The Strategic Effect of Automating Financial Systems in Devolved Governments Performance a Case of Nairobi County

Abstract

Globally, many scholars view financial system automation as important to any organisation or institution because of the role it play in enhancing efficiency in service delivery. In the wake of devolution, county governments financial performance has been pegged on how efficient, economical and effective are their operations. The major administrative problems being their inability to cost effectively collect fully the revenues. This research develops a conceptual model to test how Nairobi County management strategies affect the automation of its financial systems policies, decisions and implementation. The target population was purposefully chosen for this study and included individuals with significant knowledge about automating financial system especially those at strategic level. Data was collected by means of personal interviews, approximately 15 face-to-face interviews with the Nairobi County senior executives was conducted. The study used qualitative techniques to enable an in-depth understanding of the strategic effect of automating financial system in Nairobi County. Moreover, it adopted a case study research design and used a purposive sampling design to make sure that all significant sectors of the study were systematically covered. Results indicated that senior executive support and goodwill played an integral role in the implementation of automation process. The results further indicated that there was a positive correlation between the financial system automation strategies and the implementation of the same. In addition, the study established that stakeholder’s involvement in formulation and implementation of the same strategies promoted its success. As the staff at operation level tends to own up the entire system. The analysis of the data revealed that the major challenges facing the financial automation are reduced commitment among some stakeholders; inadequate resources allocated for the implementation process, poor succession plans and reduced commitment in adopting the County strategic agenda blueprint. To avert the same the researcher recommended that the AFS formulation and implementation committee should include all stakeholders who are affected by the same. As well as support and train their employees of how the system works and the accruing benefits of using the system. Lastly, they should provide incentives and awards to those operation levels staff that show increased commitment in the implementation process.