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5 May 2017

The Significance Of Earned Value Management System

By Margaret Scott

The utmost goal of a project is that it accomplishes its objectives, meets its deadlines, and comes under budget. The chances of you hitting the budget and deadline for your next big projects are too slim if you are not using the right management strategies. As you see, problems such as frequent changes in procedures and plans, lack of goals, and unrealistic time frames may destroy the bottom line and consume up time.

Research shows that failed and wrong information technology projects alone may cost agencies and businesses around the world. Although there are no systems that can assure the success of a project, earned value management system helps every organization to measure project progress and performance.

Actually, it offers a great insight to a firm. But, a lot of businesses find it difficult to measure the financial benefits of using the system. Basically, implementing EVM is helpful to keep on budget and stay on time. The good thing is that EVM is known as a systematic procedure to keep track on cost and schedules with all the projects.

Fortunately, this approach is essential as it compares the present state of your projects against the projections allowing you to make critical adjustments that would guarantee success. One important factor to such approach depends on how to check the stage of your plans. Through this, managers will be able to control the budget and time frames at each step.

In order for the system to work for you, you need to spend more time in establishing a realistic time frame and budget. You need to sketch out the entire project from start to finish, account for potential challenges you will encounter, and delegate work to your team on a fair basis. With proper planning, you can set everything for success. Also, adding EVM to the procedure will keep you on top of the game.

By implementing the procedure, it would be useful to maintain the objectives of the business. You will understand where the project stands and how much work the team has done. Additionally, it removes human expectations, emotions, and perceptions. This way, it leaves you a great data that shows you where to stand down the road. Geared with such information, you are now able to determine whether the plans are realistic, so you can decide your next move.

In order for the system to work, employees and managers must accurately and honestly track their schedule and report the progress. With all details and info available to a stakeholder, an employee with good performance will keep the extra effort. Moreover, stakeholders can also be alerted to certain problem areas that will put the projects at risk throughout the implementation and development stages.

For that reason, they are able to make some adjustments to get the plan back on track. Furthermore, they can also avoid the same problems from happening again. The good thing is that EVM helps you catch issues or problems from happening. But more that, it allows you to foresee problems with your schedule and budget so that you can take actions before experiencing the setbacks.

This is eventually a morale booster for all hard working and accurate employees while keeping a good work. Basically, using such system allows everyone to make the team more effective so that businesses can overcome problems, adjust to some changes, and come on time.

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