Determinants of Effective Strategy Implementation in the Kenyan Public Sector.

Abstract

The role of strategic management and its positive impact on organizational performance, as well as the widespread challenges to the quality of public sector services has drawn the Kenyan government’s attention in recent years. Consequently, policies were developed to increase efficiency through the development of strategic plans. Despite these efforts, many public sector organizations in Kenya have failed to successfully navigate the implementation of their strategies. Empirical studies have approximated that 60 to 80 per cent of strategy implementation efforts fail. Costs are high when strategic change efforts fall short; not only financially but also in terms of lost opportunities to advance economic growth and development, wasted resources, and dwindling support from various partners and stakeholders. Therefore, the study assessed the factors that influence effective strategy implementation within the public sector in Kenya; by reviewing Kenya Revenue Authority’s successful implementation of its Revenue Administration Reform and Modernization (RARMP) strategy. To achieve the study objectives, an exploratory approach was adopted via a case study, as well as descriptive research design. A sample of 78 respondents was obtained from a target population of 783 at KRA headquarters, through stratified random sampling. The study received 67 questionnaires, which corresponded to a response rate of 85.9%. Ordinal regression and correlation analyses confirmed statistically significant relationships among the variables, as well as when combined against the dependent variable. The XLSTAT version 16.6 software was utilized to facilitate computations, and illustrate the characteristics of the variables via frequency distribution tables, charts and prose. The study revealed that leadership moderately influenced effective strategy implementation, in terms of strong executive support, as well as clear communication of strategic objectives to staff. Organizational resources had the greatest influence on effective strategy implementation, through the efficient management of human and technological resources. The study also ascertained that organizational structure moderately influenced effective strategy implementation via creation of new service units and expansion of the customer service outlets. Finally, the study verified that organizational culture strongly influenced effective strategy implementation in terms of leadership support for KRA’s core values and change management programs. The study recommended that the top management at KRA develop numerous modes of communication so as to create and maintain acceptance of new strategies. The study also endorsed the use of fiscal incentives, publicly awarded for meeting performance targets linked to strategic objectives. In addition, the study proposed that management ought to be sensitized on the importance of aligning the organizational structure with the strategy. Finally, the study recommended that KRA should develop a system for accurately identifying all stakeholders, and develop effective ways of communicating with them.