Challenges of implementing corporate restructuring at KCB bank group Ltd
Wachira, Boniface K
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Corporate restructuring is a stage in strategy implementation where organizational managers attempt to recast their organizations, the organizational structure, leadership, culture, and reward system may all be changed to ensure cost competitiveness and quality demanded by the unique requirements of its strategies. Corporate restructuring is therefore aimed at reorganizing the organization from its current state which is viewed to be inefficient to one that is not only cost effective but also has a competitive advantage in the industry. The study has examined the challenges that KCB Bank Group Ltd has been facing in the implementation of the strategy of corporate restructuring, how these challenges have been managed guided by the bank’s key restructuring aim. The research was conducted on a case study research design focusing on KCB Bank Group that has just completed its first phase of the restructuring implementation process. Data was collected using a structured personal interview with the senior management members of staff of the bank. The study has established that the implementation process has faced a number of challenges which are not unique in the industry; these challenges are both behavioral and systemic. However, these challenges have been managed and the bank has used various measures inorder to manage these challenges. It can also be noted that the bank is optimistic that she will break through these challenges and emerge successful in realizing her key transformation goals which are to be a leaner and more efficient organisation with the aim of increasing her profitability and growth both locally and in the subsidiaries. On analyzing the data collected, it can be concluded that the bank so far is on track but more emphasis is needed on the behavioral challenge management since human beings in all organisations are the main cogs in the organizational production process. The bank has heavily invested in a strong technology infrastructure which will greatly support in the management of the systemic challenges. The researcher recommends that more study requires to be carried out in this field of corporate restructuring moreso at KCB Bank Group Ltd to establish whether the bank has realized its dreams, how the organisation has been fairing in the implementation process, and finally how different the organisation is from other organisations in the same industry and the progresses made.