Factors Influencing Strategy Implementation at Progressive Credit Limited in Kenya

Abstract

Kenya has experienced a tremendous growth of microfinance banks which has ignited competition. This has necessitated microfinance banks to adopt response mechanisms to cope with the changes in the external environment in order to execute their role and functions effectively. Progressive Credit is one of the fastest growing microfinance banks in Kenya. To realize its strategic goals, strategy implementation is one of the ways of responding to changes in the external environment like competition. The main objective of this study was to determine the factors influencing strategy implementation at Progressive Credit Limited in Kenya and the ways in which the institution has addressed the factors that affect strategy implementation. To achieve the objective of the study, a case study of Progressive Credit was conducted. The interviewer managed to interview all the interviewees who were the operational manager, the finance manager and the marketing manager at Progressive Credit Limited Kenya. Data was collected using an interview guide and data analysis was done using content analysis. The study found that the key challenges that hindered effective implementation of strategy at Progressive Credit were as follows: lack of adequate finances and resources to support the process of strategy implementation. The bank did not have sufficient capacity and resources to successfully implement strategy. The other challenge was lack of commitment by the top management; they failed to allocate adequate time to ensure that the strategy was a success. The other challenge was resistance to change which was brought about by failure to involve all the employees in key decisions. Last but not least, was lack of a strategic plan to guide, give directions, allocate budget and schedule all the activities involved in strategy implementation in each and every stage. The study further concludes that the bank the ways of dealing with these challenges is allocating adequate financial resources and human capital to support strategy implementation. The bank should have a committee that is mandated to implement strategy and regularly update the top management on the progress of implementation. The study was limited to scope; it only concentrated with Progressive Credit Limited therefore the findings obtained in this study cannot be however used to make generalization for all microfinance banks in Kenya. These findings can only be used for comparative purposes and not direct application to another sector. This study used an interview guide which is specifically based on the interviewees’ judgment and thinking which might be biased or untrue depending on the mood of the interviewee and their understanding of the questions. The interview guide has no control over this since it allows the interviewee to express their mind without limits. Future researchers interested in this field of study should consider doing a comparative study using a structure questionnaire then findings can be compared upon which reliable conclusion can be made.