Beyond earned value management
Posted by Megan Cacioppo - Deltek
If I asked you what the trickiest part of project management was for your enterprise, what would you say? If you answered managing the diverse projects in your portfolio – you’re not alone. Most businesses work on a variety of projects (whether it be different contract types, duration or dollar amounts) that can be categorized into four major tiers:
- Tier 1 – Projects that require Formal Earned Value Management (EVM). Businesses typically only have a few of these projects, but they are associated with the highest revenue amounts.
- Tier 2 – Projects that face ANSI compliance. These projects offer high revenue, but often make up only a small portion of a business’ portfolio.
- Tier 3 – Projects Performing EVM as a best practice without a mandate, or those doing EVM “Lite.” These projects have high margin and are the second most popular type of project.
- Tier 4 – Short Burn Projects. These projects face fast burn, have short durations and low dollar budgets, and make up the largest number of projects in a business’ portfolio.
The trickiest of a Project Management Office (PMO) or Project Team’s job becomes figuring out how to best manage all of these diverse projects within their portfolio. Many teams choose to build an equally diverse project management toolkit, implementing a single solution for each project type. But this approach can lead to silos, and doesn’t offer the insight and accuracy businesses need to maintain a competitive edge and consistently win new business.
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Tags: Projectmanagement , Organisatie , Analyse