What are some ways to motivate project teams? Are the ideas presented in the article "Using Earned Value Management Indexes as Team Development Factor and a Compensation Tool" applicable to your organization? Why or why not?© BrainMass Inc. brainmass.com October 9, 2019, 6:43 pm ad1c9bdddf
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Motivating Project Teams.
What are some ways to motivate project teams? Are the ideas presented in the article "Using Earned Value Management Indexes as Team Development Factor and a Compensation Tool" applicable to your organization? Why or why not?
Using Earned Value Management Indexes as Team Development Factor and a Compensation Tool.doc View File
1) About using "Using Earned Value Management Indexes as Team Development Factor and a Compensation Tool" applicable to your organization? Why or why not?
I will recommend for going for using this method.
This has the following advantages.
1. A single management control system providing reliable data
2. The integration of work, schedule, and cost using a Work Breakdown Structure
3. A database of completed projects useful for comparative analysis
4. The cumulative Cost Performance Index as an early warning signal
5. The Schedule Performance Index as an early warning signal
6. The Cost Performance Index as a predictor for the final cost of the project
7. An index-based method to forecast the final cost of the project
8. The To-complete performance index to evaluate the forecasted final cost
9. The periodic (e.g., weekly or monthly) Cost Performance Index as a benchmark
10. The management by exception principle can reduce information overload
Benefit 1. The earned value is a technique that reflects a precise picture on both the cost and schedule (time) performance. It is an advantage to use a single tool to measuring the
performance of all projects in a company despite their size and variability. That way the
performance comparison gives more realistic results
Benefit 2. With the use of work breakdown structure, all critical functions will be expected to work within an integrated project plan. The WBS ensures a proper integration of work,schedule, and cost.
Benefit 3. A part of the earned value management is the continuously reporting of the results obtained in various projects. All these data can be used for a comparative analysis with respect to the new coming projects.
Benefit 4. The cost performance index is calculated as the earned value divided by the actual cost. These values can be obtained in an early stage of the project and thus the value of the CPI can also be seen in this early stage of the project. Having the CPI one gets a picture of the cost performance, and has the opportunity to make changes. If no changes are made, observe that in most cases the CPI only worsens.
Benefit 5. The schedule performance index is calculated as the earned value divided by the planned value. The SPI can be obtained in an early stage of the project and if it indicates problems, it is possible to adjust. The schedule problems are often resolved by additional spending, therefore the SPI can also indicate a predictive of later cost problems
Benefit 6. Fleming & Koppelman point out that the cumulative CPI is used for
determining a lower limit for the estimated final cost of a contract, which is useful for
planning and control purposes.
Benefit 7. According to Fleming & Koppelman , the combination of both cumulative CPI and SPI provided the ability for forecast the final cost result of the project. This technique is considered as finding the "most likely" or the "high end" in the range of statistical possibilities.
Benefit 8. Christensen shows that the To-complete Performance Index (TCPI), is
useful for evaluating the reasonableness of the contractor's EAC or other financial goals.
The TCPI is the ratio of the remaining work to the remaining financial resources. It indicates the level of performance that the contractor must achieve to reach a financial goal. Thus, this earned value metric can help the project manager assess the reasonableness of critical financial goals, such as completing the remaining work within the targeted cost.
Benefit 9. In their studies Fleming & Koppelman find that the periodic CPI (usually weekly or monthly) CPIs are useful for cost performance trends at the detailed levels of the WBS.
Benefit 10. Last but maybe the most ultimate according to Fleming & Koppelman is that by using the EVM, the management do not necessarily has to follow each task in order to oversee the performance of the authorized work. Rather, by focusing on only those exceptions to the authorized plans in accordance with specified variance thresholds, management can effectively monitor all critical aspects of performance against the project.
The cost of Earned value method is complicated but once you understood the real value.It depends on the company how it implements.
Besides, bonuses and reward policies may be directly connected to the indexes causing more transparent mechanism of the distribution of project outcomes
However, some cautions have to be taken in using this kind of evaluation.
First, when the executer is not the responsible for the budget accomplishment, he/she can have his/her performance compromised by weak performance of the procurement team, as an example.
Secondly, this mathematical model may not be deterministic, i.e., the only one to represent the truth of the work outcome of the project resource, once they are completely mathematical, they may not evidence subjective human aspects inside the team work.
2) Other ways to motivate project teams:
These are following techniques some of them non-monetary and some monetary.
1. Recognition/Attention. When your employees accomplish something they have achieved something. Your recognition is appreciation for that achievement. I believe that most ...
Ideas to motivate project teams are embedded.