Strategy and Structure Alignment at Barclays Bank of Kenya

Abstract

Strategy and structure alignment happens through various processes. One process that insures alignment between the strategy and structure is the flow of information. Within a typical organizational structure the flow of information moves vertically or horizontally. The key changes in the banking sector have led to strategy and structure alignments. These are changes in the regulatory framework, declining interest margins advanced technology, competition, increased customer demand and product choice. This research was carried out to examine how Barclays bank of Kenya has aligned its strategies and structure over the last few years in order to achieve its objectives. The research was a case study of Barclays bank of Kenya, a multinational bank. The researcher used an interview guide as the primary data collection instrument. The interview guide was administered using face to face interviews to the departmental heads and senior managers at Barclays Bank of Kenya. Secondary data was obtained from newsletters and email cascades. Data collected was analyzed using content analysis. The study found out that strategy and structure alignment process at Barclays bank of Kenya was largely successful due to transformational processes and chief Executive officer who initiated major turnaround strategies that involved improved customer service, expansion to new regions, operation cost reduction, restructuring, crafting of new vision of LIMME (Lives Made Much Easier) and new mission of being the ‘Go-to’ bank by 2015 as well as outsourcing of non core activities. The study recommends that Barclays bank should engage in more cost reduction as a response to its competitor’s strategy whose products are much cheaper and also the bank should think of sourcing for cheap labour. The government should also reduce some of the regulatory measures to give the industry the power to regulate itself since the industry is heavily regulated. Further research should be undertaken in other financial institutions to test their strategy and structure alignment. A replica study to be carried out, targeting employees in countries where Barclays African businesses and ABSA operations existed before the merger. The study was limited in that it concluded respondents from one company and conclusions drawn may not be a representative of the whole industry. It also captured members of one focus group excluding other important stakeholders.