A study on the effective implementation of earned value management methodology

For several decades Earned Value Management (EVM) has been applied largely by the agencies of the US Government in their large acquisition programs. However, due to increasing current global competition and rapid technological developments, greater use of EVM has been seen by many organizations as a way to achieve better control of their projects and, hence, better performance. To assist in applying EVM more efficiently to projects in various industries and government agencies, this research primarily addresses two questions: (1) How might a general model or framework, including a set of practical guidelines, for establishing and implementing EVM methodology within organizations be designed? and (2) What types of modifications, if any, to the general model and guidelines may be necessary for application in different types of organizations (e.g., public and private; large and small projects)? As part of the research, six site visits entailing in-depth individual case studies as well as a 2,500-person survey were carried out along with a comprehensive literature review. The data sources included national EVM experts, renowned researchers, and project managers. Several significant findings arise from this study. Among them are (1) Current EVM methodology is in the midst of rapid changes and the existing scholarly literature is not fully in touch with what is happening in the EVM methodology area; (2) A broader approach to considering together four factor groups (i.e., EVM users, EVM methodology, implementation process, and project environment) as reflected in the model developed during this research can significantly improve the acceptance and performance of EVM; (3) No significant difference was found in applying EVM in projects of different sizes or types. Rather, the best practice is to allow flexibility to project managers to design their own EVM applications within overall guidelines; (4) As part of the model developed from this research, more than twenty specific guidelines were identified for project managers to adopt for the better implementation of EVM; and (5) Significant improvements in the acceptance and utility of EVM appear to be arising from rapid developments in information technology—in the form of advanced computers, sophisticated software, and electronic data interchange.