Influence of Change Management Practices on Corporate Governance at Laborex Kenya Limited

Abstract

The study objective was to determine the influence of change management practices on corporate governance at Laborex Kenya. Organizations today continue to face business related problems that force them to adjust or change. They are therefore undertaking strategic changes in order to align their business strategies to the environment thereby matching their resources and activities to that environment. Corporate governance hence plays a significant role in ensuring that the needed changes take place successfully. Strategic change management is an important process since it can deliver vast benefits by improving the system and thus satisfy customer needs. How these changes are managed can have a profound influence on the corporate governance of an organization. The choice of the change practice, agent of change and timeliness all have a role to play when instituting changes. For a pharmaceutical distributor in Kenya to operate efficiently in a changing environment, there is need to take into consideration the influence change management practices may have on running of the organization. The research design used case study method aimed at investigating the influence of change management practices on corporate governance at Laborex Kenya. The study used an interview guide to obtain data required to meet the specific objective of the study. The respondents were the Chief Executive Officer, marketing and Finance Directors. Interviews were conducted with all the three. Given their positions and service years with the organization, their information was considered representative enough for the study. The study concludes that, the success or failure of change management in an organization will eventually have a bearing on its corporate governance. It may sometimes be necessary to have a change at the top in order to have meaningful changes especially if the old management was the one in charge when the problems developed. Given the nature of the positions held by the respondents and that information relating to strategy in any organization is always treated with sensitivity, it was difficult to get appointment initially. The researcher had to inform the respondents in advance that the purpose for the research study being carried out was meant for academic purpose only. Further research should be carried out around the change management strategies so that organizations can become more aware of them and put them into practice. Key words: Change management, Corporate governance, Stakeholders, Environment