INNOVATIVE MANAGEMENT INITIATIVE

Initiatives that demonstrate new ways of leading, facilitating, administering, controlling or ensuring a particular outcome is achieved and that make positive changes to the management of organisations, processes, practices or projects.

Judging Criteria

➢ Sustainability / transferability of the initiative ➢ What makes the initiative unique ➢ Demonstrated leadership ➢ Effectiveness of the initiative ➢ Achievements of the project versus its intention

Winner

➢ Port Phillip City Council, Earned Value Management

Innovative Management Initiative WINNER

PORT PHILLIP CITY COUNCIL EARNED VALUE MANAGEMENT

Port Phillip City Council wanted to improve delivery of its capital projects so that they would be delivered in a more timely, planned and efficient manner.

By implementing Earned Value Management (EVM) as a program oversight tool, the Council helped to lift its capital project portfolio visibility and delivery performance in a very short time.

EVM uses data and scheduling rigor to measure the health of a project. It is a quantitative approach to evaluate true performance of a project in terms of cost and schedule, and works like a fitness tracker – capturing detailed, objective information that helps to better manage projects. In short, it’s a way to determine at a glance what you are getting for your spending.

The following outcomes have been achieved through the EVM initiative:

• At a glance visibility of a project's health in terms of financial and operational progress

• Objective measures of project performance (not based on the gut feeling of project managers)

• More accurate cash flow forecasts

• Greater ability to forecast cost and timeline changes and take remedial action in a timely manner

• Much more accurate and equitable resource management

• Early warning of the need for Change Requests and the positive effect an approved Change Request has on a project's schedule

• A significant uplift of project phase delivery against plan

• Overall improvement in the way projects are managed. The Earned Value Management initiative became a Business As Usual (BAU) practice for Port Phillip in a reasonably short time frame. It is supported by a dedicated, permanently employed project scheduler who ensures the ongoing creation of project schedules at the necessary governance stage, as well as the necessary updating and maintenance of accuracy of these schedules.

Project sponsors and senior management are fully aware of the advantages of EVM and the insights it affords Council. As such, sustaining the initiative was a no brainer.

The organisation is now in the process of applying this approach across the large and diverse non capital project portfolio.

Other Councils could emulate the EVM outcome with the right planning and commitment. With the right leadership and expert input, applying the lessons of Port Phillip's journey is achievable and would bring about improved portfolio management and delivery.

This initiative is an example of project management improvement not seen elsewhere in the sector or indeed in many sectors. Earned Value Management is great practice and brings about noticeable improvement. The ability to make this happen in a very short time is also noteworthy. It required leadership and alignment of a group of key people in the organisation and top level support.