With project failure rates remaining problematic, many project managers are turning to data for help. Proper use of data can take the guesswork out of decision-making and provide tangible support that project managers can use to guide their teams. Data can also prove its value by helping project managers schedule work, allocate resources, increase efficiency, reduce costs, and manage risk more effectively.
The primary way project managers leverage data is through the use of business intelligence and business analytics. Business intelligence (BI) is a combination of software and processes used to collect, store, and analyze big data from various sources and to convert that data into useful information. BI is considered a descriptive form of data analytics, as it focuses on leveraging past and present data to gather insights into what happened or what is currently happening in a given process. BI gives companies and project management offices (PMOs) access to real-time metrics to support better and faster decision-making and to gain greater visibility into projects, processes, and their outcomes.
Business analytics (BA), on the other hand, is considered predictive, as it focuses on the "why" to help make more informed predictions about the future. With BA, data is analyzed to better predict challenges and adapt to deliver better outcomes.
Forward-thinking PMOs are recognizing the need for project decisions and actions to be backed by solid factual data. Becoming a truly data-driven project manager means stepping up your game in all aspects of project planning and execution - especially when it comes to allocating and managing scarce but valuable resources.
Here is a look at how integrating data analytics into project management practices can greatly benefit project outcomes.
Matching, Allocating, and Scheduling Resources
Resource management is a tricky area for project managers because resources are often scarce and constantly changing, making it difficult to plan and allocate resource usage on any single project, let alone when multiple projects compete for resources. Data is essential for making effective decisions regarding resource availability and allocation. Project success depends on the ability to match skills, allocate the best resources, and schedule available resources.
Having access to data from past and current projects allows project managers to better allocate resources to current projects and better plan for future ones. By collecting and analyzing data in one place, project managers can identify which resources are underutilized or overutilized, allowing them to shift resources when needed and schedule accordingly.
Companies that use standalone Excel spreadsheets instead of BI tools integrated with their project management suites are often at a disadvantage. Integrated BI tools can not only reduce the chances of the team being overutilized and thus stretched beyond their means and potentially burned out, but they can also help ensure that project schedules are realistic and identify risk factors that could become obstacles to meeting those schedules. Project managers can use data to develop resource management KPIs, such as resource conflict indicators or on-time task completions.
Increasing Efficiency
BI can help PMOs discover and improve complicated internal workflows or technology-driven efficiencies, alerting project managers to changes that need to be made to improve how stakeholders and project teams connect, work together, and communicate. By uncovering and addressing inefficiencies, project teams can focus on higher-value work and faster project delivery.
It is only by being able to gather data on existing processes and inefficiencies that project managers can identify bottlenecks and other process-based obstacles and pave a way for change. BI can isolate ineffective or inefficient processes and improve overall decision-making efficiency. It also helps develop KPIs, such as planned versus actual time spent on tasks, human errors, or the number of change requests.
Managing Risks
Risks can come in many different forms and from both internal and external sources. The threat a risk poses can have a minor or major impact on projects, an entire program, or a portfolio. Many companies remain in reactive mode when it comes to risk and compliance, rather than staying ahead of potential risks using BI tools.
Risk and compliance management is one of the most critical areas where BI can play a key role in identifying issues. Data provides project managers with concrete information that can isolate many types of risks from past and current projects and allows them to rethink their risk management strategies to move beyond being reactive.
Making Use of BI and BA Tools
The key to gaining actionable insights is determining the types of data needed to make critical decisions - especially in times of uncertainty. It is essential to carefully evaluate the capabilities of BI and BA tools to ensure they provide PMOs with relevant real-time insights to support your company's project and portfolio goals. Here are some key features to look for.
Having a multitude of BI and BA features built-in or integrated with project management tools should not be a priority; instead, it is more beneficial to focus on having the right features, including:
- The ability to import and refresh data with the click of a button
- The ability to have built-in "what-if" analysis for resource planning and management
- Modeling and forecasting capabilities
- Customizable real-time dashboard
- Secure role-based access
- Clear visual charts and graphs
- Simple drag-and-drop interface
- Easy drill-down capabilities
- Seamless integration with other applications
- Secure mobile access for remote workers
- Quick and easy self-service options for all user roles
- Ability to easily share information with other stakeholders
- Reporting capabilities
While BI features and capabilities may differ depending on the project, project managers must ensure that the features essential to improving their specific project outcomes are emphasized in their data strategies. This will allow them to effectively leverage business intelligence to gain actionable insights, whether it is a matter of resource management, risk assessment, or establishing more efficient processes and communication.
Here is what you need to know to become more data-savvy and drive better project outcomes