by Stephanie Miles
Published on 14 November 2013
Benefits of using project portfolio management software
Project portfolio management is a standard set of business practices, also known as PPM. When used correctly, project portfolio management software and practices allow businesses to construct projects and initiatives that align with their organization objectives, maximizing time and efficiency at the corporate level.
At the core of PPM is a set of strategic principles. In order to adhere to these principles, businesses need to prioritize their projects, budget for all incoming and outgoing funds, track the progress of all ongoing initiatives, and allocate their resources appropriately. These are big tasks, and they require a level of commitment that few businesses are usually ready take on.
For businesses that are ready to jump on board the PPM bandwagon, the benefits can be significant.
With Project Portfolio Management software, organizations are better prepared to achieve their objectives, and they are more likely to see a financial profit from the projects they agree to take on. Essentially, PPM takes the guesswork out of running a large business. The principles of this management style make it easier for business executives to make clear-cut decisions at a moment's notice.
Given all these benefits, the question becomes: why aren't more businesses jumping on board? Over the years, PPM has gotten a reputation as a business style that is "overly complex" or "confusing." As a result, many business leaders have been hesitant to research how PPM could be used to improve efficiencies at their own organizations. In the past few years, a number of technology companies have stepped in and developed their own project portfolio management (PPM) systems. These cloud-based systems boil the basic principles of PPM into mathematical formulas, and provide business professionals with easy-to-use tools that allow them to accurately track and manage company projects throughout the sales pipeline.
Unique algorithms automatically analyze the data that businesses enter into their digital PPM systems and provide users with recommendations and adjusted priorities on a real-time basis. Technology developers have found a way to simplify PPM to the point where anyone can benefit from the principles, regardless of whether they understand how those principles and concepts work.
With so many cloud-based PPM systems currently on the market, it's not uncommon for professionals to report feeling overwhelmed when it comes time to decide which system to use.
Here are some key features that people should look for when selecting a PPM system for professional use.
PPM systems don't just help businesses track their current projects. Ideally, they should provide tools that help determine which projects a business should - and should not - take on next. Businesses should make sure to select PPM systems that take time, assets, and costs into account when analyzing their company portfolios.
It's not uncommon for change requests and error reports to come in over the course of a project. Businesses that frequently receive these types of requests from clients should make sure to select PPM systems that offer issue management features, which automatically prioritize and assign issues to key members of a company's staff.
Budgeting for large businesses involves more than basic income/loss statements. Financial management tools can be used to track all of the costs associated with a project, and real-time performance indicators notify users when they have over-allocated their resources and they are close to over-spending.
Employees are the most important assets for any organization. Businesses with five or more employees should consider adopting PPM systems that offer resource management features. Using these tools, businesses can effectively deploy their employees to maximize their time and investment. Resource management tools should also provide insight into which projects are eating up more resources than they should.
If you are interested in implementing a PPM software in your organization you can read this article on the most popular project portfolio management software.