Saturday, August 24, 2013

Earned value and technical performance

Paul Solomon, among many others, has been on a worthy campaign to closely integrate earned value accounting and technical performance -- to wit: no performance, no credit!

Some of this thinking is put down in a paper he wrote for Crosstalk -- The Journal of Defense Software Engineering, entitled: "Basing Earned Value on Technical Performance"

The essence of his idea he states this way:
1.Tie the technical baseline to the EV Performance
Measurement Baseline (PMB).
2.Tie technical progress to the Technical Performance
Measures (TPM) of the program, including progress
towards achieving planned functionality
This stuff is not without consequence. Solomon asserts:
If good TPMs are not used, programs could report 100% of earned value (or credit for work performed), even though they are behind schedule in terms of validating require ments, completing the preliminary design, meeting weight targets, or delivering software releases that meet the requirements
Solomon goes to say that he sees four opportunities (his words):
  1. Base EV on technical performance
  2. Account for deferred functionality
  3. Track tasks discreetly
  4. Plan rework and track discreetly
I've probably given away the store with this much reporting, so I'll leave it you to finish the paper, a worthy investment of your time.

Paul J. Solomon, PMP, is co-author of the
book, Performance-Based Earned Value.®
He supported the B-2, Global Hawk, and
F-35 programs at Northrop Grumman

Check out these books I've written in the library at Square Peg Consulting