June 2012

The EVM Newsletter™
from Management Technologies
In This Issue
"No". What was the question?
Quote on Project Management
iPad for FREE!
EVM in Euros
Is your SV lying?
Is Variance Normal?
New AACE & CPM Agreement
EVM World

Management Technologies

>Third Party EVMS Certification   



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The Answer is NO!


While biking on a trail with my grandson at a US Army Corps of Engineers Dam Site I ran across this faded sign.


Long ago the red and blue colors and text faded, leaving a general prohibition against everything.


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Quotable Quote



"Besides, you knew the job was dangerous when you took it!"




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Forward to a friend 
Did you find this newsletter interesting? Forward it to a friend!

EVM3The Earned Value Management Maturity Model®
Books 24 x 7 
EVM3 cover
The Earned Value Management Maturity Model book is now available from Books 24x7, as well as from Management Concepts.

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Save $150 with Management Technologies' EVPrep Workshop

Attendees at AACE Approved Education Providers (AEP) events receive no-cost temporary membership in AACE.


This policy allows these attendees to apply for AACE certification exams at the AACE member price ($150 less than the non-member price).


If you are planning on taking the EVP exam here is how to save $150.


  1. Attend our EVPrep exam prep workshop
  2. Get your temporary member e-mail from AACE.
  3. Apply to take the EVP exam at AACE member rates
  4. Save $150.

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EVM Schedule Adherence and CPI and SPI (t)Statistical Forecasting

The EzEVM™ workbook has provided projects and firms a low cost solution to performing EVM and refining their EVM processes.


The EzEVM MSExcel workbook template now includes "Schedule Adherence" and statistical forecasting of final CPI and SPI(t).


EVM data can be entered from any EVM software to provide these valuable analysis products as well as traditional EVM indicators.



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Energy Agency
Wastes Energy


US Department of Energy (DOE) Inspector General (IG) has found that the Department is wasting energy!


The report found that the nine locations reviewed had not always implemented effective practices designed to improve the energy efficiency of data centers.


In addition, the Department continued to operate and maintain excess space within its data centers, a practice that led to energy inefficiencies.



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PMI Raises the Bar for PMP Applicants



PMI now requires PMP candidates to have 4,500 hours (with college degree) in "leading and directing the project". This is a change from  "leading and directing project tasks".


I'm not clear on how to interpret this. Doesn't "leading and directing the project" include "leading and directing project tasks". Doesn't WBS level 1 include all the subordinate tasks. PMI might really mean "leading and directing the project TEAM".


From PMI, "It is also important to point out that, as part of this process, we are clarifying the information requested in the PMP application. With this clarified application language, we are asking PMP applicants to provide:

* the project objectives,

* their role on the project,

* key deliverables and outcomes by Process Group, and,

* specific examples of how they led and directed each project."



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Win an iPad


CPM announced a membership drive with an iPad as the prize. Any CPM member who gets four new members to CPM gets their dues waived for 2013. The CPM member who gets the most new members wins an iPad.


The membership drive ends in November 2012. Contact CPM for details or to join so you can get your chance at the iPad. 


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 R.E.P. logo



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Welcome to the June EVM Newsletter.


This issue highlights news from EVM World 2012 which concluded early this month in Naples FL. This was the first EVM World conducted by the College of Performance Management (CPM) since the split from PMI, ending a ten year relationship. I think you will conclude, as I did, that CPM is doing fine and will thrive.


Our EVM World coverage includes a review and link to a keynote on past and future EVM research in Europe. There is also a story on another keynote about accepting variances as normal and the potential consequences.


Want an iPad? CPM announced a means for you to win one. Read the sidebar for details.


An Agile+EVM working group has been formed to help address how these two project tools can be used together. Hopefully the end point will be a means to deliver project outcomes more quickly and more aligned with user needs while still providing EVM cost and schedule performance insight.


CPM and AACE have an agreement of interest to members of either organization. The goals of the agreement are listed.


Our EVM Tidbit is about how schedule variance (SV) can send you the wrong signals if you don't look deeper into the project.



Like us on Facebook  View our profile on LinkedIn


EVM Europe is accepting speaker proposals. Click on the link below under Upcoming Conferences for details. If accepted your boss has to send you to the event. Right?


You can help make this newsletter interesting by contributing news about your activities in EVM, your company, product announcements, or your projects. Each month starts with a blank sheet, we don't make this stuff up! Send news to me at


Ray Stratton, PMP,EVP 





Ing. Stephan Vandevoorde from the Airport Systems Division, Fabricom N.V./S.A. and Prof. Mario Vanhoucke, Ph.D. were a big hit at EVM World. You might think that a presentation on EVM research would be dry but, what if you learned when EVM works and when it doesn't? And what to use in its place? While Prof. Vanhoucke presented theoretical research on EVM, Stephan Vandevoorde presented his EVM experience on projects at Fabricom.


In addition, Mario talked about future research on project control. This 'more than a million euro' Ghent University research project, in collaboration with the George Washington University (US), University College London (UK) and CERN (Switzerland) will move the research in project management and dynamic scheduling towards a higher level, to build upon four questions and answered in prior research


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Tidbit #33, Is SV Sending You the Wrong Signal?


If your Schedule Variance (SV) is negative is your project behind schedule? Maybe. Maybe not.


If your SV is positive is your project ahead of schedule? Maybe. Maybe not.


In all our projects we have a critical path of activities that must start and end as planned if we are to realize the planned completion date. Then there are all the non-critical activities, perhaps more of them than critical path activities. Each of these have float which means they have early and late start dates, and early and late finish dates. If we schedule them to "start as early as possible" then the early start and finish dates are used. If we schedule them to start "as late as possible" then the late start and finish dates are used.


Since the PMB is the sum of the PV (BCWS) month by month, the shape of the PMB is influenced by our scheduling of non-critical activities. At any point in time, the PV is a lower value if we use late as possible scheduling and a higher value if we use early as possible scheduling.


Most projects use "early as possible" scheduling. So if the SV is negative it could be due to late critical path work and a true threat to our planned completion date. Or, it could simply be that the non-critical path work did not start on the early start date, or finish on the early finish date. In this case the PV for these activities is "delayed" as the work is delayed causing a negative SV, but not a schedule problem.


Of course if you use "late as possible" scheduling a positive SV may not mean you will finish early either. Some non-critical work might have started or ended sooner than planned. The situation is the mirror of the one described above. The critical path progress is still, well... critical.


However, if the work started after the late start date and finishes after the late finish date we have a potential schedule slip.


Most likely your SV is a combination of critical and non-critical activity progress. To know for sure you need to examine the critical path and perhaps do an EVM analysis on just the critical path.


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Human Nature and the Normalization of Variance


NASA put men on the moon.


NASA also enabled the Challenger and Columbia accidents. Why do bad things happen to teams with stellar history?


Astronaut Mike Mullane gave his keynote address "Countdown to Teamwork" at EVM World 2012. During his talk he told how a key factor for the Challenger and Columbia was the "normalization of variance". Simply put, something is found incorrect but nothing bad happens, so we accept it as the new norm.


Repeated success while deviating from best practices implies success, resulting in a "predicable surprise". For Columbia "NASA's original shuttle design specifications stated that the external tank was not to shed foam or other debris... Launches were often given the go-ahead as engineers came to see the foam shedding and debris strikes as inevitable and unresolvable, with the rationale that they were either not a threat to safety, or an acceptable risk." (Wikipedia)


Small children learn this quickly. "Don't ride with your little brother on bike handle bars!" "I already did and nothing happened!" Crash.


So human nature is to accept the error as normal variance about the correct value and do nothing to correct it. Sooner or later this variance creates an unexpected outcome.


Do you accept negative CV and SV as inevitable and unresolvable?


Agile+EVM Working Group Formed


At EVM World 2012 I moderated a panel discussion on applying EVM to Agile. It filled the room and the discussion was lively. One conclusion was that everyone wanted EVM to work on Agile but also saw challenges in holding to the established EVM principles and ANSI 748.


From this outcome I decided to start a CPM AGILE+EVM working group and I have about ten interested individuals. The goal of the working group is to provide a guidance document for the application of EVM to Agile projects. I expect to conduct this working group through email and a new LinkedIn closed group.



CPM and AACE Sign Cooperative Agreement 


 At the recent EVM World conference in Naples CPM and AACE (Association for the Advancement of Cost Engineering, International) signed an agreement to further the interest in EVM with their constituents. The agreement provides for  


  • mutual participation in workshops, committees, working groups, panels, and boards
  • encouragement for association members/speakers/presenters to apply to participate in each other's events
  • provision for each association's leadership to attend the other's annual meetings, conferences, or conventions
  • provide complimentary exhibit space at each other's conferences
  • consider holding jointly sponsored CPM and AACE seminars or meetings
  • beginning in 2013, extend to each associations' members the courtesy of conference registration at member rates
  • provide each association's leadership a complimentary subscription to the other's publications, newsletters, and other communication with their membership.
  • recognize/publicize, in printed and electronic/internet publications, and web discussion forums, the Cooperative Agreement.
  • agree to use each other's publication media to exchange information regarding earned value management without license or reprint fees.
  • publicize meetings, seminars, and symposia sponsored by the other society and publish calls for papers issued by the other association
  • exchange trade-outs and/or discounted rates for advertising in each organization's publications.


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Workshops EVPrep™ and EVM Workshops
The following workshops are planned for the following locations:
  • Reston, VA
  • Houston, TX
  • Las Vegas, NV
  • Saint Louis, MO
Earned Value Experience (CAM) Workshop
You'll experience creating an earned value management baseline, determining earned value from project status, Classroomcalculating earned value management indices, and estimating final cost and completion date. This workshop is perfect for team leads, control account managers, financial and schedule control staff, project and program managers, and chief project officers.

Excel EzEVM™Templates may be retained by attendees to implement earned value management in their organization.



View the Earned Value Experience (CAM) workshop outline and get the registration form.
Interested in an on-site workshop? Send an e-mail with your your address and the number of attendees to receive a quote

EVPrepEVPrep Exam Prep Workshop

The workshop covers all the topics likely covered in the exam and provides exam-like questions and workshop discussion about each question and the possible answers. This workshop also includes an EVM analysis question to help prepare you for the three page written essay in Part II (was part IV).
Take this workshop and save $150 on the exam. Attendees are given a temporary limited membership in AACE that allows you to take the exam at AACE member rates.

This is twelve hours of mock EVP exam and discussions of correct and incorrect answers.
Do you have an EVP FAQ
Go to AACE's website for the latest information about exam dates.
View the EVPrep workshop outline and get the registration form.

Interested in an on-site workshop? Send an e-mail with your your address and the number of attendees to receive a quote.

CPM is Alive and Well 


It's been a short 5 months since PMI and CPM decided to go separate ways. But if anyone had any doubts, CPM is doing fine, maybe better than fine. About 350 people attended EVM World 2012 in Naples FL 30 May - 1 June.


From written comments and chats with attendees it was not only as good as past EVM Worlds, but one of the best. Non-traditional topics in EVM were presented, EVM training was conducted, and Keynote speakers from space (a former astronaut) and Europe EVM researchers entertained and informed attendees. Great food and evenings in Naples rounded out the event.


Next year, EVM World 2013 will be held in Naples, FL on 29-31 May.


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,Upcoming EVM and PM Conferences 


AACE Annual Meeting 2012

WHEN: 8-11 July 2012


WHERE:Marriott Rivercenter, San Antonio, Texas
MORE INFO: AACE, International  
IPMC ((Integrated Program Management Conference)
WHEN: 29-31 Oct 2012
WHERE: Bethesday, MD


EVM Europe 2012

WHEN: 28-29 November 2012

WHERE: University of Twente Enschede, The Netherlands

(Note: Thanksgiving ({US} is  22 Nov)
Do you have news to share? Send your news item and we'll review it for posting in a future EVM Newsletter.
Ray Stratton, PMP, EVP
Management Technologies

Copyright 2012, Management Technologies

The EVM Newsletter, EVPrep, The Earned Value Management Maturity Model, EVM3, EzEVM, CAMcert, and The Earned Value Experience are trademarks of Management Technologies.


The Earned Value Professional , EVP, and the AEP logo are marks of the Association for the Advancement of Cost Engineering, International. (AACE®).


The PMP, PMBOK, PMI, and R.E.P. , and the Registered Education Provider logo are
registered marks of the Project Management Institute, Inc.


EVM World is a
registered trademark of the College of Performance Management, Inc.