ST.

MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES

Factors Affecting Successful Implementation of Integrated Financial

Management Information System (IFMIS) at Ministry of Finance
and Economic Cooperation(MOFEC)

BY
Addis Wasihun

May, 2018

Addis Ababa, Ethiopia

i
Factors Affecting Successful Implementation of Integrated Financial
Management Information System (IFMIS) at Ministry of Finance
and Economic Cooperation(MOFEC)

BY
ADDIS WASIHUN

ID:SGS/0391/2009A
Advisor:
Maru Shete (PhD and Assoc. Prof.)

A THESIS SUBMITTED TO ST. MARY’S UNIVERSITYSCHOOL OF GRADUATE

STUDIES FOR PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
AWARD MASTERS OF PROJECT MANAGEMENT.

May, 2018

Addis Ababa, Ethiopia

 Statement of Declaration
I, Addis Wasihun, hereby declare that this thesis entitled “Factors Affecting successfulness of
IFMIS project implementation at MOFEC" submitted by me for the award of the of Master of
Project Management, St. Mary’s University at Addis Ababa, Ethiopia, is my original work
and it has never been presented in any university. All sources and materials used for this thesis
have been duly acknowledged.

Name: Addis Wasihun

Signature: ___________________
Place: Addis Ababa
Date of Submission: May, 2018

This master thesis has been submitted for examination with my approval as thesis.
Advisor Name: Maru Shete(PhD and Assoc. Prof.)

Signature_______________________ Date___________________________

Approved By Board of Examiners:

_________________ _________________

External Examiner Signature

________________ _________________
External Examiner Signature

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 ACKNOWLEDGEMENTS

Above all I Thank Almighty God for everything in my life. I would also like to thank my
lovely husband Legesse Dibaba and whole Family for encouragement while I was conducting
this work and support from the very beginning of my education. I am also grateful to my
advisor Dr Maru Shete for his kindness and support by commenting my entire thesis. I am
also indebted to my friends, colleagues for their support during this study. Finally, I want to
express my deep appreciation to my respondents for their unconditional assistance.

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 Table of Contents
ACKNOWLDGEMENT ....................................................................................................................... ii

LIST OF TABLES ............................................................................................................................... vi

LIST OF ACRONYMS....................................................................................................................... vii

ABSTRACT ....................................................................................................................................... viii

CHAPTER ONE ................................................................................................................................... 1

1.INTRODUCTION.............................................................................................................................. 1

1.1 Background of the Study ............................................................................................................. 1

1.2 Statement of Problem .................................................................................................................. 2

1.3. Research Objectives ................................................................................................................... 3

1.3.1. General Research Objective ................................................................................................ 3

1.3.2 Specific Research Objectives ............................................................................................... 3

1.4. Scope and Limitation of the Study ............................................................................................. 3

1.4.1 Scope of the Study ............................................................................................................... 3

1.4.2Limitation of the Study ......................................................................................................... 4

1.5. Significance of the Study ........................................................................................................... 4

1.6 Organization of the Thesis .......................................................................................................... 5

CHAPTER TWO .................................................................................................................................. 6

LITERATURE REVIEW...................................................................................................................... 6

2.1. Introduction ................................................................................................................................ 6

2.2. Theoretical Review .................................................................................................................... 6

2.2.1 The Concept of IFMIS ......................................................................................................... 6

2.2.2 IFMIS Implementation in Government of Ethiopia ............................................................. 7

2.2.3 Project Management Critical Success Factors ......................................................................... 9

2.2.4 Critical Success Factors of IFMIS ......................................................................................... 10

2.2.5 Criteria for Evaluating Success or Failure of Project ............................................................. 11

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 2.3Empirical Review of Literature .................................................................................................. 12

2.3.1Change Management and Project Success .......................................................................... 12

2.3.2 Resistance to Change and Project Success ......................................................................... 13

2.3.3 Technological Infrastructure and Project Success.............................................................. 14

2.3.4. Human Capital Development and Project Success ........................................................... 15

2.3.5Top Management Commitment and Project Success .......................................................... 17

2.4 Conceptual Framework ............................................................................................................. 18

CHAPTER THREE............................................................................................................................. 20

RESEARCH METHODOLOGY ........................................................................................................ 20

3.1 Research Design and Approach ................................................................................................ 20

3.2 Population and Sampling .......................................................................................................... 20

3.3. Data collection Techniques ...................................................................................................... 22

3.4 Procedures of Data Collection................................................................................................... 22

3.5 Data Analysis Technique .......................................................................................................... 22

3.6 Validity and Reliability ............................................................................................................. 23

3.6.1 Validity............................................................................................................................... 23

3.6.2 Reliability ........................................................................................................................... 23

3.7 Research Ethics ......................................................................................................................... 24

CHAPTER FOUR ............................................................................................................................... 25

RESULTS AND DISCUSSION ......................................................................................................... 25

4.1 Introduction ............................................................................................................................... 25

4.2 Background Information ........................................................................................................... 26

4.2.1 Demographic Characteristics of Respondents.................................................................... 26

4.3 Factors Affecting successfulness of IFMIS .............................................................................. 30

4.4IFMISSuccess Measuring Factors.............................................................................................. 30

4.3.1 Effect of Change Management on IFMIS project Success .............................................. 33

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 4.3.2 Human Capital factors for IFMIS implementation ............................................................ 36

4.3.3 Technical and Infrastructural Factor for IFMIS Implementation ....................................... 39

4.3.4 Top management commitment as success factor ............................................................... 42

4.5. Regression analysis .................................................................................................................. 44

4.5.1 Dependent variable............................................................................................................. 44

4.5.2 Independent variables......................................................................................................... 45

4.5.3. Regression Coefficient ...................................................................................................... 45

CHAPTER FIVE................................................................................................................................. 46

SUMMARY, CONCLUSSION AND RECCOMENDATION .......................................................... 46

5.1. Introduction .............................................................................................................................. 46

5.2. Conclusion ............................................................................................................................... 46

5.3. Recommendation...................................................................................................................... 47

References ........................................................................................................................................... 49

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 LIST OF TABLES
Table 3.1 Respondents distribution by functional areas…………………………………………………………....22

Table.4.1: Response Rate ………………………………………………………….……………………………………………..27

Table 4.2: Age Distribution of Respondents………………………………………………………….………………….29

Table 4.3: Respondents Educational Level………………………………………………………….…………………….30

Table 4.4: Respondent Service Year and Experience in using IFMIS…………………………………………30

Table 4.5: Success Measuring Factors IFMIS…………………………………………………………………………….32

Table 4.6: Effect of Change Management Factors on the Success of IFMIS……………………………...34

Table 4.7: The Effect of Human Capital Factors on the Success of IFMIS…………………………………37

Table 4.8: Effect of Technical and Infrastructural Factors on the Success of IFMIS………….………39

Table 4.9: Effect of Top Management Commitment Factors on the Success of IFMIS……….……..41

Table 4.10: Regression Coefficients………………………………………………………….………………………………45

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 LIST OF ACRONYMS

 IFMIS - Integrated Financial Management Information system.

 COA - Chart of Accounts
 CSRP - Civil Service Reform Program
 IBEX - Integrated Budget and expenditure
 EBS - Oracle E-Business Suite
 EMCP - Expenditure Management and Control Program
 ERP - Enterprise Resource Planning
 GFS - Government Financial System
 HR - Human Resource
 ICT - Information Communication Technology
 IFMIS - Integrated Financial Management Information System
 LICs - low-income countries
 MoE - Ministry of Education
 MoFEC - Ministry of Finance and Economic cooperation
 PFM - public financial management
 TSA - Treasury single Account
 USAID - united states agency international development

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 ABSTRACT
This study sets out to analyze the critical success factors of integrated financial management
systems in Ministry of finance and economic cooperation. Government of Ethiopia realized
the importance of IFMIS towards efficient and effective service delivery. This study therefore
named at examining how change management, technological infrastructure, human capital
development and top management commitment affect the effective implementation of IFMIS
in ministry of finance and economic cooperation. The scope of the study was MOFEC the
owner or implementer of this system. A causal research design is adopted with a quantitative
research approach. The target population of this research was IFMIS users from eight
directorates which is 113 population and simple random sampling was used to select 88
employees. Data was collected by means of a questionnaire. The findings of this study
revealed that MOFEC did not manage change to IFMIS effectively; the technological
infrastructure for the roll out has not been availed; some aspects of human capital
development have not been addressed; there is lack of top management commitment on IFMIS
and MOFEC has not allocated enough resources towards of IFMIS implementation. This
study recommends that for IFMIS implementation to be effective, change management should
be handled better, MOFEC should upgrade IFMIS user with regular training, there should
be technological and infrastructural availability in the organization and proper change
management work.

Keyword: Technological Infrastructure, Change Management, Human Capital Development,

Top Management Commitment, MOFEC, successfulness of IFMIS project.

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 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

According to the review made by USAID,2012. All over the world there is increased
determination to enhance the quality of public financial management with many developed
and developing countries making vital and impressive achievements in strengthening
management of finance in their public sector. In the past decade, developing countries have
been encouraged to reform their public expenditure management systems and have
increasingly embarked on major projects to computerize their government operations,
particularly with respect to public financial management (PFM). Most common among these
have been efforts to introduce integrated financial management information systems (IFMIS)
that computerize and automate key aspects of budget execution and accounting operations
across the institutions of government. IFMIS can enable prompt and efficient access to reliable
financial data and help strengthen government financial controls, improving the provision of
government services, raising the budget process to higher levels of transparency and
accountability, and expediting government operations.
A survey was carried out by International Monetary Fund on government accounting in 1993
and followed by a World Bank sponsored research.

The recommendations that came from the two international bodies are to computerize the
entire auditing and accounting systems in developing countries. The rationale behind the
computerization is to produce a credible financial statement: to check and manage public
deficits, to estimate or monitor cash flows to ensure that effective financial control was be
achieved (Kinyua, 2003).

A directive was issued by Department for International Development on public financial

management that specified, there are issues of concerns raised by public, governments,
developing agencies on government expenditure (DFID, 2003). This shift was seen as the
eyes of World Bank to offer Africa a step ahead of passing through immediate stages of
development. Due to this, the consultants and other advisors of government in Africa

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embark on searching for ideas by introducing modern information technology, “Integrated
Financial Management Information System” (IFMIS).The main objective of IFMIS is to
promote good governance by providing managers with financial information to formulate
budgets, manage resources, and perform business and administrative functions. The benefit
of IFMIS is to ensure efficiency in resource.

1.2 Statement of Problem

There is broad agreement that a fully functioning IFMIS can improve governance by
providing real- time financial information that financial and other managers can use to
administer programs effectively, formulate budgets, and manage resources (Rodin-Brown,
2008).
Despite the mandatory requirement for the Public organizations to fully implement IFMIS
MOFED annual and quarterly status report have consistently highlighted the failure of these
Public bodies to fully implement IFMIS in their operations, failure to adopt IFMIS fully limits
transparency in financial management and standard financial reporting. A report published by
International Monetary Fund (2005), stipulates several factors that contribute to the stalling
of IFMIS in developing countries. Paramount among these are lack of clarity in ownership of
the system and unclear authority to implement, failure to clearly specify the basic
functionality, failure to spend enough time on the design phase, failure to reengineer
procedures, failure to undertake parallel reforms required by the IFMIS, neglect to “sell” the
system to agencies, overestimating the information to be included in the system and
unrealistically short project timetable, among others. Implementation success comes when
there is user involvement in the implementation process, clear goal setting, top level
management support, appropriate infrastructure and support and efficient human capital.
Since the pilot sites and roll out Public bodies started using IFMIS system no effort has been
made to have discussion on benefit and challenges of using the system with implemented sites
top management or on how this issues may be resolved. Therefore, that this research study
sought to analyze the critical success factors of IFMIS and how this success factors affect
successful implementation.

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1.3. Research Objectives

1.3.1. General Research Objective

The general objective of this study will be to assess the factors that affect the implementation
of integrated financial management information system in Ethiopia Public Sector.

1.3.2 Specific Research Objectives

 To identify the influence of Change Management on implementation of Integrated

Financial Management Information Systems in Ethiopia.
 To determine the influence of Technological Infrastructure on implementation of
Integrated Financial Management Information Systems in Ethiopia
 To assess the effect of top management commitment on the implementation of IFMIS.
 To explore the influence of implementation strategy on performance of Integrated
Financial Management Information System in Ministry of finance and economic
cooperation.
 To determine the influence of capacity and skills of IFMIS users on its
implementation in Ministry of finance and economic cooperation.


1.4. Scope and Limitation of the Study

1.4.1 Scope of the Study

This study will focus on Factors which affect the implementation of integrated financial
management information system in Ministry of finance and economic Cooperation. The scope
and functionality of IFMIS in Ethiopia is limited to nine modules which is General Leger,
Account payable, Account Receivable, Cash Management, Supply chain management,
Account receivable, Fixed Asset Management, Public Sector Budgeting and Payroll Modules.
Enterprise Resource Planning (ERP) programs that integrate all of these functions into the
IFMIS system architecture have become the standard for large commercial organizations, but
full integration is rare in the government realm. In many cases, where other “legacy” systems
already exist but operate on separate “platforms”, a minimum is for all of these systems and
their databases to be able to interface with the IFMIS Although, IFMIS is new reform and

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look three years in piloting and three years in implementation, the study will not have
concerned with the assessment of whether the IFMIS implementation increases the output of
the public bodies or not. It also did not evaluate the performance of public bodies after
applying IFMIS.

1.4.2Limitation of the Study

The following are the limitation while conducting this research work:
 Lack of sufficient related literature made in the case of Ethiopia public sectors.
 Time is not sufficient to collect data

1.5. Significance of the Study

The study is of value to Policy/decision makers because it aims to give recommendations on
some best practices that can be adapted for effective implementation of IFMIS. It also offers
a chance for strategic policy considerations related to the influence/power of ICT in Ethiopia.
This study also gives insights to the government institutions specially MOFEC, the
responsible government organization of IFMIS implementation, on how they can form a
foundation for enhancing effective implementation of IFMIS throughout the country. It would
act as a guide to the government (MOFEC) on how they can offer or mitigate polices that
affect business re-engineering, how IFMIs users’ resistance reduced, how these users’ skills
improved and how to increase the availability of ICT infrastructure for effective
implementation of IFMIS. It is hoped that the findings of the study would make valuable
additions to the existing literature and stimulate further interest in ICT based initiatives. The
study is a source of reference material for future scholars or academicians on other related
topics; it can also help others who will undertake the same topic in their studies. The results
of this study can be used by academics to discuss on the factors affecting the performance of
IFMIS implementation in Ethiopia. The study also highlights other important relationships
that require further study.

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1.6 Organization of the Thesis
This study is organized into five main chapters. The chapter one of the study presents the
general introduction of the study includes; background of the study, statement of the problem
with basic research question, objective of the study, significance of the study, scope of the
study and definition of terms. The second chapter was dedicated to review of related literature.
The third chapter presents a method of the study. It described the type and design of the
research per sued, detail description of participants/sample/ of the study, data sources, data
collection tools and procedures, methods of data analysis and the like. The fourth chapter
covered results and discussions about the research topic based on the result of third chapter.
Here, the results/findings of the study summarized and discussed with the use of related
literature review was explained. Finally, the fifth chapter explain the conclusion and
recommendation part of the study.

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 CHAPTER TWO

REVIEW OF RELATED LITRATURE

2.1. Introduction
This chapter reviews the existing literature, information and publication on the topic related
to the research problem by accredited scholars and researchers. This section examines what
various scholars and authors have said about factors affecting the implementation of
Integrated Financial Management Information System, in particular it covers the theoretical
review of literature, conceptualization of research problem, empirical review of the literature.

2.2. Theoretical Review

This section reviews theories related to the study. A formal theory is syntactic in nature and
is only meaningful when given a semantic component by applying it to some content such as
facts and relationships of the actual historical world as it is unfolding.

2.2.1 The Concept of IFMIS

According to both Dorotinsky (2003) and Rozner (2008) an IFMS is an information system
that tracks financial events and summarizes financial information. It supports adequate
management reporting, policy decisions, fiduciary responsibilities and the preparation of
auditable financial statements. In its basic form, an IFMS is little more than an accounting
system configured to operate according to the needs and specifications of the environment in
which it is installed Rodin-Brown (2008). In general terms, it refers to the automating of
financial operations. The introduction of Integrated Financial Management Systems has
become a core component of financial reforms to promote efficiency, security of data
management and comprehensive financial reporting. IFMIS provides an integrated
computerized financial package to enhance the effectiveness and transparency of public
resource management by computerizing the budget management and accounting system for a
government. It consists of several core sub-systems which plan, process and report on the use
of public resources, Rodin and Edwin (2008). The scope and functionality of IFMS can vary
across countries, but sub-systems normally include accounting, budgeting, cash management,
debt management and related core treasury systems. In addition to these core sub-systems,

6
some countries have chosen to expand their IFMS with non-core sub-systems such as tax
administration, procurement management, asset management, human resource and payroll
systems, pension and social security systems and other possible areas seen as supporting the
core modules, Brown (2008). The scale of IFMS may also vary and be limited to specific
country-level institutions such as the Ministry of Finance. However, IFMS is generally meant
to be used as a common system across government institutions, including in the more
ambitious schemes for federal, state and local governments. The integration of IFMS across
the board ensures that all users adhere to common standards, rules and procedures, with the
view to reducing risks of mismanagement of public resources, IFMS (2000). Dorotinsky
(2003) argues that there are a number of ways in which IFMS can improve public finance
management, but generally IFMS seek to enhance confidence and credibility of the budget
through greater comprehensiveness and transparency of information. They seek to improve
budget planning and execution by providing timely and accurate data for budget management
and decision making.

2.2.2 IFMIS Implementation in Government of Ethiopia

Over the last Six years, the Ethiopian government has initiated some capital investment
towards set up and installation of ICT infrastructure. Funding for these investments is
achieved through partnerships between the government and development partners. The
foreign funding component constitutes the largest percentage of this investment in terms of
technology. The government contribution is usually in the form of technical and support staff
and facilities including buildings. So far, the Government Information Technology Investment
and Management Framework is connecting all ministries to the Internet under the Executive
Network (USAID 2012). The government is also connecting the Ministries to run integrated
information systems for example the Integrated Financial Management Information System
(IFMIS) and the Integrated Personnel and Pensions Database (IPPD). In Ethiopia, most ICT
projects are initially donor funded and hence IFMIS was no exception. Again, some donations
are made without prior consultation or carrying out a needs analysis by the recipient
organization. Further, operational/running costs are met by the government with donor
funding (capital and human resource requirements) ending with the first project phase. The
budgets for such projects are inadequate but rising, there is lack of ICT policies and master
plans to guide investment to the extent that, with different number donors funding several ICT

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projects, there has been cases of multiple investments for the same product due to lack of
coordination. Finally, there has been lack of focus on ICT applications that support traditional
administrative and functional transactions rather than on effective information processing and
distribution within and without government departments. For instance, an investigation
carried out Accountants General office, Parasurman and Colby (2009) found that the computer
upgrade in the various Ministries including treasury has suffered from persistent problems,
limiting the department's capabilities. In a similar vein, DFID has also commented more
generally that: "In Ethiopia there is a lack of political or bureaucratic will to use the budget as
the authoritative tool in resource allocation or to use the output of the IFMIS to hold people
to account. At an absolute minimum, the Ministry of Finance Accountant General's
Department may not be willing and able to substantially influence the accounting operations
of spending Ministries" (DFID, 2003). This confirms the fears that the implementation of the
IFMIS in Ethiopia is facing serious doubts among management, and employees using it are
resisting in their own ways.

The system has been seen as too complex to handle daily routine work and the experts in the
Ministry of Finance doubt the adequacy of the solution provided by the new system. In
addition and perhaps because of the 5 other problems, there has been some resistance and
sabotage to the project, and hence the challenge of dealing effectively with resistance to
implement it (World Bank, 2004). The management commitment for change is questionable
if the gap is too large. If existing rules are ignored or manipulated by powerful interest groups,
it is difficult to imagine that this behavior will fundamentally change with a new IFMIS, which
is based on compliance with formal rules. There is increasing concern on IFMIS effectiveness,
at a time when most Ministries have rolled out the system. The final users of the system have
not been properly prepared to handle a system of such magnitude. This is attributed to the fact
that training in Ministry is supply, rather than demand driven Dimantopawulos (2004).The
introduction of an IFMIS by any government should be regarded as part of a long process of
reform. This process takes time to fully implement, costs millions of dollars, and has a
substantial recurring operating cost. Thus IFMIS should be regarded as a major project
requiring a structured project management approach. However, a hurried installation of the
system may be the government undoing Gibson and Nolan (2003).

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2.2.3 Project Management Critical Success Factors
Defining project success poses another challenge in understanding project management and
consequently assessing its performance. It is generally accepted however, that the success or
otherwise of a project can be defined through the convergence of, the ability of the process to
meet the technical goals of the project whilst not deviating from the three constraints of scope,
time and cost; the usefulness of the project as perceived by beneficiaries and sponsors as well
as the project team; and the performance of the project Hendriks (2012). By such a definition,
project success or failure can only be effectively measured at the completion of the project.
This is concurred with by (Joslin, Müller, (2015). definition of project success which measures
success or failure by the elements of the project log-frame and thus, the effective utilization
of the project output. Projects generally fail as a result of poor planning, constant changes in
the scope and consequently deadline and budget, as well as the lack of monitoring and control.
(Oliver,2001).introduced five maxims of measuring project satisfaction regardless of project
scope, size or duration which are; delivering the product that the customer desires or needs;
delivering quality consistent with price; delivering the project within the timeframe stipulated
by the customer; delivering the desired degree of feedback that the customer desires; having
a system of conflict resolution that is fair to both the customer and the development team.
Mwakio,(2015) distinguished between project success, which is measured against the overall
objectives of the project, and project management success measured against the widespread
and traditional measures of performance against cost, time and quality, Pinto and (Oliver
2001), came out with a set of best practices for project management which were believed to
contribute to project success. These include: Project Mission – the initial clarity of goals and
general direction; Top Management Support – the willingness of top management to provide
the necessary resources and authority for project success; Project Schedule/ Plans – a detailed
specification of individual action steps required for project implementation; Client
Consultation – communication, consultation, and active listening to all impacted parties;
Personnel – recruitment, selection, and training of the necessary personnel for the project
team; Technical Tasks – availability of the required

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2.2.4 Critical Success Factors of IFMIS
Success factors as those inputs to the management system that lead directly or indirectly to
the success of the project or business. IT projects are well known for having high failure rates
(Randeree& Ninan, 2009). It is estimated that about one-third of all IT projects either fail or
are abandoned, and around 40 per cent of application development projects are cancelled
before completion. According to Rockart (1999), the process of identifying CSFs helps to
ensure that those factors receive the necessary attention. The Project Management Institute
(PMI) defines projects as a means of achieving organizational goals and objectives, often in
the context of a strategic plan. Study by Payne (2010) notes that, it is important to set out key
goals and objectives that need to be achieved in order to give purpose to the vision and
mission. In his study(Miheso,2013) further notes that specific strategic actions then need to
be developed against these key goals and objectives and that these actions should be
measurable achievable and have resources and timeframes allocated. Clear goals and
objectives are the third most critical success factor in a study of IT system implementations
Pinto & Slevin (1987). Initial phase of any project should begin with a conceptualization of
the goals and possible ways to accomplish these goals. Report by Payne (2010), found that
clearly communicated goals helped companies achieve continuous improvement in system
implementations. Study by Graski and Leech(2007).found that one of the biggest problems
IFMIS systems project leaders face come not from the implementation itself, but from
expectations of board members, senior staff, and other key stakeholders. It is thus important
to set the goals of the project before even seeking top management support. In a survey by
Nah (2003), it was found that having competent members in the project team is the most
important success factor for IT system implementations. Both business and technical
knowledge are essential for IS success. Report by Grabski (2007), identified that knowledge;
skills, abilities, and experience in both technical and business aspects are all critical factors in
determining a project’s success or failure. Analysis by Rodin (2008) noted that attention
should be paid to the composition of the project team which should contain both business and
well trained technical team members. Implementing any system in the organization brings
about changes in processes, roles policies and functions. With these changes come resistance
from some of those affected.

10
Report by Payne(2010)asserts that resistance to change may come from various stakeholders
in the organization such as individuals with vested interests who benefited from previous
methods, civil servants who see it as a threat to their jobs and people who resist change for
the fear of the unknown. Change management is therefore the process of creating, maintaining
and systematically evaluating changes that occur in the organization Pinto & Slevin (1987).
This can be done through clear communication, education, training and other methods that
emphasize on the need and benefits of the change. This can be done through various channels
such as the media, workshops, seminars or conferences. An IFMIS generally implies
fundamental changes in operating procedures and should be preceded by a detailed functional
analysis of processes, procedures, user profiles and requirements that the system will support
Chene (2009). Key high-level government goals will only be achieved if the IFMIS solution
supports a wide range of business processes that transcend functional, business, organizational
and geographic boundaries. IFMIS design should, therefore, be preceded by detailed
functional analysis that underpins current functional processes, procedures, user profiles and
requirements that the new system will support Kimwele (2011). The introduction of an IFMIS
can be regarded as an organizational reform which deeply affects work processes and
institutional arrangements governing the management of public finance. Challenges and
obstacles can have a devastating effect on the success of the implementation and management
of the process and should not be underestimated.

2.2.5 Criteria for Evaluating Success or Failure of Project

There are different criteria for evaluating project performance. This section will summarize
the results of different studies on the criteria’s for project evaluation. Project success was
measured on the bases of time, cost and quality Heeks (2000), Miheso (2013) identified these
three criteria as the ‘Iron Triangle’. He further suggests that while some different definitions
about project management have been made, the criteria for success, namely cost, time and
quality remain and are included in the actual description. Apart from these three basic criteria
Pinto and Pinto (1991) supported that measures for project success should also include project
psychosocial outcomes, the satisfaction of interpersonal relations with project team members.
The inclusion of satisfaction as a success measure can also be found earlier in the work of
Heeks, and Davies (2000), Waruinge (2008) included a variety of criteria in their study. These
include meeting budget, schedule, and quality of workmanship, client and project manager’s
11
satisfaction, transfer of technology, friendliness of environment, health and safety. Different
literature suggests that different criteria were hypothesized (offered) by different researchers.
Therefore, this study chooses project time, cost, quality, and customer satisfaction as the
criteria for project evaluation. This is principally due to that the cost, time, and quality metrics
are objective (unbiased) in nature, allowing a direct comparison of projects with different
types, scopes, and sizes across different industries.

2.3Empirical Review of Literature

2.3.1Change Management and Project Success

Rodin-Brown(2008), in a study discussing the Best Practices for Designing and Implementing
IFMIS and how to implement them in developing and transitional countries, came to the
conclusion that change management must be addressed early in the needs assessment phase
of IFMIS implementation. If human needs are not addressed, the project will constantly be
faced with resistance and obstacles from executive staff and elected officials, all the way down
to civil service personnel who use the system regularly. Introducing modern financial
management systems demands a commitment to change: change in technology, in processes
and procedures, in skills, responsibilities and behaviors. Muriuki (2009) studied Challenges
Facing the Ministry of Finance in The Adoption of Automated Financial System. The
objective of the study was to determine the challenges facing the ministry of finance in
managing change from legacy accounting systems to IFMIS. The study concluded that the
major challenge was resistance to change brought about by fear of the unknown, not enough
training, fear of redundancy and the fact that IFMIS ensured transparency leading to detection
of fraud thus challenging the existing corrupt systems.

Change Management Initiatives Effective change management is critical for implementation

of technology and business process reengineering Schuppan (2009). Without appropriate
change management processes, enterprises may not be able to adapt to the new systems and
to capitalize on performance gains. Many ERP implementation failures have been caused by
the lack of focus on "the soft issues" such as the business process and change management
Saurin (2013) estimated that half of ERP projects failed to achieve the expected benefits due
to companies significantly underestimating the effort involved in change management.

12
Acknowledging the need for a change is very important as the stronger the need for change,
the more likely top management and stakeholders will support the ERP implementation
Falkowski (1998). Early user involvement in the design and implementation of new business
processes as well as extensive top-down and cross-functional communication may generate
enthusiasm for ERP (Murjuki 2009), advocated that establishing a support organization such
as help desk, online user manual, etc. is also critical to meet users' needs and manage
organizational change. Saurin,etal&Henriqson(2013) pointed out that the tools of
management are leadership, communication, training, planning, and incentive systems. They
argued that these tools can be leveraged and are able to remove great obstacles with minimal
effort when applied properly.

2.3.2 Resistance to Change and Project Success

In today's business environment, change has become an everyday part of organizational
dynamics and any resistance from employee can cripple an organization. In order to have a
better understanding of the term organizational resistance, it is important to look at the
definition first. Diamond &khemani (2006) defined resistance to change as: "Behavior, which
is intended to protect an individual from the effects of real or imagined change". Another
researcher Folger and Chene(2009) defined resistance as: "Employee behavior that seeks to
challenge, disrupt or invert prevailing assumptions, discourses and power relations". Leedy
(2005) proclaimed that "The old bugaboo, resistance to change, is alive and well". Parasurman
and colby (2009) posited that resistance may be viewed from two different angles, such as
attitudinal and behavioral responses to change. Resistance is defined as a phenomenon which
can deter the overall change process, either by delaying or slowing down its beginning,
obstructing or hindering its implementation, and increase its costs. According to Kothari
(2004), employees aren't really resisting the change, but rather they may be resisting the loss
of status, pay, or comfort. Zander (1950) offered six primary reasons for resistance to surface
if:
i. the nature of the change is not made clear to the people who are going to be influenced
by the change,
ii. the change is open to a wide variety of interpretations,
iii. those influenced feel strong forces deterring them from changing,

13
 iv. the people influenced by the change have pressure put on them to make it instead of
having a say in the nature or direction of the change,
v. the change is made on personal grounds, and
vi. the change ignores the already established institutions in the group.

2.3.3 Technological Infrastructure and Project Success

Rodin-Brown (2008) discussed the Best Practices for Designing and Implementing IFMIS and
how to put them into place in Developing and Transitional countries. The study aimed at
identifying the most appropriate strategies with respect to IFMIS project design, management,
monitoring and evaluation around the world. The study concluded that IFMIS systems were
complicated, expensive, difficult to manage and maintain. It was also common to discover
only after procurement of new systems that those systems do not meet the specific conditions
and needs of the project leading to costly delays and unplanned outlays. It further
recommended that the technology chosen by a country should be flexible to adapt to evolving
conditions so that the system can be rolled out to other parts of the government gradually. A
variety of experts should also be called to test; monitor and guide the implementation process
Miheso (2013) examined the Adoption of IFMIS by the National Government in Kenya. The
specific objectives were: to establish the extent of IFMIS adoption by national government;
identify the challenges faced in adoption of IFMIS; and the determinants of its successful
implementation. The study concluded that the implementation of IFMIS is affected by
complex factors among them; top management support, human technical capacity and
training, change management, phased implementation and reliable and modern ICT
infrastructure. The study recommended that the requisite infrastructure be put in place in
outlying areas out of Nairobi to ensure IFMIS is not implemented only in Nairobi but as a
country wide project. It further recommended that ICT equipment and training be increased
to boost employee awareness and that senior Government officials show more support and
commitment to the implementation of IFMIS.
Technological resources have been consistently identified as an important factor for
successful information systems adoption. Technologies have changed and redefined the way
organizations and government corporations operate. Organizations adopt new technologies to
improve the efficiency and effectiveness of various work processes. Unfortunately, many

14
technology-based products and services never reach their full potential, and some are simply
rejected Rodin brown (2009). Failed investments in technology may not only cause financial
losses, but also lead to dissatisfaction among employees Waruinge (2008). Hence, explaining
and predicting user adoption of new technology is important. New technology adoption by
service employees is affected by various factors. Some of them include; technology readiness,
technology integration and interoperability with the existing IT systems and the IT security
applications. Research by Parasuraman and Colby (2009) pointed that technology readiness
(TR) is a key factor in the adoption of innovative products and services. TR refers to the
propensity to adopt and embrace technology in home life or work. It reflects a set of beliefs
about technology and is not an indicator of competence. TR is highly predictive of the speed
of technology adoption and level of usage of technology in consumer households and
organizations. TR is multifaceted, with some factors being contributors and some factors
behind inhibitors. According to Moseet (2013) private and public sector organizations have
been utilizing information technology (IT) systems to streamline and automate their
purchasing and other processes over the past years.

2.3.4. Human Capital Development and Project Success

Miheso (2013) examined Public Financial Management for PRSP Implementation in Malawi:
Formal and Informal PFM Institutions in a Decentralizing System. The study aimed at
examining the implications of decentralizing public financial management system for PRSP
implementation. The study found that one of the major shortcomings undermining sound PFM
in Malawi was lack of adequate human and technical capacity in key PFM positions, combined
with insufficient financial, organizational and human resources management. The study
recommended that the introduction of new PFM tools should always be accompanied by
systematic long term and timely capacity development. This involves establishing
mechanisms to disseminate specific knowledge acquired by individuals to all relevant
stakeholders in order to preserve the gained knowledge and capacity for the institution.
ICPAK(2014), in its baseline survey report on Devolution in Kenya with Respect to Public
Financial Management Systems found that though most counties rated their interaction with
IFMIS as proficient or good, there were some challenges noted. These include system user
challenges due to limited practical training on some of the key modules installed. The study

15
further recommended that regular training of county treasuries should be undertaken to
enhance their technical skills in IFMIS.
In their study of developing countries specifically Ghana, Malawi, Tanzania, Uganda and
Kenya, Diamond and Mwakio(2015) argue that necessary measures should be taken to
reinforce the capacity in the IFMIS project team as well as the Attorney General’s (AG’s)
office and the budget office through all the project phases. At the same time, they note that it
is equally important to develop the necessary skills and capacity of the central IT department
to provide strong support to the IFMIS. For the success of the IFMIS project it ought to be
ensured that there is continuity of key personnel involved in the system’s development and
implementation. Lack of capacity has been pointed out by Payne (2010) in his study as one of
the most poignant derailments to the effectiveness of an IFMIS.
It is noteworthy that according Kodres (2001), low capacity for system implementation at the
sub-national level such as provincial and regional governments is one of the main challenges
in the implementation of the IFMIS in developing countries. This factor according to him is
very pertinent to the South African context with its nine provinces and the consequent demand
that the duplication of efforts creates for skills and knowledge, of which a shortage already
exists. Kodres (2001), further contend that the personnel development issue within
government needs prioritization, the education system needs to be aligned with the
information and communication technologies (ICT) demands of the country and scarce ICT
skills need to be attracted and retained particularly within the government. It is noted that the
effective implementation, operation and maintenance of an IFMIS require personnel with the
required knowledge and expertise.
Diamond and Khemani (2006) posit that lack of capacity is regarded as one of the primary
causes for the delay in IFMIS implementation process in Ghana. On the other hand, the
emphasis on capacity building through training was one of the major contributing factors to
the success of IFMIS in Tanzania. Chene (2009) adds that absence of staff with the requisite
information technology (IT) knowhow and experience cannot be mitigated with ease through
training and hiring. The salary structure and terms of employment in the public sector are
more often than not unable to compete at par with the private sector. Needless to say,
candidates possessing it skills are not incentivized to join the public sector. To aggravate the
situation, many trained personnel leave the public service for better job opportunities

16
elsewhere. For IFMIS project to be successful, in addition to internal resources, great care
should be taken when outsourcing especially in terms of technical assistance during different
phases of the system’s development and implementation. The external consultant should have
extensive experience in the public sector financial management. The consultant should
essentially be an expert in design, implementation, management and operation of government
accounting, budget and financial management systems especially in a developing country’s
environment. He or she must have experience in the management and operation of modern
computerized financial systems in a government budgeting and accounting environment.
Complementary experience in training, management development, human resource
management and organizational change in developing countries ought also to be a
prerequisite. The consultant, finally, should also have experience in project management and
implementation, working in the advisory and training capacity in developing countries. The
scholars caution that the consultants need to be managed closely since they may be inclined
towards pursuing their own interests to the detriment of the institution’s IFMIS objectives
Diamond & Khemani (2006). Murphy (2004) notes that weak human resource management
and management capacity has been responsible for the derailment of IFMIS implementation
in Kenya. Systems improvements (that is, macro model, MTEF, performance budgeting, cash
management, IFMS, payroll/personnel systems) are typically undermined by failure to address
complimentary human resource (manpower planning, recruitment, incentives, training),
organizational restructuring and improved management capacity (delegation, middle
management empowerment, team building). He further posits that IFMIS implementation is
hindered by over-complex change projects requiring high levels of technical and management
capacity.

2.3.5. Top Management Commitment and Project Success

Kimwele (2011) analyzed the Factors Affecting Effective Implementation of IFMIS in
Government Ministries in Kenya. The study aimed at determining the effectiveness of IFMIS
implementation in the Kenyan government ministries and the factors that influenced the
successful implementation of IFMIS. The study concluded that the laxity of top management
to support the use of the IFMIS system had affected its effective use by government
employees. They failed to inspire and had little understanding of the use of IFMIS, further the
study recommended that this problem could be addressed by providing more training to top

17
management and other users of the system. Mwakio (2015) investigated the Challenges
Facing County Governments in the Implementation of IFMIS in Taita Taveta County. The
study aimed at finding out why there was still poor management of devolved funds to the
counties despite the use of IFMIS at the counties. The study concluded that previous training
on IFMIS had not involved senior county officers who were often too busy attending to other
matters and thereby sending their junior staff for the training instead. The study recommended
that the national treasury deal more decisively on matters devolution and specifically in the
implementation of IFMIS to avoid letting partisan politics interfere with management of
devolved funds.

2.4 Conceptual Framework

Change Management

Technological Infrastructure
IFMIS Success

Human Capital
Requirement

Top Management
Commitment

Figure 2.1: Conceptual framework for the study

The above conceptual frame work shows that there are four variables which affect IFMIS
project success These Are Change management, Technological Infrastructure, Human Capital
Requirement, Top Management Commitment.

 Change management: Preparation for change to IFMIS, Commitment to use IFMIS.

 Technological Infrastructure: Reliable network connectivity, Modern ICT
equipment.
 Human Capital Requirement: Training of staff on IFMIS, Systematic long term
capacity building plans.

18
 Top Management Commitment: Support for use of IFMIS, Allocation of resources
for IFMIS implementation
 IFMIS project success: Cost saving, Time saving, increase satisfaction,

19
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design and Approach

The study has defined objective and focus on identifying factors affect successfulness of
IFMIS. A causal research design is adopted with a quantitative research approach.

3.2 Population and Sampling

According to Diamantopoulos (2004), a population is a group of items that a sample was draw.
A sample, on the other hand, refers to a set of individuals selected from an identified
population with the intent of generalizing the findings to the entire population. A sample is
drawn as a result of constraints that make it difficult to cover the entire research population
Leedy (2005). The population of this research was MOFEC directorate which is using IFMIS
as system of record which means Finance and Procurement directorate, Planning directorate,
Property Admin directorate, Top Management offices, Self Service and IFMIS project office.
In this research, since the targeted population is large the researcher plan to use simple random
sampling design to determine the sample size and to answer the problem statement and
pertaining research objectives. The reason behind using simple random sampling is because
in simple random sampling all individuals will have an equal chance of being selected. To
conduct the research on public body (MOFEC) about the factors affecting the successful
implementation of IFMIS, the researcher will select as a respondent using simple random
sampling from their total population (from users of IFMIS) since all users in all MOFEC
departments are large and unmanageable. Therefore, simple random sampling technique was
used in the study. Since population of each directorates is too large (from IFMIS user
administration data there are 113 IFMIS users), it is impossible to include every individual
because of their convenient accessibility and proximity to the researcher. However, since the
objective of study focus on the factors affecting the implementation of IFMIS in MOFEC, the
sample frame of the targeted population was only the IFMIS users of each directorate which
is 113.After the samples of each directorate who use the system have been determined, the
researcher plan to use the following sample size determination formula to determine the

20
sample size of the population in MOFEC. The formula was developed by Taro Yamane
(1967). It is calculated as follows:

Where n is the sample size,

N is the population size, and
e is the level of precision or sampling error = (0.05)

Hence, the total sample size is 88. Since the number of people in each department is not the
same, the number of samples for each department was calculated by the following formula:

Where n= total number of samples

N= total number of population
N1= total number of population in each bank
n1= number of samples in each bank

Table 3.1 Respondents distribution by functional areas

No Department No of responsibility No of users Sample size

1 Financial user 26 24 19
2 Planning User 25 21 16
3 Property Admin user 6 13 10
4 Procurement user 2 9 7
5 Top management user 8 11 9
6 Self-service user 2 22 17
7 System admin user 19 7 5
8 FMIS project office 15 6 5
Total 103 113 88

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3.3. Data collection Techniques
The study was based on both primary and secondary data. The primary data was gathered
through a structured self-administered questionnaire. The structured questionnaires were
developed using the 5 – point Likert Scale due to the fact that each variable or topic comprises
serious of questions which fit with the mere purpose of using rating scale. It allows
respondents to express both the direction and strength of their opinions about a given topic,
(Catherine,2000). According to Kothari (2004), the use of questionnaire method ensures low
cost even when the universe is large, respondents have adequate time to give well thought out
answers and ensured privacy of the respondents and therefore recorded a high rate of response.
The questionnaire used to collect data is shown as Appendix 1. The secondary data for this
research purpose was obtained from IFMIS implementation review reports by the World
Bank, IMF and the government IFMIS project implementation strategies published, the IFMIS
project office reports available for the year 2013-2016 and other IFMIS project related data.

3.4 Procedures of Data Collection

The questionnaires have been distributed to the employees based on the sample size from each
population group. The questionnaire contains three parts; part one is deals with the personal
profile of each respondents, part two was about the factors that affect successful
implementation of IFMIS, presented by means of a 5 -point Likert Scale, the remaining parts
three presented one open ended question regarding the topic. The secondary data were
collected from organization reports such as project assessment report and MOFEC strategic
document and literature review was sourced from libraries, internet and journals.

3.5 Data Analysis Technique

The data collected were analyzed using regression method to find out the causal relationship
between the dependent and independent variables. To analyze the raw data the researcher used
SPSS 20.0 version which is specialized statistics program that can perform complex data and
provide sufficient tools for analyzing the collected data with simple instructions. Therefore,
the primary data from the questionnaires and secondary data from review of different
documents were also analyzed using simple descriptive statistics such as mean and
frequencies. Regression analysis was used to depict the most important factors. It is

22
considered one of the most valuable methods of establishing a conditioning between various
phenomena due to its high level of generality and applicability Albright (2006). This enabled
the researcher to make the analysis and to see the factors affecting the implementation of
IFMIS in Ethiopia public sectors.

3.6 Validity and Reliability

Reliability and validity address issues about the quality of the data and appropriation of the
methods used in carrying out the research.

3.6.1 Validity
Validity refers to the extent to which an instrument measures what is supposed to measure.
Data need not only to be reliable but also true and accurate. If a measurement is valid, it is
also reliable, Joppe (2000). The content of validity of the data collection instrument was
determined through discussing the research instrument with the researcher experts in the field
of study especially the researcher’s adviser. The valuable comments, corrections, suggestions
given by the research experts assisted the validation of the instrument.

3.6.2 Reliability
Reliability refers to the consistence, stability, or dependability of the data. A reliable
measurement is one that if repeated a second time gives the same results as it did the first time.
If the results are different, then the measurement is unreliable (Mugenda & Mugenda 2008).
To measure the reliability of the data collection instruments, an internal consistency technique
using Cronbach's alpha was used Mugenda(2008). Cronbach's alpha is a coefficient of
reliability that gives an unbiased estimate of data generalization Zinbarg (2005). An alpha
coefficient of 0.75 or higher indicated that the gathered data are reliable as they have a
relatively high internal consistency and can be generalized to reflect opinions of all
respondents in the target population (Zinbarg, 2005). As shown in table 3.1 the overall
Cronbach’s alphas coefficients for expected scale item are86.6% Therefore, the expected
scales used in this study demonstrate high reliability. The following Table shows the SPSS
result on the Cronbach Alpha.

23
3.7 Research Ethics

Ethics as applied to research generally refer to considerations to protect and respect the rights
of participants and other parties associated with the activity (Reynolds, 1982). Similarly,
special attention will be given for ethical issues of this research starting from problem
identification up to interpretation stage using the ethical guide lines specified by Cresswell
(2003 pp.93-97). Respondents will be informed also clearly about the purpose of the study,
the right to participate voluntarily, the right to ask questions including personal address of the
researcher, the right to get the copy of the study, and the right to have their privacy respected;
the right not to respond to question that they didn’t want to respond too. On top of these, every
necessary care will be taken not to put participants at risk of social, psychological, physical
and economic harm.

24
 CHAPTER FOUR
RESULTS AND DISCUSSION

4.1 Introduction
As indicated in the preceding chapters, this research study attempted to examine the factors
affecting the implementation of IFMIS in Ethiopia public sectors with special focus on
Ministry of Finance and Economic Cooperation (MOFEC). This chapter presents the main
issues of the actual findings which are based on the primary data collected using questionnaire
results and secondary data collected from various sources such as MOFEC IBEX/IFMIS
project office reports, Top management reports, and many others administrative records.
Questionnaires were distributed to 88 respondents out of 113 IFMIS users purposely sampled
from MOFEC directorates, and 72 questionnaires were returned, representing 82 percent
response rate. This is a reliable response rate for data analysis as Mugenda and
Mugenda(2003) pointed that for generalization a response rate of 50% is adequate for analysis
and reporting, 60% is good and response rate of 70a % and over is excellent.

The high response rate of 82 % facilitated gathering sufficient data that could be generalized
to factors Affecting successfulness of IFMIS project implementation at MOFEC. This means
that the response rate for this study was excellent and therefore enough for data analysis and
interpretation. This reasonable response rate was made a reality after the researcher made
personal calls and visits to remind the respondent to fill-in and return the questionnaires.

However, 18% of the respondents were reluctant to fill out the questionnaire. This was partly
due to reasons such as the respondents being unavailable to fill the questionnaires at the
required time despite persistent follow-ups. However, the response rate demonstrates
enthusiasm of the respondents to partake in the survey that the study sought. The analysis
involved the responses of the stated 72 respondents’ response with supplements of secondary
data to interpret and elaborate more to explore the determinants of IFMIS Implementations.
This response rate is presented on table 4.1 below.

25
Table.4.1: Response Rate

Response Frequency Percentage (%)

Distributed Questionnaires 88 100%
Filled in questionnaires 72 82%
Un returned questionnaires 16 18%

Reliability of the questionnaire was evaluated through administration of the said instrument
to the pilot group. A construct composite reliability co-efficient (Cronbach alpha) of 0.6 or
above, for all the constructs, was considered adequate for this study. The acceptable reliability
coefficient is 0.6 and above (Rousson, Gasser and Seifer, 2002). Cronbach Alpha was used to
test the reliability of the research instrument.

Based on the nature of the questions, the questionnaires were categorized into five groups
which are, Top management commitment factors, technology and infrastructural factors,
Change management factors, Human capital factors and Successful implementation of IFMIS.
PATRICIA (2015) was identified top management commitment and information technology
infrastructure as the main factors affecting electronic financial management system in national
government offices.

4.2 Background Information

The study sought to establish the demographic information in order to determine whether it
had influence on the study in MOFEC. The demographic information of the respondents
included levels of education, position held, number of years worked in the organization. This
information is necessary because the respondents’ competence of answering the questions
ably dependent on their level of education, position held and also the period in which they
have worked in the organization.

4.2.1 Demographic Characteristics of Respondents

Demographic information provides data regarding research participants and is necessary for
the determination of whether the individuals in a particular study are a representative sample
of the target population and testing appropriateness of the respondent in answering the
questions for generalization purposes. As discussed in the above sections, the sample

26
respondents of this research from Directorates of MOFEC which are the users of IFMIS such
as Finance and Procurement directorate: IBEX/IFMIS project office, self-service Users from
some directorates, Top management, Treasury directorate, national account directorate,
budget directorate, and general service directorate (Inventory and Fixed Asset administration
users) get the research questions and filled their personal profile as required.

The description of the characteristics of the target population, therefore, gives some basic
information about the sample population involved in the study. From the data collected and
tabulated, the following significant characteristics of respondents have been obtained. The
following subsections elaborate demographic information of respondent’s gender, age, level
of education and work experience.

1. Sex of the Respondents

The study sought to determine the gender composition of the respondents. From the findings,
it was established that majority of the respondents 73.1% were male whereas 26% of the
respondent were female, this is an indication that both genders were well represented in this
study and thus the finding of the study did not suffer from gender bias all through the study.
This implies there were more male than female respondents though with less disparity
meaning that there is gender balance among the employees involved in the implementation of
the projects. Carter and Shaw (2007) found that organizations with gender balance were
motivated to perform better towards organization goal as women and men compete favorably
to deliver on their assignments.

2. Age Distribution of the Respondents

The study requested the respondents to indicate their age category. The results were as shown
in Table 4.1.From the research findings, the study revealed that most of the respondents 6
(3%) were aged below 25 years, 29(55.7%) of the respondents were aged between 25 to 35
years, 32(32.9%) were aged between 35 to 50 years, and 5(7.6%) were above 50 years. This
implies that respondents were well distributed in terms of their age during the study. This also
implies that majority of the respondents were at their maturity stage and therefore able to
handle their roles responsibly. The findings support the move by the organizations giving
emphasis on maturity and experience during the implementation of various projects.

27
Table 4.2: Age Distribution of Respondents

Age Group Frequency Percentage

>25 6 3%
26-40 29 47.7%
41-55 32 32.9%
<55 5 7.6%
Total 72 100%
Source: Survey data (2018)

3. Educational Level of Respondents

The study sought to establish the educational background of the respondents and the findings
were as shown in Table 4.2.From the study findings, most of the respondents as shown by
10.1% indicated that they held diploma certificates, 60.8% of the respondents had degree
certificates and 29.1% indicated to have reached above degree level. This implies that most
of respondents were well educated and that they were in a position to respond to research
questions with ease. Hazernberg(2012) associated the education level of project managers
with findings that, those with higher levels of education are more successful because higher
education provides them knowledge and modern managerial skills, making them more
conscious of the reality of the organization management world and thus in a position to use
their learning capabilities to enhance project implementation and delivery. The findings
therefore indicate that the respondents have the capacity, skills and management acumen to
facilitate performance of IFMIS in the organization. These skills may help them handle and
interpret their respective services and the emerging issues on implementation and
effectiveness of the IFMIS to the best level possible.

28
Table 4.3: Respondents Educational Level
Education level Frequency Percent
Diploma 7 10.1
Degree 45 60.8
Above Degree 20 29.1
Total 72 100.0
Source: Survey data (2018)

4. Experience in their Organization and in using IFMIS

Table 4.4: Respondent Service Year and Experience in using IFMIS

Frequenc Valid Cumulative Freque Perce Valid Cumulativ

Percent
y Percent Percent ncy nt Percent e Percent
0 0 0 0 0 5 6.3 6.3 6.3
< 2 Years 9 11.4 11.4 11.4 17 21.5 21.5 27.8
3-5 years 11 13.9 13.9 25.3 20 27.8 27.8 55.7
Valid
6-10 years 34 51.9 51.9 77.2 30 44.3 44.3 100
>10 years 18 22.8 22.8 100 0 0 0 100
Total 72 100 100 72 100 100

As indicated in the above table with respect to the level of experience, 11.4% of the
respondents have below 2 years of experience, 13.9 % of the respondents were experienced 3
to 5 years and 51.9 % 6 to 10 years and 22.8 % experienced greater than 10 years. However,
all the respondents have no experience in using IFMIS. Only 93.67% of the respondents have
an experience of using IFMIS. Which is 21.5% of the respondents have below 2 years of
experience, 27.8 % of the respondents were experienced 3 to 5 years and 44.3 % of the
respondents were experienced 6 to 10, whereas from the total sample only 6.33% have no
experience in using IFMIS. But the researcher includes them in the sample population since
they are at management position who participated in IFMIS implementation decisions. This
indicate that more than 93.67 % of the respondents have long years of experience in using
IFMIS and participating in its implementations and they have capacity to perform their duty
in well experienced way. Work experience is an important part of becoming ‘workplace-ready

29
and to differentiate the determinant factors of their work more than third party. A survey
conducted by Scribner in 1998 found that that building useful skills that cannot be taught in
the classroom as well as contacts that students otherwise would not be exposed to and
prospective employer will always look favorably on the effort taken by those who have done
work experience, which empowers new talent and gives them an edge to push for the most
sought after graduate positions in the field.” Therefore, the sampled respondents of this
research experienced in technological skills, found their work-based experiences to not only
be rich in opportunities to practice, but also increased skills in problem-solving, critical
thinking, and teamwork skills. That is why the researcher focuses on those who use IFMIS to
get relevant data for this research.

4.3 Factors Affecting successfulness of IFMIS

The researcher sought to identify Factors Affecting successfulness of IFMIS project
implementation at MOFEC. To achieve this objectives respondent were asked using a Likert
scale where 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4= Agree and 5= strongly agree.

4.4IFMIS Success Measuring Factors

There were ten questionnaires designed to determine the IFMIS success measures. The
researcher designed this question by identifying three major project success factors these are
in terms of Cost, Time and customer satisfaction. The following table describes the result of
the response along with interpretation of the findings.

30
Table 4.5: Success Measuring Factors IFMIS

Frequency and Percentage

Std.
VARIABLES 5 4 3 2 1 Mean Deviation

IFMIS promotes 20 40 8 4
transparency in budget - 4.06 0.785
(27.8%) (55.6%) (11.1%) (5.6%)
execution of GFS.
IFMIS prevent fraud and 20 42 10
promote good governance - - 4.14 0.635
(27.8%) (58.3%) (13.9%)
IFMIS promote 20 50 2
accountability for users - - 4.25 0.496
(27.8%) (69.4%) (2.8%)
IFMIS reduces bureaucracy 18 44 8 2
in our financial process. - 4.08 0.687
(25%) (61.1%) (11.1%) (2.8%)
The system offer timely 22 44 6
information to support - - 4.22 0.587
(30.6%) (61.1%) (8.3%)
Decision making
The system provide 22 48 2
accurate information. - - 4.28 0.510
(30.6%) (66.7%) (2.8%)
IFMIS improve service 22 44 6
delivery to the customer. - - 4.22 0.857
(30.6%) (61.1%) (8.3%)
IFMIS has reduced 22 28 6 16
operating cost by reducing - 3.78 1.116
(30.6%) (38.9%) (8.3%) (22.3%)
administrative cost.
IFMIS has reduced civil 18 22 14 18
servant work load - 3.56 1.124
(25%) (30.6%) (19.4%) (25%)
IFMIS enhances the quality 24 44 4
of service - - 4.28 0.562
(33.6%) (61.1%) (5.6%)
The system allows to
perform the tasks with few 10 26 18 18
- 3.39 1.015
stuffs compare to the pre (13.9%) (36.1%) (25%) (25%)
implementation.
I found the system time 24 42 6
saver - - 4.25 0.599
(33.6%) (58.3%) (8.3%)
I can easily generate report
with the given period of 28 42 2
- - 4.33 0.628
time (38.9%) (58.3%) (2.8%)

Agregate Mean and SD

4.06 .738

31
Respondents from MOFEC department requested to rate the transparency level of IFMIS and
almost all users agreed and strongly agreed (83%) that the system is really transparent. And
only (5.6%) disagree that IFMIS is transparent, the rest 11%respond that they are neutral.
Dorotinsky (2003) argues that public financial management can be improved in many ways
by the use of IFMIS, but officially the system ensures credibility and confidence of the budget
through the transparent and comprehensive financial data. The other question raised to know
whether the system was preventing fraud and promote good governance here also majority of
the respondents (83.4%) agreed and strongly agreed that This system can safeguard
government asset 5.6 of respondents disagree and 11%were neutral. the finding implies that
IFMIS system is capable to prevent corruption and fraud of government asset in addition to
what has been raised the respondent asked whether IFMIS promote accountability for the user.
Here also most of the respondent agreed and strongly agreed (69.4%,27.8) that the system
promote accountable for users but only 2.8%individuals disagree on this issue. With similar
fashion, the researcher has raised a question whether IFMIS reduce bureaucracy in
Government finance table above shows that (61%,25%) agree and strongly agree while
11.1%nuetral and rest 2.8 Disagree to have more on success factors the researcher asked
whether IFMIS offer timely information to support decision making 92% of the respondent
agreed that the system is well timed on providing information as needed but here there are 8%
respondents who respond that they are neutral.
The researcher is also interested to ask another question whether the system provide accurate
information and 100%respondent replied that the system provide accurate output.
Respondents were asked whether IFMIS improve service delivery to customers here also
cumulative of 91.7% agreed and strongly agreed and 8.3% respond like they are neutral. The
other questions raised was whether IFMIS has reduced operating cost by reducing
administrative cost about 22.2% disagree and 38.9% agree and 30.6% strongly agree that it
reduced operating cost. The rest 8.3% was neutral. Finally, the researcher asked question that
IFMIS reduced civil servant work load here an equal amount of respondent 25%,25% disagree
and strongly agree and 30.6% respondents Agree that IFMIS reduced civil servant work load
and the remaining respondent which is 19.4% are neutral. The above finding implies IFMIS
project is efficient system in terms of time, accuracy, transparency and cost

32
The questionnaires, depending on relevance, were categorized into four major groups: change
management factors, Human Capital factors, Technical and Infrastructural Factors and Top
Management Factors. Each questionnaire are presented and analyzed under the specified
groups, as described as in the following sections.

4.3.1 Effect of Change Management on IFMIS project Success

There were seven questionnaires designed to determine the effect of change management on
the successfulness of IFMIS project. The following table describes the result of the response
along with interpretation of the findings.

33
 Table 4.6: Effect of Change Management Factors on the Success of IFMIS

Frequency and Percentage

Std.
N Mea Deviatio
o. VARIABLES 5 4 3 2 1 n n

There is a clear vision

18 40 10 4
and procedure to manage 3.94 0.948
(25%) (55.6%) (13.9%) - (5.6)
1 changes in the system.
I am well aware of the
purpose of changes 24 32 2 14
- 1.92 0.57
within IFMIS project. (2.8%) (19.4%) (33.3%) (44.4%)
2
Progress and
achievement of changes
12 22 16 20 2
are measured as part of 1.31 0.134
(27.8%) (2.8%) (22.2%) (16.7%) (30.6%)
project Change
3 management.
There is an organized 0.28 0.967
way Dealing with 4 30 24 10 4
changes. (5.6%) (5.6%) (33.3%) (13.9%) (41.7%)
4
There is resistance of
users to change legacy 40 28 2 2
- 0.47 0.691
(55.6%) (38.9%) (2.8%) (2.8%)
5 system in to IFMIS

I found that Change

management team is as
informed, passionate, and 12 22 20 18
- 2.39 0.042
engaged change team in (27.7%) (25.6%) (16.7%) (30%)
6 IFMIS project.

I recognize that the

change management
team made frequent visit 4 20 16 32
- 2.94 0.977
to the site to manage the (5.6%) (27.8%) (22.2%) (44.4%)
7 change.

Aggregate mean and

standard Deviation 1.89 .483

34
Source: Analysis of Survey data (2018)

This section sought to assess how factors of change management were handled when MOFEC
was implemented IFMIS in the countries. From the table above majorities of respondent
55.6% and 25% are agreed and strongly agree respectively that there were clear vision and
procedure to manage changes in the system. the rest 5.6% disagree up on the clear vision and
mission. same respondents also feel the questionnaire as neutral 13%. This shows that there
is clear vision and procedure to manage changes in IFMIS system. According to Dorotinsky
and Matsuda (2001) change management techniques such as how the project is planned and
implemented and end-user involvement in design and the findings of this study indicate that
there are no regular consultative forums held for all stakeholders involved in the IFMIS
implementation process. On the awareness of change within IFMIS project most of them
disagree (44.4%) and about 33.3% are neutral and about 19.4% and 2.8% respondent agree
and strongly agree respectively so this shows that there is less awareness on purpose of change
within IFMIS project. on measurement of progress and achievement of changes as part of
project management about 30.6%,16.7% strongly disagree and disagree respectively, 2.8%
and 27.8% agree that progress and achievement of changes are measured as part of project
change management and the other are neither Agree nor disagree 22%. This implies that
progress and achievement of changes are not measured as part of project change management.
On the organized way of dealing with changes most respondent (41.7%,13.9%) strongly
disagree and disagree respectively that there is organized way of dealing with changes, equal
amount of respondent 5.6%,5.6% agree, strongly agree and most of peoples are neutral
(33.3%). this shows that there is no organized way dealing with changes. almost all
respondents agree and strongly agree(38.9%,55.6%) that there is resistance of users to change
legacy system in to IFMIS. 25%,27.8% agree ,strongly agree respectively that change
management team are informed, passionate and engaged team in IFMIS project and 30.6%
disagree,16.7% are neutral on change management team commitment .this implies that almost
an equal amount of respondents agreed and disagreed that change management team is
committed in IFMIS project. On frequent visit of change management team to site to manage
changes most of the respondent disagree (44.4) that there is frequent visit 27%.5,4% agreed
change management team visit the site frequently and 22.2% of respondents answered that it

35
is neither agree nor disagree. This implies that change management team of IFMIS project has
less frequently visit site in order to manage the changes. The mean value has been calculated
as 1.89 this shows that respondents disagree that change management has been properly done.

4.3.2 Human Capital factors for IFMIS implementation

This section sought to determine what effect human capital development factors had on the
effectiveness of the IFMIS implementation process. The findings are presented in table 4.5
below:

36
 Table 4.7: The Effect of Human Capital Factors on the Success of IFMIS

Frequency and Percentage

Std.
No. VARIABLES 5 4 3 2 1 Mean Deviation

I received enough training

16 46 2 6 2
before I start using IFMIS 0.94 0.977
(2.8%) (8.3%) (2.8%) (63.9) (22.2%)
1 system.
I performed my tasks using
system immediately after 14 18 28 12
- 1.25 0.172
training. (19.4%) (25%) (38.9%) (16.7%)
2
I am satisfied with my current
14 40 14 2
3 job 2 0.86 0.21
(2.8%) (2.8%) (19.4%) (19.4%)
(55.6%)
The pay i receive is competitive
compared to that of employees 10 12 14 32 4
doing similar work in other 2.89 1.181
(13.9%) (16.7%) (19.4%) (44.4%) (5.6%)
4 organizations.

IFMIS implementation started

with proper assignment of 6 18 14 32 2
2.92 1.071
5 employees and due consideration (8.3%) (25%) (19.4%) (44.4%) (2.8%)
of capacity
My Organization able to manage 10 18 30 14
6 stuff turnover through different - 2.33 0.949
(13.9%) (25%) (41.7%) (19.4%)
incentive mechanisms.
Leading IFMIS users (supper
users)are benefited from the
project and become part of the
12 24 10 22 4
implementation process 2.25 0.219
(5.6%) (30.6%) (13.9%) (33.3%) (16.7%)
accordingly.
7

I am working based on my 26 30 10 6
8 academic background - 4.06 0.918
(36.1%) (41.7%) (13.9%) (8.3%)

2.1875 0.04
Source: Analysis of Survey data 2018, using SPSS20.

37
Respondents from MOFEC asked that the effect of human capital on IFMIS project success
as shown in above table most respondents disagree and strongly disagree (63.9%,22%)
respectively that there were enough training before they use the IFMIS system. And few
amount of respondent agree and strongly agree that they took enough training before they start
using IFMIS. on immediately using the system after training most individuals disagree,
strongly disagree (38.9%,16.7%that they performed there tasks using system immediately
after training.(25%,19.4)agree that they started using the system immediately after they took
training this implies most employees are not perform their task immediately after they took
training. According to Rodin-Brown (2008), capacity building and training need to be scoped
out during the needs assessment process. Training programs need to address various
audiences, from seniormembers of the bureaucracy down to mid- and entry-level civil
servants. Their satisfaction on the current job (55.6%,19.4% ) disagree and strongly disagree
that they satisfied. only about 5% are agreed that they have satisfaction with their current job
and 19.4% are neither agree nor disagree. from this we can see that most employees had no
satisfaction on their current job. on payment they received compared to that of employees
doing similar work in other organization most of respondents disagree, strongly disagree
(44.4%,5.6%) that the payment is same with other organization and (16.7%,13.9%) agree and
strongly agree,19.4% neither agree nor disagree that the payment they received is rational
compared to that of employees doing similar work in other organization. There is no
redness.most respondents disagree 44.4%, 25% agree and the rest respondents neither agree
nor disagree 19.4%that there is proper assignment of employees when the system start
implementation. This implies that there were not proper assignment of employees when they
start implemented the system .all most all respondents disagreed, strongly disagreed
(41.7%,19.4%) that their organization had able to handle staff turnover using different
incentive mechanism and only 13% individuals agreed that there is a mechanism to avoid staff
turnover in their organization,25% of individuals are neutral. From the above finding we can
conclude that staff turnover is not managed in this organization in order to implement IFMIS
system effectively. On the question leading IFMIS users(supper users) are benefited from the
project 33.3%, 16.7% disagree and strongly disagree, 30%, 5.6% agree and strongly agree,
13.9% neutral that the supper users were advantageous from the project and become part of
the implementation process accordingly. This shows that end users ware not benefited from

38
the project and become part of implementation. on final variable of human capital question
that whether they work based on their academic background all most all respondents agree,
strongly agree (41.7%, 36.1%), 8% disagree and 13.9% answered as neutral. We can conclude
from the above finding that all most all employees are working based on their academic
background. In general The mean and standard deviations2.18,.04 respectively shows that
there is a problem on human capital development on IFMIS implementation.

4.3.3 Technical and Infrastructural Factor for IFMIS Implementation

The questionnaires described under this section entail the factors related to technical and
infrastructural factors. the following table shows effect of technical and infrastructural
effect.

39
 Table 4.8: Effect of Technical and Infrastructural Factors on the Success of IFMIS

Frequency and Percentage

Std.
No. VARIABLES 5 4 3 2 1 Mean Deviation

I have personal
42 30
computer to use IFMIS - - - 4.58 0.496
(58.3%) (41.7%)
1 application.
There are necessary
42 26 2 2
software - 4.5 0.692
(58.3%) (36.1%) (2.8%) (2.8%)
2
IFMIS system is fast
12 28 6 24 2
enough to perform my 1.33 0.187
(2.8%) (16.7%) (8.3%) (33.3%) (38.9%)
3 day to day task
I can easily get
functional support when 12
6 40 14
I need from assigned (16.7%) - 1.53 0.903
(8.3%) (19.4%) (55.6%)
4 support team.

IT department is
providing support
immediately when 6 28 24 14
2.22 0.710
technical problem (8.3%) (38.9%) (33.3%) (19.4%)
5 happens.

There is no system
disconnection while i 6 10 44 12
- 2.14 0.393
6 use IFMIS application. (8.3%) (13.9%) (61.1%) (16.9%)

Power interaption not

8 42 14
7 affects my regular work 2.8% 8.3% 0.83 .534
11.1% 58.3% 19.4%

8 System user friendly 11.1% 33.3% 22.2% 33% 3.22 1.038

Aggregate 2.54 .61
Source: Analysis of Survey data (2018)

Here the researcher wants to know to how extent technical and infrastructural factors affect
successfulness of IFMIS. In the above table on question which asks that whether they have
personal computer or laptop which they can do their day to day job all 100% of the respondents
answered that they have computer to use IFMIS application. software’s necessary to use
system like JRE, browser, PDF etc installed on their computer most employees agreed,

40
strongly agreed (36.1%,58.3%) that they can access IFMIS application by using all that
installed software but 5% of employees disagree that there is no installed such application on
their system. The above result shows as the users have their own personal computers and
laptop with all needed application which they can access the application. Majority of
respondents disagree and strongly disagree (33.3%,38.9%)that the system is fast. other 16.7%,
2.8% agree and strongly agree, 8.3% . are neutral that the system is fast enough to perform
their day to day task this shows that the system is not enough fast to perform their day to day
task. The other variable is that the user can get support easily from assigned support team from
the respondent on the above table majority respondent 55.6% Disagreed,19.4%agreed 8.3%
strongly agree, 16.7% are neutral, this implies that there is no adequate and enough support
for users when there is an issue. On technical support from IT department immediately, the
respondent disagreed and strongly disagreed (33.3%, 19.4) and 38.9% agree, 8.3%neutral that
there immediate support from IT department. From the above finding we can conclude that
there is no enough and adequate technical support as needed. from the table above we can
notice that 61.1%, 16.7% respectively disagree and strongly disagree, only 8.3% agree and
the rest 13.9% are neutral that there is no system disconnection while they use IFMIS
application. this shows that there is high rate of system disconnection when they perform their
day to day activities.

The respondents were asked whether there is frequent power interruption affecting their
regular tasks on the IFMIS system. The majority of the respondents, 77.7%, were replied that
they were interrupted by electric power supply. This shows that there is high interruption of
power when the user uses the IFMIS system.A questionnaire was adapted to the respondents
to investigate to what extent the system is user friendly for them. 33.3% of the respondents
were agreed with the fact that the system is user friendly. Comparable number of users, 33.3%,
disagrees with the fact that the system is user friendly. This indicates that there are users who
use the system easily and there are also users which the system is difficult for them. The mean
and standard deviation of the above finding shows that there is shortage on technological and
infrastructural availability in IFMIS project.

41
4.3.4 Top management commitment as success factor
Commitment from the top management was identified test as one of the factors affecting the
success of the implementation of the envisaged system. The questionnaires pertinent to the
subject under consideration are analyzed in this section.

Table 4.9: Effect of Top Management Commitment Factors on the Success of IFMIS

Frequency and Percentage

Std.
N Deviatio
o. VARIABLES 5 4 3 2 1 Mean n

1 Management at all level

4 16 14 32 6
has the awareness of 2.72 1.078
(5.6%) (22.2%) (19.4%) (44.4%) (8.3%)
IFMIS implementation.
2 Top management of my 20 10 40 2
organization promote - 2.67 0.919
(27.8%) (13.9%) (55.6%) (2.8%)
IFMIS for users.
3 Top management of my
organization follows 2 12 10 34
- 2.69 0.922
major issues happened on (2.8%) (16.7%) (13.9%) (47.2%)
the system.
4 There is a functional
committee to monitor the 4 20 16 32
- 2.94 0.977
overall Progress of the (5.6%) (27.8%) (22.2%) (44.4%)
system.
5 Top management of My
organization allocate 28
2 34 16 2
required resource to keep (25%) 3.22 0.953
(2.8%) (47.2%) (22.2%) (2.8%)
the functionality of the
system.
6 Directors of my
organization take 2 8 12 46 4
2.42 0.868
leadership role to (2.8%) (11.1%) (16.7%) (63.6%) (5.6%)
implement IFMIS
7 There is Regular review
and evaluation of IFMIS 10 22 40
- - 2.58 0.727
project implementation (13.9%) (30.6%) (55.6%)
by management
Management of my
organization is ready to 4 12 28 26 2
2.86 0.924
8 support the change (5.6%) (16.7%) (38.9%) (36.1%) (2.8%)

Aggregate mean and

standard devation 2.76 .92

42
Source: Analysis of Survey data (2018)

The result shows that top management of MOFEC had little awareness about IFMIS
application. The majority of the respondents either disagree or strongly disagree (55.6% and
2.8% respectively) that top management of the organization promote IFMIS, and only 27.8%
of them agreed to the item about top management efforts to promote and support IFMIS. This
implies that top management was not promoting IFMIS. The respondents were asked whether
the management of MOFEC is following up major issues encountered while running and
utilizing the system. The majority of the respondents, 66.6%, replied that they disagree with
the fact that the management following up the identified major issues, while only 16.7% of
them responded that they agree with the follow up of the said management. Based on the
responses one can conclude that the top management of MOFEC are not well following major
issues that the users are facing. committee plays vital role in large project implementations.
The respondents were asked about the availability of functional committees that overlook the
implementation and execution of IFMIS project. The majority, 44.4%, responded that they
disagree with the fact that there is functional committee, 22.2% of them are neutral on the on
the same question. This implies that the committee who is in charge of monitoring the overall
activities of the project is not functioning very well or not available at all.Resources are very
crucial for the implementation and execution of a complex projects. A questionnaire was
designed to determine whether there is adequate resource allocation to the project. 47.2% of
the respondents replied that they agree with the fact that there is enough resource allocation
for the project, with considerable number of respondents, 25%, was replied neutral. This
shows that somehow management of the organization allocates resource but still there are
respondents which argue that there is no enough allocation of resource for IFMIS project. It
was discussed in the literature that leadership role of the management is decisive in
determining the success of complex project implementations. IFMIS users were requested to
respond whether there is commitment from directors in playing the required leadership role.
The majority, 63.9%, of the respondents are disagree, 5.6%, of them are strongly disagree
with the fact that the directors plays the leadership role on the implementation of the envisaged
project, while only few them, 11.1%, of the respondents have replied that the project obtained
the leadership role of the directors.

43
Project have to be regularly evaluated and appropriate measures should be taken when
deviations from expectations determined. The respondents were asked to know whether there
is regular review and evaluation of IFMIS project implementation by management. The
majority of respondents, 55.6%, disagree with the fact that there is regular review and
evaluation. Only 13.9% of them think that there is review and evaluation of the project.
Considerable number of respondents, 30.6%, is neutral. The response shows that management
has a problem on regular review and evaluation of IFMIS project. Lastly on top management
commitment of the organization for successful implementation of IFMIS the respondents
asked whether the management is ready to change, (36.1%,38.9% ,16.7%) disagree, neutral,
agree respectively. From this we can conclude that top management of the organization are
moderately ready to support change. The above finding shows that the mean and standard
deviation ( 2.76 and 9.2) shows that there no adequate top management support for successful
implementation of IFMIS.

4.5. Regression analysis

A regression describes and evaluates the relationships between a given dependent variable
and one or more independent variables. Earlier research focusing on similar subjects has found
significant results using regression analysis (Musteen2010). One can therefore assume that
regression is an appropriate statistical method in order to confirm or disconfirm the chosen
hypotheses During the regression analysis, important assumptions for a valid regression will
be elaborated and tested in order to ensure that the final regression models are not flawed in
this research context there are four independent variable and one dependent variable, the
researcher take the average from the given variable questionnaires and use SPSS to analyze
the data.

4.5.1 Dependent variable.

This paper had one dependent variable that measured the successfulness of IFMIS project in
MOFEC. The variable was planned to form a construct out of 13 items in the questionnaire where
they had to indicate on a 5-point scale.1.strongly disagree,2.Disagree 3.Neutral 4.Agree 5.Strongly
agree .on how IFMIS implementation is successful (a) the realization of goals and objectives, (b)
Time saving (c) achieved cost savings.

44
 4.5.2 Independent variables
Four independent variables were included in the main model. The first was Change
management, Human capital, Technical and infrastructural, Top management commitment.
There are eight questioners for all variables separately on the questionnaire. where they had
to indicate on a 5-point scale.1.strongly disagree,2.Disagree 3.Neutral 4.Agree 5.Strongly
agree on this independent variable affect IFMIS project success.

4.5.3. Regression Coefficient

Multiple regression analysis was conducted so as to determine the relationship between the
dependent variable and the independent variables. As per the SPSS version 20.0 generated
table 4.2 the equation:

(Y = β0 + β1X1 + β2X2 + β3X3 + β4X4+ ε)

Y=1.190+.312X1+.005X2+.095X3+.537X4+E

The findings presented shows that a unit increase in Change management will lead to a 0.27
increase in the success of IFMIS project at P<0.05.A unit increase of Top management
commitment will lead to 0.04 increase of IFMIS project success at P<0.01. All the other
variables such as human capital development, Technological and infrastructural Factor are
insignificant and don’t affect the success of IFMIS project.

Table 4.10: Regression Coefficients

Coefficientsa
Model Unstandardized Standardized t Sig. 95.0% Confidence Interval
Coefficients Coefficients for B
B Std. Error Beta Lower Bound Upper
Bound
(Constan
1.190 .376 3.166 .002 .440 1.940
t)
Ch.mgt .279 .109 .312 2.548 .013 .060 .497
Hum.cap
1 .004 .091 .005 .043 .965 -.177 .185
.Dev
Tech.Inf .089 .102 .095 .876 .384 -.114 .293
Top
.431 .071 .537 6.082 .000 .289 .572
mgt.com
a. Dependent Variable: IFMIS project success

45
 CHAPTER FIVE

SUMMARY, CONCLUSSION AND RECCOMENDATION

5.1. Introduction
This part of the study tries to summarize and conclude the key findings which arose out of
the study and pass possible and recommendations as remedies to alleviate the existing and
observable potential hurdles.

5.2. Conclusion
In this section the researcher tries to recapitulate the key findings which arose out of the study.
As it has been indicated earlier in the previous chapters, the main objective of this study is
describe the factors affecting the successfulness of implementation of integrated financial
management information system in MOFEC. Due to this the researcher distributed 44
questionnaires related to six focus area to 88 respondents to analyze the factors affecting the
implementations of IFMIS in MOFEC. Thus, from the questionaries’ distributed to
respondents, the researcher collects only 72 respondent’s response and analyzed with
descriptive statics using SPSS version 20. Therefore, on the basis of data obtained from the
respondents through questionnaires as well as different documents and reports of
IBEX/IFMIS project office, interpretation an analysis of data made were summarized below.
The finding of the above analysis shows that
 Change management is not done properly before the implementation and on
implementation of IFMIS at MOFEC, which means there were no clear vision and
procedure to manage changes, the users do not have enough awareness of change
management and what to change. There is also lack of passionate, informed and
engaged change team in project office.
 On human capital development the respondents replied that there is a shortage of
enough, regular training as needed and even after they trained they couldn’t operate
on the system immediately this makes them to forget what they learn. It is becoming
big challenges for them that there is high turnover in their organization this makes

46
 them not to perform their tasks and generate required report on time using IFMIS
system due to high work load.
 The finding shows there are available technology and infrastructure in MOFEC but
there is system inconsistency due to telecommunication network issue. And also there
is Power interruption this affect their day to day tasks. The finding implies that there
is no adequate support from technical team when there is system disconnection in
their organization.
 management is not actively involved and supportive of the implementation process
and not assists & encourages employee in IFMIS adoption even if there is moderate
resource allocation still the project needs much resource in order to implement the
system fully. In addition to this top management is not proactive to solve any
challenges the employees face an issue. That is why every employee of the
organization is not happy and resist the change. According to Rodin-Brown (2008),
the best way to overcome resistance is to sell the changes, relying on credible national
resources to deliver the message. The selling can be done through a variety of media:
workshops, seminars, training sessions, a website, conferences, or newsletters.
 It is understandable from this research that there is high resistance not to adapt this
IFMIS system this can be most employees fear that they may lose their job due to the
implementation on this new system

5.3. Recommendation
In this section the researcher put recommendation standing from the study finding and the
researcher conclusion. So the study recommended that:
 It is important to know that change management is basic task for every project to
deliver successfully so that MOFEC should enhance ways of dealing with change,
capacity to make changes and it should work hard to communicate changes for top
management, stakeholders, and End users of the system through promotion, different
awareness creation mechanism. There should also be strong and committed change
team.
 There should be clear and achievable goal, MOFEC should update project strategic
plan to minimize resistance and stuff turn over through different incentive mechanism.
Moreover, it should conduct capacity building exercises to ensure that system users
47
 and key personnel involved in IFMIS are equipped with the necessary skills and
knowledge in order to implement IFMIS fully.
 The above finding shows that the main factors in IFMIS implementation is
technological and infrastructural challenge so that MOFEC should overlook the
infrastructural and network connectivity issue by continuous fallow up with
stakeholders like Ethiopian telecommunication, Ethiopian Electric corporation.
 There should be Strong political commitment and leadership at the ministerial or
directorial level is vital to push IFMIS implementation forward. Top management of
the organization must know the benefit of IFMIS and promote the system to their end
user in order to find accurate data for their decision making purpose.

48
 References
1. USAID (2012). Practical Guide. http://pdf.usaid.gov/pdf_docs/PNADK595.pdf).York:
Rutledge, pp. 22-48.
2. International Monetary Fund. (October 1993), World Economic Outlook. Washington,
DC.
3. Kinyua J.K (2003).kenya Economic survey.Ministry of fiancé and economic of Nairobi
4. DFID (1993). Making it work. Implementing effective financial information system in
bureaucracies in developing countries. Discussion paper No 447, HHD, pI-26.
5. Rodin-Brown, E., (2008), Integrated Financial Management Information Systems: A
practical guide, Fiscal Reform and Economic Governance Task Order, GEG-1-00-
04-00001-00 Task Order No.8; USAID viewed 06 April 2011, from
http://pdf.usaid.gov/pdf_docs/ PNADK595.pdf
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 ST. MARY’S UNIVERSITY

SCHOOL OF GRADUATE STUDIES

MASTERS OF PROJECT MANAGEMENT PROGRAMQUESTIONNAIRE

TO BE FILLED BY THE RESPONDENTS
Dear Respondents,
This questionnaire is designed to study Factors Affecting successfulness of IFMIS project
implementation at MOFEC for the partial fulfillment of the requirements of Masters of
project Management. Knowing that the data obtained will be used for academic purpose you
are kindly requested to reflect your genuine opinion. I want to assure you that your responses
are kept confidential and the output is generated in aggregate terms, where anonymity of
respondents is maintained. For this purpose, there is no need to write your names or put any
identifying remarks in the questionnaire.

Thank you in advance for your understanding and cooperation!

Addis Wasihum

Cell phone- +251920338676

Email address- [email protected]

PARTI: GENERAL QUESTIONS

Put tick mark () in the box in front of the choice that suits you.

Section A: GENERAL INFORMATION

1. Sex :male Female

2. Age: 20-30 31-40 41-50 Above50
3. Education status: Diploma BA/BCS MA/MCS PHD
4. Years of experience in public organization

Less than 2 years 3-10 11-15 16 and above

53
 5. 5 Department: Finance property administration procurement

Human Resource IFMIS Project office

6. How frequently do you use IFMIS as part of your work?

Daily Weekly Monthly Quarterly Annually

PART II: QUESTIONS RELATED TO INTEGRATED FINANCIAL

MANAGEMENT INFORMATION SYSTEM (IFMIS)

Section A: Effect of Change Management on IFMIS project Success

Please indicate your level of agreement with the following statements so that your answers to
these questions enable the researcher to assess the Effect of Change Management Factors on
the Success of Integrated Financial Management Information System (IFMIS).

Frequency and Percentage

Std.
Mea Deviatio
No. VARIABLES 5 4 3 2 1 n n

There is a clear vision and

procedure to manage
1 changes in the system.
I am well aware of the
purpose of changes within
IFMIS project.
2
Progress and achievement
of changes are measured
as part of project Change
3 management.
There is an organized way
Dealing with changes.
4
There is resistance of users
to change legacy system in
5 to IFMIS

54
 I found that Change
management team is as
informed, passionate, and
engaged change team in
6 IFMIS project.

I recognize that the change

management team made
frequent visit to the site to
7 manage the change.

Section B: Human Capital factors for IFMIS implementation

Please indicate your level of agreement with the following statements so that your answers
to these questions enable the researcher to assess The Effect of Human Capital Factors on
the Success of Integrated Financial Management Information System (IFMIS).

S.

Disagree
Strongly

Strongly
disagree
No

neutral
Agree
Agree
8 I received enough training before i start using IFMIS system.

9 I performed my tasks using system immediately after training.

10 I am satisfied with my current job

11 The pay i receive is competitive compared to that of employees

doing similar work in other organizations.

12 IFMIS implementation started with proper assignment of employees

and due consideration of capacity
13 My Organization able to manage stuff turnover through different
incentive mechanisms.
14 Leading IFMIS users (supper users)are benefited from the project
and become part of the implementation process accordingly.

16 I am working based on my academic background

55
Section C: Technical and Infrastructural Factor for IFMIS Implementation.

Please indicate your level of agreement with the following statements so that your answers
to these questions enable the researcher to assess the Effect of Technical and Infrastructural
Factors on the Success of Integrated Financial Management Information System (IFMIS).

S.No

Disagree
Strongly

Strongly
disagree
neutral
Agree

Agree
17 I have personal computer to use IFMIS
application.

18 Thereare necessary software

(JRE,browser,PDF,etc) installed to access IFMIS
on my computer

19 IFMIS system is fast enough to perform my day to

day task

20 I can easily get functional support when I need

from assigned support team.

21 IT department is providing support immediately

when technical problem happens.

22 There is no system disconnection while i use

IFMIS application.

23 The power interruption affects my regular job on

the application

24 The system is user friendly.

56
Section D: Top management commitment as success factor

Please indicate your level of agreement with the following statements so that your answers
to these questions enable the researcher to assess the Effect of Top Management
Commitment Factors on the Success of Integrated Financial Management Information System
(IFMIS).

S.No

Disagree
Strongly

Strongly
disagree
neutral
Agree

Agree
28 Management at all level has the awareness of
IFMIS implementation.

29 Top management of my organization promote

IFMIS for users.
30 Top management of my organization follows
major issues happened on the system.
31 There is a functional committee to monitor the
overall Progress of the system.
32 Top management of My organization allocate
required resource to keep the functionality of
the system.
33 Directors of my organization take leadership
role to implement IFMIS
34 There is Regular review and evaluation of
IFMIS project implementation by
management
35 Management of my organization is ready to
support the change

57
Section E: IFMIS Success Measuring Factors

Please indicate whether you agree or disagree with the following statements by placing
(√)inside the appropriate box

s.No

Strongly

Strongly
disagree
disagree
neutral
Agree
agree
36 IFMIS promotes transparency in budget execution of
GFS.
37 IFMIS prevent fraud and promote good governance

38 IFMIS promote accountability for users

39 IFMIS reduces bureaucracy in our financial process.

40 The system offer timely information to support Decision

making
41 The system provide accurate information.

42 IFMIS improve service delivery to the customer.

43 IFMIS has reduced operating cost by reducing

administrative cost.
44 IFMIS has reduced civil servant work load

45 IFMIS enhances the quality of service

46 The system allows to perform the tasks with few stuffs

compare to the pre implementation.

If you have anything to say concerning the Factors affecting successful IFMIS
implementation
inyourOrganization__________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________

Thank You Very Much for Your Precious time and Kindness

58