Challenges of strategy implementation at Jamii sacco society ltd, Kenya

Abstract

Successful strategy implementation is the result of careful alignment of an organization’s strategy to the various organizational dimensions such as its structure, culture, resources, leadership, human resources, systems and processes. The purpose of the study was to achieve two objectives namely; to determine the challenges of strategy implementation at Jamii Sacco Society ltd, Kenya, and to establish the measures that it has put in place to deal with the strategy implementation challenges. The research was conducted through a case study design; data was collected by way of interviewing seven senior managers at Jamii Sacco Society. Secondary data sources were also used to complement the primary data that was collected. Content analysis was used to analyze the data. The study established the challenges of strategy implementation in the organization as; inadequate human resource capacity, and poor incentive and reward system to support effective strategy implementation, rapid Changes in Information Communications Technology, changing regulatory framework, intense competition in the industry, changing needs of the Sacco members, and changing demographic profile of the Sacco members. The measures the organization has put in place to address the challenges are; adopting human resource practices such as development of human resource capacity through training , and periodic review of staff salaries, development of new loan products, reviewing policy on membership allowing all Kenyans to be members of the Sacco, and adoption of modern ICT to effectively serve its clients. The study’s conclusions were; adequate development of the organization’s human resource through training and putting in place proper reward and incentive policy is essential to the Sacco’s successful implementation of its strategic plan. The implications of the study was that certain organizational aspects including human resource practices such as reward system and capacity need to be aligned to strategies in order that such strategies can be effectively implemented. The limitations of the study was that it never covered other aspects of strategic management such as strategy formulation, evaluation and controls which are also important; the sample size was also small thus making generalization of the findings difficult. Further research is therefore needed involving intense and qualitative research involving more interviewees, and also covering other areas of strategic management. The study recommended that Jamii Sacco should develop a well documented reward policy explicitly tied to strategy implementation