Earned value management (EVM) is a project planning and management tool that is used to evaluate performance progress and predict potential outcomes. While there are plenty of other project management software options available that allow you to monitor some of these aspects, a specific EVM system gauges the cost, scope, and schedule of a project to best evaluate development and help you make a clear, objective determination of a completed project’s final cost and overall effectiveness.
Exceeding the set budget or going over the planned time are two of the most
common issues faced by project managers when tackling a new project. Fortunately, implementing earned value management can help solve both of these problems and enable you to keep your finger on the pulse of your project every step of the way. And while it may seem difficult to justify the adoption of EVM, there are some clear benefits to using it for your next project.
EVM Has a Proven Track Record
Earned value management has long been trusted by the United States government, the Department of Defense, federal contractors, and even NASA to help ensure that big projects stay on schedule and within budget. In fact, EVM
got its start in the 1960s as a financial analysis tool for U.S. government projects, but it has expanded and improved ever since, making it a popular framework for a range of industries from IT to education to healthcare to the entertainment industry and more. Any project manager who needs to stay on track and in budget can benefit from incorporating EVM.
Help Take Out the Guesswork
Using an EVM software with a combined database will allow you to keep the most accurate tabs on the progress of your project so you can really understand what comes next. There are other ways to try and guess the potential outcomes of a big project, but with EVM, you can skip the guessing and rely on metrics to give you a more specific and detailed measurement of your progress. Imagine being able to stop assuming you’re about 50% done with a project and mostly on budget. Instead, with EVM, you know exactly where you stand. You can start quantifying your project’s performance so far, get a formula-based estimate of the time and money needed for completion, and make any needed changes along the way before you waste any time or money.
Stop a Problem Before It’s a Problem
Perhaps one of the most valuable benefits of using EVM is the peace of mind that comes with realistic project predictions. EVM’s metrics allow you to see a potential problem with time or budget before it occurs, which means changes can typically be made to avoid the issue entirely. Keeping a close eye on a project’s progress with EVM is the most efficient way to not only intervene with a impending setback early on, but also to make any necessary adjustments along the way and even make new predictions for how any changes will impact your outcome. This ensures that you can stay flexible, finding the right fix for any impediment in a timely manner, every time.
Go Above and Beyond the Current Project
Using an earned value management tool is incredibly useful for a single project, but it is also an option that gets even better with time. Like using a
business intelligence (BI) software or adding machine learning to your environment, once you have used EVM for one project, that data can be used again in the future to help make predictions about future projects. EVM allows you the ability to compare similar projects’ outcomes to see what really worked (or didn’t work so well) with past projects, so you can make necessary changes or continue to employ successful tactics.
EVM Offers Flexibility for Any Project
While earned value management is often associated with big, costly, high stakes projects, the reality is that it can be successfully implemented for an array of projects. Any endeavor that requires good time management and attention to budget is one that could be completed more efficiently through the use of EVM. In fact, a great way to approach the use of EVM is to understand that it’s something you are probably using anyway, just in a less resourceful way. Other project management software often offers certain elements of EVM, but without the benefits of the all-in-one method that makes dedicated EVM software so valuable.
EVM Increases Teamwork
While EVM is probably most closely associated with ensuring projects stay on schedule and on budget, there are many more compelling reasons to use it for your next project. Saving time and money are always important, but EVM also allows for an increase accountability among employees since it requires such honest and accurate reporting of progress and time spent. This can also help keep your team motivated since they can see the effect their work has on the project as a whole. And, since EVM is so crucial for catching mistakes early on and making adjustments, everyone involved in the project can work harder knowing that their time is well spent and the project will be a success.
Laura Hudgens is a writer for
TechnologyAdvice.com. She is a communications instructor and freelance writer who studies and writes about technology, media, science, and health.