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Quick Take: 750 million users of Excel worldwide Excel has some pluses: ease of use, availability, flexibility, and cost Spreadsheets have their place, but managing a portfolio of projects effectively is not one of them Project Portfolio Management (PPM) requires a governance model and controls with an integrated workflow Projectric Project Portfolio Management software avoids all the negatives of not only spreadsheets, but also of overly-complex, feature-heavy PPM solutions Excel Conquered the World Microsoft estimates there are 750 million users of Excel worldwide. And it is no wonder—spreadsheets are a handy tool. But is Excel where you should be managing projects and project portfolios? We think the answer is a hard no! There are so many reasons, it’s hard to know where to start to delineate them. But first, let’s examine Excel as a project management platform. Benefits of Spreadsheets for Project Portfolio Management Spreadsheets are the project tracking and project portfolio management tool of choice for many organizations because of: Ease of Use—Most business people already know how to create spreadsheets or could learn very quickly. Availability—Spreadsheet applications are on almost every laptop and PC, just a click away. As a result, they have become a standard form of communication for business. Flexibility—Spreadsheets allow non-technical people to do things they never thought possible without learning a programming language. Cost—Because spreadsheets are typically already installed on most laptops and PCs, and creating a spreadsheet can be very fast and easy, they have very low start-up costs, if any. Spreadsheets offer a very quick, adaptable and inexpensive way to create a project inventory list from scratch. From there, it’s an easy step to grow the use of spreadsheets to try to manage projects. You can create spreadsheets of your project backlog, spreadsheets of active projects, and spreadsheets of finished projects. It doesn’t stop there. You can also create additional spreadsheets for resource lists with availability projections and spreadsheets of project plans. Some project managers even create project scope statements and other documents in spreadsheets. It’s easy to see why many project managers run their projects with Excel. How To Manage Project Portfolios With Spreadsheets In many organizations, projects are organized into Project Portfolios. A benefit of this technique is generally an improvement in the organization’s ability to monitor and guide projects. Portfolios are often managed with applications that are known as Project Portfolio Management (PPM) software. Implementing PPM on spreadsheets generally means you’ll be creating multiple spreadsheets, perhaps dozens or hundreds if your organization is large. Once lots of project spreadsheets have been created, the issue becomes how to update the information they contain. The information needs for decision-making frequently change as the project progresses through the lifecycle. For example, while the project is still in the pipeline—pre-launch—it is important for project managers to prioritize when projects are ready to launch. PMs must understand project alignment characteristics, value, the requested due date, and the estimated start date. And change all of these values manually. This can result in cascading changes in current and backlog project spreadsheets. Once the project is initiated, the PM’s overarching concern is each project’s health, progress, and likely finish date. These pieces of information require manual changes to the relevant spreadsheets. Certain functions in the project decision process do not lend themselves to a project list format. Thus, more spreadsheets are required. For example, if a scoring model is used for value assessment, this  typically requires a different spreadsheet with different requirements. Spreadsheet growth can also be driven by resource availability tables which typically need to be viewed both by resource and by project. True Project Portfolio Management requires a governance model featuring controls and an integrated workflow. Having a defined process with decision points and requirements for movement from one stage to the next allows an organization to remain in control, be consistent, and make improvements. Spreadsheets were never designed to be able to implement a workflow, although a spreadsheet guru might be able to do so. However, this is rarely done for a PPM implementation due to the large amount of manual effort required. Even if your spreadsheet guru is up to the task, is this really worth the effort and time to maintain? All changes are manually entered or altered. That’s a big problem in spreadsheet project management. Hidden Costs of Project Portfolio Management by Spreadsheets Many costs associated with spreadsheets are not initially apparent. The large number of spreadsheets, the difficulty to collaborate and share information from these spreadsheets, and the fact that spreadsheets were not designed for certain PPM functions all drive up personnel and other costs. The resulting hidden costs include: 1. Wasted Time Spreadsheet users waste hours of time consolidating information from multiple spreadsheets and transferring selected information from one spreadsheet to another. Individual users also waste time trying to perfect their own view by resizing columns and rows, justifying text, and many other beautification activities that really don’t add value. With multiple spreadsheets and duplicative data, personnel waste time looking for and correcting inaccuracies in the data. Or worse, these inaccuracies never get corrected and create a risk to the organization. Often time is wasted when the spreadsheet builder has to explain the intricacies of their work so others can use it. This is further hindered by the differing skill levels of spreadsheet users. And, given the creators are constantly modifying their work, there is a constant need to explain the changes. 2. Inefficiencies Inefficiencies from spreadsheets occur in multiple areas. The preferred method of communicating spreadsheet information is usually to email them to others. In some cases, this is completed instantaneously; however, in other instances, there is a delay between when the spreadsheet was emailed and when it was opened. This leads to delays in work and decisions, and as a result, the information needed might not be available to a person when they need it. Emailing spreadsheets also leads to the potential for multiple versions of the same spreadsheet being updated independently and creating more inefficiencies

Quick Take: Project Managers (PMs) must deliver projects on-time while providing transparency and governance. However, today, PMs often are working with a set of tools ill-suited for the changing landscape. IT budgets have only risen slightly, but much of the IT portfolio has shifted from maintaining the infrastructure status quo to supporting expensive, broad, complex initiatives such as digital transformation PMs not only need to ensure that the proper projects are being approved, they are tasked with improving project management as well as providing reporting transparency and governance To survive and thrive, PMs should use an end-to-end Project Portfolio Management (PPM) software solution even if their focus is only at the project level Project Portfolio Management software helps PMs see all projects and emerging issues across a portfolio and provides the tools not only for planning now, but to forecast future needs Project Portfolio Management (PPM) software tools can help advance careers and minimize stress for Project Managers (PM). Using PPM, a Project Manager can move from a facilitation role with limited organizational value to a management role with demonstrable impact towards achieving strategic goals. Project Management Challenges Project Managers must deliver IT projects on-time while providing transparency and governance to the organization. They must be able to answer requests from diverse lines of business such as: Which projects are approved and why? How will this program be staffed? Was this a successful project? Will we have the resources available for the project starting new quarter? Today, Project Managers face these challenges with a set of tools ill-suited for the changing landscape. Manual processes are not scalable; Excel is not dynamic and can’t forecast; and standalone solutions are not integrated. It’s always been this way. Project Managers are increasingly tasked to do more with less, and this is expectation is even greater today, given the ever rising velocity of business. Although IT budgets have only risen slightly, but the composition of the IT portfolio has shifted from fairly predictable programs designed to maintain the infrastructure status quo to programs supporting more-risky initiatives such as digital transformation. (See our post Is Your PPM Process Ready For The Digital Transformation? for more information.) Project Managers need help to ensure the proper projects are being approved and that they are continuously improving project management practices, all the while providing the reporting transparency and governance needed to advance the organization. The Solution: Project Portfolio Management (PPM) So what is PPM software? Project Portfolio Management software is typically a suite of tools designed to manage collections (portfolios) of projects, programs, or products, including current and future projects. A portfolio continuously optimizes the allocation, prioritization and scheduling of resources. PPM systems track the dependencies between projects and the enterprise to provide project managers and executives a global view. Even if their focus is only at the project level, Project Managers can leverage the benefits of an end-to-end Project Portfolio Management solution. By utilizing a PPM solution to see all projects across a portfolio as well as emerging issues, the PM can take early corrective action that benefits the overall portfolio and thus the organization. Additionally, a top-down view of resource utilization across projects allows the PM to proactively make adjustments and even solve multiple resource issues at once. Finally, PPM software can provide transparency on project performance. The intelligence capability PPM provides can be automated and distributed to the line of business via self-service reporting tools, allowing the PM more time to focus on managing the projects vs. delivering status reports. A full-featured intuitive PPM tool can make a PM more effective using the following enhanced capabilities: Project Approval PPM software gives Project Managers the powerful tools PMs need to ensure that the project proposals presented for funding are selected using methodologies that are rigorous, transparent, and align with corporate strategies and portfolio goals Timesheet Management Use your PPM to maintain cost and expense data within a centralized solution that enables easy input via web-based templates. Resource Allocation PPM provides top-down views of project status and milestone tracking enabling PMs to manage initiatives with the portfolio view in mind.  There’s more about Resource Allocation in this blog post. Top-Down Reporting PPM software enables PM to quickly access all relevant data—from project selection criteria to actual vs budgeted results—accessible in a variety of charts and dashboards across the enterprise.  Read more about best practices for reporting within PPM here.   Benefits To Project Managers Easy PM access to project data has benefits from performance improvement that range from the quantitative (improved project success rate, financial return, and cost savings) to the qualitative (less time spent doing manual tasks, improved organizational success, and support to formalize and develop a Project Management Office (PMO).) These and many other valuable PPM features listed below combine to transform the PM role from being viewed simply as a facilitation role with limited organizational value to one with a demonstrable impact on achieving your organization’s strategic goals. The Benefits of Project Portfolio Management Improved: Risk Management Financial Management Forecasting Pipeline Management Resource Management Change Management Documentation Reporting and Analytics Business intelligence Dashboards for Critical Project Status Real-Time Monitoring Collaboration with Stakeholders We could go on, and on about the benefits of obtaining the right Project Portfolio Management solution but if you’re interested in learning more, contact us for a free demo.

Quick Take: What is Project Management Software?—Project management software helps project managers in day-to-day project planning, tracking, and monitoring with an emphasis on understanding and managing immediate priorities What is Enterprise Project Management Software?—EPM software is similar to Project Management Software but operates on a larger scale. Because enterprises have more than one project in progress simultaneously, an EPM solution helps to manage, monitor, and assess the activities, schedules, and work breakdown structures for many projects across all departments. What is Project Portfolio Management Software?—PPM software is designed to manage collections (portfolios) of projects, programs, or products, including current and future projects. PPM systems track the dependencies between projects and the enterprise, to provide project managers and executives a global view. A portfolio continuously optimizes the allocation, prioritization and scheduling of resources. PM, EPM, and PPM Explained If you already use project management software — or even a good project-driven ERP system — then it’s natural to question whether or not you actually need project and portfolio management software. To add to the confusion, some vendors sell each of these systems as separate applications, while others offer an all-in-one product. So can one platform really do the job of three — and save you software licensing costs? Yes, it can, if it’s the right software. Let’s examine the difference between these systems and sort out which software is best for your business. PM: Project Management Software Project management software involves functionality aimed at day-to-day project planning, tracking, and monitoring. Project Managers focus on the needs of their stakeholders. They obtain the resources necessary for success and apply technology, methodology, and resources to achieve project success. A Project Manager is primarily interested in immediate priorities — who is supposed to do what activity when, and what are the costs involved. Software tools help teams collaborate and increase transparency through features such as milestones, Gantt charts, budgeting, calendars, and timesheets. PM software also enhances the communication and collaboration between projects. Project management software is typically focused at helping individual project managers manage their projects. EPM: Enterprise Project Management Software Like project management software, enterprise project management software is also designed to facilitate day-to-day project delivery and management, but on a larger scale, generally company-wide. Since enterprises have more than one project in progress simultaneously, an EPM solution helps reach across the organization manage, monitor, streamline, and assess the activities, schedules, and work breakdown structures for the company’s existing set of projects. Enterprise project management focuses across the enterprise, to prioritize business goals by managing and grouping projects to meet broader enterprise-wide objectives. Getting a handle on success factors in enterprise project management can save companies significant money. The Project Management Institute (PMI) found in a study 14 percent of IT projects fail. IT gets worse.  Of the projects that didn’t fail outright, 31 percent didn’t meet their goals, 43 percent exceeded their initial budgets, and 49 percent were late. PPM: Project Portfolio Management Software Project portfolio management software is designed to handle projects, programs, or products across the enterprise in part by assigning projects to portfolios. Questions answered by PPM software go beyond “Did the project end successfully” to help determine other success factors, such as: How did the project fit into the current mix? Do projects of this type meet organizational goals? What are the inter-dependencies between projects? Three months from now, will we have enough resources to start the project? Which projects are failing and should be terminated? PPM systems show performance and resource demands of current projects, as well as projects that are being bid, sold, or will start at a future date. PPM systems show how projects fit with the rest of the enterprise, giving project managers and executives a global view of where skills and resources are invested. PPM software generally aggregates project data from PM, EPM, or ERP systems to create portfolios of existing and future projects for evaluation organized by budget size, calendar year, budget year, business line, and so on. Since PPM products provide a comprehensive zoomed-out view of projects, some software vendors may be good at the big picture but lack the tools needed to manage the granular aspects of an individual project or sub-project. The most effective PPM software handles both the macro and micro view of an organization’s projects. Get the Real Thing As technology rapidly advances, many ERP vendors are claiming they are capable of delivering the functionality of PPM, EPM, or both — which can confuse the buying process. Also there are some EPM solutions that claim they are PPM solutions. Don’t necessarily judge a system by its acronym. Instead, focus on pinpointing the goals and needs of your business, then evaluate and choose a project portfolio management software vendor that meets your specific needs. If you need an enterprise-wide solution that aggregates project data to create portfolios of existing and future projects, that shows performance and resource demands of current and future projects, that delivers Project Prioritization, Project Management, Resource Management and Project Portfolio Reporting, contact us today at [email protected].