Strategic planning and efficiency of the banking sector:A case of Kenya commercial bank limited

Abstract

This study was undertaken with the primary purpose of determining if there was any correlation between strategic planning and the level of efficiency of firms in the banking industry. To accomplish this task, data were collected from seven (7) senior staffs (Managers, Directors and Supervisors) of Kenya commercial bank, KECOM House who are involved in strategy formulation and implementation. The study collected qualitative primary data by use of an interview guide. The interview guide contained open ended questions to enable the researcher gather as much data as possible from the respondents. Content analysis was employed in analyzing the data that were collected from the respondents. This involved a careful study of the responses and making inferences on the relationship between strategic planning and efficiency in the banking sector. Three main issues outstanding concerning the findings establishing this relationship are: 1) factors that influence strategic planning in the banking industry, 2) factors that established relationship between strategic plans and level of efficiency in the Banking industry and 3) staff capacity building and achievement of management performance targets. Major factors found are: Actions of Competitor Banks, Benchmarking with the best performers in the industry and activities/process and regulations/laws that impact the strategic planning at KCB and improved efficiency. These activities/process and regulations/laws include: information delivery, technological advancement, new service/product & client taste and government regulations/laws and political environment