self-assessment. Assessors: As a means to baseline for competence assessment. Employers: As the basis for employee development As the basis for assessment of training needs As the basis for assessment of training results As the basis for recruitment. Educators and trainers (also includes IPMA and IPMA Member Associations): As the basis for training program design Basis for evaluation of training results. Researchers and Students: As the starting point for research and as reference material for other works. Wider Project Management Profession: As a source of knowledge of competence. 1.2 WHY STANDARDS HELP IMPROVE PROJECT MANAGEMENT EFFECTIVENESS Standards can improve the effectiveness of project management by drawing attention to the key principles and activities required to deliver a successful project outcome. This can happen in two ways: The content of the standard becomes a checklist against which an organization can assess the completeness of its own approaches in terms of both principles and activities. This leads to fewer organizations missing activities which national (or international) consensus deems vital for project effectiveness Management fundamentally relies on good communication, and at the heart of communication are words. By standardizing the use of words in a particular context, people are able to work together more easily and with fewer misunderstandings. Once established, standards can promote continuous improvement by being periodically reviewed and updated to ensure the latest consensus on best-practice is included and any omissions or clarifications are dealt with. In this way, all users of standards benefit from the collective experience of all other users. This White Paper explores how two well-known standards interrelate.

4 PRINCE2 and the IPMA Competence Baseline (ICB 3) Competence Baseline (ICB3) 1.3 PRINCE2 PRINCE was originally developed by the UK government agency Central Computer and Telecommunications Agency (CCTA). This was originally designed for government IT projects but it was appreciated that the original method could be applied to projects in general and not just IT projects. Therefore, in 1996 and after considerable revision PRINCE2 was released as a generic project management method. The method continues to evolve as a generic project management approach through the various revisions in 2002, 2005 and 2009. PRINCE2 provides a series of processes that can be adapted and used with any project large or small, public or private sector. Over those years it has become the de facto standard for project management in many organizations around the world. Figure 1.1 depicts the structure of PRINCE2. PROJECT ENVIRONMENT Change Progress Business Case PRINCE2 PROCESSES Organization Quality Risk Plans PRINCE2 THEMES PRINCE2 PRINCIPLES Figure 1.1 the structure of PRINCE2 PRINCE2 identifies seven fundamental principles for a PRINCE2 project these are: Continued business justification Learn from experience Defined roles and responsibilities Manage by stages Manage by exception Focus on products Tailor to suit the project environment. These PRINCE2 principles are drawn from lessons learned from projects, both good and bad; hence they are grounded in real experience of what works and what does not. Together they provide a framework of good practice for those people involved in a project. PRINCE2 goes on to provide a series of processes in a logical sequence from project inception to closure. These help everyone involved in the project (the project board, the project manager, project team members and the organization s management) to understand and manage the project efficiently and effectively. The scope of PRINCE2 is defined by what is necessary for the method to work, it assumes that: The individual will bring other skills to bear on the project beside their knowledge of PRINCE2 hence any discussion of the application of these skills is outside the scope for PRINCE2 The organization will have specialist functions, legal, procurement, HR, etc. that can be called upon by the project as necessary, and again any discussion of these topics also outside the scope for PRINCE2.

PRINCE2 and the IPMA Competence Baseline (ICB 3) 5 1.4 IPMA INDIVIDUAL COMPETENCE BASELINE The IPMA Individual Competence Baseline (IPMA ICB ) version 3 (ICB3) is the standard published by the International Project Management Association. ICB3 identifies and codifies the competences expected to be performed by individuals working in project management. ICB3 was developed with a contribution from over 40 national project management associations and is an enhancement of ICB2. ICB3 introduced behavioural competences and in doing so proposed the Eye of Competence, see figure 1.2. Figure 1.2 the Eye of Competence In ICB3, IPMA defines competence as a collection of knowledge, personal attributes, skills and relevant experience needed to be successful in a certain function. Knowledge does not just mean correctly reproducing facts, but also it requires an understanding of relationships, knowing how to apply project management in practical situations as well as interpreting methods. Experience must also be developed over a wide range of projects rather than repeating similar types of projects. Whilst it is commonly thought that ICB3 is only used as the standard against which individuals are certified, it is used far more broadly. ICB3 is also used by: Educators to develop training and education programmes and materials Human resources professionals when developing job descriptions and for recruitment Individual project managers to self-assess and identify skills and knowledge gaps. ICB3 identifies that professional project management is broken down into 46 competence elements and are structured around three competence ranges: technical competences (20 elements), behavioural competences (15 elements) and contextual competences (11 elements). The technical competence range consists of those technical skills and the associated knowledge that relates to the project management subject matter on which professionals are working. The behavioural competence range deals with the personal relationships between individuals and groups managed by the project manager. The contextual range deals with the interactions of the project and project team within the permanent organization. 1.5 STANDARDS AND METHODS SERVE DIFFERENT PURPOSES There is scope for confusion regarding the respective uses of competence standards and methods, and how they are applied in organizations. In simple terms: A competence standard defines the knowledge, personal attributes, skills and experience a project manager needs in order to do their job effectively A method, such as PRINCE2, provides not only a set of activities to be done, together with role definitions, and some of the techniques for undertaking these activities. Techniques are more fully covered in the bodies of knowledge approach.

6 PRINCE2 and the IPMA Competence Baseline (ICB 3) Competence Baseline (ICB3) 2 3 Relationship between ICB3 and PRINCE2 When making comparisons between ICB3 and PRINCE2 it is important to keep the following key points in mind: PRINCE2 and ICB3 are based on different paradigms as they each have a different focus. Whilst the table at Annex A identifies the relationships between both PRINCE2 and ICB3, this does not mean that PRINCE2 knowledge is equivalent to respective competence element in ICB3. Likewise knowledge of general project management principles as detailed in ICB3 does also not mean an in-depth knowledge of PRINCE2 The focus of PRINCE2 is the methods and associated techniques required to undertake specific activities ICB3 s focus is competence. ICB3 describes the knowledge, personal attributes, skills and experience a project manager needs to complete those activities PRINCE2 does not cover the totality of project management rather it focuses on what is required to make the method work for the efficient and effective delivery of projects. It assumes that people bring other skill sets to bear on project delivery. Many of these other skill sets are described in ICB3 Certification is available in PRINCE2 at Foundation and Practitioner Level. PRINCE2 certification involves completion of examinations that test the understanding of the concepts within PRINCE2 as well as the appropriate application of the method within the question scenario The PRINCE2 certification does not attempt to assess the competence of the candidate as a project manager. Like many qualifications it demonstrates that the candidate has been trained to a certain level and, within the constraints of the examination, that they have demonstrated an ability to apply that knowledge appropriately. IPMA offer certification via their 4LC system, with ICB3 being the standard against which an individual s competence is assessed. Certification is available at Levels A through D IPMA offers a certification under the 4LC system with certification available at: Level D Certified Project Management Associate Level C Certified Project Manager Level B Certified Senior Project Manager Level A Certified Projects Director. Further information can be found on IPMA Certification at: http://ipma.ch/certification/ Comparison of ICB3 and PRINCE2 The mapping of ICB3 and PRINCE2 was done at a high level with ICB3 competencies, process steps and topics being mapped to PRINCE2 to components. In the sections below, the comparison is done between ICB3 and PRINCE2 with the result being shown as either full, partial or not at all, see table 3.1. Descriptor Full Partial Not At All Table 3.1 Descriptor definitions Description All knowledge aspects of ICB3 are covered by PRINCE2 There is some correlation or relationship between the element in PRINCE2 and the knowledge aspect of this Competence Element detailed in ICB3 There is no correlation or relationship between the element in PRINCE2 and the knowledge aspect of this Competence Element detailed in ICB3

3.1 ICB3 TECHNICAL COMPETENCES PRINCE2 and the IPMA Competence Baseline (ICB 3) 7 This section addresses the technical competence elements in ICB3. Technical competence elements are those that the core project management functions, such as scoping, scheduling and risk management. PRINCE2 fully addresses the knowledge element of 251 out of the 343 requirements that make up ICB3, see table 3.2 for a summary of the requirements. The detailed mapping, available separately online, shows that an understanding of PRINCE2 can make a significant contribution towards the knowledge element of ICB3. The area of greatest coverage, not surprisingly, is within the technical competence range as PRINCE2 focuses heavily on what needs to be done, by whom, when it needs to be done and how it should be done. With the technical competence there is often good coverage of both the process steps and of the individual topic elements themselves. There is a slightly stronger correlation being in the Process Steps section at 82% of the ICB3 rather than the Topics section itself at 63%. There are a further 59 requirements where PRINCE2 partially addresses the requirements in ICB3. There were only 33 requirements in ICB3 that were not addressed at all by PRINCE2. Many of these requirements relate to procurement or contractual competencies with some few under communication topics such as body language and listening. The reason for the lower correlation in some areas is that PRINCE2 by design regards the subject matter as out of scope. PRINCE2 takes the view that the project does operate in isolation and that the organization will have certain specialist functions to call on when the project needs them and hence the project doesn t need to have separate capabilities in those areas. This would cover the procurement, legal, intellectual property, as well as the soft skill knowledge domains. PRINCE2 makes no attempt to cover how well individual are able to carry out project roles only what they need to do and that the organization will select capable people to fulfil the various project roles. C ICB3 Competence Element Addressed in PRINCE2 Requirements Fully Partially Not at all % Fully 1.01 Project Management Success 15 14 1 0 93% 1.02 Interested Parties 18 15 3 0 83% 1.03 Project requirements & objectives 17 14 3 0 82% 1.04 Risk & Opportunity 21 19 2 0 90% 1.05 Quality 15 13 1 1 87% 1.06 Project Organization 17 16 1 0 94% 1.07 Team Work 12 7 5 0 58% 1.08 Problem Resolution 12 9 2 1 75% 1.09 Project Structures 14 10 3 1 71% 1.10 Scope & Deliverables 16 12 4 0 75% 1.11 Time & Project Phases 15 15 0 0 100% 1.12 Resources 14 11 2 1 79% 1.13 Cost & Finance 35 16 10 9 46% 1.14 Procurement & contract 20 5 1 14 25% 1.15 Changes 15 13 1 1 87% 1.16 Control & Reports 14 12 2 0 86% 1.17 Information & Documentation 24 16 8 0 67% 1.18 Communication 19 10 5 4 53% 1.19 Start Up 13 12 1 0 92% 1.20 Close Out 17 12 4 1 71% Total 343 251 59 33 Table 3.2 Summary of requirements in ICB3 addressed by PRINCE2

8 PRINCE2 and the IPMA Competence Baseline (ICB 3) Competence Baseline (ICB3) In general it can be seen that there a high degree of coverage in most ICB3 technical topics with the lowest correlations in the following topics 1.14 Procurement & contracts at 25% 1.13 Cost & Finance at 46% 1.18 Communication at 53% 1.07 Team Work at 58%. 3.2 ICB3 BEHAVIOURAL COMPETENCES This section details the correlation between ICB3 Behavioural competences, topics and process steps and PRINCE2, see table 3.3. Behavioural competences are those personal, social and inter-personal competencies (sometimes referred to as soft skills ) that a project manager uses when interaction with individuals or groups. PRINCE2 knowledge contributes only to a few requirements in this dimension and then only partially. This is perhaps not too surprising as PRINCE2 focuses on what is required to make the method work and assume many of the behavioural aspects are a given. That said the 2009 edition of PRINCE2 separated the managing and directing functions. Within Directing a Project with PRINCE2 there is a focus on the behaviours of those who have a leadership role in the project and the impact they have on project efficacy. Item Addressed in PRINCE2? Comment 2.01 Leadership Partially Leadership is one of the Project Board s duties and behaviours and a noted core competence 2.02 Engagement & Motivation Partially 2.03 Self-control Not At All 2.04 Assertiveness Not At All 2.05 Relaxation Not At All Project Manager competence includes people management 2.06 Openness Partially The governance principles require openness throughout the project organization - a pre-requisite for management by exception 2.07 Creativity Not At All 2.08 Results Orientation Partially The focus on products principles makes PRINCE2 output oriented rather than activity oriented 2.09 Efficiency Partially The tailoring principle guides Project Boards and Project Managers to establishing appropriate control to maximize efficiency 2.10 Consultation Partially Stakeholder engagement threaded throughout the method 2.11 Negotiation Not At All 2.12 Conflict & Crisis Not At All 2.13 Reliability Not At All 2.14 Values appreciation Partially 2.15 Ethics Partially Governance principles Table 3.3 ICB3 behavioural competencies and PRINCE2 Stakeholder engagement threaded throughout the method. The Governance principles guide alignment to stakeholder values In addition to the leadership competence PRINCE2 makes partial contribution to knowledge in a further 7 out of the 15 areas in the behavioural competence dimension. These cover topics such as the efficient project management through tailoring PRINCE2, consultation through stakeholder engagement so that the various interests are understood and valued. Lastly, the aspect of openness is intrinsic in the management by exception principle which relies on transparency, openness and trust for it to be effective.

3.3 ICB3 CONTEXTUAL COMPETENCIES PRINCE2 and the IPMA Competence Baseline (ICB 3) 9 This section details the correlation between ICB3 Contextual competences, topics and process steps and PRINCE2, see table 3.4. Contextual competences are those that describe how a project manager interacts with the organization as well as the internal and external project environment in which they are operating. Within the 163 requirements covered by ICB3 PRINCE2 can fully contribute towards 46 requirements, makes a partial contribution towards a further 50 requirements and not at all to 33 requirements. There are an additional 34 requirements that lay outside the scope of PRINCE2. PRINCE2 does not address aspects of the higher level management associated with programmes and portfolios as this is dealt with separately within the AXELOS PPM portfolio. Hence the correlation here is not as high as for the technical competencies. C ICB Item Addressed in PRINCE2 Requirements Fully Partially Not at all Not Applicable % Fully 3.01 Project Orientation 3.02 Programme Orientation 3.02 Portfolio Orientation 3.04 Project, programme, Portfolio implementation 3.05 Permanent Organization 9 0 4 0 5 0% 13 0 3 0 10 0% 13 0 7 0 6 0% 16 0 6 1 9 0% 11 10 1 0 0 91% 3.06 Business 11 2 4 5 0 18% 3.07 Systems, products, technology 3.08 Personnel Management 3.09 Health, Security, Safety & Environment 34 15 12 6 1 44% 14 7 4 3 0 50% 13 1 5 7 0 8% 3.10 Finance 13 8 2 3 0 62% 3.11 Legal 16 3 2 8 3 19% Total 163 46 50 33 34 Table 3.4 ICB3 contextual competencies and PRINCE2

10 PRINCE2 and the IPMA Competence Baseline (ICB 3) Competence Baseline (ICB3) 4 Conclusion 4.1 THE KEY SIMILARITIES Both PRINCE2 and ICB3 deal with project management as subject and therefore it is not surprising that there some agreement in the subject matter covered Within the technical competence area the greatest correlation of coverage deals with the basics of: Starting up a project The organization of the project Dividing projects into phases/stages Handling risks and opportunities Handling change throughout the project Handling quality throughout the project Controlling the project once in flight. 4.2 THE KEY DIFFERENCES While PRINCE2 and ICB3 deal with a core of project management knowledge domains and process that they share in common, they may not always deal with these is the same way and certainly the ICB3 extends into areas that PRINCE2 was never designed to address PRINCE2 and ICB3 that have been constructed from different purposes. PRINCE2 deals with a range of subjects and processes required for an organization to control projects. ICB3 deals much more with individuals and majors on how well they are able to carry out the various tasks which make for a rounded capable project (programme, portfolio) manager ICB3 extends beyond just the project domain and covers the other domains such as programme and portfolio management that PRINCE2 does not cover at all. Finally, IPMA Assessors, who have conducted individual certification assessments for candidates who are using PRINCE2 methods, indicate that these candidates are generally able to provide a solid range of documentary evidence such as: Project Initiation Documents, Exception Reports and Product Work Breakdown Structures to support their competency assessment. 4.3 OUTLOOK FOR PRINCE2 AXELOS will continue to develop and evolve PRINCE2 but recognizes it is not the only player neither is it an island. This mapping exercise will help to inform further evolutions of PRINCE2. As an example of this recognition is the announcement by AXELOS that it will exempt candidates with IPMA certifications from having to take the PRINCE2 foundation before they can take the PRINCE2 practitioner exam. 4.4 OUTLOOK FOR ICB4 ICB4 will be launched in September 2015 after four years of development involving more than 150 experts in more than 50 countries. ICB4 incorporates the new domains of Programme Management and Portfolio Management and has been designed in a modular manner to allow for the creation of new roles such as PM Consultant or PMO Manager. ICB4 maintains the eye of competence ensuring that the contextual, technical and personal and social (formerly behavioural) aspects are identified. 4.5 PRODUCT AND SERVICE DEVELOPMENT This mapping exercise is therefore the start of a longer journey and from this initial step other products and services are likely to be developed. These will cover a range of possibilities: A range of further white papers explaining how the identified gaps might be filled The mapping may form the basis of awareness training courses The development of joint guidance with associated certifications on selected topics The mapping may form the basis of comparing examination syllabuses and could be used to develop bridging or intermediary examinations.

Acknowledgements PRINCE2 and the IPMA Competence Baseline (ICB 3) 11 AXELOS Ltd is grateful to Michael Young of Transformed Pty Ltd and the IPMA Research Management Board. AXELOS also acknowledges the work of Andy Murray of Outperform UK Ltd and Dagmar Zuchi of Enable2Change in developing the detailed mapping on which this paper is based. C About AXELOS AXELOS is a joint venture company, created by the Cabinet Office on behalf of Her Majesty s Government in the United Kingdom and Capita plc to run the global best practice portfolio, including the ITIL and PRINCE2 professional standards. The goals of AXELOS are many and varied, each one aimed at helping businesses and individuals reach success, empowering them to truly stand out in a competitive market: We continually promote and advocate quality training We strive to encourage growth, development and progress We always look for innovative new solutions to improve best practice standards and processes across the board. The result is improved skills that are relevant to the industry as a whole and enhanced employability for all, benefiting the global economy. The benefit to you and your business in particular: better trained employees, streamlined operations, and the peace of mind of knowing that you are working with an industry-leading organization, which provides products and services with a long-standing reputation for setting the industry benchmark. Trade marks and statements IPMA is a registered trade mark of IPMA in Switzerland and other countries. IPMA ICB is a registered trade mark of IPMA in Switzerland and other countries. AXELOS, the AXELOS logo, the AXELOS swirl logo, ITIL, PRINCE2, MSP, M_o_R, P3M3, P3O, MoP and MoV are registered trade marks of AXELOS Limited. RESILIA TM is a trade mark of AXELOS Limited. Reuse of any content in this White Paper is permitted solely in accordance with the permission terms at https://www.axelos.com/policies/legal/permitted-use-of-white-papers-and-case-studies. A copy of these terms can be provided on application to AXELOS at Licensing@AXELOS.com. IPMA logo is used with permission. Figure 2 The Eye of Competence is Copyright IPMA and is used with permission. Copyright AXELOS Limited 2015. Our White Paper series should not be taken as constituting advice of any sort and no liability is accepted for any loss resulting from use of or reliance on its content. While every effort is made to ensure the accuracy and reliability of the information, AXELOS cannot accept responsibility for errors, omissions or inaccuracies. Content, diagrams, logos, and jackets are correct at time of going to press but may be subject to change without notice. Sourced and published on www.axelos.com.