Challenges of strategy implementation at the ministry of finance in Kenya

Abstract

Strategic thinking can be divided into two segments; strategy formulation and strategy implementation. Implementation of strategy being the second phase of strategic management makes it a crucial stage in strategy management process as it unites organisation behind strategy and ensures that activities are done in a manner that tightly matches requirement for first rate strategy implementation. However implementation of strategy cannot take effect until they take the shape in action like day to day processes and relationships that exists in organisations. This research project sought to determine the challenges faced by the Ministry of Finance in their Strategic plan implementation and it also sought to establish how the Ministry of Finance deals with the challenges in the implementation of the strategic plan. To achieve the stated objectives a case stud~research design was used and primary data was collected in September 2007, Interview guide was administered by interviewing on 2 secretaries and five heads of departments. The respondents were office of Financial--Secretary through Head of Central Planning Unit and Permanent Secretary through Director of Vll Administration. The five Heads of Departments all responded making a total of 7 respondents representing 100% response rate. Content analysis was used ·to analyse the data which confirmed the challenges faced by Ministry of Finance in their Strategic plan implementation and organizational structure, communication culture and resource mobilization. Lack of scheme of service seemed to have been the most challenging factor for Ministry of Finance Strategic Plan Implementation. Communication also was found to be a major challenge since the Ministry does not have communication policy as well as lack of reward policy together with disparity in remuneration. While the Ministry has dealt with the challenges by preparing proposed Scheme of Service which have I\9t been approved on the method the scheme has not addressed disparities on the other hand, the scheme in remunerations properly. There is need for more to be done on Scheme of Service and its impact on strategy implementation in public sector especially Ministry of Finance to validate this research.