A Study of Performance Contracting as a Tool for Strategy Implementation in Catering and Tourism Development Levy Trust, Kenya
Abstract
Once an organization develops its strategy, it is important that the strategy is effectively
implemented to achieve the desired results. Strategy implementation is the process of
transforming strategic intentions into actions, then actions into acceptable results. Different
organizations use different approaches and tools to operationalized and implement their
strategies. This study laid focus on determining an analyzing the use of performance
contracting as a tool for strategic plan implementation in Catering and Tourism
Development Levy Trustees (CTDLT). Among studies that have been done on strategy
implementation, none has focused on strategy implementation within the context of
performance contracting.
The study revealed that CTDLT practices formal strategic planning giving rise to a
strategic plan on the basis of which performance contracts are negotiated and signed at
various levels in the organization. It was established that performance contracting has been
used as an effective tool for strategic plan implementation at CTDLT. Among other things
performance contracting has served as an engine in driving CTDLT’s goals and enhanced
clear understanding of the nature of effort required to attain the required levels of
performance through effective translation of strategies into action, and action into desired
results. It has also enhanced the understanding of the obligations for each of the signatories
and therefore acts as a basis of attributing responsibility for success or failure in a fairly
transparent and just manner. Further still, performance contracting has enhanced the
alignment of CTDLT’s strategy with various internal organizational elements like the
structure, culture, resources and capabilities.
However, it was revealed that implementation of performance contracting has not been
100% effective because of some challenges. These challenges relate to the unpredictability
of the environment in which implementation is taking place, the content of the
performance contract in terms of targets and measurement criteria, timeliness in its
implementation, resistance to its adoption and the changes required for its effective
implementation, and its inclusiveness and/or coverage.
Publisher
University of Nairobi
Description
MBA Thesis