One of the most common myths about EVM is that it is too complex and time-consuming to implement and maintain. Some project managers may think that EVM requires a lot of data collection, calculation, and reporting that will distract them from the actual work of the project. However, this is not true. EVM can be adapted to different levels of complexity and detail depending on the size, nature, and needs of the project. EVM does not have to be a burden, but rather a tool that helps project managers plan, monitor, and control their projects more efficiently and effectively.
EVM may seem complex at first, it becomes invaluable once mastered. Its structured approach provides precise insights into project performance, aiding in informed decision-making and enhancing overall project control.
A common myth is that EVM is too costly and complex, especially for smaller projects. The NDIA IPMD EVMS Guideline Scalability Guide counters this by showing how EVM can be adapted for any project size. This guide provides a framework to scale down EVM, tailoring processes like project organization, scheduling, budgeting, accounting, and performance management to smaller projects. By adopting simplified EVM aspects, smaller projects can effectively reduce overhead, enhance flexibility, and improve project oversight. This dispels the myth that EVM is only for large operations, demonstrating that smaller projects can gain from EVM's structured project management approach without the complexity or costs associated with larger implementations.
I have always said in my tenure as PM that if you know your project, then EVM is like rolling off of a rock. If you do not know your project, EVM will show you the boulders in your way of success.
Earned value is a tool that looks at money over time. Each project has 3 constraints: people, money and time. EVM looks at costs (money) for each task within a project. If used well, you can see how much is spent within each task for each time period baselined in your project plan. The major benefit is to see if you are overspending, on track, or underspending on a specific task for a certain period of time. Many managers would like to see this number hidden as it can show inefficiencies or issues (usually within engineering of projects). Engineering something new is open to many issues (gotcha's). Here EVM can be seen as a negative. But in the end, if EVM is used and documented, it can assist new projects with better estimates.
Like all things in project and program management, it is essential to tailor the approach to fit the organization's PM practices and culture, considering the size and complexity of the project. EVM helps to focus on the most relevant metrics and processes.
Costly and complexity are two reasons you get push back from implementing EVM. But if your project is managing the schedule, budget, and estimates, which they should be doing already, EVM simply puts it all together and delivers variances to the plan. I always let the team know that variances are not inherently good or bad, but simply a way to manage by exception. Earned value management simply drives you to the WBS or Control Account that needs attention.
Another myth about EVM is that it is only suitable for large and long-term projects that have a fixed scope, schedule, and budget. Some project managers may think that EVM is not applicable or useful for small and short-term projects that have a flexible or agile approach. However, this is not true. EVM can be used for any type of project, regardless of its size, duration, or methodology. EVM can help project managers measure the value delivered by their projects, track the changes and deviations from the baseline, and adjust their plans and actions accordingly.
I Believe is a tool or technique that can help seeing Time & Cost overlaid on each other to give wholistic view on project. May companies fail to focus on Schedule & Cost concurrently and review together. EVM helps in solving that problem, however assumptions has to articulated and derived in a manner that give more sense to EVM Output.
EVM is useful on all sized projects, when used effectively. To me, the key to EVM is understanding the reasons for the variance rather than concentrating on the value or percentages of variance. EVM should be used to highlight areas within a project or portfolio that have higher than expected or anticipated variance, then take time to identify why the variance is there and how the variance is being managed. I think it should be written EV-M, to highlight the separation, and importance, of management from just the Earned Value figure.
Anything you can scope out with a timeline, focused on the cost to complete, and the scope of a project, can benefit from EVM.
A third myth about EVM is that it is only focused on cost and schedule aspects of the project and ignores the quality and scope aspects. Some project managers may think that EVM is not relevant or accurate for measuring the value and benefits of their projects, especially if they involve intangible or qualitative outcomes. However, this is not true. EVM can also incorporate quality and scope indicators into its analysis and reporting. EVM can help project managers align their project objectives with the stakeholder expectations, ensure that the project delivers the desired results, and evaluate the return on investment of their projects.
Do not ignore what makes a milestone successful. If these are just events in time, not quantified by what is the meaning of success, you are fooling yourself into a lull of completion.
I hear that EVM is rear-window-looking and only focused on identifying cost and schedule variances. But suppose you are truly analyzing the project metrics. In that case, you can see if the Estimate at Complete (EAC) is reasonable based on prior performance and how accurate the forecast has been over the period of performance. Simply sitting with a Control Account Manager (CAM) and talking through their EAC and how it compares to TCPI and the independent estimates can be eye-opening.
A fourth myth about EVM is that it is a standalone technique that does not need to be integrated with other project management processes and tools. Some project managers may think that EVM is sufficient and independent for managing their projects and do not need to use other techniques such as risk management, change management, or communication management. However, this is not true. EVM is not a substitute or a replacement for other project management techniques, but rather a complement and a support. EVM can enhance and improve the effectiveness of other project management processes and tools by providing valuable information and feedback.
Indeed, while EVM offers a robust framework for measuring project performance, it alone is insufficient for comprehensive management. This underscores the need for broader implementation of EVMS, where the 'S' stands for 'system.' EVMS integrates EVM with key disciplines such as risk management, change management, stakeholder communication, and more, forming a cohesive system. This integration ensures that while EVM provides the data needed to assess project health, the broader EVMS framework supports effective decision-making and communication across all project areas. Thus, EVMS is not just about tracking budgets and schedules; it’s about creating a holistic approach that enhances strategic alignment and operational effectiveness.
I like to look at things in the same manner as I try to teach them, starting with the least common denominator. It is my opinion that we tend to make metrics that are presented to decision makers more important than the work itself sometimes. EVM can add to this process if not looked at in the perspective of the value that it provides. I know people who make a career out of being a EVM SME. The usual tactic is to make EVM appear difficult at first glance to make themselves look important. I am not a fan of this process. EVM is a funded amount of money allotted to each task within a project. Each task is spread over time. Therefore, the value EVM provides is a budget tool to compare expected costs throughout each task of a project.
A fifth myth about EVM is that it is a magic bullet that can guarantee the success of any project. Some project managers may think that EVM can solve all their project problems, prevent all their project risks, and ensure all their project outcomes. However, this is not true. EVM is not a miracle solution or a panacea for project management. EVM can help project managers make better decisions and take corrective actions, but it cannot eliminate the uncertainties and complexities of project environments. EVM can facilitate and enable project success, but it cannot ensure or guarantee it.
There is no magic bullet when it comes to project management, but if you are controlling scope, managing an Integrated Master Schedule (IMS), tracking performance, and updating the EAC, then there should not be big surprises. Throw in risk management and solid change control and you have a great process for making better decisions and implementing corrective actions.
A sixth myth about EVM is that it is a one-size-fits-all technique that can be applied to any project in the same way. Some project managers may think that EVM has a fixed and universal formula and method that can be used for any project without any modification or adaptation. However, this is not true. EVM is not a rigid and inflexible technique, but rather a flexible and adaptable technique. EVM can be customized and tailored to fit the specific characteristics and requirements of each project. EVM can be adjusted and modified according to the project scope, schedule, cost, quality, risk, change, and stakeholder factors.
Tailor, tailor, tailor. Obviously, you don't need the same manner of control on a one-year, production project, as you do on a 15-year, multi-billion dollar development contract. That's where tailoring comes in and ideally, you should look at what is required to meet the deliverables and set the business cadence at the beginning of every project.