Project Financial Management

This article discusses the importance of project baselines in project performance and how EVM and change management plan help project managers in prioritization and adjustment of baselines in PLC. It also explains the concept of EVM and change management plan in project management.

Running head: PROJECT FINANCIAL MANAGEMENT
Project Financial Management
Name of the Student
Name of the University
Author’s Note:

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PROJECT FINANCIAL MANAGEMENT
Table of Contents
Question 1..................................................................................................................................2
Question 2..................................................................................................................................2
References..................................................................................................................................4

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Question 1
Importance of Project Baselines in Project Performance
The project baselines are considered as the primary requirements for any project. The
baseline is the respective value as well as condition against which each and every future
measurement is being compared. In project management, there are three distinct baselines,
known as schedule baseline, scope baseline and cost baseline (Kerzner & Kerzner, 2017).
The proper combination of these three project baselines is the baseline for performance
measurement for any project. It is extremely important for all projects since baseline is the
fixed schedule that represents the standard, utilized for the proper measurement of project
performance.
When the project scope is being changed, the specified schedule must be accustomed
and hence a newer revision of that particular baselines must be utilized. According to the
project management rules, the establishment of the project baseline is termed as the formal
end of project plan and also the initiation of the project execution and control (Burke, 2013).
The controlling of project baseline is one of the major aspect for project success. The changes
could drastically impact the project and thus this is extremely important and significant for all
projects.
Question 2
Discussing how EVM and Change Management Plan help Project Managers in
Prioritization and Adjustment of Baselines in PLC
EVM or earned value management is stated as the technique for project management,
which helps in the measurement of project progress as well as performance within an
objective manner. This particular technique has the core capability of combining the various
project management measurements like scope, cost and time (Kerzner & Kerzner, 2017). It is

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extremely helpful for the project managers as it has the ability to provide appropriate forecast
of project performance problem. Moreover, the other areas like control and planning are also
impacted by the utilization for the project managers. With the help of methodology, the
project scope is being improved and project performance is analysed properly. The major
features of the EVM implementation are project plan, budget cost of work schedule or
BCWS, budget cost of the work performed or BCWP (Burke, 2013). Regarding change
management, it is the systematic approach that helps in dealing with the transformation or
transition of the organizational processes, technologies and goals. Both EVM and a good plan
of change management help the project managers to execute the project life cycle easily and
promptly.

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References
Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.