Challenges of Strategy Implementation at Jubilee Health Insurance Company, Kenya Limited

Abstract

In today's rapidly evolving business landscape, enterprises across various industries, including the insurance sector, grapple with effectively translating their strategic plans into actionable results. The objective of the study was to establish strategy implementation challenges at Jubilee Health Insurance Limited. The discussion of the challenges faced in executing strategy revolves on three major theories: Institutional Theory, Resource Dependence Theory, and Transaction Cost Theory. In this study, a case study design was utilized where, primary data was collected using an interview guide and analysed using content analysis technique. The strategy implementation process at Jubilee Health Insurance Company was characterized by a customer-centric approach, with a key emphasis on translating strategy into actionable plans and effective communication of products to customers. The adoption of a product innovation strategy, as indicated by the introduction of new insurance products, showcased the company's responsiveness to market demands. Additionally, the intentional investment in a coaching culture through a leadership development program underscored the significance of human capital in the strategy implementation process. The findings suggested that Jubilee Insurance aligns its strategy implementation with fostering employee productivity, commitment, and business performance. Overall, the insights into the strategy implementation process paint a picture of a company strategically adapting to the evolving needs of the market. However, the study unearths several challenges faced by Jubilee Health Insurance Company in the implementation of its strategic initiatives. Resistance to change emerges as a notable hurdle, with employees expressing uncertainty about the outcomes of strategic changes. Resource constraints, particularly high employee turnover, are identified as a significant challenge, potentially hindering the replacement of positions with required expertise. Inadequate leadership support is flagged as a concern, with a perceived lack of focus on the business decision process affecting the company's competitiveness. Additionally, the study established that poor communication within the organization is highlighted as a significant challenge, potentially leading to conflicting ideas and increased attrition rates. Competing priorities present stress, low morale, and confusion among employees. Inefficient organizational structure affects resource allocation and task coordination. Cultural barriers cause constant misunderstandings and an unpleasant workplace atmosphere. Short-term thinking is identified as a challenge leading to unintended consequences, and overambitious goals are noted as potentially fixating the organization on impractical objectives. External factors, such as market changes and regulatory shifts, introduce uncertainties. These findings collectively underscore the multifaceted nature of challenges in strategy implementation and provide a comprehensive understanding of the obstacles faced by Jubilee Insurance in its strategic endeavors. In conclusion, the findings of this study shed light on the complex landscape of strategy implementation at Jubilee Health Insurance Company in Kenya. Despite the company's robust organizational overview and a strategic management process that prioritizes sustainability and responsiveness to market demands, several challenges pose significant hurdles to the effective execution of its strategic initiatives. Based on the identified challenges in the strategy implementation process at Jubilee Health Insurance Company, the study recommends that it is vital to institute comprehensive change management programs that address employee resistance to change. Engaging employees in the strategic planning process, providing clear communication about the reasons behind strategic shifts, and offering training to build necessary skills can contribute to a more adaptive and change-ready organizational culture.