Strategic change management practices adopted by Commercial Banks in Kenya

Abstract

The rise of competition in the business arena has necessitated robust strategic change management by many commercial banks to ensure that they remain relevant. However, efficient actualization of these strategic change management practices has been hindered by numerous challenges that face commercial banks while trying to adopt such practices. The purpose of the study was to investigate the strategic change management practices adopted by commercial banks in Kenya. The objectives of the study were; to determine the challenges for managing strategic change by commercial banks in Kenya and to establish the strategic change management practices adopted by commercial banks in Kenya. Descriptive research design was used in the study. The study targeted 43 banks in Kenya. Questionnaires were used as main data collection instrument in the study. Questionnaires were deemed appropriate as they ensured confidentiality of the respondents. The data collected from the field was analysed using descriptive statistical techniques such as percentages and means. SPSS was used to compute the data, which was then presented in tables and charts. The study found out that the most important challenge faced by banks in managing strategic change were information and technological innovations. The study also found out that the main strategies employed by banks were; manufacturing products that were needed in the market, diversification in new products, recruiting qualified staff and business re-engineering leading to short and less costly processes. The study recommends that the commercial banks should increase their competitive edge through adoption of these three broad generic strategies; overall cost leadership, differentiation and market segmentation. The commercials banks should also be bold in adopting new strategic change management practices, should embrace and invest in new technologies, and carry out frequent market research. The study also recommends that more study be done on strategic change management in other commercial institutions that were not concern of the study.