The Three Deadly Sins of EVM

Mark Mullaly is president of Interthink Consulting Incorporated, an organizational development and change firm specializing in the creation of effective organizational project management solutions. Since 1990, it has worked with companies throughout North America to develop, enhance and implement effective project management tools, processes, structures and capabilities. Mark was most recently co-lead investigator of the Value of Project Management research project sponsored by PMI. You can read more of his writing at markmullaly.com.

Earned value has emerged as an increasingly important tool for the oversight of projects, particularly in the government sector. While it has been applied as a means for acquisition oversight for projects for many years, in the past decade it has seen a growing emphasis. In the United States, for example, the application of earned value management (EVM) principles is required for all Department of Defense projects and all capital investments of agencies within the Executive Branch. Many U.K. government agencies and departments have similar requirements. With the growing visibility of EVM, it is expected that organizations will continue to adopt, utilize and adapt its principles in order to increase oversight of their projects.

Earned value as a concept is relatively simple and straightforward. It essentially asks the question: “For the work conducted to date, what was it supposed to cost?” This can be compared against actual expenditures and budgeted cash flows to be able to support understanding not only whether actual costs are in line with expectations, but whether schedule performance is in line as well. The promise of it is admittedly pretty cool: measure costs, and get a sense of not only budget but schedule performance (with an implicit understanding of scope thrown in for good measure).

While the concept is simple, there are a multiple …

Please login or register below to read the rest of the article.

Members login here:

If you were a member of gantthead.com, you are already registered here--just use the same username and password to login and enjoy the same valuable resources and connections you have come to rely on.

OR

OR

ADVERTISEMENT

Not a member yet? Sign up here:

You must have JavaScript and cookies enabled to use this website. Please enable javascript and refresh this page.
How do I enable JavaScript in my browser? | How do I enable cookies in my browser?
  • required fields
  • First Name
    Last Name
  • Pick a password
    Confirm your password
  • please enter the text below:


  • You must have JavaScript and cookies enabled to use this website. Please enable javascript and refresh this page.
    How do I enable JavaScript in my browser? | How do I enable cookies in my browser?

  • projectmanagement.com is accredited under Return Path's Sender Score Certified™ Program. The Sender Score Certified Program helps to increase successful email delivery by requiring senders to adhere to a set of specific email standards. For more information, please see www.senderscorecertified.com.
ADVERTISEMENTS

"Interestingly, according to modern astronomers, space is finite. This is a very comforting thought--particularly for people who can never remember where they have left things."

- Woody Allen

ADVERTISEMENT

Sponsors