The PPM tool for project portfolio management

The project portfolio management (GPP), or Project Portfolio Management (PPM), is the set of techniques, tools and guidelines for organizing a company's resources to successfully complete several projects simultaneously.

PPM software makes it easy to organize all the resources available for each project in a centralized, intuitive and visual way.

With the right management and tools, better decisions are made to optimize time, resources and costs. Priority is always given to executing projects in line with the objectives objectives set for each project. As well as the overall objectives of company which coordinates all these projects under a single management.

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

What is a PPM tool?

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

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

This leads to a series of difficulties which, without the right tools, will be harder to tackle.

Example of project portfolio management

A digital marketing consulting company has a portfolio of projects portfolio of projects with different customers. Each of them has its own objectives, from which flows the work required to achieve them.

However, the resources available to this consulting firm can be used indiscriminatelyfor several of its customers.

For example, a common design team can produce graphic elements for banners commissioned by several customers, with different goals and objectives.

Now let's imagine that several projects are underway to improve the Google rankings of different websites.

If the consulting firm invests in a tool for carrying out SEO audits, it will have to allocate the cost of the tool proportionally to each project. This allocation is made on the basis of the client's total workload. 

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

Good project portfolio management optimizes both the individual results of each project and the company's overall activity, which is why it is so important.

Is the PPM tool indispensable?

The PPM tool facilitates precisely this PPM optimization process , as itenables efficient project and operations management.

By configuring a budget that ensures the achievement of objectives, the availability of resources to reach them, and operations to ensure their availability as soon as necessary. 

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

It automates notifications and speeds up communication between parties to notify any deviation in the planned execution of these tasks. This is very important for the correct management of deadlines, and for detecting gaps that may prevent tasks from being carried out within the established parameters.

The advantages of a PPM portfolio management tool

Simultaneous projects can be controlled and monitored more easily

To ensure that everything is going according to plan, project performanceneeds to be monitored. This can be done more easily with a PPM tool, thanks to reports, dashboards and alerts.

The first thing to do is to establish your KPIsthat can be easily configured, and which will be used for monitoring. These KPIs can be strictly financial.

It's possible to have contract management that monitors every detail of each project's profit margins, progress status, P&L reports, etc. 

Track the profitability of your various projects in one place.

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

GPP software is a cross-functional tool for tracking the needs and objectives of the company's various sectors.

The human resources department can ensure thatthe workload is balanced, or provide professional development for employees through current and future projects. And, at the same time, the accounting and finance department can check that the expenditure allocated to a certain activity corresponds to what was planned, and that the margin is respected.

In this way, a PPM tool brings efficiency to the whole company, as well as to the customers themselves, who will get the results they expect from their projects.

Holistic project portfolio management

The strong point of a PPM tool is that it enables joint management of project portfolio quality, based on optimization of the shared and limited resources of each project.

In the day-to-day running of a business, unforeseen events can occur - such as the unscheduled absence of a professional due to illness, for example - which require proper change management.

In these circumstances, a PPM methodology that enables joint, optimized and simultaneous management of portfolios allows resources to be reallocated with ease, without being affected by the actions of other customers.

With a PPM tool, you have a unique overview. This overview lets you know where your business stands, and what the best decisions are to achieve individual and global objectives .

The capacities can be planned and resources allocated efficiently. Define the exact requirements for the types of projects we're going to undertake. At the same time, this allows us to establish a budget in line with the customer's (competitive) reality, without reducing the company's profitability.

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

Find out more about resource allocation

Integrating a PPM tool with other systems

For companies needing to streamline internal processes, eliminate administrative hurdles and improve communication and stakeholder management, it's worthwhile - if not imperative - whenever possible to integrate your PPM tool with your other business management software.

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

These expenses are automatically entered in the accounts, without the need for any intervention by a member of the finance department. Thissaves a lot of time on procedures and administrative tasks. Time that can be devoted to other strategic, high value-added actions.

What's more, errors that can occur when manually transferring information from one place to another are reduced to a minimum.

Benefits that could be extended to other areas of the business. Let's now consider a project that has 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 this overtime.
3. HR will see these workers' salary information updated automatically, thanks to the API connection between the PPM tool and its salary creation and management platform.

Stafiz integrates with your existing tools

Discover available integrations

How to choose a PPM tool

The first step in choosing the best PPM tool is to determine your needs. From there, you'll be able to detect which features and functionalities your project manager should have as a priority.

Once you've selected the programs that match your company's needs, pay attention to three other parameters: price, ease of use and customer service. 

Each company has its own situation, its own processes and its own organizational culture. Depending on these parameters and the type of project you're working on, you'll face challenges and needs that will determine the functionalities and features of the PPM.

I need to improve strategic vision and project portfolio design

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 as opportunities projects that are not.

These organizations need consolidatedkey performance indicators and projects that are truly adapted to their capabilities, resources and objectives.

I need to optimize costs

Whether for competitive reasons or for specific cash flow requirements, some organizations need excellent cost optimization. cost optimization.

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

I need efficient resource management

It's a problem that particularly affects large consultancies, which 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. Thanks to 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 excessively long meetings or highly structured hierarchies where it is difficult to make decisions.

I need to improve delivery times

Companies may need to improve their ability to meet delivery deadlines and monitor ongoing projects.

I need to integrate the PPM tool with other software packages

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

Other criteria to consider

In addition to the specific and technical requirements 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 serviceWhen it comes to customer service, it's a good idea for the software or platform in question to offer a wide range of solutions for resolving doubts and managing tool-related problems.

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

In addition, of course, to confirming that it has online and telephone customer service that responds promptly to all queries.

• Usability

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

The longer it takes implementation and adoption are, the faster the multiple benefits offered by this type of PPM platform will be felt.

• The price

Finally, particular attention must be paid to the price. Not just in terms of quantity.

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

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

If, for example, the new tool is going to save the HR department time, it makes sense to account for these savings in man-hours that can be devoted to other actions which, at the same time, can bring measurable added value from an economic point of view. 

In addition to training costs for using a PPM tooltool, easy adoption of a new tool will limit the time invested by employees, which also generates quantifiable cost savings.

Final thoughts

To sum up, choosing the best PPM tool starts with identifying your company's needs.

Next, you need to identify the tools that can integrate functionalities to meet these needs.

Finally, you need to analyze the pre-selected tool in terms of user-friendliness, learning curve , customer service and costs.

Improved project portfolio management includes better selection of work at the proposal stage, better planning of costs and benefits, easier identification of available resources, and easier monitoring and identification of possible improvements. 

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

This can only be achieved by using a portfolio management tool tailored to the specific needs of each organization.