Challenges of strategy implementation at Kenya industrial estates limited

Abstract

The objective of this study was to determine strategy implementation challenges at Kenya Industrial Estates Limited. The research was conducted through a case study. In-depth interviews were conducted with the board members, top-level managers, the middle level managers and the shop floor employees with the help of an interview guide. A conceptual and qualitative content analysis was the best-suited method for data analysis. In the recent past, Kenya Industrial Estates Limited has formulated and implemented two (2) 5-years strategic plans being the years 1996-2001, and the years 2003-2008 strategic plans. During the implementation of the years 1996-2001 strategic plan focus was on cost cutting. The organisation, however, continued performing dismally. In the implementation of the years' 2003-2008 strategic plan, out of the strategy critical aspects of the organisation, the organisation was only able to align its structure, culture and leadership to its strategy. Policies, procedures and support systems, the reward, and motivational structures, resource allocation and budgetary allocation continued posing a challenge to the successful implementation of the strategy. Similarly, the importance of communication of responsibility and accountability, with regard to the strategic plans, was overlooked. The organisation continued in its poor performance. The strategy implementation challenges experienced by the organisation were enhanced by both restrictive regulations and policies under which state corporations operate. The organisation had no control over these policies and regulations Kenya Industrial Estates Limited like any other state corporation operates in a complex environment, which is more unpredictable and less stable. This notwithstanding, it is expected to emulate the private sector, and operate competitively. However, state corporations do not operate as freely as the private enterprises. The state corporations' objectives fluctuate in their order of .priority depending on the restrictions and the changes in the governing regulations, and the changes in the broader policies formulated by the Government. This situation places Kenya Industrial Estates Limited in a very awkward position in that, it is unable to operate commercially and reflect profits.