Some small and mid-sized businesses may see project management tools and processes as concerns reserved for larger companies that have extensive resources and multiple, large-budget projects to manage. But project management (PM) is not just for large corporates.
Project management is the discipline of initiating, planning, executing, and managing resources with the goal of completing specific deliverables within budget and time. It is an essential procedure for any successful business, especially now that the economy is beginning to pick up. Competition to offer the best possible service in order to gain market share is intensifying.
Getting work completed to deadline and to budget and being in a position to invoice correctly and punctually will be of the upmost importance. Many small companies will use a spreadsheet or a whiteboard to help plan projects and use of resources. However, if they wish to gain better control of their business, thrive in the current market and to continue to see enhanced business efficiency as their business grows, smaller companies should not put off investing in project management software solutions for too long.
Time is of the essence
Many businesses do not invest in project management systems until they have already grown to a large size and have already outgrown their current means of managing projects. Implementing a project management system at a large organisation can be complicated. There is also greater risk of resistance from a large workforce in adopting the use of the system. Smaller businesses have the opportunity to put project management tools in place before they grow to a size where the implementation process becomes more complicated. As small organisations, decision making is quicker which makes implementation of the system more straightforward. A smaller team is also more likely to embrace the use of the tool from the outset.
Implementing PM tools can help small businesses expand by providing a means of forward planning. As the company grows and contract sizes increase, PM software can be used to help businesses ascertain how to use time and resources effectively in order to smooth the process of growth.
Getting a clearer view
Small businesses can easily get distracted by the workload in hand and lose view of the bigger picture of where their business is going and what it needs to grow. By using PM software businesses not only have a clear view of current work in progress, milestones and delivery dates but can clearly see what is in the pipeline. It can help prevent small businesses biting off ‘more than they can chew' and more easily spot opportunities for growth.
Better cost and people management
Project management tools allow businesses to have a crystal clear idea of goals, time-frames and tasks. Resource management tools allow businesses to see what skills they have in place. Large businesses use these tools along with timesheets to ensure that they are maximizing the use and time of their staff and giving them the right amount of work at the right level. Recently, as a result of the recession, many large companies have been forced to reduce headcount. By using project & resource management software (PRM), these businesses can look to effectively delegate tasks to make up for the drop in staffing levels to ensure staff are not being overloaded and that task distribution is balanced.
Project & resource management tools can also help smaller businesses be more cost efficient and maximise the use of their team's time. During busy periods, small businesses often need to use contractors simply to keep up. These can cost around five times more per day than employed staff. By using PRM tools that offer a clear idea of the tasks and skill-sets needed for a given project, companies can accurately assess what can be handled in-house and be sure that they are only delegating work to contractors that cannot be undertaken by employed staff, reducing unnecessary expenditure on contractors. In the same way PRM software can be relied on to help make an accurate analysis of whether a small business can justify taking on a new team member and that they have enough work for them.
Some PRM tools also include integrated timesheets. Large businesses use information gathered from timesheets not only to understand exactly what employees are doing and how long it is taking them but also to update their project estimates based on real-time progress. If a task takes four days as opposed to two, companies can recalculate their estimates to allow for this additional time and cost. Understanding exactly what your staff are doing and how long it is taking them is a key factor in the development and management of a small business and one that company directors should look at in more detail.
In summary, project and resource management software plays a fundamental role within large organisations by offering better visibility and management of resources and helps to deliver enhanced business efficiency. It is an important investment for the future of a small business and while the cost of implementing a system may seem significant now, it will more than prove its worth in the long run by ensuring business prosperity and efficiency as it expands.
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