Benefits of Project Management Software for Managers

The human spirit has an incredible capacity to dream, design and build. Thousands of years ago, without the internet, AI, or machine learning, humans created marvels like the Great Wall of China, the Pyramids of Giza and Stonehenge. How did they do it? Since then, we have come a long way with technology at our fingertips. Our tools may have changed, but our spirit for innovation and drive to create something perfect remain the same.

And in today’s world, managers have to wield powerful modern tools to bring complex ideas to life. In this article, we’ll discuss the benefits of project management software, which continues to be one of the top tools for project managers. We’ll explore what it is and, if you’re a manager, why it might be a good idea for you to use one. We’ll also identify some key benefits of using project management software and whether it makes sense for you to invest in one.

What is Project Management Software?

Project management software is an application designed to help manage multiple projects simultaneously, each with its own unique tasks and activities. While you can use it to manage your personal projects, the software’s primary use case is for project-oriented businesses. It allows organizations to streamline their project activities, from planning to execution.

Typical project management software will have different modules to manage various aspects of your project. One commonly found application is resource management. Allocating resources to projects, managing their schedules and tracking their time & pay – good software will have features to manage all of this. Another common application is managing project timelines, ensuring that the project is within budget and sticks to the estimated time frame. Advanced project management software can also have analytics and reporting capabilities.

Market intelligence firm IDC predicts that the projected revenue of the project management software market will touch $12.1 billion between 2024 and 2028.

Why do you Need Project Management Software?

For managers, simultaneously managing multiple projects is a constant reality. Each project has unique requirements – its resources, timeline, materials and, of course, client expectations – all of which demand careful coordination. However, project-related data often ends up across different places: spreadsheets, notepads and sometimes the back of a takeout menu that just happened to be on your desk. When information is scattered like this, you spend more time trying to bring all this together instead of finishing the project on time and within budget.

By centralizing resources, timelines, and client requirements, project management software can make it easier to track, coordinate and adapt to the needs of each of your open projects. Let’s see how project management software can come in handy for each aspect of managing a project.

Making Resource Management Easier

Knowing who’s available—and when—is crucial in any project. Resource management tools in project management software help ensure that team members, equipment and materials are effectively allocated without overlap or shortage.

EXAMPLE: Imagine a construction company managing projects in multiple locations. The project manager can use the software to see which teams are scheduled for which sites, ensuring that specialized labor, like electricians, are not double-booked. By making real-time adjustments based on each project’s demands, managers keep work running smoothly and resources optimally allocated.

Simplifying Project Planning

A well-defined plan can be the difference between a successful project and one that falls short. Project management software streamlines planning by providing templates, timelines and automated task dependencies.

EXAMPLE: Consider a software development firm planning a new app release. Using software for project management, the project manager can break the project down into tasks involving coding, testing, UX design and quality assurance – assigning dependencies and deadlines that auto-adjust if one task runs over. This automated support keeps the project on track, minimizing delays and making it easier to visualize progress.

Making Time Tracking a Priority

Time tracking is essential for staying on schedule and optimizing productivity. With project management software, managers can monitor not just how long a task takes but also compare actual time against estimated time.

EXAMPLE: Take, for instance, a marketing agency running a campaign with multiple deliverables: blog posts, videos and ad copy. Time tracking helps managers identify where the team spends more time than anticipated, enabling them to adjust workloads or deadlines in real time. The result is a clearer picture of productivity and a stronger ability to meet deadlines without overwhelming the team.

Managing Budgets & Financials with Ease

Keeping projects within budget is a top priority and project management software provides tools to track costs at each stage.

EXAMPLE: In a nonprofit organization planning a fundraising event, the software allows managers to monitor the expenses for venue rental, marketing and catering in one place. If costs rise unexpectedly in one area, they can reallocate funds or cut costs elsewhere, all within a single dashboard. By staying informed of financial status in real time, managers can make data-driven adjustments that prevent budget overruns.

Making Sense of all Your Data – Reporting & Analytics

Data is king in the modern workplace, and project management software provides real-time reporting and analytics to help managers track project health.

EXAMPLE: Imagine an IT consultancy working on a network implementation for a large client. The project manager can use reporting features to generate insights on project progress, budget adherence and team workload. These reports aid in keeping the project aligned with goals and provide valuable metrics for future project estimations.

Benefits of Project Management Software

We saw how project management software can be a fit for specific use cases that all managers experience. But what are the overall benefits of using project management software beyond these specific use cases? Let’s look at some tangible benefits that managers report after using it.

Boosting the Bottom Line

Project management software can contribute to higher profitability by optimizing resource allocation, budgeting, and time management. Moreover, by minimizing inefficiencies and ensuring accurate project costs, businesses can reduce waste and deliver projects within budget, directly contributing to the bottom line.

Staying on Schedule

Project management software helps managers set realistic timelines, track progress and flag delays early on. For an event planning company coordinating multiple elements, the ability to track each component against its timeline means fewer last-minute rushes and more projects completed on schedule, building trust with clients and stakeholders.

Satisfied Customers, Stronger Relationships

When stakeholders can see a project’s progress and receive regular updates, confidence grows. By providing transparency and demonstrating adherence to timelines and budgets, project management software allows organizations to build stronger relationships with clients, ensuring expectations are met and often exceeded.

Clarity Across the Board

Visibility into each part of a project is essential for decision-making. Project management software offers dashboards and reporting tools that give managers a real-time overview of task progress, budget status and team workloads, making it easier to spot issues and adjust strategies as needed.

Clear Roles, Real Accountability

Clarity on roles and responsibilities ensures accountability. With task assignments and responsibilities clearly outlined in project management software, each team member understands their role in the project’s success. This is especially beneficial in cross-functional teams, where accountability is crucial for smooth collaboration.

Teamwork & Communication

Communication is key in a fast-paced project environment. Project management software creates a shared space for team members to discuss updates, share feedback, and stay informed, reducing misunderstandings and increasing overall efficiency.

Planning for Tomorrow

Data from previous projects can be a goldmine for future planning. By tracking project metrics and outcomes, project management software provides insights that inform better project estimates, resource planning and budgeting for upcoming projects, ultimately improving future success rates.

Easier Data Access

Project management tools serve as a central location for all files and communication related to a project. This is handy not only for ongoing projects but also for planning upcoming ones.

Better Risk Management

Every project has its set of risk factors, and with proper data analysis available, it becomes easier to identify any possible risks and find ways to mitigate them. Continuous risk monitoring using a tool like this can help project managers stay proactive and handle any bottlenecks before they spiral into big issues, keeping projects on track.

Improved Automation & Standardization

It helps to have a standardized process for diverse stakeholders, team members and project managers when there’s a central system. PM software can help managers create standardized workflows or even customize workflows based on the requirements of a specific project. With this, the software can also identify repetitive tasks and help automate them to improve efficiency.

Streamlined Processes & Continuous Improvement

Finally, project management software supports continuous improvement. By analyzing project data and outcomes, managers can identify which processes work well and which could be refined, leading to smoother operations and a culture of learning and growth.

What to Look for in Project Management Software?

Seamless Integration with Existing Systems

Make sure it plays well with the tools you’re already using, as smooth integration is essential for efficiency. Whether you’re using CRM systems, communication platforms like Slack, or financial software, compatibility decides how well your project management software is used. For example, if your project management tool can sync with your existing time-tracking software, your team can spend less time toggling between applications.

Essential Features for Your Needs

Not all project management software is created equal. Before committing, take a close look at the features it offers. Identify which functionalities truly support your unique workflow. Do you need advanced reporting to track project metrics? Or perhaps resource tracking to manage team assignments effectively? Look for tools that enhance your operations rather than complicate them. It’s about finding that sweet spot where the software not only fits your current needs but also grows with your business.

User-Friendly Interface

An easy-to-navigate tool keeps things moving smoothly and helps the whole team get on board quickly. If the software is complicated to navigate, it can lead to frustration and decreased productivity among team members. You need a tool that doesn’t have a steep learning curve, ensuring that your team can hit the ground running.

Upfront & Ongoing Costs

Consider both the initial investment and any recurring fees to understand how it fits your budget in the long term. The ongoing expenses can include subscription fees, potential upgrade costs and additional charges for extra features. You need to analyze the total cost of ownership rather than the initial investment.

Reliable Customer Support

Strong, reliable support can make all the difference, especially during critical project moments. When issues arise – whether it’s a technical glitch during a crucial project phase or a question about utilizing a specific feature – having access to knowledgeable and responsive support can make all the difference. Look for software providers that offer various support options, such as live chat, phone support, and extensive online resources like tutorials and forums. Reliable support resolves issues quickly and boosts your team’s confidence in using the tool effectively.

Regular Software Updates

The technology landscape is constantly evolving and your project management software should evolve as well. Otherwise, your business quickly becomes outdated. Frequent updates ensure you’re getting the latest features and security improvements, keeping your projects running on the best version of the tool.

Feedback from Current Users

Checking what other users have to say can provide valuable insights into how well the software holds up in real-world settings. Websites like G2 and Software Advice provide direct customer feedback from other managers like you who have used the various software available in the market. They can possibly give you a better understanding of the on-ground reality of using these tools, including the advantages and drawbacks.

Should you Invest in Project Management Software?

Bringing about a change in the way you work can be a deeply personal decision. Whether you should invest in project management software boils down to evaluating your current project management challenges and the potential benefits it can bring you and your team. If you find that managing multiple projects, coordinating resources and tracking progress feels overwhelming, then the answer is likely yes. Take the time to assess what features are necessary for your team and seek customer feedback to guide your decision. In the end, if your projects demand organization, transparency and adaptability, investing in project management software can be a game-changer that transforms how you work.

With Deltek | Replicon’s AI-powered time-tracking solution, project managers can easily manage their projects in real time using its project tracking and workforce management features. It provides estimates and complete visibility into the project metrics for continuous project tracking. Built to identify early warning signs or risks in a project, the software can be used to work with complex projects and work breakdown structures.