An Earned Value Management System (EVMS) helps measure project performance against a project baseline. It’s a common contractual requirement on any project for a federal government agency and includes strict and detailed standards. This complexity often leads businesses to incorrectly assume an EVMS is too costly or complicated to implement successfully outside of government-related work. But, Earned Value is a proven, reliable methodology that can bring practical and actionable benefits to commercial business when applied wisely.
A customized EVMS can help commercial enterprises cut costs, generate revenue and improve performance.
An EVMS provides a clear picture of how much a budget has been spent compared to the project status and gives managers the ability to compare performance against a variety of baselines including original, current and forecasted budgets. Most importantly, an EVMS reveals the reasons behind the differences. It not only tracks metrics within a single project, it also reveals trends across multiple projects and timeframes. Whether it’s a positive indicator or an early warning sign, managers can utilize EVMS insights to make key strategic decisions to keep the business moving forward.
While some members of the business community are aware of the benefits associated with an EVMS, they’ve heard horror stories of costly and unsustainable implementations. “The key to using an EVMS system successfully is choosing the right metrics and the right level of time and effort to effectively track and analyze earned value information,” says John Batten, Vice President of Construction Services for Austin-based Atlas Technical. “Companies should work with their management consultant to determine the right amount of process and complexity that fits each unique project and portfolio.”
Atlas Technical in an expert in helping its government clients with the design, development, and implementation of EVMS systems fully compliant with government standards. This expertise means they also know to build a system custom-tailored for commercial projects. Contact Atlas to learn more about creating a customized, scalable approach to EVMS that can cost costs, generate revenue and improve business performance.