The aim of this research is to investigate the level of alignment between strategy and projects, the level of the integration of the project management and benefits management practices -mainly formulation of project’s target benefits-, and how much such integration improves the success of business strategy execution (BSE). In addition, it will focus on understanding the critical literature on: rrelations between strategy and IT project portfolio management (IT PPM), project management methodology and governance and benefits realization management (BRM).

This research is to analysis the impact of the integration of the formulation of project’s target benefits with the project management practice on the execution of the business strategies in the banking sector in Saudi Arabia.

The aim of this research is to investigate the level of alignment between strategy and projects, the level of the integration of the project management and benefits management practices -mainly formulation of project’s target benefits-, and how much such integration improves the success of business strategy execution (BSE). In addition, it will focus on understanding the critical literature on: rrelations between strategy and IT project portfolio management (IT PPM), project management methodology and governance and benefits realization management (BRM).

International results emphasize that IT projects do not contribute to the strategy of the organization. The results also indicate that there is a shift in how IT projects success is measured, i.e. towards BRM. However, there is no research on benefits management and its impact on IT project success and ultimately the success of the banks’ strategy in Saudi Arabia. This acted as a motivating factor for the researcher’s interest in investigating how BRM is adopted, and whether the integration between the formulating project’s target benefits and project management practice can support the successful execution of business strategies in this emerging market.

Relation to previous research (Theoretical Framework)

Organizations recognize projects as a structured way to implement business changes. Moreover, in order to succeed in BSE and in turning their vision into reality, they need to ensure the success of their projects (Serra and Kink, 2015). Therefore, they choose those projects that deliver the most valuable results for the implementation of the business strategy in the most effective and efficient way as they do not have infinite resources to invest (Gray and Larson, 2006). In particular, financial institutions need to ensure that they select the best projects to achieve their long-term goals, create economic value, gain competitive advantage and optimize the use of limited resources (Martinsuo and Killen).

Once the correct projects are selected, project success is measured by its efficiency in the short term and its effectiveness in achieving the expected results in the medium and the long term (Müller and Jugdev, 2012).

(Shenhar and Dvir, 2007) have recognized the limitations and the misleading nature of the traditional output-focused project management approach. Specifically, this approach focuses on efficient delivery of project outputs (e.g., an artifact such as a system) on time, on budget and according to specifications (the so-called iron triangle). (Zwikael and Smyrk, 2012) has shown that a project can still be a failure even if the iron triangle is met. One such example is the Los Angeles Metro project (Shenhar and Dvir, 2007).

Consequently, there is a shift in the literature towards benefit-oriented project management. This line of research emphasizes the strategic roles of projects (e.g., Artto et al., 2008) which is aiming to link organizational strategies and project benefit realization (Eweje et al., 2012). (Bradley, 2016) has suggested that BRM makes the value and the strategic relevance of each project clear, and enabling an increased effectiveness of project governance.

Furthermore, this line of research emphasizes the formulating of the project’s target benefits as the first and critical step in the benefits management process. Besides it should be done prior to the selection of project outputs to ensure a strong linkage with organizational strategic goals (Zwikael and Smyrk, 2012) and to make sure IT projects add value to the organization (financial, quality, flexibility, innovation, etc.).

Therefore, the researchers invented models and framework to manage benefits. Some of them are: the Cranfield Process Model by (Ward et al. 1996), the Active Benefit Realization model by (Remenyi et al. 1997), the Benefits Realization Approach to IT investments by (Thorp, 2002), IT Benefits management by (Argyropoulou et al. 2009), the Benefits Realization Approach by (Sanchez and Robert, 2010), Project Investment Evaluation by (Zwikael and Smyrk 2012), Responsibility and Authority by (Badewi 2016), the Benefit Realization Management method by (Bradley, 2016), PMI life cycle of benefits management, and the Gartner Group’s model of benefits management.

This research is to assess the impact of the implementation of the early stage of such modules, formulating of the project target benefits, and integrate it with project management practices on the execution of banks’ strategy in Saudi Arabia.

Proposed methods

To ensure some level of accuracy in the research findings, the research project will use multi-method approach, which is referred to as triangulation (Bell, 1999). It will be based on a combination of both primary data and secondary data, which will be collected by carrying out literature review, interviews and questioners, and searching and finding the documents.

The first step is to analyse the secondary data by reviewing the existing literature, which can be found in the form of books, academic articles, journals and periodicals written by academics, journalists and experts. An extensive literature review will be conducted to determine the best practices involved in IT PPM, BRM and the subsequent BSE. About 30 references will be consulted which will provide the necessary theoretical foundation to proceed to the next step in the research process.

Primary data will be collected by performing interviewing.  The researcher will interview about 10 senior managers, portfolio/program/project manager and benefits managers who are working with or serving banking sector. In addition, the researcher will conduct a survey study by collecting data from about 50 questionnaires.

Interviews were chosen as the primary research method as it will allow the researcher to understand the subjects’ experiences (Cunningham, 2008). It provides a broad range and depth of information, as the researcher will develop a relationship with the subjects’ experiences and they can be flexible during the interview itself. The researcher will develop a semi-structured interview approach, which can keep the participants focused on the interview questions while also allowing them to discuss additional relevant practices. The researcher will identify about 10 project, programme and portfolio managers, functional unit managers and C-level executives of Banks who could participate in interviews. The researcher will use open-ended and close-ended questions. The open-ended questions will be applied in order to explore the hidden areas in a way that ideas and salient features will be discussed and opinions regarding the research will be explored as well. Questionnaires with be close-ended questions and it will permitted to obtain better data accuracy and limit interviewer bias (Paneerselvam, 2004).

The sample will be selected by stratified random sampling procedures over a population composed by project management practitioners who have worked in the field in the last three years in banking sector in Saudi Arabia.

The document searching process will help the research to perform the detailed and comprehensive examination in order to support and complement the data, which will be obtained from interviews.

The study will use statistical descriptive methods to analyse, explore and understand the data the researcher will collected (Kumar, 2008). After all the data is collected, multivariate analysis will be employed to identify the causal relationship between several independent variables and one dependent variable using multiple regressions (Tabachnick and Fidell, 2007) performed with the software package like IBM SPSS.

Reflections

In this project, there are many excepted obstacles and challenges, like: time, information confidentiality, availability of relevant research and the researcher’s bias.

Time is the main potential difficulties for two reasons: the tight timeframe of the project and the availabilities of the people who will be involved in the interviews. The timeframe for this project is two months which is very tight. To overcome this difficulty, the researcher will work full time on the project. The other time difficulty is related to the people who will be involved in the interview, those people have different priorities from the researcher. As the research knows and has a relation with the participants, the interviews can be done during the working hours to overcome time issues.

The other difficulty is related to confidentiality. Financial institutions in general and practically Saudi’s banks will not allow to share their internal data. However, this project does not require sensitive data, so the project will be in line with the banks policy and disclosure procedures.  the research will be conducted in a confidential manner so that the participant’s information will be preserved and will not be given to the third party. Moreover, the participants who are involved in the interviews and questioners to collect the primary data will be contributing on their own and no single person will be forced to become a part of this research.

The researcher needs to study the secondary data to develop the primary data. A potential difficulty in the availability of relevant research and theoretical developments in the Saudi Arabia.

The researcher has been working in manging IT project in banking sector for more than ten years which might create a potential bias during the research process as the research as he already developed assumptions about the research; however, the researcher should make sure that the research would be done with open mind so that the research will not be affected because of potential bias.

Timetable

The Gantt chart below shows the key activities and time associated with this project

References

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Artto, K.A., Martinsuo, M., Dietrich, P., Kujala, J., 2008. Project strategy: strategy types and their contents in innovation projects. International Journal of Managing Projects in Business 1, 49–70.

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Zwikael, O., Smyrk, J., 2011. Project Management for the Creation of Organisational Value. Springer.