Challenges of strategy implementation at the industrial and commercial development corporation, Kenya
Strategy, which is a fundamental management tool in any organization, is a multidimensional concept that various authors have defined in different ways. It is the match between an organization’s resources and skills and the environmental opportunities as well as the risks it faces and the purposes it wishes to accomplish. The purpose of strategy is to provide directional cues to the organization that permit it to achieve its objectives while responding to the opportunities and threats in the environment. Strategic management is, hence, both a skill and an art. Good strategic management requires both clear thought and sound judgment. The objectives of the study were to determine the challenges of strategy implementation at ICDC and to establish measures taken by ICDC to cope with the challenges faced in strategy Implementation. The study was conducted through a case study design. It involves an in-depth understanding of the challenges of strategy implementation within DFIs organization in Kenya. The researcher used an interview guide as primary data collection instrument. The study was analyzed through content analysis. The study found that communication played a very important role in communicating the strategic plans. Efficient communication ensures proper coordination of teams involved, time frame, amount of money to be used, objectives of the strategy and the role of each team member involved in the implementation. It found that the content of communications should clearly explain new responsibilities, tasks, and duties that need to be performed by the affected employees. The study found that teamwork affected strategy implementation. By the use of teamwork, the elementary problems are prevented or solved at the source and getting the job done becomes the primary goal of management and workers. It found that there has been conflicting priorities during strategy implementation. It found that most important strategies were left unimplemented while the least important were implemented. The study found that administrative challenge hinders successful implementation of strategic plans. Administration styles matters in strategy implementation. The study found that leadership was a big challenge to the process. They supported this by pointing out the various kinds of challenges faced by the organization that resulted by the leadership in place. First, rigidity and bureaucracy together with the failure to embrace new ideas and innovational technology in business was noted as a challenge. The study found that remedial measures paused by ICDC to cope with strategy challenges include hiring of experts to engage senior management on the need for change, in addition they proposed that retreats for senior management and the board ought to be scheduled to discuss the need for strategy implementation. Thestudy recommended that future strategy formulation should ensure the participation of all staff as well other stakeholders. This will enrich ownership of the final strategy as well as facilitate successful implementation. Secondly, ICDC should review its organizational structure in view of the current strategic plan. It concluded that inconsistencies and gaps between the plan and its objectives and the current organizational structure. Successful implementation of a plan ought to be matched with an efficient organization structure tailored to achieve its goals. It suggested that there is also a need to undertake a study to determine the link between strategy development and failure in strategy implementation in DFIs considering that there has been an increase in commercial banks and micro finance institutions, perhaps a study should be conducted to establish whether or not DFIs are necessary in Kenya.