Strategy implementation at Co-operative Insurance Company Limited, Kenya

Abstract

Strategy implementation is one of the components of strategic management and refers to a set of decisions and actions that result in the formulation and implementation of long term plans designed to achieve organizational objectives. The insurance industry in Kenya, just like the rest of the world, is going through profound changes. The objectives of the study were to determine Strategy Implementation Practices at CIC Insurance Limited Kenya and to establish factors influencing Strategy implementation at CIC Insurance Limited Kenya. The study adopted a cases study research design and an interview guide was used to collect data. Data was analyzed using content analysis. From the study findings it was possible to conclude that some of the strategic management practices adopted by CIC insurance include the use of a top down approach in strategy implementation. It may be concluded that in some cases, CIC uses change agents and consultants to spearhead the strategy implementation. Specifically, a business unit headed by the general manager is charged with the responsibility of ensuring implementation. It may be concluded that in some instances, the balance score card approach is used. In all cases, CIC adopted best practices in employee involvement as everyone was involved in strategy implementation. It was also possible to conclude that the factors influencing strategy implementation at CIC were organizational leadership, culture, organizational resources, staff motivation, external factors, achievement of objectives and teamwork. It is recommended that CIC management needs to adopt best practices in strategic management. This includes Management commitment, Use of change agents, Team appointment and involvement, Training for all levels, developing an implementation plan, establishing a documentation structure and establishing an internal auditing system. For strategy implementation to be successful, CIC and insurance institutions need to align their culture to strategy implementation. Specifically, CIC needs to address the resistance of employees by improving on communication and training them and rewarding them adequately. CIC should therefore ensure that the leadership style is transformational and not transactional. The CIC management needs to enhance staff motivation. The management should a put in place proper compensation and reward structure for strategy implementation. This will ensure that the goals of the employees are aligned to the goals of the organization.