It is the difference in estimated effort and the effort actually needed. Work performance is monitored periodically to find if there is any variance in efforts so that corrective actions could be taken.

Effort variance in project management refers to the difference between the planned or budgeted effort for completing a task or project and the actual effort expended. It is a measure of the deviation from the planned effort, whether in terms of time, resources, or costs.

In an interview setting, you could provide the following comprehensive answer:

“Effort variance is a key performance metric used in project management to evaluate the variance between the planned or budgeted effort and the actual effort expended in completing a task or project. It’s essentially a measure of the deviation from the planned effort, whether in terms of time, resources, or costs.

For example, if a project was estimated to require 100 hours of work to complete a certain task, but it actually took 120 hours, the effort variance would be 20 hours. This variance could be due to various factors such as unexpected obstacles, inefficiencies, or changes in requirements.

Effort variance is important because it provides insights into how well a project is progressing compared to the initial plan. A positive variance indicates that less effort was expended than planned, which could suggest efficient resource allocation or effective project management. Conversely, a negative variance suggests that more effort was required than anticipated, which could signal potential issues such as scope creep, resource constraints, or poor planning.

Managing effort variances effectively involves identifying the reasons behind the deviations, adjusting plans or resources as necessary, and implementing strategies to mitigate future variances. By monitoring and analyzing effort variances throughout a project’s lifecycle, project managers can make informed decisions to keep projects on track, within budget, and aligned with stakeholders’ expectations.”