Management of strategic change at the cooperative insurance company of Kenya Limited

Abstract

This research was designed to investigate into the management of strategic change at the Cooperative Insurance Company of Kenya Limited. The study sought to achieve two objectives. The first objective was to determine the strategic change management process at the Cooperative Insurance Company of Kenya, and the second was to establish the challenges involved in the management of strategic change at the company. To achieve these objectives, the study was carried out through interviews using an interview guide in which Divisional Managers and various Branch Managers were targeted. Of the eleven respondents who were targeted, ten participated in the study hence achieving a response rate of 90.9%.

The findings of the study showed that the company has undertaken both structural and strategic changes. The structural changes were necessary in order to accommodate tremendous growth over the last five years. The changes involved the review of the organizational structure from a hierarchical to a flat one and the grouping of main business divisions. This resulted into the establishment of new positions in the company and merging of others. The company's strategic changes were guided by the 2004-2008 strategic plan. The changes involved adopting the Balanced Score Card as a strategic tool to develop a road map for the development of the company; amending of the corporate vision and mission, from taking the company to the top six insurers to focusing the company for the number one position in the industry, and the introduction of Performance Management as a tool for realizing growth among others.

In initiating both the structural and strategic changes that have been implemented at CIC, the study findings established that most of the changes were planned. The changes were introduced through a carefully managed communication of the need for change in which all the staff in the divisions were made aware of the situation in the company and the need for change in order jo deal with the market environment. The .changes were communicated by the Board' and CEO, while Divisional Managers carried out the implementation through further communication and training of Heads of departments (HODs). There were, however, instances the respondents indicated that changes were not planned.

The study findings also showed that organizational culture was the main challenge that was involved in the management of change at ere. The culture was described as being too conservative and egocentric. This cultural fabric contributed a great deal to behavioral resistance to change, which respondents indicated was very high. It was established that the high resistance was manifest when outsiders were recruited to fill some top level positions as part of the succession planning, yet employees from within the organization felt they deserved the positions. Systemic resistance was also identified as a major challenge in managing change at ere. Lack of adequate funding

was cited as the major source of systemic resistance, which constrained the hiring of adequate staff in various positions to implement the desired changes. It was generally concluded that changes at the ere were on a sound track albeit not all targeted areas

had effectively been tackled.