Choosing project management software: 9 steps to finding the right solution

Before you even begin to inform yourself about the range and selection of project management solutions available, you should first look inside, analyze your own needs and determine your current position. As part of an audit, record the actual state of your organization's project management as concretely and specifically as possible.

As part of such a status quo analysis, clarify the following questions, for example:

• Which project management methods and frameworks have you been using so far?
• How complex are the projects you implement?
• How many team members, teams and departments are involved in the implementation?
• Do you regularly involve external employees, teams of service providers or external stakeholders?
• Do you primarily manage a single project or several projects (multi-project management) at the same time?
• Which other applications do you already use to map parts of your project management? Do you want to continue using these applications or should the new PM software replace one or more existing solutions?
• Which management workflows and workflow processes do you want to improve?

A comprehensive understanding of the current processes and challenges is the first step on the way to the optimal project management software. In addition to the internal analysis, you should also make future-oriented considerations:

• Where do you see your company in five years?
• Which functions could be relevant in the future?

Involving the affected teams is essential. Rely on transparent communication and workshops to involve all relevant stakeholders in the process at an early stage. This will ensure that the new software is widely accepted from the outset and seamlessly integrated into your day-to-day work. Define clear criteria for selection and prioritize them according to must-have and nice-to-have requirements.

Selection criteria

n addition to technical and business requirements, it is often the everyday needs of users that determine the success or failure of the software. To determine the desired range of functions in more detail, you should then survey all team members, project managers and stakeholders who will be working with the software in the future. Each participant should summarize, based on their previous experience, which processes should be mapped and automated and in what form. Ask specifically about pain points and wishes for an ideal solution. Users can contribute these requirements as a user story.

Questions such as the following need to be clarified:

• Which functions for agile project management should be included (e.g. Scrum including sprint planning tools, Kanban board)?
• How extensive are the requirements for a document management system integrated into the tool?
• Should billing and invoice creation be carried out by the PMS?
• Which options for time tracking should the product include?
• Is project portfolio management (PPM) useful?
• Which integrations and interfaces to other programs and tools are necessary?
• To what extent should customers, external employees or teams of service providers be integrated into project work and thus also into software use?

One proven approach is to create user stories: “As a project manager, I want an easy way to track project progress in real time so I can identify bottlenecks early.” Such concrete use cases help to clearly define the range of functions and avoid disappointment later on. Personas can also help to better consider different user groups and their specific needs.

Now it's time to get down to business: Arrange a software presentation with each manufacturer and have the software products demonstrated. User-friendliness is an important aspect of software evaluation. An appealing interface alone is not enough – navigation should be intuitive and workflows should not be unnecessarily complicated. It is advisable to attend a presentation as a team and formulate questions in advance. At each software presentation, specifically address the points in your requirements catalog that

• you could not properly clarify based on the information on the website.
• Are particularly important to you.
• Are interesting in terms of navigation or usability.

Let yourself be guided through the software in live demos and ask specific questions about your use cases. Run tests with realistic data to find out whether the software actually meets your day-to-day business requirements. Also assess how well the provider responds to individual questions and whether customizations are possible. Then filter out the products that you are not convinced of in terms of design, usability or navigation. The wide range of project management solutions should now be narrowed down to two to three products.

Don't make the mistake of hastily selecting a project management software that you only got to know from a functional description and a presentation. Of course, the manufacturers' sales representatives know the weaknesses of their tools inside out and focus on highlighting only the strengths of their software in each presentation.

To really assess the user-friendliness of a software, you have to try it out yourself: It's time for a project management software test! Insist that as many of your employees as possible have the opportunity to test the software in all areas. The longer the test period, the better. Each test user should perform all the actions multiple times that they would later perform in their daily use.

Pay attention to performance, stability and integration options. Support can also be tested in this phase: How quickly does the provider respond to inquiries? Is there a community or an extensive help center? Is there perhaps an easily accessible personal customer service representative?

A structured feedback process helps to collect all relevant opinions and make informed decisions. At the end of the test period, have each test user assess the usability according to a predefined, standardized evaluation system. A rating scale in the range of -3 to +3 or -5 to +5, each with additional comments, is a good idea. The scales in the minus range enable the testers to actively express rejection or abstention with regard to an aspect, which a school grading system of 1-6 or a point scale of 1-10 does not enable. If individual employees or entire departments do not feel comfortable using individual modules or functional areas, the software will permanently encounter low acceptance or even resistance and is not suitable for your requirements.

Evaluate the results and don't forget to weight them accordingly. If a software program comes out on top in the overall average of the evaluations, but a key function was rated in the negative range by all testers, you should still cross it off the list. If none of the PMS on the shortlist passes the usability test, you should go back to step 4.

You can request offers from the various providers parallel to step 6. Be open and let the sales representatives know that you are testing other products and which products you are testing. Due to the wide range of products on offer, the providers will probably want to attract you as a customer and also want to get to know your requirements and needs better. This way, you can certainly get one or two goodies or add-on modules at a discount.

Don't just negotiate the price, but also the services included. Clarify questions about updates, service-level agreements and any hidden costs. Some providers offer discounts for long-term contracts or non-profit organizations. Check whether additional services such as training or onboarding workshops are included. Compare not only the costs, but also the long-term added value of the solution.

When you receive the offer, ask for information on how long it will take to implement the project management software and train all employees, and when the project team can start working with the software.

Read the terms of the contract carefully, especially with regard to notice periods, data security and support services. A transparent contract creates security and avoids later misunderstandings.

When making the final decision, include those people who will be working most intensively with the software – most likely the project managers – and don't just look at the introductory price. Seemingly particularly favorable providers sometimes come up with hidden costs, for example for support. In no case should price be the sole criterion for decision-making!

Depending on whether you have decided on a license purchase or a SaaS model, you will conclude a purchase contract or a rental contract. Take enough time to study the contract and have it checked. Record detailed technical requirements such as availabilities, responsibilities, service times, reaction times, availability of support, etc. in a separate Service Level Agreement (SLA).

If possible, seek advice from a legal expert to ensure that no disadvantageous clauses are included. In particular, consider aspects such as data migration when changing providers and long-term maintenance costs.

Seek and maintain contact with the user consultants of your new project management software provider. Ideally, you should work closely together to design an adapted introductory strategy for your company, thus creating further acceptance for the new software. Define clear responsibilities for the upcoming implementation project and conduct a test phase with a pilot group. Collect feedback and optimize processes before rolling out the software company-wide. Use change management strategies to ensure long-term acceptance.