Portfolio management is the management of processes and technologies that the managers in a company use to achieve the overall objectives of a business. Proper project management ensures that the capital of the company is invested in the right channels. Proper investment, in turn, ensures proper resource utilization and maximum gains for any corporation.
Today, there are several project portfolio management software that is available in the market, which brings efficiency to management. The project management tools are quick and efficient and can automate several processes that channel an organization’s resources in a profitable manner.
How Software For Project Portfolio Management Can Be A Boon For Any Company
Efficient Management Of The Pipeline
In a company or organization, the pipeline means all the projects that are in some stage of operation. This means that all the projects that are to be taken up by a company, whether in the short term or in the long term, are in the pipeline. Now any company cannot invest upfront in all the projects in the pipeline. Some projects are to be given priority over others.
The projects which are to be given immediate priority versus those which are to be given attention later on, depend on several factors. Some of the factors that the management of a company considers when taking up a project on priority basis are its economic feasibility, the kind of investments required, the return on investment etc.
So if you have software for project management that has all the data about your company’s expansion goals and financial capacity, then the software can do effective pipeline management for you.
Good project management software can make accurate projections of returns on your investment. And the software can help maintain the economic viability of your company and ensure adequate gains and expansion of your business at the same time.
Optimizing The Use Of Resources
Every business organization needs resources like land, labor, capital etc., to function optimally. However, it is not easy to effectively manage all these resources, especially if you are running a big organization.
For instance, you need manpower to produce goods or to give services to your consumers. So you have to have an efficient human resource management system to ensure that your employees are trained properly and that they are performing optimally.
Likewise, you need financial resources to run your company. You may have to raise money from the market by issuing shares, or you may have to take a loan from a bank.
Thus, if you have project management software that can integrate your HR management and your company’s accounting, then it will ensure the smooth operation of your company’s business. Hence, having a project management software that can integrate several other types of software can help make prudent decisions that benefit the company.
So if your company is already using Dropbox, Jira etc., then look for a project management software that can integrate all these programs so that you can easily transition to the new system.
Keeps The Risks Under Control
Every new venture that your company wishes to undertake has some amount of risk associated with it. So before you start investing your human resource and your financial capital in a new venture, you must have a risk mitigation strategy.
Good project management software helps mitigate risks associated with new ventures. Usually, software designs a code to integrate the overall investment-to-return ratio of every step of a new venture. The software also develops a risk mitigation plan and helps an organization understand the type of uncertainties that lay ahead.
Since a code can automate the feeding of inputs and make projections much faster than a human would do, it brings much-needed speed to a company. So the specific advantage of using technology in mitigating risks is that you get quicker results that are accurate and effective as well.
Quick Incorporation Of Changes In New Ventures
The conditions under which you begin a new venture may change drastically by the time you wind up the venture.
The changes may be necessitated by changes in regulations, changes in financial conditions, changes required to incorporate technological advances etc. Now the changes can be incorporated only after matching the resource availability and after overcoming the operational constraints.
A good technological tool like project management software can do a “what if scenario planning”. This means that the code gives you an idea of the possible consequence of implementing changes in a venture. So you know, incorporating which changes are feasible and which ones are not.
Prudent Decision-Making With Respect To Closing A Venture
A business enterprise not only has to make decisions about starting new ventures, but they also have to make decisions about closing some ventures. The decision to close a venture should depend upon KPIs or key performance indicators.
So if a venture is showing losses year after year or if it is taking a huge toll on the resources, then it may be a good decision to shut down such ventures. So if you have a technological tool like project management software, you can get accurate information on key performance indicators and make decisions based on those KPIs.
A technological tool like software can perform certain tasks in a faster and more efficient manner than a human employee. Moreover, using the software may be way more cost effective than hiring a team just to manage and streamline the various projects that your company wishes to undertake.
Technological tools give data-driven, accurate results that help the business in achieving both its short term and long term goals.
So the next time you have any regret about the inefficient allocation of resources in your company or the inefficient handling of human resources-related issues, you must consider using a tool to handle all these issues in a competent manner. There are many software available in the market that are light, easy to use and do not burn a hole in your pocket.