MS Project is a scheduling tool. If you want to know how your department is doing and share information, you need a collaborative PM tool. Collaborative has become over-used lately, but this is the right focus.
You should be able to EASILY import your project schedule from MS Project or other sheduling tool into a collaborative environment where you can assign the tasks and gather real information on project performance. Your tool should also allow you to discuss the project openly, share documents (with versioning and checkout), manage issues, manage change, manage costs, rollup your task time into timecards, and other collaborative needs.
All projects should rollup to programs, department, division, and corporation so you can see how you are doing and present it to management. I have used a number of tools over the years. I have found, the easiest tools to implement are those that help the project manager and present to most to management (the people paying for the tool).
Tools such as eProject are easily adopted and provide a great ROI. Remember, MS Project is a scheduling tool and only one facet of project management.
Until MS Project Server and other tools are easier to implement and provide a better return; you will need to use your schedule/time management, resource management, cost management, quality management, change management, issues management, and communication management skills in an open environment. I have always looked for tools that are easy to implement and provide the right information to the right people.
Take a look at eProject. If you want to spend more money, PlanView is a great tool.