3.4Indicators, dashboard & earned value
The essentials in 30 seconds
- A dashboard (5-8 indicators on one page) shows the project manager and the steering committee the project's health at a glance.
- Earned value (EVM) crosses planned value, earned value and actual cost to measure objectively BOTH schedule AND cost.
- SPI < 1 = late; CPI < 1 = more expensive than planned: indices that detect drifts early, with figures to back them.
Running case — Bilal proves the drift with 2 figures
Mid-project, everything looks "roughly on time" according to Bilal's team. But his one-page dashboard shows SPI = 0.85 and CPI = 0.90: we advance slower than planned and spend more than the value produced. Bilal escalates to the steering committee with causes and options (targeted help, scope arbitration) while there is still time to correct. The committee decides on figures, not impressions.
Sequel to cases 3.1-3.3 — Bilal moves from feeling to indices.
1. The project dashboard
Steering means measuring. A project dashboard gathers key indicators (progress, schedule and budget adherence, risks, quality, blockers) to give a synthetic, honest view of project health at a glance. Bilal limits it to 5-8 indicators on one page, readable by the steering committee.
Too many indicators drown information: choose few, but keep them updated and react as soon as the trend degrades.
2. Earned value (EVM)
The most powerful method is earned value (Earned Value Management). It crosses three quantities — planned value (what was planned), earned value (what is actually done, valued) and actual cost (what was spent) — to answer objectively "ahead / late? under / over budget?".
Through indices: SV / SPI (schedule), CV / CPI (cost). An index below 1 signals drift — early, with figures. On small projects, a simplified version (done vs planned vs spent) is enough: the key idea is never confusing "spent" with "done".
🔎 Concrete example — When the index drops below 1
A warning signal.
SPI = 0.85 → we advance slower than planned (late).
CPI = 0.90 → we spend more than the value produced (overrun).
→ analyze the cause, act (help, arbitration, reserve), escalate to the committee.Outcome: decisions on figures, not impressions.
Reflex: a simplified EVM version on small projects.
Section vocabulary
- Project dashboard
- A synthetic view of key indicators (progress, schedule, cost, risks, quality) to steer at a glance.
Simple example: Bilal's single page read at the committee each month.
What it is not: a 20-page report nobody reads.
Reflex: 5-8 indicators max, updated, on one page.
- Earned value (EVM)
- A method crossing planned value, earned value and actual cost to measure schedule and cost.
Simple example: Bilal compares planned, valued actuals and spent.
What it is not: consumed budget alone taken as progress.
Reflex: never confuse "spent" with "done".
- SPI / SV
- Schedule Performance Index / Variance: they measure ahead or delay (SPI < 1 = late).
Simple example: Bilal's SPI at 0.85: proven delay, not felt.
What it is not: a budget overrun (that is CPI / CV).
Reflex: as soon as SPI dips, look for the schedule cause.
- CPI / CV
- Cost Performance Index / Variance: they measure cost performance (CPI < 1 = more expensive than planned).
Simple example: CPI at 0.90: each euro spent produces less value.
What it is not: a schedule delay (that is SPI / SV).
Reflex: as soon as CPI dips, look for the cost cause.
- Planned value / earned value / actual cost
- The 3 EVM quantities: planned, actually done (valued), spent.
Simple example: Bilal aligns all three before each committee.
What it is not: the initial budget alone never updated.
Reflex: always compare all three together.
In practice — Steering by indicators
- Choose 5-8 key indicators: progress, schedule variance, budget variance, open risks, blockers.
- Gather them in a synthetic dashboard (one page), readable by the steering committee.
- Get started with earned value: compare what is actually done (earned value) to planned and spent.
- Interpret the indices: SPI < 1 = late, CPI < 1 = overrun. React as soon as the trend degrades.
Ready-to-say script — alerting the committee with EVM (1 min)
"Our SPI is at 0.85 and our CPI at 0.90: we are 15% late and 10% over cost to date. Main cause: testing is stalling. I propose targeted help and a minor scope arbitration. Without a decision, the gap will grow."
To say with figures in front of you, with causes and 2 options: you alert early with solutions.
Copy-paste template — one-page dashboard
PROJECT HEALTH AS OF: _______________ (green / amber / red)
PROGRESS (remaining work + deliverables): _______________
SCHEDULE (SPI / SV): _______________ | COST (CPI / CV): _______________
OPEN RISKS (top 3): _______________
BLOCKERS + EXPECTED DECISIONS: _______________Very small business / tight budget
Three figures are enough: overall remaining work, spent vs planned, 1 top risk — on a whiteboard.
SME in Algeria
Bilal prints his one-page board for the committee: SPI / CPI + remaining work + 3 risks, no jargon.
Software project
Value in delivered and tested points or lots: only tested counts in earned value.
Construction / field project
Value in accepted quantities: laid but unaccepted work is not earned value.
✓ Best practices
- Limit the dashboard to 5-8 key indicators, on one page.
- Measure actually produced value, not just spent amounts.
- React as soon as SPI or CPI degrades (trend).
✗ Common pitfalls
- Drowning the dashboard under too many indicators.
- Ignoring a CPI / SPI below 1.
- Believing EVM is for large projects only (a simplified version is enough).
Key takeaways
- A dashboard summarizes project health (5-8 indicators).
- Earned value (EVM) objectively measures BOTH schedule AND cost.
- SPI < 1 = late; CPI < 1 = more expensive than planned.
- These indices detect drifts early, with figures to back them.
48h challenge — apply tomorrow
Compute a simplified SPI and CPI on your project (done vs planned vs spent) and note 1 action if an index drops below 1.
- I can say what SPI and CPI below 1 signal.
- I can tell spent from done.
- I computed my indices (even simplified).
Frequently asked questions
Is earned value not too complex for small projects?
Its full version may look heavy, but the principle holds at any scale: measure actually produced value, not just time or money spent. On a small project, a simplified version (real progress vs schedule vs consumed budget) is enough. Adopt rigour proportionate to the stakes: never confusing “spent” with “done” holds whatever the size.
What to do when CPI or SPI drops below 1?
It is a warning signal: cost drift (CPI) or schedule drift (SPI). Analyze the cause, act (targeted help, scope arbitration, reserve) and escalate to the committee if the gap exceeds your margin. EVM's value is alerting early, when correcting is still possible, rather than recording failure at the end.
Bilal's board shows SPI 0.85 and CPI 0.90. What to conclude?