Implementation of strategic transformation in a legally constrained environment – a case study of PostBank, Kenya
Much of previous research into strategic transformation to changes in the external environment has concentrated mainly on the external environment as a whole. However no specific study has focused on „Implementation of Strategic Transformation in a Legally Constrained Environment‟. Postbank is established under an act of parliament, Cap.493B which prohibits it from lending. This study therefore sought to fill the existing research gap by carrying out a case study on implementation of strategic transformation by Postbank in a legally constrained environment. After the amendment of banking act 16A (1) which prohibit the charging of ledger fees on savings accounts. The specific objective was to establish how Postbank is implementing strategic transformation in a legally constrained environment.This study employed an interview guide to collect data from the respondents. A sample of 5 respondents was selected from the population. Content analysis was to analyze the data. Strong leadership, lean structure, strong policies and procedures were found to have significantly influenced the implementation of the strategic transformation positively. From the respondents, staff buy-in, adequate resource allocation and prudent use of the same resources and staff accountability lead to the success of the transformation. The recommendations are that Postbank should simplify its structures to ensure easier information flow, more collaboration and teamwork among the personnel, undertake policy modifications and revise the procedure manuals. This is geared towards devolving decision making and authority to staff at all levels so that they feel empowered to act in areas of their expertise for the benefit of the organization as a whole. Adequate resource allocation and accountability measures should be enforced among its staff to cut on. Also to ensure resource allocations are thoroughly vetted and monitored. The areas for further research include a comparative study between a public enterprise and a private enterprise to find out best practices that can be incorporated in the other sector, as needed. The study provides foresight to business enterprises to always work on continuous improvement in all their product offerings, service delivery and delivery channels in response to changes in the external environment in order to remain relevant and gain competitive advantage over their rivals.