The "S Curve" Falls Short! Why is EVM Essential for Effective Project Management?

During a consultancy project for a major mining company, I spoke to a group of experienced project managers. The discussion revolved around a well-known concept in project management: the famous "S Curves." When asked for my opinion on them, I couldn’t help but respond, "It feels so... analog."

There was a brief silence in the room, followed by intrigued looks. I seized the opportunity to explain why I felt that S Curves were insufficient for modern project management. While they provide a clear visual representation of cumulative cost or effort over time, their focus is extremely limited.S Curves offers only a financial perspective without integrating critical project aspects like scope, schedule, and, most importantly, value delivery.

Project management is about far more than controlling costs. It involves coordinating efforts, achieving strategic objectives, generating tangible benefits, and ensuring that the work aligns with the expectations of all stakeholders. In this context, "S Curves" fall short, proving inadequate to address the complexity and demands of today’s projects.

On the other hand, methodologies like Earned Value Management (EVM, often referred to as "Management of Earned Value") allow us to go beyond costs and time, focusing on what truly matters: value delivery. At the end of the day, organizations don’t just seek to control expenses; they want to ensure that their spending translates into tangible benefits. EVM not only measures expenditures but also evaluates how that expenditure drives progress toward project objectives.

In the meeting, I picked up a marker and drew an "S Curve" alongside the key elements of EVM on the whiteboard. I showed a simple table highlighting their differences:

Key Differences Between the "S Curve" and EVM

We discussed how an "S Curve" might show that 70% of the budget has been spent halfway through the project. However, it cannot indicate whether that spending translates into 70% of the work being completed. Conversely, EVM incorporates indices like the Cost Performance Index (CPI) and the Schedule Performance Index (SPI), providing a clear picture of whether the project is meeting its objectives efficiently.

One of the managers asked, "How do we apply this to capital-intensive projects like ours?" I replied, "That’s the beauty of EVM: it doesn’t matter whether the project is small or monumental. The focus must always be on value. Tools like EVM allow you to monitor whether every dollar invested is generating real value aligned with the organization’s strategic objectives."

More Reasons to Use EVM

1. EVM as a Predictive Tool?EVM evaluates current performance and enables reliable projections. For instance, the?Estimate at Completion (EAC)?predicts the total project cost based on current performance, while the?Estimate to Complete (ETC)?estimates additional budget requirements.
2. Flexibility Across Industries EVM is applicable to projects across various industries—from construction to technology and defense—due to its ability to integrate scope, time, and costs in any context. This flexibility makes it a widely recognized standard.
3. Focus on Strategy and Value Delivery?Unlike "S Curves," which offer a cost-centric view, EVM assesses whether the work performed aligns with the organization’s strategic goals, ensuring that efforts contribute to the project's overarching purpose.
4. Key Performance Indicators for Decision-Making?Metrics, such as CPI and SPI, are critical for evaluating project performance. For example:
5. Global Standardization EVM is recognized internationally by organizations like the Project Management Institute (PMI) and aligns with project management standards such as the PMBOK Guide. This recognition provides organizations with confidence when implementing it.
6. Complementing Agile Methodologies While EVM is traditionally associated with predictive environments, it can also integrate into Agile methodologies to track financial and strategic progress in sprints or releases, ensuring measurable value delivery in every iteration.

The conversation ended with several interesting reflections. "S Curves" have their place as a basic visual tool, but for managing projects in a complex, results-driven world equipped with advanced technological tools, EVM is a methodology that better meets current demands. It’s not just about spending; it’s about spending wisely, turning every investment into tangible benefits.

Now more than ever, it’s time to retire the venerable but limited "S Curve" in favor of its replacement: the versatile EVM methodology, which ensures a more complete, strategic, and value-oriented approach to project management. I’d love to hear your experiences: Have you faced challenges implementing EVM? What are your thoughts on the current relevance of "S Curves"? Let’s share ideas and learn together.