How Do I Choose The Right Project Management Tool? 7 Key Steps
Your project management tool is the communication hub and command center for your entire team for the lifespan of your project. Consequently, it's extremely important to know how to choose project management software—if you choose wrong, you can expect missed deadlines, incomplete deliverables, and unhappy stakeholders or clients.
Here, I'll outline six steps for how to choose project management software that will help you make an informed decision and select the best project management tool to transform the way you manage projects and lead to more efficient and successful outcomes.
7 Steps to Choose the Right Project Management Tool
Here are the six core steps to follow when selecting the best project management solution. Without this process, there's a chance you will buy project management software with scalability limitations, lack of support for the project methodology you are using, or pricing that you cannot cover in the long run.
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Step 1: Define Your Business Needs
The first thing you need to do is take a step back and analyze your business needs. For example, do you need a cloud-based solution or an on-premise solution?
A cloud-based solution is great for teams that need to work flexibly, collaborate frequently, and follow project progress at all times. Organizations in highly-regulated industries like healthcare or finance might be required to use on-premise software.
The following situations might indicate a problem that you can address with cloud-based project management platforms:
- Lack of communication between teams (i.e. misalignment)
- Disorganized project management and missed deadlines
- Inability to gain insights from customer feedback
- Poor time tracking, leading to uneven workload between teams
- Team collaboration happening through email
- Too many unproductive meetings
Start to rule out tools that don't fit the bill. This will leave you with a smaller pool of options that are better suited for your projects.
For example, the concept of enterprise project management tends to mean larger teams with more complex project needs, perhaps even remote team members around the globe. Budgets are higher, as are expectations.
Step 2: Consider Your Team's Needs
The next step is to think about what your team needs from a project management tool. Do they prefer something simple and straightforward? Or do they need powerful features and customization options?
Consider how big your team is, how many of them will need access to the software, and where they are located. If you have team members working remotely, you'll need a collaboration tool that makes it easy to stay connected no matter where they are.
The best tool for project management should align with your team's key skills for managing projects, ensuring efficiency and collaboration.
Step 3: Determine Your Budget
Your budget is an important factor to consider when choosing tools for a project manager. The project management software market size is vast, from free tools for small teams to enterprise-level PM solutions, so it's important to know how much you're willing to spend.
Consider the long-term costs of a tool as well. Some tools may have a lower upfront cost, but they might also require a subscription or additional fees for features that are essential for your project.
The pricing across tools varies astronomically. It’s important to consider how many seats you need, how guests are managed, and what add-ons are required, because it can spiral quickly.
By considering your budget and what you're willing to pay (or if you want a free project management app), you can further narrow down your options.
Step 4: Evaluate Features and Functionality
When looking at different tools, pay attention to features that are essential for your project and compare them side-by-side.
Some common project management features to look for include:
- Project Planning: Project planning tools provide roadmaps, timelines, and goal-setting to help structure phases and allocate resources.
- Task Management: Task management enables hierarchies, dependencies, and priorities to organize workflows and highlight key tasks.
- Automation: Automation features streamline project flow by handling routine tasks like notifications, assignments, and workflows.
- Communication: Built-in chat, threaded comments, and activity feeds support real-time collaboration.
- Resource Management: Resource management tools provide real-time workload distribution, allocation, and utilization insights to optimize team productivity.
- Time Tracking: Integrated time tracking helps users monitor their hours spent on tasks, aiding in productivity and accurate billing.
- Budgeting: Budgeting features track expenses and send alerts to help maintain financial oversight and keep projects within budget.
- Invoice Generation: Built-in invoicing automates billing, streamlines financial workflows, and improves cash flow by simplifying client invoicing.
- Project Dashboard and Views: Project dashboards show status and KPIs, with views like Kanban, Gantt, and list formats to fit project needs.
- File Sharing: Centralized file storage ensures secure, easy access to project documents, promoting collaboration and minimizing data loss.
- Reporting and Analytics: Reporting and analytics offer customizable reports to evaluate team performance and track project metrics over time.
Step 5: Consider Ease of Use and Integrations
Next, start evaluating specific project management software tools. As you look at different options, pay attention to the user interface and how easy it is to navigate. After all, a tool with a complex interface may steepen the tool's learning curve, which can impact productivity and slow down your project.
Moreover, look for usability factors that can help enhance your productivity, such as:
- Customizable Dashboards: Centralized, customizable dashboards offer quick visibility into project progress and team workloads.
- Drag-and-Drop Tools: These tools simplify task reorganization, creating a more intuitive workflow.
- Document Storage: Built-in storage centralizes files, keeping resources easily accessible.
- Task Automation: Tools with automated workflows reduce manual tasks, freeing up time for higher-priority work.
- Mobile Accessibility: Many platforms offer mobile apps, making it easy for team members to update tasks or communicate on the go.
- Visual Progress Indicators: Features like Gantt charts or Kanban boards give quick, visual insights into project timelines and progress.
Additionally, look at the integration options for each tool you're considering. If the tool can connect to any CRMs, file sharing tools, or messaging platforms you're already using, this will reduce wasted time due to switching between apps.
Step 6: Assess Onboarding and Security Features
In this penultimate step, it is important to evaluate two final important features: the onboarding process and the available security features.
Strong onboarding features simplify the learning process, reduce the time to productivity, and encourage team-wide adoption by making the tool easier to understand and use from the start. Look for comprehensive onboarding resources like setup guides, tutorials, live training, and a robust help center.
Equally important is the software’s security framework, as it ensures data protection and regulatory compliance. Prioritize platforms that include:
- Role-Based Access: Assign permissions based on user roles, controlling data visibility for security.
- Compliance Standards: Verify adherence to SOC 2, GDPR, or ISO 27001 for regulatory protection.
- Data Encryption: Look for strong encryption to safeguard information both at rest and in transit.
- Multi-Factor Authentication (MFA): Adds an extra layer of security, reducing unauthorized access risks.
- Regular Security Updates: Frequent updates keep software resilient against emerging threats.
- Audit and Activity Logs: Track user actions to monitor access, detect anomalies, and ensure accountability.
This combination of security features should provide a secure environment for your project data.
Step 7: Try Before You Buy
The final step is to try out the tools you're considering. Look for documentation, videos, and demos, as well free trials or freemium versions of the tools you're considering.
Most project management tools offer a free trial you can try before making a commitment. Demos and free trials allow you to see how the tool works in your work scenarios and if it's a good fit for your team.
Once you've gone through these steps and taken detailed notes, you can compile your learnings into an ultimate project management platform requirements checklist.
Tool Selection Checklist
Want a handy visual checklist to help you remember the steps? I've got you covered! Download our visual checklist here:
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What Types of Software Tools Do Project Managers Use?
The question "What tools do project managers use?" seems like it would have a simple answer— they use project management software. But project management software is a broad category. In fact, as a project manager, you will often use several different types of software tools to plan, execute, and track projects.
These tools can be divided into several categories, including project management software, resource management software, task management software, Gantt chart makers, digital asset management software, and agile tools.
Project Management Software
Project management software is the most common type of tool you'll use.
This type of software is used for task management, resource management, progress tracking, budgeting, and reporting. Common examples of project management software include Asana, Trello, Basecamp, Jira, and Adobe Workfront (find pricing for Adobe Workfront here).
Resource Management Software
Resource management software helps you track and allocate resources, such as human resources, equipment, and materials. It can also be used to schedule tasks and monitor utilization rates. Common examples of resource management software include Smartsheet and Microsoft Project.
Learn more about choosing the right resource management software here.
Task Management Software
Task management software is another tool that you might use to plan and track tasks. This type of software includes features for creating task lists, assigning tasks to team members, setting deadlines, and tracking progress. Common examples of task management software include Todoist and Wrike.
Gantt Chart Makers
Gantt chart makers help create visual representations of projects, including timelines, Gantt charts, and schedules. Common examples of Gantt chart makers include Microsoft Project and Smartsheet.
Learn more about Gantt chart software here.
Digital Asset Management Software
Digital asset management software is used to store and track digital assets. This type of software helps organize files, such as images, videos, and documents. Common examples of digital asset management software on the market include Adobe Creative Cloud, Dropbox, and MediaValet (get pricing info for MediaValet here).
Agile Tools
Agile tools help you plan and track agile projects. Common examples of agile tools include Jira, Trello, and Asana.
Why is Project Management Software Important?
Perhaps you're still wondering why you should get project management software in the first place. In modern business, project management tools and software are essential for streamlining workflows, tracking progress, and enhancing productivity. Here’s a breakdown of key benefits of PM tools and the challenges organizations face without the right tool for managing projects.
Key Benefits of PM Software
- Centralized Collaboration: A good project tool can help team members collaborate by allowing them to communicate, share project management images, and access project data in real-time. Without this, project information can become fragmented, leading to reduced productivity.
- Enhanced Task Management: Effective task and project management tools are central to organizing tasks, setting priorities, and keeping deadlines visible. They also provide the structure for organizing workload and tracking project status, which can help teams stay on target and increases accountability.
- Efficient Resource Allocation: Modern tools in project management often provide powerful resource management features to help allocate team members and assets strategically. Whether using on premise project management software or cloud-based solutions, project managers can prevent overburdening team members and avoid resource conflicts, enabling balanced workflows.
- Time Tracking and Accountability: With essential project management tools like time tracking, managers can gain insight into task duration and employee productivity. These features can also aid in forecasting project timelines and budgeting, improving overall cost management.
Challenges Without PM Software
- Missed Deadlines: Without a tool project management setup, tracking deadlines and milestones can be challenging. This lack of visibility can lead to missed deadlines and reduced client satisfaction.
- Communication Gaps: Communication is critical to any project’s success, and PM tools can centralized team conversations, updates, and files. Without standard project management tools in place, teams risk misaligned priorities, which can lead to delays and inconsistencies in project outcomes.
- Resource Waste: Managing resources effectively becomes difficult without dedicated tools for managing projects. PM software solutions can help teams avoid excessive spending, reduce underutilization, and keep projects within budget.
- Lack of Progress Tracking: Without the ability to track milestones and project health, companies struggle to detect risks or make necessary adjustments, which can result in last-minute issues and potential project failures.
By leveraging software tools for project management, companies can streamline processes, avoid common pitfalls, and achieve project success in competitive environments.
Best Practices for Using Project Management Software
Just getting the right project management software doesn't guarantee success. You also have to use the tools properly. Implementing good project management tools effectively involves a combination of proper setup, customization, and regular usage. Here’s how to get the best out of these tools:
- Define Clear Processes: Set up standardized workflows that align with your team’s needs. Many project managements tools offer customizable task labels, project phases, and templates, allowing you to structure your processes efficiently.
- Leverage Customization Options: Today’s new project management tools often allow for extensive customization to match unique project requirements. This customization can include:
- Custom Dashboards for different roles to help each team member stay focused on their tasks and KPIs.
- Tailored Workflows and Task Categories to reflect specific project stages, enhancing accuracy and clarity.
- Automated Notifications and Reminders to ensure timely updates and prompt task progression. By setting up custom alerts, you can streamline communication and reduce the need for manual follow-ups.
- Provide Training and Ongoing Support: Regular training sessions are vital to ensuring team members know how to use the software project tools fully. This training should cover everything from task assignments to status updates, helping team members understand how to log progress and manage tasks efficiently. Training on core project managers tools like time tracking, document sharing, and communication features is key.
- Foster Consistent Usage: To keep projects on track, ensure team members update task statuses, log hours, and share updates within the tool. Consistency is crucial for tools for project planning to provide accurate information and insights.
- Evaluate and Adjust Regularly: Periodic review of the chosen project management software helps to identify areas for improvement. Use analytics to assess bottlenecks and refine workflows, while adjusting custom settings as needed to align with evolving project demands.
- Integrate with Other Tools: Integration capabilities are essential when selecting project management software. Look for software that connects seamlessly with CRMs, finance tools, and communication platforms. This reduces the need for switching between platforms and creates a cohesive experience.
By using these best practices, tools for project management planning can become invaluable assets that not only organize tasks but actively contribute to project success. Following this approach ensures your team benefits from the right mix of efficiency, collaboration, and productivity with the best project management tool examples on the market.
What's Next?
The project management software market size is expected to grow significantly over the next few years. Follow my guide to make sure you pick the best one for you.
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