PROJECT IMPLEMENTATION AND MANAGEMENT PRACTICES OF FINANCIAL INSTITUTIONS: THE CASE OF AWASH BANK

Abstract

The purpose of this study was to investigate the effect of project management practices on IT project implementation in Awash Bank. The study employed a quantitative research approach, an explanatory and descriptive research design. A five-point Likert scale-based questionnaire was used to collect data for the assessment from 45 chosen respondents (project managers, project team members, support staffs and project coordinators) from Awash Bank. Analyses were performed using four project management practices – fund management, stakeholder management, monitoring and evaluation and risk management. The findings of the regression analysis revealed that two of the project management practices (fund management and risk management) had a statistically significant positive effect on IT project implementation. It implies that an increase/decrease in fund management and risk management will result in a proportional increase or decrease in IT project implementation. The total effect of the independent variables in the model resulted in a 32.4 percent variations in IT project implementation. This implies that these variables are needed to be considered in any effort to boost IT project implementation in the banking industry. The study recommends that the management should seriously identify risks involved in a proposed project throughout the project life cycle and develop an appropriate mitigation plan accordingly. Furthermore, the management of the bank should enhance its cash management in such a way that complements IT project success.