1. Implementing EV in IT A Three Step Approach John Chapman Touchstone Ltd

2. EV in IT
Implementing Earned Value Management requires a change of working practice. Not only do Project managers need educating in EV but
Project accounting has to be setup to track the
financial values
Project delivery methods have to take into account
how to ‘Earn the Value’ i.e. how do we evidence
that we have completed the deliverable by type of
work
Tools implemented to track items such as Schedule
Variance against baseline plan

3. A way of approaching
Instead of trying to achieve all these at once a proposal is to split this into three levels representing three levels of maturity
Level 01: Focus on the financial values
Level 02 : Implement changes to the delivery
method so the BCWP can be calculated (i.e. how are
you going to earn the value by the type of work)
Level 03: Track schedule variance, SPI, TCPI and
so forth

5. Level 01: The Financials
Work out how you are going to calculate 8 elements:
ACWP
BAC CV
CWBS (do your PMs produce a WBS?)
EAC
ETC
PMB

6. Level 01: Planning From a planning perspective you need:
Planned time (for each WBS element)
Actual time (by WBS)
Remaining effort (so you can calculate ETC)
Baseline (to calculate the spend over a period of time)
Planning package (so you know what to do when)
Work Package (to get individuals to do their work)

7. Level 01: Planning From a planning perspective you need:
Planned time (for each WBS element)
Actual time (by WBS)
Remaining effort (so you can calculate ETC)
Baseline (to calculate the spend over a period of time)
Planning package (so you know what to do when)
Work Package (to get individuals to do their work)

8. Level 02: Earning the value
This takes more work as for each activity you need to define how you are going to ‘Earn the value’
Is it going to be
50 – 50
Budget Milestone
100 – 0
etc

9. Level 02: Earning the value
For example on an IT Project
Training is : either you are trained or not trained!
Design could be by budgeted milestone
25% on completion of a design workshop
50% on issuing a design document
25% on design signoff

10. Level 02: The financials There are 6 elements to this: BCWP (Earned)
BCWS (Planned)
Cost Variance %
CPI
Management Reserve
Undistributed budget

11. Level 02: Planning From a planning perspective you need:
Duration Variance
% Complete
how are you going to identify the physical % complete?
What skills do your team need to say whether they are 50% or 60% complete?
How will this be proved?

12. Level 03: The financials
At level 03 we are calculating values compared to time and productivity SV
SV %
SPI
TCPI

13. Level 03: The financials
The TCPI ‘provides a projection of the anticipated performance required to achieve either the BAC or the EAC’1
The TCPI might tells us what we need to do – but how are we going to achieve improvements in Productivity? 1.

14. Summary Level 01: is about calculating the financial values
Level 02: is about confirming the method of ‘earning the value’
Level 03: is about understanding the schedule and changes to the schedule