Tools

PPM software – what is it and why does your company need it?

Project management has become one of the key pillars of effective organizational functioning today, both in the private and public sectors. At a time when companies are implementing dozens or even hundreds of different projects simultaneously, there is a need for centralized management at the strategic level. It is in this context that there is increasing talk of PPM (Project Portfolio Management) software, i.e., tools for managing projects, portfolios, and project programs. This article introduces the concept of PPM software and shows how a PPM system can increase the effectiveness of project management in an organization.

In this article, you will learn: What PPM (Project Portfolio Management) software is Why large organizations use it Key functions at project and strategic levels Main challenges PPM helps solve Features to look for when choosing a system Benefits such as control, prioritization, and transparency

What is PPM software?

There are numerous programs available for managing daily tasks and projects, as well as those that support the daily work of project teams. However, there are far fewer programs that allow organizations to implement dozens of complex projects of various types simultaneously. The larger the organization and the more complicated its projects, the more it needs PPM (Project Portfolio Management) software. A PPM system is characterized by the fact that it allows you to manage individual projects—plan them and manage their implementation—as well as manage these projects at a strategic level. This ensures data and information consistency within the organization, which has a significant impact on the quality of management and the effectiveness of decision-making. PPM software, such as FlexiProject, provides a complete set of tools for both operational and strategic project management.

In terms of individual project management, the PPM system should at least enable:

• Project Charter and Project Closure Card management – in FlexiProject, as shown in the figure below, you can create any shape of project card

• Building project schedules with a Gantt Chart
• Defining and managing project products
• Planning and managing the project budget
• Risk management
• Project plan management
• Project communication

In terms of strategic project management, PPM software should at least enable:

• Linking projects to the organization’s strategic goals
• Building scoring models to select the best projects for implementation
• Resource management – the illustration below shows the resource management module available in the FlexiProject PPM system

• Creating and managing project portfolios
• Creating and managing project programs – the figure below shows the project program function available in PPM FlexiProject software

• Cyclical and ad hoc reporting
• Management in capital groups
• Defining standards for project, portfolio, and program management

What companies need PPM?

PPM software is primarily intended for large organizations and capital groups. This is because large organizations and capital groups carry out many projects of varying scale and nature simultaneously. Effective management of multiple projects in a complex organization requires appropriate methodologies and dedicated tools, which certainly include the PPM system. The challenges addressed by the PPM system in large organizations are:

1. Effective management of projects of a similar nature or aimed at achieving a specific strategic goal through the possibility of grouping them into portfolios.
2. Management of key strategic resources. It turns out that achieving project goals within the set timeframe and budget depends to a large extent on providing these projects with adequate resources. The tendency of companies to implement an increasing number of projects in parallel creates the risk that not all of them will have the resources necessary to achieve their goals.
3. Several strategic objectives are implemented through project programs. This means that several or a dozen or so projects are logically linked and aimed at achieving an important strategic objective. The challenge in this case is the efficient coordination of the projects that make up the program.
4. The high demands of company boards and managers for high-quality reporting on the company’s project situation put pressure on the availability of good PPM software.
5. Large organizations use different IT programs and expect consistency in the data presented in various reports. It is unacceptable for the project budget in the financial accounting system to show deviation X. In contrast, the budget for the same project in another system shows deviation Y. This means that the data is not consistent. The PPM system is most often integrated with other systems in the organization, which ensures the required data consistency.
6. Speed of decision-making. The PPM system allows you to automate decision-making paths, which means that all required decisions are made without unnecessary delay.

Key features of effective PPM software

What features and capabilities should a compelling PPM tool offer? Here are the most essential features to look for:

1. Strategy

Virtually every large organization has a defined strategy. In such a dynamic, competitive environment in which companies currently operate, the speed and effectiveness of achieving strategic goals become one of the most critical priorities. A commonly used approach is to define projects and link them to strategic objectives. Assuming that projects have been appropriately selected, planned, and are in progress, the PPM system enables them to be monitored effectively within the context of the implemented strategy. The figure below from the PPM FlexiProject program shows the link between the company’s strategic goals and the relevant projects.

2. Project portfolios

The implementation of significant strategic goals requires grouping projects into portfolios. If the company’s strategic goal is innovation, it will undoubtedly create a portfolio called “New Product Development” or a similar name. The advantages of making such a portfolio are:

• The ability to track the progress of all “Strategic projects’ on a single roadmap. Such a roadmap from the PPM FlexiProject program is shown in the illustration below.

• The ability to track the financial situation of these projects on a single screen
• Project risk management at the portfolio level
• The ability to perform simulations and regularly decide on required portfolio adjustments

3. Project programs

Let’s imagine that a retail company intends to open its flagship store in the capital of another country. Such a goal requires the launch of at least several or even a dozen or so projects that are closely related to each other. These projects include finding a location, furnishing the store, providing IT infrastructure, organizing logistics, hiring and training people, and marketing activities. All these projects are interrelated and form a project program. A sound PPM system, such as FlexiProject, offers a project program management function.

4. Strategic project resource management

One of the key reasons why projects fail to achieve their goals is inadequate allocation of the required resources. Good PPM software allows you to allocate resources to projects, monitor resource utilization on an ongoing basis, and make appropriate adjustments.

5. Reporting

Efficient decision-making on projects is possible when managers have access to reports to inform their decisions. We are talking about project dashboards, periodic reports, and ad hoc reports. Good PPM software allows you to automate the entire management reporting process significantly. In addition, such software ensures that all data is consistent and accurate.

How to choose the right PPM software for your organization?

Organizations that decide to implement PPM software usually already have considerable experience in project management. As they undertake an increasing number of projects, such organizations have indeed attempted to build simple IT solutions using tools such as Excel, PowerPoint, SharePoint, and others. However, the growing demands of project managers, sponsors, steering committees, and company management soon revealed that such simple solutions were insufficient. This automatically leads to the decision to implement a professional PPM system. To choose the right PPM system for an organization, it is essential to define the requirements clearly. Among these requirements, the following aspects are worth noting:

• Should the system be installed on our own servers or should it be a cloud-based solution?
• What are our expectations regarding the integration of PPM software with other systems operating in the organization?
• What specific functions do we expect from the PPM system?
• Does the company offering the PPM system also offer professional support during and after implementation?
• How advantageous is the software licensing model?
• Are specific customizations possible to adapt the system to the specific needs of the organization?
• To what extent should the PPM system be flexible and configurable?

Benefits of implementing a PPM system

1. Better control over all projects in the organization: A PPM system allows you to manage your entire project portfolio from one place—you have a complete picture of what is happening, what stage the projects are at, and which ones bring the most value.

2. Prioritization of projects in line with strategic goals: PPM makes it easier to select and implement only those initiatives that truly support the company’s long-term strategy.

3. Optimization of resource utilization (people, budget, time): The PPM system helps you assign the right people to the right projects and better manage team availability.

4. Early detection of risks and project overloads: Integrated reports and alerts allow you to quickly respond to delays, budget overruns, or inefficient processes.

5. Increased transparency and better communication: All stakeholders have access to up-to-date information – from project managers to management.

6. Automated reporting and analysis of project data: No more manually compiling information in Excel. PPM offers ready-made reports, KPIs, and dashboards for decision-making.

7. More effective business decision-making: Management and managers can make decisions based on data rather than intuition, resulting in real savings and greater efficiency.

8. Enhanced collaboration between teams and departments: PPM integrates various company areas, facilitating cooperation among project teams, finance, HR, and IT.

9. Standardized project management processes: With PPM, an organization can implement a uniform project management model, which translates into greater predictability and quality of execution.

10. Scalability of activities as the organization grows: PPM software grows with the company – it is suitable for both a dozen or so and several hundred projects.

Unlock strategic value with the right PPM tool

Achieving an organization’s strategic goals without a sound PPM system is difficult. Imagine a situation where the company’s management does not know which projects support specific strategic objectives, what the status of individual programs is, or what results the development project portfolio is bringing. In such a case, it is impossible to manage the organization effectively and achieve above-average success. In a complex organization that takes an ambitious approach to implementing its strategy, PPM software is a must.

👉 Ready to bring PPM software to your organization? Contact the FlexiProject team and request a demo!