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I often see it listed as desired but not a firm requirement. It can certainly be a differentiator between two candidates with otherwise similar experience levels.
I'd be surprised if this was extended to PMs beyond software development as a product-centric approach may not lend itself to the unique nature of a lot of public sector projects which truly might be "one and done" rather than ongoing care & feeding of value streams or "real" products.
I would agree with Kiron and Keith. I rarely see it as a firm requirement and usually it is mentioned as an asset and scrum master is more valuable probably for IT based jobs but doubt that this is the case for other indudstries.
"Agile methodologies are the way of the future, I know, because I attended a conference and that's what they said (or watched a video)."
All sarcasm aside, I do see a definite trend at the moment of Agile certifications being more valued. Part of it is just that Agile is the "newest" thing that Executive's love talking about, regardless of if they even have a clear understanding of what it actually means.
Regardless, I would suggest that the "perfect" PM would be process & methodology agnostic, and would have a proper understanding of everything out there.
When I was asked to manage my last project, I was asked if I had an Agile certificiation. "No, but I have project management certifications," I replied. (I since got the PMI-ACP.)
I agree with Keith. It seems to be applied to a specific area of practice, e.g., software development.
If the state of MN has a large IT project and make PMP as a requirement, chances are they may not find candidates. They have loosened the requirement and focused more on relevant methodologies and (CSM certification) skills that pertains to IT so that hiring becomes a littile easier. For other industries outside IT, like construction,oil,avaition etc. the PMP is still valuable and is the gold standard with all its best practices, experiences and rich knowledge all over the world. Also, constant feedback is obtained from practicing project managers in the PMI. What a particular state government does in a sector like IT is not so much so relevant and cannot dictate the future trends.
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