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What do we all want
our projects to do?
SUCCEED!
How many projects fail in the uk?
What is a project failure?
We live in a world where we accept this as normal behaviour
We lie or cheat to win business
What is Project Management?
Cost Time Scope
Quality
To Budget
What is the best project management can do?
Status
• It tells us where we are
• How much we’ve done
7
How do we work out where we are?
What if we can’t?
• Build a plan
• Freeze the plan
• Measure progress
1. DEFINE THE WORK SCOPE
2. SCHEDULE THE WORK
3. ALLOCATE BUDGETS TO SCHEDULE
EVM: Performance Measurement Baseline
100
40
60
80
PMB
PMB
TIME
£
CONTRACT BUDGET BASE
MR
0
500
1000
1500
2000
2500
3000
J F M A M J J A S O N D J F M A M J J A S O N D J F
Actual Costs
Budget (Plan) Reporting Cut-off Date
Where are we?
?
Total Project
Budget
• Build a plan and baseline it.
• Calculate physical progress
Physical progress
• How much do I want to spend?
• How much have I spent?
• What have I got to show for it?
0
500
1000
1500
2000
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3000
J F M A M J J A S O N D J F M A M J J A S O N D J F
Work Performed (Earned Value)
Actual Costs
Budget (Plan) Reporting Cut-off Date
Cost Variance
Schedule Variance (Currency)
What does this tell us?
Total Project
Budget
• I planned to spend £1300
• I spent £1500
• I’ve achieved £1100
• I am completing 73p of work for every £1 planned.
• It is costing me £1.36 to earn £1of work.
The Earned Value line
• Is an additional line
• Tracks physical completeness. What has been done.
• It should not be treated as a discretionary add-on.
• It is not possible to manage a project well without it.
• And yet some project managers say they don’t need earned value.
Earned Value is the best way to determine the status of a project.
And yet….
If you don’t know where you are.
How do you manage?
What does project management look like on your schedule??
This is called ? Level of effort.
It means you were there. But you might have been asleep.
It doesn’t say what you did or what you are going to do.
Ban level of effort Call it Project Communication
Every report meeting review is an intervention, political,pyschological
motivational strategic technical Put these communications in the
schedule Then everyone else can see what you do
How you add value
If a portfolio manager does not know the true status of the projects which drive
the portfolio.
Is this OK?
Earned Value liberates you
Because
• With poor status data your job is to fix and defend the data.
• With good status data you and your stakeholders can make good solid management decisions.
• Earned value is not a miracle but it does make good managers better.
EV Or not EV?
Conclusion(almost)
• If project managers focus on becoming professionals with integrity they will always be part of the solution.
• Earned Value status provides the firm foundations portfolios need for effective delivery of benefits.
• If project managers remain ‘pragmatic’ then projects will continue to fail at 73%. And project managers along with their stakeholders will continue to perpetuate the mess this planet and its macro economy is in now and for the foreseeable future.
I think the world is like this.
And this is where I think Project Management is.
But we can change. If we choose to. Now would be a good time.
The REAL Conclusion
What shall I do tomorrow?
1 Find out where you are
2 Find out where you need to be
3 Close the gap
Self Assessment & the EVM Compass
The EVM Compass What is it?
• The EVM Compass provides a mechanism to:
• Assess the current level of operational maturity
– Using a structured approach that is applicable across projects
– Provides a reference point for future improvement
• Establish a target performance level
– allowing the prioritisation of improvement actions to areas that will provide the greatest short term return
The EVM Compass aims to measure current
performance with a view to Improving
Performance
The EVM Compass How was it created?
•EVM Compass developed by the UK Association for Project Management EVM Specific Interest Group
• Sub-group formed to develop model, consisting of individuals from BAE Systems, BMT Hi-Q Sigma, UK Ministry of Defence, OTC Optima, Rolls Royce, Thales and Taylor Woodrow (now VINCI Construction)
Assessed existing EVM Maturity Models (e.g. from BAE Systems)
Developed Compass to ensure applicability upon Projects across sectors
Tested Compass during several Integrated Baseline & Readiness Reviews
Updated & Released Compass for Beta testing
The EVM Compass Components
• Maturity Stages (from LFE) • Introduced based upon experience
during trials • 4 Stages to achieving a mature
EVM system – Establish EVM Foundations – Establish EVM Basics – Execute EVM – Achieve the EVM Goal
• Help provide a roadmap to EVM implementation and help ensure maturity assessment takes into account the stage of the implementation
– E.g. Don’t expect to be managing using EVM when foundations are not established
• 25 “Attributes” are split across the 4 Maturity Stages – Each attribute is scored on a maturity level of 1-5
The EVM Compass Physical Products – Maturity Grid
• Maturity Model • 25 Attributes,
each of which is individually assessed
• 5 levels of performance against each of the Attributes
• Score both the current performance level (“as is”) and target performance level (“to be”)
May 2014
