The effectiveness of the earned value management system : a case for local economic development projects.

Abstract

The purpose of this study was to explore monitoring and evaluation (M&E) of the public sector and to determine whether local economic development (LED) projects can be monitored and evaluated using project control techniques such as earned value management method (EVM). This study provides insight into institutionalization of monitoring and evaluation (M&E) within the context of assessing public sector development programmes and projects. Based on the deductive reasoning from international experience, EVM is critical for periodic monitoring of a project or programme to generate adequate information for assessment of performance of an organization. The government is the main role player in local economic development, especially local government. The study was exploratory and employed qualitative methods to elicit information from the respondents whom were mainly the public sectors employees. The purposive sampling technique was employed to undertake In-depth interviews with the selected respondents from different spheres of government in KwaZulu Natal. The study found that an effective monitoring and evaluation system was paramount to assess if the government was achieving its strategic goal. The study also found that the public sector has challenges of monitoring and evaluation. There was no system of M&E and it was undertaken haphazardly and poorly coordinated. LED was found to be poorly conceptualized or understood with no LED M&E plans at municipal level. A conclusion is that EVM is effective for monitoring and evaluating development projects including LED projects.