The methodology is well designed, the managers agree on the need to have reliable information on projects to make decisions and the entire corporate structure is ready to embark on portfolio management. But within a few months, it becomes clear that employees who should feed the system with data about their work are not fulfilling their obligations.
This has been a problem for hundreds of large and medium-sized companies, but luckily there are many tactics to deal with the problem of internal resistance.
In this article, we present a summary of our PMO guide on how to encourage the adoption of a PPM tool.
PPM (Project Portfolio Management) software, responds to a basic need in any corporate environment: the coordination, monitoring and control of all projects to obtain the best possible use of the limited resources available.
A PPM tool can be used to support projects of any kind, for Innovation, IT, Operations, but also for strategy, marketing, or sales, as well as cross-organizational and transformation projects.
In all cases, PPM software will offer many benefits to your business:
A single place for collaborative work between departments and teams
Aggregate information for decision making
Reduction of non-strategic projects
Speed up project delivery times
Save time spent on administrative work
Challenges in adopting PPM software
Unfortunately, this process won’t be without challenges. Like other software, it relies on the data fed into the system. If this isn’t done correctly, the effectiveness of the software will be compromised.
This affects almost all corporate software, not just PPM tools: Imagine a CRM without customer data. Or an ERP without invoices.
Despite the difficulties, PPM software is vital to compete against the best because it provides an unbiased and clear view of the status of the whole project portfolio.
That’s why you will need to manage two fundamental elements when embarking on the transition:
A framework to manage the projects portfolio that is well integrated into the design of the organization
An adoption plan that anticipates employee reactions to channel them in a positive direction
The adoption plan must also consider how non-technical components affect the resistance to change. For example: in some cases, resistance is due to objective problems in daily operations. In that scenario, it is important to listen to the objections and address them.
On other occasions, the resistance is political in nature or due to friction within the management team.
Click here to read our e-book and discover all the problems that can derail successful implementation and how to deal with them.
Receive the latest blogs directly into your inbox
ERPs (Enterprise Resource Planning systems) are the widest and most complex category of business software. As they are dedicated to all kinds of resources management, they must coexist with other business solutions which are more dedicated to business, such as PPM systems. In this article, we provide the keys regarding the limits of each tool and tips for a successful integration.
Sometimes, at ITM Platform we receive integration requests from some of our clients’ ERPs. In the following example, we explain what the coexistence rules are between a Project Portfolio Management system and an ERP.
Why ERP and PPM should coexist: a common story
A great ticketing agency hires a business controller to carry out an evaluation of the company’s internal processes. Its mission is to suggest improvements oriented to solving data discrepancy problems which currently exist between the finance department and commercial divisions. These matters are having important political repercussions because they affect sensitive issues such as the calculation of bonus at the end of the year.
From the first moment, the expert supposes that the problem is within the business software that the company is using. Or, in other words, within the incoordination between the different management tools that have been adopted in different areas of the company, in which the CIOs figure doesn’t exist.
An ERP with duplicated information is a bad ERP
Our business controller discovers that no one has taken the effort to define information flows between ERP (a kind of a feral version of SAP) and the company’s project portfolio management system. The consequence is that there are parallel processes with divergent results whose origin is difficult to estimate. Basically, the ERP doesn’t get to capture the complexity of a project’s cost structure in which there are cost estimates, real bills, calculated costs of internal and external hours, reported and accepted…
From that moment on, a decision is taken: PPM system, oriented to business generation, should be the entry point for all the information related to the organization’s projects, so that PPM project’s financial data “rules” over ERP and disagreements can be eliminated.
This example is typical within ERP integration and project management software. Generally, it is advisable to give autonomy to PPM system in order to support the projects’ activity solvency.
5 keys to ERP’s successful integration with a PPM system
Even though each company will have different use cases and specific necessities, there are some clear recommendations for the successful integration of ERP with a PPM system.
Let each system do its job. Data integration must be limited to what it is strictly operative. it is not advisable to design an integration which turns out to be an even greater complexity. On the other hand, orient yourself by three basic goals: avoid work duplication, avoid data divergence and promote transparency.
Share the necessary information. In a corporate environment, there cannot be black boxes. But we aware about the amount of information you share: when transparency is perfect, informative noise can be very loud with a very high productivity cost. That is why it is often advised not to send ERP more project data than the strictly necessary to carry out administrative and financial control tasks.
Choose a flexible PPM. Many PPM systems only send aggregated information about project costs, hindering project costs allocation to different items. By contrast, ITM Platform can send information with the desired granularity thanks to its open API (see documentation).
Don’t slave away your project managers by forcing them to adopt the projects’ module of you ERP. As you can see down below, the best way to integrate ERP and PPM is by letting ERP be in charge of the administration and PPM face all the complexity and the flexibility that a project demands.
Encourage collaboration around projects and the standardization within ERP. Apart from data integration, every technological integration process must face human and change management components. Designed procedures must leave enough operating space for project experts, taking advantage of communication and team cooperation systems, which sets out the PPM solution. On the other hand, ERP usually keeps to much stricter, standardized and mandatory procedures.
What sections of a project are covered by ERP?
When analyzing information systems and data flows in which a business environment is based, it is essential to know in advance what the connected areas are and possible overlaps between different platforms.
There are 4 points in which ERP administrative control layer comes into contact with projects:
In all these areas, it is crucial to design automatic flows from the portfolio management system to the ERP, specifying in each case the needed granularity and not sending invalid data as, for example, the estimated cost of a task.
What can't an ERP do?
The perception of an ERP being a business management machine which serves for any kind of activity can be a very big strain for corporate projects’ health.
For example, here are 5 areas in which ERP does not meet operative standards required by a portfolio management software
Resources planning: even though ERP can calculate and manage resource payments, only PPM has the enough flexibility to plan the resources and to be adapted to delivered work as it is being produced.
Project methodology: PPM tools are designed to be configurable to project methodologies in almost every environment. In addition, its functional scope is, as in ITM Platform’s case, very ambitious, gathering in one place financial and efforts data, risk planning and management, business goals, documents, deliverables, etc.
Task management and access to team members: the work content is difficult to manage from an ERP as, generally, the number of project team members with access to the environment, as well as its collaborative characteristics, is limited.
Portfolio view: PPM systems have prearranged project and portfolio signs and metrics which give a real-time image of the projects’ advancements, apart from allowing to work with customized exportable reports. Obtaining a similar view from an ERP means a tremendous configuration effort and hundreds of consultancy hours, while with ITM Platform it is about a few weeks.
Financial services are an infallible measure of your time
At the time of European colonization, the great adventures of exploration were only possible thanks to the issuance of loans by the great bankers of the time.
In the western United States, at the beginning of the nineteenth century, banks operated with minimal regulation. To build trust in its users, the bank was often the most solid building in the entire settlement. During the time when remote communication was done by MORSE code and the train lines forced to coordinate the schedules in remote territories.
Nowadays, the need for trust and guarantees has not changed, although the means to produce it uses current technologies.
Entities providing financial services to private users move trillions of dollars around the world, and mainly include commercialbanks andinsurers. The transition to increasingly more digital users has forced this sector not only to provide online banking services, but to give access to those same services in mobile applications.
The pressure on banking to modernize its IT systems
And it's not just about designing an attractive and useful online banking application.
A commercial banking mobile application is only possible as a result of dozens of different projects, such as:
Making remittances to other banking entities
Secure authentication system with fingerprint
Account management, with recovery of historical information and permanent updating of the latest movements
GPS navigation to find the nearest cashier or office
Viewing of information
All this does not take into account all the technological infrastructure with which the online banking application must be connected in order to be launched, nor the legal and compliance obligations to which this type of operations are subject, including the protection of data during its recovery , treatment, storage and communication.
Competition is fierce: according to a Ernst & Young report launched in 2016, in most surveyed countries, the general public relies more on mobile banking services from supermarket chains or digital home banking to traditional banks' online banking applications .
If these projects were not managed in a coordinated way, it would be impossible to guarantee the service. What's more, it would be crazy to think that it would work at the time of launch. That is why every financial services company needs to manage its projects in a coordinated manner.
That means that, without addressing all the implications and connections between the new application and existing systems, and without coordinating projects based on these connections, at some point we will find this message when we open our online personal banking application:
"We are experiencing some technical difficulties. Apologies for the inconvenience."
If we reach this outcome, coordination has failed. Meaning having to abandon the project management to deal with the crisis.
The message has as many causes and variations: login problems, failure to update data, procedural problems.
However, the result is the same: loss of customers and reputation.
That is why, for the organizations that manage to coordinate their projects, competitive advantages immediately ensue. In addition, attracted by a comforting user experience, new customers arrive in flocks. The most robust building in the city has been erected, perfectly visible on every mobile screen.
Financial services and project management
In order to avoid messages like that and to construct a robust strategy of technological delivery, the responsibility of the CIO of a banking institution has to be the general of his army. In order to coordinate their activities, these profiles should focus on at least 6 major responsibilities:
Develop projects for all business units of the organization with equipment and limited funding, often responding to direct demands for new internal projects.
Modernize information systems, which are often decades old. The transition is difficult, but without it the overall response time will be compromised. In addition, problems of backward compatibility may arise as soon as there are strong demands to implement new technologies for a user, such as direct mobile payment.
Reducing contingencies that impede active planning and "putting out fires" effectively.
These responsibilities require access to aggregate information, such as that provided by portfolio management tools, and which can be summarized in 6 basic questions:
Are there limits or restrictions on the use of these resources?
What other projects can be implemented with current capacity?
What are the dependencies between projects?
What are the options for resolving conflicts for the use of resources between different projects?
In addition, there are other questions whose response is likely to require meetings and deliberation. The following 4 are some examples.
Are there unapproved project proposals that merit efforts in the light of the current situation, or do they have synergies with other projects already initiated?
Given the follow-up of the projects, is it appropriate to cancel any of the ongoing projects?
Have resources been planned according to project priorities and job-specific competencies?
Is there any review of objectives and priorities affecting project implementation?
In many organizations in other sectors, the portfolio steering committee is comprised of directors from various areas, each of whom provides input on priority projects. This model can also be implemented in banks or insurers; the key is to find the balance between the technical feasibility criteria of IT managers and the business vision.
On these foundations, the digitization, innovation and commercial development projects of any financial services entity will be protected by a robust governance system with guarantees of success.
If you liked this blog, here are some related blogs that you may find interesting:
Effectiveness of internal change projects requires effective leadership that is able to be influential without coercion, to persuade through seduction, and to recognize the complexity of influence in corporate settings.
Communication is one of the most complex and at the same time exciting processes of the human being. Although many human aspects are influenced by communication, language is the main component. In addition, in a project-dominated work environment, where the nature of work is different every time, communication is a fundamental piece that every project manager must master.
The same is true for projects aimed at internal change. Moreover, change communication is more complex than the normal. Typically, when we communicate a message to produce a change in someone's behaviour, we expect an immediate reaction from an isolated individual or a small group of people. On the contrary, in change management we seek to produce a stable and controlled change, over time, where the recipient is a group of people whose answers must be coordinated. The complexity can be overwhelming.
The importance of communication in these cases is essential. If you do not measure the reactions to the change through feedback flows, you run the risk of unsuccessfully implementing the change due to uncertainty and lack of knowledge of the issues.
Therefore, mastery of communication techniques is essential for the proper functioning of a company. To begin with, in organizations of a certain size it is advisable to have internal communication policies that facilitate such feedback. One simple way to set these policies, for example, is to set up weekly meetings. In large corporations, internal communication often requires the hiring of experts to streamline discussions and establish initiatives to share ideas, knowledge or impressions.
In general, the domain of change communications can be divided into three aspects: using the right language, communicate in the optimal context, and to focus communication to the solution of real problems presented in the projects and which are perceived by their Leaders.
Use the right language to communicate change
The words you use to describe change management will mark the willingness of your interlocutors to adopt these new work systems. Whether it's to convince project leaders about the introduction of a new methodology or to motivate project members to keep it in mind during the different phases of the project, the terminology that you have managed will have clear repercussions.
For starters, its very difficult for your team to feel interested in a work system that they do not understand. Therefore, it is best to speak in a language that you know they will understand. If the new methodology is born from the identification of problems with which they are in contact, make the connections obvious so that they can understand the consequences of their work on the whole organization. Communication can empower if it seeks to reinforce the consistency between problems and solutions to the scale of individual work.
Another more simple example, it happens similarly when a doctor explains to their patient what his diagnosis is and why it is important to follow a certain treatment. If you use excessively technical language, although it is probably the most scientifically and academically correct, your patient will not understand, will not give adequate importance to their illness, or will not be able to properly follow the treatment. Therefore, it is the responsibility of the physician to use adequate language to ensure that the patient is aware of his illness and predisposes him to follow the treatment properly. The success of the company (in this case, the good treatment of the patient) depends on it.
Change management cannot be considered an isolated activity, independent of the rest of the company. Precisely the opposite, change management must permeate all aspects of the company, so it must be shown as a global concept that relates to the company and its circumstances.
A fact that is common to change in all companies, is that it must occur in each and every one of the people involved in the project. The global change will be the result of the addition and interaction of all the subjects involved in the project or in the company.
Therefore, change must be presented as a discipline that requires regular and progressive training, prior knowledge and interaction between individuals.
Regardless of these facts, the change manager must pay special attention to the needs and specific situation of each company and market, in order to be able to adapt the changemethodologies in a personalized way to the circumstances of the company.
Solving real problems
Company managers seek solutions to their daily business problems to enable them to reach a final product that meets the needs of their customers and obtain the desired market share.
Therefore, in order to convince them of the need to make changes and an adequate management of the change process, it is necessary to touch on the issues that matter to them, that the changes aim to improve the results of the projects. For example, if the organization does not have a methodology for coordinating projects with interdependencies, new conversations about the contribution of projects in terms of external benefits, the objectives of the different programs and the guidelines that guide the overall strategy should aim to spread to all levels, to be gradually incorporated as a business culture. Thus, project members should move from being part of a project to being part of a corporate portfolio with more ambitious goals.
One of the main responsibilities of the change manager is to identify how process failures, described at the macro level, can be modified in a realistic manner. It is essential that an arrangement be reached between a top-down and bottom-up perspective.
Acceptance = language + context + troubleshooting
Today, more than ever, organizations need effective change management. The change today is greater than ever before in business history: faster and more important and more complex. Due to the demands of the market, companies also become more demanding and ask for positive and concrete results.
To get acceptance of the change systems, you can rely on the three fundamental pillars that we have developed throughout this article: use a precise language while also being accessible, adapt to the context and the concrete needs of each company and each market scenario and demonstrate that an efficient change management will solve practical problems for the company.
If you are interested in this article, you can continue reading some of these:
Industy standards that consolidate at certain historical moments are often more strongly influenced by the human tendency to conservatism than by the value they bring.
It may seem like a bold statement, but there is a plethora of literature on it. It will be clearer with an example: the QWERTY keyboard came from a salesman trick: agents who sold typewriters demonstrated the amazing ease of use by typing the word "typewriter" using only keys in the upper row of the keyboard.
However, many people still believe that the QWERTY keyboard was created after extensive studies on the relationships between English vocabulary letters and, therefore, is optimized for English speakers.
This is the case of MS Project, which appeared in the era of the personal computer and propelled the digital consolidation of project management methodologies in hundreds of thousands of organizations. Just as QWERTY has never been replaced by an alternative keyboard due to the resistance of the typographers (first) and the millions of users (after) who were already accustomed to a certain configuration, the continuity in using MS Project is not due to a rational comparison between alternatives evaluated on an equal footing, but the enormous power of continuity.
What both products have in common is the combinatorial use to generate a superior result to its parts. The integration of characters and components creates a coordinated meaning. In this situation, replacing all functions with different access modes in an alternative generates major issues in the transition.
This rate will go down for one simple reason: MS Project is a product anchored in the past. There are many reasons to dismiss it in favor of a solution based on a contemporary digital paradigm, that is: collaborative, distributed and connected.
So, what are the main reasons for leaving behind MS Project?
The question could also be formulated in the opposite direction: What reason is there to continue using MS Project? It is fundamentally a desktop program and is for personal use? Is it that it’s comfortable? Or a false perception of the balance between advantages and disadvantages?
Let's review the motivations for replacing MS Project with a SaaS solution like ITM Platform:
MS Project is single user (ITM Platform is multi-user)
In MS Project, the working model is a project manager who creates the project plan, saves it to a file on a local hard drive ... and makes changes manually.
"In ITM Platform, your team can be an army permanently connected."
Overcoming the native limitations of MS Project as a desktop solution is very costly even for small teams. While ITM Platform is worth $ 1,000 USD per year to support teams of up to 7 people, that same amount can only serve 1.5 people with the most affordable version of MS Project online.
In addition, since MS Project does not have project approval mechanisms and state changes, anyone can make changes to .mpp files on a shared server without prior discussion, without approval flows or notifications to the parties involved.
On the contrary, ITM Platform works from a network model, so users do not work on files, but in environments: shared project ecosystems common to each organization. This model has important implications:
Users have differentiated access profiles, so they make modifications exclusively in their area of responsibility;
No action by other users goes unnoticed: the system generates notifications about changes made to projects and tasks, as well as allowing contextual communications.
In short, thanks to the ability of team members to report hours and progress, the distance between planning and execution is much shorter and more efficient than MS Project.
ITM Platform is designed for strategic planning - MS Project is not
MS Project focuses on improving its timeline; ITM Platform in alignment with business objectives
When considering this aspect, the history of project management as a discipline is of particular importance. With its expansion beyond the fields of engineering to assert itself as an organization management model, the demands on the priority aspects with which software must comply have changed.
MS Project has not responded to those needs, having preferred to concentrate on the complexity of planning aspects.
In contrast, ITM Platform allows you to introduce business objectives, study different scenarios and make decisions based on actual data for which projects to execute.
MS Project requires expensive installations - ITM Platform is cloud based
"ITM Platform is a tool for organizations; MS Project is software for the personal use of project managers."
This distinction has nuances: MS Project Server is the version for organizations that Microsoft offer. However, the process of moving from the personal to the organizational version can cost between $ 10,000 and $ 20,000. In addition, the on premises installation requires MS, SQL and Sharepoint servers as a starting point, as well as advanced technical expertise in those fields.
On the other hand, the deployment of ITM Platform in an organization is much more agile, since it does not require any type of installation (clarification: we offer on-premises installation for the organizations that demand it, but it is a marginal option among our customers). Including all parameterization and initial training, our customers begin to use ITM Platform in terms of between two days and two weeks.
Build a PMO in a week ... or in an eternity
"ITM Platform is an ideal tool to create a project management office."
For adoption facilities and portfolio management capabilities, ITM Platform is an ideal tool for organizations that already manage projects from the initiative of individual project managers and that are about to create a project management office. While MS Project Server requires a remarkable economic and human effort to simply deploy the tool, ITM Platform is a catalyst for centralized management, thanks to the ability to focus on the methodological aspects that really matter.
MS Project does not offer control over basic integration components
The management of basic components of project integration - such as costs and billing of projects - are done outside of MS Project, so anyone who only accesses the .mpp file has no visibility to these modifications.
On the other hand, ITM Platform's solution includes cost management, making it an excellent candidate for integrations with ERP systems. Another example of the holistic ITM Platform approach is risk.
MS Project has a closed philosophy - ITM Platform an open philosophy
In the era of online business productivity, where most players integrate solutions through API to achieve more ambitious automation flows, Microsoft maintains a closed philosophy that only allows to connect their own solutions with each other: Excel, Access, and so on. Even so, the possibilities to connect MS Project are deficient. It is impossible, for example, to receive custom notifications in Outlook when modifications are made to projects.
On the contrary, ITM Platform strives to coexist with the systems of all our clients: we don’t want to bring about traumatic changes.
Not only do we have a complete API for developers from any organization to connect their ERP, accounting or CRM systems; there are also integrations with JIRA and Slack, as well as an upcoming presence in Zapier.
MS Project is rigid - ITM Platform is flexible
According to Mark Corker, president of Seradex Web Services, software complexity and the repercussions of preprogrammed options to readjust dates in dependency tasks have the counterproductive result that 99% of MS Project projects have no reliable dates.
On the contrary, ITM Platform is based on a flexible software model: resilient adaptation goes from the technology to the user, and not the other way around. That's the reason why ITM Platform is enjoyed not just by project managers, but also by CFOs, CEOs, CIOs, IT Analysts, and a long etcetera.
Receive the latest blogs directly into your inbox
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More
Privacy & Cookies Policy
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
Financial services are an infallible measure of your time
Effectiveness of internal change projects requires effective leadership that is able to be influential without coercion, to persuade through seduction, and to recognize 
