Assessment of Project Management Practices in Case of Bank of Abyssinia PMO IT Projects
Assessment of Project Management Practices in Case of Bank of Abyssinia PMO IT Projects
Assessment of Project Management Practices in Case of Bank of Abyssinia PMO IT Projects
A project work submitted to Addis Ababa University school of commerce in partial fulfillment
of the requirements for the award of Masters of Arts Degree in Project Management.
I Biruk Dage declare that this project work, entitled “Assessment of project management practices
in case of Bank of Abyssinia PMO IT projects” is my original work submitted to the award of the
partial fulfillment for Degree of Masters in project management. It has not been presented for the
award of any degree in any other institution of higher learning to the best of my knowledge, and
all resources used have been duly acknowledged.
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Certification
This is to certify that Biruk Dage has carried out this project work entitled “Assessment of project
management practices in case of Bank of Abyssinia PMO IT projects” under my supervision. This
work is the original work of the candidate and it is sufficient for submission as the partial
fulfillment for the award of master’s degree in project management.
Signature_________________
Date______________________
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Acknowledgement
First of all, I am very grateful to Almighty GOD that it is impossible to get through anything
without HIM. Next I owe my deepest gratitude to my project work advisor Dr Adane Atara for his
valuable comments, constructive advice and generous support during this research. His valuable
comments and criticism have always inspired me to do things in a better way with. I am heartily
thankful to my family (D2T2JAZMB) their love and courage being by my side on all those ups and
downs in life are really invaluable. I would like to extend my special thanks to my friends and
colleagues for their unreserved help, care and encouragement throughout my study
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Contents
....................................................................................................................................................................... i
Declaration ..................................................................................................................................................... i
Certification................................................................................................................................................... ii
Acknowledgement...................................................................................................................................... iii
List of tables ................................................................................................................................................. iii
List of figures ................................................................................................................................................ iii
Acronyms and Abbrevations ..................................................................................................................... iv
Abstract ......................................................................................................................................................... v
CHAPTER ONE ........................................................................................................................................... 1
INTRODUCTION ........................................................................................................................................ 1
1.1 Back ground of the study .............................................................................................................. 1
1.1.1 Back ground of the organization ........................................................................................... 2
1.2 Statement of the problem .............................................................................................................. 3
1.3 Research questions ........................................................................................................................ 4
1.4 Research objectives ............................................................................................................................. 4
1.4.1 General objective ......................................................................................................................... 4
1.4.2 Specific objective ......................................................................................................................... 4
1.5 Significance of the study ..................................................................................................................... 5
1.6 Scope of the study ............................................................................................................................... 5
1.7 Limitation of the study ........................................................................................................................ 5
1.8 organization of the study ..................................................................................................................... 5
CHAPTER TWO .......................................................................................................................................... 7
LITERATURE REVIEW ............................................................................................................................. 7
2.1 introduction ......................................................................................................................................... 7
2.2 Theoretical review .............................................................................................................................. 7
2.2.1 project management body of knowledge ..................................................................................... 7
2.2.1.1 project integration management .............................................................................................. 10
2.2.1.2 project scope management ...................................................................................................... 11
2.2.1.3 project schedule management ................................................................................................. 11
2.2.1.4 Project cost management ............................................................................................................ 11
2.2.1.5 project quality management ........................................................................................................ 12
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2.2.1.6 Project resource management ..................................................................................................... 12
2.2.1.7 Project communication management .......................................................................................... 13
2.2.1.8 project risk management ............................................................................................................. 13
2.2.1.9 project procurement management ............................................................................................... 14
2.1.1.10 project stakeholder management ............................................................................................... 14
2.2 project management best practices ................................................................................................... 15
2.3 conceptual framework ....................................................................................................................... 16
CHAPTER THREE .................................................................................................................................... 17
RESEARCH METHODOLOGY ................................................................................................................ 17
3.1 INTRODUCTION ............................................................................................................................ 17
3.2 Research Design................................................................................................................................ 17
3.3 Description of target population and sampling procedure ................................................................ 17
3.4 Data collection sources, types and instruments................................................................................. 17
3.5 Data Analysis – Techniques and software ........................................................................................ 18
3.6 Validity and reliability ...................................................................................................................... 18
3.7 Ethical consideration ......................................................................................................................... 19
CHAPTER FOUR....................................................................................................................................... 20
DATA ANALYSIS AND DISCUSSION................................................................................................... 20
4.1 Introduction ....................................................................................................................................... 20
4.2 Response rate .................................................................................................................................... 20
4.3 Demographic profiles of respondents ............................................................................................... 20
4.4 Assessing the General project management practices raised ............................................................ 22
4.5 Assessing PM practices using PMBOK ............................................................................................ 24
4.6 Assessing the project’s success ......................................................................................................... 33
CHAPTER FIVE ........................................................................................................................................ 35
SUMMARY, CONCLUSION AND RECOMMENDATIONS ................................................................. 35
5.1 Introduction ....................................................................................................................................... 35
5.2 summary of the findings ................................................................................................................... 35
5.3 Conclusions ....................................................................................................................................... 36
5.4 Recommendation .............................................................................................................................. 37
ii
List of tables
List of figures
iii
Acronyms and Abbrevations
PM – Project Management
iv
Abstract
The study is conducted to assess the project management practices of Bank of Abyssinia based on
the ten knowledge areas putted on project management body of knowledge. Both primary and
secondary data were employed, both qualitative and quantitative approaches were practiced. A
questionnaire which is adopted from PMBOK was used and data was collected from 40
respondents out of the total distributed to 47 respondents. The data were analyzed using SPSS
version 23. The findings from the study shows that project management practices are practiced
at good level which implies little additional efforts and knowledgeable management can maintain
and improve those practices. More over improving the practices of risk, management by
Developing risk management plan, identifying risks, performing qualitative and quantitative risk
analysis, planning risk response, implementing agreed upon risk responses and monitoring risks.
developing standard project management practices, providing project managers and team
members adequate project management practices, empowering the program management office
and project managers to exercise standard project management practices were recommended by
the researcher.
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CHAPTER ONE
INTRODUCTION
1.1 Back ground of the study
A project can be defined as a temporary endeavor undertaken to create a unique product, service
or result consists of a set of activities, whose executions take time, require resources, and incur
costs (PMBOK 2012). Precedence relations may exist between activities these relations express
technical or organizational requirements with respect to the order in which activities must be
processed or with respect to their timing relative to each other. Moreover, the scarcity of the
resources allocated to the project generally gives rise to implicit dependencies among the activities
sharing the same resources, which may necessitate the definition of additional precedence relations
between certain activities when the project is scheduled. A project is carried out by a project team,
has a deadline, i.e., is limited in time, and is associated with one or several goals whose attainment
can be monitored (Schwindt, 2015).
Project management is recognized to be the key enabler of business change and a vital contributor
to future business success (Whitty and Maylor,2009). “There is no measurable value added by
implementing best practices of project management based on the notion that contemporary concept
of project management lacks theoretical foundation and is based on a narrow and implicit theory
that requires further development and enrichment” (Koskela and Howell,2002). Traditional project
management causes self-inflicted problems impacting project performance negatively or worse,
causing projects to fail (Koskela and Howell,2002). Recent studies point towards the lack of clear
definitions of project management and project success (A. J. Shenhar and M. Wideman,2000).
Despite the vast array of project management literature available, the complex question about the
contribution of project management toward project success remains unanswered. To some extent,
the corner stones of project success achieve general agreement, whereas others have massive
disagreements ( T.cooke davies,2010). Apparently, scholars, researchers and practitioners fail to
agree on the influence of project management on project success and a lot of ground is yet to be
explored.
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Project management is about how to apply and manage resources to accomplish a temporary
endeavor within a given schedule, budget and quality constraints Project Management Institute,
(PMI 2017).Project management practices and theories have advanced in recent decades and
substantial growth has been experienced in the adoption of project management disciplines to
accomplish work in different industries and sectors (Winter and Szczepanek, 2008)
“Business today is operating under high level of uncertainty, projects implementation is open to
all sorts of external influence, unexpected events, ever growing requirements, changing constraints
and fluctuating resource flows. This clearly shows that if projects are applied and steps are not
taken in order to manage them effectively and efficiently, the chance of failure is high Although it
is difficult to disprove the notion that project management practices have improved fairly over the
last three decades” (White and Fortune, 2002).
The study aimed at assessing project management practices of IT projects administered by the
PMO of the bank.
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1.2 Statement of the problem
In Ethiopia The banking industry is in a state of transformation and becoming ever more complex.
Fast changes in the communication landscape and financial industries, resulting from
technological change and the development of new services, are affecting the core business of
banking operations. The industry is to transfer on emerging higher value-added services, which
often require significant investment in new network technologies. As cited by Mortensen (2013),
Many projects around the world keep failing, resulting in loss of millions of dollar for
organizations This persisting challenge has led many project management professionals to attempt
to identify the influencing factors that need to be tackled head-on to produce a successful project
management outcome. There is an increased assumption that project management standards, tools
and techniques are commonly employed by PMs worldwide (Ozguler,2016). This assumption
about project management has dominated research in recent years (e.g. Lindehammar and
Cederhill (2017). One of the fundamental concerns in project management regards the extent to
which PMs use and implement Project Management Practices, and the implications for project
success Papke-Shields (2010). In addition, a mismatch between the promises offered by project
management practices and the project outcomes has equally been recognized (White and Fortune,
2002). Project outcome is known to be influenced by many factors, internal and external to a
project. There is a large body of literature on “critical success factors”, and project management
techniques are included in these lists (White and Fortune 2002).
Some of the early studies carried out in Ethiopia have assessed project management practices
across different projects. Tigist sileshi’s (2017) study on Japanese social development trust fund
grant project revealed that some project management knowledge areas i.e scope, time, quality, cost
and integration management were not practiced effectively practiced in the project and the
remaining knowledge areas were practiced traditionally. merima Nasser’s (2019) study on
commercial bank of Ethiopia IT projects have assessed project management practices based on
PMBOOK and find out that except time management and human resource management the other
knowledge areas are well practiced. Safework mulugeta (2019) also studied the relationship
between time management practices and project success, results from safework study shows that
there is a positive relationship between project time management practices and project success.
The study assisted the researcher to conclude that project time management practices are practiced
with relatively low level at the Bank of Abyssinia. but this study is limited in several ways out of
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the numerous factors it tries only to figure out the impact of time management practices. Befkadu
w.kidan (2017) in his paper tries to assess project management practices and project success in
Ethiopia real estate industry his findings reveal that Project integration, scope, time, HR,
procurement are well managed in the Industry. In addition to this, Project initiation process groups
and project closing process group are practiced well and consistently. On the other hand, risk, cost,
stakeholder, communication and quality knowledge areas and practices are poorly practiced or
inconsistently applied (Befkadu w.kidan, 2017). It is also found that the practice of project
management has significant contribution to success of Ethiopian Real Estate projects. Existing
literatures. The results from current literatures makes the researcher to ask whether Project
managers aware of standardized project management methods, tools and techniques and to what
extent are these Project Management Practices used? As a staff of BOA these questions leads the
researcher to study about the implementation of project management Practices in BOA IT projects.
To what extent are formal project management practices implemented by PMO in Bank of
Abyssinia?
How project management practices help bank of Abyssinia to improve its projects
performance and success?
According to PM knowledge areas Which project management practices should be
improved in bank of Abyssinia?
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1.5 Significance of the study
The findings of this study could be used by Banks and similar organizations in Ethiopia to see
the gap and address issues in project management practice. This study is expected to reveal the
strength and weaknesses in implementing core project management practices, to create awareness
for the top management how core project management practices can impact the successful
completion of a project. Moreover, since existing literatures on project management practices are
focused on the construction industry, this study which is unique in its nature is expected to add
knowledge to the existing literature on project management practices. It is also expected to suggest
important recommendations which would be importance for the company, which frequently runs
projects. Moreover, the study is expected to be used as an input for individuals who are interested
in the subject matter to undertake similar studies.
This study is composed of five chapters. The first chapter is an introductory chapter which includes
background of the study that gives insight on project management practices and base for the study.
The second chapter is all about review of related literature. It contains theoretical and empirical
parts that are used as frame work and supportive information for the study. Research methodology
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which is the third chapter emphasis on which data source are used, what technique of sampling are
the most appropriate and how the gathered data are presented and analyzed. Chapter four contains
the major parts of this research paper which are data presentation and data analysis. Chapter five
is the last and the most important chapter. All findings of the study are included followed by
conclusions and recommendations.
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CHAPTER TWO
LITERATURE REVIEW
2.1 introduction
This chapter will present the theoretical background of project management and project
management practices. In addition to that it will introduce both theoretically and empirically
focused literature. This is followed by a systematic review covering the use of Project Management
Practices in projects in Ethiopia and beyond to identify a gap in the knowledge of the use of Project
Management practices.
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Hällgren (2012) argued that there is need for a framework to strengthen project management
practices to achieve a high level of project success and fill the gaps in the current body of
knowledge. The standards and procedures laid out by international institutes such as PMI, AIPM,
APM and IPMA on project management did produce support from organizations around the world
on project management practice.
The guidelines put forward by International Project Management Association (IPMA) are recorded
in International Competence Baseline (ICB) and was one of the oldest project management body
of knowledge Ghosh and Vogt, (2012). Project Management Institute (PMI) published its first
white paper on project management practices in 1987 and since then the standards set forth by
PMI are recorded in Project Management Body of Knowledge (PMBoK) guide. Bourne (2011)
asserted that there is critical difference in the PMBoK and ICB in terms of competencies. Nahod
(2013) defined competence as a collection of knowledge, experience and behavior of the individual
and claimed that the project success is dependent on the competencies of the PM and project
management practice. Grisham (2011), however, criticized that the ICB project management
practices focus on skills assessment and competencies of the PM, whereas PMBoK was focused
on the processes to achieve project success. The ICB management practices are related to the
behavioral characteristics (people skills) of the PM and certification procedures are more rigid than
the PMI sponsored Project Management Professional (PMP) certification.
It is critical to state that there are several project management standards and guides as developed
by different institutions such as The British Standard Institute, American National Standards
Institute, International Standard Organization, Association for Project Management, Project
Management Institute, and Capability Maturity Model Institute. Currently, the following Bodies
of Knowledge and Guides exist; PMI Project Management Bodies of Knowledge (PMBoK),
OPM3, APM BOK, BS6079, MSP, P3M3, MSP, DIN –Project Management Standard, DIN
69901-2 PM Process Model, AFNOR Standards, P2M, PMI Unified Project Management Lexicon,
ANSI/PMI 99- 001-2004, and ISO-21500 Guide to PM. However, Projects in Controlled
Environments (PRINCE) was one of the global project management standards developed in 1975
by Simpact Systems (Ghosh and Vogt, 2012).
The approach underwent seven versions with the last one published in 2009 under the edition of
PRINCE2 (Bentley, 2010). This project management body of knowledge was developed by
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consortium of one hundred fifty organizations and it is the default standard followed by
government agencies and private organizations in United Kingdom. PRINCE2 is a structured
framework made of four elements segregated into seven underlying principles, seven themes,
seven processes and forty activities. Anantatmula (2008) argued that even though PRINCE2 is
found to be a standard practice in many project environments, however, for project with multilevel
stages, it is ineffective due to controlling the project by stages principle. Hence, PRINCE2 differs
from PMBoK and ICB practices which focus on the risk management.
Another body of knowledge Project Management Association of Japan (PMAJ) published a unique
project management practice framework for the Japanese economy and labelled it as Project and
Program Management of Enterprise Innovation (P2M) (Zwikael, 2009) in 2005. The approach
highlights the key challenges faced by professional PMs in Japan and how to handle complex
projects to drive the economy forward at a fast pace. Zwikael (2009) asserted that the P2M was
developed to complement the successful ICB project management practice with greater emphasis
on the regional challenges in Japan, however the principles built in this approach can be applicable
to other industries such as construction.
Soderlund (2011) opined that the P2M body of knowledge divides project into multiple
modules for better resource allocation to increase the chances of project success. However, Ohara
(2005) argued that the P2M approach is focused on efficiency and not on the lines of project
success. Ghosh and Vogt, (2012) stated that P2M differs from the popular PMBoK in multiple
ways. For example, the P2M project management approach focus primarily on the organization
and program. This would be a standard framework to follow for portfolio of projects rather than
just one project as stated in PMBoK. Similarly, Peng, Junwen, and Huating (2007) found that the
PMBoK practice is limited to an individual project and has an end date; however, P2M approach
is an ongoing operation and involves all stages of the project life cycle through scheme, service
and system model.
The Association of Project Management (APM), body of knowledge referred to in the United
Kingdom as IPMA was established to fill the existing gap in the PMBoK in the stakeholder
interactions and interpersonal skills apart from the project execution guidelines. APM issued a
fifth edition of the guide book APMBoK in 2005 and also offer a certification program similar to
ICB and IPMA Ely et al (2010). There is high level of intersection between APMBoK and PMBoK,
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the former with greater focus on topics of safety, skills of a PM, interpersonal skills with
stakeholders and employees (Qureshi, Warraich and Hijazi 2009). APMBoK focuses on high level
overview of project management and provide guidelines for those competencies PMs should
understand but not necessarily the steps the managers should take to implement.
Apart from the application of the body of knowledge, the natures of industry in which projects are
to be executed and implemented determine which PM standards and methods to use. PRINCE2
and MSP are more likely to be relevant to organizations that work closely with the local
government or civil service whereas, PMBoK are more relevant to large and complex projects but
can also be used for small scale project depending on the industry (Abdulrahman,2019). The size
of projects and company’s dependency on sharing information about projects will further
determine the choice of selection of project management practices. In addition, Golini,
Kalchschmidt, and Landoni (2015) the adoption of Project Management Practices helps non-
governmental organisations (NGOs) when carrying out projects in developing countries. This
study assesses the project management practices of the bank based on the Project Management
Bodies of Knowledge (PMBoK).
According to PMBoK, (2017), project management is divided into ten areas; integration, scope,
schedule, cost, quality, resource, communication, risk, procurement and stakeholder management.
These ten project management areas and their inherent tools and techniques were investigated, and
it is worth emphasizing that this study has investigated project management practices.
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responsible for the project as a whole” (PMBOK, 2017). Project integration management processes
includes developing project charter, developing project management plan, direct and manage
project work, manage project knowledge, monitor and control project work, perform integrated
change control and close project phase (PMBOK, 2017).
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will establish an authorized a baseline for the project cost. As cited by Abdurrahman b (2019)
Within the practice of Project Cost Management, trends include the expansion of earned value
management (EVM) to include the concept of earned schedule (ES). ES is an extension to the
theory and practice of EVM. Earned schedule theory replaces the schedule variance measures used
in traditional EVM (earned value - planned value) with ES and actual time (AT). Using the
alternate equation for calculating schedule variance ES - AT, if the amount of earned schedule is
greater than 0, then the project is considered ahead of schedule. In other words, the project earned
more than planned at a given point in time. The schedule performance index (SPI) using earned
schedule metrics is ES/AT. This indicates the efficiency with which work is being accomplished.
Earned schedule theory also provides formulas for forecasting the project completion date, using
earned schedule, actual time, and estimated duration (PMBOK, 2017).
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right time and place. Project resources management consists of several processes such as
organization, managing and leading project team. The project team consists of individuals with
assigned roles and responsibilities who work collectively to achieve a shared project goal. The
project manager should invest suitable effort in acquiring, managing, motivating, and empowering
the project team. Although specific roles and responsibilities for the project team members are
assigned, the involvement of all team members in project planning and decision making is
beneficial. Participation of team members during planning adds their expertise to the process and
strengthens their commitment to the project. The project manager should be both leader and
manager of the project team. In addition to project management activities such as initiating,
planning, executing, monitoring and controlling, and closing the various project phases, the project
manager is responsible for the team formation as an effective group.
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2.2.1.9 project procurement management
According to PMBOK (2017), “Project Procurement Management includes the processes
necessary to purchase or acquire products, services, or results needed from outside the project
team”. The management and control processes required to develop and administer agreements such
as contracts, purchase orders, memoranda of agreements (MOAs), or internal service level
agreements are included in Project Procurement Management (PMBOK, 2017). “The personnel
authorized to procure the goods and/or services required for the project may be members of the
project team, management, or part of the organization’s purchasing department if applicable”
(PMBOK, 2017).
Project procurement management consists of all processes essential for purchasing and/or
acquiring about products and services (Schwalbe, 2015). Procurement management also comprises
of managing contracts and controlling processes and change which may be required to develop
and administer contracts and purchase orders. Procurement management focuses on documenting
decisions related to project procurement, obtaining sellers’ responses and selecting sellers as well
managing procurement relationships and monitoring all activities related to performance of the
contract. There are several inputs used by project procurement management (i.e. requirements
documentation, project schedule, stakeholder register), and tools (i.e. expert judgement, bidder
conference, performance reporting) as well as some inputs (i.e. procurement documenting, source
selection criteria, project document updates).
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2.2 project management best practices
Pinto (2007) emphasized that there is a limitless search for general standards of excellence against
which firms can compare their practices, gain important tips for improvement, and continuously
measure their outcomes. The search for effective practices in project management clearly is an
ongoing process. According to Kerzner (2009), best practice is defined as something that works,
something that works well, something that works well on a repetitive basis; something that leads
to a competitive advantage something that can be identified in a personal to general business;
something that keeps the company out of trouble and, if trouble occurs, the best practice that will
assist in getting the company out of trouble.
Other project experts have described best practices as past experiences that have worked well for
the project manager or are known to the project manager based on the experiences of others in
similar situation (Wysocki, 2007). Qureshi, warraich and Hijazi (2009) describe best practice as a
specific type of professional or management activity that contributes to the execution of a process
and that may employ one or more techniques and tools. Angelides (1999) portrays best practices
as The right way of doing things. Watson (2009) puts best practices as what makes the real work
a success. Shenhar et al., (2007) defined best practices as understanding the inherent uncertainties,
complexities, and variables that predict project success. In all of these definitions the common
assertion that project best practices enhance the effectiveness and efficiency that will ultimately
lead to success (Morrison & Brown, 2004); improve project performance; and help project
management professionals to select priorities for future development (Besner & Hobbs, 2006).
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2.3 conceptual framework
The proposed conceptual framework for this research shows the practices with the knowledge
areas. According to PMBOK (2017) project knowledge areas are knowledge’s within the
profession of project management. The project management body of knowledge includes proven
traditional practices that are widely applied as well as innovative practices that are emerging in the
profession.
project
project integration project risk
quality management managment
managment
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CHAPTER THREE
RESEARCH METHODOLOGY
3.1 INTRODUCTION
This section of the study presents the research methodology used to assess the practices of project
management. It also describes and justifies the data type and sources, target population, the method
that employed in data collection and methods of data analysis
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leaders and project team members who are participated in IT projects undertaken by Bank of
Abyssinia PMO. The questionnaire developed is based on reviewed literature and customized to
the case under study. The questionnaire was validated by reviewing these and other literatures that
are both empirical and theoretical. Secondary data was collected from documents related to the
project like project report status, project contract document and project exit reports.
Cronbach's
Alpha Based
on
Cronbach's Standardized N of
Alpha Items Items
.965 .966 54
Source: Own survey 2020
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Reliability test of the constructs
With regards to ethical consideration, the purpose of the study was clearly communicated to the
organization and to each respondent. Thus, data was collected with the permissions of the
organization and individuals who were participated in the questionnaire and interview. Moreover,
the data sources from the organization and individual participants were kept confidential.
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CHAPTER FOUR
F 8 20%
31-40 14 35%
41-50 1 2.5%
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Project team 4 10%
leader
Project manager 3 7.5%
Economics 1 2.5%
Marketing 2 5%
management
Project 4 10%
management
Computer science 5 12.5%
Electrical 1 2.5%
engineering
MBA 17 42.5%
Social science 1 2.5%
6 Work experience Below 5 years 10 25% 40 100%
6-10 years 18 45%
Above 10 years 12 30%
7 Project experience < two years 18 45% 40 100%
2-6 years 22 55%
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4.4 Assessing the General project management practices raised
This portion of the chapter presents results of the data collected from respondents as follows. Mean
Values have been interpreted by adopting the criteria suggested by (Scott, 1999). He suggested
that for Likert type scale ranging from 1 (Strongly Disagree/ highly dissatisfied) to 5 (Strongly
Agree/Highly Satisfied), interpretation should be like; mean up to 2.8 is considered as Disagree,
from 2.9 to 3.2 means neutral or neither disagree nor agree and mean above 3.2 is considered as
an agree
As shown in the table 4.4.1 below 26 or 65% of respondents strongly agreed that The need and
benefit of project management is recognized by the bank, 12 or 30% of respondents also agreed
on the matter. However, 2 respondents are neutral. This implies that the need and benefit of Project
management is recognized by the bank. When we come to the issue of support the management
provided for the development of project management in the bank 35 respondents that constitute
87.5% of the respondents are agreed on the support. Four respondents become neutral about the
support and one respondent disagree about the support the management provides. With a total
mean of 4.25 the implication leads to there is a support from the management of the bank for the
development of project management. Regarding the issue of Project management trainings for the
team by the bank, 57.5% of respondents are agreed on provided training, 35% of respondents are
neutral about the training and 7.5 respondents disagree on the training provided by the bank. A
mean of 3.73 shows that there is an agreement on trainings provided by the bank related to project
management.
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Table 4.4.1 General Project management practices
In terms of standard project management processes and methodologies the bank used, only 5 or
12.5% of respondents strongly agree, 13 respondents or 32.5% of the respondents agreed on the
standard. But 18 respondents that consist 45% of the respondents are neutral about it and 4
participants disagree about the standard that the bank follows. With an average mean score of
3.43% participants are agreed on the standard. Regarding the intense knowledge project managers
of the company owns, 15% of respondents strongly agree, 75% agree, 7.5% are neutral and 2.5%
disagree. With a mean average of 4.03 respondents have agreed about the knowledge of the project
managers. In relation to the formal application of project management processes, methodologies
and procedures in the bank 23 respondents or 57.5% of respondents put their agreement, 37.5% of
respondents or 15 respondents become neutral and 2 participants hesitate to agree about the formal
application. With an average mean of 3.5 we can conclude that there was an agreement about the
formal application of processes and methodologies.
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4.5 Assessing PM practices using PMBOK
In this study The assessment of project management practices is totally based on project
management knowledge areas (PMBOK). This is attained by mean scores of responses from
respondents under each knowledge areas. This is presented below
As shown above on table 4.5.1 8(20%) of respondents strongly agreed that a project charter was
developed, 17(42.5%) of respondents also agreed on the development of project charter. 14(35%)
of respondents were neutral and 1(2.5%) respondent disagree about the project charter
development. A mean average score of 3.8 shows that a project charter was developed. Regarding
the development of project management plan 14(35%) of respondents strongly agree also 16(40%)
of respondents agree on the development of the project plan. 8(20%) of respondents were neutral
and 2(5%) of respondents hesitate to agree. This implies that a project management plan was
developed.
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About the management of the project work 10(25%) of respondents were strongly agree, 20(50%)
of respondents were also agreed. Another 10(25%) of respondents were neutral about management
of the project work. With a mean average of 4 we can conclude that the project work is managed.
In terms of monitoring and controlling project work 9(22.5%) of respondents strongly agreed that
the project work was monitored and controlled. 22(55%) of respondents agreed that the project
work was monitored and controlled and 9(22.5%) of respondents kept neutral about it. With an
average mean of 4 we can conclude that the project work was monitored and controlled. Regarding
the control of changes happen in the project 7(17.5%) of respondents were strongly agreed about
it, 21(52.5%) of the respondents agreed about the control of changes in the project. 9(22.5%) of
respondents kept neutral about it and 3(7.5%) of respondents disagreed about the control of
changes in the project. Average mean of 3.80 implies that change was controlled in the project.
On the above table regarding the management of knowledge 7(17.5%) of respondents were
strongly agreed that knowledge was managed in the project.17(42.5%) of respondents agreed on
the knowledge management. Whereas 15(37.5%) of respondents were neutral about it only
1(2.5%) of respondents disagreed about knowledge management this implies that knowledge was
managed in the projects. Hence, based on the above description and average mean of 3.9 the factors
under project integration management get it was shown that the practice of project integration
management is carefully done on IT projects of Bank of Abyssinia.
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As shown in the table 4.5.2 above the plan scope management was defined in the project was
strongly agreed by 12(30%) of respondents, 18(45%) of respondents also agree, 8(20%) of
respondents kept neutral and 2(5%) of respondents disagree about it. An average mean of 4 implies
that scope management plan was defined in the project.in response to the question that intended to
know whether requirements were clearly stated in the project 12(30%) of respondents strongly
agreed,17(42.5%) of them agreed, 11(27.5) were neutral. An average mean of 4.03 shows that
requirements were clearly defined in the projects.
Regarding whether there was a defined scope or not the above table shows that 10(25%) of
respondents strongly agree, 21(52.5%) of respondents agree, 9 (22.5) kept neutral. An average
4.03 shows that there was a defined scope in the projects. The other one in the table is the creation
of WBS (work breakdown structure) 9(22.5%) of respondents strongly agree that there was a
created WBS, 18(45%) of respondents also agreed about it,12(30%) of respondents were neutral
about work breakdown creation and 1(2.5%) respondent disagreed about it. In response to the
question raised to know whether there is a validated scope or not 9(22.5%) of respondents strongly
agreed about the scope validity,18(45%) of respondents also agree and 13(32.5%) were neutral
about it. The last part of the table was raised in order to know changes to the scope were controlled
5(12.5%) respondents strongly agreed about it, 14(35%) respondents also agree, 16 (40%)
respondents were neutral about it and 5(12.5%)respondents disagreed about the control of change.
Based on the above discussion and table with an average mean of 3.88 we can conclude that the
practice of project scope management was well practiced by the bank.
Below table 4.5.3 shows the responses collected from respondents in relation with project
schedule management.
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Table 4.5.3 project Schedule management practice
Regarding plan schedule management, we have get an average mean of 3.70 which implies that
schedule management plan was developed. Regarding activities, we have get an average mean of
3.93 from respondents which in turn implies activities were defined in IT projects of the bank.
Also in the sequence of activities we have got and average mean of 4.08 implying that sequence
of activities was defined for the projects. Regarding activity duration, the response shows that an
average mean of 3.75 which tells us activity duration was estimated well for the projects. from the
above table with an average mean of 3.82 we can conclude that project schedule management is
well managed by the projects.
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Table 4.5.4 project Cost management practice
As Table 4.5.4 shows that the response from the respondents regarding plan cost management have
got an average mean value of 3.75 which implies that cost management plan was developed for
the projects carried. Regarding costs estimate the response shows that an average mean of 3.83
was obtained implying that cost estimates were developed. In response to the determined budget
the respondent’s response got an average mean of 3.73 implies that budget was determined for the
projects. The other was related to cost control which have got an average mean of 3.55 from
respondents that implies costs were controlled in the projects. With an average mean of 3.71 we
can conclude that project cost management practice is well practiced in bank of Abyssinia IT
projects.
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In response to the question related to project quality management the above table 4.5.5 shows that
plan quality management was developed is agreed by respondents by a mean average of 3.75.
regarding the management of quality, a mean average of 3.65 was scored implying that quality
was managed in the projects. For the question ‘quality was controlled’ an average mean score of
3.60 is obtained which shows quality was controlled in the projects.
From the above table and discussion, we can conclude that the project quality management practice
of the bank is in a good level.
as the above table 4.5.5 shows the response collected from respondents regarding plan resource
management was developed have got an average mean of 3.88 indicating that plan resource
management was developed for the projects undertaken. About activity resources were estimated
the respondents responds an average mean of 3.68 which also indicates that activity resources were
in fact estimated for the projects. In response to the question raised to know whether resources
were acquired or not the response have got 3.65 mean average showing that essential resources
were acquired for the projects. Regarding the development of the project team respondents were
agreed with and average mean of 3.95. by referring this we can conclude that project teams were
developed for projects. In accordance with the management of the team respondents were asked
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to put their agreement and we got an average mean of 4.03 for it implying that the project team
developed for the projects was managed properly. Finally, the respondents were asked to their
level of agreement regarding the control of resources dedicated for the projects and we have got
an average mean of 3.55 which shows resources were controlled.
Regarding communication management practices of the projects 3 questions were put for
respondents to show their level of agreement for the first question plan communication
management was developed we have got here an average mean of 3.80 which implies that the plan
communication management was developed for the projects. Regarding the management of
communication an average mean of 3.78 was scored which implies that communication was
managed in the projects. Also there was an average mean of 3.93 agreement for the question
communication was controlled. Therefore, based on the above data we can conclude that with an
average mean of 3.83 communication management practice is well practiced by the projects under
this study.
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Table 4.5.8 project risk management practice
In response to risk management practices seven questions were prepared. The first question raised
for respondents was weather a risk management plan was developed for projects or not. Regarding
this we have got an average mean score of 3.48 which implies there was a developed risk
management plan. Regarding weather risks were identified or not we have got an average mean
score of 3.30 which implies risks were identified for the project. About qualitative risk analysis
were developed we have got an average mean score of 3.03 which implies that qualitative risk
analysis is not performed well or in satisfactory way. the other is quantitative risk analysis which
get an average mean score of 3.15 which also shows the analysis that was performed for the
projects is not well. In response to prepared risk response the respondents response has got an
average mean score of 3.10 which in turn implies the prepared risk response is not that much good.
Also in agreed up on risk responses implementation we have got an average mean score of 3.13
which shows there was some problem in implementing agreed up on risk responses. The final
question raised for respondents were weather risk was monitored or not which get an average mean
score of 3.15 showing there was some gaps in monitoring risk. From the above table and
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discussion, we can conclude that with an average mean of 3.19 risk management practices were
not practiced in a satisfactory way in the projects.
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* Q= Frequency source: own survey, 2020
As the above table 4.5.10 shows four questions were prepared for respondents to put their level of
agreement in relation to project stakeholder management practices of the projects. Regarding
stakeholders were identified an average mean score of 4.20 was scored implying that stakeholders
of the project were identified well. Regarding stakeholder engagement plan the response collected
from respondents have got an average mean score of 3.78 showing that stakeholder engagement
was planned for the projects. About the management of stakeholder engagement an average mean
score of 3.95 was scored indicating that stakeholder engagement was managed well in the projects.
Regarding the monitoring of stakeholder engagement an average mean score of 3.80 was scored
indicating that stakeholder engagement was monitored in the projects. With a total average mean
score of 3.93 we can conclude that the practice of stakeholder management in the projects were
well practiced.
As shown above all standard deviations are between zero and one and positive
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Table 4.6.1 project success
In response to the question raised about IT projects completion within budget an average mean
score of 3.2 was gained which implies that projects were completed within budget but with
minimum cost overrun. About the results of IT projects met customers’ requirements the response
from respondents shows an average mean of 3.78 which implies in fact customers’ requirements
was met. Regarding the contribution of IT projects for the overall operational performance of the
bank we have got an average mean of 4.13 which indicates the higher contribution of the projects
for the bank. In relation to Project management practices adopted by the bank were helpful for the
success of the projects an average mean of 4.15 was obtained showing that project management
practices adopted were helpful for the overall success of the projects. From the above table 4.6.1
we can conclude that with an average mean of 3.8 IT projects in the bank are very valuable for the
overall performance of the bank and successful in their implementation.
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CHAPTER FIVE
Concerning the general project management practice questions the respondents have put
their agreement that the need and benefit of project management is recognized by the bank
management. This was evidenced by; the bank has provided support for project
management development like providing trainings to its teams, following standard project
management processes, trying to put in place project managers who have broaden project
management knowledge base.
Regarding education 60% of respondents have achieved second degree and 40% have first
degree indicating that the team members of the projects have sufficient educational
qualification to run the project. Whereas the field of study the team members passes
through is not related to project management for most of the respondents surprisingly, only
4 or 10% of respondents were learned project management in their educational history.
About project experience above 45% of respondents or 18 respondents project experience
is below 2 years. And 55% of respondents or 28 respondents project experience ranges
from 2 up to six years.
Related to project management trainings provided by the bank, 62.5% of respondents or
25 respondents are not provided with project management trainings. Only 37.5% of
respondents or 15 respondents were provided with trainings related to project management
by the bank.
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The other finding here is gender mix of the team members. Based on the respondents
answer Among the respondents 80% (32) were males and only 20% (8) were females.
Regarding the knowledge areas, the practice of risk management has got a minimum
average mean score.
project cost management, project quality management and project procurement
management have got satisfactory and good average mean score.
project schedule management, project resource management and project communication
management have got a better average mean score.
Project integration management, project scope management and project stakeholder
management have got a very good average mean score.
5.3 Conclusions
The main aim of this study was to assess the project management practices of bank of Abyssinia
PMO IT projects. The study addressed three research questions and the sections below provide the
conclusion drawn from the data regarding each of these questions.
Concluding the findings of project integration management, project scope management and project
stakeholder management practices are very well practiced compared to the standard and the other
knowledge areas which implies the projects have attained a good practice level in adopting those
practices.
Project cost management, project quality management and project procurement management are
practices on the third place which their level of practice is satisfactory.
The core finding of this study lies on risk management practice that get a minimum mean average
score compared to both the standard and the other knowledge areas implying that risk management
practice of the bank is low.
Regarding the success of the projects the respondents answer is very positive and got an average
mean score of 3.8 which is very similar to the practice level of the project management knowledge
36 | P a g e
areas in the bank this shows that the good practice of project management practices in the projects
helps bank of Abyssinia to improve its project success and performance.
From the finding of the study it is shown that any of the ten project management knowledge areas
have not scored an average mean score of 4.
5.4 Recommendation
Before making recommendations here, it must be made clear that any recommendation made here
should be viewed as being part of the requirements to give Bank of Abyssinia S.C the “leading
commercial bank in east Africa by the year 2030” (Bank of Abyssinia S.C 2019). The application
of these recommendations will not transform the bank overnight and will certainly not guarantee
the success of projects.
The first recommendation is that the company and all project members should implement
standard risk management practices. Special Efforts should be extended in Developing risk
management plan, identifying risks, performing qualitative and quantitative risk analysis,
planning risk response, implementing agreed upon risk responses and monitoring risks.
Efforts should be exerted towards project quality management, project cost management
and project procurement management.in order to maintain and improve the current project
management practice of the bank.
The bank should provide project management trainings for its project team members and
checking the trainings are in fact addressing team members
It is recommended that it will be very helpful to enhance the capacity of the program
management office in every aspect in order to maintain and improve implementation of
standardized project management practices for successful completion of projects.
The last but not the least focuses should be on implementing all project management
knowledge area practices in the bank with a standard, recommending that to achieve
excellence in project management and in overall operational performance the bank should
empower the program management office in every aspect.
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ADDIS ABABA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
SCHOOL OF COMMERCE
Graduate program
Research Questionnaire
Dear Sir/Madam,
I am grateful for your time and responses. You are not expected to write your Name. All the
information you provide will be kept in strict confidentiality and it will be only used for this
academic research only.
Sincerely yours
Biruk Dage
+251-915-62-39-51
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birukdage@yahoo.com
Part I
General Information
8. Have you provided with trainings related to project management by the bank?
Yes
No
If yes, please specify the type of training you received ______________________________________
_________________________________________________________________________________
_________________________________________________________________________________
9. Do you have a formal training outside the bank? In project management
Yes
No
If yes, please specify the type and level of the training _____________________________________
_________________________________________________________________________________
_________________________________________________________________________________
Answer the questions based on your knowledge of practice of project management in your project experience.
(5 = Strongly Agree, 4= Agree, 3= neutral, 2= Disagree, 1= strongly Disagree)
General project management practices 5 4 3 2 1
1 Is the need and benefit of project management recognized by the bank management?
2 Does the management of the bank provide support for project management development?
3 Does the bank provide project management training for its project management team?
4 Does the bank have standard project management processes and methodologies?
5 Do project managers of the bank have intense knowledge base of project management?
6 Are project management processes, methodologies and procedures applied formally in managing
in managing projects?
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Project integration management 5 4 3 2 1
1 A project charter was developed (document that authorize the project and the project manager )
2 Project management plan was developed ( defining, preparing and coordinating all plan
components)
3 Project work was managed ( performing the work defined in the project management plan)
4 Project work was monitored and controlled ( tracking, reviewing and reporting project progress)
5 Changes were controlled
6 project knowledge was managed (using existing and creating new knowledge to contribute
organizational learning)
Project scope management 5 4 3 2 1
1 Plan scope management was defined (document how the project scope will be defined, validated
and controlled)
2 Requirements were clearly stated ( determining, managing and documenting stakeholder needs
and requirements)
3 There was defined scope ( detailed description of the project)
4 WBS (work breakdown structure) was created – subdividing project work in to manageable
component.
5 The scope was validated ( formal acceptance of the project deliverable
6 Changes to the scope were controlled
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Project risk management 5 4 3 2 1
1 Plan risk management was developed ( a plan defining how to conduct risk management )
2 Risks were identified ( identifying individual and overall project risk)
3 Qualitative risk analysis were performed (prioritizing risks for further analysis by assessing their
probability of occurrence and impact )
4 Quantitative risk analysis were performed ( numerically analyzing risks on project objectives)
5 Risk response was planned (options, strategies and actions were addressed to minimize exposure
6 Agreed up on Risk responses were implemented
7 Risks were monitored (monitoring the implementation, identifying and analyzing new risks )
Project procurement management 5 4 3 2 1
1 Procurement management plan was developed
2 Resources were determined
3 Potential sources were identified
Project stakeholder management 5 4 3 2 1
1 Stakeholders were identified
2 Stakeholder engagement was planned (it was planned to involve stakeholders based on their
interest)
3 stakeholder engagement was managed (there was communication and appropriate r/ship with
stake holders)
4 Stakeholder engagement was monitored ( was modification of strategies and plans possible)
Part III Questions related to project success
1 IT projects implementation in BOA usually completed within budget
2 Results of IT projects in BOA met customers requirements
3 IT projects has contributed to the overall operational performance of the bank
4 In general project management practices used by BOA for projects was helpful for the overall
success of the project
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APPENDIX
Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items
.965 .966 54
Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items
.659 .703 6
Item Statistics
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items
.850 .854 6
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Item Statistics
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items
.894 .897 6
Item Statistics
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5 Cronbach’s alpha, mean and SD for project schedule management
Reliability Statistics
.836 .835 6
Item Statistics
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items
.921 .921 4
Item Statistics
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costs were controlled 3.55 .846 40
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items
.878 .889 3
Item Statistics
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items
.913 .915 6
Item Statistics
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9 Cronbach’s alpha, mean and SD for project communication management
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items
.862 .864 3
Item Statistics
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items
.827 .829 7
Item Statistics
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11 Cronbach’s alpha, mean and SD for project procurment management
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items
.894 .899 3
Item Statistics
procurement management
3.58 .984 40
plan was developed
resources were determined 3.55 .932 40
potential sources were
3.80 .823 40
identified
Reliability Statistics
Cronbach's
Alpha Based on
Cronbach's Standardized
Alpha Items N of Items
.949 .949 4
Item Statistics
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