| dc.description.abstract | Celtel Kenya Limited, which initially operated under the name KenCell Communications,
underwent a change in ownership in May 2004. Another acquisition of part of its shares
took place in March 2005 when Kuwait based Mobile Telecommunication Company
(MTC) bought 85% of Celtel International's shareholding in the company. With these
alterations of ownership taking place, the company underwent a number of changes.
This research paper thus sought to establish the strategic change management practices
used at Celtel Kenya Limited after the transitions and the challenges the management
faced as it went about implementing change in the organization. The research considered
the period commencing May 2004 and running until December 2005.
The research established that the changes introduced in the organization affected its
structures, culture, human resources, systems, resource allocation ratios, corporate
governance, technology, products and services as well as its market share. While
implementing these changes in the organization, the new management's goals were two
fold, that is, to challenge the existing ways of conducting business and to drive step-level
improvements in operating performance.
As it went about implementing changes within the organization, the changes presented
some new challenges. Some of these challenges included, resistance to change from the
employees, fear and anxiety of the employees regarding the changes, power sharing
ratios, deficient leadership skills; a culture of individualism and the challenge of keeping
the organization's strategy and purpose of existence in focus.
To overcome these challenges, the management utilized teamwork, entrenched a culture
of commitment and performance and used communication and training, to drive the
changes within the organization. To measure the degree of success of the changes, the
management watched variables such as, the number of new subscribers, the number of
Base Transceiver Stations (BTS) being rolled out, Average Return per User (ARPU) as
well as the Eamings Before Interest Tax, Depreciation & Amortization (EBITDA).
The changes that took place within the organization were still at their infancy stages and
were ongomg. However Celtel Kenya Limited management was optimistic that the
changes would bring about more additional positive benefits to the organization in the
long run and give the company a large competitive edge. The management had already
registered short-term wins with the change program including successful re-branding of
the company's products and services, an increase in the number of new subscribers by 52
per cent to two million, a rise in the ARPU variable reflecting improved company
performance, realization of 1.3 billion after-tax profit in 2005 as well as creation of
challenging and rewarding jobs and careers for the employees. The management was
thus going to continue implementing positive changes in the organization and refine those
practices it had already entrenched. | en |
