Strategies in corporate communications:a case study of Kenya Commercial Bank

Abstract

The study sought to elicit empirical evidence on the role of Corporate Communications Strategies as used by Kenya Commercial Bank (KCB), during its transformation. With this evidence the study wished to show that Corporate Communications Strategies have strong impact, in transforming organizations, which have erstwhile been performing below shareholders expectations. Three groups of respondents were interviewed. These were the ordinary staff members, customers and human resources management staff They were drawn from ten branches of Kenya Commercial Bank in Nairobi. The study confirmed that KCB used multifaceted Corporate Communications Strategies, which contributed to its turnaround as confirmed by the respondents in the study. In doing this, the bank started by transforming both its visual and corporate images through a blitz of advertisement campaigns. Positioning ofKCB staff to the media and development of internal goodwill through staff training followed. These were later enhanced by development of corporate social responsibility policy and sponsorship of activities and events. Refurbishments of its branches across the country, product realignment and customer motivation concluded the transformation. Among the major findings of the study were enhanced customer satisfaction, which was realised through the bank's new products and services. Other fundamental findings were that the bank's customer base had increased by eight percent, resulting to profitability, which gave the bank its strongest balance sheet in ten years. Consequent upon the transformation, its shares increased in value at Nairobi Stock Exchange, while its Rights Issue were snapped and oversubscribed. Some of the study's recommendations include the need for organizations to recognize and make use of multifaceted Corporate Communications Strategies whenever they are embarking on transformation or in times of crisis. These strategies should target both internal and external publics of the organization, as this will ensure an all inclusive corporate communication process, which will motivate all to support the process, thus guaranteeing positive results. Other notable findings from the study were that Corporate Communications Strategies were enhanced by other factors in transforming the bank. Some ofthe factors cited included lack of political interference, reorganization and hiring of competent management staff from leading corporate organizations. Others were well-educated and skilled staff supported by a strong countrywide branch network of the bank, among others.