Strategic Management Practices and Performance of the Institute of Certified Public Accountants of Kenya

Abstract

The purpose of the study was to examine the strategic management practices adopted by the Institute of Certified Public Accountants of Kenya and ascertain how these practices have influenced the performance of the institute. This study was guided by the following specific objectives: to determine the strategic management practices of ICPAK and to examine the influence of strategic management practices on the performance of ICPAK. Case study was the research design that was adopted by the study and interview guide was used to collect the primary data. The researcher interviewed two members of the finance and strategy committee, two members of the public policy and governance committee and two members of the research and development committee of the institute. Content analysis was used by the researcher in data analysis to help in classifying data and evaluate how the concepts interrelate. The study established that the Institute has adopted strategic management practices in relation to environmental analysis, strategy formulation, execution and evaluation. The institute also has a written vision and mission which guide it in developing its corporate strategy. The study established that the strategic planning process of the institute is participatory, and it involves a lot of consultations with different key players in the institute. The study found out the implementation of the strategic plan was conducted by the senior management team based on the weekly, monthly, quarterly and annual reports from the heads of departments. Furthermore, the study established that adoption of the strategic management practices had a positive influence on the performance of the institute. The key organizational performance indicators that have been used for determining the performance level of the institute are the mandates assigned to it through the enabling Act. Findings from the study show that strategic planning at the institute begins from the top level, driven by the members of the council and senior management and who are similarly the main members of the public policy and governance committee. These formulate objectives and lay out key priorities basing on the available resources and the external conditions that have an impact on the organization. These objectives are translated into measurable goals that are assigned to various departments. Monitoring and performance control is done through periodic reports that are submitted to the finance and strategy committee for evaluation and recommendation for corrective action in case the performance does not meet the expectations. Substantial costs incurred in the formulation and implementation of the strategy are mainly due to research and dissemination of information to the stakeholders as well as to the public.