The relationship between strategic planning intensity and financial performance of Commercial Banks in Nairobi
Abstract
This was a survey on the relationship between strategic planning intensity and financial
performance in commercial banks in Kenya. The collected data was analyzed and
interpreted in line with the aim of the study. The respondents were two senior managers,
preferably the Chief Executive Officer/strategic planning manager and the
finance/capitalization manager ("team leadership") of these banks. Out of the eighty-eight
(88) respondents to whom the questionnaires were administered, only sixty - two (62)
respondents in the commercial banks in Kenya responded.
Firstly, it was found that, strategic planning is critical to a bank's financial success, but it
is critically complex looking at the level of expertise that exists in the bank to perform
strategic planning. Secondly, the elimination of duplication of effort from the bank;
making greater use of paraprofessionals; reducing overhead costs; and dealing with
underperfonners are the managerial factors that moderate the relationship between
strategic planning intensity and financial performance of the bank. The management's
goal is to be perceived by clients as the quality leader in the areas in which they practice.
Thirdly, it was found that factors that the commercial banks have given the best shot as
some of the most practical ways to become more valuable to their clients than their best
competitors are: staffing projects with innovative ways that render extra value; being
better at accumulating, disseminating/building on accumulated expertise and experience.
Fourth, it was found that the business processes of the commercial banks that the banks
are dominant in to become more valuable to their clients than their best competitors are
creating innovative solutions to clients' problems; turning inquiries into assignments
("sales process" effectiveness); developing and growing new partners from junior ranks;
disseminating and sharing skills and knowledge among stakeholders.
Lastly, it was found that the banks' operating environment factors, which in turn have
some influence on the banks' strategic planning process and in achieving their goals on
excellent level are: perception as quality leader in the areas of practice; attraction and
retention of a fair share of the best individuals.
Citation
Masters Of Business Administration (MBA) DegreePublisher
University of Nairobi School of Business
Description
A Management Research Project Submitted in Partial Fulfillment of the Requirements
for the Award of the Degree of Master of Business and Administration (MBA), School
of Business, University of Nairobi