| dc.description.abstract | The process of strategy implementation faces many challenges leading to most
organizations failing to successfully implement their strategies. The objective of this
study therefore was to establish the challenges faced by Agricultural Finance Corporation
in the implementation of strategic changes and how the corporation has responded to
those challenges. This was done using a case study and data was collected from the
managers of the corporation through an interview guide. The senior managers were the
target since they are better placed to provide information the researcher was interested in.
The data obtained from the interview guide was analyzed using content analysis. From
the findings, all the managers are aware of the overall business strategy of the corporation
and are involved in its implementation. This shows that the management is committed to
the strategic direction itself and this is the most important thing when implementing a
strategy. It was found out that the major challenge Agricultural Finance Corporation
faces is the poor strategy implementation. Despite the well layout strategies, no team is
charged with the implementation of the strategies. Formulated strategies may fail if
implementation is not effectively and efficiently done. Without proper implementation,
even the most superior strategy is useless. The process of strategy implementation faces
many challenges leading to most organizations failing to successfully implement their
strategies. Most managers had a feeling that there is need to involve the employees who
are directly and critical to strategy implementation during formulation of the strategies.
This is to ensure that implementation is done in accordance with the objectives of the
strategy formulation. Failure to involve implementers at the formulation stage has been a
major problem that cannot be ignored. In most cases where strategies fail, implementers
did not have an input at the formulation stage. Another challenge Agricultural Finance
Corporation faces is communication of their strategies to the staff. From the respondents,
some members of the staff are not aware of the corporation strategies. Even though
studies point out that communication is a key success factor within strategy
implementation, communicating with employees concerning issues related to the strategy
implementation is frequently delayed until the changes have already crystallized. It is
important to institute a two-way-communication program that permits and solicits
questions from employees about issues regarding the formulated strategy. The processing
of loan in Agricultural Finance Corporation takes long of up to three months compared to
other financial providers. This has led to many farmers seeking financial services from
other lending institution thus reducing the customer base of the corporation. Agricultural
credit delivered through AFC faces challenges like: policy environment, operational
prudency and poor lending practices. The study concludes the since Agricultural Finance
Corporation operates in a complex and a highly regulated environment, it must improve
efficiency in loan processing, capacity building to handle the dynamic environment
through training of the managers and seminars to share experience, employment of new
technologies and staff motivation. The study recommends that formulation and
implementation need the involvement of employee in all the stages from strategy
formulation to implementation, evaluation and monitoring of strategy implementation
and to link performance to a reward system | en_US |
