Strategy control and evaluation at the Kenya Revenue Authority (KRA)

Abstract

The objectives of the study were (1) to establish strategy evaluation and control practices at KRA and (2) to determine the factors that influence successful strategy evaluation and control. The study surveyed views managers of departments and employees in each of the departments at KRA. The results were analyzed using content analysis. The study is a case study. This method was chosen because it was to enable the researcher to probe and obtain an in-depth interview of a case such as KRA and provide valuable insights to a phenomenon that may be vaguely known and understood. The methodology used in this study involved personal interviews to gather data from the selected top managers in KRA and also follow -up face to face or telephone interviews to increase the response rates. The findings of the study showed the majority of the people involved in strategy evaluation have worked at KRA for at least nine years which implies that they understand well the systems and processes. The principal method used for strategy evaluation and control is special team/task force approach. It was used by the managers in order to gain support for the strategy being implemented by constantly communicating with all employees and explaining the merits and the viability of the strategy. The study also showed that the most critical success factor is resources in terms of finances and qualified personnel. Indeed, no strategy evaluation and control can be done without adequate resources. To assure success early in the process, implementing managers demonstrated how KRA's organization practices can be made better by meeting individually with people believed to be critical to the successful implementation of the new strategy and allowing increased employee participation through delegation of

activities and responsibility for such activities. The objective was to seek their views about the new strategy, obtain their commitment and minimize resistance or sabotage. It was also noted from the study that the use of rewards was the least employed tactic to achieve success. The framework for strategy evaluation and control at KRA was characterized by high outcome measurability and perfect task programmability. Therefore, the most effective form of control was behavior or outcome control. At KRA though both control mechanisms were used, performance control was the most dominant. Perhaps this reflects the use of performance contracting implemented by all government institutions. The major outcomes of the strategy process are not only observable but can also be reliably measured.