Role of Strategic Leadership in Strategy Implementation in the Geothermal Development Company in Kenya

Abstract

It has become a common knowledge that most problems in strategic management are related to strategy implementation rather than strategy formulation. Strategy implementation stage is effecting the strategy and getting the organization to move in the strategy accomplishment direction. It can be defined as a process by which strategies and policies are actionable through development of procedures, budgets and programs. Strategic leadership has always been identified as the key driver of strategy implementation. The leadership‟s role is important because its actionable agenda and conclusion about how hard or fast to push for change are critical in shaping the implementation process. Strategic leadership can be defined as the ability to influence a group or members of a team towards goals achievement, and thus successful strategy implementation will highly depend upon the leadership skills of organizing, culture building, and working through others, establishing strategic controls, motivating, and creating strong fits between strategy and how the organization performs to eventually achieve organizational goals. The objective of this study was to investigate the role played by strategic leadership in strategy implementation at the Geothermal Development Company (GDC). GDC is a 100% state-owned company, formed by the Government of Kenya to facilitate the development of geothermal resources in the country. Geothermal energy is an indigenous source of electricity that is reliable and environmentally-friendly. The formation of GDC was based on the policy by the government on energy (Sessional paper No.4, 2004) and the energy Act No.12 of 2006. In the literature review, the study provided a discussion of the relationship between strategic leadership roles and strategy implementation using three theories that support this relationship which are Contingency Theory, Upper-Echelon Theory and Implementation Theory. The study tried to determine the role of strategic leadership in effective strategy implementation by Geothermal Development Company in Kenya. Strategic leadership role in strategy implementation include shaping effective organizational culture, determination of strategic direction, effective management of organization‟s resource portfolio, building an organization, enforcement of ethical compliance, development of short-term objectives and plans, communicating strategy as well as establishment of balanced organizational controls. The study was conducted through a case study where information was gotten from primary sources through interviews. The respondents were drawn from four key divisions which are very essential in strategy implementation; Strategy, Research & Innovation Division, Geothermal Resource Development Division, Corporate Services Division, and Drilling & Infrastructure Division. The data collected, after being analysed, was evaluated for consistency, usefulness, adequacy and credibility through content analysis. The findings thus showed that strategic leadership plays a very crucial role in effective strategy implementation at GDC. Strategic leadership role stirs commitment among people in the organization and ensures that they embrace change and implement strategies specifically meant for the achievement of the strategic vision.