| dc.description.abstract | Organisational turnaround is defined as the actions taken to bring about a recovery m performance in a failing organisation. Turnaround usually consists of a collection of concerted or co-ordinated activities which may include the replacement of key individuals in the organisation's management and leadership, immediate attention to major operational problems, seeking short term solutions, and the longer term, but often radical, redesign or re profiling of the organisation and its business. Turnaround strategy is described in terms of how the turnaround strategy components of managing, stabilising, funding and fixing an underperforming or distressed company are applied over the natural stages of a turnaround. Turnaround strategy must reverse causes of financial distress, resolve the financial crisis, achieve a rapid improvement in financial performance, regain stakeholder support and overcome internal constraints and unfavourable industry characteristics.
This study had three objectives. The first objective was to identify the turnaround strategies that were used by Kenya Revenue Authority. The second objective was to identify the factors that enabled the Kenya Revenue Authority to successfully turnaround. The third objective was to identify the challenges KRA faced in implementing turnaround strategy.
A case study design was selected. In this study, emphasis was given to primary data. The primary data was collected using an interview guide. The respondents were the commissioners in various departments as well as other selected employees. Data collected was mainly qualitative. Therefore content analysis was the best method of analysis as it does not limit the respondents on answers and has the potential of generating more detailed information.
The study found that that all the three elements of turnaround strategy were the principal strategies in the KRA context. Repositioning was done in terms of formulated mission and vision statement for the authority. Restructuring was also done through decentralisation and regionalisation. Some elements of retrenchment were also seen as the young generation replaced the old guards with the retrenches being given good packages for their early retirement. Success factors were found to be hiring of new management team, commitment from both the management team and the staff to implement the changes, government support in terms of financial resources, motivational measures put in place, flattening of organisation
structure and the empowerment of the staff through training. The challenges included
resistance from stakeholders as well as a section of the staff to the reform initiative and the implementation hiccups during the implementation of 'simba system'.
The study recommends that the managers in the public sector to think critically about what turnaround strategy fits their situations when indeed there is need to turnaround. They may choose to reposition, retrench or restructure or use all these elements during their turnaround process. But care must be taken on the implications of some of these strategies. The study also recommends that policy makers for public sector institutions take cognizance of the factors that influence turnaround strategy implementation in the public sector. Factors such as resources in terms of human and finance are critical in strategy implementation. The structure of the organisation also needs to be given weight when designing turnaround in the public
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