Challenges of the implementation of restructuring strategy by the national bank of Kenya
Restructuring strategy is one significant process that occurs because of the need to change unit priorities, initiate new programs, enhance effectiveness, address budget reductions and reduce headcounts among other reasons. The change brought about by restructuring strategy is not a simple task because the success depends on how well the employees adapt to the change. This therefore brings about various challenges during the implementation process ranging from communication, training and retraining, attitudes amongst others which need to be worked through to ensure the success of the restructuring strategy and the overall firm. The main purpose of the study was to evaluate the challenges in implementation of restructuring strategy at the National Bank of Kenya. This research used a case study approach as the research design since the unit of analysis was one organization which is NBK. Primary data was collected using an interview guide with open ended questions to avoid subjectivity. The method involved personal interactive interviews conducted by the researcher. The interviews were carried out among 15 independent respondents in whom a selection criterion of their available experience with the restructuring strategy implementation was used. The respondents were all at a senior management level stemming from the Managing Director to Senior Relationship Managers. The researcher then employed content analysis as a method of data interpretation. The study grouped challenges under three subtopics namely challenges faced at Board of Directors level such as political influence, regulations, high and attitudes, challenges faced at senior management level such as financial issues (inadequate budget), poor communication, external interference, technological hindrances and skills gap and challenges at the operational level such as communication, lack of involvement in decision making and dishonest employees. The researcher went forward to make recommendations on ways to deal with the challenges of the restructuring strategy. The implication of the study in policy is that the results will go a long way in ensuring that after effective policies are developed, even more concentration and effort is given to the implementation process. In theory, the study illustrated that the Dynamic Capabilities Theory and Resource Based Theory play a great role in restructuring strategy implementation effectiveness and therefore the study will guide future scholars in the advancement of theories. The study in practice serves as a reference point to organizations involved in restructuring strategy and have the need to know the “what” and “how” as regards the challenges faced during implementation of the restructuring strategy and measures to overcome these challenges.