In this final part of our three-part series on earned value management, a practical primer on how professional services organizations can implement this quantitative approach to tracking project performance, including five fundamental steps to execute EVM on your next project.
Earned value management (EVM) is a methodology employed by many manufacturing and construction organizations to track project performance, but for most of the professional services industry, it represents unexplored territory. It’s definitely worth exploration. Given the project-driven nature of many professional services organizations (PSOs), the business value is significant if these organizations can discover a practical way to implement EVM in their project delivery process.
By definition, EVM is a technique for tracking project performance that is based on three core metrics: Planned Value, Earned Value and Actual Cost. Applying EVM to a project brings about a wealth of valuable data that enables quantitative assessments of financial performance and schedule performance.
Many PSOs consider EVM to be complicated and impractical because the applicability of Planned Value, Earned Value and Actual Cost to their projects is unclear. With the following roadmap, however, EVM can become a practical and valuable reality for