Strategic Change Management Practices and Organization Performance at the Kenya Commercial Bank

Abstract

Change management is the use of systematic methods to ensure that organizational change is guided in the planned direction, conducted in cost effective and efficient manner as well as completed within the targeted time frame and with the desired results. Strategic change management aims at aligning structures, systems, processes and behavior to the new strategy ( A n s o f f and McDonnel, 1990). The purpose of this study was to establish the strategic change management practices adopted by Kenya Commercial Bank (KCB) and the relationship between the strategic change management practices and organizational performance. The study adopted a case study design so as to give in depth information on strategic change management practices and organizational performance at KCB. Both primary and secondary data were used as data sources in the study. Primary data was collected through in depth interviews, and was administered to both managers and heads of departments. Secondary data was collected from the KCB annual reports and financial statements. The study revealed that KCB adopted various strategic change management practices which improved the performance of the bank. The adoption of the practices led to reduction in cost hence increase in profits, better services to customers hence increase in deposits and also training and giving incentives to employees hence improving their productivity. The study recommended that organizations should undertake a strategic change management since the study has shown that it has an effect on the organizational performance. It also recommended that further research be done in other banks to ascertain if there are similarities or differences in respect to Strategic Change Management Practices and Organizational Performance in the banking sector. The limitation of the study was failure of respondent to turn up for interviews due to tight and busy schedules. The study suggests similar study should be carried out within other banking institutions.