Earned Value Analysis (EVA) is a method that has gained traction in some business sectors to report project progress and help control performance. Yet the literature reports mixed results as to its effectiveness in helping deliver successful projects and, additionally, much of the previous studies on the topic is conceptual in nature focusing on the design of the EVA system. We therefore extend knowledge on EVA by analysing the impact of EVA on the levels of success of two projects that utilised the method. This is done through the prism of agency and organisational justice theories. A framework is proposed of EVA conditions of success, incorporating both design and operational aspects of the EVA system. The framework is used to develop testable propositions that can guide further research into the effects of EVA-based systems on the creation of agency-related characteristics in the project environment that are conducive to project success.

Resolving agency issues in client-contractor relationships to deliver project success.

This is a repository copy of The stakeholder challenge: dealing with challenging situations involving stakeholders.

As the cost of clinical trials continues to rise organisations are looking at ways of managing this part of the drug development process as effectively and efficiently as possible. As a tactical response, many pharmaceutical companies outsource the management of clinical trials to clinical research organisations on a fixed-price contract basis. This paper presents an alternative approach based on the concept of Product-Based Planning. Key elements of the approach are the creation of a deliverables budget and the establishment of project management-related deliverables. The conceptual developments described in the paper are supported by a telephone survey of 10 UK practitioners. The survey confirms the prevalence and limitations of fixed-price contracts while highlighting a willingness to try a deliverable-based approach -initially through small pilot studies. The key barrier to implementing a new approach is resistance from key stakeholders, such as finance departments, which can be addressed through selling of the business case.

Purpose -The purpose of the paper is to outline a method for reporting project performance that can be used to provide incentives to both clients and contractors to share risks and opportunities. Design/methodology/approach -The conceptual foundation of the paper is two-fold: firstly, a review of the literature highlights the limitations of fixed price, fixed unit price and variable (fee for service) type contracts and hence the need for contracts that incentivise project clients and contractors to act in mutually beneficial ways; secondly, the earned-value method (EVM) is discussed as a means of reporting project progress via a single value-based metric that is applicable to both client and contractor. The integrating of these two elements provides the basis for the method for reporting project performance described in this paper. Findings -The paper presents the co-operative incentivised negotiation budget (COIN). The COIN budget uses the concept of the variable (fee for service) type contract. In addition, it utilises the EVM to report project progress in a simple, easy-to-understand manner that enables both parties to share in the beneficial outcomes of better than planned performance and to share in the negative results of under-performance. Research limitations/implications -This paper is conceptual and, although reporting elements of best practice, further research is needed in the following areas: firstly, the benefits, costs and limitations of, and the barriers to, using EVM-based approaches in projects in general, and facilities projects in particular; secondly, the effectiveness of incentivising contracts in terms of addressing issues that lead to poor performance, such as poor communication and lack of trust between the parties. Practical implications -The COIN budget is a means by which the client and contractor can easily monitor performance in terms of the value earned in providing the agreed project deliverables. Whilst enabling the contractor to earn a cost plus margin, it enables both parties to have a common goal through the sharing of the positive and negative consequences associated with project opportunities and risks. Originality/value -The paper makes an original contribution by integrating elements of best practice in the areas of contract selection and monitoring of project performance.