Factors Influencing the Implementation of Strategic Plans in Organizations - A Case Study of Telkom Kenya Limited

A Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for the Degree of Masters in Business Administration (MBA)The purpose of this study was to investigate the factors influencing effective implementation of strategic plans in organizations for the case of Telkom Kenya Limited. The research was guided by the following research questions: How has the company’s organizational structure affected strategy implementation? How has the company’s organizational culture affected strategy implementation? How has the company’s innovation affected strategy implementation? The study applied the descriptive research design. The target population of the study was the top and middle level managers of Telkom Kenya Limited. Stratified random sampling technique was used to select the intended sample size from both groups. Data was collected through a questionnaire. Questionnaires were distributed to the different respondents by hand and through electronic mail and thereafter collected after submission. The demographic data was tabulated using frequency and percentages. Pearson’s correlation was used to describe the data. The sampled data was then presented in form of tables based on the research questions by the use of Statistical Product and Services Solutions (SPSS). The study showed that, structural stability provides the capacity that an organization requires to consistently manage its daily work routines. It revealed that most organizations have recently adopted a network structure which involves outsourcing functional activities; that a functional structure allows for strong task focus through specialization; and that strategic business units need to be centralized at the corporate office. In addition, the study established that culture as a factor in accounting for organizational performance has been ignored because it encompasses the taken-for-granted values; that trust and communication contribute to more productive outcomes; and that a system of shared meaning is a critical variable for effective strategy process. The study further revealed that the skills acquired contribute to creation of new ideas and firms with scarce but important capabilities profit the most from innovation activities; that managers risk investing enormous resources in the formulation of innovative strategies without sufficient return; and that employees are trained to use the available technology and resources to facilitate in the creation of innovative solutions. From the study it can be concluded that, organizational structure is paramount to strategy implementation. Key factors of organizational structure lies on organizational design and the process of selecting the right combination of organizational structure. It can also be concluded that, organizational culture is the backbone of how the organizational factors operate within and outside the organization. It gives the organization a foundation of how it interacts with itself and with other stakeholders and may lead to the growth or downfall of the organization. The study further concludes that strategic innovation is key to a company’s growth and highlights that change management is a key driver for effective strategy implementation. This study recommends that Telkom Kenya Limited needs to monitor and oversee its organizational design process to achieve superior performance and overall profitability. In addition, it emphasizes on the need for policy makers and managers pay attention to organization culture and streamline it to fit the company goals that should be driven towards implementation of strategic plans. The study further recommends that Telkom Kenya adopts change management that will facilitate its ability to become a learning institution that quickly implements innovation in its system