Strategy Development in the Selected State Corporations That Offer Financial Services in Kenya

Abstract

This study focused on the strategy development process and the challenges faced in the process in selected state corporations that offer financial services in Kenya. Data was collected using questionnaires distributed to five selected state corporations. The respondents constituted senior managers drawn from five state corporations. The response rate was 80% and non response rate was 20%. The response rate was thus considered good and the data collected was considered reliable. Data was analyzed based on the interpretation of the responses from the questionnaires and implications as per the respondents’ accounts from the interview process. Data was analyzed using descriptive statistics methodology which led to establishing the mean score for each question from all the respondents. Content analysis was used to identify and extract key themes and arguments particularly on how organizations develop their strategic objectives. The institutions provided an insight into the steps followed in strategy formulation process key among them were: enlisting of consultants to guide the process; developing the vision and mission and statement; environmental scanning; development of strategic objectives; stakeholder participation and communication of strategies selected. The study also brought to the fore the time and challenges frame work to be considered during strategy development process in addition to pointing out the most critical factors that may pose challenges in the strategy development process. The most critical factors are environmental turbulence/ uncertainty and availability of resources. The least critical factors are resistance to change and organizational culture. The other factors are government influence, politics, stakeholder expectations, organizational structure and leadership. It is recommended that in the interest of prudent management the strategy development process be hinged upon realistic budget for the resources of time, money and personnel.