
184 Managing projects as investments: Earned value to business value
All of the above issues can be resolved by using what is sometimes
referred to as CPI-Labor, which does the earned value weighting based
only on labor, either labor hours or labor budget. For large and labor-
intensive projects, such as in corporate IT departments, earned value anal-
ysis and tracking can be enabled simply by budgeting activities in labor
hours and then requiring employees to report their time against each
activity. But even organizations with complex nancial systems can gen-
erate valuable analysis by separating out the labor component of the bud-
get and usi ...