Strategy Implementation Challenges at Commercial Bank of Africa, Kenya

Abstract

Organizations are faced with challenges of strategy implementation. Despite the experience of many organizations, it is a challenge to turn strategies and plans into individual actions, necessary to produce a great business performance. The study aimed at determining the challenges of strategy implementation at Commercial Bank of Africa, Kenya. The study is important to policy makers; the findings of this study would be important to strategic management bodies in various ministries in formulating policies that govern strategy implementation. To the academicians the study contributes to the body of knowledge which benefits scholars and researchers and simulate further research in this field of strategy implementation. The study was guided by the following theories; Institutional theory, Resource-Based View Theory and Stakeholders Theory. This research was conducted through a case study in analyzing challenges of strategy implementation at Commercial Bank of Africa, Kenya. A survey was deemed to be appropriate for this study because it brought out the unique challenges that impact strategy implementation. Primary data was collected using an interview guide which was administered to retail managers, branch operations managers, customer experience officers and private banking officers of Commercial Bank of Africa or their equivalent in Nairobi branches. An interview guide was used as it enables oral administration of questions in a face-to-face encounter therefore allowing collection of in depth data. Descriptive statistics is a technique used in presenting and organizing data that include: tabulation, diagrams, graphs and certain numerical procedures all which aim at summarizing the material in a form which display its distinctive features that aid analysis. The study found that strategy implementation process at Commercial Bank of Africa, Kenya, is faced with numerous challenges including, poor organizational structure, inadequate finances, time and human resources, bureaucracy in organizational structure and culture. Strategy formulation process forms the direction and foundation for smooth implementation of organizations strategic plan. Strong culture promoted the implementation of strategic plan. Resource allocation is a central management activity that allows for smooth strategy execution. The study recommends that banks should involve and communicate to all stakeholders especially employees when formulating clear strategic plan that provides vision and mission, identifies the organization’s external opportunities and threats, determines internal strengths and weaknesses, and establishes long-term objectives to follow.