Virtually none of the Earned Value Management consulting companies address the real challenge in implementing Earned Value Management systems…Adoption. There are some practitioners who talk about cultural change, but they tend to have a narrow focus on getting executive sponsorship. This sponsorship is essential but in no way guarantees success.
There are a number of software tools that can assist in the integration of cost and schedule that is needed for Earned Value, some examples are those from Primavera, Deltek, and Microsoft but adopting Earned Value Management is not just simply deploying a new software system. It has to be a top down change in how a company does business, and it has to be adopted across the organization. Here are a few things to consider when implementing Earned Value Management.
EVM Implementation Plan
- Before Implementing Earned Value Management understand the ANSI/EIA-748 guidelines. Make sure you have experts on staff, if you don’t train some or hire some.
- Once you understand the ANSI/EIA-748 guidelines do a Gap Analysis to determine your company’s needs, consider your software, business processes, and skills/experience of your team members. Develop your plan of action on how on how to fill the gaps identified in your analysis. Consider having an external organization with EVMS expertise help you with the Gap Analysis.
- Identify your stakeholders and assign responsible parties to execute your plan.
- Look at implementation efforts for other similar initiatives in your organization. Utilize the experts within your organization and within the field.
- Does your EVMS have to be certified? If so, who is going to lead that effort and own the EVM System Description?
- Do you have to be ready for an Integrated Baseline Review? Getting your CAMs and other team members ready for this can be a major effort.
People / Organization
- Do you have a matrixed organization? Who has more authority, functional managers or program managers? Almost all aerospace companies, and many other DOD contractors, have moved to a "strong" IPT model, in which functional stovepipes are almost completely eliminated in favor of product teams organized around Programs. EVMS requires that CAMs have direct authority over the resources and that the Program Manager has direct authority over the CAMs.
- Being successful at EVMS is heavily dependent on having good Master Schedulers.
- Running people through Training classes does not guarantee Adoption. Contextual Training, followed up with Structured Coaching, mentoring and measuring results should always be included.
- Find someone who has implemented Earned Value Management before and bring them in as part of your team. Support users with information that illustrates “A Day in the Life of” their role. Make it accessible and contextual.
EVM Processes
- Determine your monthly business rhythm. How are you going to execute Earned Value Management? What are your contractual deliverable and reporting requirements?
- Build EVM processes so they can be mapped to your organizations roles and to EVM work products.
- Standards. Identify where consistency is needed across the organization (e.g. standard reports, resource names, or calendars) and provide templates or approaches that make it easy for project managers to use these and get started quickly.
- Define the minimum level of reporting detail for the organization.
- Start by keeping reports simple and add more detail as they get more experienced.
EVM Tools
- Acquire Earned Value Management software that maps to your business. Don’t assume an analyst who doesn’t know your culture, business or current situation knows what you need.
- Don’t assume that the system with the most ‘bells and whistles’ will work for you.
- Evaluate potential software against use cases. If you can’t build use cases, then you are not ready to look at software.
- Not having defined requirements kills many software projects
- Do not leave old overlapping systems in place. Ensure that double data entry is eliminated and that there is no room for two sets of books.
