Business class

Call it the double-threat. With Project Management Professional (PMP^®) certification in hand, many project managers looking to move up the ranks are adding a master of business administration (MBA) to their CVs.

Amidst all the certifications and degree programs out there, the MBA isn't always the obvious choice. The degree's heavy focus on operations management leaves many project managers debating whether the knowledge gained will be worth the significant time and financial commitment. Of course, the outcome of that cost-benefit analysis will vary by an individual's industry and aspirations. But throughout the profession, one fact rings true: To meet their organizations' strategic goals, project managers must first have a firm understanding of how business works.

And the best way to convey that knowledge is to learn how to speak the lingo and back up projections with solid statistics, says David Benkelberg, PMP, an IT project manager for Deutsche Post, Bonn, Germany.

For many project leaders, however, performing simulations isn't a core competency. That's where an MBA can come in handy. Mr. Benkelberg says the business-modeling skills he learned in his MBA program have helped him reliably determine the probability of success when selecting and making changes to his projects.

“You can really say, ‘I've got 75 percent certainty that I will actually meet that deadline,’” he explains. “From a selling-your-project perspective, it's very valuable and very powerful. It gives you a strong reputation.”

Coming in with an MBA also can help project managers prove their fiscal fluency, which, in turn, can earn them a spot in early project and program negotiations, says Frank Parth, PMP senior partner for Project Auditors, Rancho Santa Margarita, California, USA.

“Selecting projects is a process of calculating the ROI and the internal rate of return,” says Mr. Parth, who holds both a PMP certification and an MBA degree.

Role Reversal

“The more project managers understand that, the more they can get involved in selecting the right projects. … Without that specific knowledge, all they can do is act as mechanics.”

KNOWLEDGE REALLY IS POWER

At many companies, only those project leaders who can demonstrate prowess in the business arena are handed the prized slots on large programs—and senior management roles.

“Because programs go on for so many years, they often assume the aspects of a regular company with operational management requirements,” Mr. Parth says. “So program managers have to be much better at managing major stakeholders and doing the financial analysis.”

Even if companies don't have official degree requirements tied to senior-level promotions, having an MBA will separate you from the pack and demonstrate that you have the knowledge and drive needed to advance, says Henrique Imbertti Jr., PMP, a project management office analyst for the São Paulo, Brazil-based online marketing company Predicta.

“As the competition in the market is fierce, having an MBA can facilitate the advancement process,” he says. “This is being demanded more and more by companies.”

Mr. Imbertti says he earned his MBA in an attempt to better understand the business concepts that affect his daily work and to talk about challenges with colleagues.

“Earning my MBA helped mature several ideas in my mind and showed me practical ways to bring improvements to my organization,” he says.

MBA programs can also help project leaders competing in the global marketplace develop integrated insight across business domains, especially economics, sales, organizational development and strategy, says Viral Trivedi, who holds both a MBA degree and PMP certification.

A project manager at Symbian India, a mobile operating systems company in Bangalore, India, she believes earning an MBA can help project professionals better execute large, complex projects that involve international vendors, a global delivery environment and multinational customers.

“Though the PMP credential and knowledge base is sufficient for managing small- to medium-size projects, an MBA helps provide a deeper and wider view of the business,” Ms. Trivedi says. “At times, to successfully manage projects, it's critical to understand the strategic view of the projects and their repercussions.”

Some project leaders may even want to go for the triumvirate—and earn the Program Management Professional (PgMP^®) certification, too. Ms. Trivedi says the credential can help develop the higher-level competencies required to manage multiple diverse projects, set up a project management office and implement integrated project management procedures.

An MBA is a lifetime investment. It's not a two- or three-year horizon that you're looking at. If you're looking at a whole lifetime, I think it's definitely worthwhile.

—David Benkelberg, PMP, Deutsche Post, Bonn, Germany

THIS WAY UP

MBAs aren't as common in continental Europe as they are in the United States and the United Kingdom. But Mr. Benkelberg says he expects that to change in the coming years. Globalization and standardization have already made the bulk of multinationals appreciate the value of MBAs, and smaller companies will probably jump on the bandwagon soon, he says.

“An MBA is a lifetime investment,” Mr. Benkelberg says. “It's not a two- or three-year horizon that you're looking at. If you're looking at a whole lifetime, I think it's definitely worthwhile.”

One of the less tangible benefits of the degree is the confidence it can instill—providing project professionals the assurance to compete for the organization's top spots.

“It really gives you the confidence that there isn't anyone out there who knows more than you do,” Mr. Benkelberg says. “When you want to move up the hierarchy, confidence is essential.”

Whether the way to the top comes via a PMP certification, an MBA degree—or a combination of the two—depends on the individual project manager. And the only sure-fire way to determine what you need to get ahead is to look up your own ladder, Mr. Parth says.

“Find out what the executives are doing in your industry. See what they have,” he says. “They're the gate you have to go through, so if they all have MBAs, then you pretty much need an MBA, too.” PM