What CPI and SPI really tell executives
CPI and SPI are not just project controls. Used properly, they help leadership understand whether investment is translating into progress and where intervention may be required.
CPI explains cost efficiency
Cost Performance Index compares earned value with actual cost. A CPI below 1.0 signals that the project is generating less earned value for the money spent, while values above 1.0 indicate stronger cost efficiency.
SPI explains schedule efficiency
Schedule Performance Index compares earned value with planned value. It provides an early signal that progress is diverging from the baseline — before a late milestone becomes an obvious executive problem.
The trend matters more than one number
Executives should look at direction, persistence and context. A single index can be misleading; a deteriorating trend across reporting periods is much more actionable.
Turn metrics into decisions
The value of EVM appears when indicators lead to action: re-sequencing work, resolving dependencies, changing scope, reallocating capacity or resetting expectations.