Has the Project Management Institute (PMI) Lost Its Credibility and Legitimacy as a 501(c)(6) Business League Representing the Practice of Project Management?

18 min readMar 5, 2022

By Dr. Paul D Giammalvo

As a follow up to and in support of my longtime friend and highly respected colleague from SE Asia Pacific, Dr. Ken Smith, Col. US Air Force (retired), who wrote a “Letter to the Editor” in the PM World Journal Volume XI, Issue 2 February 2022, entitled “ON THE SUBJECT OF THE PMBOK GUIDE, 7TH EDITION”[1] I want to ask our fellow practitioners a series of questions that we owe it to ourselves to expect PMI to answer candidly, completely and honestly as there are serious issues that bring into question whether PMI is qualified to represent the practice of project management practitioners.

Here are the 18 questions that I would like to get PMI to answer: (Feel free to add your OWN)

Question #1- GIVEN the comments on Glassdoor, is it unreasonable in the name of transparency for the PMI BoD to direct PMI HQ to disclose the salaries being paid to the top 10 or 15 people at PMI HQ to the member/owners?

Question #2- Given the limitations in the IRS rules for 501(c)(6) “Business Leagues,” not to mention the PMI Code of Ethics (Conflicts of Interest?) and the fact that PMI has $621 MILLION USD in liquid assets, how can PMI, in good faith, COMPETE against their member/owners by providing Training and/or Consulting Professional Services? How GREEDY can they be?

Question #3- Given that PMI has close to $621 MILLION US dollars in LIQUID ASSETS, and between 2019 to 2020, PMI INCREASED THEIR NET WORTH by over 54 MILLION USD and given a good percentage of PMI’s revenues comes from people living in developing nations:

Question #3.1-WHY does PMI need so much money in the bank?

Question #3.2- Why don’t they offer the PMBOK for FREE?

Question #3.3- Why don’t they lower the price of the exam fees and/or membership fees using Purchasing Power Parity? (i.e., the Big Mac Index)

Question #3.4- Why don’t they invest those funds to support projects from the UN’s Strategic Development Goals? You know, “Walk their Talk”?

Question #4- Is it unreasonable to expect that PMI HQ and the PMI BoD should not only adhere to the CoE but EXEMPLIFY it? To “lead by example” showing practitioners not only the MINIMUM but the ASPIRATIONAL goals? Specifically:

Question #4.1- After 5+ years, PMI has just recently updated their blatantly false and misleading claims that their PMP “was “the gold standard” that “validated competency.” But take a look at what they are now claiming. While better, is that SUFFICIENT?

Question #4.2- Are the changes PMI made in their marketing claims about the PMP consistent with the LETTER and INTENT of the US “Truth in Advertising” laws?

Question #4.3- Are the changes PMI made in their marketing claims about the PMP consistent with the LETTER and INTENT of the PMI Code of Ethics, specifically paragraph 5.3.1?

Question #4.4- Why have the million or so PMPs or other PMI members (BoD? PMI Fellows?) failed to file ETHICS COMPLAINTS against PMI HQ? Shouldn’t PMI HQ be bound by the same standards as the Member/Owners?

Question #4.5- How much longer before one or more real LEADERS step forward and DEMAND that the BoD (as they are obligated to do under Carver’s Policy Governance Model[2]) address what is an ethics problem and perhaps even a legal violation? This issue is no secret and should be fixable with 15 minutes’ worth of work.

Question #4.5- Has PMI gone “woke” and is starting to support Soros, Klause Schwab and the rest of the “Davos Gang” with the World Economic Forum’s “Great Reset” and their leftist “New World Order”?

Question #5- The PMP is a dying credential (Why? Because IMPO, PMI has OVER PROMISED and UNDER DELIVERED), and as we can see from the Glassdoor comments, PMI has lost its way.

Question 5.1- How much longer is it going to take before we follow the advice of Glenn Butts from NASA and Prof Bent Flyvbjerg, Oxford, by identifying and embracing only “best tested and PROVEN” practices and STOP advocating “those practices used on most projects, most of the time” or AVERAGE practices as has been the PMI standard in the past?

Question #5.2- When are we going to stop “doing the same things over and over again and expecting different results” and EMBRACE what we have learned over the past 6,000+ years “initiating, planning, executing, controlling and closing” projects adopting the 5 attributes of the Scientific Method as the TEST or STANDARD to qualify as “best tested and PROVEN”?

Question #5.3- When are we going to throw the PMBOK Guide 7th Edition in the trash where it belongs before it causes any more damage to the practice of project management or the professional image of practitioners and start OVER again adopting the 5 Attributes of the Scientific Method as the TESTS or STANDARDS to determine if a tool, technique or process qualifies as being a “best tested and PROVEN” practice, understanding that they are likely to change CONTINUOUSLY and need to be kept updated frequently.

Question #5.4- Given we know for a fact that the INTEGRATION of Asset, Portfolio, Program and Project Management is a “best tested and PROVEN” practice [3], [4] as evidenced by the adoption of this model by all the major International and most National Oil, Gas and Mining companies and nearly all public and private sector UTILITY companies[5], how much longer before PMI recognizes and accepts that we need to INTEGRATE ISO 55000 with a REVISED ISO 21500?

Question #5.5- Put in the context contained in the PMP Exam Content Outline and the PMP Certification Application Handbook, can anyone explain logically and rationally how we can possibly use the PMBOK Guide 7th Edition to develop training courses for the PMP?

Question #6- When can we expect the PMI BoD and PMI HQ Leadership to review and address the comments and suggestions made on Glassdoor and consistent with both the LETTER and INTENT of the PMI Code of Ethics, make their analysis and findings PUBLIC to the member/owners to review and using that as criteria, decide whether to renew their membership or seek out an alternative that aligns more closely with their beliefs and values?

BACKGROUND INFORMATION

For a quick background summary, I was once an active supporter and advocate of PMI and their PMP between 1986 and 2003. I was brought into PMI by Frank Walker P.E. and R. Max Wideman while working in Alaska and was active in the Alaskan Chapter, serving on the BoD as Membership VP, and when I accepted a consulting contract with Caltex Pacific Indonesia, I was charged with getting Indonesian’s PMP certified and was instrumental in the founding of the PMI Indonesia Chapter, (serving as president for two years) as well as the PMI Bangkok, and PMI Singapore chapters and supported the growth and development of the Malaysia and Philippines chapters in my role as a PMI Regional Director of Advocacy for two years.

I VOLUNTARILY dropped my PMP #740 back around 2003, and our company dropped our Global Charted Registered Education Provider #2 after Virgil Carter took over, as we no longer felt that PMI represented or exemplified the values and beliefs we subscribe to as life-long practitioners, and since then, my business partners and I have become outspoken critics of the organization based on many of the same complaints coming from current and former employees in the Glassdoor postings.

AFTER publicly announcing I was not going to renew my PMP or Global Chartered REP and after calling for a boycott of PMI’s Seminar World in Singapore, I was brought up on Ethics charges by Virgil Carter ostensibly on behalf of the PMI BoD and after being found NOT GUILTY by the Ethics Committee, Carter APPEALED the Ethics Committee findings to the BoD, who over-ruled them, further cementing my disdain and lack of respect for the organization.

Having posted my list of questions and summarized the brief history explaining why I am asking these questions, to establish some CONTEXT, here are published FACTS that I believe are relevant that you need to know and understand in order to understand WHY these questions are important, and demand answers the questions that I have long been asking.

SUPPORTING FACTUAL REFERENCES

Fact #1- Here is the IRS definition of a “501(c)(6)” “Business League.”[6]

“Section 501(c)(6) of the Internal Revenue Code provides for the exemption of business leagues, chambers of commerce, real estate boards, boards of trade and professional football leagues which are not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual. An organization that otherwise qualifies for exemption under Internal Revenue Code section 501(c)(6) will not be disqualified merely because it engages in some political activity. In addition, the organization may engage in lobbying that is germane to accomplishing its exempt purpose without jeopardizing its exemption. However, suppose the organization engages in political and/or lobbying activities. In that case, it may need to give members notice of dues used for such activities or be subject to a proxy tax on the amount of the expenditures.”[7]

“A business league is an association of persons having some common business interest, the purpose of which is to promote such common interest and not to engage in a regular business of a kind ordinarily carried on for profit. Trade associations and professional associations are business leagues. To be exempt, a business league’s activities must be devoted to improving the business conditions of one or more lines of business as distinguished from performing particular services for individual persons. No part of a business league’s net earnings may inure to the benefit of any private shareholder or individual, and it may not be organized for profit to engage in an activity ordinarily carried on for profit (even if the business is operated on a cooperative basis or produces only enough income to be self-sustaining). The term line of business generally refers either to an entire industry or to all components of an industry within a geographic area. It does not include a group composed of businesses that market a particular brand within an industry.”[8]

“Chambers of commerce and boards of trade are organizations of the same general type as business leagues. They direct their efforts at promoting the common economic interests of all commercial enterprises in a trade or community, however.”[9]

Fact #2- Here is the latest 2019–2020 PMI Consolidated Financial Statement.”[10]

As you can see here, PMI has close to 621 MILLION US dollars in LIQUID ASSETS. And that between 2019 to 2020, PMI INCREASED THEIR LIQUID NET WORTH by over 54 MILLION USD.

Keep in mind that a good percentage of the revenues that PMI earns comes from people living in developing nations.

Fact #3- Here is the PMI Code of Ethics, specifically Section 5 on “Honesty.”[11]

“5.1 Description of Honesty

Honesty is our duty to understand the truth and act in a truthful manner both in our communications and in our conduct.

5.2 Honesty: Aspirational Standards As practitioners in the global project management community:

5.2.1 We earnestly seek to understand the truth.

5.2.2 We are truthful in our communications and in our conduct.

5.2.3 We provide accurate information in a timely manner.

Comment: These provisions imply that we take appropriate steps to ensure that the information we base our decisions upon or provide to others is accurate, reliable, and timely. This includes having the courage to share bad news even when it may be poorly received. Also, when outcomes are negative, we avoid burying information or shifting blame to others. When outcomes are positive, we avoid taking credit for the achievements of others. These provisions reinforce our commitment to being both honest and responsible.

5.2.4 We make commitments and promises, implied or explicit, in good faith.

5.2.5 We strive to create an environment where others feel safe telling the truth.

5.3 Honesty: Mandatory Standards As practitioners in the global project management community, we require the following of ourselves and our fellow practitioners:

5.3.1 We do not engage in or condone behavior that is designed to deceive others, including but not limited to making misleading or false statements, stating half-truths, providing information out of context or withholding information that, if known, would render our statements misleading or incomplete.

5.3.2 We do not engage in dishonest behavior with the intention of personal gain or at the expense of another.

Comment: The aspirational standards exhort us to be truthful. Half-truths and nondisclosures intended to mislead stakeholders are as unprofessional as affirmatively making misrepresentations. We develop credibility by providing complete and accurate information.”[12]

Fact #4- Here is a SUMMARY of a public statement from one of PMP’s “Founding Father,” Lee R. Lambert.[13]

“Possessing the PMP shouts to the world that you have passed a comprehensive exam and confirmed that you are aware of and understand the processes, terms, tools, and techniques as represented in the PMI’s Guide to the Project Management Body of Knowledge. THAT’S IT!! Passing the PMP exam does not confirm that you are an accomplished project manager with a long history of leading successful projects. To claim or even imply that earning the PMP is any more than an indicator of general knowledge in the field is questionable. The PMP may open the door to opportunities to prove skill as a project manager, but it does not replace hands-on experience as a project manager. Maybe the acronym should be; PPMP (Potential Project Management Professional), similar to the EIT (Engineer In Training). As the PPMP demonstrates the capability to lead projects successfully, it morphs to the PMP. Over the years, the success of the PMP Certification has become one of PMI’s claims to fame. What the PMP represents has been distorted, misunderstood, and often assumed to be something it isn’t. Let me repeat; the PMP does not confirm project management competency. No matter how many times you say it does, the PMP does NOT confirm project management competency!”

Fact #5- Here is what PMI PREVIOUSLY was claiming about their PMP.[14]

PMI Blatant False & Misleading Claims prior to 2022

For at least 5 years, PMI has been making this claim, and despite having been challenged, they are still making an UNSUBSTANTIATED claim that the PMP is a “Gold Standard” and that it “validates your COMPETENCE.”

Yet, in the 35 years PMI has been publishing the PMBOK/PMBOK Guide, and despite PMI supposedly spending 1 million USD on research, there is no empirical evidence that what PMI advocated in the past nor is currently advocating with the PMBOK Guide 7th Edition has worked nor will work in the future.

Worse yet, there are many examples, coming from 65+ years of experience in oil, gas, mining and both public and private utilities that when we INTEGRATE Asset, Portfolio, Program (Operations) and Project Management into a complete SYSTEM that at least from an Asset perspective, the system works irrespective of whether the project was a “success” or not.

Fact #6- Here is what PMI is CURRENTLY claiming about their PMP.[15]

PMI’s PMP Advertisement After Feb 1, 2022

“Why the PMP”[16]

The PMP adds value. CIO magazine ranked the PMP as the top project management certification in North America because it demonstrates you have the specific skills employers seek, dedication to excellence and the capacity to perform at the highest levels.

[PDG] This claim is certainly dicey. The PMP is arguably the most GLOBALLY RECOGNIZED, but where is there any PROOF that those who hold the PMP have any better “SKILLS THAT EMPLOYERS SEEK” than those who do NOT or that they (PMP’s) are more successful at “adding any value?” Does this statement meet the letter or intent of the US “Truth in Advertising” requirements? Does this meet the letter or intent of the PMI Code of Ethics Paragraph 5.3.1 on HONESTY?

The PMP delivers benefits. The median salary for project professionals in North America is 25% higher than those without it.

[PDG] This claim is also dicey. Research done by John Hollmann indicates that while it appears there is CORRELATION between Certification and Salaries, there is no evidence of CAUSATION, and in fact, the causal link is between job title and salary. Unless you are a CONTRACTOR, project management does NOT add any Economic Value (EVA) or “benefits.” For OWNER organizations, projects create ASSETS, and it is the ASSET that may (or may not) add any value. Does this statement meet the letter or intent of the US “Truth in Advertising” requirements? Does this meet the letter or intent of the PMI Code of Ethics Paragraph 5.3.1 on HONESTY?

The PMP proves you work smarter. It shows you have the skills to drive business results and increase your organization’s impact in the office and around the world.

[PDG] Again, how does this statement EXEMPLIFY PMI’s Code of Ethics. How does it fulfill the LETTER or the INTENT of the US Truth in Advertising Laws? You CAN NOT validate SKILLS using multiple choice exams. Multiple Choice questions can validate KNOWLEDGE. SKILLS can only be validated through some kind of PRACTICUM. (Like getting your driver’s or pilot’s license, both of which require a WRITTEN exam and a TEST DRIVE/FLIGHT with a DMV or FAA Officer)

So is this recent update BETTER? Does it meet both the letter and intent of the US Truth in Advertising laws? Does it meet the letter and intent of the PMI Code of Ethics? If the answer is NO, what is YOUR obligation as a MEMBER or someone holding a PMI Credential based on the PMI Code of Ethics you are bound by?

Fact #7- Here is what the US “Truth in Advertising” laws require.[17]

US Federal Trade Commission Truth in Advertising Criteria

Fact #8- Here is data on the PMP Year on Year Growth Rates.[18]

Year on Year Growth of the PMP Forecast Into the Future

PMI has long published the original data showing cumulative growth. (Blue Bar Chart) The data shown in the yellow boxes show the year-on-year growth in percentages, and I believe PMI Greece President, Theofanis Giotis, generated these values.

What I did was using Excel regression analysis function and using the Year on Year growth data in the yellow rectangles, I plotted a “best-fit curve” to the Year on Year Growth data showing that the PMP is very clearly a DYING CREDENTIAL and while it will never go to zero, the marketplace is simply no longer impressed with the PMP as a meaningful or valuable credential.[19] CERTAINLY, nothing to support claims it is a “Gold Standard.”

Fact #9- Current and Former PMI Employees are WARNING us of an organization run amok.[20]

For those who may be unaware, Glassdoor is “an American website where current and former employees anonymously review companies. “Glassdoor also allows users to anonymously submit and view salaries as well as search and apply for jobs on its platform.”[21]

As of the date of submittal, there are 160+ reviews of PMI, many of them very humiliating about an organization that doesn’t even follow its advice and, worse yet, fails to even follow the same Code of Ethics that they expect the members and those who hold PMI certifications to follow and fail to follow even the most fundamental tools and techniques that they advocate. The organization REEKS of HYPOCRISY, or as one former employee noted, “a fish rots from the head down” (Glassdoor #8), and that appears to be exactly what is happening to PMI.

While I have reviewed all 163 of the comments, I only selected the most recent examples going back to 2017; however, it is clear for at least 15 years that the organization has been in trouble.

Fact #10- Flyvbjerg’s Recommendations This is what Flyvbjerg has been recommending now for 10+ years, and despite PMI awarding him Researcher of the Year in 2019, they continue to ignore his advice:

Flyvbjerg’s Advice and Recommendations https://oxford.academia.edu/BentFlyvbjerg

Flyvbjerg’s Recommendations Going Back 10+ Years

Fact #11- Butt’s Recommendations

And here is the advice from NASA’s Glenn Butts, which has been around for 10+ years, and PMI continues to ignore his recommendations as well.

NASA has published a FREE “Cost Estimating Guide” that PMI should embrace as a “best tested and PROVEN” practice. Incorporate by REFERENCE[22] as have many other government agencies, including the GAO[23] [24] and National Park Service.[25]

It does not or should not take $621 MILLION dollars to compile and publish these FREE tested and PROVEN methods.

From Glenn Butts- https://www.slideshare.net/NASAPMC/glennbutts-mega-projects-estimates

Recommendations from NASA’s Glenn Butts, Going Back 10+ years

Fact #12- “5 Attributes of the Scientific Method”[26]

1) Empirical Observation

“The scientific method is empirical. It relies on direct observation of the world and disdains hypotheses that run counter to observable fact. This contrasts with methods that rely on pure reason (including that proposed by Plato) and with methods that rely on emotional or other subjective factors.”

2) Replicable Experiments

“Scientific experiments are replicable. That is, if another person duplicates the experiment, he or she will get the same results. Scientists are supposed to publish enough of their method so that another person, with appropriate Training, could replicate the results. This contrasts with methods that rely on experiences that are unique to a particular individual or a small group of individuals.”

3) Provisional Results

“Results obtained through the scientific method are provisional; they are (or ought to be) open to question and debate. If new data arise that contradicts a theory, that theory must be modified. For example, the phlogiston theory of fire and combustion was rejected when the evidence against it arose.”

4) Objective Approach

“The scientific method is objective. It relies on facts and the world as it is, rather than on beliefs, wishes or desires. Scientists attempt (with varying degrees of success) to remove their biases when making observations.”

5) Systematic Observation

“Strictly speaking, the scientific method is systematic; that is, it relies on carefully planned studies rather than on random or haphazard observation. Nevertheless, science can begin from some random observation. Isaac Asimov said that the most exciting phrase to hear in science is not “Eureka!” but “That’s funny.” After the scientist notices something funny, they proceed to investigate it systematically.”

Fact #13- Integrated Asset, Portfolio, Program and Project Management Methodology has been TESTED and PROVEN to work.

This model first appeared publicly around 1955, having been published by either Esso or Diamond Shamrock Oil, and as evidenced by this list of the Institute of Asset Management, Corporate members are still in use today, including nearly all public and private sector utility companies as well as all major international and nearly all national oil and gas companies.

The only two professional societies that have adopted this fully integrated model are AACE with their Total Cost Management Framework and the Guild of Project Controls with their Compendium of Best Tested and PROVEN practices.

See the PAS 55 Standards to download these documents, which evolved into ISO 55000.

- PAS 55.1: Specifications

- PAS 55.2: Self-Assessment Strategy

This is the complete Integrated Asset, Portfolio, Program and Project Management Model developed by the author and available to download AT NO COST in B3 format. (Suitable for plotting or printing as a wall poster)

Do YOUR answers to THESE questions align with your beliefs and values? If not, what can or should you do about it, understanding that silence is ACCEPTANCE?

REFERENCES (in sequential order of appearance)

[1] PM World Journal Volume XI, Issue 2 February 2022

[2] Carver’s Policy Governance Model- https://www.carvergovernance.com/model.htm

[3] AACE’s Total Cost Management Framework https://web.aacei.org/resources/tcm

[4] Guild of Project Controls Compendium of Best Tested and PROVEN Practices- http://www.planningplanet.com/guild/GPCCAR-modules

[5] The Institute of Asset Management- https://www.youtube.com/watch?v=pLuMX_9WVFg

[6] IRS Definition of Business Leagues last accessed 6 Feb 2022- https://www.irs.gov/charities-non-profits/other-non-profits/business-leagues NOTE: Emphasis has been added by the author as the basis for follow on questions.

[7] Business Leagues | Internal Revenue Service. https://www.irs.gov/charities-non-profits/other-non-profits/business-leagues

[8] Business Leagues | Internal Revenue Service. https://www.irs.gov/charities-non-profits/other-non-profits/business-leagues

[9] Business Leagues | Internal Revenue Service. https://www.irs.gov/charities-non-profits/other-non-profits/business-leagues

[10] PMI Consolidated Financial Statements 2019–2020. https://www.pmi.org/-/media/pmi/microsites/annual-report-2020/financial/pmi-2020-financial-statements-09_24_2021.pdf?v=84a81899-1484-47fd-90b8-1e486e236384

[11] PMI Current Code of Ethics- https://www.pmi.org/-/media/pmi/documents/public/pdf/ethics/pmi-code-of-ethics.pdf Last accessed 06 Feb, 2022.

[12] PMI Code of Ethics and Professional Conduct. https://www.pmi.org/-/media/pmi/documents/public/pdf/ethics/pmi-code-of-ethics.pdf?v=6af21906-e593-4b63-8cee-abeb4137f41d

[13] To PMP or Not- That is the Question” Lambert, Lee R https://www.linkedin.com/pulse/pmp-pmp-that-question-lee-r-lambert/ Last accessed 06 Feb, 2022.

[14] PMI Certification page https://www.pmi.org/certifications Last accessed 06 Feb, 2022.

[15] PMI Certification page https://www.pmi.org/certifications Last accessed 06 Feb, 2022.

[16] PMP Certification | PMI. https://www.pmi.org/certifications/project-management-pmp

[17] FTQ “Truth in Advertising” regulations- https://www.ftc.gov/tips-advice/business-center/guidance/advertising-faqs-guide-small-business Last accessed 06 Feb, 2022.

[18] This was originally published by PMI Greece Chapter President Theofanis Giotis. I believe his posting has been taken down but the data shown should be easy enough to validate and reproduce.

[19] If anyone wants the Excel file, email me pauldgphd@gmail.com and I will be happy to share it with you.

[20] Glassdoor Reviews of PMI by Current/Former Employees- https://www.glassdoor.com/Reviews/Project-Management-Institute-humiliating-Reviews-EI_IE256669.0,28_KH29,40.htm?sort.sortType=OR&sort.ascending=true&filter.iso3Language=eng .

[21] Glassdoor- https://www.glassdoor.com/employers/blog/why-and-how-you-should-be-using-glassdoor/

[22] NASA Cost Estimating Handbook, Version 4.0. https://www.nasa.gov/content/cost-estimating-handbook

[23] GAO’s Scheduling Best Practices- https://www.gao.gov/assets/gao-16-89g.pdf

[24] GAO’s Cost Estimating and Budgeting Best Practices- https://www.gao.gov/products/gao-20-195g

[25] National Park Service- https://www.nps.gov/dscw/upload/CostEstimatingHandbook_2-3-11_111417_AF.pdf

[26] Characteristics of Scientific Method — theintactone. https://theintactone.com/2019/03/03/brm-u1-topic-5-characteristics-of-scientific-method/