Project Portfolio Management Practices On Performance Of County Governments: The Case Of Nairobi County, Kenya

Abstract

Project portfolio management is becoming established in both practice and the literature as a tool for prioritizing and managing multiple projects at the enterprise level. Despite the quantifiable benefits of portfolio management, relatively few public organizations have perfected the practice. In today's environment of tight budgets, rapid change and high risk, it is very astonishing that Nairobi County Government continues to waste resources and efforts by delivering or by getting involved in the wrong projects and programs. This is where portfolio management comes in handy in assisting the county Government in ensuring that the right programs and projects are begun and the wrong ones are not and if they are already ongoing it ensures that they are stopped. Statistics have shown that more than 50% of projects initiated by Nairobi County Government in Kenya are unsuccessfully implemented a situation if it persists it will lead to low services quality. This study therefore sought to establish the effect of project portfolio management practices on performance of County Governments in Kenya, the case of Nairobi County. The design of this research was a descriptive survey research. The population for this study composed of 13 top level managers, 41 middle level managers and 102 low level managers of Nairobi county government. Stratified proportionate random sampling technique was used to select the sample of 111 respondents. The study used a semi structured self-administered questionnaire to collect data from the respondents. Quantitative data was analyzed by descriptive analysis and presented in form of tables. Content analysis was used for the qualitative data and then presented in prose. The study also conducted a Pearson’s correlation analysis to establish the relationship between the variables. According to the findings of the study conclude that portfolio inventory significantly affects performance of county government of Nairobi. Component identification was in regard to proposed, delayed and ongoing projects. the study further concludes that portfolio analysis affect performance of Nairobi County Government. Portfolio analysis ensures good portfolio balance that enables the organisation to achieve both growth and profit objectives. The study further concludes that portfolio planning affects the performance of County of Nairobi. It was evident that Portfolio planning facilitates time planning; it is also a key to organizational stability and flexibility. The research finally concludes that portfolio review affect performance of Nairobi County Government. The study therefore recommends that the management team of County Government of Nairobi should consider portfolio inventory in their projects. The study recommends that the management team of Nairobi County should always perform Portfolio analysis to ensure good portfolio balance that will enable the county to achieve both growth and profit objectives. The study further recommends that in order to facilitate time planning management team of Nairobi County should establish proper portfolio planning. This will result in to organizational stability and flexibility. The study finally recommends that Review process in the project evaluation should ensure that the portfolio contains projects that support the achievement of strategic goals.