Image by Gerd Altmann from Pixabay . Royalty Free
How do we keep a project on track?
It’s easy enough to monitor costs, but when you are under budget at a particular time, does that mean that you are managing the costs well, or simply late?
It’s possible to monitor Earned Value, which is quite a sophisticated tool for tracking progress. You can compare this to planned EV and you will know whether you are on track or not. You can also easily compare EV to actual costs (since there’s often a clear relationship between planned EV and planned costs) to tell whether the project is over or under budget.
But the real trick is to monitor benefits and cash flow. And that’s a bit more involved. I’ve written a more detailed article on Linkedin at https://www.linkedin.com/pulse/managing-monitoring-our-project-how-do-we-know-its-hugo