In recent years, the financial services industry has impressively demonstrated how a traditional industry can gradually digitize itself with PPM. Read in this article:
- What challenges financial services providers must overcome
- What the modern method set looks like in project management at financial institutions
- Why the use of PPM solutions has already proven successful for digital pioneers
- What makes a successful PPM implementation
- When banks and financial services companies should implement PPM software
Financial Services: An industry in upheaval
The financial sector is in the midst of digital transformation: stationary bank branches are playing an increasingly subordinate role in banks' omnichannel strategy. Consumers are demanding 24/7 self-services and are prepared to give new, non-established market players a chance. Technology giants are launching innovative financial products and putting pressure on the industry with their digital expertise. At the same time, the number of regulations and the threat of cyber risks are increasing.
Digitalization management is therefore a cross-company responsibility that requires new forms of multi-project management.
PPM methods and solutions at leading financial services providers
Despite, or perhaps because of, disruptive market forces, the financial industry is now at the top of various digitization rankings. A key success factor for this enormous progress lies in decades of experience with various project management methods and standards. ITIL and Prince2 are widely used in the financial sector and have recently been increasingly supplemented or replaced by agile approaches such as Scrum and SAFe.
The digital champions of the industry have long since moved to managing their project management organization digitally. In the process, PPM solutions have proven to be an ideal reflection of leading project management methods.
The magic triangle of project management as a traditional constant
Regardless of the current project management philosophy, the focus of financial organizations is always on the magic triangle of project management with the factors of cost, time and quality.
In the dynamic market environment, however, selected projects must first be prioritized, for which PPM solutions in the financial services sector offer the appropriate set of methods. In an agile corporate setting, this sometimes means that projects that are already underway must be regularly re-evaluated and, depending on the analysis, put on hold or, in exceptional cases, even discontinued altogether. These supposed project setbacks must be taken into account accordingly in the triangulation.
10 advantages of a PPM implementation in the financial services industry
Proper digital transformation decisions are difficult to make or legitimize based on simple schemas. However, by using industry-specific PPM software, this can be managed in a comprehensible and efficient manner.
Project portfolio management for financial services can:
- map strategic organizational goals, link them to individual projects and track them meaningfully using KPIs
- prioritize projects, as well as individual project activities, based on clearly defined criteria
- create a balance between short-, medium- and long-term project goals for highest project effectiveness
- provide different organizational units with a meaningful overview of projects along the different project stages
- dynamically adjust cost and project plans across projects
- take capacity utilization into account proactively
- perform scenario calculations at different levels of complexity
- handle project communication transparently away from e-mails
- document relevant project experiences for the organizational learning curve
- automatically fulfill compliance requirements for project organization
With a PPM solution, financial services providers have a powerful set of tools for planning and managing their digital projects. Top-down and bottom-up approaches can coexist and positively influence each other.
Capture Practice Tip: Greenfield or Brownfield Approach to Project Management
Even if PPM software is recognized by decision-makers and practitioners as state of the art, this still does not ensure timely implementation. Many financial companies already use various individual solutions for their project management tasks and shy away from modernizing their project management organization.
Here, too, a solution is possible: PPM covers the entire project management lifecycle, but only individual modules can be used. Start with PPM areas that are not yet covered in your organization or are not having the desired effect in operations.
Whether demand management, resource management or financial management - with project portfolio management, the digital transformation of your organization is optimally prepared.
Free PPM Initial Consultation for Financial Service Providers
Our consultants will be happy to show you the possibilities of a PPM implementation during a live demo.