| dc.description.abstract | Kenya commercial Bank Group Ltd has undergone major transformation for the past 10 years in an attempt to streamline its business activities and operation in order to improve efficiency and optimize profits for its shareholders. The objective of this study was to establish the relationship between strategy and structure. To achieve this objective, case study was used and it involved in-depth interviews with the senior managers of KCB covering the restructuring process that has taken place from the early years of 2000 to date through a prepared interview guide. Secondary data was collected was sourced mainly from KCB newsletters and cascades.
The study established that during the earlier restructuring process of 2000, there was no evidence of strategy influencing structure. The restructuring of 2002 was largely successful due to transformational CEO who initiated major turnaround that involved adapting adequate strategies and matching them with elaborate structures. In 2011 the bank initiated transformation project and invited the Mckinsey consultants to help in aligning its strategy and structure. The study also found that even though there is evidence of planned strategy, most strategies were emergent .
The observed slight lag between the strategy and structure can also be attributed to the cost implications of strategy implementations and the complexity of the structure brought about by the size, discrepancies in government regulations in various subsidiaries and technological challenges. In conclusion for a successful strategy structure alignment, organization should take in consideration the impact of intervening variables | en_US |
