Benefits of Using Project Portfolio Management Software
If you own or manage a business that conducts several projects simultaneously, you know how challenging it is to keep track of all of them and ensure they are completed on time. There are many metrics to track, employees to monitor, and obstacles to overcome.
You need a platform that provides a unified view of all the important metrics gathered from all the projects in your company's portfolio. Project portfolio management software does just that. It allows you to spot inefficiencies early so you can course-correct and deliver projects on or before their due date.
Difference Between Project Management and Project Portfolio Management
Some people tend to mix project management with project portfolio management and think they mean the same thing. They do not. Project management involves planning and overseeing the execution and completion of a singular project within a company or organization. Meanwhile, project portfolio management (PPM) is the identification, coordination, prioritization, and supervision of all the projects in a company that helps it accomplish its overall business goals.
Project portfolio managers work in teams and collect reports from project managers to assess the progress and setbacks of each project. However, receiving these reports via email or on paper is inefficient because it can be challenging for project portfolio managers to spot unfavorable metrics. This is why project portfolio management software like PMO365 is essential. They display crucial project metrics on a customizable dashboard, allowing managers to review them seamlessly.
The Importance of PPM Software
Companies that use PPM software to monitor their projects gain an advantage over their competitors. This is because of its numerous features that increase productivity and help businesses with their long-term strategy. Here are some benefits that demonstrate that:
1. Project portfolio cost management
All projects cost money and financial management is crucial to project success. PPM software allows PPM managers and business owners to import cost estimates and real expense figures prepared by project managers on external finance tools to one centralized platform. This feature will allow them to prepare budgets, perform cost-benefit analyses, cut costs where necessary, track expenses, and perform their cost projections.
2. Track project milestones
You can use PPM software to set and track milestones for all the projects in your company's portfolio. This approach will help you gauge progress and spot delays so you can resolve them quickly.
3. Resource allocation and management
Many companies struggle to effectively allocate resources to the projects in their portfolio. This is because of their inability to monitor resource usage and reallocate them to the projects in need. The visibility PPM software gives managers and business owners allows them to track resource usage across their company’s project portfolio so they can make necessary adjustments.
4. Storage and planning of future project ideas
It is important for business leaders to continuously come up with new project ideas to improve their operations and rise above their competitors. However, not all projects can be implemented at the same time. PPM software helps project portfolio managers and business owners convert their business ideas into project plans they will execute at a later date.
Endnote
Project portfolio management will help you execute all your projects cost-effectively and on schedule. PPM software like PMO 365 is crucial to this effort because it offers visibility into every project in your company’s portfolio. You and other project portfolio managers can use these insights to allocate resources, investigate delays, and review project metrics to ensure they are completed when due.
