Information Technology Project Management Methodologies And Information Technology Projects Performance In Kenyan Commercial Banks

Abstract

Commercial banks in Kenya have been experiencing rapid growth and expansion, necessitating technology changes in order to maintain a competitive edge. While these changes facilitate development and launch of products, they have also led to more vibrant information technology projects management activities. The purpose of this paper was to study the project management methodologies used in Kenyan banks, determine the factors used in their selection, study the relationship between the methodologies and bank project performance and finally compare the methodologies to determine how they pit against each other. The study made use of the crosssectional descriptive survey design model. Surveys are more flexible in the sense that a wider range of information is collected. Questionnaires were used to gather data from representatives of the various commercial banks. Statistical methods such as mean, standard deviation and chi-square were utilized to analyze the data collected from the respondents. The findings of the research revealed that in the modern day project management in Kenyan commercial banks has adopted and generally preferred to use the formal methodologies to manage IT projects. The top Tiered banks recoded the highest adoption of the mainstream formal methodologies with least adoption recorded in the lower Tiers. Overall, the research found that the use of methodologies led to marked improvements in the project delivery time, the project cost, the quality of final product, management of project risks, realization of expected benefits and improved stakeholder adoption and satisfaction. Additionally, most banks believe that the use of a proper management methodology is a differentiating factor in the outcome of the project hence ranking PRlNCE2, In-house formal methodologies and PMBOK high in their level of adoption and use. The type and size of the projects coupled with the ease of tailoring a methodology to fit the project and organizational structure were deemed quite important factors in selecting a methodology. Recommendations were made for banks to ensure full adoption of the formal methodologies in order to realize maximum benefits and to consider combining methodologies where need be, to cater for the complex types of projects that may require more than a single methodology.