Managing challenges of strategic change at Nairobi Water Company limited

Abstract

It is about ten years since the water act 2002 came into force, bringing about what is considered the most radical overhaul of the water sector in Kenya. It is also eight years since Nairobi Water Company, a creation of the act, was born. The Company has been undergoing strategic change and experiencing various challenges key amongst them being resistance to change, poor business processes, financial constraints, lack of a supportive organizational culture and structure, staff capacity gaps, poor communication, political interference and low customer satisfaction. This study sought to determine the strategies adopted by Nairobi Water Company in managing these challenges as well as the factors that determine the choice of the response strategies that the Company adopts while dealing with these challenges. It established that organizations face many challenges in the process of actualizing their business strategy. These challenges revolve around financial resources, people management, external interference and failure to develop effective business processes and structure to support the strategies. The response strategies adopted to cope with the challenges are guided by the particular challenge experienced. Particular responses tend to work better if they are aligned to a particular strategy. It also established that factors that influence particular response to the challenges experienced either relate to the organization or external environmental variables. Such factors include financial implications, management commitment, and the strategic plan of the business, trade union involvement, customer demands and expectations as well as the general business environment. The results of this study can be used as a lesson to other organizations and quasi government institutions that may be undergoing similar changes and challenges. Other water companies in the country stand to benefit from this study in light of the fact that Nairobi water Company is the biggest in the country and one of the pioneers in implementing the sector reforms. It is also useful for the academicians and other