Strategic Responses and Performance of Nairobi City Water and Sewerage Company Limited

Abstract

This study was carried out to determine the strategic responses adopted by Nairobi City Water and Sewerage Company (NCWSC) and establish their impact on performance. The study adopted a case study design to determine the strategic responses adopted by NCWSC. This is believed to be the most appropriate design to be used as it gives some in-depth and intensive investigation of the particular topic of study. The study used both primary and secondary data. Primary data was collected using a semi structured interview guide for consistency. Eight directors referred to as Board of Management (BOM) and ten managers in key departments were targeted to be interviewed due to their key positions as they make decisions that shape the direction of the company. Data was analyzed using content analysis describing the composition of the objects or materials of study. The study concluded that NCWSC like any other organization is faced with both internal and external challenges which impact on the performance of the firm. To be able to sustain competitiveness; the company has been able to come up with key strategic responses that are perceived as drivers in dealing with the challenges. The most popular strategic challenges that the firm has adopted were strategic planning, innovation, customer satisfaction, outsourcing and reduction of Non-Revenue Water (NRW). The strategies have been adopted in anticipation that they will translate to improved performance. The study found that NCWSC has been able to improve its performance in terms of delighting its customers and improved revenue collection by using innovation. Customers have been able to transact their business with the firm in the comfort of their homes by using the technology that NCWSC has adopted. Customer satisfaction index has risen. It was also revealed that some outsourcing activities do not add much value to the firm and they should be phased out so that the firm can realize some gains and plough the money back to improve its services. It was concluded that there is a significant relationship between strategic responses and performance of NCWSC. The study recommends collaboration/partnership as a priority and a long term strategic response. This is because NCWSC receives water from other counties and the current devolution set up has opened another dimension on jurisdiction of water sources/resources hence creating conflicts that have arisen which require urgent resolution. If the current conflicts continue, it is likely to escalate and affect the operations of NCWSC.