Strategy formulation: a case study of community development trust fund (CDTF)

Abstract

Strategy formulation is the development of long-term plans for the effective management of environmental opportunities and threats in light of the organization's strengths and weaknesses.To achieve an effective strategic fit with the environment, strategies should be formulated in a partnership manner that involves consultation and participation. Strategy formulation is thus a social and political process in which interest groups with often-conflicting interests and bargaining powers interact. The process should involve key stakeholders who influence and share control over the organization's resources. The entire strategy formulation process must have the blessing and active participation of top management and senior managers should playa leading role in the exercise. Strategy formulation is part of the wider strategic planning process. The study focused on strategy form\Jlation process using a case study of -. Community Development Trust Fund (CDTF). Chapter one has reviewed the challenges Kenya faces in implementation of development programmes in conjunction with major donors. The specific objectives of the study were to establish the various challenges that CDTF has faced in its attempts to formulate effective strategies to meet its mission and to also document the strategy formulation processat CDTF. (v) The literature review has focused on the concept of strategy and its importance in the organisation. The section has also presented an evolution of strategic management and description of the strategic planning process. Various approaches to strategic planning, its value and challenges have also been documented. The methodology applied in the study has been presented in chapter three. Qualitative primary data was collected by conducting interviews with 6 senior officials of CDTF. The findings of the study reveal that the strategies adopted were all geared towards the mission and vision, and that there is a direct relationship between the organization's mission statement and the strategies adopted. The major challenges faced by CDTF in formulating its strategies were found to include weak governance and management systems in the public sector, corruption, inherent weaknesses of the Ministry of Planning, slow disbursements and bureaucracy by the European Union (EU). The seconded technicat-advisors from the EU were also reported to have limited expert knowledge and experience than the CDTF officials. The study recommends that strategy formulation should precede strategy implementation at CDTF, and there should also be sufficient, timely and flexible allocation of resources to finance the programmes.