Strategy implementation in Kenya Commercial Bank

Abstract

Strategy implementation is an enigma in many companies. The problem is illustrated by the unsatisfying low success rate (only 10 to 30 percent) of intended strategies (Raps and Kauffman, 2005). The primary objectives are somehow dissipated as the strategy moves into implementation and the initial momentum is lost before the expected benefits are realized. Successful implementation is a challenge that demands patience, stamina and energy from the involved managers. The key to success is an integrative view of the implementation process (Raps and Kauffman, 2005). Given the important role commercial banks play in the economy, it is important that in order for them to survive, the whole process of strategy formulation and implementation need to be successful. Given the importance of the process of strategy implementation this study sought to determine how strategy is implemented in KCB and to identify the factors that influence strategy implementation at KCB. A case study design was selected as it was deemed the best design to fulfill the objectives of the study. In this study, emphasis was given to primary data. The primary data was collected using interview guide. The interviewees were the head of strategy and functional heads in charge of finance, risk management, information technology and operations, human resources, marketing and research division, and public affairs and communication division. Given that those who were interviewed were not so many and the researcher required getting in-depth information on issues surrounding strategy implementation in KCB, interviews were regarded as the best method and the interview guide gave a clear guidance on what questions to ask. Data was analyzed qualitatively using content analysis. Using the 7-S framework, the study found that strategy implementation process at KCB follows the basic requirements for a successful strategy implementation. The staff, strategy, structure, systems, style, skills and the shared values of the bank have been instrumental in enabling the success of strategy implementation process. The study concludes that there are three factors that have greatly influenced strategy implementation process at KCB. These factors are resources (both financial and human resources), management support and the organization structure. The study also recommends that other commercial banks or any other organization for that matter that requires to successfully implement the chosen strategy, needs to consider their resources (financial and human resources), management support, and organization structure. The study also recommends that future studies in this area should replicate the study to other industries to establish whether these results are standard across the industries. A survey study need to be done to establish the factors that influence strategy implementation in commercial banks to determine whether the results found herein still hold.