Strategy Implementation Challenges In Government Parastatals: A Case of Kenya Revenue Authority

A Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirements for the Degree of Masters of Business Administration (MBA)The general objective of the study was to analyse the strategy implementation challenges among government parastatals in Kenya. The study was guided by the following specific objectives: to determine if employees at KRA are a challenge to strategy implementation, to examine if the organization‟s structure and operations are a challenge to strategy implementation, and to assess if the strategic process is a challenge on strategy implementation. To realize this objective, a survey design will be adopted. The target population constituted KRA employees in Nairobi, from which a sample size of 120 respondents were identified through stratified sampling. Primary data was collected from the strategic managers using a combination of questionnaire and structured interviews. A fact sheet was used to summarize the data collected before it is cleaned, coded and edited for completeness and accuracy before being analyzed using the Statistical Package for Social Scientists (SPSS) to obtain descriptive statistics. Data presentation was in the form of frequency tables and figures. The study revealed that employees are indeed a challenge to strategy implementation at KRA. This was evidenced by is a positive significant relationship between employee competencies and strategy execution at KRA, with a beta of 1.828. Additionally the study revealed that communication contributes 60.3 percent of strategy execution. In the same regard, t was revealed that all employees know exactly how to work upon the strategy, as well they were asked to state if employees in KRA are empowered to make their own decisions and finally how employee empowerment impacts strategy implementation. There also exists a positive significant relationship between employee empowerment and strategy execution, with a beta of 1.928. The studies further revealed that majority of the respondents agree KRA‟s organizational structure dictates the strategy execution process. Additionally the administrative system facilitates strategy execution. In the same regard leadership in KRA has ensured that leaders show equal attention to all functional-level concerns.There is also communication flow in KRA organization between top management and KRA has maintained the flexibility to adapt goals based on environmental changes. Finally the study established that service quality in KRA has influenced the strategy execution process, as well performance measurement has been streamlined to keep the execution process intact. In conclusion, the study revealed that there is a positive relationship between strategic process and strategy implementation. Addiitonally the study reveales that firm strategic process alone cannot steer KRA to effective strategy implemntation, this includes lack of strategic clarity, as well as the strategic purpose notwithstanding the strategic flexibility. The model was significant with F= 0.00 This is an indication that firm strategic process alone cannot steer KRA to effective strategy implementation. From the study the researcher recommended that KRA consider employees as being the key contributors to the strategic process and thus the need to always involve them in the entire strategic process. The study also recommended the need to constantly make adjustment to their organization structure in line with the changes in the competitive environment. Finally the study recommended better use of time, effort, elimination of unnecessary errors and the improved communication between the avoidance employee and the person creating the organization goals