See those three extra letters after my name? I believe they're the next big project management "thing." I am Carl Pritchard, Earned Value Professional.

Over the past few years, while many organizations have tried to modify project management practice to fit their needs, the U.S. Federal Government has begun a migration back to the basics. And that move may drive a major revival in a project management classic—earned value.

The Push for Earned Value

The Office of Management and Budget's Circular A-11, Section 300 sets the standard for government information technologies projects, and now requires earned value management systems that comply with the ANSI standard. The actual language regarding EMVS for major IT projects—like most government regulations—is crystal clear. Projects that want to be in the top tier for federal funding consideration must meet these criteria:

Agency will use, or uses an Earned Value Management System (EVMS) that meets ANSI/EIA Standard 748 and project is earning the value as planned for costs, schedule, and performance goals.

Exhibit 300 calls for clarification of what types of earned value practices are being deployed.

What this government-ese means is that government project managers are expecting more and more projects to adhere to best-practice EVMS procedures. How do you know if you're compliant with ANSI Standard 748? Ask a professional!

It's not just a government-project phenomenon. On the commercial side of the house, many organizations are wrestling with the challenges of complying with Sarbanes-Oxley's requirements for "internal controls." In the April 2004 issue of Contract Management, Quentin Fleming and Joel Koppelman assert that the only truly effective way to apply internal controls is through the effective application of earned value. Up until now, there's been no single recognized means for validating capability in earned value. But that changed in June 2005, when the Association for the Advancement of Cost Engineering (AACE – www.aacei.org) introduced the Earned Value Professional exam.

A Sneak Peek at the Earned Value Professional (EVP) Exam

Much like the Project Management Professional^® exam, the prerequisites for EVP are a history of work in the profession, and the background to support them. The major difference, however, is that someone applying for the EVP should have a broad understanding of the insights associated with the ANSI Standard for Earned Value (Standard 748). There is an exam associated with the certification, broken out in four parts.

Part 1 of the exam is a test on the fundamentals of project management. While it is based on the Skills and Knowledge guidance published by AACE, the questions and approaches associated with this section should not prove overly daunting for anyone who has already sat for the PMP^®. The hour-and-a-half allotted for this section of the test is generous.

Part 2 is a classic set of earned value math problems. Most of the questions here are strictly math drills; and as long as the test-taker knows and understands the math associated with earned value, again, this section is not too difficult. One note is that AACE still sticks with the standard earned value terms as applied in the U.S. Federal environment, which means that earned value is referred to as the Budgeted Cost of Work Performed (BCWP) and the planned value is referred to by its classic name of Budgeted Cost of Work Scheduled (BCWS). As long as those terms are familiar and the math is in one's comfort zone, this component of the exam is not a major problem.

Just a note about the lunch break. As neither of the first two sections requires too much time or mental energy, the lunch break might seem like a quiet, self-satisfying moment. Don't take it as such. If you haven't invested enough time in truly understanding the details of ANSI 748, this is your last chance to tackle them.

If Parts 1 and 2 didn't test your mettle, Part 3 will definitely make up for it. This is the heavy lifting, with plenty of esoteric questions about the nature of the work-hour, the options for claiming techniques and the appropriate time for the appropriate technique. This single section forces you to work through both challenging math and interpretation of that math, and requires the full 90 minutes to complete.

Part 4 also takes the full hour-and-a-half, but in this case, it's time that feels phenomenally well-spent; it's an essay test. AACE cleverly developed an extensive earned value spreadsheet that addresses virtually every potential scenario one could have on a given project and then asks you to craft a management memo explaining the past, present and future of the project. It's a fair and honest assessment of one's ability to read the tea leaves of earned value. The advantage for this section will go to those who can both understand earned value and express themselves effectively in a management memorandum in the first draft. The ability to craft an idea, cope with writer's cramp and interpret earned value all at the same time is what pays off here.

So Why Bother With Another Certification?

The EVP is currently in its infancy, but its evolution may determine the future course of both government and commercial practice in earned value. And with the government emphasis on earned value through the Office of Management and Budget and through Sarbanes-Oxley, there is a distinct possibility that—strategically planned or otherwise—earned value may find its way into your future.

As a professional, project managers have options. They may assume that earned value is not on the horizon for them, or, they can become early adopters of the certification. By doing so, they put themselves in a position where they can be pioneers of a practice and the first of a new generation of project management leaders.