Factors affecting strategy implementation at family bank limited, Kenya
Abstract
The challenges of the modern business environment and fast changing global economy
demands high productivity speed and flexibility for organizations that seeks to thrive. In
order to achieve the required efficiency and effectiveness, organizations must change
their structure strategically. Strategy which is a fundamental management tool in any
organization is a multi-dimensional concept that various authors have defined in different
ways. It is the match between an organization‟s resources and skills and the
environmental opportunities as well as the risks it faces and the purposes it wishes to
accomplish. The objective of this study is to analyze the factors affecting strategy
implementation at Family Bank Limited, Kenya. The study was designed as a case study
and primary data was obtained through interactive interviews of senior management from
key divisions, middle level managers and staffs in marketing, Human Resource, Finance,
administration, operations and customer relations departments at Family Bank Limited.
The qualitative data collected was analyzed using content analysis technique. The study
established that strategy implementation at Family Bank is mainly influenced by
commitment of the top management, communication process, coordination of activities
and organizational culture. The study also established that Effective communication is
important for successful implementation of strategy at the Family Bank. Communication
helps the managers to perform the basic functions of strategic management which include
planning, organizing, motivating and controlling. Further, the study established that
coordination helps to improve the efficiency of operations by avoiding overlapping
efforts and duplication of work. Integration and balancing of individual efforts provide a
smooth and harmonious team work and organizational culture influences leadership style
of managers, understanding of strategy implementation, identification of difficulties and
obstacles during implementation, how managers make decisions and the dominant values,
beliefs and norms. In conclusion, coordination enables an organization to rake optimum
use of its resources. Thus, a well-coordinated organization can attract, retain and utilize
better personnel. This improves human relations by reconciling individual and
organizational objectives, helps to ensure unity of action in the face of disruptive forces
and fosters loyalty and commitment among employees. The study recommends that top
managers should ensure that all stakeholders are involved in strategy implementation;
enhance the interest of all stakeholders in strategy implementation; always give direction
and guidance through different phases of strategy implementation; prioritize their
objectives, put resources at employees' disposal, explain the processes and, above all,
transmit the vision to the implementing team; must be able to pick out the people and
teams best able to move the project forward; encourage the staff during strategy
implementation. The study also recommends continuous monitoring of strategy
implementation, development of an integrated communications plan, the need to build a
culture that supports strategy implementation and further research on strategic
management approaches adopted by banks in Kenya. The study recommends further
research on strategic management approaches adopted by banks in Kenya. The further
research will complement the findings of this study by providing information on how
different management approaches influence strategy implementation in banks.
Publisher
University of Nairobi