Determinants of Strategy Implementation at National Health Insurance Fund in Kenya

A Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA)Organizations operate in an ever changing environment. This change is often manifested in form of modified law, an innovative technology or a new behavior of people or customers; this forces organizations to react accordingly. Organizations consequently formulate plans in form strategies in order to gain a competitive edge against their rivals or to stay afloat in the dynamic business environment. A good strategy should be of a long term nature, innovative, inspirational and stretching, and it should have a direct impact on the customer and competitor. The mission, vision and major organizational goals form the basis for strategy choice. Many organisations often fail to attain the objectives of their strategic plan because of a number of factors. Therefore this study was conducted to assess the determinants of strategy implementation at NHIF Kenya. The objectives of this study were to assess the effects of organisation culture, organisation leadership, resources and organisation structure on strategic plan implementation. This study adopted a descriptive research design. This approach was used to describe variables rather than to test a predicted relationship between variables. The population of this study incorporated 800 employees working with NHIF in Nairobi County. This study used both stratified sampling design and random sampling design. In stratified random sampling, the strata were formed based on members' shared attributes or characteristics. A random sample from each stratum was then taken in a number proportional to the stratum's size when compared to the population. The sample size of this study consisted of 93 respondents selected from the study population for the quantitative data. This study used primary data that was collected by the use of both the questionnaire and interview guide. The questionnaire had 5 sections consisting of both open and closed ended questions. The questions was constructed using likert scale since it was easy to construct and easy for the respondents to understand. Questionnaires were delivered to the respondents to fill by the researcher in person. Descriptive statistics including the means and standard deviations were used to analyze quantitative data and capture the characteristics of the variables under study. Inferential statistics were used to test the nature and magnitude of the hypothesized relationships. The analyzed data will be presented in form of tables, charts and graphs. Content analysis was used to analyse qualitative data collected using open ended questions and interview guide. The study findings established that organisation culture had a positive relationship with Strategic plan implementation. Organisations with a good working culture are more likely to be good strategy implementers. The findings also established that organisation leadership was significantly and positively related to strategic implementation. The study found out those organisations with competent leadership that is trusted by all the employees are good strategic plan implementers. In the study findings on effects of resources on strategic plan implementation; both financial and human resources were found to have a positive influence on the success of strategic plan implementation. Finally, the findings of this study revealed that organisation structure had positive effects on strategic plan implementation. Communication channels and board composition were structural factors that had impacts on strategic plan implementation. The study concluded that an organization with a culture where employees understands the core values, belief and principles of an organisation is crucial to the success of strategic plan implementation. The study also concluded that organisations with strong and transformational leadership always succeed in strategic plan implementation than those without strong leadership. Leadership is an attitude and a work ethic that empowers an individual in any role to lead from the top, middle, or bottom of an organization. Organisation leadership from board of directors, top management, supervisors are important in the progress of organisations Effective strategy implementation must be spearheaded by strong leadership that is able to consolidate all the necessary efforts and direct them toward the organisation goals. Further, organisations should have properly working structures for successful strategy implementation since, the manner in which people, department and all other organisational systems co-ordinate with each other and how employees are supervised in an organisation is also critical in strategy implementation. To successful implement strategies organisations need also resources both human resources and financial resources. Strategy implementation involves organization of the firm's resources and motivation of the staff to achieve objectives. Based on the finding above the study recommended that organisation should engage the employees in building a good organisation culture will in turn have positive effects on strategy implementation. The study recommended that organisations should be structured such that there is timely and effective flow of information both vertically and horizontal within the organisation. The study also recommended that organisations should strive to look for strong individuals who have the qualities to imbued, motivate, inspire and equip other staff with the vision of the future in order to attain the set objectives. Individuals mandated with the responsibilities to lead other must understand that the success of the organisation depended on their abilities to coordinate all the system in an efficient manner. They should encourage a culture that is results oriented, focused and discipline in order to succeed