Challenges of strategy implementation in savings and credit co-operative societies in Nairobi County, Kenya
Strategy implementation is basically administrative and involves bringing change by working through people, resource mobilization, motivating, culture change building and finding the optimal alignment between strategy and organization. The study sought to establish the challenges facing strategy implementation among savings and credit co-operative societies in Nairobi County, Kenya. The population of the study comprised all the 34 SACCO societies that have been duly licensed by SASRA to carry out deposit-taking Sacco business within Nairobi County for the financial year ending on 31st December, 2013. Data was collected through a structured questionnaire that made use of both closed-ended and open-ended questions. The questionnaires were administered to the SACCOs Managing Director. Descriptive statistics such as percentages, frequency, means, proportions and standard deviation was used in the analysis of the data. The study found out that the major challenges that affect strategy implementation among SACCOs operating in Nairobi County include: changes in SACCO laws and regulations; ineffective development of human capital to support strategy implementation; implementation taking more time than originally allocated; inadequate allocation of resources to the strategy of the SACCO; unsupportive organization structure; lack of alignment between the culture of the SACCO and the formulated strategy; slow acceptance of new strategy by stakeholders such as members and Board of Directors; competing activities and crisis distracted attention from implementing the decisions; poor or vague formulation of strategies; lack of alignment of the goals of, incentives for, the workforce with the strategy of the organization; and failure to effectively monitor, plan, co-ordinate and share responsibilities. The researcher recommends that: different types of capabilities, organizational processes, and systems need to be adjusted in order to implement the selected strategy; resource allocations to support strategy implementation should be adequate and provided in a timely manner; enhance employee involvement in strategy formulation; enhance staff skills through training in order to achieve effective strategy execution by staff which in turn leads to high overall organization performance; develop an adequate performance management and reward systems; and finally SACCOs should ensure that their leadership is effective.