CHALLENGES OF STRATEGY IMPLEMENTATION AT THE MINISTRY OF STATE FOR DEVELOPMENT OF NORTHERN KENYA AND OTHER ARID LANDS TIMOTHY MUNGAI MWANGI |UNIVERSITY OF NAIROBI L O W E R K A B E T 5 L IB R A R Y A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA), SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI OCTOBER 2012 DECLARATION Student’s Declaration This management research project is my original work and has not been presented for a degree in any other university or any other examination body. No part o f this research should be reproduced without my consent or that of the University of Nairobi. Signed....... ........................ Date... .1.9. ! . \ ). 1. . '.5 r ...... Timothy Mungai Mwangi D61/71571/2008 This project has been submitted for examination with my approval as university supervisor. Date.... Prof Martin Ogutu Department of Business Administration School of Business University of Nairobi (UON) u DEDICATION I dedicate this project to my wife, the Mwangi's family and all those in one way or another helped me achieve in developing the ideas in this final report. in ACKNOWLEDGEMENTS I thank the Almighty God for His guidance and providence which enabled me to undertake this project. I also acknowledge the presence of my family especially my wife in both moral and financial support. 1 am mostly obliged to my supervisor Prof. Martin Ogutu whose advice, constant guidance, encouraging remarks and intellectual comments fashioned my work to its completion May God bless them. tv ABBREVIATIONS ASAL African Association for Public Administration and Management GoK Government of Kenya IIED International Institute for Environment and Development IT Information Technology KCB Kenya Commercial Bank MBA Master of Business Administration MDNKOAL Ministry o f State for Development of Northern Kenya and other Arid Lands SPSS Statistical Package for Social Sciences UK United Kingdom v ABSTRACT Strategy implementation is the translation of chosen strategy into organizational action so as to achieve strategic goals and objectives. Strategy implementation is also defined as the manner in which an organization should develop, utilize, and amalgamate organizational structure, control systems, and culture to follow strategies that lead to competitive advantage and a better performance. The main objectives o f this study were to investigate the challenges o f strategy implementation in the ministry of Northern Kenya and other arid areas. The study was a case study since the unit of analysis was one organization w hich was the Ministry of Northern Kenya. The interviewees were the top managers and functional heads in charge of finance, risk management, information technology and operations, human resources, marketing and research division, and public affairs and communication division. The primary data was collected using an interview guide. The data obtained from the interview guide was analyzed using content analysis. A few of the Quantitive data was analyzed using (Statistical Package for Social Sciences) SPSS. The study concludes that that factors that influence strategy implementation in Ministry of Northern Kenya were financial capacity of the organization, top management support, involvement of board of directors and the employees in the strategic implementation process, organization structure, communication process and also staff motivation and capability of the human resource in the organization in managing and implementing new strategic direction. The study also concluded that the effect of strategy implementation and performance in the ministry was that the need to attain a competitive advantage over other ministries dependent on strategy implementation and performance. The study therefore recommends that for an efficient and effective implementation process senior management must at all levels be involved and committed throughout the process, departmental employees w ith should be provided with a sound understanding of the forthcoming changes and of the new way of understanding, preparation must be done as much as possible before embarking on full implementation; and also the organization must ensure that there are sufficient resources for the transition and that the top manager and the board of directors are empowered to make the necessary decisions. The study also recommends that the communication process be reinforced with a policy that will govern the activities related so as to well enhance the implementation of strategies in the ministry. VI TABLE OF CONTENTS DECLARATION................................................................................................................................ ii DEDICATION...................................................................................................................................Hi ACKNOWLEDGEMENTS.............................................................................................................iv ABSTRACT...................................................................................................................................... vi ABBREVIATIONS......................................................................................................................... vii CHAPTER ONE: INTRODUCTION............................................................................................. 1 1.1 Background of the Study............................................................................................................... 1 1.1.1 Challenges of Strategy Implementation.....................................................................................2 1.1.2 The Ministry of Northern Kenya...............................................................................................4 1.2 Research Statement...................................................................................................................... 5 1.3 Research Objectives.......................................................................................................................7 1.4 Value of the Study......................................................................................................................... 7 CHAPTER TWO: LITERATURE REVIEW............................................................................... 9 2.1 Introduction....................................................................................................................................9 2.1.1 The Concept of Strategy Implementation................................................................................. 9 2.2 Models of Strategy Implementation..........................................................................................11 vii 2.2.1 The Seven (7s) Model of the Strategy Process 11 2.2.2 Other Models.......................................................................................................................... 12 2.3 Challenges of Strategy Implementation....................................................................................13 2.3.1 Top Management Commitment............................................................................................... 13 2.3.2 Communication Challenges......................................................................................................15 2.3.3 Coordination Challenges........................................................................................................... 18 2.3.4 Cultural Challenges................................................................................................................... 19 2.3.5 Resistance to Change............................................................................................................... 20 CHAPTER THREE: RESEARCH METHODOLOGY........................................................... 22 3.1 Introduction..................................................................................................................................22 3.2 Research Design...........................................................................................................................22 3.3 Data Collection............................................................................................................................ 23 3.4 Data Analysis...............................................................................................................................23 CHAPTER FOUR: DATA ANALYSIS, INTERPRETATIONS AND DISCUSSIONS.................................................................................................................................25 viii 4.1 Introduction 25 4.2 Qualitative Analysis on challenges of strategy implementation at the Ministry of Northern Kenya...................................................................................................................................25 4.2.1 Top Management Support.........................................................................................................26 4.2.2 Co-ordination.............................................................................................................................27 4.2.3 Communication......................................................................................................................... 28 4.2.4 Culture........................................................................................................................................28 4.2.5 Resistance to Change................................................................................................................29 4.3 Areas that the Ministry of Northern Kenya need to give more attention in order to enhance an effective strategy implementation process....................................................................29 CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS............31 5.1 Introduction..................................................................................................................................31 5.2 Summary of Findings................................................................................................................. 31 5.2.1 Top Management Support........................................................................................................ 31 5.2.2 Communication.........................................................................................................................33 5.2.3 Coordination Challenges.......................................................................................................... 33 5.2.4 Cultural Challenges.................................................................................................................. 34 5.2.5 Resistance to Change................................................................................................................34 IX 5.3 Conclusions of the study. 34 5.3.1 Top management....................................................................................................................... 35 5.3.2 Communication..........................................................................................................................35 5.3.3 Coordination..............................................................................................................................35 5.3.4 Culture........................................................................................................................................35 5.3.5 Resistance to change................................................................................................................. 36 5.4 Recommendations for Policy and Practice................................................................................. 36 5.5 Limitations of the Study...............................................................................................................36 5.6 Suggestions for Further Research............................................................................................... 37 REFERENCES.................................................................................................................................38 APPENDIX I: LETTER OF INTRODUCTION........................................................................46 APPENDIX II: INTERVIEW GUIDE........................................................................................ 47 x CHAPTER ONE: INTRODUCTION 1.1 Background of the Study Strategic implementation is about working together and sharing information with each other. The value of any strategy and its potential contributions include increasing productivity, reducing costs, growing profits, and improving service or product quality. In today’s competitive environment, implementing strategies successfully is vital for any organization, either public or private. Without implementation, even the most superior strategy is useless. The notion of strategy implementation might at first seem quite straightforward: the strategy is formulated and then it is implemented. Implementing would thus be perceived as being about allocating resources and changing organizational structure. However, transforming strategies into action is a far more complex and difficult task (Beer and Eisenstat, 2000). Strategy implementation has attracted much less attention in strategic and organizational research than strategy formulation or strategic planning. Alexander (1991) suggests several reasons for this: strategy implementation is less glamorous than strategy formulation, people overlook it because of a belief that anyone can do it, people are not exactly sure what it includes and where it begins and ends. Furthermore, there are only a limited number of conceptual models of strategy implementation. The implementation process involves the collective wisdom, knowledge, and even subconscious minds of the collaborators. This powerful phenomenon is becoming a requirement to effectively compete in today's global marketplace (Alavi, 1994: Hills, 1 1997). There is currently considerable interest in strategy implementation. Management interest can be gauged from the high levels of attendance at the large number of industrial conferences on the subject. Academic interest is manifest through the considerable number o f papers on the topic (Neely, 1999). But this interest is not new. In the late 1970s and 1980s, authors expressed a general dissatisfaction with traditional backward looking accounting based on strategy implementation, identifying their shortcomings and arguing for change. 1.1.1 Challenges of Strategy Implementation Organizations seem to have difficulties in implementing their strategies. Strategy implementation is the match between an organization’s resources and skills and the environmental opportunities as well as the risks it faces and the purposes it wishes to accomplish (Thompson, 1993). However, researchers have revealed a number of problems in strategy implementation which include: weak management roles in implementation, a lack of communication, lacking a commitment to the strategy, unawareness or misunderstanding of the strategy, unaligned organizational systems and resources, poor coordination and sharing of responsibilities, inadequate capabilities, competing activities, and uncontrollable environmental factors (Galpin, 1998; Lares- Mankki, 1994). According to Alexander (1985), the ten most frequently occurring strategy implementation problems include underestimating the time needed for implementation and major problems surfacing that had not been anticipated, in addition uncontrollable factors in the external environment had an adverse impact. Based on empirical work with 2 93 firms he observed that senior executives were over optimistic in the planning phase and it is noteworthy that the first two issues which occurred most frequently in Alexander's study are planning issues. He also found the effectiveness of coordination of activities and distractions from competing activities inhibited implementation, in addition key tasks were not defined in enough detail. With regard to people, the capabilities of employees involved were often not sufficient, leadership and direction and "training and instruction given to lower level employees were not adequate" (Alexander, 1985). Although the least frequent in this study in many cases the information systems used to monitor implementation were not adequate. More recent articles confirm notable barriers to successful strategy implementation about which there appears to be a degree of accord including Beer and Eisenstat's (2000) “six silent killers of strategy implementation” These comprise: a top-down/laissez-faire senior management style; unclear strategic intentions and conflicting priorities; an ineffective senior management team; poor vertical communication; weak co-ordination across functions, businesses or borders; and inadequate down-the-line leadership skills development (Beer and Eisenstat, 2000). It is recognized that such change requires a shared vision and consensus (Beer et al., 1990) and “failures of strategy implementation are inevitable” if competence, coordination and commitment are lacking (Eisenstat, 1993). Corboy and O'Corrbui (1999), meanwhile, identify the "deadly sins of strategy implementation” which involve: a lack o f understanding of how the strategy should be implemented; customers and staff not fully appreciating the strategy; unclear individual responsibilities in the change 3 process; difficulties and obstacles not acknowledged, recognized or acted upon; and ignoring the day-to-day business imperatives. Overall though, it is increasingly acknowledged that the traditionally recognized problems of inappropriate organizational structure and lack of top management backing are not the main inhibiting factors to effective strategy implementation (Aaltonen and Ikavalko, 2002). Rather, the major challenges to be overcome appear to be more cultural and behavioral in nature, including the impact of poor communication and diminished feelings of ownership and commitment (Alexander, 1985; Giles, 1991; Corboy and O'Corrbui, 1999. In addition to the above, another inhibitor to successful strategy implementation that has been receiving a considerable amount of attention is the impact of an organization’s existing management controls and particularly its budgeting systems (Reed and Buckley, 1988; Otley, 2001). 1.1.2 The Ministry of Northern Kenya The Ministry of State for Development o f Northern Kenya and Other Arid Lands (MDNKOAL) is a technical ministry created to provide policy direction and leadership in the planning, implementation and coordination of development in northern Kenya and other arid lands. Arid and Semi Arid Lands (ASAL) constitute 84 percent o f the total land mass in Kenya, or 24 million hectares (GoK 2007). The extent of aridity, coupled with demographic structures, shape the economic mainstay of these lands, which is nomadic pastoralist. The most marginalized districts in Kenya have traditionally been identified as ASAL. 4 The Ministry for the Development of Northern Kenya and other Arid Lands was therefore mandated to turn these plights around and help in bringing development to the people o f these regions. The Ministry is to support all efforts to bring positive change and put its hand on the plough of development o f Northern Kenya and other arid lands. The mandate of the Ministry includes the development of infrastructure, the planning of settlements, strengthening livestock marketing and livestock related industries, water supply and irrigation, natural resource management, mineral resources exploration, opening up the arid lands for tourism, human resources development and tapping solar and wind energy to fuel development. The ministry has some laid down strategy to help achieve its objectives despite challenges in the implementation efforts. For example, in 2009, the MDNKOAL commissioned a team of pastoral experts from the International Institute for Environment & Development (1IED) to assist in the design o f a new national strategy to allow nomadic children and adults to access high quality education. 1.2 Research Statement Failure in strategic management almost always happens during the implementation of the strategic plan. While very few have been done into strategy implementation, Alexander observes that literature is dominated by a focus on long range planning and strategy content rather than the actual implementation of strategies, on which "little is written or researched" (Alexander. 1985). The apathy to strategy implementation can be ascribed to several reasons, among them: greater likelihood of failures in implementing strategies; higher complexity in the process of strategy implementation; strategy implementation 5 being considered to be less glamorous than formulation; and practical difficulties in research involving middle-level managers (Alexander. 1985). Bridging the gap on strategy implementation has since long been experienced as challenging. Key issues that affect the Ministry of state for Development of Northern Kenya and other Arid Lands towards strategy implementation include commitment, communication challenges, coordination challenges, organization culture as well as resistance to changes. Due to various challenges in strategy implementation, the ministry has not managed to fully implement its plans in the last decade. Despite the neglect by academicians and consultants, more challenges are experienced in practice in the course of strategy implementation. In their research, Bartlett and Ghoshal (1987) found that in all the companies they studied, the issue was not a poor understanding o f environmental forces or inappropriate strategic intent. Without exception, they knew what they had to do; their difficulties lay in how to achieve the necessary changes”. Strikingly, organizations fail to implement about 70 per cent of their new strategies (Miller, 2002). Another recent study is a bit less alarming; it says 40 per cent of the value anticipated in strategic plan is never realized (Mankins and Steele, 2005). Local studies have been done; Kamanda (2006) did a study on Factors Influencing the Regional Growth Strategy at KCB. Muturi (2005) investigated on strategic responses by Christian churches in Nairobi. Also, Okumus (1999) did a study on strategy implementation: a study of international hotel groups. However, no known study has been done to explore the challenges encountered in strategy implementation by Kenyan ministries. In an effort to contribute to the already attempted studies on strategy 6 implementation, this study will investigate the challenges of strategy implementation in the ministry of Northern Kenya and other arid areas. The findings o f this study have answered the research questions: what are the challenges of strategy implementation at the ministry of northern Kenya? And what are the responses to the challenges of strategy implementation by the ministry? 1.3 Research Objectives This research study was guided by the following research objectives; i. To establish the challenges o f strategy implementation at the ministry of Northern Kenya and other arid areas ii. To establish measures taken to overcome challenges of strategy implementation at the ministry of Northern Kenya and other arid areas 1.4 Value of the Study The study would be important to the ministry of Northern Kenya and other arid areas on the issues relating to challenges of strategy implementation and the measures that can be adopted to overcome strategy implementation. The study would be important to other ministries and organizations in Kenya for it would help them understand the challenges of strategy implementation and how to overcome them, it helps different firms achieve success better than others. The results of the study would be important to the practitioners and academicians both in the private and public sector by contributing to the existing body of knowledge in the area of strategic management in general and strategy implementation in particular. 7 Academicians would use findings for further research, while practitioners would apply lessons in strategies and implementations for success o f the firms. The study would be a source of reference material for future researchers on other related topics; it will also help other academicians who undertake the same topic in their studies. The study would also highlight other important relationships that require further research; this may be in the areas of relationships between intelligence and firm's performance. 8 CHAPTER TWO: LITERATURE REVIEW 2.1 Introduction This chapter summarizes the information from other researchers who have carried out their research in the same field of study. The specific areas covered here are strategy implementation, types of strategy implementation, change model, collaborative model, cultural model, and finally the factors affecting strategy implementation. 2.1.1 The Concept of Strategy Implementation Ansoff (1999) views strategy in terms of market and product choices. According to his view, strategy is the common thread among an organization’s activities and the market. Johnson and Scholes (1998) define strategy as the direction and scope of an organization that ideally matches the results o f its changing environment and in particular its markets and customers so as to meet stakeholder expectation. According to Jauch and Glueck (1984), strategy is a unified and integrated plan that relates the strategic advantages of the firm to the challenges of the environment and that is designed to ensure that the basic objectives of the enterprise are achieved through proper execution by the organization. Mintzberg and Quinn (1979) also had a hand in strategy definition whereby he perceives strategy as a pattern or a plan that integrates organization’s major goals, policies and action into a cohesive whole. Porter (1996) has defined strategy as a creation of a unique and vulnerable position of tradeoffs in competing, involving a set of activities that neatly fit together, that are simply consistent, reinforce each other and ensure optimization of effort. Pearce and Robinson (2007) defines strategy as the company's “game plan" which 9 results in future oriented plans interacting with the competitive environment to achieve the company's objectives. Johnson and Scholes (2002) view strategy as the direction and scope of an organization over the long-term, which achieves advantage for the organization through its configuration of resources within a changing environment, and fulfill stakeholder’s expectations. Strategy implementation evolves either from a process of winning group commitment through a coalitional form of decision-making, or as a result of complete coalitional involvement of implementation staff through a strong corporate culture. Implementing strategies successfully is about matching the planned and the realizing strategies, which together aim at reaching the organizational vision. With firms evolving in terms of structure it follows that the style of strategy implementation will differ depending on the style of organisation and management that exists in the firm. In general terms the types of leadership style can play a critical role in overcoming barriers to implementation. Reed and Buckley (1988) discuss problems associated with strategy implementation identifying four key areas for discussion. A1 Ghamdi (1998) replicated the work of Alexander (1985) in the UK and found that 92 percent of firms implementation took more time than originally expected, that major problems surfaced in 88 percent of companies, again showing planning weaknesses. He found the effectiveness of coordination of activities as a problem in 75 percent and distractions from competing activities in 83 percent cases. In addition key tasks were not defined in enough detail and information systems were inadequate in 71 percent o f respondents. What is interesting is that there is congruence between these findings, which implies that lessons have still not been learned; as A1 Ghamdi states, the drama still continues (A1 Ghamdi, 1998). 2.2 Models of Strategy Implementation 2.2.1 The Seven (7s) Model of the Strategy Process The model (7s) posits that Managers, need to take account of all seven of the factors to be sure of successful implementation of a strategy- large or small. They're all interdependent, so if you fail to pay proper attention to one of them, it can bring the others crashing down around you. The model is most often used as a tool to assess and monitor changes in the internal situation of an organization. The model is based on the theory that, for an organization to perform well, these seven elements need to be aligned and mutually reinforcing. So, the model can be used to help identify what needs to be realigned to improve performance, or to maintain alignment (and performance) during other types of change. Whatever the type of change - restructuring, new processes, organizational merger, new systems, change of leadership, and so on - the model can be used to understand how the organizational elements are interrelated, and so ensure that the wider impact of changes made in one area is taken into consideration.. Like a lot of these models, there's a good dose of common sense in here, but the 7S Framework is a useful way o f checking that you've covered all the bases (Alexander, 1991). These represent; Strategy-a set of actions that you start with and must maintain; Structure- How people and tasks / work are organized; Systems- all the processes and information flows that link the organisation UNIVERSITY OF N W O S l) LOWER KAP' LIBRAr_____ i 11 together. Style- refers to how managers behave; staff- refers to how we develop managers (current and future); super ordinate Goals which refer to longer-term vision, and all that values stuff, that shapes the destiny of the organisation and finally; skills which are dominant attributes or capabilities that exist in the organisation 2.2.2 Other Models Co-Evolutionary theory (Lewin and Volberda. 1999) indicates that as firms grow and evolve from small to larger and multidivisional organisations, the strategy implementation methods also evolve simultaneously. The various strategy implementation models described by Bourgeois and Brodwin (1984) are meant to meet the changing needs of firms as they evolve through various stages of the organizational life cycle (Parsa. 1999). In contrast to the earlier descriptive models, this model is more prescriptive with an, albeit limited, empirical basis. Not all firms implement their strategies in the same manner; nevertheless, research investigating the differing styles of implementation is scarce. Nutt (1995) utilizes Jungian theory (Jung, 1923) for his framework of implementation style, however, this is very much an analysis of the psychological style of individuals within the firm. More recently, Parsa (1999) utilised Bourgeois and Brodwin's (1984) classification of strategy implementation types. The majority of existing classification models in strategy implementation tends to be normative in nature (Parsa, 1999). Alternatively, they are developed from organizational observation, and as such, become context specific and frequently lack any broader 12 theoretical grounding (Hooley et al., 1992). In contrast. Bourgeois and Brodwin's (1984) model is comprehensive and based on specific theoretical assumptions and has been used by authors such as Parsa (1999). Bourgeois and Brodwin (1984) to refute the traditional approach to strategy implementation as simply an addition to the strategy formulation phase of the strategy process. Rather, they contend that strategy implementation evolves either from a process of winning group commitment through a coalitional form of decision-making, or as a result of complete coalitional involvement of implementation staff through a strong corporate culture. 2.3 Challenges of Strategy Implementation 2.3.1 Top Management Commitment The most important thing when implementing a strategy is the top level management’s commitment to the strategic direction itself. This is undoubtedly a prerequisite for strategy implementation. Therefore, top managers must demonstrate their willingness to give energy and loyalty to the implementation process. This demonstrable commitment becomes, at the same time, a positive signal for all the affected organizational members (Rapa and Kauffman, 2005). To successfully improve the overall probability that the strategy is implemented as intended, senior executives must abandon the notion that lower-level managers have the same perceptions of the strategy and its implementation, of its underlying rationale, and its urgency and instead, they must believe the exact opposite. They must not spare any effort to persuade the employees of their ideas (Rapa and Kauffman, 2005). Overall 13 though, it is increasingly acknowledged that the traditionally recognized problems of inappropriate organizational structure and lack of top management backing are the main inhibiting factors to effective strategy implementation (Aaltonen and Ikavalko, 2002). Aaltonen and Ikavalko recognize the role of middle managers, arguing they are the "key actors” "who have a pivotal role in strategic communication” (Aaltonen and Ik&valko, 2002) meanwhile Bartlett and Goshal (1996) talk about middle managers as threatened silent resistors whose role needs to change more towards that of a “coach”, building capabilities, providing support and guidance through the encouragement of entrepreneurial attributes. So, if they are not committed to performing their roles the lower ranks of employees will not be provided support and guidance through encouragement of entrepreneurial attributes. Kamanda (2006) suggests that employee performance, absenteeism, innovation, turnover and satisfaction may be gauged by the degree of workers’ commitment to the company. Corporate loyalty, as affected by corporate restructuring, cultural differences and labour- management relations, is analyzed. It is concluded that these three factors are changing the nature of the employee-company relationship. Organizational commitment is being eroded while the “Me Inc.” relationship, which puts employee interests ahead of the corporate welfare, is emerging. They also conclude that business executives should accept the reality that the structure of US business is changing. Nutt, (1995) points out that subtle changes taking place in the attitudes of employees towards working, their employers, and their lives are requiring companies to change their personnel management techniques accordingly to motivate their employees and instill 14 them with commitment. Employees want to work for companies they can be proud of, which exhibit values and viewpoints similar to their own, and are concerned about long­ term goals. He states that there are certain phases in commitment-building. They include the scientific phase where management motivates workers using the carrot and stick method, the human relations phase where firms treat employees with fairness and kindness, and a phase emphasizing principles, where managers make better use of their employees’ creativity and imagination. 2.3.2 Communication Challenges At first look, the suggestion that communication aspects should be emphasized in the implementation process seems to be a very simple one. Even though studies point out that communication is a key success factor within strategy implementation (Miniace and Falter, 1996), communicating with employees concerning issues related to the strategy implementation is frequently delayed until the changes have already crystallized. One of the reasons why strategy implementation processes frequently result in difficult and complex problems — or even fail at all - is the vagueness of the assignment of responsibilities. In addition, these responsibilities are diffused through numerous organizational units (Rapa and Kauffman, 2005) resulting in unclear individual responsibilities in the process. To avoid power struggles between departments and within hierarchies, one should create a plan with clear assignments of responsibilities regarding detailed implementation activities. This is a preventive way of proceeding. Responsibilities are clear and potential problems are therefore avoided (Rapa and Kauffman, 2005). Top management is 15 essential to the effective implementation of strategic change. Top management provides a role model for other managers to use in assessing the salient environmental variables, their relationship to the organization, and the appropriateness of the organization's response to these variables. Top management also shapes the perceived relationships among organization components (Noble, 1999). Top management is largely responsible for the determination of organization structure (e.g., information flow, decision-making processes, and job assignments). Management must also recognize the existing organization culture and leam to work within or change its parameters (Otley, 2001). Top management is also responsible for the design and control of the organization's reward and incentive systems. Finally, top management is involved in the design of information systems for the organization. In this role, managers influence the environmental variables most likely to receive attention in the organization (Sandelands, 1994). They must also make certain that information concerning these key variables is available to affected managers. Top- level managers must also provide accurate and timely feedback concerning the organization's performance and the performance of individual business units within the organization. Organization members need information to maintain a realistic view of their performance, the performance of the organization, and the organization's relationship to the environment. Managers cannot create coordination mechanisms or integrate strategic and short-term operating objectives if job responsibilities and accountability are unclear. Clarifying responsibility and accountability is vital to making strategy work. The problem is that 16 job-related responsibilities are not always clear, and even authority is not always unambiguous (Parsa, 1999). Responsibility and accountability are often blurred when people from different divisions, functions, or hierarchical levels come together to solve a problem. Matrix-like structures in global settings marked by lateral, hierarchical, and country influences often suffer from a cloudy picture of responsibility, accountability, and authority. To execute strategy, responsibility and accountability must be clear. Use of a responsibility matrix or similar tool can help to define key execution tasks or activities and the people responsible for them. Without this clarification o f roles and responsibilities for critical tasks, decisions, and outcomes, making strategy work is difficult, at best. In this context, many organizations are faced with the challenge of lack of institution of a two-way-communication program that permits and solicits questions from employees about issues regarding the formulated strategy. In addition to inability to solicit questions and feedback, lack of communications cause more harm as the employees are not told about the new requirements, tasks and activities to be performed by the affected employees, and, furthermore, cover the reason behind changed circumstances (Alexander, 1985). It is essential both during and after an organizational change to communicate information about organizational developments to all levels in a timely fashion. However, one may misunderstand communication, or the sharing of information, as engagement the direct dialogue that produces lack of active participants in the process. The way in which a strategy is presented to employees is of great influence to their acceptance of it. To deal 17 with this critical situation, an integrated communications plan must be developed. Such a plan is an effective vehicle for focusing the employees’ attention on the value of the selected strategy to be implemented (Rapa and Kauffman. 2005). Lares-Mankki (1994) examined the effects o f top management’s practices on employee commitment, job satisfaction, and role uncertainty by surveying 862 insurance company workers. Five management practices are analyzed: creating and sharing an organizational goal, acting as a role model, encouraging creativeness, providing support for employees, and allowing employee participation in making job-related decisions. The results indicate that there is a strong relationship between top management’s actions and employees' attitudes and perceptions. 2.3.3 Coordination Challenges So far in the review of literature on strategy implementation there is evidence of some recurring themes, including coordination which is essential to ensure that people across the organisation know what to do and to ensure that they stay focused on the key targets under the everyday pressures. Strategic control systems provide a mechanism for keeping today's actions in congruence with tomorrow's goals. A1 Ghamdi (1998) replicated the work of Alexander (1985) in the UK and found for most of the firms, due to lack of coordination, implementation took more time that originally expected and major problems surfaced in the companies, again showing planning weaknesses. Alexander (1985) found the effectiveness of coordination of activities as a problem in most of the firms and distractions from competing activities in some cases. In addition 18 key tasks were not defined in enough detail and information systems were inadequate. More recent articles confirm notable barriers to successful strategy implementation about which there appears to be a degree of accord including Beer and Eisenstat's (2000) who assert that silent killers o f strategy implementation comprise unclear strategic intentions and conflicting priorities and weak co-ordination across functions. 2.3.4 Cultural Challenges One of the major challenges in strategy implementation appears to be more cultural and behavioral in nature, including the impact of poor integration of activities and diminished feelings of ownership and commitment (Aaltonen and Ikavalko, 2002). Corboy and O'Corrbui (1999), meanwhile, identify the deadly sins of strategy implementation which involve: a lack of understanding o f how the strategy should be implemented; customers and staff not fully appreciating the strategy; difficulties and obstacles not acknowledged, recognized or acted upon; and ignoring the day-to-day business imperatives. Marginson (2002) contend that strategy implementation evolves either from a process of winning group commitment through a coalitional form of decision-making, or as a result of complete coalitional involvement of implementation staff through a strong corporate culture. Organizational culture refers to the leadership style of managers - how they spend their time, what they focus attention on, what questions they ask o f employees, how they make decisions; also the organizational culture (the dominant values and beliefs, the norms, the conscious and unconscious symbolic acts taken by leaders (job titles, dress codes, executive dining rooms, corporate jets, informal meetings with employees). In Collaborative Model of strategy implementation, organisations have both 19 a strong culture and deep-rooted traditions. The challenges of successful implementation results from lack of cultivation of strong cultural values to meet the changing organizational needs. The distinction between “thinkers" and "doers" begins to blur but does not totally disappear. In organizations adopting the cultural model that emphasizes a lower level employee participation in both strategy formulation and implementation there is separation of "thinkers" and "doers". It seeks to implement strategy through the infusion of corporate culture throughout the firm. The cultural model contradicts and challenges the basic objectives from the economic perspective of a firm (Parsa, 1999). A "clan-like" (Ouchi, 1980) organisation is expected to prevail, where a powerful culture results in employees aligning their individual goals and behaviors with those of the firm. However, a high level of organizational slack is needed to instill and maintain a cultural model. This model has several limitations: it assumes well-informed and intelligent participants; firms with this model tend to drift and lose focus; cost of change in culture often comes at a high price; increased homogeneity can lead to a loss of diversity, and creativity consequently (Parsa, 1999). 2.3.5 Resistance to Change Resistance at its most obvious is a slow motion response to meet agreements or even a complete refusal to cooperate with change. It can either be intentional or unintentional. covert or overt (O'Connor, 1993). Burnes (1992) that resistance to change is a critical issue in all change initiatives because it may lead to a lack of co-operation and communication among those involved and affected by the change process. Resistance is 20 sometimes portrayed by consultants and managers as the result o f employee weakness, and individuals may be stereotyped and called saboteurs, shirkers, dinosaurs, ostriches, loony lefties, and loss o f morale, distrust, becoming self-centered, narrow-minded and so on (Cascio, 1993). Resistance to change occurs when it creates too much role incompatibility for employees. Expecting shop-floor workers to communicate with a larger number o f teams and managers in the plant will mean they have to adopt a broader role set; that is, they will have to cooperate with various groups and learn to behave and respond to different expectations. In the organizations, employees will often psychologically resist change when it involves altering their work values and self-concept; some professionals find marketing and administration duties unsatisfying when they take up time that could have been spent executing professional work (Whittington, McNulty and Whipp, 1994). Many professionals in the public and in the private sector are facing increased responsibility for marketing and administration and some of them are unsure how much of their newly defined role they should accept their reluctance to change is partly a consequence of their occupational commitment to professional work; their unwillingness to take on more duties is rarely just a case of irrational resistance (Morris and Pinnington, 1998). 21 CHAPTER THREE: RESEARCH METHODOLOGY 3.1 Introduction This chapter sets out various stages and phases that are followed in completing the study. It involved a blueprint for the collection, measurement and analysis of data. This section was an overall scheme, plan or structure conceived to aid the researcher in answering the raised research question. In this stage, most decisions about how research was executed and how respondents were approached, as well as when, where and how the research was completed. Therefore in this section the research identified the procedures and techniques that will be used in the collection, processing and analysis of data; the research design, study location, target population, sample and sampling technique, data collection and data analysis and presentation. 3.2 Research Design The study was a case study since the unit of analysis was one organization which was the Ministry o f Northern Kenya. A case study is an in-depth investigation of an individual, institution or phenomenon (Mugenda and Mugenda, 2003). The primary purpose of a case study is to determine factors that have resulted in the behavior under study. It enables a researcher to get an in-depth investigation that considers underlying issues. Since this study sought to gather in-depth information regarding the practices and challenges o f strategy implementation at the Ministry of Northern Kenya and other arid areas, the case study design deemed the best approach to fulfill the objectives of the study. 22 3.3 Data Collection In this study, emphasis was given to primary data. The primary data was collected using an interview guide. An interview guide is a set of questions that the interviewer asks when interviewing (Mugenda and Mugenda, 2003). It makes it possible to obtain data required to meet specific objectives of the study. The interviewees were the top managers and functional heads in charge of finance, risk management, information technology and operations, human resources, marketing and research division, and public affairs and communication division. The researcher sought to utilize the respondents knowledge since they were more versed with strategic issues for it is them that formulate and oversee the implementation of strategic decisions and are as a consequence experienced in that area. So as to avoid duplicity o f data obtained, the researcher picked 5 officials at the Ministry of Northern Kenya. These constituted 1 top manager 2 middle managers and 3 lower level managers. The various respondents were drawn from the various departments in the ministry, (Operations, Human Resource, Project and coordination department, and Communication Departments). 3.4 Data Analysis The data obtained from the interview guide was analyzed using content analysis. A few of the Quantitive data was analyzed using (Statistical Package for Social Sciences) SPSS. Qualitative data analysis makes general statements on how categories or themes of data are related (Mugenda and Mugenda, 2003). Content analysis is a method for summarizing any form of content by counting various aspects of the content. Content analysis is the 23 systematic qualitative description o f the composition o f the objects or materials of the study (Mugenda and Mugenda, 2003). It involves observation and detailed description of objects, items or things that comprise the object of study (Cooper and Schindler, 2003). The themes (variables) that are to be used in the analysis are broadly classified into two: factors influencing strategy implementation and challenges in strategy implementation. 24 CHAPTER FOUR: DATA ANALYSIS, INTERPRETATIONS AND DISCUSSIONS 4.1 Introduction This section provides the data analysis, interpretation and findings. The main objectives of this study were to establish the challenges of strategy implementation at the ministry of Northern Kenya and other arid areas and: to establish measures taken/areas that were demanding to overcome challenges of strategy implementation at the ministry of Northern Kenya and other arid areas. 4.2 Qualitative Analysis on challenges of strategy implementation at the Ministry of Northern Kenya The head of strategy also reported that the organization maintains a manual on how to implement the strategy. The study also found that divisional policies on implementation are updated on regular basis and also when the need arises. It was also found that the division policy were very relevant to the current company activities. All the divisions concerned have to contribute to the creation and review of policy documentation. Some or all of these departments concerned play a significant role in the management of the situation. If relevant departments have not given their endorsement for a policy, the policy is sure to experience problems during implementation. 25 4.2.1 Top Management Support The study also found from the head o f strategy that the employees, board of directors and the management were supportive o f the policy development and implementation. Having the support o f these members, the implementation process was made easier due to the teamwork and spirit and also the employees felt that they were fully accepted in the organization and therefore the implementation process was made much more effective and efficient. The head of strategy also reported that the company had the financial capacity to implement strategies formulated. He then stated that there was always a budget set aside for the implementation o f strategies and therefore the ministry had the capacity to implement the strategies formulated. The board members and management were also very committed in providing financial resources to support the implementation ot strategy initiatives as the budget for this is always set aside. It was also clear from the study that the board of directors and employees were motivated to support the strategic initiatives. If the board of directors and the employees are well motivated, they will give maxim um cooperation and support and therefore smoothening the process of strategic implementation. This is consistent with Rapa and Kauffman (2005) where they suggest that senior level managers must not spare any effort to persuade the employees of their ideas. The current organization structure was also appropriate to support the implementation of strategic initiatives. Implementing a new strategy often required new resources and skills for new activities. An organization cannot afford a mismatch between strategy and 26 structure, since a mismatch can lead to poor strategy implementation. Just as the organization's strategy needs to change with changing external environment, so must the structure change for proper strategy implementation. Once a strategy has been chosen, structure must be modified to fit the strategy. 4.2.2 Co-ordination Respondents also argued that improper coordination of the activities in the ministry leads to misunderstanding of tasks related to strategy assigned to the staff. But this human resources manager said that the presence of such a division in the ministry is always aware of its coordination assignments meant to align individual tasks in the ministry. From the study, the head of strategy reported that before implementing the chosen strategies, two processes always help. First, everyone in the Organization should understand broadly the company strategy for ease of the coordination process, and what it means for their actions. This ensures that the actions that they take day to day are geared towards the company's strategic objectives. Secondly, each individual should be charged and evaluated with undertaking key actions that will further the company's strategy. Implementation, translating strategy into action is the last and most important aspect of company strategy. If it is done correctly, you will create an Organization that is devoted to the creation of customer value and competitive advantage. Other respondents also reported that the available human resource in the organization was very capable in managing and implementing new strategic direction they possessed the necessary skills and knowledge and also they had all the necessary management skills. Due to poor coordination sometimes, most of the respondents admitted that the staff 27 sometimes disagrees on new arrangements and plans as directed by the senior managers therefore failing to achieve in some areas. 4.2.3 Communication The IT department always ensures that the right channels of communication are used. Internal memos, meeting, messaging, direct delegations, notice board, emailing; were all referred to as the various means managers get work done in the ministry. Respondents indicated that communication was a core determinant in the strategy implementation process. Where communication between employees and the managers, is effective there is effective way on the issuance of strategic directions. This finding agrees with (Miniace and Falter, 1996) where their study points out that communication is a key success factor within strategy implementation 4.2.4 Culture Respondents also reported that the ministry has staffs that come from different tribes and societies hence with diversities related to language, beliefs and traditions. The human resources manager and the project manager indicated that there is a policy in place to manage culture including sections in the main ministerial policy. Most of the respondents also indicated that culture and other determinants of culture and social beliefs are never allowed by the management to interfere with the activities related to strategies implementation in the ministry. This results are in harmony with Marginson (2002) contend that strategy implementation evolves either from a process of winning group commitment through a coalitional form of decision-making, or as a result of complete coalitional involvement of implementation staff through a strong corporate culture. 28 4.2.5 Resistance to Change The staffs were prepared for organization change as they were trained in advance on the importance o f organization change, the top management and the board of directors also supported the organizational change. According to the human resources manager, whenever some resistance to change is experienced, the management in the ministry are always ready to engage consultants for restructuring process. On resistance, most of the respondents admitted that the staff sometimes disagrees on new arrangements and plans as directed by the senior managers therefore failing to achieve in some areas. Bumes (1992) is consistent with this phenomenon where he states that resistance to change is a critical issue in all change initiatives because it may lead to a lack of co-operation and communication among those involved and affected by the change process. 4.3 Areas that the Ministry of Northern Kenya need to give more attention in order to enhance an effective strategy implementation process The researcher also requested the respondents to suggest the areas that ministry of northern Kenya Management need to give more attention in order to enhance an effective and an efficient strategy implementation process. From the findings, the respondents suggested that the top managers in the ministry of northern Kenya should support the strategy implementation process, the companies should also involve the stall in the strategy implementation process, there should be continuous monitoring ot internal and external (environment) if the strategy implementation process is to be made much more effective, the companies should also create a strategic atmosphere that foresters a team spirit during the process and also clear direction and purpose of the implementation 29 process should be well stated. These suggestions are of the same opinion with the Seven (7s) Model of the Strategy Process which posits that Managers, need to take account of all seven of the factors to be sure o f successful implementation of a strategy- large or small. They're all interdependent, so if you fail to pay proper attention to one of them, it can bring the others crashing down around you 30 CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 5.1 Introduction The following chapter presents the summary, conclusions and recommendations of the study based on the study objectives which were to establish the challenges of strategy implementation at the ministry of Northern Kenya and other arid areas and; to establish measures taken/areas that were demanding to overcome challenges of strategy implementation at the ministry of Northern Kenya and other arid areas. 5.2 Summary of Findings From the study, the researcher found that divisions maintained a policy manual on how to implement divisional policies. Maintenance of a policy manual helped in updating the implemented policies from time to time or when need arises, it eliminated the need to dedicate valuable time to researching and collecting information on implementation of strategies, it enhanced selection o f appropriate strategies, it helped in revising and fine- tuning the implemented strategies and also the divisions maintained Policy Manual to eliminate the guesswork. The study also found that the strategy implementation in the department was updated regularly. Most of the functional heads also reported that the strategy implementation in their departments was updated annually. 5.2.1 Top Management Support The researcher also found from most of the respondents (75%) that the divisions had financial capacity to implement the departmental strategies formulated. The head of strategy explained that there was always a budget set aside for the implementation of 31 strategies formulated and therefore there was financial capacity in the divisions to implement the departmental strategies formulated. It was also clear from the study that the most important factor in supporting strategy implementation in the organization was the involvement o f superiors. Involvement of the staff members and involvement of board of directors was also found to be important in supporting the strategy implementation. The head of strategy explained that the management, board of directors and the employees were supportive of the strategy implementation process. The made the process much more easy due to the teamwork and spirit and also the employees felt that they were fully accepted in the organization and therefore the implementation process was made much more effective and efficient. The study also established that the board of directors and the employees were motivated in order to support the strategy implementation process. This was because by motivating the board of directors and the employees they will give maximum cooperation and support and therefore smoothening the process of strategic implementation. The respondents therefore suggested that the areas that Ministry of Northern Kenya need to give more attention in order to enhance an effective and an efficient strategy implementation process that the top managers in the ministry should support the strategy implementation process, the companies should also involve the staff in the strategy implementation process, there should be continuous monitoring of internal and external (environment) if the strategy implementation process is to be made much more effective, the companies should also create a strategic atmosphere that foresters a team spirit during the process and also clear direction and purpose of the implementation process should be 32 well stated. Therefore, top managers must demonstrate their willingness to give energy and loyalty to the implementation process which demonstrable commitment becomes, at the same time, a positive signal for all the affected organizational members (Rapa and Kauffman, 2005). 5.2.2 Communication Respondents indicated that communication was a core determinant in the strategy implementation process. Where communication between employees and the managers, is effective there is effective way on the issuance of strategic directions. This is true as Falter (1996) asserted that communicating with employees concerning issues related to the strategy implementation should be frequently done. The study also argued that one of the reasons why strategy implementation processes frequently result in difficult and complex problems - or even fail at all - is the vagueness ol the assignment ot responsibilities. 5.2.3 Coordination Challenges The human resource available in the organization was also capable in managing and implementing as part of the coordination activity on the new strategic direction as they had the necessary management skills required in managing and implementing the strategic direction. Effective coordination always accelerates strategy implementation. A1 Ghamdi (1998) replicated the work of Alexander (1985) in the UK and found for most of the firms, due to lack of coordination, implementation took more time that originally expected and major problems surfaced in the companies, again showing planning weaknesses. 33 5.2.4 Cultural Challenges Finally, the study established that most of the respondents also indicated that culture and other determinants of culture and social beliefs are never allowed by the management to interfere with the activities related to strategies implementation in the ministry. Marginson (2002) confirms in the collaborative Model o f strategy implementation, that organisations have both a strong culture and deep-rooted traditions. The challenges of successful implementation results from lack of cultivation of strong cultural values to meet the changing organizational needs. 5.2.5 Resistance to Change On resistance, most of the respondents admitted that the staff sometimes disagrees on new arrangements and plans as directed by the senior managers therefore tailing to achieve in some areas. This confirms with the literature by Bumes (1992) that resistance to change is a critical issue in all change initiatives because it may lead to a lack of co­ operation and communication among those involved and affected by the change process. 5.3 Conclusions of the study. From the study, the researcher concluded that the challenges that influence strategy implementation in Ministry of Northern Kenya were financial capacity of the organization, top management support, involvement of board of directors and the employees in the strategic implementation process, appropriate organization structure and also motivating them and capability of the human resource in the organization in managing and implementing new strategic direction. The study also concluded that the effect of strategy implementation and performance in the ministry was that the need to 34 attain a competitive advantage over other ministries dependent on strategy implementation and performance. 5.3.1 Top management The study concludes that top management support is critical in the strategy implementation process. Without the board members, managers (top, lower and middle level) the process o f strategy implementation cannot be achieved leading to its failure. 5.3.2 Communication The study also concludes that effective communication process must be put in place if the ministry or any other organization has the interest of its strategy success. A situation where management staff and other employees are free to interact always creates an atmosphere for good communication where every problem or progress can be addressed. 5.3.3 Coordination This study concludes that the coordination of activities in the ministry is effective since every department is supportive of the other and that the human resource management department is the overall responsible of the coordination ot the ministry activities. 5.3.4 Culture The study concludes that culture can sometimes be a barrier to the strategy success of any organization. The study also concludes that culture related to language, practices, beliefs, traditions should well be managed by the organization to avoid crisis related to them. Staffs only adopt one culture of the organization which creates a competitive advantage as well as enhancing organizational performance respectively. 35 5.3.5 Resistance to change The study also concludes that resistance to change sometimes leads to a healthy workplace and may move a long way to enhancing strategy implementation success. Unhealthy resistance to change like illegal strikes by the staff may lead to failure in strategy implementation success. 5.4 Recommendations for Policy and Practice. From the discussions and the conclusions, the researcher recommends that for an efficient and effective implementation process senior management must at all levels be involved and committed throughout the process, departmental employees should be provided with a sound understanding of the forthcoming changes and o f the new way ot understanding, preparation must be done as much as possible before embarking on full implementation; and also the organization must ensure that there are sufficient resources for the transition and that the top manager and the board of directors are empowered to make the necessary decisions. The study also recommends that the communication process be reinforced with a policy that will govern the activities related to enhance the implementation o f strategies in the ministry. 5.5 Limitations of the Study. This study was limited only to 5 staff in the Ministry o f Northern Kenya. 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Journal o f Marketing Research, Vol. 30 pp.405-21. 45 APPENDIX 1: LETTER OF INTRODUCTION Dear Respondent; I am a master's student at the University of Nairobi pursuing a degree course in business administration (MBA). As part of my course work. I am required to undertake a research study on “ Challenges of strategy implementation in the Ministry of Northern Kenya ". Kindly feel free to participate in this study as you provide the relevant information pertaining the research study. Your responses will be treated with utmost confidentiality and for academic purposes only. Thank you in advance Timothy Mwangi 46 APPENDIX II: INTERVIEW GUIDE Name (Optional) 1. Department/Division Finance [ ] Risk Management [ ] Information Technology [ 1 Operations [ 1 Human Resources [ 1 Marketing and Research Division [ ] Public Affairs [ ] Communication Division [ ] 2. Level o f Education Masters [ ] Undergraduate [ ] Secondary [ ] Any other, (please indicate) 47 3. How does your organization go about implementing the chosen strategies? 4. How relevant is the ministry of Northern Kenya s policies to current activities? 5. What is the most important thing when implementing strategies in the organization? 6. How often are the policies on strategy updated in your department? 7. Does your division maintain a policy manual on how to implement strategies? Please elaborate 8. What are the important factors supporting strategy implementation Ministry ot Northern Kenya? 9. Please indicate the area that the management need to give more attention in order to enhance an effective and an efficient strategy implementation process 10. How are the following supportive of policy development and implementation? Employees Board of directors The management 48 11. How appropriate is the current organizational structure to support the implementation of strategic initiatives? 12. How does commitment affect strategy implementation at Ministry o f Northern Kenya? 13. What could be the major cause o f lack of commitment of the people involved in strategy implementations Ministry of Northern Kenya ? 14. Which areas of strategic management are affected by challenges ot commitment amongst the participants of strategy implementation at Ministry ot Northern Kenya? 15. What causes delays in communicating with employees concerning issues related to the strategy implementation? 16. In your own opinion, how does coordination of activities at feet strategy implementation Ministry of Northern Kenya? 17. How does the organizational culture affect strategy implementation in the organization? 18. Which specific issues about organization culture pose a challenge in GAPP strategy implementation at Ministry of Northern Kenya? 19. How does the Ministry of Northern Kenya deal with challenges of organizational culture in the affecting strategy implementation process? 49 20. Suggest the possible measures that could also be implemented to counter the challenges of strategy implementation at Ministry of Northern Kenya? 21. Does this organization experience resistance to change in any way? Describe. 22. What are the various causes of the resistance? 23. What strategies have been put in place to control resistance to change in this organization? THANK YOU 50