The Role of Project Management Office (PMO) Functions on the Success of Information Technology (IT) Projects: The Case of Bank of Abyssinia in Addis Ababa
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Date
2021-06
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Addis Ababa University
Abstract
The main objective of this research was to examine the role of Project Management Office (PMO) and its functions on the success of Information Technology (IT) projects at Bank of Abyssinia (BoA) in Addis Ababa. The study assessed the rate of IT project success after the bank founded its PMO and the values PMO added to the organization. To assess the PMO's impact in detail, the research investigated the PMO functions and roles that contribute to the success of IT projects. A relationship between IT project success as a dependent variable and five PMO functions as independent variables was conceptualized. The five PMO functions are monitoring and controlling project performance, developing of project management competencies & methodologies, multi-project management, strategic management, and organizational learning. IT project success was measured with four constructs, which are, the triple constraints (cost, time, scope), product/system quality, user satisfaction, and organization benefit. The research employed a mixed research method. The quantitative data was collected through a self-administrated questionnaire based on a five-point Likert scale which was distributed to 60 respondents, out of which 50 responded. A semi-structured interview was utilized to gather qualitative data from 3 PMO staff members. Descriptive statistics and a paired-samples t-test were used to analyze the before-and-after effect of PMO on IT project success. Additionally, descriptive statistics and linear regression were used to determine the level of contribution and significance of each PMO function on IT project success. The quantitative data were processed using the SPSS tool and the qualitative data was analyzed using thematic content analysis. The findings revealed that before the establishment of PMO, IT project success was poor, with projects failing to fulfil requirements and achieve organizational goals. However, once PMO was implemented, it improved the rate of IT project success by reducing cost overruns, increasing customer satisfaction, enhancing end-product quality and improving financial growth of the bank. The other finding is that, out of the five PMO group functions, multi-project management contributes the most to success of IT projects. While, organizational learning function contributes the least to IT project success. Finally, as a result of the findings, it is suggested that the bank enhances its investment in PMO. In addition, to increase the success of IT projects, 16 specific activities under the five PMO functions are recommended as best practices.
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Project Management, Office (PMO), IT Project Success, PMO Function