Organizational Structure and Strategy Implementation at Geothermal Development Company in Kenya

Abstract

Strategy implementation determines the success of an organization because it actualizes the plans that have been set by the organization. Implementation phase of the strategy presents the greatest challenges because it involves interplay of several variables, both internal and external to the organization. The internal variables such as the organizational structure are within the control of the organization and the management can manipulate them to suit the required purposes. Equally the strategy drawing process influences the strategy implementation and hence appropriate participative procedures should be adopted by an organization in coming up with the strategy. The energy sector is expected to play a critical role towards achievement of the country’s vision 2030. Implementation of strategies by the firms in the energy sector is therefore critical towards achievement of government’s policies and strategies. Cheap power reduces the production cost of goods and services, making them affordable to the citizens and competitive in the global, market. Geothermal energy has be classified to be cheaper when compared to hydro and thermal power. The government is therefore keen to see the strategies of Geothermal Development Company (GDC) being successfully implemented. Successful implementation of GDC strategies shall provide adequate power that shall enable the government achieve the development objectives of industrialization. The research project was a case study on GDC. The objectives of the study were to determine the strategy implementation process; establish the role played by organizational structure in strategy implementation and to determine the challenges of strategy implementation at GDC. Research used primary data that was collected through the use of interview guide instrument. Content analysis method was used to analyze the data collected. The study established that strategy implementation process was team work that cut across all the levels of GDC hierarchies. Organization structure was found to play an important role in strategy implementation. GDC was found to have organic organizational structure that was flexible enough to allow adjustments during strategy implementation. The challenges to strategy implementation were largely external to GDC and arose out of the presence of strategic alliances partners. Major limitation of the study was the fact that the study was a case study whose implications are more to the organization or GDC as opposed to other firms in the industry. Further cross sectional research is therefore required before the findings are declared to be universal in application. The study recommended that GDC should reduce the heavy reliance on the strategy partners and work towards selfsufficiency. GDC should also look outside the Kenya borders, especially on Uganda and South side to generate and export surplus power using the Kenya Northern Corridor.