Earned Value Management—An “Overhead” View (PART 1: EVM Basics)
Despite being one of those topics that put project management students into the doldrums, earned value management remains the most effective way for monitoring project performance. It is a project management methodology used by the U.S. Department of Defense and by many private companies all over the world. Besides a PMBOK chapter and the U.S. Department of Defense EVM Implementation Guide, many other resources cover this topic.
This article—structured in two parts—outlines earned value management in an attempt to provide a starting point for anyone interested in exploring the topic or wanting to decide if it is something his or her organization might use.
EVM, EV, EVA, and EVMS—Not Interchangeable Acronyms
According to the authors of the PMBOK, earned value management (EVM) “integrates project scope, cost, and schedule measures to help the project management team assess and measure project performance and progress.” EVM is a system for project management control that uses earned value as a criterion.
PMBOK defines earned value (EV) as “the value of work performed expressed in terms of approved budget assigned to that work for an activity or work breakdown structure component. It is the authorized work that has been completed, plus the authorized budget for such completed work.” (more…)
One of the first things project management students learn is that a project’s cost, time, and scope are interdependent. These three project constraints form the iron triangle. If one constraint changes, the other two change as well. For example, adding extra features to a product costs more and takes more time. Although the iron triangle was a measure of project success for decades, it is no longer so. Yet the iron triangle is not obsolete.
“Death march projects are the norm, not the exception,” says Edward Yourdon, the author of the Death March, a book about surviving highly stressful, irrational projects in the software industry. Many organizations promote “death march” projects – those with unrealistic goals and schedules – to keep up with the competition in their respective industries. As a result, project teams work overtime to meet unrealistic goals and schedules, sometimes with insufficient resources, only to reach the burnout phase. The productivity declines, the absenteeism rate increases, and the team is unable to meet requirements. A burnout team means that the employees’ job satisfaction diminishes and that they cannot perform their tasks and meet deadlines. The consequence is a failed current project and a high probability of failure of the next project.
More than half of what an organization spends on a project is at risk due to ineffective communication, warn the authors of PMI’s
Why hire a project manager for running a small project? “The team can multitask; they just need to organize their workload.” “The project is simple; the team needs no leadership – they just need to get the work done.” “We can spare no money; a project manager is a luxury we cannot afford.”
Unavoidably, some knowledge is lost, but your project team members can skip “reinventing the wheel” if you employ knowledge management. Although this comes at an extra cost, your team does not need to retain all knowledge because most of it becomes outdated or just impractical sooner or later. You want to retain the essential knowledge that can help you run smoothly your current and future projects. Since the team’s composition during a project’s lifetime may vary, knowledge transfer is imperative.
It is almost a consensus that good project managers need both soft skills and hard skills. Without soft skills, project managers cannot lead their teams; without hard skills, they cannot lead the projects. Soft skills, also called emotional intelligence, include skills such as communication, problem solving, negotiation, leadership, and influencing. Hard skills in project management refer to the ability of applying the right tools and techniques to run and successfully complete a project.
People can work together even if they do not trust each other, but only people who trust each other can collaborate efficiently. Project managers who do not trust their teams tend to
Being a diligent project manager is a quality, just like being detail-oriented is an advantage in most professions. Over-diligence, just like perfectionism, is desirable in some situations, while in all others over-diligence becomes an obstacle in the way of
As any internationally recognized certificate from a reputable institution, CAPM® is not just a piece of paper, although if it were, it would be the kind that can get you shortlisted for an assistant project manager position.