Ever set your alarm for 6 AM but kept hitting snooze until it was suddenly 7? Then you're rushing out the door, skipping breakfast, and running late. What if you had a system that reminded you at the moment once you started falling behind? This can give you just enough time to adjust and stay on track. That's exactly where you realize why variance tracking is important in project management.
It is just like setting reminders to keep you on track. In addition, this mechanism can help you with constant alerts to correct course before they grow into major problems.
Wondering what is a variance in project management? Let's understand this and see how it is helping the leading project managers to solve big challenges in their lives.
Variance tracking is the clear picture of the original project performance and the planned performance. By identifying deviations at the earliest, you can take corrective measures beforehand to keep your tasks aligned with your project constraints.
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These days, being a project manager can be a big struggle for you. You have to deal with too much data, leading to inefficiency, and a lot more.
Solution:
Variance tracking focuses on the essential project metrics. These include cost, schedule, and scope. It becomes easy for you to prioritize what matters.
Did You Know?
Harold Kerzner, a renowned project management expert, says, "Successful project management isn't about tracking everything; it's about tracking the right things."
You plan to spend Rs. 1,200 at your favorite restaurant, but surprise taxes push the bill higher than expected. Similarly, a cost overrun in project management drains resources and exceeds your budget.
Solution:
Cost variance tracking can help you compare actual costs to the planned budget, enabling you to take corrective action before your costs spiral.
You can also measure it by using the cost variance formula in Project Management i.e.
CV= EV-AC
*CV= Cost Variance
*EV = Earned Value
*AC= Actual Cost
Did you know?
PMI's Pulse of the Profession Report states that "Poor budget management is one of the top reasons for project failure."
Do you know a project team might miss its deadline due to overlooked delays like slow approvals or unexpected issues? That's why deadlines are critical, but delays are inevitable if not tracked.
Solution:
Tracking schedule variance in project management (the difference between actual and expected project schedule) lets you spot delays early. It helps you take quick measures to match your actual deadlines. But, how do you calculate schedule variance?
Schedule Variance Formula: SV = EV-PV
*EV= Earned Value
*PV= Planned Value
Did You Know?
Henry Gantt, creator of the Gantt chart, emphasized, "If you can't measure it, you can't manage it." Variance tracking helps you manage timelines effectively.
You walk into your favorite pizza outlet, order a pizza, and later decide you want extra cheese—but the pizza is already being made. Similarly, in project management, unapproved changes sneak in, increasing complexity and cost. This is called scope creep.
Solution:
Scope variance tracking ensures the project stays aligned within the decided scope of work, helping to prevent unauthorized changes.
Did You Know?
The Standish Group's Chaos Report found that scope creep accounts for 34% of project failures.
Let's assume you assign your house help with multiple household chores while your driver has little to do, causing burnout on one side and wasted time on the other. Similarly, in project management, poor resource allocation leads to inefficiency, delays, and increased costs.
Solution:
Variance tracking helps you monitor resource allocation, ensuring balanced workloads and optimizing productivity.
Did You Know?
Harvard Business Review states, "Effective resource management can increase productivity by up to 20%."
Let's say you ordered shoes online but received no updates on its progress, it makes you anxious about their delivery. Similarly, in project management, when stakeholders don't get clear updates, they lose trust in the project.
Solution:
Variance tracking allows you to report deviations regularly, fostering transparency and trust.
Did You Know?
McKinsey & Company found that "Transparency in project tracking increases stakeholder trust and engagement."
Let's assume you are chatting with your best friend for hours without checking the data limit, and suddenly, the key message that you were sending was not sent. In project management, failing to track risks early can lead to unexpected obstacles that disrupt progress and cause major delays.
Solution:
Variance tracking serves as a lens to see the red flags, helping you detect potential risks before they become major issues.
Did You Know?
Gartner reports that "60% of project failures are due to poor risk management." Variance tracking enhances your ability to identify and mitigate risks earlier.
You order essential office equipment for a new branch opening, but the supplier delays the shipment, pushing back the entire setup. External disruptions, like vendor delays, can stall progress and affect project timelines.
Solution:
Variance tracking helps you adjust the plan when external factors impact your timeline or budget.
Did You Know?
Rita M, a project management expert, says, "External factors can derail even the best-laid plans."
Let's visualize a software development team constantly receiving new feature requests and facing frequent deadline shifts. Over time, this continuous pressure leads to burnout and frustration, lowering the team's morale and productivity.
Solution:
Variance tracking allows you to redistribute workloads based on actual progress, preventing burnout and boosting morale.
Did You Know?
Harvard Business Review finds that "Project team morale can improve by up to 30% when managers adjust workloads using data-driven insights."
Managing a product launch while planning a team event with changing budgets can quickly become overwhelming. Multitasking projects with different timelines and resources can lead to burnout and inefficiency.
Solution:
Variance tracking makes it easier to monitor progress and provides a consolidated view of several projects.
Did You Know?
David Allen says, "Multitasking dilutes focus and productivity." This tracking process keeps you focused on what matters across projects.
You're building a website but only examining it at the end, finding issues that could've been caught earlier. Without tracking progress throughout, it's tough to ensure the final deliverable meets quality standards.
Solution:
Variance tracking highlights potential quality issues early, allowing you to take corrective actions before final delivery.
Did You Know?
Philip Crosby said, "Quality is free, but it's not a gift." Variance tracking ensures that quality issues are caught early, saving time and resources.
You're managing a project but only get updates once a month, making it hard to spot issues early. Without a broad picture of the tasks and their metrics to check the performance beforehand, it's difficult to manage projects effectively.
Solution:
Variance tracking gives you a real-time picture of your project's performance so that you're always in control.
Did You Know?
Peter Drucker famously said, "What gets measured gets managed." Variance tracking lets you measure and manage project performance efficiently.
Frequent unapproved changes to a software update confuse and derail the timeline. Without effective change management, this leads to delays and increased costs.
Solution:
Variance tracking allows you to assess the impact of changes, ensuring they're approved and implemented without derailing the project.
Did You Know?
According to Prosci, "70% of change initiatives fail due to poor change management." Variance tracking helps you manage changes effectively.
A company invests in a new product, but unexpected budget cuts force them to cancel midway. Project termination risk happens when unforeseen issues cause a project to end prematurely, wasting resources.
Solution:
Budget variance tracking helps you assess the point when a project may need to be adjusted or terminated before further resources are wasted.
Did You Know?
Jim Highsmith notes, "The ability to abandon a failing project early can save up to 70% of the cost." Variance tracking helps make that decision before resources are wasted.
With Oodles, variance tracking becomes effortless, giving you real-time insights and control over deviations. It's smart automation and seamless integration helps you make data-driven decisions with confidence. No more manual errors or guesswork—just clear, accurate tracking.
Explore how Oodles can streamline your process today.
