Strategy implementation at equity bank limited

Abstract

Strategies are a critical element in organizational functioning. but whereas most organizations have good strategies, successful strategy implementation remains a major challenge. The notion of strategy implementation might seem quite straight forward; a strategy is formulated and then implemented. On the contrary, transforming strategies into action is a far more complex, difficult and challenging undertaking and therefore not as straight forward as one would assume. Successful strategy implementation is as critical and difficult as the strategic choice. It requires consideration of resources to be used, structure, systems and other variables.

Many studies have been conducted on how Kenyan organizations have responded to the changing environmental conditions and on strategic change management. These studies have not focused on the challenges to strategy implementation. Given that strategy implementation challenges are inevitable. the researcher felt there was a need t6 .study strategy implementation, the challenges encountered and how these challenges are addressed by an indigenous Kenyan organization.

Jt is against this background that the researcher had set out to study strategy implementation by Equity Bank Limited, the implementation challenges encountered by the bank and how the bank addressed these challenges. The study was conducted through a case study design, focusing on strategy implementation at Equity Bank, interpreting in­ depth details concerning the challenges to strategy implementation and how these challengeshave been overcome by the bank.

The study established that Equity Bank has implemented various strategies since its inception. Implementation of major strategies were categorised into four phases. The first major category of strategy implementation was on the market and the client focus while the second category was on ownership and governance. The third category of strategy implementation was on management and the fourth category focused on the staff.

The finding of the study established that the major challenges encountered by Equity Bank while implementing strategies included some aspects of organizational culture and structure,high degree of staff turnover and resistance to change. Others included lack of infrastructural facilities, government decisions, inadequate resources and indiscipline amongsome employees.

In order to address the challenges encountered while implementing strategies, the study found out that Equity Bank involved all employees and other stakeholders in its strategy implementation process. This is in an attempt to minimise resistance to change. There was also communication to all parties to be affected by the changes as a result of strategy implementation.The staff were also trained on new products and services and assisted in utilising new skill acquired during training sessions. Other initiatives adopted included encouraging employees to brainstorm, share new ideas, and to own the strategy implementation process. The leadership style of delegating responsibilities, creating incremental challenges and rewarding performance enhanced the morale of senior managersand branch managers in implementing strategies. Lower level employees were alsorewarded for good performance. dedication and long service.

In order to address the challenges associated with financial constraints. that inhibited strategy implementation. Equity started. getting assistance from international organizations such as European Union- Micro Enterprise Support Programme (EL­ MESP), and United Nations Development Programme (UNDP) among other international organizations. The bank also recognised the importance of social cultural processes in successful strategy implementation hence its development and adoption of core guiding values.

The study was based on Equity Bank Limited and it could not therefore give a general picture of strategy implementation, its challenges and how these challenges are addressed by other banks operating in Kenya. The findings of the study were organization specific and apply to Equity Bank only. The study focused on the strategy implementation aspect of the strategic management process leaving out the formulation aspect as well as the control and evaluation aspect which are the other vital components part of the strategic management process. There is therefore the need to carry out further studies on •strategy implementation, its challenges and how these challenges are overcome by other banks operating in Kenya. A replication of this study should also be done after some time to find out if there are any changes that have taken place and comparison with the findings of this study done.