So your organization has decided it needs:

• Project management software
• Resource management software / Capacity planning
• Enterprise Project and Portfolio management

If you read my last blog you know before you call you need:

• Prioritized requirements of what you need today
• Prioritized requirements of what you might need tomorrow

Now you are ready to approach possible vendors and most will show you nothing of their solution or pricing without your name, social security number, and a copy of your diary. 

But wait!  Before you pick up the phone and start to engage project management software salespeople, you must know the 5 things you should NEVER say during your initial contacts.  These mistakes can cost your company hundreds of thousands of dollars and you your career!

5 things you should never say to a project management software salesperson!

1. Make me a deal!
2. Just give me a demo
3. I just want to see the reports
4. Give me a list of your competitors
5. Send me some testimonials

1) Make me a deal

Many people would rank buying software from a salesperson somewhere between used car shopping and buying a mattress.  Sadly, in many industries (including PM) the sales people are transitional, have little in depth knowledge of their industry, and are adept at high pressure tactics to "close the deal". 

Now is NOT the time to talk money.  You should do some research before hand to determine your budget and the relative cost of the systems you are interested in.  Also, it is no deal if the software is implemented and fails, turning everyone off to future efforts to automate your processes.  Focus on your requirements list and "lead with the need" and not the price.

2) Just give me a demo

One of the most important aspects of a project management software vendor is their ability to understand your unique requirements and paint a picture of a future using their tools with your processes to achieve your vision.  This is a huge test of their ability to listen, digest, and recommend solutions that will meet your needs (and not just their commission needs).

By asking for a demo first without testing those listening skills you will loose:

• Ability to assess the salesperson's experience
• Walkthrough of your lifecycle process
• Their ability to recommend best practices and enable new processes through the tools

If they can't listen to you and react to your needs during the sales process when you are an opportunity to them, imagine what will happen after the sale!

3) I just want to see the reports

This is probably the most common mistake I see.  Many vendors spend a majority of their development cycles building flashy reports.  They literally hypnotize customers with moving graphics, 3D images, and even sound! 

While these reports have a lot of entertainment value, they completely hides two very important facts:

1. As a manager what exactly would I do differently or better based on that report
2. How much time and administration must my organization do in order to produce that report

A much better approach?  Start with a list of management questions you want answered by a system - like:

1. What is the lifecycle of a project?
2. What is the business value of a portfolio?
3. What did people work on (utilization) and what are they projected (forecasted) to work on?
4. Are the right people (role-competency) working on the right projects (highest business value/priority)?
5. What is the supply of resources (by role and proficiency) and what is the demand on those resources (planned + actual projects)?
6. Show me the portfolio of a customers projects?
7. Show me the portfolio of an organization's projects they are responsible for?
8. Are we complying with our processes?
9. What are the key PM metrics and are we getting better or worse against them over time?
10. Compare the project budgets to the project status and work metrics?  Where are the trouble spots?
11. Are we standardizing repetitive work? 
12. Are we continuously improving process at the lowest possible level?

Once you have a prioritized list of management questions then the software vendor can show you how the system (1) collects necessary data and (2) how the reporting interacts with the user in a simple, sensible, and supportable fashion.

4) Give me a list of your competitors so I can compare solutions

This is one of my favorite questions I hear all the time!  I am forthcoming and point the company to the Project Management Software listing on Wikipedia, but many companies will only tell you the competitors that are less functional, more expensive, or both.  You can ask the question (to see who they think their competitors are) but you have to independently verify their lists or you may miss out on a better fit or lower cost alternative solution.

Also beware when large project management software vendors point you in the direction of large institutional research houses.  These vendor rankings are basically "magic" in how much revenue they generate for the analysts!  Often it is a status quo device to reward the richest companies that overcharge and under deliver, making up the difference in marketing dollars spent with the research houses.

Google, Wikipedia, and your PMI networks are your friend for finding reputable companies that should be on the short list of your potential project management software vendors.

5) Send me some testimonials

If you have a medium sized implementation (50+) you can't afford to take the vendor's word for how great their project management software is.  Ask for several references you can talk to directly and make a reasonable list of questions so you won't get nervous or forget when on the phone. 

Now to be fair to the vendor, you should have a high level of interest in that vendor so as not to waste the time.  That does not mean you should tell the vendor you have selected them (or are at least down to the last 3 companies).  These people are (hopefully) not compensated and are as busy as you are. 

This is the most important time in the selection process as you have the opportunity to (1) network with another successful user, (2) gain months of insight into working with the vendor, and (3) learn of the pitfalls of implementation.  You must plan your questions carefully!

In next week's blog I will give you the Top 6 Questions you Should Ask Project Management Software References when looking for a project portfolio management solution!

Virtually yours,

Nick Matteucci, MBA
ISSIG Chief Technology Officer

Author: Nick Matteucci is a co-founder of VCSonline.com a web 2.0 project management software company headquartered in St. Louis Missouri. Mr. Matteucci is also an active board member and the Chief Technology Officer for the PMI ISSIG. When not obsessing over virtual project management best practices Mr. Matteucci enjoys spending time with his wife and three small children. He also enjoys travel, running, and all things automotive.

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