turning metrics into maturity - apmg-international webinar
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The Unsung Benefits of Earned Value Management Tuesday 12 June 2012 / 14:00 EDT Presented by Peter McBrideTRANSCRIPT
www.apmg-international.com
APMG-International Webinar
Turning Metrics into Maturity The Unsung Benefits of Earned Value Management
Tuesday 12 June 2012 / 14:00 EDTPresented by Peter McBride
www.APMG-International.com
Agenda• Welcome & introduction
– Ronn Faigen, General Manager, APMG-US
• The Unsung Benefits of Earned Value Management – Peter McBride, McBride Consulting
• How to find out more• Questions• Close
About APMG-International
• Global Examination & Accreditation Institute• Official accreditation/qualification body for Cabinet Office
(formerly OGC) PPM portfolio• Full portfolio of professional management qualifications• Accredit ATOs & ACOs (250)• HQ in UK; Operational offices or formal representation in
11 countries• Over 16,000 examinations sat every month• Full details at www.APMG-International.com
Some of Our Products
IT Service Management
Program and Project Management
www.APMG-International.com
Presenter:Peter McBride, McBride Consulting
– Peter McBride, PMP, is a professional training and coaching consultant and president of McBride Consulting Group Inc.
He is certified in Microsoft® software development tools and a certified Earned Value Management professional. As a PMI Registered Education Provider, Peter helps prepare students for their PMP exam. He leads classes across Canada, Europe, the Middle East, and Africa.
– During the 1980s Peter was an accountant, but decided to open his own
computer support and training practice in 1993. In 1999, he redirected his career toward Project Management and achieved his professional certification (PMP) in December of 2001.
– Peter may be contacted by Email at [email protected] or see his web site at www.mcgi.ca/about.asp.
8
EV = BAC * %completeCV = EV-ACSV = EV-PVCPI = EV/ACSPI = EV/PV
Status indicators
*EAC = BAC/CPIETC = EAC - ACVAC = BAC-EAACTCPI(BAC) = BAC-EV / BAC-ACTCPI(EAC) = EAC-EV / EAC-AC*one of many EAC formulae
Predictive indicators
Earned Value FormulaeBAC = $30,000AC = $20,000
PV = $22,500% complete = 60%
$18,000-$2,000-$4,500
0.900.80
$33,333-$13,333
-$3,3331.201.15
EVMS is a mature process
• Long history of successful use• Leads to improved project performance• Provides Early indicators• Organization that exhibit maturity
indicators are more likely to succeed
Strategic Management Maturity Model (BalancedScorecard.org)
Ad Hoc & Static
Reactive
StructuredProactive
Managed and Focused
Continuous Improvement
Would you tell me, please, which way I ought to go from here?""That depends a good deal on where you want to get to," said the Cat."I don’t much care where--" said Alice."Then it doesn’t matter which way you go," said the Cat."--so long as I get SOMEWHERE," Alice added as an explanation."Oh, you’re sure to do that," said the Cat, "if you only walk long enough."Alice's Adventures in Wonderland
Low Risk, Low Complexity ------- High Risk, High Complexity
Why do we need controls at all?
EVMS is a Control System
Monitoring speed, fuel consumption and direction while driving
Monitoring our projects for time, cost, scope and quality
In order to control, we need to measure
Scope
Time/Schedule
Cost
Baselines Require Estimates (plans)
Scope Statement
Deliverables (WBS)
Activities
Duration Estimates
Planning lowers Risk
• Reduces likelihood of failure• Increases likelihood of success• Exposes unknowns• Allows for unknown unknowns• Integral to a good plan
Good planning improves Quality
Planning is an Organizational Skill
“If you can’t measure it, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.” -James Harrington; The Improvement Process
Ad Hoc & Static
Reactive
StructuredProactive
Managed and Focused
Continuous Improvement
Conclusion: EVM drives Organization Maturity • “Walking until we arrive” is an immature project management style• Controlling projects can improve the likelihood of success• In order to control we need to be able to compare and measure
(Baseline)• In order to Baseline, we must be able to plan• Planning reduces Risk and improves Quality• Planning is an organization Skill• EVMS embodies all these disciplines, and therefore not only
supports, but drive organizational maturity.
Recommendations
• If you are not familiar with EVM, begin to learn.• If you are not using EVM today, consider starting
by applying to smaller projects.• Consider an organizational maturity assessment
to gain a starting point.• Set your strategy for increasing organizational
maturity.
Earned Value ManagementCertification
• Earned Value Foundation
• Earned Value Practitioner
QUESTIONS & ANSWERS
How to Find Out More
• Website:– APMG: www.apmg-international.com– McBride Consulting: www.mcgi.ca
• Contact:– [email protected]– [email protected]– [email protected]
www.apmg-international.com
Find out more about us at our website:
www.APMG-International.com
THANK YOU FOR ATTENDING