Managing rapid corporate growth:A case study of Equity Bank Limited

Abstract

The objectives of this study were to establish the rapid corporate growth management practices of Equity Bank limited and the lessons and experiences they have learnt along the way. A case study design was used. Managing growth is the work of management and how well it is managed determines if the organization will flourish or die. This is because growth is a very big challenge to management since it stretches the capacity of the organization to its limit while at the same time creating internal challenges especially with the employees who are unsettled by the rapid changes taking place around them. Equity Bank Limited has in a few years emerged from bankruptcy and grown from a tiny mortgage provider to a leading commercial bank that controls 52% of the bank accounts in Kenya. It has spread its wings to Uganda and South Sudan and is preparing to enter the Tanzanian and Rwandese market. The study collected data from three very senior Directors who provided very deep insights into the growth management practices of the Bank. It emerged that the bank pursues a Low Cost, high volume business model. This model generates revenues by maximizing on the number of transactions. The Bank has deliberately executed a very ambitious expansion strategy that is well planned, monitored and financed. The study established six critical success factors that form the pillar of the expansion strategy. These include, being market led and customer focused innovation, Information technology, strategic partnerships, corporate governance and capacity building and leadership development. The Bank has learnt that expansion must be matched by capacity both human and financial. The bank is actively investing in alternative delivery channels both to increase its reach and reduce congestion at its branches but struggling to personalize customer service to a rapidly growing customer base. The study was limited by time and resources. Getting an appointment for the interviews was challenging due to the busy schedule of the respondents. There is room for further studies in areas like sustainability of growth at the Bank, similar studies to firms in other sectors, studies on declining firms.