Challenges of Strategy Implementation at the National Hospital Insurance Fund, Kenya

Abstract

Strategy implementation is an enigma in many companies. The problem is illustrated by the unsatisfying low success rate (only 10 to 30 percent) of intended strategies. The primary objectives are somehow dissipated as the strategy moves into implementation and the initial momentum is lost before the expected benefits are realized. This study is about how a successful implementation is a challenge that demands patience, stamina and energy from the involved managers. The key to success is an integrative view of the implementation process. Strategy implementation differs completely from the formulation process and requires much more discipline, planning, motivation and controlling processes. The objective of this study was to establish the challenges NHIF faces in strategy implementation. This was a case study of the National Hospital Insurance Fund, a state owned corporation in Kenya. Primary data was collected using an interview guide. The study targeted five general managers and five line managers in various departments. Data was analysed using content analysis and in some cases, percentages were used to show the number of managers agreeing with some issues. The study found that there are a number of challenges which face strategy implementation process at the National Hospital Insurance Fund. These include leadership and management styles, wrong organisation structure, unsupportive organisation culture, and inadequate technical know-how.

Other challenges were government (or political) influence, poor communication and coordination, poor management of resources, unclear objectives of strategies, lack of quantifiable measures, lack of a monitoring and evaluation programme, and inconsistency between the minimum NHIF contributions and the minimum wage levels as set by the Government. The study recommends that there is need for more effective communication within the departments in the organisation in order to improve on the strategy implementation process.