EVM contributes to project success
Earned Value Management is still not used widely, despite being a great way to improve project success. About 40% of the PwC survey respondents use EVM, most of these being based in the United States. Interestingly, that’s not because everyone else doesn’t believe in the value of EVM. Lack of expertise and experience in the tools and techniques is the main reason why companies don’t adopt it. And that’s easy to put right! Nearly 70% of companies don’t have EVM certified professionals, but training project team members is a relatively low-cost and easy thing to do.
The survey highlighted some of the benefits of EVM:
- 62% say that EVM contributes to project success
- 73% say that it’s a useful tool to predict success
- Over half believe that it enables project leaders to assess project status.
In companies where EVM tools are used, projects meet their scope criteria 82% of the time, quality criteria 84% of the time and benefits targets 80% of the time. However, the study concludes that while EVM gives businesses tangible improvements in performance, it does rely on qualified and knowledgeable staff. They have to collect, validate and interpret the data to be able to use it to make informed decisions about the projects. And then they have to use robust project management practices to get their projects back on track. Without project team members who know how to get the best out of EVM, and who know how to manage projects and risks proactively, you won’t see improvements or a return on your investment from implementing it.
Portfolio Management and EVM are two tools that are often considered complicated to implement and requirement management overhead. This latest research from PwC shows that you can gain significant organizational benefits from deploying both Portfolio Management and EVM, and that people are the key to getting it right. Supporting your teams to adopt these new ways of working will improve project success rates, increase satisfaction with your project management capabilities and ensure that your business has that extra competitive advantage.