COLLEGE OF LEADERSHIP AND GOVERNANCE

DEPARTMENT OF PROJECT LEADERSHIP AND MANAGEMENT

1ST YEAR 2nd SEMESTER MASTER’S PROGRAM
Group assignment on research methods in project leadership
And Management
Research proposal
Impact of strategic management for project success. A case study of Noah real estate in
Ethiopia, Addis Ababa
SUBMITTED BY: ID NO

1. MILLION G/TSADIK…………………………………ECSU2302094

2. MILLION FISSEHATSION………………………….. ECSU2301999

3. MUBAREK MOHAMED…………………………… ECSU2302002

4. NEBIAT DANIEL……………………………………. ECSU2302014

5. NEBIYU YOHANNES ……….…………………….. ECSU2301978

6. ZEMENE ADUGNA ……………………………...… ECSU2302023

Submitted to Dr. Aderaw G. (PhD)

Date of Submission: may-2024
Tables of contents
CHAPTER ONE ..........................................................................................................................................1

1. INTRODUCTION ................................................................................................................................ 1

1.1 Background of the Study ............................................................................................................1

1.2 Statement of the problem ...........................................................................................................2

1.3 Objectives of the study ...............................................................................................................2

1.3.1 General Objective ...................................................................................................................... 2

1.3.2 Specific Objectives .................................................................................................................... 2

1.4 Research Questions/Hypothesis .................................................................................................. 3

1.5 Significance of the study ............................................................................................................3

1.6 Scope of the study ...................................................................................................................... 3

1.7 Limitation of the study ...............................................................................................................3

1.8 Operational Definition of Key Terms (If) ................................................................................... 4

1.9 Organization of the study ...........................................................................................................4

CHAPTER TWO .........................................................................................................................................5

2. REVIEW OF RELATED LITERATURE ............................................................................................. 5

2.1 Introduction ............................................................................................................................... 5

2.2 Theoretical literature review (including theories)........................................................................5

2.2.1 Project........................................................................................................................................5

2.2.2 Project Management................................................................................................................... 6

2.2.3 Project Management Processes ................................................................................................... 6

2.2.4 Knowledge areas of Project Management ................................................................................... 7

2.3 Project Success ........................................................................................................................ 11

2.4 Empirical literature review ....................................................................................................... 11

2.4.1 Strategic project management................................................................................................... 11

2.4.2 Relationship between Strategic Management and Project Success ............................................ 12

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 2.5 Conceptual framework ............................................................................................................. 15

CHAPTER THREE ................................................................................................................................... 16

3. RESEARCH METHODOLOGY ........................................................................................................ 16

3.1 Introduction ............................................................................................................................. 16

3.2 Research Design....................................................................................................................... 16

3.3 Population and Sample Size ..................................................................................................... 16

3.4 Data Gathering Methods and Instruments ................................................................................. 17

3.5 Procedures/Models of Data Presentation and Analysis ............................................................. 18

3.6 Validity and Reliability ............................................................................................................ 18

3.7 Ethical Considerations.............................................................................................................. 18

3.8 Work plan and time schedule ................................................................................................... 19

References .......................................................................................................................................... 20

Appendices/Annexes .......................................................................................................................... 21

Appendices 1: Questionnaire to be filled by the Real Estate Company ................................................... 21

APPENDICES -2: Questionnaire to be filled by consultants ................................................................... 22

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List of figures
Figure 2-1 Conceptual Framework of the Study ......................................................................................... 15
List of Tables
Table 3-1Budget break dawn ..................................................................................................................... 19
Table 3-2Time break dawn ........................................................................................................................ 19

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 CHAPTER ONE

1. INTRODUCTION

1.1 Background of the Study

In today's competitive landscape, project management has become increasingly important as more and more
projects face budget, schedule, and performance constraints. With structured and consistent performance,
project management brings about the satisfaction of stakeholders and ultimately results in success. Business
leaders and experts have proclaimed that project management is a strategic imperative. It provides people
with a powerful set of tools to plan, implement, and manage activities to achieve specific organizational
objectives. However, project management is not just about using tools. It is a results-oriented management
style that emphasizes building collaborative relationships among a diverse cast of characters. Opportunities
await those skilled in project management, as it is hard to find a profession or career path that would not
benefit from being good at managing projects (Larson and Grey, 2011).

In Ethiopia, the involvement of project management in national strategic plans and macro activities is
becoming more visible. To accomplish the goal of aligning our country with middle income generating
countries, several projects are included, such as national and state road projects, mega hydraulic structures
like dams and irrigations, and others. Project management is also a vital tool in accomplishing social and
private goals in the private sector. The government of Ethiopia has given special attention to the construction
industry as a cornerstone of development. The sector has a significant budget, enabling the government and
private entities to participate in housing development and wealth maximization. Different construction and
Real Estate companies are contributing to the sector by constructing and selling houses. The Real Estate
industry in Ethiopia is on the way to growing, but its speed is not within the required range. Scarce resources,
mainly money, management inefficiencies, and insufficient infrastructure facilities are among the reasons.
For projects with sufficient budgets and comprehensive infrastructures, strategic project management
inefficiencies are the leading cause of poor project performance and failure. This study focuses on assessing
the practice of strategic project management and its contribution to the success of Real Estate projects in
companies in Addis Ababa, Ethiopia. With effective project management, Real Estate companies can achieve
their goals and contribute to the development of Ethiopia.

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1.2 Statement of the problem

Real estate companies in developing countries, particularly in Ethiopia, face numerous challenges when it
comes to strategic project management. Regardless of whether the project is initiated by the government,
private investors or NGOs, there is always the risk of encountering problems during implementation.
Therefore, it is crucial to establish effective project management practices to ensure that projects are planned,
implemented and controlled efficiently, while meeting the required performance standards in terms of time,
cost and technical specifications.

Real estate companies are expected to apply strategic project management extensively, given the nature
of their business. They cater to various housing demands, but there are also common challenges to be
overcome, such as delays, non-performance, failure to meet specifications, and customer dissatisfaction.
Some real estate companies collect advance payments but fail to deliver on their promises due to
inadequate project management processes. Others may contract with customers but hand over incomplete
houses due to financial constraints resulting from poor project execution management.

In this study, we aim to explore the problems that real estate companies encounter and Impact of Strategic
Project Management can have on completing them. Our focus will be on companies actively involved in
the business. With our analysis, we hope to shed light on the challenges faced by real estate companies
and provide insights into how they can establish effective strategic project management practices to
overcome these problems and meet their customers' expectations.

1.3 Objectives of the study

1.3.1 General Objective

The general objective of the study is “to assess the strategic project management in Real Estate Industry and
its contribution for project success”. Under the general objective, the following are specific objectives of the
study:

1.3.2 Specific Objectives

➢ To assess the practice of strategic project management in Real Estate companies in terms of project
management knowledge areas;
➢ To assess the impact of strategic project management in Real Estate companies in terms of project
management process groups;

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 ➢ To measure contribution of the different project management knowledge areas to project success
that are practiced by Real Estate companies;

1.4 Research Questions/Hypothesis

➢ Does the practice of strategic project management knowledge areas in real estate companies help to
improve their performance and success?
➢ To what extent does the practice of strategic project management knowledge area in real estate
companies contribute to project success?
➢ What strategies can real state companies implement to improve project planning, implementation, and
control processes, ensuring efficient and successful project outcomes?

1.5 Significance of the study

Given the significance of strategic project management in construction companies, particularly in Real
Estate companies, and the rapid growth of construction activities in Ethiopia, it is anticipated that the
findings of this research will aid in identifying the project management processes that impact the
performance of building construction projects in Addis Ababa. Furthermore, it is expected that this
research will contribute to the existing body of knowledge by introducing new concepts, with a specific
focus on the practices currently being implemented by Real Estate companies.

1.6 Scope of the study

The focus of this research will be on the implementation of Strategic project management in housing
development projects. Specifically, we will be examining private Real Estate companies in Addis Ababa
that have either completed or ongoing projects. These companies will be assessed in terms of their
utilization of financial, labour, and time resources to identify any existing problems. It is important to
note that only activities directly related to project management will be considered, while other unrelated
activities of the selected companies will be excluded.

1.7 Limitation of the study

We might face some shortcomings to achieve our objectives in terms of getting access to some important
documents, project schedules and project performance records. To improve its validity, cross checking
will be made by obtaining information from customers, and from consultants, using different data
gathering techniques.

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1.8 Operational Definition of Key Terms (If)

1. Project: It is a temporary endeavour undertaken to create a unique product, service, or result (PMI,
2013: P 3).
2. Project Management: Chandra (1995) define Project management as a scientific application of
modern tools and techniques in planning, financing, implementing, monitoring, controlling and
coordinating unique activities or task produce desirable outputs in accordance with the determined
objectives within the constraints of time and cost.
3. Strategic project Management: refers to the deliberate planning, execution, and control of projects
in alignment with an organization's overarching strategic objectives.
4. Project Management Knowledge Area: It stand for a complete set of concepts, terms, and activities
that create a specialized professional field known as project management.
5. Project Management Process Groups: Are sets of processes that makeup project life cycle.
6. Project Success: It is completion of a project within the allocated time period, within the budgeted
cost, at the proper performance or specification level, with acceptance by the customer/user, with
minimum or mutually agreed upon scope changes, without disturbing the main work flow of the
organization, and without changing the corporate culture (Kerzner, 2009).
7. Real Estate: It involves ownership of real property such as land and houses.
8. Real Estate Companies/Developers: Companies that are involved in the construction and selling of
houses.

1.9 Organization of the study

The proposal consists 3 chapters:

Chapter One: introduction; background of the study, statement of the problem, research questions, objective
of the study, significance of the study, scope of the study, limitation of the study, definition of key terms and
organization of the study.
Chapter Two: literature review; literatures related to the study.
Chapter Three: research methodology; research design, research population, sampling technique, data
collection techniques, data type and data analysis.

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 CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

2.1 Introduction

The second chapter of this Research proposal is review of related literature which contains both theoretical
and empirical parts which are used as a guide line throughout conducting the study. The first part is theoretical
review which includes theories of published books and previous researches related with this study. The second
part is empirical review. It has summary of some selected previous researches on the area of project
management.

2.2 Theoretical literature review (including theories)

Construction Industry is the backbone for economic development. The industry is involving increasing
number of small companies and few big construction companies. Construction process is labour intensive
and also requires good management style because of difficult site condition and bulky materials use.
In spite of all the best practices, predictability of project outcomes is still an issue of concern. Failure to
achieve targeted time, budgeted cost and specified quality result in various unexpected negative effects on
the projects. In the achievement of consecutive economic growth for the last twelve years in Ethiopia, the
contribution of construction industry is very significant. As it is mentioned in a recently published
Construction Magazine 8.5 percent of the growth domestic product (GDP) of Ethiopia is earned from
construction industry. 13 Professionals and experts have stated that project management is a crucial strategic
view.
Project management provides entities with influential set of tools that develop their ability to apply
managerial functions to accomplish specific organizational objectives. But project management is more than
just a set of tools; it is a results-oriented management style that places a premium on building collaborative
relationships among diverse cast of characters. Exciting opportunities await people skilled in project
management (Larson and Grey, 2011: P3). In this section, issues related with project management, such as
project, project management knowledge areas, and others are discussed.

2.2.1 Project

Many definitions had been given to project by different authors, due to the fact that project is a
multidisciplinary word that has different meaning from different perspective and orientations. Their definition

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depends on their areas of studies and the point of view that each scholars used. But to have comprehensive
understanding of a project, it is better to refer different definitions.

Eric Verzuh (2005:1 cited in Modesto &Tichapondwa, 2009) stated “Projects are the means by which
innovations are affected. Greater change = more innovations = more projects." Accordingly, Modesto
&Tichapondwa (2009) define project as initiative to bring about change in order to achieve specific
objectives, within a timescale, in a given context with allocated budget.

2.2.2 Project Management

The Project management Institute (2013) define project as a temporary endeavour undertaken to create a
unique product, service, or result. In this study, the PMI’s definition of project is used as an operational
meaning.

The definition is given based on two key characteristics of project. All projects are temporary and undertaken
to create a product, service, or result that is unique. These two simples’ concepts create a work environment
that mandates different management approach from that used by an operations manager, whose work is
oriented toward continuous improvement of existing processes over longer periods of time.
Project Management Institute, (2013) defines Project management as an application of knowledge, skills,
tools, and techniques to project activities to meet the project requirements. 14 Similarly, Chandra (1995)
define Project management as an organized venture for managing projects, involves scientific application of
modern tools and techniques in planning, financing, implementing, monitoring, controlling and coordinating
unique activities or task produce desirable outputs in accordance with the determined objectives within the
constraints of time and cost. This Chandra’s definition of project management is used as operational meaning
in this study. Project management is accomplished through the appropriate application and integration of the
different logically grouped project management processes, which are categorized into five Process Groups.
According to PMI (2013: P5), these five Process Groups are: Initiating, Planning, Executing, Monitoring and
Controlling, and Closing. These Project management processes will be discussed below as an independent
topic.

Heerkens stated "The project management process calls for the creation of a small organizational structure
(the project team), which is often a microcosm of the larger organization. Once the team has produced the
desired outcome, the process then calls for the decommissioning of that small organizational structure."

2.2.3 Project Management Processes

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Project management processes can be described in terms of the integration between the processes, their
interactions, and the purposes they serve. As mentioned above, project management processes are grouped
into five categories known as Project Management Process Groups (or Process Groups):

➢ Initiating Process Group. The processes in this grouped are used to define a new project or a new
phase for ongoing project by having authorization for starting the project/phase.
➢ Planning Process Group. The processes in this group are used to set scope and objectives for a
project as well as to list down course of actions used to achieve those objectives.
➢ Executing Process Group. The processes in this group are used to perform works of the project that
are defined in the project management plan to achieve project requirements.
➢ Monitoring and Controlling Process Group. The processes in this group are used to follow, review,
and facilitate the flow and performance of a project. The processes are also used to identify the need
for changes and execute them.
➢ Closing Process Group. The processes in this group are used to finalize activities of a project or
phase in a formal way. These project management process groups describe project in terms of phases.
They involve several areas of project management applications. These areas refer to as ‘project
management knowledge areas.

2.2.4 Knowledge areas of Project Management

Projects are divided into components, and a project manager must be knowledgeable in each area. A
Knowledge Area stand for a complete set of concepts, terms, and activities that create a specialized
professional field known as project management. Project teams should use these Knowledge Areas and other
extension Knowledge Areas for specific project types, as appropriate. There are ten general project
management knowledge areas:

Project Integration Management

Project integration management includes the processes and activities to identify, define, combine, unify, and
coordinate the various processes and project management activities within the project management process
groups. In the project management context, integration includes characteristics of unification, consolidation,
communication, and integrative actions that are crucial to controlled project execution through completion,
successfully managing stakeholder expectations, and meeting requirements (PMI, 2013: P63).

Project Scope Management

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According to PMI (2013: P106), project scope management comprises the processes required to make sure
that the project is armed with all the appropriate efforts to accomplish the project as need. In other word, the
project scope is a document that describes the parameters that define a system and determine the behaviour
of the project, what work is done within the boundaries of the project, and the work that is external to the
project boundaries (Saylor.org, 2009: P26).

Project Time Management

According to Saylor.org (2009: P26), the definition of project success often includes completing the project
on time. The importance of ensuring work proceeds efficiently within individual tasks, along with the
interfacing of related tasks, is a key message in project time management (Hameri & Heikkila, 2002: P143,
cited in Pasian, 2011: P19). Accordingly, project time management includes the processes required to manage
the timely completion of the project such as the following (PMI, 2013: P141):

➢ Plan schedule management

➢ Sequence activities
➢ Develop schedule
➢ Estimate activity resources
➢ Define activities
➢ Estimate activity durations
➢ Control schedule

Project Cost Management

The definition of project success often includes not only completing the project on time, but also completing
the project within budget. Developing and controlling a project budget that will accomplish the project
objectives is a vital project management skill. Project cost management processes include the following (PMI,
2013: P193):

➢ Plan cost management

➢ Control costs
➢ Estimate costs
➢ Determine budget

Project Quality Management

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Hoyer & Hoyer (2001: PP55-59, Cited in Oschman, et al., 2006) defined quality as “the total composite
product and service characteristics of marketing, engineering, manufacturing and maintenance through which
the product and service in use will meet the expectations of the customer.” Project quality focuses on the end
outputs that reflect the purpose of the project. The project manager is accountable for developing a project
implementation mechanism that gives a clear understanding of the expected project outputs and the quality
specifications. In order to do so, (PMI, 2013: P227) listed the following project quality management
processes:

➢ Plan quality management

➢ Perform quality assurance
➢ Control quality

Project Human Resource Management

Human resource management is a branch of management which deals with people at work in an organization.
Armstrong (2006: P1) defined HRM as a strategic and coherent approach to the management of an
organization’s most valued assets – the people working there who individually and collectively contribute to
the achievement of its objectives. Storey (1989, cited in Armstrong, 2006: P1) believes that HRM can be
regarded as a ‘set of interrelated policies with an ideological and philosophical underpinning. PMI (2013:
P266) stated project human resource management processes as the following:

➢ Plan human resource management

➢ Acquire project team
➢ Develop project team
➢ Manage project team

Project Communications Management

Completing a complex project successfully requires teamwork, and teamwork requires good communication
among team members. The processes of project communications management are required to ensure timely
and appropriate planning, collection, organization, storage, retrieval, and management of project information.
Project managers devote most of their time to communicate with team members and other involved bodies,
whether they are insiders or outsiders of the organization. Project communications management processes
include the following (PMI, 2013: P287):

➢ Plan communications management

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 ➢ Manage communications
➢ Control communications

Project Risk Management

Risk is the probability of deviation of an outcome from expectation. Risk exists on all projects. The role of
the project management team is to understand the types and levels of risks on the project so that they can
develop and implement plans to diminish these risks. The objectives of project risk management are to
increase the likelihood and impact of positive events, and decrease the likelihood and impact of negative
events in the project. Project risk management involves processes such as the following (PMI, 2013: P309):

➢ Plan risk management

➢ Identify risks
➢ Perform qualitative risk analysis
➢ Perform quantitative risk analysis
➢ Plan risk responses
➢ Control risks
Project Procurement Management

PMI (2013: P366) stated that Project Procurement Management includes the processes necessary to purchase
or acquire products, services, or results needed from outside the project team. Procurement Management
processes includes the following (PMI, 2013: P366):

➢ Plan procurement management

➢ Conduct procurements
➢ Control procurements
➢ Close procurements

Selection of the type of procurement and contract management delivery system is affected by size of a project,
financial capability of the client, experience, previous performance of the contractor, and other factors.

Project Stakeholder Management

Stakeholder management has been one of the cores soft skills areas that has been highlighted as being
necessary for PM to advance (Crawford, 2005; Morris et al., 2006; Winter et al., 2006, cited in Bourne &
Walker, 2007: P129). The processes of project stakeholder management is necessary to identify entities those

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could impact or be impacted by the project, to assess expectations of stakeholders, and to develop suitable
managerial strategies to be well benefited from the involvement of stakeholders.

2.3 Project Success

As Kerzner (2009: P7) stated, project success is defined as the completion of an activity within the constraints
of time, cost, and performance. This was the definition used for the past twenty years or so. He forwarded the
today's definition of project success in such a manner that has been modified to include completion:

➢ within the allocated time period

➢ within the budgeted cost
➢ at the proper performance or specification level
➢ with acceptance by the customer/user
➢ with minimum or mutually agreed upon scope changes
➢ without disturbing the main work flow of the organization
➢ without changing the corporate culture

2.4 Empirical literature review

2.4.1 Strategic project management

Strategic project management is an approach that involves aligning project activities and objectives with the
broader strategic goals and vision of an organization. It focuses on ensuring that projects contribute to the
achievement of organizational strategies and desired outcomes. Strategic project management goes beyond
traditional project management practices by considering the long-term impact of projects and their alignment
with organizational priorities.
Key characteristics and components of strategic project management include:
Alignment with Organizational Strategy: Strategic project management ensures that projects are selected
and prioritized based on their alignment with the organization's strategic goals. Projects are evaluated in terms
of their potential impact on the organization's mission, vision, and overall strategy.
Strategic Planning: This involves creating a strategic project plan that outlines the project's objectives,
scope, deliverables, timelines, and resource requirements. The plan takes into account the organization's
strategic priorities and identifies how the project will contribute to achieving those priorities.

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Stakeholder Engagement: Strategic project management emphasizes stakeholder engagement, including
project sponsors, executives, and other key stakeholders. It involves seeking input, managing expectations,
and ensuring that stakeholders are actively involved throughout the project lifecycle.

Risk Management: Strategic project management incorporates a proactive approach to risk management. It
involves identifying potential risks and developing strategies to mitigate or minimize their impact on the
project's success. Risk management is closely tied to the organization's overall strategic risk management
framework.

Benefits Realization: Strategic project management focuses on realizing the intended benefits and value of
the project. It involves setting clear objectives and measures of success, monitoring progress, and ensuring
that the project delivers the expected outcomes and benefits to the organization.

Continuous Alignment and Adaptation: Strategic project management recognizes the dynamic nature of
the business environment and the need for continuous alignment and adaptation. It involves regularly
reviewing and reassessing project activities to ensure they remain in line with the organization's strategic
goals. Adjustments and adaptations are made as necessary to address changing circumstances and priorities.
By employing strategic project management principles and practices, organizations can increase the
likelihood of project success and better position themselves to achieve their long-term strategic objectives. It
helps ensure that projects are chosen, planned, executed, and controlled in a manner that maximizes their
strategic value and supports the organization's overall success.

2.4.2 Relationship between Strategic Management and Project Success

Strategic project management plays a crucial role in determining project success. It involves aligning project
objectives with the overall strategic goals of an organization and effectively managing resources, timelines,
risks, and stakeholders to achieve those objectives. The relationship between strategic project management
and project success can be summarized as follows:

Goal Alignment: Strategic project management ensures that project goals and objectives are aligned with
the broader strategic goals of the organization. When projects are aligned with the organization's strategic
direction, they contribute to its overall success and help fulfil its long-term vision.

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Resource Allocation: Strategic project management involves allocating resources efficiently and effectively
to ensure that project activities are adequately supported. Proper resource allocation helps to optimize project
outcomes, meet project deliverables, and achieve desired results within the given constraints.

Risk Management: Strategic project management includes identifying and mitigating risks that may impact
project success. By proactively managing risks, such as potential delays, budget overruns, or changes in
project scope, strategic project managers can minimize the likelihood and impact of negative events, thereby
enhancing the chances of project success.

Stakeholder Engagement: Strategic project management recognizes the importance of stakeholder

engagement and communication throughout the project lifecycle. Engaging stakeholders, including project
sponsors, team members, and external parties, helps to foster collaboration, manage expectations, and gather
valuable insights. Effective stakeholder engagement contributes to project success by ensuring that project
outcomes meet stakeholder needs and expectations.

Continuous Monitoring and Adaptation: Strategic project management involves continuous monitoring of
project progress, performance, and outcomes. This allows project managers to identify deviations from the
planned objectives and take corrective actions promptly. The ability to adapt and make informed decisions
based on real-time information contributes to project success by maintaining project alignment, controlling
risks, and maximizing opportunities.

Value Delivery: Strategic project management focuses on delivering value to the organization. Projects that
are strategically aligned and effectively managed have a higher likelihood of delivering the intended benefits,
such as improved efficiency, increased revenue, enhanced customer satisfaction, or competitive advantage.
The ability to demonstrate value and achieve the desired outcomes contributes to project success.

strategic project management and project success are closely intertwined. By aligning projects with
organizational strategy, optimizing resource allocation, managing risks, engaging stakeholders, monitoring
progress, and delivering value, strategic project management significantly enhances the likelihood of project
success and contributes to the overall success of the organization.

Strategic project management is an approach that involves aligning project activities and objectives with the
broader strategic goals and vision of an organization. It focuses on ensuring that projects contribute to the
achievement of organizational strategies and desired outcomes. Strategic project management goes beyond
13
traditional project management practices by considering the long-term impact of projects and their alignment
with organizational priorities.

Key characteristics and components of strategic project management include:

Alignment with Organizational Strategy: Strategic project management ensures that projects are selected
and prioritized based on their alignment with the organization's strategic goals. Projects are evaluated in terms
of their potential impact on the organization's mission, vision, and overall strategy.

Strategic Planning: This involves creating a strategic project plan that outlines the project's objectives,
scope, deliverables, timelines, and resource requirements. The plan takes into account the organization's
strategic priorities and identifies how the project will contribute to achieving those priorities.

Stakeholder Engagement: Strategic project management emphasizes stakeholder engagement, including

project sponsors, executives, and other key stakeholders. It involves seeking input, managing expectations,
and ensuring that stakeholders are actively involved throughout the project lifecycle.

Risk Management: Strategic project management incorporates a proactive approach to risk management. It
involves identifying potential risks and developing strategies to mitigate or minimize their impact on the
project's success. Risk management is closely tied to the organization's overall strategic risk management
framework.

Benefits Realization: Strategic project management focuses on realizing the intended benefits and value of
the project. It involves setting clear objectives and measures of success, monitoring progress, and ensuring
that the project delivers the expected outcomes and benefits to the organization.

Continuous Alignment and Adaptation: Strategic project management recognizes the dynamic nature of
the business environment and the need for continuous alignment and adaptation. It involves regularly
reviewing and reassessing project activities to ensure they remain in line with the organization's strategic
goals. Adjustments and adaptations are made as necessary to address changing circumstances and priorities.

By employing strategic project management principles and practices, organizations can increase the
likelihood of project success and better position themselves to achieve their long-term strategic objectives. It
helps ensure that projects are chosen, planned, executed, and controlled in a manner that maximizes their
strategic value and supports the organization's overall success.

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2.5 Conceptual framework

Strategic management is a crucial aspect of project success, as it involves formulating and implementing an
organization's long-term goals and objectives. This alignment increases the likelihood of project success by
contributing to the overall strategic direction. Strategic planning involves the development of strategic plans
that outline the organization's vision, mission, and objectives. This helps in setting clear project goals,
defining project scope, and developing a comprehensive project plan that aligns with the strategic plan.

Effective resource allocation is also crucial for project success, as it ensures that projects have the necessary
resources, such as funding, personnel, and materials, to be executed successfully. Risk management is another
key aspect of strategic management, identifying and managing potential risks that may impact the
achievement of strategic objectives. This helps minimize project disruptions, address uncertainties, and
increase the likelihood of project success.

Stakeholder engagement is also essential for project success, as it helps manage expectations, gather input,
and address concerns. Engaging stakeholders throughout the project lifecycle helps manage expectations,
gather input, and address concerns, fostering collaboration and increasing the chances of project success.

Performance measurement and evaluation are also essential components of strategic management. By
establishing clear success criteria and metrics, organizations can assess project success, identify areas for
improvement, and make informed decisions for future projects. By integrating these elements, organizations
can enhance project success by ensuring that projects are strategically aligned, well-planned, adequately
resourced, and effectively managed in accordance with the organization's strategic objectives.

PROJECT
COMPLEXITY

PROJECT
PROJECT
MANAGEMENT
SUCCESS
STRATEGIES

Figure 2-1 Conceptual Framework of the Study

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 CHAPTER THREE

3. RESEARCH METHODOLOGY

3.1 Introduction

The third chapter of this study is methodology. Following to internalizing the problems to be studied and
the knowledge area that backs the study in chapter one and chapter two, the methodology part attempt to
describe the methods through which the objectives of the study can be answered. Accordingly, it states
about the research design used, population and sampling procedures, data gathering methods and
instruments, validity and reliability of the study, and finally procedures/models of data presentation.

3.2 Research Design

The type of research conducted in the study is descriptive research. The study is also both quantitative and
qualitative by its nature. It is quantitative since it involves statistical models such as means, standard
deviations, correlations, and regression analysis. On the other hand, it is also qualitative research since it
describes the actual condition of strategic management practice in the Real Estate industry in a non-numerical
way aided by the quantitative approaches.

3.3 Population and Sample Size

A. For Real Estate company

According to Ethiopian Investment Agency, in Ethiopia there are 697 Real Estate developers registered.
Among the 382 companies recorded by Addis Ababa Investment, only 124 companies are registered by the
previous 'lease office' the current 'Addis Ababa city Land Administration and Construction License
Authority'. Accordingly, 124 is the accessible population size which includes active Real Estate companies
that run Real Estate projects by receiving land from the concerned body. From these Real Estate developers,
the target population is one company that is recorded in Addis Ababa Investment Authority i.e Noah real
estate. Noah real estate is founded by two brothers, Tewedros and Dawit Zerihun, Noah has delivered a total
of 4,500 residential and commercial units over the past seven years. Since its establishment in 2013, Noah
has constructed five residential and four commercial projects. It currently has seven projects that are under
construction at various sites around the capital. Accordingly, sample size for population become 7 since there
are seven current projects ongoing.

B. For house Holders

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Noah, a sister company of Great Abyssinia, is among those local companies who joined the industry six years
ago. Over those years, it has managed to complete more than 3,500 apartments, houses and commercial
properties handed-over to its home buyers. The house owners are more or less homogeneous in terms of social
status as well as economic status due to the fact that most Real Estate developers aim to serve high income
group. This is reported by Ministry of Urban, House Development, and Construction and Government
Building Construction office (2012, P11) in which "Houses developed by private investors require higher
price and target part of the society with high income levels." Accordingly, small numbers of respondents are
representatives of the entire house holders' population. 50 is going to be used as sample size for Noah Real
Estate house owners. Convenient sampling technique will be used to select available and willing respondents
at the time of collecting data.

C. For Consultants

Information will be collected from 10 consultants that have been working with Noah Real Estate Company.
This information is used to cross check responses forwarded by Real Estate companies. Snowball sampling
technique is used. Which means, the researcher will contact few of the consultants and these selected
consultants are the one inviting other consultant to fill the questionnaires.

3.4 Data Gathering Methods and Instruments

Both primary data and secondary data will be used with their respective sources.

Primary data are obtained using observations, questionnaires, and interviews. Observation will be used to
consider on ground problems about Noah Real Estate sites, progress of selected projects, and external
appearance of Real Estate houses. Questionnaires will also be used to gather data:

➢ From Noah Real Estate company about their projects. This questionnaire is a hybrid of open-ended
and closed ended questions.
➢ From House owners about the Real Estate houses, they hold. This questionnaire is also a hybrid of
open-ended and closed ended questions.
➢ From consultants about their observation toward the Real Estate projects and project management
practices. This questionnaire is composed of fully open-ended questions.

Interviews will be conducted with researchers to acquire their opinion in Noah Real Estate industry strategic
project management practice and to check validity of questionnaire responses given by Real Estate

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companies. In addition to conducting interview, some ongoing real estate projects will be visited for having
some practical understanding about their practices.

Secondary sources of the study are different published books, internet web sites, journals, and previous
research papers.

3.5 Procedures/Models of Data Presentation and Analysis

After the data are collected from different sources, it will be organized and presented in different forms.
Important numerical results will be presented using tables and charts. Data that are used for qualitative
analysis will be presented in statement forms as part of the interpretation. This study uses both qualitative
and quantitative analysis.

3.6 Validity and Reliability

The first method to check validity of data measuring instruments will be by personal evaluation whether or
not they accurately collect data. Content validity will also be traced to check the questions in the
questionnaires are fairly distributed among the different areas of the study, particularly on project
management.

For the sake of increasing both the validity and reliability of data, triangular method will be used. Different
data collection techniques will be also used such as questionnaire, interview, and observation to fill the
weakness of one technique by the strength of the other.

3.7 Ethical Considerations

Ethics are norms or standards of behaviour that guide moral choices about our behaviour and our relationships
with others. The goal of ethics in research is to ensure that no one is harmed or suffers adverse consequences
from research activities (Cooper & Schindler, 2003). Obeying ethical rules is vital in conducting research.
Hence, the following ethics will be considered while conducting this research: - Quantitative survey
respondents and qualitative survey informants will be provided with detail explanation about the overall
objective of the study ahead of time; Participants of the study will be informed that the data will be used only
for the intended academic purpose; and Respondents will be inquired in highly respected manner.

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 3.8 Work plan and time schedule

Table 3-1Budget break dawn

No Item Quantity Single price Total price
1. Mobile card 100 25 2500
2. A4 paper 1 package 500 500
3. Internet 5 Gb 50 250
4. Note book 1 100 100
5. Coffee and tea 50 20 1000
Total price 4350 birrs

Table 3-2Time break dawn

No Activities Month
April May June July August September
1. Prepare questioner
2. Data collection
3. Organize the research
4. Writing research
report
5. Submit research report
6. Present research
report

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References

1. Chandra, P. (1995). Projects: Planning, analysis, Selection, Implementation, and Review. 4th ed.
New Delhi: Tata Mcgraw-Hill Publishing Company Limited.
2. Do Vale, J. W. (2018). Project managers' competences: what do job advertisements and the
academic literature say? Project Management Journal.
3. (n.d.). Housing Development and Government Building Construction office(2012) Housing
Development Strategies and Directives. . Addis Ababa: Ministry of Urban Development and
Construction.
4. Jari, A. J. (2013). To Study Critical Factor Necessary for a Successful Construction Project.
International Journal of Innovative Technology and Exploring Engineering (IJITEE), 331-335.
5. Kerzner, H. (2009). Project Management: A System Approach to Planning, Scheduling, and
Controlling.10th ed. New Jersey: John Wiley & Sons, Inc.
6. Larson, W. L. (2011). Project Management: The Managerial Process. 5th ed. . New York: The
McGraw-Hill Companies, Inc.
7. (n.d.). Ministry of Works & Urban Development.(1995). addis Ababa: Ethiopian Building Code
Standard.
8. Ramesh, E. (2018). The impact of project management in achieving project success- empirical
study.
9. Yimam, A. H. (2011). - Project Management Maturity in the Construction Industry of Developing
countries (The Case of Ethiopian Contractors).
10. Yimam., A. H. ((2011)). Project Management Maturity in In the Construction Industry of
Developing Countries: The Case of Ethiopian Contructors. Maryland:University of Maryland.

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Appendices/Annexes

Appendices 1: Questionnaire to be filled by the Real Estate Company

This questionnaire is prepared for the fulfilment of conducting a research paper on ‘The Impact of strategic
Management in project success. A case study in Noah Real Estate Company’. The information acquired
through this questionnaire will be kept confidential and it is purely for APPENDICES -1 academic purpose.
There is no right or wrong answer here. Rather, your genuine, honest and timely response is vital for the
accomplishment of this study. Therefore, you are kindly requested to give your response to each
items/question carefully. The researcher sincerely expresses his thanks in advance for devoting your time and
energy to complete this questionnaire. Please note that you are not required to give your name in this
questionnaire.

Age:

Educational Background:

Educational Background Qualification: Diploma Degree

Masters Job Title (Position):
Experience (in years):

1. Open Ended Questions Instruction:

For the open-end ed questions below, please fill your answers for each question in the blank space
provided.

1. Estimated Duration of the project:

2. Actual Time Devoted on the project:

3. Initially estimated total project cost:

4. Actual Project Cost incurred:

5. How many projects have you accomplished?

6. How many houses does the company transferred to customers?

7. When did the company transferred the houses?

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8. What were the problems you encountered during implementation of project(s)? Please
State/list the problems.

9. What were the mitigating factors used by the company to solve the problems you
mentioned above?

10. Did the project(s) face cost escalation problems? Please State/list causes of the problems
as much as you can. Yes, No 2.14. If yes, what were the causes for these cost escalation
problems.
11.

11. What were the mitigation factors implemented by the company to solve the cost escalation problems?

APPENDICES -2: Questionnaire to be filled by consultants

Educational Background:
Educational Qualification: Diploma Degree Masters

Job Title (Position):

Experience (in years):
Age:
Instruction: For the open-ended questions below, please fill your answers for each question in the
blank space provided.
1. How many real estate projects you consulted?

2. How do you observe performance and success of Ethiopian real estate projects as a whole?

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 3. To what extent project management practice is applied in Ethiopian Real Estate industry?

4. What are the different problems you observed in Ethiopian real estate projects? Please
State/list the problems with their causes as much as you can.

5. What are the reasons for existence of delay in Ethiopian real estate projects? Please
State/list causes of the problems as much as you can.

6. What are the reasons for cost escalation in Ethiopian real estate projects? Please State/list
causes of the problems as much as you can.

12. What are the reasons for quality variation in Ethiopian real estate projects? Please State/list
causes of the problems as much as you can.

13. How do you observe the project human resource management in Ethiopian real estate
industry?

14. How do you see the project procurement management in Ethiopian real estate industry?

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15. How do you review the project risk management in Ethiopian real estate industry?

16. How do you judge the project safety management in Ethiopian real estate industry?

17. How do you see the project environmental management in Ethiopian real estate industry?

18. How do you observe the project claim management in Ethiopian real estate industry?

19. Please forward any additional comments (ideas) you have on the implementation of Project
Management as well as on the Project Performance and success in Ethiopian Real Estate
Industry.

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