Benefits of Project Portfolio Management

Project Portfolio Management (PPM) software can offer real-time analysis and adaptability. The centralized management of projects aligns objectives with implementation by using the most advanced collaboration tools. It supports strategic planning, design, and implementation within an environment of administration and support. By using a centralized management system that can manage multiple projects, errors get reduced, and results are vastly improved. Through superior resource allocation, budgeting, risk assessment, and more, there are many advantages to utilizing a project portfolio management software, as summarized below.

Improving Productivity with Project Portfolio Management

Managing productivity with project portfolio management software has many advantages. Productivity is the dynamic alignment of many tasks and actions across various teams, which collectively contribute to goals and action-oriented tasks. By identifying issues before they arise, clarifying goals, and always knowing which ones aren’t moving the project forward, teams get empowered, and productivity increases. Not only does this keep the entire team on course, but it also identifies issues like lack of clarification and focus.

Additionally, productivity assessment creates incentives for staying on course by highlighting the team’s shared vision and emphasizing what is working and what needs correcting. Team priorities are an essential aspect of productivity. Not only do team priorities highlight the specific input needs from various departments and stakeholders, but it also emphasizes the importance of results-oriented tasks. By monitoring performance-driven goals and adjusting accordingly, teams work together well and provide maximum results.

Achieving Project Objectives

The clarification of objectives is an essential aspect of project portfolio management software. Typically, there are different objectives for different purposes. These multiple objectives might include budget, timeline, and of course, performance objectives. Implementing project portfolio management software helps in achieving objectives more expediently as it becomes the common goal towards achieving targets. A good project plan helps clarify objectives that are specific and measurable.

Portfolio Risk Assessments

Another advantage of using a project portfolio management software is the management of risk assessments. This process evaluates the potential risk factors that affect the overall project, such as:

• As the project progresses, it becomes increasingly important to identify anything that may impede progress
• By recognizing the risks, before they become full-blown problems, they can be managed and perhaps avoided altogether
• A shortage of resources or budget or company changes are just some of the issues that can crop up along the way
• A good project plan can foresee these challenges and assist with contingency plans that are beneficial in preventing risks that may put the project in danger in terms of budget, resources, or time
• Having procedures and processes in place that avoid or mitigate the impact of specific risks is a significant factor in maintaining the continuity of a project.

Communication Challenges in projects

Communication is dynamic. Changes are inevitable as teams adjust to different situations and challenges, problems come up, and goals are corrected. Even objectives may need adjusting at times. That’s why a project portfolio management software is crucial for communication on a project. It efficiently enables communication across teams and projects. Adaptability is vital as the importance of immediately applying changes to the project is essential. That’s why it’s necessary for any changes that occur that affect the project to be conveyed to the whole team as quickly as possible.

Instead of communication challenges and problems being revealed to different teams slowly in meetings or emails, a good project, a project portfolio management software will convey these changes immediately to all involved parties. Communications tools that are inherent in the project planning software makes communication almost seamless. Communication is essential for team members, stakeholders, and partners and anyone with a vested interest in being informed about the project. For example, timelines are critical, and everyone must be kept up-to-date and aware of any changes that affect the project.

Importance of Policies and Procedures

Policy and procedures are guidelines that help define the projects. Project portfolio management solutions adequately reflect these guidelines and procedures by including them in a way that must be adhered to. They are an important part of project management as they ensure adherence to specific instructions and procedures. Many times, these policies may directly or indirectly affect the scope of a project. These policies are written as directives for each member of the team so that they follow as well as implement them in their tasks and goals. They must be clear and straightforward in a way that there is no confusion as to implementation. Policies that reflect company standards are a vital part of a good project plan and can be referred to at any time. An update to the policy can be reflected immediately so that all interested parties are aware.

Resource Allocation

A good project plan benefits resource allocation. By knowing of all the resources needed for a project, everyone is better prepared to reach the ultimate project objective. Whether it’s people, equipment, time, or budgeting, resources are not unlimited. A good project plan enables stakeholders to implement resource allocation planning as thoroughly as possible. Resource allocation helps determine what allocations are available and where there may be shortages. It will also show where they may be problems or bottlenecks that could crop up in the future. For example, there could be a delay in equipment or employee vacations that span a certain amount of time. These issues need to be accounted for ahead of time so that they don’t affect other resources and delay the project.

Advantages of Financial Planning

One of the significant advantages of a Project Portfolio Management software is that it benefits company budgeting by monitoring projects across different levels, including teams, tasks, and resources. In most cases, the budget drives the funding for a project, which is why it is so important to be monitored and managed. A comprehensive budget gives management a clear idea of how the money will be used and spent over any given period and how it applies to each project as well as the various tasks within each project. This can be crucial in identifying where a team or stakeholder is running over budget and which resources or tasks are creating an inflated financial impact, the progress of at all levels by project, task, or team member.

Conclusion

A Project Portfolio Management software helps to drive change in a dynamic environment that is implemented in phases and keeps sponsors and stakeholders driven by goals. By tracking performance and aligning performance with goals, projects are kept on track most expediently and efficiently. Any project can lose focus and get off track if not adequately managed. A Project Portfolio Management software solves this challenge by applying the needed strategic planning, allocation management, and monitoring for all projects. By bridging the gap between goals and implementation, project portfolio management software provides an effective system with countless advantages.

Written by:

Sabrina Christine
January 16, 2020