Tracking SAP Implementation Metrics with the Earned Value Management (EVM) Methodology

  • by Davin Wilfrid, Former Contributing Editor, SAP Experts
  • February 4, 2010
Management
Earned Value Management (EVM) is a method for calculating overall project progress in a single metric. See how an SAP consulting team is applying EVM to track project progress during a large banking implementation.

The famous business adage holds that you cannot manage what you cannot measure. It’s a lesson that resonates with experienced SAP project managers, who recognize the need for accurate measurements at every phase of an SAP project.

Obtaining accurate and useful metrics was a particular challenge for one Canadian bank recently. The bank decided to replace its legacy core banking system with a suite of SAP solutions for the banking industry including SAP ERP 6.0, SAP Customer Relationship Management (SAP CRM), Banking Services 6.0, and SAP NetWeaver Business Warehouse business intelligence tools. The large scope of the project — and the short window in which the bank intended to achieve it — meant the project team needed to identify and track project metrics carefully. Scope creep, geographical distribution of the project team, differing definitions among project sub-teams, and varied project tools presented a major challenge for the bank’s project management office (PMO).

To combat these challenges, the bank’s SAP consulting team implemented an Earned Value Management (EVM) methodology. EVM is an approach that combines scope, schedule, and cost into a single metric — streamlining the process of tracking a complex project and ensuring that all project team members are on the same page. After implementing EVM, the bank’s PMO had a more accurate and objective measure of the cost, schedule, and scope of the ongoing project and was better able to plan for the project’s completion.

Davin Wilfrid

Davin Wilfrid was a writer and editor for SAPinsider and SAP Experts. He contributed case studies and research projects aimed at helping the SAP ecosystem get the most out of their existing technology investments.

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