Tools

10 compelling reasons to invest in professional project management tool

A professional project management tool provides significant opportunities to enhance project management efficiency within organizations. Without a doubt, such software automates numerous processes, improves communication, and coordinates project tasks more effectively. Discover why investing in a professional project management tool is worthwhile—below are 10 compelling reasons.

1. Effective planning

It’s true that you can create a project plan in Excel just as you would in a professional project management software. However, when analyzing the process of creating a project plan, it becomes clear that a professional project and portfolio management software offers far greater benefits and capabilities. One major advantage is multi-user access, ensuring all team members work with the same data. When someone updates the project plan, others can see the changes immediately. Another benefit is the ability to have project plans automatically approved. This approval process follows the pre-designed authorization workflow established within the organization. Approved project plans allow for monitoring deviations during execution. As illustrated below, the approved project plan is shown as black lines, while the current project status is represented by thick blue bars.

2. Monitoring progress

Monitoring project progress is a crucial task for project managers, as well as for the Project Management Office (PMO), Project Sponsor, and, in the case of strategic projects, the company’s management. To remain competitive, organizations must efficiently achieve strategic objectives—many realized through projects. Therefore, progress monitoring requires access to clear, real-time status updates, which only a professional project management system can provide. For the PMO or management, concise, real-time summaries are essential. The illustration below shows how company management can observe deviations from the project plan on a portfolio roadmap. It displays schedule deviations for each project as well as completed and pending milestones.

 

Additionally, tracking budget deviations is critical in monitoring project progress, as shown in the following diagram.

3. Team organization

Managing a project team is a key competency for project managers. This can be divided into two areas: motivating the team and managing conflicts, and efficiently coordinating project tasks. A professional project management software is beneficial in the latter. A good system assigns project tasks, ensuring nothing is overlooked, as it sends notifications and centralizes individual tasks for each team member. Additionally, it includes an internal communicator, consolidating all project-related communication in one place. Documents are also stored in one location and are accessible to authorized team members. For motivation, project managers can monitor each team member’s workload, which is essential as employees work on multiple projects simultaneously.

4. Risk prediction

Risk management is vital for achieving project goals, especially in large and complex projects with numerous uncertainties during the planning phase. For such projects, maintaining a project risk register is essential. Risks may pertain to the overall project or specific tasks in the project schedule. Professional project management software significantly improves risk management. Displaying key project risks directly on the schedule is a significant advantage for the project manager and team. For instance, a warning triangle icon next to tasks indicates associated risks.

The software also allows for assigning responsibility for specific risks to individuals, professionalizing risk management. A project risk register, such as the one shown below, should be regularly analyzed and updated.

5. Resource optimization

One common cause of demotivation in project teams is excessive workload. This often occurs because skilled employees are sought after by multiple project managers. Without information on an employee’s workload from other projects, managers may overburden the same individual, leading to disengagement. Such situations can be avoided with a project management system that includes resource management functionality. The diagram below shows planned resource workloads over the next three months, highlighting overburdened individuals and when the overload occurs.

Effective resource planning helps PMOs manage priorities and distribute projects across the timeline, resulting in a predominantly green status in workload dashboards.

6. Simplified reporting

Creating project status reports often consumes significant time for PMO staff, particularly in organizations without appropriate software. A professional project management system allows for the design of customized reports that are always updated with real-time data and accessible to authorized users. These reports can often be exported to formats like Excel for sharing with stakeholders outside the system. Below is an example of a report on significant project risks.

Many organizations also prepare monthly project status presentations for management using PowerPoint. A good project management software can automate this process as well.

7. Focus on priorities

Prioritization in project management has several dimensions. First, it involves selecting potential project ideas that will bring the most outstanding value to the organization. The outcome of such prioritization for the “Strategic projects” portfolio is shown below. The most attractive projects appear on the green background in the lower-right corner of the matrix.

Similarly, the system can prioritize individual tasks within a project, as shown in the illustration below.

8. Process improvement

Organizations learn from their mistakes and by analyzing lessons from completed projects. Such insights should be collected, analyzed regularly, and used to improve processes. The Project Closure Report is a common document for gathering knowledge about inefficiencies in completed projects. An example of such a report is shown below.

Many companies also create templates for recurring project types, incorporating accumulated organizational knowledge. These templates are continuously refined based on new experiences.

9. Team collaboration

Collaboration within project teams and between different teams working on programs is a critical aspect of project execution. Professional project management systems include internal communicators, consolidating all project-related communication in one place for authorized personnel to access quickly. Moreover, they allow for creating dependencies between tasks from different projects, which is essential for program management. Such dependencies are shown in the diagram below.

10. Scalability

Scalability in project management can take several forms. A scalable project management system suits organizations at various stages of developing their project management culture. For instance, unused modules can be hidden and activated when needed. Additionally, the program should support the simultaneous execution of multiple projects with varying complexity levels. It should facilitate, automate, and adapt to the organization’s needs while incorporating best practices and minimizing limitations. Flexibility is key.

Invest in a professional project management software and elevate your organization