Influence of Strategy Evaluation Approaches on Performance at Kcb Bank

Abstract

The objectives of the study were to establish the strategic evaluation approaches adopted by KCB bank and to determine the influence of strategic evaluation approaches on performance of KCB bank. The study was guided by agency theory, and open systems theory. The target population of the study was the KCB bank’s staff, top management, middle management and subordinate staff. This research was a case study. The research study used an interview guide to collect data. The data collected was analyzed using the content analysis technique. The study concludes the strategy evaluation practices identified at KCB bank to include bench marking, internal audits, balanced score card, performance appraisals, accreditations and certifications, customer satisfaction surveys and the use of information technology programs. The challenges that were identified in the study in the evaluation of strategies include; an ineffective performance management system, formulation of inappropriate performance indicators, data collection and reporting systems and evaluation and review mechanisms, flawed objective setting process, lack of proper training of staff on performance management and evaluation, Poor internal communication, lack of information on the outcomes of evaluation and control actions, no established clear reporting schedules, channels and feedback mechanisms, low staff commitment ,resistance to change , lack of ownership ,Integrity issues , incorporation of incorrect information or lack of adequate information so as to make objective conclusions, lack of training in strategy evaluation and control practices, Poor support services, inadequate resources, poor infrastructure, testing and certification organizations, and lack of cooperation from KCB bank stakeholders. The study concludes that the benefit of a strategy evaluation is that it facilitates effective decision making, better selection of tactical options and teamwork. It can also be concluded that strategy evaluation helps in clearly defining the purpose of the organization and to establishing realistic goals and objectives consistent with that mission in a defined time frame within the organization’s capacity for implementation which aids in effective decision making policies. The study recommended that KCB bank develops an effective strategy evaluation framework. The KCB bank evaluation system should provide for an annual assessment of the results arising from the implementation of the plan, with the aim of establishing if organizational objectives are met according to the plan. In addition to the internal evaluations, a mid-term review of the Plan should be undertaken yearly and at the end of the planned period.