How Earned Value Management Differs From Other Project Management Scenarios

Depending on your experience, the phrase “earned value management” can conjure up feelings of uncertainty or excitement. If you don’t have much experience with the approach, you may picture a cumbersome process that’s hard to integrate into your project. But if you’re an EVM veteran, you may see a field of opportunity. 

EVM dates back to 1958, when the U.S. Navy created the Program Evaluation and Review Technique, EVM’s precursor. While still in the project management sandbox, EVM is an approach all its own. Understanding how EVM differs from other project management approaches can erase some common misconceptions and ease beginners’ worries.  

Here are some major differences between EVM and common project management approaches. 

Industry applications 

Government agencies make up the bulk of EVM applications, given the Navy’s role in EVM’s inception. Major players like the Department of Defense and Department of Energy use EVM to keep complex long-term projects on track. When you mention EVM to someone in the project management world, government will typically be the first sector that comes to mind. But this doesn’t mean that government is the only realm that uses EVM. EVM’s accountability and in-depth budget tracking make it an ideal tool for other industries as well. 

Focus on variance analysis 

The keyword in EVM is “variance.” This approach enables project managers to closely track and understand variances in budget, resources and timelines. Though other project approaches certainly track variances, EVM puts a heavy focus on them. Each resource is carefully tracked and monitored for numbers that indicate it may be moving off course. 

Early warning system 

EVM’s focus on variances creates an early warning system that highlights potential issues. Project managers in all fields work to catch possible trouble early enough to correct it, and EVM allows teams to see potential issues in the minutiae. Catching those tiny challenges allows project managers to change course before anyone else even realizes the project could have run into trouble. 

EVM is one specialized type of project management with its own nuances, but many are beginning to realize the power of EVM outside of its traditional uses. We hope to see more teams learning and harnessing the power of this approach in years to come.