Factors Influencing Implementation Of Prince2 Framework In Development Of Mortgage Finance Products: A Case Of Housing Finance, Kenya

Abstract

Projects IN Controlled Environment (PRINCE2) is a project management framework that has been used for more than 20 years. It was introduced at Housing Finance (HF) because of the need to have a framework that would guide managers to undertake projects and save the organization‘s resources from projects that were not viable. These projects included product development projects which extensively used the framework. PRINCE2 has been criticized as being too detailed and bureaucratic to be of use in small to medium sized projects. HF employees have questioned its efficacy in delivery of mortgage products on time therefore affecting HF‘s competitiveness in the market. The study identified four factors that have affected the implementation of PRINCE2 framework in the development of mortgage products and these factors included training, acceptability, adaptability and ease of use. The purpose of the study was to investigate factors influencing the implementation of PRINCE2 framework in development of mortgage finance products with special reference to Housing Finance. The research objectives of the study were to investigate how training influences the implementation of PRINCE2 in development of mortgage finance products, to examine how adaptability of the framework influences the implementation of PRINCE2 in development of mortgage finance products, to determine how acceptability of the framework influences the implementation of PRINCE2 in development of mortgage finance products and to assess how ease of use influences the implementation of PRINCE2 in development of mortgage finance products. The target population was 19 members of employees that were knowledgeable about PRINCE2 either through formal training or internal training. The target population was drawn from HF employees who were actively involved in development of mortgage products using PRINCE2 framework. This study sampled all employees engaged in product development and hence it was a census study. The study combined both quantitative and qualitative approaches in what is referred to as mixed research methodology. It incorporated self-completion data collection method where all respondents were given a questionnaire to complete. The data analysis had aspects of both quantitative and qualitative research. The researcher used Excel spreadsheets to analyze quantitative data while for the qualitative data, the major themes were identified which formed the basis for analyzing the qualitative data. The study found out that the experiences of employees that were formally trained and those trained internally were significantly different with the former having a better appreciation of PRINCE2 framework. Most internally trained employees felt that the framework was too complex to be adapted to small scale product development projects. The study further showed that HF management was instrumental in influencing the acceptability of the framework but this by itself was not adequate. It required a culture change and a level of organizational maturity for the framework to be fully accepted and appreciated. Eventually, the employees rated the framework as somewhat user-friendly citing that its thoroughness – a positive aspect of the framework - had made it bureaucratic for faster development of mortgage products. On cross tabulating some indicators of the independent variables and how they influenced implementation of PRINCE2, there was no relationship. The study recommended that management consider annual training of employees on the PRINCE2 framework as well as being open to new project management framework such as PMBOK. It also recommended that HF offer incentives to employees who choose to self-sponsor themselves to learn about PRINCE2 framework. Finally, it recommends the establishment of a project management office that not only manages HF‘s project portfolio but also plays an advisory role for employees engaged in any project including mortgage product development.