Project Portfolio Management as an Enabler of Group Strategy within a Selected Commercial Bank

Abstract

The research topic under investigation is Project Portfolio Management as an Enabler of Corporate Strategy within a Selected Commercial Bank. The topic is important, as project portfolio management is an approach that enables organisation to realize it’s strategic objective. It is an approach that links corporate strategy and implementation. Organisations exist to deliver value to all stakeholders in the current competitive landscape. To achieve business value, projects have to be initiated by the different business units that align to the group strategy and executed efficiently with the available resources. However, organizations continue to face challenges that impede the timely and cost-effective delivery of projects. The research topic becomes important as it aims to explore the challenges that hinder effective project portfolio management, with an emphasis on project selection, prioritisation and alignment capabilities. Also to assess whether effective project portfolio management indeed improved employee productivity and business profitability. This is so organisation can close the gap between strategy formulation and implementation. A conceptual model is constructed by analysing literature, which takes into account corporate strategy, project portfolio management capabilities, staff productivity, and business profitability. This model can be utilised for upcoming empirical studies on the impact of strategy on project portfolio management and its effectiveness.

Quantitative research was employed as the research methodology in this study. The rationale behind selecting this particular methodology is its ability to facilitate rigorous hypothesis testing, establish causal relationships, and ensure the applicability of research findings to a broader population. Stated differently, it provides a response to the question of quantity. The study further employed the judgmental random sampling technique to choose 163 individuals. A questionnaire was utilised to gather information from the respondents. Descriptive statistics and percentages were utilised to address the research questions posed in the study, while regression and correlation analyses were employed to examine the research hypotheses. The findings of this study revealed lack of collaboration between the different units in selecting and prioritising projects, employee lack of understand of how their day-to-day activities link to the group strategy as challenges that hinder effective project portfolio management with the selected bank. The respondents agree that the improvement of project portfolio management will improve employee productivity and business profitability.

Moreover, the researcher provided recommendations based on the study's findings and conclusions. For example, the selected bank should include a strategic pillar that will focus on fostering collaboration within the group. Design a consistent framework to select and prioritise projects. And define processes that will enable business unit executive to consistently share the consolidate view of prioritised initiatives with all employees. Lastly create a platform for employee to give feedback on strategy