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“The WEBSTER & WEBSTER Way”™: Implementing EVM in the Software Development Environment

Introduction

More and more organizations are turning to Earned Value Management (EVM), either by mandate or choice, as a best practice for measuring performance of their projects. In the government sector, the Office of Management and Budget (OMB) Circular A-11 requires that an EVM approach be utilized for Major Information System Technology Projects. Through application of EVM, Major IT Projects can be effectively monitored and measured based on their adherence to cost and schedule performance goals. The standards for EVM systems are described in American National Standards Institute (ANSI)/Electronic Industries Alliance (EIA) Standard 748-1998. EVM supports the budget and performance integration component of the President’s Management Agenda (PMA).

Despite the need for better budget and performance integration, EVM remains an Achilles’ heel in the software development communities of both federal and commercial sectors. Perhaps no Project Management technique is more feared by Project Managers than EVM. There are a number of reasons for this:

  1. EVM is most often taught as a set of arithmetical calculations, beyond which few Project Managers can see its practical application to their projects.

  2. Enterprising Project Managers willing to pursue EVM for their projects are often confronted with maintaining “two sets of books”– one set from the organization’s financial infrastructure systems, and the other maintained separately by themselves. In many companies, the partitioning of data in their financial systems does not lend itself to calculating Earned Value from a Project Management perspective. Thus, substantial time must be spent manually mapping financial systems’ data to match work activities reflected in a project’s Work Breakdown Structure (WBS). This is a luxury few Project Managers can afford.

  3. Focus tends to be placed solely on calculating and interpreting the numbers, rather than developing a holistic EVM approach that links product and project information with strategic objectives of the organization.

  4. Traditional EVM systems focus solely on project cost and schedule, without regard for the technical progress of the work.

For these reasons and others, EVM has been slow to be widely adopted and is substantially underutilized as a source of sound project performance management.

EVM -- “The WEBSTER & WEBSTER Way”™

Webster & Webster’s strategy for success focuses on establishing EVM as an integral part of clients’ internal methodology for project planning and decision making. Our approach is consistent with not only the Project Management Institute’s Guide to the Project Management Body of Knowledge®, but also with CMMI, TQM, ISO, and Six Sigma methods and practices, as well as the PMA. Our expertise expands the horizon of traditional EVM and offers organization-wide substance and depth. Our solution includes all necessary aspects of EVM implementation: EVM design for specific organizational needs, training, and other support, leading to total integrated Program and Project Management. We deliver practical lessons, which enhance productivity while providing a thorough understanding of EVM terms, processes, and data usage. Our approach to EVM can include, if desired, Integrated Baseline Review (IBR) facilitation, business case reviews, and EVM system surveillance that make WEBSTER & WEBSTER the “One Stop Shop” for your total EVM needs.

Implementing EVM on software development projects is not easy. Models that predict the amount and timing of development costs, and metrics for accurately measuring work accomplishment have often been inadequate. The traditional metric, percent of code complete, is both deficient and misleading. WEBSTER & WEBSTER well understands that software development involves more than “writing code” and that the most difficult coding is often accomplished last. For EVM to be effective, measures must include project timing and the technical requirements of the work.

“The WEBSTER & WEBSTER Way” to EVM is a set of integrated, performance measurement techniques that is important in the following ways:

  1. Defining quality goals in terms of project milestones and metrics

  2. Identifying and defining metrics for sizing the project and measuring its progress, using EVM as the key, integrating tool for project control

  3. Using testable requirements as an overarching indicator of technical progress

  4. Revising the plan for deferred functionality and requirements volatility

  5. Planning for incremental releases and rework

  6. Focusing on requirements, not defects, during rework

The source of our software metrics is the Software Engineering Institute’s “Practical Software and Systems Management Guide”. This Guide provides project and technical managers with the quantitative information required to make informed decisions that impact project cost, schedule, and technical performance objectives that are applicable to the overall planning, requirements analysis, design, implementation, and interface systems and software activities. This technique provides a process to collect and analyze data at a level sufficient to identify and isolate problems (i.e., component structure, system architecture).

The technique involves the following elements:

  1. Developing the Performance Management Baseline (PMB).
  2. Decomposing requirements and creating traceability.
  3. Planning for defects and rework.
  4. Selection and use of project and software metrics.
  5. Performance-based EVM.
  6. Revisions to plan for deferred functionality.

WEBSTER & WEBSTER also provides complete tool support for EVM.

What Makes WEBSTER & WEBSTER Unique?

EVM -- “The WEBSTER & WEBSTER Way” includes technical performance, as well as cost and schedule performance. We provide a path to successful software project performance by focusing on requirements, selecting the most effective software metrics, and using an integrated EVM approach that is fully compliant with ANSI/EIA 748.

We work with you to define project phases, product phases, and measurement points where we capture cost, schedule, and technical metrics. For performance measurement to be meaningful, performance should be measured where the work is performed. In software development, this is at the Software Configuration Item Level. We link the software development life cycle (SDLC) with the project life cycle in the WBS at the measurement points that make the most sense for our clients’ projects. For our government clients, this is predefined in OMB Exhibit 300, which identifies useful segments for reporting and defining the work into useful segments. Our approach positions our defense agency clients for DCMA audits.

A Case in Point

[to be provided by Tony]

Why Choose WEBSTER & WEBSTER?

WEBSTER & WEBSTER is a family-owned small business with a 23-year history of providing successful solutions to business problems. A graduate of the 8A program, WEBSTER & WEBSTER does business “the old-fashioned way” — delivering comprehensive solutions that are tailored to specific client needs. Rather than implementing cookie-cutter solutions, WEBSTER & WEBSTER partners with clients to adapt industry best practices to their particular environments. Our team of seasoned subject matter experts has many years of practical, hands-on experience helping clients implement a variety of process improvements, including EVM.

WEBSTER & WEBSTER has developed a practical approach to EVM which, rather than focusing on theory and arithmetic, gives organizations a practical, hands-on approach to both managing projects and developing products. WEBSTER & WEBSTER team of experts and partners include highly-educated and seasoned professionals with years of hands-on, practical experience in business; government; Program and Project Management; Earned Value Management; process improvement; and organizational design, development, and change management. Our practitioners include MBAs, computer scientists, and Ph.D.s, all well versed in the needs of 21st century organizations and all of whom share a passion for what they do. You can count on the WEBSTER & WEBSTER family to meet your needs and exceed your expectations.

Talk to WEBSTER & WEBSTER. You’ll see the difference!

For more information, contact:

Dr. Anthony Webster
Webster & Webster Associates, Inc.
703-455-7604