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Philip Waweru Macharia - Master of Business Administration in Project Management, Kenyatta University, Kenya

Dr. Rosemary James - Lecturer, School of business, Kenyatta University, Kenya


Most companies in the modern times struggle with the sub-optimization and modifications in their projects, even though good practices have already been unveiled for project portfolio management (PPM). PPM is increasingly adopted by most project based organization such as geothermal development company in order to optimize investment by utilizing a project portfolio management governance structure to address constant change and focus on accomplishment of organization strategy. The enhanced usage of sole projects as a way to deliver products and services has resulted in adoption of PPM as the governance method. Nevertheless, there are many managerial problems associated with single projects in efficiency of PPM which has been identified as limited resources, insufficient project activities, absence of management support, competencies and methods, delayed government funding, ambiguous roles and responsibilities, limited portfolio activities, inadequate management of project orientation as well as inadequate communication management regarding projects.  The main aim of the study was to examine the role of single-project management on efficiency of portfolio management in geothermal development company Nairobi. The specific objectives were to determine the level in which projects clearly specified goals for single projects affect success of portfolio management, to establish how availability of information of single projects for decision makers affect success of portfolio management. In addition, to assess the effect of systematic decision making of single projects management on portfolio management success, as well as to determine how project management efficiency affect success of portfolio management at GDC Nairobi branch. The study used descriptive research design to determine the role of single project management in efficiency of portfolio management at GDC Nairobi branch. The study targeted population was 124 persons working in GDC Nairobi branch. The targeted population was project management team, comprising of top, middle level management and operational staff excluding the lower cadre employees who could not give relevant information regarding the topic of study. Stratified random sampling was used to draw a sample size of 74 respondents. The researcher administered questionnaires to selected respondents, which was on 5-point Likert scale addressing the objectives of the study. Statistical Package for Social Science (SPSS) was used for analyses of the collected data where frequency tables, charts, and bar graphs were developed. The regression and correlation analysis proved that there was significant relationship between single projects management factors with portfolio management efficiency at GDC Nairobi. Inferential statistics were done using Pearson correlation coefficient to show correlation between dependent and independent variables and results of the computation revealed that: Project clearly specified goals availability of information and project management efficiency was Significant at 0.05 significance level. However it was found that there isn’t a significant relationship between systematic decision making and portfolio management efficiency. The findings implied that understanding of portfolio level issues needs to be considered as part of project managers’ capabilities and not only a top management concern. The study concluded that the more active the single-project management, the stronger the positive relationship with portfolio management efficiency and vice versa.  The study recommends that management of GDC needs to pay more attention to how they build linkages between single-project management capabilities and portfolio management efficiency in practice. Strong governance improves efficiency of portfolio project management and aligns communications and strategies across business units. Further research is needed to be explored on other areas other than GDC in order to generalize the results and make it more applicable in the Kenyan sector. Further study to be done to find out other factors that explain the variance and to determine whether portfolio management practices will explain the remaining variance in portfolio management efficiency.

Full Length Research (PDF Format)