| dc.description.abstract | Between February and December 2010, Kenya Electricity Generating Company Limited
implemented Enterprise Resource Planning (ERP) strategy in quest for: best industry
practices, cost cutting, high efficiency and instant access to data. The objective of this
study was to determine challenges of implementing the ERP strategy at the Kenya
Electricity Generating Company Limited. The research was conducted through a case
study design. In-depth interviews were conducted using an interview guide with senior
officials drawn from each division in which KenGen is functionally structured. A
conceptual and qualitative content analysis method was used for data analysis, findings
were presented in narrative form. The study revealed that ERP implementation at
KenGen was completed on schedule which helped prevent an escalation of ERP
implementation costs. ERP usage rates were sluggish from onset but forceful intervention
of divisional directors and managers managed to somewhat reverse the pattern. Nine out
of ten interviewees indicated that ERP usage is yet to hit peak and that about eighty
percent of employees lack mastery of ERP. Study findings indicated that ERP
implementation challenges were: organizational structure incompatible with ERP, nonsupportive
organizational culture, inadequate allocation of resources, resistance to
change, ineffective communication, high implementation costs, lack of incentives and
reward systems and inadequate user training and education. These challenges were
broadly categorized as institutional, behavioral, internal and external. Perhaps the
challenge with greatest impact on ERP implementation was inadequate allocation of
resources especially technological resources. While compressing implementation
schedule may have worked well to control costs, it adversely impacted on the duration
needed by the consultant to train staff. Therefore, there was ineffective and inadequate
transfer of troubleshooting & problem solving skills from the consultant to super-users
and by extension employees. This technological lapse left users ill equipped to make the
most use of ERP. Consequently most staff are weakly equipped to handle technical
challenges, the resulting low ERP usage has stood on the way of KenGen realizing the
benefits from ERP implementation.
This study recommends cost effective initiatives to realize effective training and capacity
building such as active involvement of super-users in KenGen Areas to conduct hands-on
refresher trainings aimed at broadening and deepening user abilities; training to provide
materials to facilitate practice and learning. Embedding incentives and reward systems
within ERP implementation by way of recognizing and rewarding outstanding
performance was identified as key to spur ERP usage and motivate staff into active use of
ERP. | en |
