Factors affecting strategy implementation at family bank limited, Kenya
Kibet, Annette C
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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.
University of Nairobi