Implementation Strategies Adopted by Kenya Electricity Generating Company (Kengen) for Renewable Projects in Kenya

Abstract

Strategy implementation is so critical in creating and sustaining competitive advantage in the business environment that it calls for research and development of appropriate technologies. This research work is part of that effort. In today’s turbulent and competitive environment, there is an increasing recognition of the need for more dynamic approaches to formulating as well as implementing strategies. Implementing strategy is tougher and more time-consuming than strategy-making. Each implementation situation occurs in a different context, affected by differing factors such as business practices and competitive situations, work environments and cultures. The approach to implementation should therefore be customized. The study was investigating the implementation strategies adopted by KenGenfor renewable projects in Kenya. The findings of this study will contribute to building the existing body of knowledge in strategic management and specifically on strategy implementation. A case study of KenGen was carried out. It involved an in-depth investigation of the phenomenon of strategy implementation. To obtain primary data, which was qualitative in nature, six top level executives were interviewed by use of semi-structured questionnaire. Secondary data was obtained from management information system, internet and printed records. The data collection instrument used was a semi-structured interview guide that was flexible and which gave the researcher an opportunity to probe further. Data was analyzed in accordance with the objectives of the study using content analysis method. Findings from the study indicate that various best practice principles were applied in strategy implementation at KenGen such as measuring the attainment of targets using the balanced scorecard and monitoring the implementation process by the Transformation Monitoring Office (TMO). The findings showed that these practices did support the implementation of the business plan (strategy). It is recommended that KenGen should continue driving strategy implementation through the bi-weekly TMO meetings. The TMO must also place ongoing emphasis on communication that is timely, broad based and effective. Performance management needs to be further embedded and rolled out across KenGen. All employees need to be stakeholders in the future direction of the organization. Their daily performance and activities should be measured along the specific milestones and core values identified by the business plan. In addition, KenGen should finalize the unfinished policies around monetary and non-monetary awards and link the performance management system to the strategy that needs to be developed for the company. There were two limitations of the study. First, some of the responses were likely to be biased due to the fact that the informants who were interviewed were the actual people involved in strategy implementation. Second, there was a constraint of availability of informants due to engagements such as leave of absence, training, or fieldwork. A study could be conducted to investigate how performance management in KenGen can be improved to support strategy implementation process. A future study should also be conducted to identify how KenGen was transformed from a “Good” organization to a “Great” organization.