Abstract
M.Tech.
The question whether risk management contributes to project success is considered relevant considering the long history and high rates of failure in Information Technology (IT) projects. Much work and research has been done to investigate the relationship between risk management and project success but very few studies provide empirical evidence to substantiate the claims made on the relationship between these two concepts. Poor risk management has been associated with project failure while the question whether good risk management results in project success still cannot be unequivocally answered. The goal of this study is therefore to investigate the implications of project risk management maturity on project success in the South African telecommunications industry.
To achieve the goal of this research a literature review was carried out to unearth the research questions relevant to this study. A survey questionnaire was compiled and sent out to IT project managers in the telecommunications industry in Gauteng, South Africa. The questionnaire gathered quantitative data from a purposive sample large enough to produce the results needed for this research. The questionnaire evaluated the risk management maturity of organisations in the telecommunications industry. It also determined definitions of project success that are prevalent in the industry and ranked factors that influence project outcomes. Furthermore, the questionnaire set out to establish current IT project success and failure rates in the telecommunications industry. This data was then analysed and conclusions drawn about risk management maturity and project success. Recommendations to the telecommunications industry were made based on the findings of the data analysis. The purpose of a literature study in this research was to provide clarity and focus for the research problem. It also broadened the researcher’s knowledge about the specific research area, thus allowing the researcher to become acquainted with the available body of knowledge regarding why and how risk management is associated with project success or failure. The quantitative research approach was used as it is on the basis of quantitative data that a correlation between risk management maturity and project success can be determined. A survey questionnaire was used as it provided anonymity, confidentiality and ease of administration.
The findings of the research indicate that risk management maturity in the telecommunications industry is low. Organisations that claim higher levels of risk management maturity also have higher rates of IT project success. However this correlation is not significant when the responses are considered out of the organisational context. This is an indication that the organisational environment plays a role in determining project outcomes. The delivery of business benefits and customer satisfaction are more important than the traditional view of measuring project success by time, budget and scope/quality. Furthermore, communication within the project team and between team members and the customer has been found to be necessary for the delivery of successful IT projects. The improvement of risk management practices increases the chances of project success. Organisational effort in improving risk management practices does yield positive project outcomes. This research highlights areas for further investigation in the study of the relationship between risk management and project success.