Discover the benefits of using project management software.
The main reason for using project management software is to significantly reduce waste. Data from a study conducted by the Project Management Institute (PMI) shows that for every US$1 billion invested in projects in the US in 2017, US$97 million was wasted due to poor project performance. This was a significant improvement over the previous year, which generated losses of US$122 million for every US$1 billion spent on projects, but it still means that almost 10% of resources are wasted.
This waste is costing companies around the world billions of dollars and affects all sectors. PMI’s “Pulse of the Profession: 2017”Business leaders were asked what they considered a priority for investing in technology to enable better project success. Seventy-six percent of Project Management Office directors and 75% of senior executives stated that it was a “moderate,” “high,” or “very high” priority.
Technology is key to enabling project managers to perform their roles more effectively, and project management software is one of the most important pieces of that technology. Project management tools have triggered a shift in business philosophy, particularly in the technology world, and have in turn been reshaped by the results of the paradigm shift they have catalyzed. More than ever, companies are beginning to realize the value they can extract by using project management software.
Project management tools enable business agility.
The last few years have seen a shift in business philosophy, which has affected the design of project management tools. Companies have moved from a waterfall approach and adopted an agile mindset, which means shorter project cycles and constant development.
The previously popular waterfall approach was so named because progress flows "downward".
The software industry initially adopted the waterfall approach of the manufacturing industry. This rigid approach arose out of necessity, as physical changes to products are far more difficult to implement than changes to software products. Software developers realized that this development method was inefficient and inadequate for the IT world, where product changes are easier to implement. Their shift in strategy proved to be infectious in the best possible way, reshaping strategy across the business world.
According to Merriam-Webster, someone or something that is agile is “marked by the ready ability to move gracefully, easily, and quickly.” In a changing market, particularly within the hypersensitive world of IT, slow engines are caught and devoured. Companies inside and outside the space must adapt or perish. The shift to agile business practices puts organizations in a position to adapt so they can survive and thrive. Agile business constitutes a philosophical shift, but companies have seen the impact on their finances.
According to the PMI, 71% of organizations report having used agile approaches “sometimes,” “frequently,” or “always.” Expect this number to increase as markets become increasingly competitive and companies need to adapt faster than ever before. How can a company shift to agile business practices? Consider the growing relevance and need for project management software. A major catalyst for many companies seeking to revise their outdated business philosophies has been the selection and implementation of project management software.
Investing in the right software can increase agility and transform your business from a slowly adapting dinosaur to a sleek market disruptor.
BENEFITS OF PROJECT MANAGEMENT SOFTWARE
Project management software is a channel for improving organization and, ultimately, a driver of results, due to the large number of benefits it offers the user.
Sponsorship of executive projects has proven to be the number one driver of project success, according to the PMI. Sponsorship of C-suite executives and their team is important, but how do we actively engage them? The transparency provided by project management tools gives executives an easy access point to conduct a quick, comprehensive overview of a project. Built-in analytical tools allow for in-depth analysis based on concrete data, which leaders can use to define project strategy.
The implementation and use of project management software leads to an increased level of accountability among team members and management. Gone are the days of ambiguous assignments, constantly changing deadlines, and passive-aggressive behavior from team members lamenting differences in workload levels between themselves and their colleagues.
Armed with the information found in a project management software dashboard, team members can investigate every corner of a project. Productivity analytics and time tracking tools ensure that people stay on task and on track to work – without a manager looking over their shoulder to ensure that every detail is worked out exactly the way they would like. Forecasting and cost estimation are fundamental skills for every project manager. Armed with historical data from previous projects and the diversity of reports that project management software is capable of generating, project managers can forecast and budget more efficiently.
The idea of collaboration is at the heart of project management software. Collaboration is necessary in almost every project due to the interdependence between various teams and team members. The development of the service economy has made experts in all of us, meaning we often rely on others to complete a project. Document sharing, scheduling, and communication tools are vital collaboration features that project management software offers users.
Project managers are responsible for assigning tasks and managing projects from the idea stage to completion. This involves digesting large amounts of constantly changing, real-time project data and creating actionable insights from that data. Information visualization tools configure the data into user-readable and understandable content. Project managers can then create these visualizations and stay on top of the big picture throughout the project without getting lost in the daily minutiae.
The advent of the agile development model for many companies means shorter project cycles and the use of tools such as scrums, which are daily meetings of collaborative teams, and sprints: short work cycles that define achievable goals within shorter timeframes. Other tools include Kanban, a visualization and change management tool where project tasks are placed on a public board. Companies also use extreme scheduling, where development changes are implemented continuously, usually in conjunction with sprints, rather than once every six months or annually. Project management software provides companies with the ability to manage these new tools and changes in order to increase their agility. Increased agility leads to tangible results in the form of reduced resource waste and cost reduction.
Project management software is vital for any company seeking to improve resource allocation, reduce waste, and keep pace with an increasingly agile market. As project cycles become shorter and companies embrace the agility that comes from constant development, project management software is at the forefront, leading the change.
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