Effectively managing a project and meeting deliverables on time with budget is a big challenge for fund managers in any organization. When organizations are juggling dozens or hundreds of projects simultaneously – it seems challenging to handle resources and run a financial analysis.
However, in this era of digital transformation, businesses and organizations are exploring new ways to embrace innovation in portfolio management. If you’re wondering what benefits you can avail of with a strategic portfolio management system in your organization, this blog has some deep insights for you.
Read on to explore seven benefits of incorporating strategic portfolio management software:
Table of Contents
1. Better Decision
One of the highlighted benefits that you can avail yourself of with strategic portfolio management software is aid in making informed financial decisions. When you have the tools and data, you can better review it in real time and stay aligned with your organization’s strategic goals.
By evaluating your entire project portfolio, you will be able to assess how potential financial projects fit into your portfolio or disrupt current projects.
This way, you can instantly identify where you are on every project and how you can manage meeting your goals.
2. Enhance Risk Management
One of the critical parts of a fund manager’s job is to manage risk when handling investment portfolios. It will take a skill to balance the need to reduce risk in projects while accepting enough risk. But the challenges don’t end here.
It is expected to drive projects to completion and increase stakeholder value for maximum output. However, by utilizing efficient investment portfolio management software, you can easily evaluate risk before and during the investment project and make necessary adjustments to it.
3. Boost Project Delivery
Besides businesses suffering cost overruns, there are a number of industries that need help to handle investment projects. The reasons can be a lack of funding, poor forecasting or budgeting, resource management, and misalignment of goals that lead to failure and delay in projects.
However, utilizing strategic investment portfolio management software will allow you to plan business financial cases accurately and keep an eye on every aspect. This will help the fund manager or portfolio managers to improve delivery and performance in the project by 30% and reduce the delay or failure rate by 50%.
4. Single Source of Truth
It’s true in many organizations that most of the data can live in silos or get stuck in a spreadsheet with formulas that don’t connect or even update in real time. The investment updates are often shared via email or phone call. This way, the data doesn’t make it into the information that can be used to manage projects.
This can lead to out-of-date, inaccurate, or missing data, which derail investment projects. Therefore, investing in strategic investment portfolio management software becomes a necessity. This will bring transparency, which is essential for fund managers and critical investors to make good decisions.
With strategic portfolio management practices, you can also create a centralized database for all the project information so it can be analyzed on time. This way, your financial information will become the single source of truth any professional can rely on.
5. Keep Projects Aligned
For steadfast growth, every organization initiates or manages investment portfolios to keep the project aligned with business objectives and goals. Here, investment portfolio management software provides the framework to review potential projects and business cases to ensure alignment.
This will aid in reviewing the changes in individual projects and the entire investment portfolio to foresee conflicts. This way, you can make timely adjustments and gain access to insights with accurate information.
6. Better Project Controls
Fund managers in any organization always have their plates full of a number of projects. Whether they are dealing with IT projects and funding or with construction, tracking and managing investment, require more control over the projects.
This can be possible by integrating project controls such as portfolio management software to ensure you have access to all the necessary data and stay on track. This will aid you in assessing which project is impacting the other investments as well and how you can improve the performance.
7. Better Communication
Another great benefit of implementing strategic investment portfolio management software is fostering better communication. When you use a digital platform as a centralized database for data collection, you can easily share files and organize your workflow.
Moreover, depending on the access level you grant to the investors or fund managers, the executive and team members can view real-time data to stay the most informed. This will cut down on the number of phone calls and emails asking how things are progressing.
When your team is transparent about the financial project timeline and management, they can better forecast and schedule it. With accurate detail, the team will be on the same board and work on maximizing returns.
