When used properly, EVM helps team members, project managers and their bosses accurately gauge progress against an established project plan. EVM also enables teams to accurately assess where they'll be in the future, allowing managers to make key decisions on resource allocation or revisions before projects unexpectedly spin out of control.

"When people report percent complete, you might get 'I'm 50 percent complete,' based on that person's intuitive knowledge. Earned value analysis takes that guesswork out of it," says Robert Leto, director of the IT effectiveness practice at PricewaterhouseCoopers Advisory Services LLP in New York.

The Defense Department has employed EVM for years, requiring its contractors to use it for reporting on federal projects.

So, what exactly is EVM? "It comes with a reputation for being complicated and difficult, but I don't think anything could be farther from the truth," says John M. Nevison, president of Oak Associates Inc., a Maynard, Mass.-based firm that provides consulting and training services related to project management.

EVM is based on several figures that are used in calculations to determine whether a project is adhering to schedule and budget. Results can be measured in terms of money or time.