Managing Performance for Capital Projects

Abstract

This study contributes to our understanding of public performance with original research on Earned Value Management (EVM), a practice used for managing cost and schedule performance for capital projects throughout execution. Recently, EVM has emerged in some states as part of their performance management strategy for major Information Technology acquisitions but research has yet to study implementation. Overall, results indicate that EVM can support proactive cost and schedule management and help achieve performance objectives but that it is not fully embedded into work routines. Findings also illustrate that successful implementation is contingent on several organizational, human capital, and policy variables.

Who has turned the project management lights on? A comparative analysis of transportation and information technology in US state governments

“…Although we recognize the value of EVM for effective project implementation, we note that there are more important things for government performance than performance management systems (Moynihan, 2008), and the same applies to EVM (Grandage, 2022b). For example, complex transportation project management cannot be understood apart from engineering challenges, stakeholder conflict, risk management, and the motives of project champions in projecting benefits and costs (Altshuler & Luberoff, 2004;Flyvbjerg et al, 2003;Greiman, 2023;Miller & Lessard, 2001).…”

“…Although the scope of research has expanded along with its recognition as an internationally recognized best practice, studies at the subnational level remain underdeveloped. Recently, work has been published on the use of EVM in US state governments, but the research is limited to major IT projects (Grandage, 2021(Grandage, , 2022b. Having explained the EVM concept, we now present the framework used for the comparative analysis.…”

“…The PMO can also support project selection by advising on which projects align most closely with strategic plans. Although the model is top-down in nature, we emphasize friendly forms of centralization, such as flexibility of process, knowledge management, and support of agency driven changes (Grandage, 2022b).…”

“…One might surmise that, for example, transportation may be more active because it consumes a greater portion of state budgets, has a much longer project management history, and physical outputs can be readily used for measures of progress as they are in traditional construction projects. Alternatively, IT may be more active simply because they have a recent problematic past that has shaped their current practices (Grandage, 2021(Grandage, , 2022b.…”

“…Overall, research indicates that EVM is an effective performance management tool. Specifically, EVM has been associated with improved communication, early warning of performance issues, the achievement of cost and schedule objectives (Grandage, 2022b; Kim et al, 2003; Song, 2010), and can play a key supporting role in project forecasting (Batselier & Vanhoucke, 2015; Caron et al, 2013; US Government Accountability Office, 2020). However, several factors have been found to be critical for effective implementation including leadership and organizational culture, conduct of oversight, qualified personnel, training, valid measures of progress, and tailoring, among other tactical details (Abba, 2017; Christensen, 1998; Grandage, 2022b; Kim et al, 2003; Solomon & Young, 2007; Song, 2010; US Government Accountability Office, 1997, 2009a).…”