Wednesday, May 21, 2014

Obtaining EVMS Compliance When Management Can't Even Spell EVM.

In this scenario, not only does the Project Management Office or Project Controls group have to educate management and manage up, they also have to get management to understand the requirements for implementing a certified Earned Value Management Systems (EVMS).  Frankly, I’d rather have a root canal.  An uneducated department manager could be overwhelmed by the ANSI/EIA-748 criteria, and may struggle with fully comprehending the effort and cost of putting together the EVMS.  As a Lieutenant Commander in the Navy once asked me, “Good grief, what do the budget weenies want THIS time???”, you may encounter some resistance.  Convincing management to spend so much time and money on this effort, and then attempting to get the department/senior manager to USE the data for managing is no small feat!

EIA/ANSI-748  Earned Value ManagmentSometimes management will listen, or give more credence, to someone from the outside.  This is a perfect situation where the organization may consider hiring a consulting firm to lead and manage the effort.  Getting management to fund the consulting firm could be difficult at best.  Again, they may see the EVMS as some fancy accounting or scheduling system.  They may fail to realize it is the integration of the data and their number one tool for managing and communicating their project performance.  In this case, leverage the fact that the ANSI/EIA-748 is a stringent set of requirements put in place by the client.  An outside firm can also share their prior experience with implementing a certified EVMS, which will show management that the CAM training, procedural requirements, and system design will take quite a bit of effort and cannot be minimized. 

Now that they know they have to implement some kind of EVMS, be aware that management may be inclined to opt for the simplest, quickest, and cheapest way to implement the 32 criteria.  Not surprisingly, they may also buy cheap software packages that cannot be easily integrated.  They could create Mickey Mouse procedures with no teeth, and severely limit CAM training.  However, eventually this quick and dirty implementation will be inadequate to monitor the performance of the project(s) and the client will see the shoddy planning and implementation of the EVMS.  They risk not passing their EVMS certification requirements, not to mention losing face with the client.  Then the company may be forced to redesign the system and buy more robust software to enhance integration, which also means they’ll have to transition from the existing design and software of the EVMS.  The transitioning effort can be especially taxing considering the development of crosswalks for the historical records that still need to be maintained.  They may also have to re-write procedures and train CAM’s and Project Controls again.  Show them the risk of this rework and quantify it with time and money impacts.

So, why not just design it correctly up front?  That’s the key, to educate management in such a way that they really comprehend the complexity of the design and the maintenance requirements.  Remember, it is a system.  Any changes or impacts to one area of the system is likely to flow into other areas of the system.  This shared structure and ripple effect makes it important to plan, design, and implement carefully.  One way to demonstrate the interconnectivity of the system is to use a whiteboard and place sticky notes for the various elements in the system.  Then draw lines or arrows to show how the data flows from one system to the next.  This is an old fashioned, but simple, way to outline the beginning of your system architecture and interface mapping.  Start with the shared elements and pay additional attention to their interfaces.  This includes the WBS, OBS, resources, andrate tables; all of which must be consistent within each software tool.  This is where a consulting firm would start in designing your system and it will allow for a more seamless integration.  That translates to fewer headaches and more meaningful data outputs—directly correlated to time and money, which is something management will understand as long as you communicate it. 

As I’ve said before, treat your EVMS design and implementation as a project.  Remember Pareto’s Law of Project Management: 80% of the time and resources on a project are spent in the first and last 10% of the project.  Don’t be afraid to spend the time to plan, engage, and educate management so they can appreciate the need to spend time and money upfront.  I keep mentioning time and money impacts and that’s for a good reason.  Most managers speak time and money language, so while they may not understand the EVMS or its requirements, they will understand the risk of improper design and implementation if you speak their language.

Do you have experience in implementing an EVMS when management can’t even spell EVM?  What were your results and what additional actions would you recommend for success?

Our next post looks at IPMR reports and saving both time and money.  

- Melissa Duncan (About Melissa)


Read the previous posting Earned Value Exposed: How to Get Management to Not Only Buy-In to EVM, but Drive It...

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Earned Value legend as there may be a few of us that don’t yet have this memorized…
PM=Project Manager
PC=Project Controls
CAM=Control Account Manager
EVM=Earned Value Management
EVMS=Earned Value Management System
WBS=Work Breakdown Structure
OBS=Organizational Breakdown Structure
IPMR=Integrated Program Management Report


Tuesday, May 6, 2014

How to Get Management to Not Only Buy-In to EVM, but Drive It...

Traditional business schools teach their students about finances and accounting.  When I obtained my business degree, I had not even heard of Project Management or Earned Value.  Those words were not spoken in my degree program.  So, imagine my surprise when I was hired as a Project Controls Engineer straight out of college.  Earned Value is performance??  What does that have to do with the bottom line and accounting, I wondered?  What is this performance stuff they are talking about?  How do we measure it?  And I had no idea that Project Management was any different than traditional business models.  I had a lot to learn, to say the least!

Once I was thrown into this world and learned all about those topics, I began to see the value of these approaches and could not believe that I had been duped by my university!  Shame on them for not teaching me about these wonderful tools!  Then I found out that the “science” of Project Management and Earned Value was relatively new, comparatively speaking.  So I forgave them.  And pursued my Master’s of Science in Project Management from a university that knew a thing or two about it.

Many managers have not been so lucky.  They still think in terms of traditional business models and haven’t been exposed to Project Management and Earned Value.  The concepts are not always intuitive and they feel foreign in comparison to the rest of the business tools taught.  So, as a Project Controls Engineer or Project Manager, you will have to educate them and show them the value of these “new” tools.  But there’s a catch: You don't want management to just buy-in to EVM.  You want them to DRIVE it.  It must become ingrained in the culture for it to work properly.  Simply "supporting" EVM does nothing in the grand scheme and it will ultimately fail to impact business decisions.  That means inspiring a certain level of passion in the department and senior managers.  Find a manager that can act as your advocate; one with enough clout to influence the other managers.  Inspire this person or group of people by presenting the value of Earned Value over traditional spending variances and business models.  Demonstrate the impacts of the early warning signs indicated by Earned Value—which will directly affect their bottom line.  Then show them which companies and industries have adopted it, and the requirements for it on certain government contracts.  Finally, come up with a business plan for implementing an EVMS that is timely and cost effective.  Do your research, find the most appropriate software for your business needs, and make it clear the return on investment is so great that they can’t possibly say no.

And if you don’t succeed the first time, give it some time and try again.  Maybe a new manager will come in and you can persuade him or her.  In the meantime, develop some of your own rudimentary Earned Value metrics and talk about them in your project status meetings.  Don’t be afraid to ask Earned Value related questions, such as “How much work has been completed for the money we’ve spent?” and “How much work was supposed to have been completed by now?”  Eventually, someone will take notice and realize they cannot answer those questions with empirical evidence, and that you just might be on to something.  That’s when you kick open the door and show them what Earned Value Management can do for them.

Post your comments about your experiences with implementing an Earned Value program. How have you "managed up" in the past?  What are your experiences with convincing management to start using EVM?

Our next post looks at obtaining EVMS compliance when management can't even spell EVM.  

- Melissa Duncan (About Melissa)


Read the previous posting The Five Key Ingredients for Successful Automation of EV

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