Project Management Software - A Comparison With Spreadsheets for Managing Projects

Spreadsheets are the king of project management support tools because they are the most convenient tool to use and the most frequently used tool. How do they compare to project management software? What are the benefits of each and when should you make the switch to project management software? While only you can make the determination as to when you should make the switch, this article will walk through the benefits of each and provide some guidelines.

Depending on which research you rely on, the market for project management software is between $1.5 billion and $3.5 billion. That is for software that is specifically designed to support project management. Most organizations that have made significant efforts towards effective project management have recognized that it is very difficult to manage a greater number of projects and people, or a larger project, without the support of technology.

Yet there is no tool for project management that is more popular or widespread than the spreadsheet, despite the fact that spreadsheets are not designed to be project support tools. Even in organizations with an established project management tool, spreadsheets are used. There are obvious reasons for this. A spreadsheet program is on almost every computer in every organization, people are familiar with spreadsheets and how to use them, and people are pre-disposed to use these "office" types of software tools to solve problems. And I am right there with them. I love using spreadsheets to track all kinds of data. It is easy, convenient, and I admit ego-boosting to show off what I can do in a spreadsheet.

With that in mind, let's look at some of the differences between these two different types of tools. For the purposes of this article, I selected six criteria by which to make the comparison. These were selected from the feedback of customers and prospects as well as learning what is important for the successful adoption and implementation of project tools within an organization.

Data Mining

Data mining is a huge part of project management tools. The whole reason for having a tool is to collect data, so that you can look intelligently at that data, make sure your processes are performing as advertised, and make good decisions. You need to know which projects and tasks are slipping through the cracks so that you again react. You need to know when you will not have enough resources to meet demand so that you can allocate them properly or manage the demand. You need to know which issues are lurking so that you can address them now before you lose the favor of a critical customer. And you need to see how your processes are working so that you can continuously improve your processes.

In today's economy, competitive landscape, and accountability standards you must have the data. Managers are getting blindsided because they do not know what is coming and what is going on. This is where the right project management software tool shines and spreadsheets fade. A good project management tool will be database-oriented and should allow for different types of ad hoc reporting across multiple projects. This enables the mining of all kinds of data. You simply cannot do this in a spreadsheet at the same level. If you really, really know what you are doing it is possible to tie spreadsheets together and generate some integrated data. But that is not the same thing. You simply cannot, on a whim, mine into the data represented in your multiple spreadsheets. And in today's environment, this is critically important. Gone are the days when not having the right data is acceptable.

Advantage: Project Management Software

Ease of Use

There are project management software systems that are easy to use. However, spreadsheets clearly have an advantage here. Most people are familiar with how to use spreadsheets; they are comfortable with them, and even like using them. A big reason is because spreadsheets have no structure. People are not usually "forced" into how to use them. They are free to use them however they want. Of course, there is a downside to this. It is very difficult to standardize a process or have any sort of standard data structure when there is no structure in the tool itself. However, from a strict ease of use standpoint, spreadsheets cannot be beat.

You can counter this in project management software by employing good, relevant, and periodic training, keeping your implementation simple, and using helps such as templates. But we'll give the advantage of this one to spreadsheets.

Advantage: Spreadsheets

Centralized Access

One of the things that organizations are doing today to become more competitive and more efficient is to provide everyone access to the project information that they need. Marketing organizations are putting all of the information online about each client project. Engineering organizations are tracking all schedules and immediately identifying problems. Government agencies are putting all of the various required data online with their projects. And on it goes. The value of immediate access to information is profound. An engineer can look at one system and immediately find the specifications he needs. A client manager can track the status of his client's projects and identify issues early. A professional services manager can look up the contract information and scope of work for a key project before answering a question.

Productivity means yielding results, bringing things about, or making things happen. This type of centralized access enables those on the front lines of yielding results to know which action to take when.

Project management software, especially online project management software, wins this one hands down. Spreadsheets are not designed for access by multiple people from multiple locations. They are designed with a single file / single user scenario in mind.

Advantage: Project Management Software

Maintenance and Administration

Time and again, I talk with organizations that are spending an amazing amount of time maintaining spreadsheets. There is so much time spent on activities attributable to spreadsheet usage:

Tracking down the right spreadsheet
Tracking down the right version of the right spreadsheet
Tracking down the email with the right version of the right spreadsheet
Emailing out the right spreadsheet to the people that don't have it
Tracking down the people who have the information that is needed to update the spreadsheet
Actually updating the spreadsheet
Maintaining the formulas and formatting of the spreadsheet
Updating the standard format of all the spreadsheets to accommodate a "process enhancement"
Creating new spreadsheets

And the list goes on. The point is that while any tool will take time to maintain, spreadsheets take an inordinate amount of time because they are single-user focused. Only one person can update them at a time. They also take time because they are file-based, meaning that you have to maintain separate files. Unless an organization is really good with a process to manage these files (the exception not the rule), the files tend to be stored in a hodgepodge of locations with non-standardized file names and even non-standardized layouts. If you take the time to study the amount of time people take to maintain these spreadsheets, you will be amazed.

On the flip-side, project management software also takes time to maintain. I cannot say otherwise. It takes time to make sure the data is correct in the system, that processes are being followed properly, and to simply get information in the system. One of the flip sides of this is that many project management software systems enable the entry of information by everyone so that one person does not have to both find and enter the information. In this scenario, the maintenance is more truly maintenance than continual, non-stop data entry.

There are some ways to minimize the amount of maintenance and time spent on project management software systems, and these are focused on the initial setup. If you setup the system well, the maintenance time is reduced. Using items such as templates and pre-setup reports really help to minimize the amount of time spent in the tool.

While both types of tools require time, a well setup project management software system definitely has the edge over spreadsheets.

Advantage: Project Management Software

Flexibility

Flexibility in this context refers to the ability of the tool to adapt to your processes. In practicality, this refers to things such as being able to track any type of data peculiar to your company (i.e. adding fields), or implementing a new project template.

This is a harder attribute to measure, especially with the variation in project management software tools. Many tools are very rigid, meaning what you see is what you get. Some tools have become more flexible and allow a great deal of adaptability - such as being able to adapt screens and data structures. This has become increasingly important.

It is difficult to perform a direct comparison because it really depends on the project management software system that you are evaluating, but in reality many systems will not be as flexible as a spreadsheet. In a spreadsheet, you can create a new column or row on a whim or create a brand new spreadsheet to track new information. Obviously there is a downside to this flexibility, specifically the difficulty in standardizing a process. However, from a strict look at flexibility, we have to give spreadsheets the nod. But I caution you to test your project management software system for flexibility and do your own comparison.

Advantage: Spreadsheets

Resource Allocation and Forecasting

This is similar to data mining, but it is so important that it gets its own billing. The management of which resources are assigned to which projects and tasks is a critical component of project management and one of the big differences between spreadsheets and project management software.

There are three critical pieces to ensure good resource management. These include:

A good work breakdown structure (breakout of the tasks in a project)
A good estimation of the effort (not duration) to be expended on each task (and thus project)
A composite view of this information across all projects

Because of the single-file focus of spreadsheets, a good project management software system should win this hands down. A good system will provide views and reports with insight into resource allocation so that you can view problems and do future forecasting. That isn't to say that you cannot do this with spreadsheets but it is difficult at best and you need to have a very, very good setup.

Advantage: Project Management Software

Final Thoughts

Only you can decide the right tool for your organization. Certainly using spreadsheets is better than using absolutely nothing. They do have value, and they may be a good fit for some organizations. However, good, project management software (especially enterprise-level) clearly has the advantage for the following types of organizations:

Organizations with more than a handful of projects to manage
Organizations with more than a handful of people working on or managing projects
Organizations with large or complex projects

Spreadsheets are primarily used because of convenience. However, convenience is not a great reason to use a tool that supports your critical processes. Be sure that you select and use a tool that adds to the efficiency and productivity of your people and processes, and not the other way around. This will far outweigh the benefits of convenience.

While spreadsheets do have a couple of inherent advantages, such as a natural ease of use and flexibility, you can employ best practices to minimize any downside to project management software. For example, use templates as much as possible, simplify screens as much as possible, document clear processes, focus on those processes instead of features, provide good training, and create good, relevant reports. Combining this with the inherent advantages in project management software will help to create efficiencies, increase productivity and resource utilization, and to become more competitive.

Mark Kenny is the President and Founder of Team Interactions, Inc., the developers of the EnterPlicity Project Management Software System. He holds a Certificate in Project Management and is passionate about the proper use of technology to support good project management processes. He writes articles and routinely writes posts for the Projects Management Software Tools blog at http://blog.teaminteractions.com. He can be contacted at 760-655-4055 #211. Find out more about EnterPlicity at http://www.teaminteractions.com.

Managing Your Way to Achieving Personal Success With Project Management; Part 2 - Project Success

Project management techniques play an important role in the world around you. Many of the most visually imposing features of your life would not be there without effective project management.

Let us just consider one example: the aircraft you fly away on for your vacation. That aircraft is an end result of a highly complex project, probably covering several different locations and even countries. Design, engineering, manufacturing; all these could be spread around in different offices and buildings. Each of those elements is complex and may involve several professional disciplines, with safety and comfort a feature at all times.

Take away the management of that aircraft project, and then try to imagine how the resulting aircraft may have looked. Without the co-ordination provided by good management, what you would end up with, if anything, may not even look like an airplane at all. Components may not fit, or may not arrive; the wings may have been designed, but their manufacture not ordered; the wheels may be designed for the wrong size of aircraft. All sorts of bizarre things could occur, and the aircraft would not get off the ground, probably never even be half assembled.

When you get on an aircraft, you are boarding the successful result of a project well and professionally managed. But what if you changed the project from an aircraft to your own future success; and then applied some basic project management techniques to achieve a successful outcome to "Project Success"? Your chances of achieving success would be greatly enhanced.

You may be thinking that your success is so personal that it is simple, with nobody else involved, and therefore needs no management at all. You may argue that success, if it is going to happen, is just going to happen. The reality of achievement, though, is never that simple. An element of self management will always be needed to be successful, so why not increase your chances of the perfect outcome to "Project Success" and manage it effectively? After all, you are more complex than that sleek, hi-tech aircraft transporting you to your holiday destination.

In practice, though, how can you take the project management approach of building an aircraft, and apply those techniques to "Project Success?"

Applying Project Management Techniques to Personal Success.

In a short article, I can only touch upon a few headings which may help guide you to guide yourself. These are important components of managing a project of any sort, and could be applied to "Project Success". Here are some ideas which may help put yourself in control of your own success destiny.

"Project Success - The Vision"

Until you have a definite end in mind, you have no project. There would be no point having a project to build an aircraft, only to find in the end that what was needed was a submarine. As an individual, it is just as important to have a clear idea of the end aim; what really is the success you are seeking? Once fully identified, you can plan "Project Success".

As an individual, though, this stage can help to pave the way for a smooth project. If you take your time to visualize in some detail what success for you would entail, then you can harvest the benefits of visualization, which can be a useful personal tool in carving an opening to reach where you want to go. One idea is to sit quietly and alone, and visualize your perfect life in 5 years' time. Then, carefully write down the main components of that future life. You could then take that as your end product of "Project Success".

Outline Plan For "Project Success"

Once you have a clear vision of your overall success objective, then it is worth forming an outline plan of how you are going to achieve that success. At this stage, you may not have much idea of the detail anyway. Even for an outline plan, you may need to do some research first.

For the sake of this illustration, let us assume your vision of success is to have your own business for the first time, based at home and on the internet. This is an ambition shared by millions of people across the world.

Your initial research may show you that, in outline, you need to:

a. choose the type of online business that you want and in what market;

b. learn about website design and building;

c. learn about internet marketing and offline marketing if not already known;

d. study people who have already succeeded in an online business;

e. work out a financial budget;

f. formulate a business plan based on the outcome of a, b, and c above, taking into account e. You conclude d. will be ongoing.

The above are just examples, and not comprehensive, but it is enough to give you a idea of how to get started. There are many methods of project management, which are mostly designed for big projects, but you could also include the following in your "Project Success" plan:

Consider the Risks

Risk assessment is a normal part of large project, but it can be just as critical for you, especially when it comes to assessing the financial implications and affect on close family. Discuss with your spouse and older children if possible; their support and understanding could be critical later.

Assessing Resources Required

The resources you will need will be a mix of time, free information, free software, paid for software, paid for services and other items of expenditure that are essential to your success. That is based only on your first assessment of what you need to have and to do. Always bear in mind that your personal success project will need to be flexible, as you will learn much as you go along and have to adjust your plan accordingly.

Assigning and Managing Project Tasks

This may sound very simple: assign all tasks to yourself and carry them out yourself. But you are not that simple, and managing yourself is not that simple. In fact, you are are probably about the worse person you could wish to manage, until you train yourself not to be.

While it is possible to contract out tasks, a golden rule of outsourcing is to first understand in detail what it is you are outsourcing. Leave that for later when you are accomplished in your new success role and fully understand the business you are in.

So, to begin with, assign yourself all the tasks, having first listed them all down. You will not have all the resources you need, as you will inevitably be lacking in certain areas of knowledge. Note down what those knowledge gaps are, as filling them will need to be built into a more detailed plan.

Create Detailed Project Plan - Task by Task

By now you should have enough information to build a more detailed plan. Now we are not talking about building a rocket here. Despite your own complexities, this should still be a relatively simple plan for each task, and you should be prepared to change it later if necessary. Your plan is intended as an aid to your success, not a ball and chain dragging you down. You will learn fast as you go along, and need to adapt quickly.

Prioritize Project Tasks

In complex projects, progress can be curtailed by bad priority management. I have seen this in practice, when called in to take over the key, time critical, part of a large project installing a new computerised accounting system. I soon realised why it had fallen so far behind. Project team members were, against their own better judgement, being forced into spending time on trivia that the project leader liked doing, rather than driving the key areas of the project forward.

Beware of your own inclination to do the same. In "Project Success" you will have to manage yourself, according to priorities, but not according to your comfort zone. It is how you respond to this challenge that will dictate whether you will be a successful online businessman, or someone who is just playing with it for fun.

Controlling and Monitoring Progress of "Project Success".

This is where you will be tested in your own self discipline and management ability. You need to establish points in the plan where you will review progress. In a normal project situation, the project management team would probably have regular management meetings, where those heading each key task have to report progress and co-ordinate with others.

You need to do the same, as yourself, and perhaps review progress once a week or, at minimum, once a month. If you can get a mentor in your chosen business, then that would be a great help; or you may like to get your spouse or a friend to add a critical input to your progress. The important thing is that you must make an unemotional assessment of how you are progressing, where things are going right or wrong, and what, if any, changes to the plan need to be made. A plan is a plan is a plan; change it if you have to, and do not think of changing it as an admittance of defeat, it is a triumph of actual knowledge over guesswork.

By using some of the disciplines mentioned above, you can help guide yourself to a successful conclusion to "Project Success."

This achieving personal success article was written by Roy Thomsitt, owner and part author of the Routes To Self Improvement website.

Visit Routes to Self Improvement regularly for articles on success, meditation, relaxation, weight loss and other personal improvement topics.