Strategy implementation at Kenya Electricity Generating Company (KENGEN) Ltd
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 strategy implementation process at KenGen. It sought to
establish the practices adopted by KenGen in strategy implementation. It also sought to establish
the challenges encountered by KenGen in implementing its strategies. 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). The results revealed the challenges of strategy implementation at KenGen as well
as measures to overcome the challenges. The challenges were found to be unique to that industry
environment, a fact that fitted to the contextual argument. It was found that KenGen was playing
a proactive role in addressing the existing implementation challenges.
It is recommended that KenGen should continue driving strategy implementation through the biweekly
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. This is like asking for a self evaluation. Second, there was a constraint of
availability of informants due to engagements such as leave of absence, training, or fieldwork.
Some potential informants, being busy top level executives, were not available within the time
frame of the research work.
Further research is suggested to survey strategy implementation across several power generating
firms to identify the aggregate position in the power industry. 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.
Sponsorhip
University of NairobiPublisher
School of business