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STUDY REVEALS DISCONNECT BETWEEN PERCEIVED MERITS OF EARNED VALUE MANAGEMENT AND FEDERAL AGENCIES’ READINESS TO IMPLEMENT
Results Indicate a Need for Federal Agencies to Strengthen Commitment to and Education on Earned Value Management to Realize Desired Benefits
PHILADELPHIA , PA , November 8, 2005 – Primavera Systems, Inc., today announced the results of its Earned Value Management in the Federal Government study. This study of Information Technology (IT) decision makers in the federal government reveals a significant disconnect between perceived value of Earned Value Management (EVM) and actions being taken to implement EVM. EVM is required for use by the Office of Management and Budget (OMB) on all new major federal IT projects. Under this directive, OMB requires agencies to develop written policies outlining plans for EVM implementation by December 31, 2005.
Specifically, the study indicates that the federal IT community agrees with OMB that EVM delivers improved project outcomes, with 60.6 percent of respondents reporting that EVM is very or somewhat important to achieving their capital investment goals. Despite this value perception, results do not demonstrate agencies movement from belief to action, with only 37 percent currently utilizing EVM and even fewer prepared to train or hire personnel skilled in EVM within the next 12 months. Respondents cited their top challenges to EVM implementation as unfamiliarity with EVM and lack of trained personnel. These findings indicate that agencies will not only have difficulty developing EVM implementation plans in time for the December 31 OMB deadline, but also will face challenges implementing documented plans.
EVM processes, systems, and software enable the continuous assessment of project performance and status – providing a methodology that can help agencies effectively measure project alignment with resources and goals by comparing status to original plans and end goals. EVM can help agencies achieve “green” marks on the President’s Management Agenda scorecard. To achieve and maintain this high score, agency projects must stay within a 10 percent variance from their cost, schedule, and performance goals. Further, OMB issued a memorandum in August 2005 requiring agencies to utilize EVM Systems (EVMS) on all new major IT projects. The memorandum requires development of written policies outlining agency-specific plans for EVM implementation by December 31, 2005. Agencies must also evaluate exiting, cost, schedule, and performance of ongoing IT projects and take any necessary corrective actions by March 31, 2006 and before devoting any FY06 funds to associated projects. In support of this effort, OMB is working with the Federal Chief Information Officers (CIO) Council to develop a model agency EVMS policy for IT projects.
“Federal agencies should take note of this study’s findings and intensify efforts to improve program performance. Agencies clearly recognize EVM as a reliable technique for improving project and program performance. To realize EVM’s inherent benefits, however, there needs to be a greater commitment to the development of EVM policy and subject matter expertise,” said Joel Capperella, Market Manager, Public Sector/Aerospace & Defense at Primavera Systems, Inc. “As the leading provider of EVM solutions, Primavera is committed to working with the federal government to enable executive managers and project teams to optimize resources and deliver capital investment projects on-time, on-budget, and within scope – all results whose likelihood are significantly improved with the use of EVM.”
About the EVM in the Federal Government Study
Primavera’s EVM in the Federal Government study was based on a survey of 109 federal government IT decision makers. GS 12-15 personnel comprised 76 percent of the study population and members of the Senior Executive Service (SES) comprised 11 percent. To download a copy of the Primavera EVMin the Federal Government study, please visit: http://www.primavera.com/ev_study_results.
About Primavera Systems, Inc.
Primavera is the largest independent provider of collaborative resource, project and portfolio management solutions. Primavera’s world-class software and services are used by federal agencies to meet federal mandates, increase operating efficiencies, and achieve mission objectives. Primavera provides total program performance solutions that span the project lifecycle from investment justification and business case planning to actual performance and cost analysis – empowering government to “get to green and beyond.” Analysts have recognized Primavera as an IT Project Portfolio Management leader. For more information, visit www.primavera.com or call +1.800.423.0245/+1.610.667.8600.
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