An initially small, transparent project portfolio turns into a jungle-‘madness’ of projects over time. If this sounds familiar to you, we encourage you to start a change process – but what’s in for you?
Julian Jirsak, Director Project Portfolio Management, Hamburg Airport, gets straight to the point: “If you have the courage to break up and re-arrange existing structures and processes, you can save a lot of time, effort and money with a centralized Project Performance Management tool. With the help of smartPM.solutions consultants, Hamburg Airport saves several Mio. Euro every year: As the logical result of the rigid and system-immanent cost-control of the PPM tool – that resonates very well, considering software costs in the low six-digit range.”
Do you want to know how your projects perform and whether they contribute to your company’s strategy utmost? Then you should definitely read this post.
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PPM – see the bigger picture
The main benefit of project performance management is to provide a comprehensive overview of all investments in the project business of a company – and their business impact.
Right at the beginning of a project lifecycle (e.g. at a project proposal/idea stage), lack of clarity can result in the loss of a significant amount of money. Before checking project proposals against certain criteria like risks, cost, time, quality, revenue impact and alignment with strategic targets, establishing project budget limits has proven to be very useful. Cluster cost caps like these and rigid submission/sign off processes have saved the above-mentioned Hamburg Airport high amounts of money.
Prioritization of projects is one key success element of PPM – efficient resource allocation and optimization of dependencies and priorities between several projects is the second. Especially because scarce resources like experts or special skills tend to be requested simultaneously for different projects.
In that respect, Multi-Project-PM allows for impact simulation (‘what if analysis’) of a particular project change to the whole project portfolio. Strategically important or revenue-driving projects might be put on the ‘fast track’, whereas other projects might be downgraded or delayed. Projects contributing to company revenue can be included in sales planning processes and linked to the respective P/L or contribution margin calculation. This is one key differentiator between Project Performance Management and Multi Project Controlling, since PPM does not see projects as pure cost carriers.
Because of the large number of installations of smartPM.solutions’ PPM module, the system is prepared for any usecase you might think of. It provides milestone- and cost-trend-analysis, cost-time-diagrams as well as earned-value analysis, spotting progress against actual cost at any point of time.
How do we perform project-wise?
smartPM.solutions’ Project Performance Management application retrieves project related information from any source system and adds commitment monitoring and (artificial) forecasting intelligence to predict project performance for several scenarios.
Which projects do we run and why?
More and more companies feel and act ‘project-driven’. To be fair, it does not always seem to be clear who triggered which project and for which purpose and timeline. Our solution allows for Project Portfolio Management (‘Clustering’) and Portfolio Balancing, mitigating risk.
To wrap it up: smartPM.solutions’ PPM application allows you to operate any project driven business in full control. Monitor your project portfolio, react on time to optimize financial and risk impact of certain projects or project portfolios, classify projects according to their strategic relevance and other key criteria and simulate any decision you take upfront. Connect our PPM solution to IFP and be on top of your projects!
Six steps to efficient projects and project portfolios...
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