Project Management Tools Function Model

The PMO's "project management tools" function model captures the process by which the PMO can introduce any tools deemed appropriate for use in the project management environment. The primary activities of the PMO's "project management tools" function model are depicted in Figure 2.1. Each activity is described in the following subsections.

Figure 2.1: "Project Management Tools" Function Model

Select Project Tools

The PMO is ideally positioned to lead project management tool selection through its affiliation and interface role with each project manager, project team member, and other stakeholders in the project environment — the end users of project management tools. Inasmuch as tools are selected to facilitate project management, the PMO is wise to consult with these project participants as it considers the following steps in the process of selecting project management tools.

Identify the Need for Project Tools

Professionals in the project management discipline will likely support the need for project management tools that help to achieve project management objectives and business success. Many will have preferred products and solutions in mind when discussions arise, and thus individual contributions of knowledge about tool preferences warrant consideration. However, it is incumbent upon the PMO to establish tool selection parameters and find common benefits for the relevant organization in its ongoing search for appropriate project management tools. This includes translating individual and collective tool preferences into solutions actually needed within the project environment.

The PMO can identify the needs for project management tools in three ways:

• Examine the current environment

• Evaluate requests and recommendations for tools

• Determine PMO-prescribed tools

Examine the Current Environment

The PMO can begin identifying project management tool requirements by examining the current project environment for performance results and reporting capability. This examination should identify what tools are currently being used, individually or collectively; their effectiveness in supporting project management; and their responsiveness to project management reporting requirements. Such an examination may be a casual effort or a formally planned activity that includes user surveys and tool inspections. The results of this examination should provide sufficient indications of which tools are present in the project environment, how they are being used, and user preferences for each tool.

The PMO can use these results to analyze current tool functionality and utilization. This includes a comparison to the desired state of tool use across projects and a determination of the level of tool standardization within the project environment.

Examining project management tools currently found within the project management environment enables the PMO to establish a baseline for tools utilization from which future tool standardization and functional capability enhancements can be planned. In particular, the PMO should review tool examination results against its goals for implementing best practices to see where gaps exist in the functionality of project management tools. Those gaps that are uncovered represent either the need for tool standardization or for expanded tool functionality, warranting selection of new tools.

Evaluate Requests and Recommendations for Tools

Individuals responsible for conducting project management activities may be a primary source for identifying needed tools. Project managers at the forefront of project activities are likely to be aware of tools and their functionality through ongoing efforts to improve project and personal performance. The PMO should consult these professionals to identify needs in the workplace and to establish a process for receiving and evaluating requests and recommendations for tool acquisition and use.

The ideal PMO goal is standardization of project management tools across the relevant organization. However, there are always exceptions to the rule. Individual requests or recommendations for project management tools may also have implications and benefits within the project environment. Nevertheless, individuals will need specialized tools on occasions to accomplish their jobs.

The PMO should set up a mechanism to receive requests and recommendations for new project management tools. The PMO can thereby monitor the interests and the intentions of project managers within the relevant organization. It can also collect information about project manager tool preferences as a means to maintaining an ongoing assessment of what tools are in the project environment.

Determine PMO-Prescribed Tools

The PMO should be proactive in its own examination of the need for project management tools in the project environment. It can perform this activity on a casual basis or as an event in response to project performance reviews. In essence, the PMO identifies problem areas it believes can be resolved through the acquisition and implementation of project management tools. It then conducts research to find out which tools would best be utilized and makes independent decisions to acquire and implement the project management tools that best fit the project management environment.

However, note that even PMO-prescribed tools will require some advance collaboration with the ultimate users in the project management environment. To that end, the PMO may want to establish a project management tools evaluation committee comprising participants from the project environment. This committee could review both individual requests and recommendations for project management tools as well as PMO-prescribed tools for the users.

Examine General Types of Project Tools

The PMO will need to choose from among the various types of tools that can be created in-house or that are available in the marketplace. The following subsections provide a brief overview of the types of project tools that the PMO can consider.

Paper-Based Tools

This type of tool can be created in-house under PMO guidance or purchased as a commercially prepared toolkit. These tools are commonly classified as templates, checklists, and forms. Although referred to as paper-based, this type of tool will usually have a basis in an automated software application. Paper-based tools can be created using common word processors, spreadsheets applications, and database applications. Many project management software applications also provide the means to develop paper-based tools. Some even enable users to attach externally prepared tools (documents). The manufacturers of commercially prepared toolkits usually bundle a variety of tools together to achieve specific project management objectives. Such toolkits can be obtained to guide data collection and reporting over the entire project management life cycle.

Automated Tools

There are a multitude of automated project management tools available in the marketplace. This type of tool normally resides on desktop work-stations for individual users or on a network for multiple users. For the purposes of this model, we will examine two types of automated project management tools: the simple automated tool and the integrated automated tool.

In general, the simple automated tool normally resides on the computer's desktop to serve one user. The simple automated tool is usually characterized by singular functionality, its own database, and a limited exchange of data outside the application. This is not to say that simple automated tools cannot share information, but that is usually accomplished by an export function or a non-dynamic link. Rather, the simple tool maintains data in local computers solely for the purposes of its primary uses.

Conversely, the integrated automated tool normally resides on a network server and has multiple purposes and usually several functions that different users can access. Some users may never see or access certain functions of the integrated tool. The tool, nevertheless, maintains cross-functional data and enables cross-functional reporting and data access by multiple users. In some cases, the integrated tool will retrieve data and information automatically from other automated tools through dynamic links that are constructed at installation. However, even integrated project management tools are limited to the purposes of their several functions. The PMO should therefore also consider use of enterprisewide management systems. These are integrated automated tools designed for business use, but they could have application in the project management environment as well.

Web-Based Tools

There are valid arguments and discussions in industry regarding the use of Web-based tools versus network-based tools. Often, it comes down to individual organizational preferences and the information technology (IT) department's policies and recommendations for use of Web-based tools. The focus of this consideration, however, lies in the fact that project management applications are available on the Web. The PMO should consider these externally based tools for use in its project environment based on the relevant organization's need for Web-based tools that can be accessed via the Internet, on the expense incurred for their use, and on the reliability of the application provider.

PDAs and Wireless Tools

With new technological innovations arriving almost daily, the PMO must consider the extent to which they will infiltrate or otherwise impact the project environment. In particular, the use of personal digital assistants (PDAs) is expected to be as prevalent as the desktop computer within the next few years. The PMO must determine how it will develop or otherwise acquire project management tools for PDA use and wireless operations. Of course, this requires close collaboration with the organization's IT department, with recognition that this could be a significant system upgrade and financial investment.

Assess Specific Project Tools

The PMO should position itself as the key evaluator for introducing new project management tools. As the need for project management tools emerges, the PMO should be prepared to identify available products and assess their capability to satisfy its tool needs. The PMO should establish a process that enables specific project tools to be assessed. This begins with a general search for tools that appear to provide the desired solution. A preliminary list of available tools is then reviewed to determine how closely they are aligned with the desired solution. The resulting short list of candidate tools is subjected to rigorous examination, possibly including collaboration with the vendor, and should include the following factors:

• Functions and features: Criteria for tool functions and features are developed for each new project management tool identified. Each tool is then examined to determine if it has the desired functionality and preferred features.

• Vendors: The PMO may already have a list of vendors prequalified for use in the project environment. In this case, the PMO can review the vendor's history to ascertain product quality and service for a tool being examined. If such a list does not exist, the PMO will likely need to contact the vendors to screen them for product and service quality.

• Implementation: An important part of tool examination includes determining the level of effort and vendor support required for tool implementation. When a preferred tool is identified, this usually becomes a secondary issue unless tool implementation requires extended planning and technical knowledge and skill. Evaluating implementation requirements and vendor support then becomes a tool selection factor.

• Maintenance: Business environments today have become accustomed to automated products that generally do not appear to require extensive maintenance. This perception is often fueled by the behind-the-scenes work of the IT department. The IT people will frequently perform application checks, resolve isolated software problems, and even install new software versions in a way that is not apparent to the user population. This is mentioned because project management software requires the same level of attention. In some cases, it may require greater attention of the IT group, including routine and special requirements for data transfers.

• Costs: The cost of project management tools is a factor that the PMO must consider, as project management tools can, in some cases, be quite costly, particularly when intended for multiple users. The PMO should include project management tools when preparing its activity budget. If other departmental budgets are used, the PMO will have to collaborate with those functions to ensure funding availability. Cost, however, remains an important factor in the make-or-buy decision, which implies that the PMO may also consider in-house development of the project management tool.

• Customization: In acquiring a project management tool, the PMO may also contemplate some alternatives. In some cases, vendors will work with their customers to modify or adapt their automated applications for better fit within the intended project management environment. Of course, this can incur substantial additional acquisition costs.

The PMO's screening of new project management tools will ensure the closest possible fit for the intended purpose of the tool. This is an activity that the PMO staff, or an ad hoc committee managed by or aligned with the PMO, can perform.

Acquire Project Tools

After completing the screening of the candidate project management tools, the PMO should be able to make a decision on the preferred tool. Weighing all the factors in the screening process should provide sufficient insight into how well the tool will fit within the project management environment. The PMO then follows several steps to acquire the tools.

First, the PMO confirms that tool acquisition (i.e., purchase) is a better alternative than in-house tool development. Information from the tool screening process is evaluated along with cost and other selection factors; tool customization options should also be considered. Finally, a make-or-buy decision is made, with a buy decision representing approval to proceed with tool acquisition. It is important to note that a project management tool should be acquired to support a valued project management/business principle or practice standard and that the tool can be clearly related to addressing project management performance/decision-making goals or to eradicating existing efficiency problems.

The next step in the process is the actual purchase of the tool. A low-cost tool may be a matter of routine procurement for the organization. Conversely, a high-cost tool (due either to multiple users or customization) may require special handling and perhaps additional approvals in the acquisition process. Accordingly, the PMO should consider these factors when planning for the acquisition. Of course, this step is subject to the vendor purchase order, making it necessary for the PMO to monitor order status and subsequent delivery.

The final step in the acquisition process is the tool receipt and installation. In managing tool acquisition, the PMO should plan for its installation either by the vendor, by the internal IT department, or even by individual users in the case of simple automated tools. Tool installation is complete when the PMO verifies that the tool has been properly configured and made accessible for the intended users.

Implement Project Tools

Installing a project management tool on the desktop computers of a few users will not normally present a major challenge for the PMO. Conversely, a larger number of users or a major system implementation warrants advanced planning and ongoing management on the part of the PMO. In either case, the implementation activities recommended below will ensure the smooth introduction of a new project management tool.

Plan the Implementation

Small tool implementations for small user groups are easily planned: simply schedule and arrange the implementation with individual users. However, major tool implementation, particularly those affecting department or organizationwide operations, will likely require additional advance planning. Implementation of a major project management tool implies a change in the way projects are managed and the way business is conducted. The PMO is inherently responsible for preparing project management environment users for such major modifications.

The PMO can consider the following planning elements for tool implementation:

• Advance announcements: Give staff prior notice that a decision has been made to acquire and implement a new project management tool that will prompt adjustments in current operating processes; define and include these announcements in the implementation plan and schedule of events; include vendors and customers in this notification, as appropriate.

• Senior management endorsement: Obtain and convey senior management sanction at appropriate points in the implementation; collaborate with senior managers to plan when and how such approval will be made; determine what types of endorsements will be needed (written policy changes, staff meeting announcements, etc.).

• Implementation schedule: Specify the implementation activities and prepare a schedule for their accomplishment. Beginning with tool installation, include time frames for implementation within different departments or at multiple locations; specify the system connectivity needed to provide access at various facilities and outline the data transfer activities that are required to make the system operational; identify the implementation support that the PMO will provide.

• User training: Specify any training required in association with the introduction of a new project management tool; include a schedule for training delivery in the implementation plan.

The inclusion of a transition plan is another element of the project management tool implementation plan. However, the transition plan is considered separately below because of its importance in the successful introduction of a new major project management tool.

Plan the Transition

The PMO will want to focus on this element of tool implementation planning because it represents a critical step in making the new project tool operational. Essentially, the transition plan requires the PMO to determine how, when, and what elements of project management data will be transferred to the new tool. If the new tool is an automated methodology system, transition planning could require an extended period of time to identify how each project in the organization will be transitioned to the new system. Any other major tool that requires populating data from all projects presents a similar extended planning process. This effort is further compounded when the new tool is transitioned at multiple geographic locations, possibly on a global basis.

The underlying premise of the transition plan is to ensure that all key participants know how and when they can begin using the new tool and what role they have in bringing it to its intended operating capability. The transition plan also will normally specify what project or business data are being transferred, how that transfer will be accomplished, and what data manipulations, if any, by the new tool must be performed to make the tool useful for real-time project management.

Conduct User Training

The complexities of using the new tool will determine the need for user training. However, the PMO should normally consider providing training when implementing any new tool and especially when introducing a major new tool. Furthermore, when a customized major tool is introduced, the PMO absolutely should consider training.

The PMO can arrange and conduct project management tool training for one or more user levels, depending on the nature of the tool and the intended access of the users. In general, frequent users will receive more detailed training, whereas infrequent users, such as executives, will have familiarization training focused on conveying understanding of tool functionality and any relevant executive access features.

The PMO can identify user levels and arrange for appropriate training programs during tool implementation planning. It is also important to identify any prerequisite knowledge needed before beginning project management tool training. For example, individual understanding of project scheduling concepts is essential before introducing a project management scheduling tool. The relevant organization should never presume that simply introducing a tool will solve "performance" problems.

Conduct Implementation

When it is time for the PMO to execute the tool implementation plan, it should address all pertinent implementation activities that the PMO will manage. The implementation plan should facilitate the accomplishment of the following three items:

• Data transfer: The transition-plan element of the implementation plan can be used to guide the transfer of data that will populate the new tool for operation within the project environment.

• Operational functionality: User training begins the process of conveying the knowledge that new tool users need. The PMO will want to monitor initial use, individually if possible, to ensure that all users achieve a complete understanding of tool functionality. The PMO can determine the depth and extent of monitoring and indicate what activities it will perform in the implementation plan. When the desired level of user performance has been achieved (as specified in the implementation plan), the PMO can declare that operational functionality has been achieved for the new project management tool.

• User feedback: The implementation plan should include provisions for preparing and receiving user feedback in conjunction with implementation of the new tool. This activity achieves two objectives. First, it allows users to know that any concerns about the performance of the new tool are noted and will be appropriately addressed. Second, it enables the PMO to collect individual opinions and group perspectives on the performance of the new tool, thus permitting immediate fixes of any major problems before beginning the evaluation of tool performance.

Evaluate Tool Performance

It is a truism that the PMO's work is never done. The ongoing monitoring and management of project management tool performance is just one part of that work. A follow-up evaluation of project tool performance should be based on the extent of users and the business importance of tool deployment. Major department and enterprisewide systems will require frequent performance reviews until the system becomes reasonably familiar for users and stable in the project management environment. After that, routine, recurring performance checks will be required to ensure the tool is being used properly to fulfill its intended purpose and to ensure that its functionality is maintained and optimized for best performance within the project management environment.

The PMO should establish its tool evaluation approach to include three areas of attention: utilization, functionality, and overall effectiveness.

Identify and Resolve Utilization Problems

The PMO should conduct tool utilization reviews for the most critical project management tools — those that guide the project management process and those that provide for timely reporting of project status. This type of review can be a formal survey of users or casual observation of utilization. Its intent is to ascertain whether the tool is being used for its intended purpose within the specified user group.

In particular, the PMO will want to identify why a certain tool, or feature or component of a tool, is not being utilized in a way that is consistent with expectations. Reasons for nonuse may include inadequate or no user training, tool-learning hesitation or misplaced priority of the individual user, lack of senior management endorsement or communication regarding desired tool use, limited perception of personal value or benefit by the user, limited perception of organizational value or benefit by the user, and other explanations that the PMO can discern.

Once low-utilization indicators or trends are identified, the PMO should work with project managers to rectify the situation and bring it in line with organizational expectations and mandates for tool use. The PMO may want to retain a log of the tool utilization problems encountered and the corrective actions taken as a reference for future use.

Identify and Resolve Functional Problems

The functional performance of project management tools can be examined in conjunction with a utilization review. The PMO can accomplish this by conducting random testing of tool features. Alternatively, the PMO can establish a problem log for use on each major project and then review the tool problem log, perhaps on a weekly or monthly basis. The functional problems to be encountered could range from simple system "lockup" to more profound user recognition that the tool does not possess a desired feature or perform a preferred function.

By analyzing the review findings and problem logs, the PMO can identify and isolate tool functional problem indicators and trends. As a natural follow-up, the PMO should attempt to resolve each identified problem. If recurring problems exist, the PMO may need to contact the project management tool vendor for resolution.

Assess Overall Effectiveness

The final element of the PMO's tools examination is its evaluation of overall tool effectiveness. In essence, this means determining what the tool has accomplished for the organization or the project management environment. What benefits have been achieved as a result of using this project management tool: increased project success, more timely project decisions, earlier identification and resolution of project problems, and so forth? The tool assessment should also examine the benefits to individual users. Have individual and project team efficiency or effectiveness been increased?

The PMO can use this information to substantiate continued tool use, expanded tool deployment, or as a rationale for pursuing an advanced version of the tool or an alternative replacement tool.