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Earned Value – A Leading Indicator of Clean Governance?

 

SECOND EDITION

Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS

Jakarta, Indonesia

 



As a long-time resident of Indonesia, with extensive experience throughout South and Eastern Asia, the question of corruption and “leakage” in Project funding has long been of prime interest to me. For many years, I have been beating the drums, advocating for adoption of Earned Value Management by various NGO’s and multi and bi-lateral funding agencies in particular as one of the ways to at least make the leakage of funds more difficult and if leakage does occur, make it easier for audits to uncover where the money went.

While I had long believed that Earned Value Management (and its alter ego, Activity Based Costing) were synonymous with “clean” project management, it was difficult to make any clear connection.

In the process of researching material for a course on Earned Value Management for Marcus Evans and other clients in SE Asia, I happened across a map produced by Transparency International (TI) which showed, through color coding, those countries perceived to be to most corrupt, going from lightest (least corrupt) to darkest, (most corrupt). http://www.transparency.org/policy_research/surveys_indices/cpi/2006

When I identified those countries who have FORMALLY ADOPTED Earned Value as a Government Policy, and marked them on the TI produced map, it became very apparent that preliminary evidence exists supporting the theory that perhaps a relationship exists between a country being PERCEIVED as not being corrupt and the adoption by that country of Earned Value Management. (See Figure 1)

Figure 1- Countries Formally Adopting Earned Value Management Compared to TI’s Corruption Index

As you can see, only the lighter colored countries (perceived to be “clean” have adopted Earned Value. This proved so interesting that I contacted Wayne Abba (“Mr. Earned Value”) and asked what other countries are in the process of adopting Earned Value, just to see if the apparent correlation between earned value and the perception of a country as not being corrupt remained.

To read entire paper, click here

 

Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English.  Original publication acknowledged; authors retain copyright.  This paper was originally published in PM World Today in April 2007.  It is republished here with author’s consent.

How to cite this paper: Giammalvo, P.D. (2007). Earned Value- A Leading Indicator of Clean Governance? Originally published in PM World Today, April 2007. Republished as a Second Edition; PM World Journal, Vol. VIII, Issue I (January 2019). Available online at https://pmworldjournal.net/wp-content/uploads/2019/01/pmwj78-Jan2019-Giammalvo-EVM-early-indicator-of-clean-governance.pdf

 



About the Author


Dr. Paul D. Giammalvo, CDT, CCE, MScPM, MRICS

Jakarta, Indonesia

 

 



Dr. Paul D. Giammalvo
, CDT, CCE (#1240), MScPM, MRICS, is Senior Technical Advisor (Project Management) to PT Mitratata Citragraha. (PTMC), Jakarta, Indonesia. www.build-project-management-competency.com.

For 25+ years, he has been providing Project Management training and consulting throughout South and Eastern Asia, the Middle East and Europe.  He is also active in the Global Project Management Community, serving as an Advocate for and on behalf of the global practitioner. He does so by playing an active professional role in the Association for the Advancement of Cost Engineering International, (AACE); Construction Specifications Institute (CSI) and the Construction Management Association of America, (CMAA). He previously served on the Board of Directors of the American Society for the Advancement of Project Management (asapm) http://www.asapm.org/ and served previously as the Chair of the Certification Board of the Green Project Management organization. http://www.greenprojectmanagement.org/ He is active as a regional leader and a compensated consultant to the Planning Planet’s Guild of Project Controls. http://www.planningplanet.com/guild

He has spent 18 of the last 45 years working on large, highly complex international projects, including such prestigious projects as the Alyeska Pipeline and the Distant Early Warning Site (DEW Line) upgrades in Alaska.  Most recently, he worked as a Senior Project Cost and Scheduling Consultant for Caltex Minas Field in Sumatra and Project Manager for the Taman Rasuna Apartment Complex for Bakrie Brothers in Jakarta.  His current client list includes AT&T, Ericsson, Nokia, Lucent, General Motors, Siemens, Chevron, Conoco-Philips, BP, Dames and Moore, SNC Lavalin, Freeport McMoran, Petronas, Pertamina, UN Projects Office, World Bank Institute and many other Fortune 500 companies and NGO organizations.

Dr. Giammalvo holds an undergraduate degree in Construction Management, a Master of Science in Project Management through the George Washington University and a PhD in Project and Program Management through the Institute Superieur De Gestion Industrielle (ISGI) and Ecole Superieure De Commerce De Lille (ESC-Lille- now SKEMA School of Management) under the supervision of Dr. Christophe Bredillet, CCE, IPMA A Level.  “Dr. PDG” can be contacted at [email protected].

To view other original work by Paul Giammalvo, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/dr-paul-d-giammalvo/