The training budget is one of the first to be slashed in a troubled economy, leaving managers searching for ways to make the most of the training dollars left. One might be inclined, especially in this case, to splurge on a cheap program that yields no be
by Site Staff
December 1, 2003
With that said, it is time to reintroduce a successful training tool that is too often overlooked in today’s business world: certification programs. Certification programs are well known in all business functions, but they are probably the most misunderstood form of professional development. Through examinations, certification programs verify that the certification holder fully comprehends the knowledge presented. Most certification programs also require continuing education so that knowledge stays current. Furthermore, certifications themselves are usually tied to a specific job function.
There are currently more than 75 specialty certifications available today in the business field. Perhaps the most recognized certification is the Certified Public Accountant (CPA). In order for someone to practice as a CPA, the person must hold a license issued by a state board of accountancy. Each state has its own requirements for licensure. CPAs are accountants who have received a “broad-based education,” which certifies not only that they know the finer points of accounting but also that they can see the entire picture “of the internal and external factors that impact how a business operates”. (See “Becoming a CPA,” American Institute for Certified Public Accountants, www.aicpa.org/nolimits/become/index.htm.) The American Institute for Certified Public Accountants (AICPA) is the national membership organization for CPAs and thus sets ethic standards and provides networking opportunities, among other services.
There are several certifications in the financial field, and it is nearly certain that there is a certification for almost every function in business. Certifications can range in subject matter from a very specific job function to general business management. (See Table 1 for a listing of certifications.) The Certified Business Manager (CBM), sponsored by the Association of Professionals in Business Management (APBM), illustrates the generalized certification. Based on an MBA curriculum, the CBM exam tests 10 essential areas of business and, most importantly, how they relate to one another. This, combined with continuing education, allows CBMs to make more effective managerial decisions because their knowledge base is broader than that of functional specialists.
Table 1: Certifications and Their Subject Matter
Certification | Sponsoring Association | Function in Business | Web Site |
Certified Business Manager (CBM) | Association of Professionals in Business Management (APBM) | General Management | www.cbmexam.com |
Certified Computing Professional (CCP) | Institute for Certification of Computing Professionals (ICCP) | Information Technology | |
Certified Fraud Examiner (CFE) | Association of Certified Fraud Examiners | Accounting | www.cfenet.com |
Certified in Production and Inventory Management (CPIM) | APICS—The Educational Society for Resource Management | Manufacturing | |
Certified Information Systems Security Professional (CISSP) | International Information Systems Security Certification Consortium (ISC)2 | Information Technology | |
Certified Management Accountant (CMA) | Institute of Management Accountants (IMA) | Accounting | |
Certified Public Accountant (CPA) | American Institute for Certified Public Accountants (AICPA) | Accounting | |
Certified Purchasing Manager (C.P.M.) | Institute for Supply Management (ISM) | Supply Management | |
Professional in Human Resources (PHR) | Human Resource Certification Institute (HRCI) | Human Resources | |
Senior Professional in Human Resources (SPHR) | Human Resource Certification Institute (HRCI) | Human Resources |
Source: Association of Professionals in Business Management (www.cbmexam.com/certificates.htm)
Now that it is clear what exactly a certification program entails, it is imperative to explore how they make exceptional training tools. Certification programs have always been considered a method for professional development, but they also offer a variety of benefits to the employee and the organization that are considered a basic criterion when searching for a training program, such as:
- Measurable results.
- Current information.
- Content and skills.
- Audience participation.
How many seminars, lectures, videos, etc. have you or your employees sat through in the past year? Furthermore, how much did you learn and then implement in your daily professional life? The only way to see if these programs had any impact at all is to either take a survey of the participants, which is not always the best method to obtain the impartial data, or watch those employees closely to see any change in pattern, an idea that is both unpractical and unrealistic. Most certification programs, on the other hand, require applicants to pass a standardized exam before certification is granted. Therefore, you are able to see how much of the information is actually being absorbed and thus achieve measurable results.
Beyond the exam (which is usually updated every few years to reflect any changes within the field), each person who is certified must adhere to continuing educational requirements. These requirements make sure that the certification holder is current on the latest trends and developments in the area of their certification. Thus, the information in which they have been previously tested will remain up to date.
That brings us to the content of the certification. You have already seen that the information is measurable and current, but what about the subject matter of the program? One popular myth about training programs is that they focus only on soft skills, e.g., time management, conflict resolution and leadership. Soft skills are important, but the further development of hard skills (accounting principles and their applications for instance) in an employee often goes unattended. Hard skills are practical, functional and more tangible than soft skills and can be learned in many different arenas. One could attend a seminar, but we have already discussed how that might not lead to the most productive and measurable outcome possible. Or they could pursue a degree, which can be time-consuming and a financial burden. However, certification programs offer hard skills with less of a time commitment than a degree and more participation and positive results than a seminar.
Another myth is that certifications are so specific in content that they can only be beneficial to a select few. Certifications in specialty areas help ensure that your workforce is completing its work accurately by providing an accepted method for conducting that aspect of business. Furthermore, the associations that sponsor the certifications provide a network for members to seek out advice, brainstorm and find support within their field. “Being a Certified Internal Auditor (CIA) demonstrates a professional practitioner’s competency, knowledge, experience and character,” said Bill Bishop, president of the Institute for Internal Auditors (the sponsoring body of the CIA certification). “At a time when consumer confidence is at a low ebb, such a demonstration of professionalism is extremely appealing—not only to the practitioner, but also to executive management, the board and the stakeholders at large.” And if you still are uncertain about specialty certifications, you could choose a generalized program, like the CBM.
Now, an often-overlooked requirement: audience participation. Participation in a training program is often a requirement that is ignored and is not given enough weight when deciding the best programs for employees. The bulk of today’s training dollars seems to be wasted on programs that do not evoke participation from the employees and might not be beneficial to them in the long run. Engaging the participants is what will make them take interest, especially if they have to put forth their effort and time into making the program work. That is what certification programs do. The employees have to study since they must take and pass the exam, and they have to keep up with the continuing education to keep their certification current. It is their time and energy going into the program so they will work hard to get the most out of their experience.
We have shown that a certification can achieve all the goals associated with a training program and more. Now let’s switch our focus to see the latest trends in membership for the associations that sponsor these certifications. Normally, in a down-turned economy, membership numbers would drop simply because people do not have the money to earn or maintain their certification, no matter how insignificant the membership dues or continuing education may cost. However, we have been noticing trends where certification numbers are actually increasing.
“Many associations are experiencing a decline in membership in the current economic climate, and if they hold their membership at a steady number, they may feel that they are doing quite well,” said Kurt Wehrs, director of member services, Association of Certified Fraud Examiners (ACFE). “We are experiencing an increase in membership because our constituency needs more knowledge and practical tools in their field. Professionals need to keep up to date and equipped with current solutions, and they find in certification programs, and the associations that sponsor them, to be an effective way to achieve that goal.”
The Project Management Institute (PMI) has seen an increase of 36 percent of the Project Management Professional (PMP) certification in the past year alone. “PMI’s certification program is gaining significant recognition and attention as demonstrated in the increase of individuals receiving their PMP certification over the past five years. In 1998, PMI had just over 10,000 certified PMPs. PMI now has just over 60,000 PMPs worldwide in 120 countries. The growth of the PMP certification program is evidence that the certification helps ensure that project management practitioners have the requisite knowledge and skills that employers are looking for in today’s economy and job market,” said Denny Smith, Ph.D., manager of certification for PMI.
Table 2: Certification Statistics
Sponsoring Association | Certification | 2001 | 2002 | % Increase |
Association for Investment Management and Research (AIMR) | Chartered Financial Analyst (CFA) | 86,421 | 101,787 | 18% |
Association of Certified Fraud Examiners (ACFE) | Certified Fraud Examiner (CFE) | 24,000 | 28,000 | 17% |
Association of Professionals in Business Management (APBM) | Certified Business Manager (CBM) | 591 | 2,263 | 283% |
Institute of Internal Auditors (IIA) | Certified Internal Auditor (CIA) | 35,732 | 40,212 | 13% |
Institute for Supply Management (ISM) | Certified Purchasing Manager (CPM) | 38,400 | 40,000 | 4% |
Project Management Institute (PMI) | Project Management Professional (PMP) | 38,629 | 52,443 | 36% |
Institute for Certification of Computing Professionals (ICCP) | Certified Computing Professional (CCP) | 48,300 | 49,533 | 2.5% |
Human Resource Certification Institute (HRCI) | Senior Professional in Human Resources (SPHR)/Professional in Human Resources (PHR) | 54,000 | 60,000 | 11% |
While certification numbers are on the rise, it seems that they are still unfamiliar to personnel in the training departments. Certifications are an effective training tool, and individuals are seeking them out more often. It is a wonder that certification programs are not used as training tools more often since they offer the key benefits and goals associated with more mainstream training programs. It is time to be more flexible with your training budgets and offer certification programs as an option to employees since everyone (including the company) will benefit from the skills acquired from a certification program.
Professor S. Rao Vallabhaneni (www.cbmexam.com) is an educator, author, publisher and practitioner in the business field with more than 25 years of management experience in manufacturing, finance, auditing, accounting and information technology. Most recently he taught at National-Louis University, Chicago, in the College of Management and Business. Vallabhaneni currently holds 23 professional business certifications.