In Part 3d of the PPM Master Class we continue to look at how you can organise your business ready for Project Portfolio Management and discuss some of the key factors worth considering when tooling up for PPM.  We investigate what PPM Software is, what it’s unique selling points are and what functionality it offers.  Finally, we look at the different delivery options and advantages offered by Software as a Service (SaaS) PPM software.

The Project Portfolio Management Tool Set Key Considerations

A key consideration when organising your business for PPM is which tool set to adopt.  We have already seen that internal systems and standalone applications such as MS Excel and client based project planning applications fail to deliver real time information which is key to providing quick and accurate data for informed decision making.  Throughout this session we will focus on Project Portfolio Management software, in particular we will focus on:

• Identifying what a Project Portfolio Management software tool is
• What are the Unique selling points (USP’s) of PPM systems over home-grown or standalone systems
• The Benefits of Software as a Service (SaaS)/Application Service Providers (ASP)
• What features and capabilities you should expect in a Project Portfolio Management Solution

 

What is a PPM Software Tool?

There are many software tools on the marketplace that can assist the business in implementing project portfolio management.  Unlike Project Management Tools which typically manage the project delivery process, a PPM tool supports the business decisions behind project delivery and hard-wires the project governance process.

The tool set is critical to automating the processes, making them more effective and efficient by reducing human error and tedious administration.

The PPM Tool is above all a business tool, not just another project delivery tool.

In essence a PPM tool looks to empower the business with information on how the projects are impacting the strategy.  However, they still support the project delivery process by distilling strategic decisions down to the project level.  Project Portfolio Management software is also extremely efficient and effective at reducing human error which improves data quality and in turn aids project governance and decision making.

PPM Best Practice Considerations

There are a number of best practice considerations that should be adhered to when selecting a PPM tool-set, from both a process and application tool-set view point. These include:

• The tool is there to support the ‘people and process’
• Selection is a  rigorous process – make available  the time, resource and money
• Do not delegate selection to purely technical people
• Embed the tool-set selection into a Proof of Benefit (PoB)
• Be open minded about changes to the way you manage projects
• Agree early wins

From an application perspective, key considerations include:

• Avoid ‘rip and replace’
• Web based solutions / Web publishing
• Data conversion and ODBC compliance
• Reporting capability
• Interface ease of use
• Configurability vs Customisation
• Hierarchical capability
• Security features

 

Software as a Service

With today’s advances in web technologies, Software as a Service (SaaS) based Project Portfolio Management software makes PPM far more accessible to more organisations by lowering the total costs of ownership, reducing IT infrastructure barriers and by increasing the speed of deployment. The key advantages of choosing a SaaS model are:

• Provides a low cost of entry to build a business case and gain executive level buy-in.
• It allows the business to build a PPM process and embed competency without being bogged down in protracted software installation cycles
• It allows the business to work around IT resource and budget constraints
• The application can be tested in a proof-of-concept or pilot
• Eliminates the need  for specialised IT infrastructure & hardware
• Reduces the need for extras in -house IT resources
• Easy on demand scaling up and down of users
• Flexible licensing and billing

For small businesses and start-ups, the biggest advantage is the low cost of entry and in most cases, an extremely short setup time.

 

Working with the Vendor

In order to successfully implement a PPM tool you will need to work with your vendor at every stage of the implementation.  Key considerations include:

• Technical groundwork: Make an assessment of your existing technical environment
• Collaborative deployment planning: It is essential that you work with the vendor in developing a road map
• Role based user model: The vendor team should work with you to define each role in your organisation
• Pilot installation and configuration: The vendor should install the PPM tool-set within a pilot environment
• Roll-out: This should be phased and seamless and should not negatively impact business-as-usual activities
• Tool administration: The vendor should work closely with your technical team to develop a road map
• Follow-up & Account management: The vendor should follow up with your end users to obtain feedback on performance

 

PPM Functionality Part 1

Whatever the make up or type of business you work for, a Project Portfolio Management solution will need to comprise of the following features, functionality and capabilities as a minimum:

Role Based Dashboards

• Drill down & drill up capabilities across all business levels
• Executive, Portfolio and Programme dashboards
• Project, Resource, Personal / Team dashboards
• Out-of-the-box & configurable dashboards

Portfolio Management

• Governance, Strategy alignment & Milestone tracking
• Portfolio inventory/registry & ideas management
• Portfolio selection, prioritisation & evaluation
• Real-time RAG status & reporting
• ‘What if’ scenario modelling

Resource Management

• Capability planning
• Supply & demand management
• Resource scheduling & team management

 

PPM Functionality Part 2

For larger organisations Programme Management functionality is also vital. The programme management capability needs to be designed to support the PMO and provide it with intelligence regarding all projects. Core functionality should at a minimum be focused on:

• Drill-up/down & consolidate multi project interdependencies
• Inventory information, including project scope, priorities, requirements
• Project scheduling, planning & life cycle management
• Deliverables, milestones, activities, work packages & tasks
• Upstream and downstream  reporting of consolidated project activity
• Real-time indicator & RAG status on all projects
• Tracking budgets, revenue & project costs
• Timesheet management
• Budget & financial management
• Ideas & scope management
• Procurement & contractor management
• Risk management
• Workflow management & process control
• Document management

 

Coming up in Part 4

In Part 4 of the PPM Master Class we examine the PPM framework, including its component parts, how we can define portfolios, how to align strategy and achieve strategic objectives and how to manage the portfolio selection, prioritisation and authorisation process.

 

 

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