Strategic Change Management Practices and Performance of Ncba Bank, Kenya.

Abstract

The objective of this study was to establish the effect of strategic change management practices on performance of NCBA Bank Kenya PLC, Kenya. Business restructuring as it is in mergers and acquisitions entails adoption of strategic change management practices that define its success in providing goods and services to the clients. Strategic change entails changing organizations mission, vision, objectives and adopted strategy to attain an objective. The adoption of strategic change is aimed at creating value to the organization, gaining competitive advantage and boosting performance in different areas of an organization. While organizational operations differ from sector to sector or industry to industry, strategic change varies with the type of organization and areas of change. This study sought to establish strategic change management practices at NCBA bank, Kenya. The major strategic change management practices were undertaken in technology, product reengineering, learning culture and downsizing, rightsizing and down-scoping. The objective of this study was to establish the effect of strategic change management practices on performance of NCBA Bank Kenya PLC, Kenya. The study used Lewin’s Change Model, Lippitt’s Phases of Change theory and resource-based view theory. The study employed descriptive research design. This research design was appropriate as it provided a concrete picture of the current strategic change management practices, thus a strong basis for building research question and advancing the existing body of research. The researcher used interview guide to collect data from the departmental heads and branch managers at NCBA bank, Kenya. The data collected was qualitative in nature. Therefore, content analysis was employed to analyse the data. The finding indicated that, the bank has adopted technological strategic practices that included system integration from the two banks (CBA and NIC) to the merged NCBA bank system to ensure continued operations. The findings further indicated that learning culture included harnessing the power of employees from both banks to work, to serve and to ensure the new brand is accepted in the market. Other respondents insisted that, communication was the key driver between the management and the staff to ensure unity horizontally and vertically. On down scoping, the bank closed six branches that were found to operate within the same geographical location. The study concluded that, strategic change management practices have positive impact on organizational performance. The study recommended adoption strategic change management practices to achieve competitive advantage. Further research can be undertaken to establish the effect of strategic product innovations on organizational performance.