Challenges in the formulation and implementation of strategy: The case of Kenya Sugar Board
Abstract
Kenya Sugar Board (KSB) replaced the defunct Kenya Sugar Authority
(KSA) on April 1, 2002 with the mandate to regulate, develop and
promote the sugar industry in Kenya. In an effort to meet these
mandates, management decided to formulate the 2004 – 2007 strategic
plan to act as a tool towards this end. The development was handled by
senior managers and representatives of the Board. Implementation of the
strategy did not succeed leading to its premature review and
development of the 2007 – 2012 strategic plan.
This research was conducted to establish and document the challenges
encountered during the formulation and implementation of the 2004 -
2007. Additionally, any related issues that occasioned the subsequent
strategy developed from 2007 were to be established.
In carrying out this research, both primary and secondary data was
used. Primary data was collected by the researcher using an interview
guide through personal interviews of senior managers. Secondary data
was gathered from reviewing both the 2004 - 2007 and 2007 - 2012
strategic plan documents.
From the research, it was established that KSB encountered seven major
challenges during the formulation stage. These ranged from
organisational culture, government policies, adequacy of resources,
resistance to change, stakeholders support, link between organisational
and departmental strategies to communication. During implementation,
challenges encountered included lack of focussed leadership,
organisational structure, strategy-culture relationship, government
policies, support from Board of Directors, allocation of resources and
lack of a monitoring and evaluation framework.
While the subsequent review of the 2007 – 2012 addressed most of the
challenges earlier experienced, the research found that implementation
of this new strategy was also facing a number of challenges. These
include inadequate resources and their allocation, management
commitment and lack of adherence to the implementation matrix.
Preparation of budgets is still not linked to the strategy while quarterly
review meetings are not held. Its success is doubtful.
Publisher
University of Nairobi
Description
MBA Thesis