The PPM tool for project portfolio management

Project Portfolio Management (PPM) is the set of techniques, tools, and guidelines that help organize a company's resources to carry out multiple projects simultaneously.

Software PPM makes it easy to centrally organize all available resources for each project, intuitively and visually.

With the right management and tools, better decisions are made to optimize time, resources and costs. Priority is always given to the execution of projects according to the objectives set for each of them . As well as the overall objectives of the company which coordinates all these projects under the same management.

We will now take a closer look at these two concepts. A good understanding of how they work will allow us to determine the most appropriate PPM tool, depending on the challenges of each organization and the type of projects it manages.

What is a PPM tool?

Managing a portfolio of projects requires achieving the objectives of each project simultaneously.

This implies a common and shared use of resources that must be coordinated as best as possible to meet the individual needs of each task.

This fact leads to a series of difficulties that, without the right tools, will be more difficult to face.

Example of project portfolio management

A digital marketing consulting company has a portfolio of projects with different clients. Each of them has its own objectives, from which comes the work to be done to achieve them.

However, the resources available to this consulting firm can be usedindiscriminately for several of its clients.

For example, a joint design team can produce graphic elements for banners commissioned by multiple clients, with different goals and objectives.

Now let's imagine that several projects aim to improve the Google ranking of different websites.

If the consulting firm invests in a tool to carry out SEO audits, it will have to spread the cost of the tool proportionally to each of the projects. This distribution is made according to the positioning in the client's total work. 

This allocation of resources and costs is therefore unlikely to be proportional. However, its correct allocation in terms of expenses will be essential to measure the real profitability of each project.

Good project portfolio management helps to optimize both the individual results of each project and the overall business of the company, which is why it is important.

Is the PPM tool a must-have?

The PPM tool facilitates precisely this process of optimizing PPM because it allowsfor efficient project and operations management.

By setting up a budget that ensures the achievement of objectives, the availability of resources to achieve them, and operations to ensure their availability when needed. 

It also allows you to define specific tasks and assign managers in an agile, intuitive and coordinated way.

It automates notifications and speeds up communication between parties to notify any deviations in the planned execution of these tasks. This is very important for the correct management of deadlines and for detecting shortcomings that can prevent the execution of tasks according to the established parameters.

The Benefits of a PPM Tool in Portfolio Management

Controlling and monitoring simultaneous projects is made easier

To ensure that everything goes smoothly as planned, it is necessary to monitor the performance of projects. This can be done more easily with a PPM tool, through reports, dashboards, and alerts.

The first thing to do is to establish your KPIs, easily configurable, on which the follow-up will be carried out. These KPIs can be strictly financial.

It is possible to have a contract management system that monitors down to the smallest detail the profit margins of each project, the state of progress, the profit and loss reports, etc. 

Track the profitability of your different projects in one place.

But these indicators can also focus on personnel management and human resources, or any other value that is relevant to the company's values and philosophy. 

The GPP software is a cross-functional tool that allows you to monitor the needs and objectives of the different sectors of the company.

The human resources department can ensure a balanced workload, or ensure the professional development of employees through current and future projects. And, at the same time, the accounting and finance department will be able to check that the expenses allocated to a certain activity correspond to what had been planned and that the margin is respected.

Thus, a PPM tool brings efficiency to the entire company, as well as to the clients themselves, who will obtain the expected results in their projects.

Holistic project portfolio management

The strength of a PPM tool is that it allows joint management of the quality of the project portfolio, based on the optimization of the common and limited resources of each of them.

In the day-to-day running of companies, unforeseen events occur – such as the unscheduled absence of a professional due to illness, for example – that require correct change management.

In these circumstances, a PPM methodology that allows for joint, optimized and simultaneous portfolio management allows resources to be reallocated with ease, without being subject to the actions of other clients.

With a PPM tool, you have a single overview. This overview that allows you to know where your business stands, and what is the best decision to make to achieve individual and global goals .

Capacity can be planned and resources allocated efficiently. Define the exact needs based on the types of projects we will undertake. At the same time, this makes it possible to establish a budget in line with the client's (competitive) reality, without reducing the profitability of the company.

Stafiz's resource needs show you the projects looking for profiles to staff by role or skill. The most suitable profiles are automatically recommended to you and can be staffed from this screen.

Learn more about resource allocation.

Integration of a PPM tool with other systems

For companies that need to streamline internal processes, remove administrative hurdles, and improve communication and stakeholder management, it's worthwhile – if not imperative – when possible to integrate your PPM tool with your other business management software.

Let's imagine that the finance department can connect its expense management application to invoices that are assigned, via the PPM platform, to a specific project. 

These expenses are automatically included in the accounts without any member of the finance department having to intervene. This saves a lot of time in procedures and on administrative tasks. This time can be devoted to other strategic actions with high added value.

In addition, possible errors when manually transferring information from one location to another are reduced to a minimum.

Benefits that could be extended to other areas of the business. Now consider a project that required the execution of a series of overtime hours. Automatically and without human intervention, the following circumstances will occur:

1. An additional cost is charged to the project in question, which was not initially planned, and which the project manager will have detected and controlled.
2. The finance department will reduce the initial cash flow forecast, due to the unexpected increase in personnel costs resulting from these overtime.
3. HR will see the salary information of these workers updated automatically, thanks to the API connection between the PPM tool and its salary creation and management platform.

Stafiz integrates with your existing tools

Explore available integrations

How to choose a PPM tool?

The first thing you need to do when choosing the best PPM tool is to determine your needs. From there, you will be able to detect the features and functionalities that your project manager should have as a priority. 

Once you've selected the programs that fit your business needs, pay attention to three other metrics: price, ease of use, and customer service. 

Every company has its own unique situation, processes and organisational culture. Depending on these parameters and the type of project you are working on, you will face challenges and needs that will determine the features and characteristics of PPM.

I need to improve the strategic vision and design of the project portfolio

Some organizations make mistakes by prioritizing projects whose tasks cannot be carried out under the agreed conditions. In other cases, errors are made in the accounting of costs and benefits at the proposal stage, identifying projects that are not identified as opportunities. 

These organizations need consolidated KPIs and projects that are truly aligned with their capabilities, resources, and goals.

I need to optimize costs

Whether for reasons of competitiveness or for specific cash flow needs, some organizations require excellent cost optimization.

They need comprehensive cost tracking, cost assessment during the project, additional cost reduction strategies, etc.

I need efficient resource management

This is a problem that particularly affects large consulting firms that work on a multitude of projects simultaneously with high demands.

I need to analyze projects to identify areas for improvement

For organizations that need flexibility and agility to make the right strategic decisions. Through risk management, you can detect mistakes and learn from them for future projects.

I need to improve collaboration and governance

Organizations that have been identified in performance reviews as having overly long meetings or highly structured hierarchies where it is difficult to make decisions.

I need to improve delivery times

Businesses may need to improve on-time delivery and tracking of ongoing projects.

I need to integrate the PPM tool with other software

For businesses that need to streamline internal processes , remove administrative hurdles, and improve communication and stakeholder management.

Other criteria to take into account

In addition to the specific and technical needs described above, there are other parameters common to all organizations that need to use a PPM platform to optimize their project portfolio planning.

• Customer service

When it comes to customer service, it is desirable that the software or platform in question offers a wide range of solutions to resolve doubts and manage problems related to the tool.

From DIY academies and video resources with which you can do some configurations yourself, to forums where you can ask questions that the experienced community can solve.

In addition, of course, to confirm that it has online and phone customer service that responds quickly to any questions.

• Ease of use

In terms of user experience, it's important that such a central and essential tool is easy to use.

The shorter the implementation and adoption times, the faster the multiple benefits offered by this type of PPM platform will be felt.

• The price

Finally, special attention must be paid to the price. Not only in terms of quantity.

Is the company paying for what it actually needs, investing too much in a PPM platform that doesn't really fit their needs, and investing too much in a PPM platform that doesn't really fit their needs?

These calculations must also take into account the total cost of ownership . In other words, you invest in a tool that, at the same time, allows you to avoid other types of costs.

If, for example, the new tool will save time for the HR department, it makes sense to count these savings in working hours which can be devoted to other actions which, at the same time, can provide measurable added value. from an economic point of view. 

In addition to the costs of training to use a PPM tool, the easy adoption of a new tool will limit the time invested by employees, which also generates quantifiable savings at the economic level.

Final thoughts

In summary, to choose the best PPM tool, you must first identify the needs of the business.

Then, it is necessary to identify the tools that integrate the functionalities to meet these needs.

Finally, you need to analyze the shortlisted tool in terms of usability, learning curve, customer service, and costs.

Better management of the project portfolio includes better selection of work at the proposal stage, better planning of costs and benefits, easy identification of available resources, and greater ease of monitoring and identifying possible improvements. 

Added to this is the automation of processes and management in all areas of the company. 

The company improves its overall competitiveness, which is only possible by using a portfolio management tool based on the particularities of each organization.