Manage projects or project portfolios with the right tools

Managing projects and project portfolios efficiently

In order to manage individual projects or project portfolios efficiently, it is first necessary to distinguish between the underlying approaches. The project management approach encompasses the planning, implementation, and administration of individual projects. The aim here is to achieve the defined goals within the time limits, with the resources provided, and within the scope. Project portfolio management, on the other hand, aims to select and prioritize multiple projects correctly in order to maximize value and consistently implement strategic corporate goals. To ensure the optimal execution of both approaches, the use of suitable project software can lead to significantly improved management of the project(s). However, not every tool is suitable for every project, which is why the selection is particularly relevant.

These are the features a project management tool needs

The use of a suitable project management tool is particularly important for complex projects, as it is essential for ensuring the success of the project. Such a tool supports project teams in making their work more efficient. On the one hand, it creates clear structures and ensures transparency. On the other hand, it can be used to centrally organize and monitor the tasks, resources, and schedules of a project. This enables optimized planning and the correct prioritization of the projects to be carried out.

In addition, its use promotes collaboration—especially in distributed teams—and ensures continuous progress monitoring and supports the identification, assessment, and resolution of existing risks within projects. They also help to automate manual processes such as reporting or scheduling, thereby reducing errors. The right project management tool thus promotes efficiency and quality in project execution, significantly increasing the likelihood of success.

There is now a wide range of project management tools on the market, which each company can select individually according to its own needs. In addition to being highly user-friendly and creating additional flexibility, such a tool should have the following basic functions:

Enabling individual project planning
The right project management tool is designed to ensure effective project planning. It provides an overview of all planned tasks and deadlines. A shared team calendar and automated notifications—for example, for important deadlines—also help to increase the efficiency of project processes. Such tools also support better distribution of tasks and responsibilities to specific team members. This creates a clear picture of the workload within the team and simplifies time planning.

Task management as a central element
One of the most important functions of project management tools is undoubtedly task management within projects. Powerful task management is needed to enable projects to be divided into manageable stages. Viewing individual tasks separately means that time and financial resources can be allocated to them. It may be necessary to integrate a “critical path” in order to track project progress over time.

Optimizing collaboration and communication
Fast communication within project teams is a key success factor for project implementation. Project management tools should therefore include a central communication platform and provide all team members with access to all data and even detailed information. If projects require increased communication with customers, there are also project management tools on the market for this purpose. They help to keep customers up to date with the latest project progress.

Reporting, budget and resource management
Projects involve many organizational tasks. Here, too, the use of the right project management tool can bring flexibility and simplification. The reports generated can be used, for example, to see how well a project has gone or where financial or time-related problems have arisen. Some tools also offer special resource management functions. They provide an overview of the conference rooms booked and the resources used and show the costs.

Recording working hours
A project management tool should offer time tracking functions for team members. This provides companies with information about which tasks within a project take up a particularly large amount of time. This allows the costs and time required for similar future projects to be calculated more accurately. Some tools also offer the option of achieving significant time savings by adjusting hourly rates. This helps to make work processes more efficient and optimize resource utilization.

Companies should also always take individual requirements into account, such as size, financial capacity, complexity, and approach to a project. The tool’s functions should be aligned with these individual requirements. The project goals should correspond as closely as possible to the requirements of the project management solution.

Not only the size of the company plays a decisive role here, but also the required flexibility. The type of solution should also be taken into account. Specifically, this means deciding whether to install the solution in the cloud or on an in-house server. At the same time, the compatibility of the new solution with the solutions already installed should be ensured.

Choosing the right project management tool

In order for companies to find the right project management tool for their needs from the multitude of available solutions, they must go through a multi-step process. This requires time and strategic thinking in order to make an informed decision. A hasty decision can lead to frustration and inefficiency within the team, as well as high follow-up costs. When selecting the appropriate project tool for optimizing project processes, the following steps should be taken into account. They should be tailored to the specific project requirements. The process goes through the following phases:

• To find the right tool, it is crucial to carefully examine and understand the exact requirements of the project. This includes a detailed understanding of all functions, but also an awareness of the specific challenges of the upcoming project. Clarity about requirements and challenges forms the basis for selection. In order for all team members to actively use the tool to complete their tasks, it is important that it is user-friendly and intuitive to use.
• The acceptance of a project tool within the team is increased when it is actually used in practice. High user-friendliness is crucial so that individual team members can easily recognize and utilize the advantages of such a tool. The tool should therefore have an intuitive design and clear user interfaces. Only in this way is it possible to promote the necessary acceptance within the team and contribute to the tool being used as an integral part of the team’s work.
• The requirements placed on a project tool can change over the course of a project. A powerful project management tool should therefore be able to grow with the team. At the same time, it should be able to adapt to changing project requirements. Both the scalability and flexibility of the project management tool are therefore important criteria for adapting to changing conditions while always delivering the best performance.
• In most cases, different tools are used in project work, so it is important to ensure that the various tools used are compatible with each other. This is the only way to ensure smooth data exchange between the systems. At the same time, functions are integrated that improve collaboration within the team and communication options. It should always be kept in mind that effective collaboration and seamless communication significantly promote project success.
• Other features that a project management tool should have are reporting and analytics capabilities. However, these should not only monitor, but also identify opportunities for improvement. Security and data protection are also of utmost importance, especially when it comes to accessing and processing sensitive data. The project management tool should therefore comply with the latest security standards and take data protection into account.

Another aspect that should be considered when selecting the right project management tool is the cost of purchasing the tool. It is important to choose a tool that fits within the project’s budget. In addition, it should be considered whether it is a one-time license fee or a subscription.

Comparison of two project management tools from Microsoft

IT veteran Microsoft also offers two project management tools, whose functions will be compared directly below: Microsoft Planner (MS Planner for short) and Microsoft Project (MS Project for short). The focus will be on the differences between the two project management tools in terms of their core functional areas, as well as the advantages and disadvantages of both tools.

Microsoft Planner – Advantages

1. The user-friendly interface enables easy task management.
2. Integration with Microsoft 365 promotes team collaboration.
3. Tasks can be easily assigned and tracked within the team.

Microsoft Planner – Disadvantages

1. The tool is not suitable for larger teams that require detailed task dependencies
2. The reporting functions are not as robust as those of some competing products
3. MS Planner lacks advanced customization options for complex projects

MS Project – Advantages

1. Users receive detailed reports and analyses for better decision-making
2. MS Project offers stable tools for resource management
3. Complex project plans can be managed with MS Project without much effort

MS Project – Disadvantages

1. MS Project requires a significant amount of time for implementation and maintenance
2. The user interface may seem outdated to users compared to more recent tools
3. New users must learn and understand many functions at once

Comparison of the most important differences between MS Planner and MS Project in various relevant areas:

Overall, it can be said that MS Planner is best suited for small teams or individuals. They need an easy-to-use, intuitive tool for task management and team collaboration. It is ideal for members of the creative industries or for startups where flexibility and ease of use are key.

MS Project, on the other hand, is particularly suitable for project managers in larger companies or industries such as construction or IT. Here, detailed project planning, project tracking, and good resource management are particularly relevant. If projects are multi-layered or complex, MS Project is certainly the better alternative.