Factors influencing implementation of strategic change at Development Bank of Kenya Limited
Nandwa, Paulette D
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Strategic Change plays a vital role in altering the overall shape and direction of the organization. Successful implementation of strategic change for business leaders in the twenty-first century involves aligning desirable performance to continuous change affecting the organization internally and externally. This study reflects on the various factors that influence implementation of strategic change as pertains to DBK. The introduction captures the need for change initiatives in organizations as a requirement for them to reposition themselves in the face of changing competitive conditions. Different concepts of Strategic change are reviewed as sources of sustainable competitive advantage. Organizational features that determine application of Strategic change are detailed out and these include organizational culture, organizational learning, managerial behavior and effect of people in organizations. An overview of the Kenyan banking industry is outlined in detail, and changes affecting the industry such as evolution of technology, computerization of services, aggressive marketing strategies, expansion strategies, adoption of anti-money laundering laws and licensing of credit reference bureaus are covered. The study is carried out in the context of DBK, previously a long term financial institution that converted into a commercial bank in 1997. It captures the history and subsequent changes that DBK has undergone up until its' current position. The introduction culminates with a comparison of similar studies undertaken and an outline of their findings. The Literature review includes different perceptions on Strategic change. These include Strategy formulation, Strategy Implementation and Strategy evaluation. It details various approaches to strategic change as observed by other scholars, with focus on Kotter's eight step process to change. Change management is exhaustively reviewed and various factors that influence implementation of strategic change are covered. These include External/Environmental and Internal/Organizational factors. External factors pertain to environmental aspects that determine the direction of the institution's strategy. These are political, economical, social, technological, environmental and legal aspects. Internal factors pertain to organizational aspects that reflect an in depth analysis of the organization's strengths, weaknesses, opportunities and threats. Other factors included in the study are Managerial StewardshiplInitiatives and Motivation/Incentives. All these have been mapped out on the Conceptual Model of the study, which shows the interrelationship of various variables that influence Strategic change. The research methodology involved fifteen managers from the two branches of DBK. Interview guides were used to obtain information pertaining to each of the manager's perspectives on factors that influence strategic change at DBK. Conceptual and qualitative content analysis was used for the research. Instances where the respondents were asked to rate responses, the responses were edited, coded and analyzed using descriptive statistics. Results were outlined by reviewing respondent profiles, DBK's SWOT analysis, and findings on factors influencing Strategic Change. Detailed findings on PESTEL, Internal and External factors on strategy implementation are further outlined. Internal challenges within DBK are analyzed and measures taken to enhance Strategic change implementation as covered in the study are indicated. Results obtained show that in view of the pressures being expected from the external environment and critical visions of organizations, flexible and adaptive infrastructure need to be in place, which leads to contemporary and complex organization and optimum levels of performance. Participatory approach must be observed in the implementation of strategic change, with sufficient resource allocation and organization re-engineering.