The purpose of this study were identifying challenges of developing the Project PortfoliornManagement approaches and evaluates organizations effort to adopt project portfoliornmanagement approach on IT projects at Bank of Abyssinia. Works of literature were reviewedrnbased on PPM process groups and investigate the practice and challenges of the casernorganization to the way of developing a project portfolio management approach in the realty. Tornattain it; descriptive research design was employed and both primary and secondary were usedrnas data sources. Questionnaire for all staff of IT programs of case organization and an interviewrnfor selected top managers was as a source of primary data; while, document analysis andrnwebsite were secondary data collection instruments. The data that found through thernquestionnaire was analyzed quantitatively using descriptive statistics through SPSS softwarernversion 23; based on the literature review and the data that will attain using interviews and anrnopen-ended questionnaire was analyzed qualitatively. Accordingly; organizations practice onrnproject portfolio management process groupsâ€™ development was found to be satisfactory; evenrnthere are many downsides under each process group. So the study result found that; eachrnprocess groups was not effectively employed and a direct responsible department to sustain bestrnpractice and improve drawback wasnâ€™t existed. The main challenging factor that hinders for thernfull utilization of such approaches according to the research result were: ineffective humanrnresource management practice; problems to adopt new work culture; inadequacy of knowledgernand experience; unproductive project management; lack common understanding and inadequaternshared vision. For tackling such problem the case organization have to be establishing separatedrnresponsible department and improve the skill of existing parties partially responsible for it.rnBesides; developing procedure and criteria for recruitment of team members and buildrnpermanent experienced employees for project works are the recommended solution for suchrnproblems.