4 Major Misconceptions about Earned Value Management

Even those deeply familiar with the ins and outs of various project management approaches are often mystified by Earned Value Management (EVM). Because it’s a specialized type of project management, many people in the industry have had little or no opportunity to explore and experiment with it. That lack of experience fuels myths and misconceptions about EVM, which in turn makes project managers reluctant to give the approach a try. It’s a self-perpetuating cycle.

There are four major misconceptions we commonly hear about EVM. By breaking them down, our hope is to clear the path for more project management professionals to come into the EVM fold.

Myth: Installing specialized software = practicing EVM

Specialized software, or Earned Value Management Systems, can be an important factor in creating a successful EVM practice at your organization, but this is far from the only piece that’s necessary. The software is helpful, but EVM is more about a broader mindset and approach, which makes cultural change a key contributor to success.  

Myth: EVM is overly complicated

Given EVM’s history of use in industries like government, construction, defense and engineering – and because the approach often requires some adjustments to how teams are used to working – people often assume that EVM is complicated, frustrating and not worth the while. However, the opposite is true: EVM is an adaptable and flexible methodology. If the team commits to the cultural change needed upfront, the time investment will pay dividends.

Myth: Only government agencies use EVM

The myth that EVM is overcomplicated tends to go hand in hand with the assumption that only government agencies use this method. While the government was certainly the catalyst for EVM’s inception, the approach is relevant for nearly any field. Organizations in other industries are learning the benefits of tracking variances using EVM and realizing the ability to predict costs successfully.

Myth: EVM is not sustainable over the long term

When project managers believe that EVM is highly complex or only suited for government work, they often also believe that the approach does not work for long-term projects. In reality, EVM is actually a very sustainable methodology. Long past the initial launch, teams continue to benefit from the flexibility EVM offers; extended forecasts and the level of detail far outweigh any initial frustrations caused by the learning curve associated with EVM.

If your organization is considering switching to EVM, give us a call – we’d love to help you start your journey.