Category: project management

In the project management domain, the Balanced Scorecard (BSC) has made a name for itself as an essential tool for project managers.

This method provides a comprehensive view of business performance by linking strategic goals with operational activities.

Let’s see what it is about and how to implement it effectively.

Balanced Scorecard origins

The Balanced Scorecard (BSC) concept was introduced in 1992 by Robert S. Kaplan and David P. Norton.

These two pioneering thinkers changed the business strategic management and performance monitoring scenario. Their groundbreaking approach stemmed from the realization that traditional methods of assessing corporate performance, based primarily on financial indicators, were inadequate for comprehensive and effective strategic management.

Kaplan and Norton presented the BSC as a framework that balances financial indicators with other measures related to critical success factors.

The idea was to provide managers with a more balanced and comprehensive tool to monitor and guide business performance. The Balanced Scorecard not only considers financial performance but also integrates metrics related to customer satisfaction, the efficiency of internal processes, and the company’s capability for innovation and growth.

Since then, countless businesses have adopted and adapted the BSC worldwide, growing into one of the most influential and widespread strategic management tools.

Over the years, Kaplan and Norton have further developed and refined the BSC concept. They introduced the idea of “strategy maps,” which help organizations visualize cause-and-effect relationships between different strategic objectives. This has further established the BSC as a tool for performance measurement and strategic planning and execution.

Today’s application is more than just performance measurement, influencing corporate culture, internal communication, and strategic decision-making.

Tools like Twproject can play a crucial role in BSC implementation and monitoring, providing an integrated platform for aligning strategic goals with day-to-day activities.

The four perspectives of the balanced scorecard

The Balanced Scorecard differs in its holistic approach to business performance measurement, structured around four key perspectives.

These perspectives help organizations balance short-term goals with long-term targets by considering various aspects critical to success.

Here is a detailed analysis of each perspective:

• Financial perspective: This perspective focuses on a business’s economic aspects and financial health. Key indicators in this category include return on investment (ROI), cash flow, revenue growth, and profitability. The goal is to ensure that business decisions and project initiatives contribute positively to financial performance. As such, the BSC helps managers understand how operational strategies affect financial performance.

• Customer satisfaction: This element estimates the degree of customer satisfaction and loyalty by considering the company from the customer’s point of view. Indicators such as customer satisfaction, market share, number of customer complaints, and Net Promoter Score (NPS) are commonly used. The goal is to improve service quality, customer relationships, and, ultimately, customer loyalty. This perspective stresses the importance of listening and responding to customer needs for long-term success.

• Perspective of internal processes: this perspective focuses on the efficiency and effectiveness of an organization’s internal processes. It focuses on considering how internal processes can be optimized to improve overall performance. Indicators such as cycle time, product/service quality, and operational efficiency are essential. The goal is to identify and improve critical processes directly affecting customer satisfaction and financial performance.

• Learning and growth: also known as the innovation and growth perspective, this aspect focuses on developing human resources, information systems, and the organization in general. Indicators such as employee satisfaction and training, rate of innovation, and effectiveness of information systems are central. The purpose is to create an environment that fosters continuous learning and innovation, thus ensuring the long-term sustainability and growth of the organization.

By integrating these four perspectives into a consistent framework, the Balanced Scorecard empowers managers to gain a comprehensive and balanced view of business performance.

This approach ensures that strategic decisions are made by factoring in various critical factors rather than relying solely on short-term financial measures.

Successful implementation of the Balanced Scorecard

Implementing the Balanced Scorecard (BSC) in an organization is a process that requires commitment and strategic planning.

Here is a step-by-step guide to a successful implementation:

• Strategic goal setting: The first step in BSC implementation is to set the organization’s strategic goals. These goals should reflect the corporate mission and vision and be clear, measurable, and achievable. These goals must be aligned with the four perspectives of the BSC to ensure a balanced approach.

• Performance Indicators selection (KPIs): Having defined the goals, the next step is choosing key performance indicators (KPIs) for each BSC perspective. These KPIs should be directly related to the strategic goals and provide a clear measure of progress toward achieving those goals. It is crucial to select relevant, reliable, and easily measurable KPIs.

• Engagement and communication with your team: BSC implementation can only be successful with your team’s full support and involvement. Communicating the goals, KPIs, and values of the BSC clearly to all levels of the organization is key. Training and education of staff on how to use the BSC in their daily routines are critical to ensure the adoption and effectiveness of the system.

• Business processes integration: the BSC should be integrated into existing business processes. This means linking BSC objectives to operational plans, budgets, and reporting systems. This alignment ensures that the BSC is not perceived as an isolated initiative, but as an integral part of business management.

• Regular monitoring and review: Once implemented, the BSC requires regular monitoring and review – This includes periodic analysis of KPIs, assessing progress toward strategic goals, and adjusting strategies as necessary. It is crucial to set up a regular review process to ensure that the BSC remains relevant and aligned with the organization’s evolving needs.

• Use of project management tools: Tools such as Twproject can be pivotal in BSC implementation. As a matter of fact, it offers features that help to easily track progress toward goals, monitor KPIs, and generate detailed reports. Using such tools can significantly simplify the monitoring and review process, making BSC implementation more manageable and less burdensome.

Balanced Scorecard: a strategic change in business

Adopting the Balanced Scorecard represents more than simply implementing a new management tool; it is a strategic move that can potentially transform the whole corporate culture.

This transition begins by reconsidering how the organization measures and interprets success, shifting the focus from short-term financial measures to a more holistic, long-term view.

It is an approach that helps pinpoint and close gaps between business strategy and day-to-day operations, ensuring that every part of the organization is aligned with long-term goals.

The introduction of BSC often increases employees’ awareness of the company’s strategic goals. This can increase engagement and motivation as employees better understand how their work contributes to the organization’s overall success.

It also fosters greater collaboration among different departments and encourages a shared vision of the company’s goals.

Another important aspect of BSC-induced strategic change is promoting innovation and continuous learning.

With its emphasis on the learning and growth perspective, the BSC encourages companies to invest in developing their employees’ skills and seeking new opportunities for innovation. This not only improves employees’ skills and productivity but also contributes to the company’s long-term sustainability.

However, this strategic shift comes with its challenges. It requires effective communication from leadership and a commitment to support staff during the transition.

Companies must be prepared to face internal resistance and manage expectations during the BSC implementation process.

The key to overcoming these challenges is to maintain open communication, provide appropriate training, and demonstrate how the BSC can bring tangible benefits through concrete actions.

Why use TWproject for Balanced Scorecard implementation?

Twproject is project management software that can help you implement the Balanced Scorecard in your business. It can be used for:

• Defining your vision and strategy: It can help you frame and document your company’s vision, mission, and strategy. This information can then be used to create a Balanced Scorecard aligned with your overall goals.
• Finding critical success factors: You can use Twproject to pinpoint the most important factors for your company’s success. This information can then be used to set goals and measures for each critical success factor.
• Tracking progress: This software can be used to track progress toward your Balanced Scorecard goals and metrics. This information can then be used to make data-driven decisions about your business strategy.
• Communicating results: Twproject can help share the results of your Balanced Scorecard with your company’s stakeholders. This information can help align everyone to a shared vision and strategy.

Bottom line is that implementing the Balanced Scorecard requires strategic planning, organizational commitment, and the use of the right tools.

By following these steps, companies can ensure that they adopt the BSC effectively, making it a powerful tool for achieving strategic goals and continuous improvement in business performance.

A project backlog is the heart of planning and execution in an agile project management framework.

It’s more than just a list of tasks – it’s a strategic map that guides the team through project complexities and challenges.

This article will explore how to create an effective backlog, a crucial piece of any successful agile project.

What is a project backlog?

A project backlog is an ordered list of all needed to complete the project, including features, functions, technical requirements, improvements, and fixes to be undertaken.

In an agile framework, the backlog is dynamic and subject to change, reflecting evolving project and stakeholder needs.

A well-structured backlog is vital in providing clarity and efficiency. It helps teams quickly understand priorities and organize work more productively.

A clear and detailed backlog helps prevent misunderstandings and ensures all team members are aligned on project goals.

Core elements of a well-defined project backlog

Defining roles in the team

In the agile project scenario, role clarity is paramount to success. Team members are the drivers that turn ideas into reality.

In an agile environment, they work collaboratively, often in cross-functional teams, to complete backlog elements. Team members, specifically the Scrum Master and the Product Owner, have separate yet complementary responsibilities that directly influence the effectiveness of the project backlog.

The Scrum Master acts as a facilitator and coach for the team. Their role is to ensure that the team sticks to the agile methodology principles and uses the most effective practices.

This includes helping teams clear any hurdles that might hinder progress and ensuring that sprint planning meetings are productive.

The Product Owner is the project backlog keeper. This individual is responsible for defining the product vision and ensuring that the backlog reflects this vision.

The Product Owner prioritizes the backlog elements, ensuring that the most critical activities are addressed first. They also work closely with team members to clarify requirements and ensure user stories are well-defined and understandable.

Key elements of a project backlog

A well-defined backlog is more than just a task list; it is a comprehensive roadmap that walks the team through the project.

The backlog must be clear, organized, and strategically structured

 to be effective.

The key elements make it an indispensable tool in agile project management.

• Clarity and specificity: Every element of the backlog must be described clearly and precisely. This means that each task, user story, or requirement must come with well-defined goals and specific criteria for approval. A vague or generic description can lead to misinterpretations, causing delays and inefficiencies. Clarity helps the team understand exactly what needs to be done and what the expectations are.

• Strategic prioritization: Prioritization is crucial in a project backlog. Elements should be ordered according to their relevance and urgency. This helps the team focus on the most critical activities, ensuring that resources are allocated efficiently. Differentiating between what is essential and what can wait is crucial to project success.

• Flexibility and adaptability: The backlog must be flexible in an agile framework. It must be able to quickly adapt to changes, which may stem from user feedback, new findings during development, or changes in business priorities. A strict backlog can hinder progress; therefore, it must be regularly reviewed and updated to reflect the current reality of the project.

• Collaboration and team involvement: An effective backlog results from a collaborative process. Getting the team involved in creating and reviewing the backlog increases the accuracy and relevance of elements and improves team engagement and accountability. Each member should have the opportunity to contribute their insight and expertise.

• Visibility and accessibility: The backlog should be easily accessible to all team members. A clear understanding of the backlog elements ensures that everyone is aligned and aware of current priorities.

Agile methodology and project backlog

The agile methodology is a groundbreaking project management approach, emphasizing flexibility, collaboration, and swift response to change.

Here, the project backlog is crucial, serving as the backbone for the entire development process. Let’s take a look at how the backlog complements and supports the agile methodology.

In the agile methodology, projects are developed iteratively and incrementally – this means that work is broken down into small, manageable parts, often called “sprints.”  

The project backlog supports this approach by providing an ordered list of tasks and requirements that can be addressed in each sprint. This breakdown allows the team to focus on small, short-term goals, making faster and more flexible deliveries easier.

One of the core principles of agile is the ability to adapt quickly to changes.  

Indeed, the project backlog is dynamic; it is not a set plan but rather a list that evolves with the project. This means it can be tweaked and reprioritized based on stakeholder feedback, market changes, or discoveries made by the team during development.

An agile backlog allows the team to stay agile and responsive, ensuring that the final product is as relevant and high quality as possible.

The agile methodology puts heavy emphasis on collaboration among team members and stakeholders. The project backlog becomes a reference point for this collaboration.

Stakeholders, including clients and end users, can contribute to the backlog by providing feedback and suggestions. This ensures that the final product aligns with their needs and expectations. Likewise, the team can discuss and review backlog elements, ensuring they are realistic and feasible.

The prioritization of backlog elements is often based on the value each task brings to the customer or end user. This value-driven approach ensures that resources are focused on the most critical aspects of the project, maximizing the return on investment and impact of the final product.

User Story: the backlog heart

User stories are critical to the project backlog, particularly in an agile context. These short, user-focused descriptions describe what needs to be done and the value that each task brings to the end users.

A user story is typically worded using a simple but powerful structure: “As [user], I want [goal] so that [benefit].”

This format helps focus on the users’ needs and wants rather than detailed technical specifications. Each user story should be clear enough to provide a straightforward understanding of what the user needs and why it is important.

The focus of user stories is the value they bring to the user. This user-oriented approach ensures that the development team remains focused on creating functionality that improves the end-user experience.

Instead of getting lost in technical details, the team can ask, “Are we meeting the user’s needs with this feature?”.

User stories foster collaboration and open discussion within the team and with stakeholders.

They are excellent tools for facilitating mutual understanding and ensuring everyone is on the same page. They also help break work into smaller, more manageable parts, thus making it easier for the team to estimate effort and plan development.

Each user story should include clear criteria for acceptance, which define the specific conditions that must be met for the story to be considered complete.

These standards help ensure that the work accomplished meets expectations and provide clear testing and quality assurance guidelines.

User stories in backlogs should be prioritized according to their value and urgency. This prioritization process helps the team focus on the most important features to users, ensuring that resources are allocated efficiently and that the project makes meaningful progress.

Sprint planning and backlog management

Sprint planning and effective backlog management are critical elements in agile methodology, particularly in frameworks such as Scrum. These steps help teams organize work efficiently and ensure project goals are met systematically.

Let’s take a closer look at these aspects.

Sprint planning meeting

The sprint planning meeting is key when the team, jointly with the Product Owner and Scrum Master, establishes which backlog elements will be addressed in the next sprint.

During this meeting, the team assesses the complexity and time required for each backlog element, laying out a realistic plan for the work that can be completed during the sprint. This process requires a clear understanding of the team’s capabilities and project priorities.

Backlog elements selection

Choosing which backlog items to include in a sprint is a strategic process.

The team, headed by the Product Owner, must take into consideration various factors, such as the urgency of the user stories, their importance to the overall project, and their feasibility within that project’s time and resource constraints. The selected elements become part of the Sprint Backlog, a subset of the larger project backlog.

Project backlog management

As we have already discussed, the project backlog is not static; it is a living document that must be constantly updated and refined.

During a sprint, new information may come to light that requires adding new elements to the backlog or re-evaluating existing priorities. The Product Owner is responsible for keeping the backlog up-to-date, always reflecting current project and stakeholder needs.

A crucial aspect of backlog management is the active involvement of the team. Team members should be able to express their thoughts and feedback on backlog items, contributing to their definition and prioritization.

This collaborative approach increases the backlog’s effectiveness and improves team morale and commitment.

At the end of each sprint, the team should revise the completed work and get ready for the following one. This includes analyzing backlog elements that have not been completed and their possible inclusion in the next sprint.

This ongoing review and planning process ensures that the team remains focused and aligned with the project’s long-term goals.

Preparing for the next sprint

After a sprint is completed, allocating time to preparing for the next one is fundamental. This step is critical to maintain momentum and ensure that the project continues to progress efficiently and in a focused manner.

Let’s take a look at some key steps to effectively prepare for the next sprint.

1. Review of the ended sprint

It begins with an extensive review of the recently concluded sprint. This includes an analysis of what was completed, what was not accomplished, and the reasons for delays or obstacles. This analysis helps identify areas for improvement and lessons learned that can be applied in future sprints.

2. Project backlog update

Based on the review, update your project backlog. Remove or edit items that are no longer relevant and add new tasks or requirements that have come to light. Make sure the backlog reflects the current priorities and needs of your project.

3. Next sprint planning

With your updated backlog, the planning for your next sprint begins.  

This process should involve your entire team, ensuring the sprint goals are clear, realistic, and aligned with stakeholder expectations. Determine which backlog elements will be covered and define clear, measurable goals for the following sprint.

Ensure each team member understands the expectations and their role in achieving these goals.

4. Foster communication and collaboration

Emphasize the importance of open communication and collaboration within your team. Promote sharing of ideas, concerns, and feedback to improve the work process and team effectiveness constantly.

Twproject: the ultimate solution for your project backlog

Within the agile project management scenario, choosing the right tool to manage the backlog is crucial. 

Thanks to its dedicated functionality, Twproject stands out as an essential tool for agile backlog management.

It features a user-friendly UI streamlining backlog management, allowing users to easily add, edit and prioritize elements.

The platform fosters collaboration and effective communication within the team, which is critical to keeping everyone aligned on backlog priorities. It also supports progress tracking and provides detailed reports, helping project managers monitor project status and team efficiency.

Its integration with agile methodologies makes it especially suitable for backlog management in dynamic environments, while its support and security features ensure data protection and reliable support. 

Twproject excels not only in project backlog management but also in product backlog support. This helps project managers and teams get a holistic picture of product needs and priorities, making it easier for long-term strategic planning and agile adaptation to evolving market and user needs.

Ultimately, creating and managing an effective project backlog is essential to success in agile project management.

A well-maintained backlog and careful sprint planning empower project managers and their teams to successfully navigate the complexities of projects, maintaining a clear focus on objectives and ensuring that each step is aligned with the overall project vision.

Project managers can lead their projects to remarkable results with the right combination of tools, strategies, and team collaboration.

Project monitoring plays a vital role in the decision-making processes of a project manager.

However, despite being an often overlooked method, if put into practice, project monitoring can help the project manager and his team to foresee potential risks and obstacles that if not treated could bring the project in the wrong direction.

What is a project monitoring plan?

 The monitoring plan of a project consists of keeping track and monitoring of all the data related to the project.

Thanks to this activity the Project Manager can always have control of the situation, identify potential problems, and put the corrective actions into practice. The monitoring plan assures that the project is within the field of application and respects the specified deadlines and budget.

In simple terms,

Project monitoring serves to supervise all project activities in order to make sure everything is as planned.

Monitoring is the fourth phase of the five phases of project management according to the PMBOK: starting, planning, execution, monitoring – precisely – and closure.

The monitoring phase should be performed together with the execution of the project, so that to have useful information on the project.

Project monitoring helps to keep track of project performance and progress using key performance indicators (KPIs) given during project planning.

The most important part of this phase is to identify when a change is needed, what the change entails and how to implement it by impacting the minimum possible on the project.

Why is the project monitoring plan important?

 When project managers make important decisions without verified data, it is like they move into a dark room they don’t know with their eyes closed.

Decisions will be based on very little or no evidence. The action could therefore not be very efficient and could only be a waste of time and resources.

This is why it is important to monitor projects diligently and use the data collected to reach rational and logical decisions.

ere are some basic questions to ask during the project monitoring phase:

• Are the activities performed as planned?
• Are there unintended consequences that arise as a result of these activities?
• Are there any elements of the project that need to be modified and if so which ones?
• What is the impact of these changes?
• Will these corrective actions lead to the expected results?

Automation in project monitoring

Automated tools and technologies can simplify the project monitoring process.

Most project managers have already adopted project management tools to delegate tasks and monitor their projects.

However, project monitoring is a complex process and here the project manager must always be actively involved.

The six advantages of project monitoring

Project monitoring offers six advantages:

1. Align progress with the plan

Monitoring project progress will help assess whether the project is in line with the original plan. Moreover, it will help to understand, if the project is going wrong, what corrective actions to apply.

2. Involvement of interested parties

Monitoring improves stakeholder engagement. If a problem or risk is detected too late, the project sponsor is often powerless. With regular monitoring and clear communication, it will be easier to deal with risks and contingencies.

3. Customer satisfaction

Open communication and feedback increase the likelihood that the final result will meet expectations, thus considering the project a success.

4. Team motivation and responsibility.

Team motivation will have fluctuations during the execution of the project. By monitoring progress and completing the milestones, the team will have clear goals for the project.

5. Management of external suppliers.

Communication is essential for any project, especially when working with external suppliers. Monitoring the performance of these resources will help meet key deadlines, manage the given budget, and take into account unexpected project planning delays. Similarly, it is necessary to share project changes with suppliers, so that they can update their internal plans and be available accordingly.

6. Continuous learning and improvement.

Monitoring represents an ideal opportunity for continuous learning and improvement, as well as planning and project execution. Once the project is finished, it is essential to document the lessons learned, a task that is easier if the project was monitored during the execution.

Methods and techniques for monitoring the project

Project monitoring starts already during the project planning phase.

During this phase, the project manager must decide which are the factors that will define the success of the project. He will also determine how to measure the target using key performance indicators (KPIs).

In this phase, it is also necessary to consult the team and the sponsor of the project.

The KPIs used to track and measure success can be, for example:

• Cycle time: the time required to complete an activity.
• Number of program adjustments: how often project planning has been changed.
• Budget variance: how much the actual budget varies from the project budget
• Number of errors: the number of times the job needs to be repeated.

Moreover, it is possible to keep track of customer satisfaction, planned working hours compared to the actual ones, etc.

Choosing KPIs is therefore the first piece of the puzzle.

 The 6 phases of project monitoring

1. Identify the goals of the project

The definition of the program goals begins with the answer to three questions:

• What problem is the project trying to solve?
• What steps are taken to solve this problem?
• How will the project team know when the project was successful in solving the problem?

Answering these questions will help identify what the project should do and how the team, and especially the project manager, will know if it was a success or not.

2. Define the indicators

Once the project goals have been defined, it is time to define the indicators to track progress towards achieving them. The indicators trace the progress of the project and help to answer the question “Are the activities implemented as planned?”

3. Define data collection methods and timing

Now it is time to decide the methods for data collection and how often the data will be collected. The method chosen will have important implications for project monitoring. In fact, a wrong method could lead to a wrong perception.

4. Identify roles and responsibilities during monitoring

It is important to decide who is responsible for collecting data for each indicator from the early stages of planning. Data management roles must be clearly decided so that everyone is on the same page.

5. Create an analysis plan and report templates

Once all the data has been collected, someone will have to draw up a table of results for internal review and external reporting. The project monitoring plan should therefore include details on what data will be analyzed and how the results will be presented.

6. Plan data disclosure

The last element of the monitoring plan describes how and to whom the data will be given. For example, a project team might want to review data on a monthly basis in order to make policy decisions and develop future work plans, while other stakeholders may want to review the data every quarter. These options should therefore be discussed with stakeholders in order to determine reasonable expectations for data review and to develop dissemination plans at the beginning of the project.

These six steps are all you need to set up a good quality project monitoring plan.

By consistently applying these steps, each project manager will be able to see how his project is going. Above all, he will be able to intervene promptly to correct the course when necessary, avoiding inappropriate failures.

For us, Twproject represents an efficient solution for monitoring the progress of projects and recording the hours worked, allowing us to save both in terms of costs and energy.

Read the interview with X-Brain and find out how they make the most of the monitoring tools offered by Twproject

The advantages of using a smart tool like Twproject

If setting all these parameters may seem an hard task, the effort of the project manager can be considerably simplified by using an advanced technological tool such as Twproject, which automatically sets the summary of these data and helps to monitor the progress of all the ongoing projects with simple graphs.

Twproject in fact provides constantly updated and customizable statistics on the progress of projects and, thanks to alerts, warns of critical situations.

Moreover, it ensures that you can keep track of the evolution of your project and go back to previous stages at any time, thanks to its very useful Project Timeline.

Based on the data entered through a guided procedure, Twproject will generate for each project progress diagrams which evaluate several parameters. Thus the project manager will always be aware of any delays in the planned phases, overruns of the established times and the planned budget, exceeding deadlines, overloading resources.

Among project management software, it is the only one to have such a detailed project view and this is definitively its main strength.

But that’s not all: Twproject offers such detailed analysis at each level of the project tree, therefore also for all the sub-phases inserted during the drafting of the WBS.

In short, at all levels of project management and for the various areas involved, it helps to have a complete view of the progress of ongoing projects.

Make a free trial and see how quick and simple it is monitoring projects in all their various aspects with Twproject.

International projects have assumed a core role in the logistics domain.

These projects, ranging from transporting goods on a global scale to managing complex supply chains, are a notable challenge for project managers.

Their successful management is not just a matter of logistics coordination – it is a delicate balance between cultural understanding, technical prowess, and business strategy.

This article will explore the dynamics of international projects in the logistics area, emphasizing specific challenges and strategies for tackling them successfully.

International project management overview

Why should project managers consider international projects separate from those on a local, regional, or national scale? The answer is simple: complexity.

Global projects involve more variables, including political, economic, social, and technological factors in the macro-environment in which they take place.

Furthermore, project managers have to deal with language and cultural barriers, requiring different approaches to management itself. This situation is comparable to trying to drive a car blindfolded: the environment is alien and can lead to confusion, communication problems, conflict, and stress.

A successful project depends not only on finishing on time and within budget but also on the team’s ability to smoothly navigate an ever-changing environment where variables such as international regulations, political instability, and cultural differences can affect every aspect of the project.

International project management is a field that requires deep understanding and strategic management because of its inherently complex and multifaceted nature. This kind of management is characterized by its crucial relevance in several key aspects that extend far beyond the boundaries of a local or national project.

Understanding the global setting

First, international project management requires an extensive understanding of the global setting in which they operate. This includes awareness of the political, economic, social, and technological dynamics that vary significantly from one region to another.

A project manager, for example, must be aware of how a country’s trade policies may affect logistics and procurement or how local regulations may impact project operations.

Cultural and linguistic diversity management

Another crucial aspect involves managing cultural and linguistic diversity. International projects often entail multicultural and multilingual teams, requiring clear communication sensitive to cultural nuances.

The skill to effectively navigate and manage these differences is crucial to avoid misunderstandings and to build a collaborative and respectful work environment.

Logistical and operational challenges

From a logistical and operational point of view, international projects offer unique challenges.  

Managing distributed teams in different time zones, planning international shipments, and complying with local laws and regulations require a much more sophisticated planning and coordination than local projects.

International project management: challenges in the logistics sector

Logistics comes with a unique set of challenges that require particular care and expertise by project managers.

If not managed properly, these challenges can bring significant delays, additional costs, and, in some cases, project failure.

Let’s take a look at some of them:

Coordinating complex supply chains

A major challenge is coordinating supply chains that are often located on multiple continents. This requires thorough planning and the skill to manage multiple suppliers, shipping options, and customs requirements simultaneously.

Complexity increases when labor practices, regulations, and logistics infrastructure variations in different countries must be factored in.

Here is how a project manager can successfully tackle this challenge:

1. Mapping

• Begin with an in-depth analysis of your supply chains, identifying all points of contact, key suppliers, and possible risk areas.

• Understand material flow and timing to avoid delays or unexpected interruptions.

2. Successful collaboration

• Have regular communication with all partners in the supply chain. Tools such as Twproject can make this communication easier.

• Ensure that all partners share the same goals and are aligned on the overall project strategy.

3. Real-time monitoring

• Use real-time tracking technologies to monitor goods movement along the supply chain.

• Define clear KPIs and monitor them regularly to assess supply chain performance.

4. Updated planning

• Keep your planning up to date with real-time supply chain information. Twproject, for example, provides a quick and effective way to make changes.

• Prepare contingency plans and standard operating procedures to deal with critical situations or crises in the supply chain.

5. Risk Management

• Identify potential risks along the supply chain and develop specific mitigation plans.

• Collaborate with local experts: when needed, get local experts involved who understand the nuances of laws and business practices in different regions.

6. Adaptability and flexibility

• Be ready to adapt to sudden changes or unforeseen situations. Flexibility is essential in managing global supply chains.

• Gather feedback from your supply chain constantly and learn from previous mistakes to improve future operations.

7. Planning and time management

Planning and time management are especially challenging in international settings. Project managers must coordinate activities while considering different time zones and local holidays, as well as managing client and stakeholder expectations for delivery times and project deadlines.

Project manager skills in international project management

In international project settings, the role of the project manager is crucial.

As we have observed, these professionals must not only manage the technical aspects of the project but also navigate through all sorts of challenges.

Let’s explore what skills a project manager who manages international projects must possess:

– Complexity management

Complexity is an intrinsic part of many projects, both large and small.

Project managers must be able to manage complexity to ensure project success effectively.

These skills include:

• Managing multiple aspects of a project: They must be able to keep an overall view of the project, even when managing multiple activities and stakeholders.
• The skill for anticipating and mitigating risks: PMs must be able to identify and manage potential risks before they can negatively impact the project.
• Knowing how to adapt quickly to change: You need to be prepared for unexpected changes, such as changes in project requirements or unforeseen events.
• Effective problem solving: Project managers must identify and solve problems swiftly and efficiently.

 – Leadership and strategic vision

PMs must also have a strong leadership and strategic vision. This includes:

• The skill of clearly defining project objectives: Project managers must clearly communicate project goals to all stakeholders. For example, a project manager leading a new product development project must clearly communicate the product vision to all team members and explain why the product is important and how it will get a foothold in the target market.

• The skills to devise realistic plans:  Project managers must be able to develop realistic plans that consider available resources and constraints. For example, a project manager leading a corporate restructuring project must be able to develop a realistic plan that considers financial and time constraints, identify potential risks, and develop strategies to mitigate them.

• The ability to ensure that the team is aligned with the overall scope: Project managers must motivate and inspire the team to pursue project goals. They need to know how to foster a positive and collaborative work environment where everyone feels valued and involved.

– Communication and negotiation skills

Communication and negotiation skills are key.

Leadership in an international context also requires cultural sensitivity and the skill to motivate and lead diverse teams.

Project managers must communicate clearly with teams, suppliers, and stakeholders, often in different languages and cross-culturally. Thus, it is essential to know how to negotiate contracts, settle conflicts, and present information in an understandable way to all project participants.

– Relationship management

Relationship management is also a crucial concern. Positive relationships must be built and nurtured with a wide range of people, from internal teams to external suppliers and customers in different parts of the world, and knowing how to resolve conflicts.

Understanding and respecting cultural diversity is essential to creating a collaborative and respectful work environment.

Twproject the perfect solution for managing complex projects

Twproject stands out as a suitable solution for international projects thanks to its advanced features and user-friendly UI. Let’s take a look at some of its features:

• The software offers customizable features that can be tailored to fit different project sizes and complexities, making it a flexible tool for any type of international project.
• Twproject excels at resource management, allowing project managers to allocate and monitor resources efficiently. This is particularly valuable in international projects where resources may be spread across different geographic locations and time zones.
• The software makes it easier for globally distributed teams to communicate and collaborate. Features such as integrated messaging, message boards, and document-sharing tools ensure that all team members are always up-to-date and able to collaborate effectively despite physical distances.
• This software offers advanced monitoring and reporting tools that help project managers keep track of project progress in real-time. These tools are crucial for quickly identifying problems or delays and making informed decisions based on accurate data.

Ultimately, international project management comes with unique challenges; however, with the right tools, these challenges can ultimately become opportunities for success.  

Twproject adoption is a significant step toward more effective, efficient, and collaborative project management, enabling project managers and their teams to achieve their goals with greater confidence and success.

The feasibility study is an essential step before giving the green light to a project that could cost large sums of money.

This in-depth analysis is often requested ‘from the top’ of the organisation to ensure the feasibility and sustainability of the project.

First of all, the feasibility study determines if the project is likely to succeed and if it may or may not be an opportunity for the organization.

The feasibility study is generally conducted before undertaking any initiative concerning a project, including planning. It is one of the fundamental factors, if not the most important, which determine whether the project should be carried out or not.

Although project managers are not necessarily the ones who conduct the feasibility study, they can still act as reference persons during this phase.

Moreover, project managers can use the feasibility study to understand the parameters of the project, the business goals and the risk factors involved.

What is a feasibility study?

Specifically, a feasibility study is used to determine the feasibility of an idea, for example to ensure that a project is legally and technically feasible as well as economically justifiable.

The feasibility study says if a project is worth the investment. For example, if a project requires too many resources, this prevents those particular resources from performing other tasks.

In general, failure to use those resources for the time necessary to carry out the project may also cost more than the organization could earn from that particular project.

A well-designed feasibility study should therefore offer a series of parameters that a Project manager could define as essential for the complete evaluation of a project.

We can start from a historical basis of the activity or project, including the description of the product or service, accounting statements, details of operations and management, market research and policies, financial data, legal requirements and obligations taxes, potential risks and possible alternative solutions. Nothing should be left to chance.

Generally, these studies precede the technical development and implementation of the project.

In this context, the technical feasibility project plays a crucial role, as it assesses the technical feasibility of the project in terms of resources, skills and available technologies.

Five feasibility areas of the project

A feasibility study evaluates the potential success of the project. Perceived objectivity is therefore an important factor in the credibility of the study for potential investors and stakeholders.

There are five areas that relate to the feasibility of a project:

Technical feasibility

This evaluation focuses on the technical resources available to the organization.

It helps organizations determine if technical resources meet capabilities and if the technical team is able to convert ideas into operating systems. The technical feasibility also involves the evaluation of hardware, software, and other technological requirements.

Economic feasibility

This evaluation usually involves a cost / benefit analysis of the project, helping organizations to determine the feasibility, costs, and benefits associated with a project before financial resources are allocated.

Legal feasibility

This evaluation examines whether any aspects of the project can go against legal requirements.

Operational feasibility

The operational feasibility evaluation involves carrying out a study to analyze and determine whether and to what extent the needs of the organization can be met by completing the project.

The operational feasibility studies also analyze how a project plan meets the requirements identified in the analysis phase.

Feasibility planning

this evaluation is the most important for the success of the project. A project will fail if it is not completed in time.

In the feasibility planning, an organization estimates how long it will take to complete the project successfully.

Once these areas have been examined, the feasibility study makes it possible to identify any constraints that the proposed project could face, including:

• Internal constraints: technology, budget, resources, etc.
• Internal business constraints: financial, marketing, export, etc.
• External constraints: logistics, environment, laws and regulations, etc.

Benefits of a feasibility study

The importance of a feasibility study is based on the organizational desire to guarantee an excellent job before using resources, time, or budget.

A feasibility study could reveal new ideas that could completely change the purpose of a project.

It is better to do this analysis in advance, rather than being halfway and understanding that the project will not work.

Here are some key advantages of a feasibility study:

• Improves the attention and motivation of the project team
• Identifies new opportunities
• Restricts commercial alternatives
• Identifies a valid reason to undertake the project
• Improves the success rate by evaluating multiple parameters
• Helps the decision making process on the project
• Identifies the possible reasons for not proceeding

How to conduct a feasibility study

Anyone who conducts a feasibility study must follow several steps. These actions include:

• Preliminary analysis: before proceeding with the actual feasibility study process, many organizations will conduct a preliminary analysis, a sort of project pre-selection. The preliminary analysis aims to discover insurmountable obstacles and risks that would make even a feasibility study useless. If important blocks are not discovered during this analysis, it is possible to proceed with the more detailed feasibility study.
• Define the scope: it is important to outline the scope of the project in order to be able to determine the scope of the feasibility study. The scope of the project will include the number and composition of both internal and external stakeholders. Moreover, it is important not to forget to examine the potential impact of the project on all areas of the organization.
• Market research: no project can be undertaken without this analysis. Those who conduct the feasibility study will deepen the existing competitive landscape and determine if there is room for the project within that market.
• Financial evaluation: the feasibility study will examine the economic costs related to the project, including the equipment or other resources, the hours of work, the proposed benefits of the project, the associated financial risks, and the potential financial impact in case of failure of the project.
• Alternative solutions: if any potential problems should emerge during the study, alternative solutions will be examined in order to ensure the success of the project.
• Reassessment of the results: a reassessment of the feasibility study is essential, particularly if time has passed since it was first undertaken.
• Go / No-go decision: this is the final step of a feasibility study. In short, here it is decided whether the project can be started (go) or not (no-go).

In conclusion, it must be remembered that a feasibility study is more a way of thinking than a bureaucratic process.

As the scope of the project grows, it becomes increasingly important to document the feasibility study, particularly if large amounts of money are involved and / or if the delivery is critical.

The feasibility study must not only contain sufficient details needed for the operational phase of the project. It should also be used for comparative analysis at the end of the project.

It will be at this stage that a project manager will analyze what was produced compared to what was initially proposed in the feasibility study. The smaller the gap, the greater the professionalism of those who drafted the study.

Ready to do a proper feasibility study? Try Twproject’s Gantt

Thanks to Twproject interactive Gantt, carrying out a feasibility study will be much simpler, because you will be able to follow every phase of the process. It will be easier to attach all the necessary documentation to the project, monitor and evaluate results.

Thanks to resource load balancing you will be able to highlight any bottlenecks and tack action before the start of the entire project.

So why not try? Twproject offers you a free 15-day trial, with which you can test the feasibility of your projects. You will be guided by our support team for any technical or conceptual doubt.

Knowledge management in project management has become a key mainstay for successful projects.

But what is it exactly?

It is a systematic process for collecting, organizing, and sharing information and knowledge within an organization.

This process helps project managers make informed decisions and improve their teams’ efficiency.

Benefits of Knowledge Management in Project Management

Implementing knowledge management strategies yields many benefits, including workflow optimization, corporate knowledge preservation, and the ability to generate new knowledge.

In the case of project managers, it means having access to the information they need at the right time, thereby improving decision-making and team effectiveness.

Adopting effective knowledge management strategies offers many significant benefits that can transform the way projects are managed and brought to success. Here are some of the key benefits:

• Improved decision-making process:

Access to relevant information: Knowledge management provides project managers quick and easy access to crucial information, reducing time spent searching for data.

Data-driven decisions: Having a broad knowledge base at hand, project managers can make more informed decisions based on historical data, trends, and analysis.

• Operational efficiency:

Reduced search time: An effective knowledge management system cuts the time teams spend searching for information, allowing them to focus on more productive tasks.

Process standardization: Sharing standard operating procedures and best practices helps standardize processes, reducing errors and inconsistencies.

• Risk management:

Error prevention: Learning from experience and sharing this knowledge helps prevent recurring mistakes.

Proactive risk identification: Collective knowledge can help identify potential risks before they become critical.

• Innovation and growth:

Incentive for innovation: Sharing ideas and solutions can foster innovation within teams.

Professional development: project managers and their teams can take advantage of continuous learning, improving their skills and knowledge.

• Collaboration improvement:

Knowledge sharing: Knowledge management tools make it easy to share information among team members, regardless of their geographic location.

Positive business culture: Knowledge sharing helps establish a corporate culture based on collaboration and mutual support.

• Long-term sustainability:

Corporate knowledge preservation: Knowledge management helps to retain critical knowledge within the organization, even when employees leave the company.

Adaptability and flexibility: Organizations that manage knowledge effectively adapt better to market changes and new challenges.

Knowledge Management Techniques in Project Management

There are many knowledge management techniques in project management that project managers can employ to improve the effectiveness of their projects.

These techniques not only make information management better but also optimize collaboration and innovation within teams.

Let’s take a look at some of them:

Knowledge collection and preservation

One of the major challenges involved in knowledge management is to collect and store knowledge effectively.

• Procedure Operative Standard (SOP): SOPs are comprehensive documents that outline processes and practices for performing specific tasks. In project management, SOPs help ensure consistency and efficiency by providing clear direction on how to deal with recurring tasks.
• Guidelines and Reports: Guidelines provide general instructions on how to perform particular activities. By creating detailed guidelines and regular reports, experiences and lessons learned can be documented. These documents become treasured resources for project managers and teams, providing insight and references for future projects.
• Databases: Use centralized databases to store documents, reports, guidelines, and other important information. This ensures that knowledge is easily accessible and efficiently organized.

Knowledge sharing

Knowledge sharing is an important step in knowledge management. Knowledge sharing empowers people to learn from each other, improve their skills, and collaborate more effectively.

• Meetings and presentations: Hold regular meetings and presentations where team members can share experiences, ideas and best practices. This promotes a continuous learning environment and fosters knowledge sharing.
• Training courses: Implement training programs that allow team members to learn new skills and share their know-how. This improves individual skills and enriches the team’s knowledge pool.
• Community of practice: Create communities of practice within your organization where professionals can share ideas, solutions, and common challenges. In these communities, people meet to share knowledge and experiences on a particular topic. They can be used to share tacit knowledge, which is often more difficult to document and share.

Knowledge use

Shared knowledge should be used to improve processes, make decisions, and solve problems. Project managers can use collected and shared knowledge to:

• Improve planning: Use knowledge gained to hone project planning processes. Analyze historical data and lessons learned to anticipate challenges and identify best practices.
• Improve execution: Apply knowledge during project execution to optimize resources, manage time, and improve work quality.
• Improve control: Use knowledge management systems to monitor progress and adapt real-time strategies. This helps keep projects on track and respond promptly to deviations.

By integrating these techniques, project managers can become better at managing their projects and build a solid knowledge base that will benefit their entire organization.

This proactive approach to knowledge management ensures that information is retained, shared, and leveraged effectively, leading to more informed decisions, more successful projects, and a more collaborative and innovative work environment.

Looking ahead: knowledge management and Technological innovations

In the dynamic world of project management, looking ahead means understanding how knowledge management is intertwined with technological innovations.

Technological progress redefines how knowledge is collected, stored, shared, and used, leading to a significant evolution in project management practices.

AI and machine learning integration

Artificial intelligence (AI) and machine learning are now revolutionizing knowledge management.

These technologies can analyze big data, identify patterns, and provide valuable insights that might otherwise be missed.

What this means for project managers is more informed decisions based on predictive and prescriptive analytics. For example, AI can predict project delays by analyzing historical trends and helping managers mitigate risks before they occur.

Cloud Computing and collaboration

Cloud computing has transformed the way information is stored and shared. Cloud-based platforms provide easy and secure access to information, regardless of geographic location.

This makes it easier for teams distributed globally to collaborate in an unprecedented way, enabling project managers to manage projects more flexibly and efficiently. Moreover, the cloud offers scalability and agility, enabling organizations to adapt quickly to changing business needs.

Big Data and analytics

Big data and analytics tools are now playing a crucial role in providing thorough, real-time insights.

These tools enable project managers to analyze vast data sets to identify trends, assess project performance, and make evidence-based decisions. Data analytics can also help predict potential problems and identify opportunities for constant improvement.

Automation and efficiency

Automation is becoming ever more important in knowledge management. Automated tools like all in one CRM can handle repetitive duties, freeing project managers and their teams so they can focus on more strategic tasks.

This improves efficiency and the quality of work, reducing errors and inconsistencies.

Implementation of connected and smart workplaces

Lastly, the evolution toward connected and smart work environments is changing how teams interact and collaborate. Technologies such as augmented reality, virtual reality, and user-friendly UI are forging new ways of interacting with information and among team members, making collaboration more engaging and productive.

Still, the future of knowledge management in project management is inherently related to technological innovations. These technologies empower project managers with more advanced tools and open new frontiers for efficiency, innovation, and collaboration.

Adapting to and embracing these technologies will be crucial to staying competitive and managing projects successfully in the digital era.

Twproject’s Role in Knowledge Management

Twproject stands out as a key solution in the applied knowledge management environment. This tool is tailored to meet the specific needs of project managers, offering a flexible and integrated platform that facilitates the collection, sharing, and use of knowledge within organizations.  

Here’s how Twproject plays a crucial role in this domain:

Iniziare con Twproject significa fare un passo fondamentale verso una gestione del knowledge management più efficace e integrata. 

Questi vantaggi si traducono in progetti più riusciti, team più soddisfatti e clienti più felici.

The PERT diagram is a project management tool used to plan, organize and coordinate activities within a project.

PERT stands for “Program Evaluation Review Technique“, a methodology developed by the Navy in 1957 to manage the Polaris submarine missile program.

The PERT method focuses on the important dates and deadlines of a project, known as milestones

The most important milestone is, without a doubt, the final expiration date, when the project must be complete.

The Pert Diagram or three-point estimation

The project manager identifies the activities that must be performed in sequence, known as serial or dependent tasks, and those that can be performed simultaneously, known as parallel or concurrent activities.

In the PERT diagram, the project is plotted on a flowchart where the nodes are deadlines and the arrows represent dependent activities.

Dependencies are represented by linked paths that move from left to right. A traditional PERT analysis provides on average three different deadlines: the shortest, that is the optimal estimate, the most realistic, that is the probable estimate, and the pessimistic estimate.

For this reason the PERT is also called “three-point estimation“.

The exact formula for defining deadlines is:
(optimistic time + (4 times more likely) + pessimistic time) / 6

It is also possible to track PERT analysis results on a Gantt chart, which shows durations and dependencies.

The PERT diagram can help you during the project planning phase and the Gantt chart can plot time as the project progresses.

In simple words, a PERT diagram is a graphical representation of a project program.

Some of the advantages of the PERT diagram include:

• Making uncertain deadlines foreseeable;
• Defining a clear order to complete the activities;
• Making dependencies explicit.

But there is an important disadvantage: if the calculations are inaccurate, any delay will create a block or a slowdown that will inevitably affect the final delivery date.

However, if you are looking to have a structure and reduce uncertainty in project planning, the PERT diagram will help to establish important milestones and the activities necessary to achieve them.

How does a PERT diagram look like

Planning is shown as a network diagram. The activities are represented by nodes, with a circular or rectangular shape, which define the most important activities or milestones. Instead, the vectors or directional lines illustrate the sequence of activities.

The direction of the arrows on the lines indicates the sequence of tasks.

The pert – program evaluation and review technique – is sometimes preferred over the Gantt chart, because it clearly illustrates the dependencies of the activities.

Both tools are often used in the project management of activities.

A network diagram shows the sequence of activities and milestones. However, it also illustrates how priorities and milestones are linked, ie their temporal succession.

It is therefore also supportive in the development of the critical path method.

On the other hand, the PERT diagram can be much harder to interpret, especially in the case of complex projects.

One of the challenges to be faced with this diagram is that many information is shown for each activity, including:

• Activity name
• Expected and effective start
• Estimated Duration
• Name of the responsible person

This level of detail can quickly get out of hand when dealing with long and complex projects. We are talking about projects that have a high volume of activities with several phases and pivotal points.

One suggestion is to use a PERT diagram with the activities and milestones related to specific teams and / or departments, thus preventing the PERT chart from becoming overly complicated.

What are the pros and cons of PERT diagrams?

PERT diagrams have advantages, but managers must also be aware of the disadvantages when evaluating their use.

Here are the advantages:

1) Activity analysis

A project manager displays information on the likely completion of a project respecting time and budget costraints, displaying PERT activities and events independently and in combination.

For example, the implementation of a software requires the completion of critical tasks such as hardware installation, programming, system testing and training of users. Using a PERT diagram, a project manager can evaluate the completion time and the resources needed for each of these activities.

2) Coordination of the department and members

The PERT analysis improves planning and decision making by integrating and presenting data from multiple departments.

Collecting qualitative and quantitative data from multiple sources also helps to coordinate project activities and improves communication between departments.

PERT identifies the responsible departments and the role of each subject in the project.

The visibility of the areas of responsibility encourages the commitment of the direction towards the project. In addition, the PERT diagram reveals interdependencies of activity and contributes to the development of a general plan that provides a current view of business operations.

3) What-if Analysis

The PERT diagram requires that the project activities are sequenced in a network under a set of rules that specify critical paths (critical path method).

The critical path is the longest sequence of activities and events – milestone – in the project and determines the number of days needed for completion.

A What-if analysis identifies possibilities and uncertainties related to the project activities.

Various combinations of activities are attempted and the most useful possibility is selected, minimizing the project’s surprises and waste.

The What-if analysis also highlights the activities with the greatest risk that require careful monitoring during the project.

Now let’s move on to the disadvantages of using a PERT diagram:

1) Subjective analysis

The PERT method requires the identification of the activities of a new project and the arrangement of the activities in time sequence.

As a result, the process of collecting and analyzing data is subjective. This subjectivity can result in a PERT diagram with equivocal estimates of both time and cost.

The data may not be reliable as they reflect the judgment of the project participants who provide input to the analysis.

Companies base effective decisions on relevant information that is often historical. Estimates of project time and resources, as well as the probability of timely completion, in this case, may therefore not be reliable.

2) The focus is on time

The PERT method is an analysis of the time network that determines the need for labor, materials and capital goods for the individual activities of the project.

Cost estimates are developed for each activity in the network. However, PERT is primarily a time-focused method.

The diagrams specify the time required to complete each project activity and the tasks that must be completed to meet the project completion date.

3) Intensive resource investment

A PERT analysis requires a detailed study of the project activities and the feedback of many people from different organizations.

Moreover, the PERT is a complicated method to implement, especially for beginners. The high intensity of the work required to execute a PERT diagram can make this type of method expensive.

The PERT diagram therefore has advantages and disadvantages, and the project manager has to evaluate whether its use will be necessary or not for the project.

However, it is still a method that will certainly help in the planning and management of the project and that will bring a certain amount of extra security.

How to create a Pert diagram with Twproject

Twproject stands out in the project management software landscape for its ability to simplify the creation and management of Pert diagrams.

• Activity definition: start by identifying all the key activities of your project. Twproject allows you to define and organise the work of your team, making it easier to plan and prioritise activities.
• Diagram structuring: Use Twproject’s planning tools, such as the Gantt diagram, to structure your Pert diagram. You can represent activities as nodes and define dependencies between them.

• Resource management: you can easily monitor workload and resource planning. This helps you identify who is overloaded or underemployed and make adjustments accordingly.
• Analysis and monitoring: analyse the critical path of your project and monitor progress in real time in order to proactively identify and manage risks.
• Collaboration and updates: keep your team informed and involved. Twproject facilitates collaboration and communication within your team, allowing you to share updates and changes to the Pert chart efficiently.

Con Twproject puoi creare diagrammi di Pert efficaci e gestire complessivamente i progetti in modo più efficiente, sfruttando una suite di strumenti integrati per la pianificazione, il monitoraggio e la collaborazione.

Change management is a critical process for any project manager.

Even the most thoroughly planned projects are subject to internal or external change. In such cases, managing change effectively is paramount to ensuring project success.

A project manager’s understanding and mastery of the art of change management is a highly desirable skill and an absolute necessity

This article is intended to explore in depth how to effectively manage project change, addressing its challenges and seizing its opportunities.

We will analyze the principles of change management, the steps involved in the process, the techniques that can be used, and the role of the project manager.

Key principles of change management

Being successful in change management comes down to understanding and applying some core principles.

These principles provide a robust foundation to build and guide the change process, especially in complex contexts such as business.

1. Understanding change: the first step involves understanding the change you want to implement. It is important to pinpoint the factors that made it necessary, its goals, and its implications.

The factors that can lead to change include:

• Changes in the external environment:Changes in economic, social, political, or technological conditions may involve a change in the organization.
• Efficacy and efficiency:Change may be necessary to improve the effectiveness and efficiency of your organization.
• Innovation:Change can be helpful in introducing new ideas and technologies.

Having first identified the factors that led to the change, it is important to define the objectives of the change. Goals must be clear, specific, and measurable.

2. Involving people:Change is easier to accept if people are involved in decision-making. It is critical to communicate clearly and transparently, involving people from the very beginning.

Involving people can be achieved through:

• Effective communication:It is important to communicate clearly and transparently, involving people from the beginning of the process.
• Participation:It is critical to enable people to be involved in decision-making by providing them with the information and tools they need to make informed decisions.

3. Providing support:Change can lead to stress and uncertainty. Therefore, it is important to provide people with the support they need to handle change on a practical and emotional level.

Practical support may include:

• Training:It can help people build the skills and attitudes needed to tackle change.
• Tools and resources:It is important to provide people with the necessary tools and resources to carry out their work effectively.

Emotional support may include:

• Active listening:It is important to listen to people’s concerns and provide them with emotional support.
• Acknowledgement: Acknowledging people’s efforts and providing them with positive feedback is crucial.

Change Management process stages

The change management process can be broken down into distinct phases, each with specific goals and activities.

This structure helps project managers to effectively navigate through change, ensuring that every aspect is carefully considered and managed.

1.    Preparation for change

The change preparation phase is the critical first step in ensuring the success of any change project. At this stage, it is necessary to:

• Needs assessment: Understand why change is necessary and what problems it is intended to solve.
• Goal setting: Set clear and measurable goals for change.
• Stakeholder analysis: Learn who will be affected by the change and how.
• Leadership preparation: Ensure leaders and managers are on board and understand their role in driving change.

2.    Change planning

At this stage, the change management team must devise a thorough plan to guide the change through its execution.

• Strategy development: Create a comprehensive plan with a timeline, resources needed, and specific actions.
• Plan communication: Share your plan with all stakeholders, ensuring transparency and understanding.
• Training and resources: Plan the necessary training and allocate resources to support change.

3. Change implementation

The change implementation phase is where the change plan comes to life. At this stage, it is necessary to:

• Plan execution: Implement the actions outlined in the plan.
• Resistance management: Monitor and actively address any resistance to change.
• Continuous support: Provide ongoing support to employees during the transition.

4. Communication throughout change

Communication throughout change involves:

• Regular updates: Provide regular updates on progress and any changes to the plan.
• Feedback channels: Set up channels to get feedback from employees and other stakeholders.
• Reassurance and motivation: Keep spirits high through positive and reassuring communications.

5. Support and training

The support and training phase is vital to the success of the change. At this stage, it is necessary to offer:

• Targeted training: Offer specific training to help employees learn the skills needed for the new environment.
• Psychological support: Provide support to manage the emotional aspect of change.
• Skills adaptation: Ensure employees are appropriately prepared for new roles or responsibilities.

6. Monitoring and evaluation

This phase is key to ensuring that change is effective and sustainable:  

• Impact evaluation: Measure the impact of the change concerning the established goals.
• Feedback collection: Collect feedback to understand how change is perceived and experienced.
• Adjustments and improvements: Make changes to the change plan based on the results and feedback.

7. Change strengthening

This is the final stage of the change management process. The change management team must ensure that change becomes part of the corporate culture. This can be achieved through various activities:

• Incorporation into culture: Make sure that change becomes part of the corporate culture.
• Celebrating achievements: Acknowledge and celebrate successes to strengthen change.
• Continuous learning: Leverage the experience to improve future change management processes.

Effective techniques in Change Management

To successfully sail through the change management process, it is crucial to use effective techniques that smooth the transition and reduce resistance.

These techniques help ensure that change is not solely implemented but also accepted and sustained over the long term.

1.Stakeholder Analysis

• Stakeholder Mapping: Identify all stakeholders and estimate their level of influence and interest in the change.
• Engagement Strategies: Develop targeted strategies to engage stakeholders based on their position and impact on change.

2.Risk Management

• Risk identification: Recognize any potential risks involved in change, both at the operational level and at the level of staff acceptance.
• Mitigation plans: Develop plans to mitigate identified risks, including alternative scenario planning.

3.Training and Development

• Training programs: Create and implement training programs to develop skills needed to adapt to the new environment or system.
• Skill development: Focus on continuously developing employees’ skills to ensure they are prepared to manage future changes.

4.Regular Feedback

• Open feedback channels: Set up open and accessible feedback channels for employees to express their concerns and suggestions.
• Evaluation and action: Regularly gauge the feedback received and act on it to continuously improve the change process.

5.Strategic communication

• Communication plans: Develop plans that articulate when, how, and what to communicate to each stakeholder group.
• Custom messages: Tailor messages according to the audience to ensure their relevance and effectiveness.

6.Support and Counseling

• Mental health care: Provide mental health support to help employees deal with change-related stress and anxiety.
• Professional counseling: Provide access to professional counseling to address specific change-related problems.

7.Using change management tools

• Project Management software: Use project management tools such as Twproject to plan, monitor and communicate effectively throughout the change process.
• Automation and Reporting: Leverage technology to automate processes and deliver detailed reports on change progress.

By integrating these techniques into their change management process, project managers can substantially increase the odds of a successful change execution.

The key role of the project manager in change management

In the change management scenario, project managers play a pivotal role, serving as the hub between the technical and human needs of the project. This professional figure not only guides the project through its technical phases, but also manages the human aspect of change, ensuring that the whole organization accepts and supports the transition.

What distinguishes an effective project manager is visionary leadership, having a clear understanding of the goals of change, and the skills to communicate them effectively to the team and stakeholders.

This inspirational leadership is critical to infusing confidence and motivation, leading by example, and showing a firm commitment to change.

Communication plays a major role, requiring advanced skills to convey clearly the goals, benefits, and impact of change.

Also, the active involvement of team members and stakeholders is crucial, promoting participation and gathering feedback for inclusive change management.

Dealing with resistance and conflict is also critical. Project managers must identify and understand the causes of resistance to change among team members, employing conflict resolution techniques to turn resistance into opportunities for growth.

Training and ongoing support are indispensable to ensure the team receives the skills needed to adapt to new processes or technologies. Constant support helps manage team members’ concerns, ensuring their voice is heard and supported.

Continuous monitoring and adaptation of the change progress are crucial to assessing whether the strategies adopted are effective. Being ready to adapt to the change plan based on feedback and emerging circumstances shows flexibility and resilience.

Lastly, using project management tools like Twproject is key to effective planning, progress monitoring, and smooth communication. These tools help streamline processes, making change more manageable and less costly for the team.

Twproject: your ally in Change Management

Twproject is proving to be a key ally in the change management process, offering a comprehensive solution that supports project managers at every stage of change.

The versatile platform and its advanced features are designed to simplify change management, making it more efficient and less burdensome.

Through Twproject, project managers can provide a smooth transition, keeping the team aligned and focused on project goals.

The power to provide a clear understanding of progress, facilitate communication, and optimize resource management makes the change management process more manageable and less stressful for everyone involved.

Work packages, what are they and what relation do they have with wbs? That’s what we will discuss in this article.

A work package is a set of inter-related activities within a project.

These activities are grouped to create a sort of mini-project within a project.

Work packages, in short, are the smallest unit of work into which a project can be split during the work breakdown structure creation, the so-called WBS.

What are project Work Packages

A work package is generally established as a result of the following characteristics that activities may share:

• Type of work involved (i.e. Marketing, finance, etc.).
• Task Results
• Geographical location where said activities take place
• Time when the activities will be completed
• Technology or materials that will be used
• Team leaders in charge
• Specific stakeholders

By bringing related activities together, a work package becomes an element that is easier for the project team to understand.

Team members are thus able to see the connection between different work streams and focus on those that apply to them.

As part of a work breakdown program – work breakdown structure WBS -, using work packages delivers a greater sense of understanding because each block of related activities can be easily visualized.

To tell the difference between what is a work package and a true stand-alone project, you need to examine the outcomes.

Each work package is always just one element of something bigger, so its outcomes will be directly related to promoting the goals of the overall project.

Let’s use the following example: If you add a new feature to a technology product, such as project management software, there may be several work packages related to its development, including:

• Design
• Development
• Test
• Integration
• Roll out

Within each of these packages there will be a variety of different activities. However, by keeping related activities organized, it will become easier to communicate with lead teams and set milestones and deadlines to better manage the entire project’s critical path.

The use of work packages also provides a reference point for describing and managing the various metrics related to a project, such as:

• Budget: knowing how much is allocated to each area and how well this is being met.
• Deadlines: how well they are being met and whether some areas are causing more delays than others.
• Risks: what needs to be monitored to know where and how likely problems are to occur.
• Priorities: significance of different areas and what you need to focus on first.
• Stakeholders: knowing who needs to be kept up-to-date on different aspects of the business.

Why are work packages important?

By segmenting a project into work packages, the Work Breakdown Structures development becomes easier and project managers will have a greater level of control over the various tasks.

Other benefits include:

• Work packages enable simultaneous work by multiple teams on different components of a project. Each team follows tasks defined for that work package and completes them within the given deadline.
• When teams have completed their individual work packages, the entire project reunites seamlessly. The completion of a work package is often overseen by a specific person who may be the project manager himself or a specifically assigned supervisor.
• Even though costs are estimated at the activity level, these estimations are aggregated at the work package level, where they are measured, managed, and controlled.
• For each work package, direct labor costs, direct costs for material, equipment, travel, contractual services, and other non-personal resources, and associated indirect costs can be determined. Then, the individual costs of all work packages are aggregated to reach the authorized cost baseline or authorized budget for the project.

Work package performance measurement

A work package performance can be measured using the earned value management technique.

This integrates project scope, costs, and schedule measures to help the team assess and measure project performance and progress.

It involves preparing a baseline against which the performance of work packages can be measured for the duration of the project.

Earned value management develops and monitors three key dimensions for each work package:

• Planned value: the planned value is the authorized budget assigned to the work to be performed for the work package.
• Earned value: the earned value is the value of the work performed expressed in terms of the approved budget allocated to the work package.
• Actual cost: Actual cost is the total cost actually sustained and recorded for the performance of the work performed for a work package.

Work package preparation guidelines

When breaking down a WBS to the work package level, WBS nodes may be split to extreme levels, wasting time and making the project difficult to understand, manage, and adjust.

There are many factors to consider when deciding how far to decompose the WBS, however the most important are:

• Work packages should be small enough to estimate time and cost.
• The project manager and project team should be positive that the current level of detail provides sufficient information to proceed with the following tasks.
• Work packages should be small enough to be assigned to a single person or group that can be held accountable for results.
• Although this might differ from project to project, most project managers agree that the 8/80 rule can be applied to measure a work package. This rule says that no work package should be under 8 hours and over 80 hours.
• Work packages may reside at different levels in the WBS hierarchy. Project managers should not artificially force WBS into a structure where all work packages are at the same hierarchical level. This could lead to problems arising as the project progresses, such as forced details or lack of control where it is really needed.

Get Started

For project managers, the successful use of work packages is key as it allows them to easily differentiate and outsource tasks required to deliver a project, for this reason, having a project management software helping you is essential.

Twproject has allowed us to organize work subdivision in a simple way through the WBS, then planning the duration of the phases and the workload of each assignee by using the Gantt chart.

Read the interview with Gap Studi e Consulenze and find out how they effectively use the WBS for project planning

A software like Twproject could help you designing the WBS easily, deviding the project in work packages for enhancing delegation.

The most important benefit, however, is that work packages allow a major project to be segmented into more manageable parts so that neither the project manager nor the team is overwhelmed by the size of the project undertaken.

The analysis of the costs (and benefits) of a project, among all the possible techniques, is perhaps the most important for a Project Manager. Let’s try to see why.

When managing a project, it is necessary to make many important decisions.

Because of the high stakes involved, good project managers do not simply make decisions based on instinct. They prefer to minimize risk and act only when there is more certainty than uncertainty.

But how is this possible in a world with a myriad of variables and a constantly changing economy?

The answer is:

rigorously consult collected data with reporting tools, graphs and spreadsheets.

Project managers can then use this data to evaluate their decisions with a process called cost-benefit analysis of a project.

Smart use of cost-benefit analysis will help minimize risks and maximize profits for both the project and the organization in general.

What is a project cost analysis?

The cost analysis in project management was designed to assess the cost compared to the benefits in the project proposal.

This process begins with a list, which includes all the expenses of the project together with the benefits that will derive from it once the project will be successfully completed.

From this, it is possible to calculate the return on investment (ROI), the internal rate of return (IRR), the net present value (NPV) and the amortization period.

The difference between the cost and the benefits will determine whether the action is worth it or not.

In most cases, if the cost is 50% of the benefits and the amortization period is not more than one year, it is worth taking action.

A cost-benefit analysis is a process that allows organizations to analyze decisions, systems, or processes or determine a value for intangible assets.

The model is built by identifying the benefits of an action and the costs associated with it and subtracting the costs from the benefits.

Once completed, a cost-benefit analysis will produce concrete results that can be used to develop reasonable conclusions about the feasibility and / or opportunity that represents a specific decision or situation.

The purpose of the cost-benefit analysis

The purpose of the cost-benefit analysis is to have a systemic approach in order to understand the advantages and disadvantages of various solutions through a project, including transactions, activities, business requirements, and investments.

Cost-benefit analysis offers options and is the best approach to achieve a goal while saving on investment.

There are two main purposes for using a cost-benefit analysis for a project:

• To determine if the project is valid, justifiable and feasible, verifying if its benefits exceed the costs.
• It offers a reference base for comparing projects by determining which project benefits are greater than its costs.

The cost-benefit analysis process: 10 key steps

The process of cost-benefit analysis of a project is composed of 10 steps through which the convenience of the project can be established. Let’s see what they are:

• What are the goals of the project? Before you can decide if a project is worth, you need to have a clear and precise idea of ​​what it must accomplish.
• What are the alternatives? Before you can know if the project is the right one, you need to compare it with other projects and see which is the best one to follow.
• Who are the interested parties? List all project stakeholders.
• What measures will you use? You need to decide the metrics you will use to measure all costs and benefits.
• What is the outcome of costs and benefits? You need to know what the costs and benefits of the project are and map them over a significant period of time.
• What is the common currency? Here, we take all the costs and benefits and convert them into the same currency in order to make a real comparison.
• What discount rate will be applied? This will express the amount of interest as a percentage of the balance at the end of a certain period.
• How is the net present value of the project options? This is a measure of profit that is calculated by subtracting the current values ​​of the cash outflows from the current values ​​of incoming cash flows over a given period of time.
• Sensitivity analysis? This is a study of how the uncertainty of the output can be divided into different sources of uncertainty in its inputs.
• Final decision? The final step, after collecting all these data, is to make the most recommended choice according to the analysis.

Are there limitations to cost-benefit analysis?

Of course, there is always a risk inherent in any business, and the risk and uncertainty must be considered when evaluating the cost-benefit analysis of a project.

It is possible to calculate this with the probability theory. Uncertainty is different from risk, but can be assessed using a sensitivity analysis in order to illustrate how the results respond to parameter changes.

Overall the use of cost-benefit analysis is a crucial step in determining whether it is worth pursuing any project.

For projects involving small to medium capital expenditures and from short to intermediate (in terms of completion time), a thorough cost-benefit analysis may be sufficient to make a rational and well-informed decision.

For large projects with a long-term time horizon, cost-benefit analysis typically fails to justify important financial concerns such as inflation, interest rates, variable cash flows, and the present value of money.

Alternative methods of analyzing initial capital, including the net present value or internal rate of return, are more appropriate for these situations.

Unless you are extremely lucky, it will never be possible to get all the information needed to complete a cost-benefit analysis.

There will in fact always be gaps in information.

Cost analysis: the hypothesis method

One way to try to overcome these shortcomings is to use hypotheses about the missing information.

However, for the inexperienced project manager, hypothesis creation is one of the most terrifying aspects of cost-benefit analysis.

Here is an example: a cost-benefit analysis is conducted for a real estate investment project. There may be a case of not knowing what the maintenance costs will be in the future. What is known, however, are the types of maintenance fees that have been paid for similar properties in the past. You can then use some of those numbers to make an assumption.

In any case, care must be taken when using hypotheses. Factors do not always follow trends and even the smallest change in the hypothesis can produce totally different results.

In conclusion, cost-benefit analysis is a data-driven process and very often requires a sufficiently robust project management software to handle and distribute information.

If you haven’t tried TwProject yet, do it now! You will discover how simple it is to organize information and complete a cost-benefit analysis, thanks to its simple and precise project budget management.

Time management is one of the most important aspects in managing a project.

In order to estimate the time accurately, it is necessary to have a correct understanding of the two concepts of effort and duration.

What is effort

Effort is the number of units of work needed to complete a task.

It is usually expressed in hours, days or weeks worked.

Therefore, it calculates the number of hours of work needed to complete a task, i.e. the actual time spent working on the project.

In order to estimate the duration of a project, first we have to determine the effort.

Let’s make an example to simplify the concept: if you estimate about 30 hours of active work to complete a fence, the effort will be 30 hours.

Be careful, however, that this does not mean that the fence is ready within 30 hours – unless you plan to build it for 30 hours non-stop.

The duration is the total number of work periods (excluding holidays or other non-working periods) necessary to complete an activity, so in other words it is the total time needed to complete an activity.

The duration is usually expressed as working days or working weeks and depends on the availability and capacity of the resources.

For example, if you spend 3 hours a day working on the fence, the total duration would be 10 days (30 hours of total effort divided by 3 hours / day).

But if, for example, a friend helps every day, then you would have two resources working for 3 hours a day on the fence = 6 hours a day.

The duration in this case would therefore be 5 days (30 hours of total effort divided by 6 hours / day).

However, if the friend could only work 2 hours a day, the duration would extend to 6 days because the resources would only work for a total of 5 hours a day.

The total effort is always 30 hours, no matter if there is one, two or more people working on the project.

It is not possible to reduce the effort to 15 hours if two people work on the project, but it is possible to reduce the overall completion time.

The concept of Schedule Padding

The estimates represent one of the most critical and complex areas for a project manager.

It is never certain that these are correct and there is always the doubt that they may be mistaken for excess or defect, despite all the good will in formulating them.

The estimation techniques, such as the analogy or bottom-up estimations, can provide more or less reliable estimates, but all have the same problem: they depend on the capabilities of those who formulate them.

The concept of Schedule Padding means adding more time / value to the estimate, a sort of “pad” (hence the term Padding) that can soften the “fall” in case of unforeseen events or errors of evaluation.

When there is not enough information or experience to make a realistic estimate, it is very easy to fall into the “Padding” technique.

In other words, there is the tendency to increase, even exceedingly, the estimate of duration due to excessive prudence.

Clearly, if everyone in the company, including the project manager, uses this technique, the final estimate would be totally exaggerated and misunderstood.

So, how to avoid Schedule Padding?

In project management, it is advisable to first estimate the effort and after that duration.

The effort is the total estimated time for the realization of a task, of an activity. In other words, the total worklog dedicated to the activity.

The duration is instead the time interval required for the realization of the task / activity based on the availability of resources and the project calendar.

With respect to the 8 hours that correspond to the normal working day, the TenStep methodology considers productive only 6.5 hours.

This is also a value that should be kept in mind and that is not always considered during the scheduling of a project.

At Twproject, in our project management tools, we insert both project and routine activities, in order to have clear how much time each resource can really devote to its activities.

Start now with a correct scheduling

In Twproject you can insert every type of activity, from routine to projects, with work hours and unavailability.

Try Twproject!

Techniques to avoid Schedule Padding

There are several possible techniques to decrease the risk of Schedule Padding:

• Ask for the opinion of a disinterested professional regarding the project;
• Use the PERT method (Program Evaluation and Review Technique), also known as a 3-Point estimate, which provides a more optimistic, a more pessimistic, and a more probable estimate.
• Grant the time it takes for those who have to make the estimate without putting pressure or haste.
• Add extra time to the overall project, and not to every single activity.
• As previously mentioned, determine the effort first and only then the duration of the activities.

Not all collaborators have the same productivity and they do have different knowledge, skills and experience.

This is why the ability to make an estimate as well as the time needed to do it can vary.

Advice for a correct estimate of the effort

Everything starts from the estimation of the effort. So let’s see some tips to better identify it, subdiveded by category:

Basic effort estimates:

• Estimating is an open activity and should happen regularly during the project. The initial estimate will thus be increasingly deepened and gradually perfected.
• During the initial phase of a project, make sure that everyone agrees on what should be delivered and therefore estimated. Saying everyone, we mean the project manager and project team in the first place, but also executives and all project stakeholders.
• Involve experienced people in the analysis and estimation process and brainstorm with the people who will actually have to do the job. It is useful to have different groups of people giving an estimate to the same thing. If comparing the results shows a large disparity between the numbers, it means that the uncertainty on that specific activity, or on the project in general, is high.

Estimates on the degree of contingency:

• All estimates bring an intrinsic degree of uncertainty, especially in the early stages of the project in which there are more unknowns. It is essential to quantify the percentage of unknowns in the estimate and to compensate with an equivalent level of contingency.
• It is important to always consider the project risks and contingencies; never make estimates only considering the best case.
• Research and experiment with different tools and estimation techniques. The estimation tools will help you to consider all the different aspects of the project and will automatically add further contingency.
• Estimate the effort in points or working hours with respect to the calendar time to cope with the fact that the team is never 100% effective. You can also apply a separate conversion factor to translate the estimated effort into calendar time. This will make it easier to track the accuracy of the estimates. If, for example, the team spends 30% of the time of an average day in meetings, answering the phone and email, an appropriate conversion factor must be added, in this case corresponding to 1.4 (1/70% ).

Overall estimates:

• It is essential to take into account all the phases and activities of the project, including analysis, designing, planning, realization, eventual re-elaboration, delivery, project closedown.
• Formally record estimates and document how they were elaborated, from which information and through which processes. It is important to make clear the purpose and the hypotheses estimated and highlight what is out of scope. This will not only put the project manager in a better position to defend numbers, but will also help to review and improve the estimation process in the future.

Bottom line

As explained, understanding the difference between effort and duration of an activity is therefore fundamental for the correct planning of a project.

In Twproject, it is possible to estimate how much work is needed to complete a task or close an issue.

These estimates are taken into account in the assessment of the workload, a very useful tool in this regard, which you can find on our platform.

Twproject takes into account the available hours of the resource, with the definition of the working hours in cross-reference with the schedule and unavailability.

The tool also allows you to enter routine projects that reduce the actual hours that resources can devote to projects, so you always have an up-to-date and more realistic load.

With Twproject you can also intervene in real time on assignments to rebalance them if needed.

What do you think about this topic? Do you want to try to improve the way you estimate projects and check the load of your resources?

In the vast world of enterprise software, there is one specific area that we should never overlook, and that is project cost management.

Project cost tracking is indeed an essential activity in project management and if done wisely can reduce waste, increase awareness but also improve collaboration and personal satisfaction.

But what exactly is “Project cost management”? It is a process that deals with estimating and reporting the costs of company projects by relating them to the budget.

In other words, it allows us to create budgets for income and expenditure in projects and activities of all kinds, and consequently to make adjustments and accurate forecasts.

A software tool to manage this complexity can be the key. Filling in spreadsheets is not only time-consuming but can also be confusing: you risk scattering information, having to repeat the same data several times, thereby making mistakes and in any case generating chaos.

In this post we will look at the best project cost management software.

Objectives

Let’s go more in depth and see what the typical functions of a cost management software are:

1. Budget setting: this is useful to have a spending limit. The budget can either be the expected revenue or the spending intention. Read here for a comprehensive overview of the various approaches to budgeting. The budget can be allocated to the project as a whole but can also be broken down into the various project phases – like marketing, realization, promotion, etc.

2. Cost allocation: the hourly costs of employees must be recorded in the system, but at the same time flexibility in their deployment must be ensured.

3. Distinction between estimated and actual costs: for each item of expenditure, a comparison between the estimated and actual value is useful to make adjustments to the budget and revise the timetable.

4. Multiple cost items: any project is made up of ordinary and ancillary costs. Good software must allow to record everything accurately and flexibly.

5. Timeline: it is important to have a graph with the development of costs, to see the evolution of the financial situation over time and to make up-to-date statistics.

6. Document management: an additional advantage of using a good tool is the possibility of creating and archiving project expenditure documentation (tenders, invoices, etc.) in one convenient location.
   

All of this must be present in good project cost management software and contributes to higher financial performance and optimal project management results, reducing the time previously spent implementing tedious and repetitive lists of cost items, personnel costs, payments and so on.

Here are the best project cost management software tools

So if we have persuaded you to adopt software that will greatly improve the quality of your work (and your life) for financial management, here is our personal selection of the 7 best cost management software on the market:

1. Twproject

Twproject is the perfect synthesis of classic project management and cost control.

It aims to reduce the tools used in the company by providing one that covers 100% of the needs of each project manager.

The special feature of this solution is that, within a project management software, you find all the functionalities for accurate project cost management. It is therefore not necessary to use an ad hoc tool to keep costs and budgets under control.

Would you like an example of the advantages of Twproject’s integrated management? The project manager can build his or her project Gantt by defining timeframes and dependencies, assigning resources to manage their activities and at the same time define a budget at each level of the tree, enter expense and billing forecasts and actual expenses as the project progresses. Twproject also includes resource costs and reporting for complete financial management.

To sum it up, here are its main features:

• Budget/cost management integrated into the project structure
• Resource cost management
• Comparison of estimated and actual costs
• Overrun reporting
• Input of receipts and invoices, even from mobile devices
• Filters allowing costs to be exported for different items
• Summary graphs

Pricing: from 4.89 € per user/month.

Pros: Twproject manages project costs, revenues and resource costs in a single environment, correlating them together. The tool is easy to use, but at the same time very adaptable to individual needs, both personal and corporate.

Cons: No cons were detected.

Twproject is a system that is always up to date, and among project management software it has a very advanced and accurate cost management.

2. Scoro

Scoro is also an inclusive platform that combines budget, CRM and project management functionalities.

The system allows time tracking to be integrated with financial data, so that the company has an accurate view of profits. A great deal of importance is placed on working time, in order to maximise internal efficiency.

The main features of Scoro are:

• Integrated billing system
• Income and expense reporting
• Time tracking on tasks, projects or clients

Pricing: from 26 $ per user/month.

Pros: good usability, the workflow is linear and allows to keep several aspects under control.

Cons: project phases do not have an independent budget; prices are more expensive than in other systems.

Scoro helps companies maximise employee efficiency by putting the value of working time at the centre.

3. Centage

Centage is a cloud application that aims to support in business processes of budgeting, forecasting and reporting.

The system is integrable with different data sources, thus allowing companies to keep the systems they currently use and ease the transition.

It provides pre-built templates for operations such as revenue planning and allocation of budgets to resources.

Its functions may be summarised as follows:

• Forecast feature with different scenarios
• Integrated reporting of income statement, balance sheet and cash flow
• Collaboration tools
• Simple import/export
• Wizards

Pricing: customised quotation.

Pros: a specialised tool offering various analysis tools, including ‘what-if’ scenarios.

Cons: it is not suitable for those looking for an all-in-one solution because it requires integration with other systems.

Centage is a powerful budgeting tool for small and large companies, although it is somewhat lacking in versatility.

4. Prophix

Prophix is a useful tool for those who want to do good financial planning. It offers various profit optimisation models and makes it possible to predict the profitability of projects.

It proves to be a robust solution for companies of various sizes, with an easy-to-use interface and a good amount of graphs and tables, which are however not customisable.

Functions include:

• Budget forecasting and planning
• Analysis of historical data
• Use of formulas
• Exporting models

Pricing: customised quotation.

Pros: highly specialised product offering sophisticated analysis and forecasting tools.

Cons: the learning curve can sometimes be a bit tricky for those who are not very technologically literate.

Budgeting, forecasting and reporting are useful and efficient once you understand the models: this can take some time

5. Anaplan

Anaplan is a particularly specialistic software for financial planning that offers dynamic solutions and relies heavily on internal team collaboration.

It also offers very refined future planning tools, but like many complex systems, its use is not straightforward. Every piece of data must be fully planned from the first implementation in order to build a system that is scalable over the long term and remains flexible to business changes.

What Anaplan offers:

• Customisation and integration
• Planning and forecasting tools
• Data analysis and reporting
• Access and security controls

Pricing: customised quotation.

Pros: fully customisable; offers the company good self-analysis tools; real-time collaboration; good calculation functions.

Cons: lack of certain visualisation types; lack of flexibility in reports; inefficient with fragmented data.

A powerful tool but one that can present some pitfalls for those just starting out.

6. Vena

Vena stands out for having the objective of not disorienting those fond of the old Excel spreadsheets. Its interface is therefore specifically designed to draw continuity with the old systems used in companies.

At the same time, however, it wants to encourage sharing and collaboration within the work team and therefore relies heavily on sharing tools, role security and so on.

It offers the possibility to start from pre-built templates or to customise your own budget management statements based on existing structures.

Vena’s main features are:

• Importing data and models
• Calculation formulas
• Forecasting tools with different types of analysis
• Customisable objects

Pricing: customised quotation.

Pros: streamlining of workflows; user-friendly interface; possibility of combining data across company departments.

Cons: complexity of the initial setting; slowness in loading data.

The familiarity of the Excel interface combined with a good calculation engine.

7. Budgyt

For those accustomed to an agile approach, Budgyt may be a good solution. In fact, this cost management tool has functions suitable for analysing small data, without necessarily having to enter the entire company business plan.

In addition to promoting collaboration by providing tools for shared management, Budgyt values speed and efficiency in data presentation.

It is a good tool for those who value ease of use, speed of data entry and a clean, simple interface.

Some of its main functions include:

• Dashboard for presentations
• Single data access point
• Flexible and customisable data visualisation
• Division of roles at each level of the system
• Granular approach

Pricing: customised quotation.

Pros: easy to use and short learning curve; readability of data even for laymen, useful for data sharing.

Cons: a little mobile-unfriendly; not always immediate updates.

A partially successful attempt to apply the agile philosophy to budget management.

Conclusions

We hope that this overview of the best project cost management software will help you in choosing a cost management software for your company.

Ultimately, thanks to the research we did to write this short article, we came to some conclusions that we can genuinely give you for when you will make your evaluations.

The features you will need to look for within your software are:

1. intuitiveness: if a piece of software is easy to use and quick to learn, its implementation can be rapid, and in this way there can be a real advantage over the compilation of classic spreadsheets.

2. Process automation: as a consequence of the previous point, the reduction of manual work must be the focal point, especially with regard to repetitive and routine processes.

3. Budget planning is useful when linked to different targets, not only to the project but also to its individual phases or to the client. In short, target flexibility must be guaranteed.

Twproject possesses all these qualities and is an excellent blend of efficiency and versatility. A company, whether small or large, can exploit Twproject as a single solution for managing a multitude of functions, including cost management.

Have you ever tried using the support of a financial management software?

Take a 15-day free trial and let us know your opinion!

The Delivery performance domain pertains to everything the project will deliver.

This article will discuss in detail what it is, its elements, and its connection to the other performance domains according to the seventh edition of the PMBOK.

What is the Delivery Performance Domain?

The key elements of the delivery performance domain are scope and quality.

Scope refers to what the project must deliver, and quality, conversely, to the performance standards or levels the deliverables must meet.

In predictive projects, a scope can be predefined during the planning phase, and change control practices are applied during the il project life cycle.

Whereas in adaptive approaches, a new emerging scope is always welcome.

The delivery performance domain involves delivering the project scope according to quality requirements.

This awareness leads to stakeholder satisfaction.

The main sections of the delivery performance domain are:

• Delivery of value: All projects yield an output or delivery at the end, which must generate value for the organization.
• Requirements elicitation: It is about collecting and revealing requirements by using a variety of different methods.
• Scope definition: Scope definition is an endless process until the end of the project.
• Quality: Apart from the delivery requirements, quality is the performance level to be achieved.
• Suboptimal outcomes: many projects may fail to deliver expected outputs and, therefore, yield suboptimal results. This is a natural part of the delivery performance domain.

Let’s explore these elements in detail:

Delivery of value

Projects that call for a release of deliverables throughout their project lifecycle can begin to provide value to stakeholders over their entire duration.

Conversely, projects that involve a final delivery of deliverables will generate value only after distribution.

No matter the type of delivery, business value can continue well after the outputs are released.

A business case document will include a forecasted business value projection for the project, which is often used for stakeholder approval at the start of work.

Requirements elicitation

A requirement is a condition or capability that must be present in a product, service, or result to meet a business need.

To elicit means to pull out or bring out.

Here, it means collecting and analyzing requirements to ensure satisfactory project results.

Specifically, the requirements must be:

• • Clear
  • Concise
  • Verifiable
  • Coherent
  • Complete
  • Traceable

Scope definition

As the requirements are identified, the scope that will meet them is also defined.

The scope is the sum of the products, services, and outputs to be delivered by the project.

This can be defined by different strategies, such as by using a work breakdown structure –WBS -that allows for a detailed representation of the required activities.

Alternatively, the scope can be devised by identifying the project’s themes in a roadmap.  

Quality

Quality dictates the levels of performance or delivery that must be achieved.

However, ensuring quality comes at a cost, from training to auditing, which makes it necessary to balance quality requirements with their associated costs.

The cost of quality methodology-COQ-is used to find this balance and consists of four cost categories:

• • Prevention: To guarantee a product free of defects and faults.
  • Evaluation: Incurred to determine the degree of compliance with quality requirements.
  • Internal failure: Involves finding and correcting defects before the customer receives the product.
  • External failure: Defects discovered after the customer has received the product and it needs repair.

Suboptimal outcomes

All projects seek to deliver results, although some may fail or produce suboptimal results.

The reasons behind this may differ; for example, an organization might attempt to create an innovative product, such as a completely new technology.

This requires a deliberate investment with an uncertain outcome.

Alternatively, some projects might provide suboptimal results because the opportunity is past or competitors have arrived first.

The delivery performance domain and interactions with other performance domains

The Delivery Performance Domain is not standalone but closely related to and interacts with other performance domains.

One of the most prominent connections is with the Planning Performance Domain since planning determines how and when results will be produced and delivered. How often and by what nature deliverables are delivered depends on how work is structured in these domains. 

While the Delivery Performance Domain focuses primarily on progress toward business objectives and delivery of value, it is paramount to consider how it fits within a more extensive network of operations and goals.

This interconnection ensures that deliverables are high-quality and meet stakeholder needs and expectations, resulting in a well-executed project that is integrated into the overall business context.

In conclusion, the Delivery Performance Domain is a pivotal element in project management.

It not only drives the operational phases of a project’s output but also acts as a compass to ensure that the results meet the needs and expectations of stakeholders.

Understanding and effectively implementing every aspect of this domain, from value delivery to scope definition, from quality to possible suboptimal outcomes, are critical to the success of any project.

By integrating these practices with tight coordination with other performance domains, project managers can ensure they deliver high-value outcomes that benefit the entire organization.