INFLUENCE OF STRATEGIC LEADERSHIP IN STRATEGY

IMPLEMENTATION IN COMMERCIAL BANKS: A CASE STUDY

OF KENYA COMMERCIAL BANK

BY

..................

A RESEARCH PROPOSAL SUBMITED IN PARTIAL FULFILLMENT

OF THE REQUIREMENT TO THE KENYA NATIONAL
EXAMINATION COUNCIL FOR THE AWARD IN DIPLOMA IN
BANKING AND FINANCE.

JULY 2020

DECLARATION
To the best of my knowledge, this is my original work and has not been presented for any
academic award in any college.

STUDENT NAME:

ADM NO:

SIGNATURE…………………………………. DATE_____________________

This project has been carried out under the supervision of my lecturer and will be presented
to the Kenya National Examination council for the award of a certificate in Diploma in Banking
and Finance through the approval of the supervisor.

SUPERVISOR

NAME:

SIGNATURE…………………………………………. DATE____________________

DEDICATION
I dedicate this Research Proposal to my family, for the support I got from them whenever I
needed their support.
 ACKNOWLEDGEMENT

I am indebted to many individuals for their support and contributions towards the successful
and timely completion of this research work, and above all, Almighty God for immeasurable
gift, talent, good health and courage. Without these, the successful completion of this work
would have been a mirage.

My sincere gratitude goes to the management and lecturers for their patience and efforts to
guide me through the course. I lastly wish to acknowledge my fellow students for working
closely with me and correcting me whenever necessary.

ABSTRACT

The objective of the study was to investigate the perceived role of strategic leadership in
strategy implementation in Commercial Banks in Kenya. The study aimed at establish how
 setting long term direction affect strategy implementation in commercial banks in Kenya,
determining how informed decision-making affect strategy implementation in commercial
banks in Kenya and examining the effect of monitoring activities in strategy implementation
of commercial banks in Kenya.
The study adopted a descriptive research method to gather, analyze, interpret and present
information for this research. The descriptive research design helped in focusing at the
strength of relationship between strategic leadership and strategy implementation in
commercial banks in Kenya. Questionnaires were used to gather relevant information from
the respondents. The study focused on 106 managers of Kenya Commercial Bank Group
based in Nairobi. Probability sampling technique was used to determine the sample size and
collect data from the sample. In data analysis and presentation, the study adopted a
descriptive and inferential statistics. Tables were used in data presentation.
The study established how setting long term direction affects strategy implementation. It was
found that financial capability of the firm is considered while setting long term goals. There
is an effective reporting process to reinforce team goals. The study found that leaders set
objectives of the company and that in the long term process, the human resource planning
needs are addressed. The study reveals that when the organization set long term direction,
the company is more customer-focused due to effective goals set. The study established that
in an organization, leaders develop strategic vision, develop strategies and set goals of the
company.

Contents
CHAPTER ONE...........................................................................................................................................9
1.0 INTRODUCTION.............................................................................................................................9
 1.1 Background of the Problem......................................................................................................9
1.2 Statement of the Problem.......................................................................................................11
1.3 General Objective....................................................................................................................12
1.4 Specific Objectives...................................................................................................................12
1.5 Significance of the Study.........................................................................................................12
1.5.2 Government..........................................................................................................................12
1.5.3 Banking Industry.................................................................................................................12
1.6 Scope of the Study...................................................................................................................13
1.7 Definition of Terms..................................................................................................................13
1.7.2 Strategy Implementation....................................................................................................13
1.7.3 Strategic Direction...............................................................................................................13
1.7.4 Strategic Monitoring...........................................................................................................13
1.8 Chapter Summary...................................................................................................................13
CHAPTER TWO........................................................................................................................................14
2.0 LITERATURE REVIEW...................................................................................................................14
2.1 Introduction.............................................................................................................................14
2.2 Long Term Direction on Strategy Implementation..............................................................14
2.2.1 Long Term Goals and Employees......................................................................................14
2.2.2 Long Term Goals and Capital Structure/ Financial Decisions.......................................15
2.2.3 The Effect of Long Term Goals on Information Technology..........................................16
2.2.4 Effect of Communication throughout the Organization..................................................18
2.3 Informed Decision Making on Strategy Implementation....................................................18
2.3.1 Crucial Information is Easily Accessed and Time Saved................................................19
2.3.2 Revenue Maximization and Sales Optimization...............................................................20
2.3.3 Accurate Measurement of Performance............................................................................20
2.4 Monitoring Activities on Strategy Implementation..............................................................21
2.4.1 Collection of data Baseline Establishment........................................................................22
2.4.2 Report Writing and Data Sharing.....................................................................................22
2.5 Chapter Summary...................................................................................................................23
CHAPTER THREE......................................................................................................................................24
3.0 RESEARCH METHODOLOGY.........................................................................................................24
3.1 Introduction.............................................................................................................................24
3.2 Research Design.......................................................................................................................24
3.3 Population and Sampling Design...........................................................................................24
3.3.2 Sampling Design..................................................................................................................25
3.3.2.2 Sampling Technique........................................................................................................25
3.3.2.3 Sample Size......................................................................................................................25
Table 3.1: Sample Size Distribution.................................................................................................26
 3.4 Data Collection Methods.........................................................................................................26
3.5 Research Procedures...............................................................................................................27
3.6 Data Analysis Methods...........................................................................................................27
3.7 Chapter Summary...................................................................................................................28
CHAPTER FOUR.......................................................................................................................................29
4.0 RESULTS AND FINDINGS..............................................................................................................29
4.1 Introduction.............................................................................................................................29
4.2 Response Rate..........................................................................................................................29
Table 4.1: Response Rate..................................................................................................................29
4.3 Background Information........................................................................................................29
4.3.2 Age of Respondents Table 4.3: Age of Respondents........................................................30
4.3.3 Level of Education of Respondents Table 4.4: Level of Education of Respondents.....30
4.3.4 Working Experience of Respondents Table 4.5: Working Experience of Respondents
31
4.3.5 Cadre of Respondents........................................................................................................32
4.4 Setting Long Term Direction on Strategy Implementation.................................................33
Table 4.7: Long-Term Direction and Strategy Implementation....................................................33
4.4.1 Model Summary of Long-Term Direction and Strategy Implementation Table 4.8:
Model Summary of Long-Term Direction and Strategy Implementation...................................34
4.4.2 Annova of Long-Term Direction and Strategy Implementation.....................................34
Table 4.9: Annova of Long-Term Direction and Strategy Implementation.................................34
4.4.3 Coefficients Variation of Long-Term Direction and Strategy Implementation............35
4.5 Informed Decision Making on Strategy Implementation Table 4.11: Decision Making..35
4.5.1 Model Summary of Informed Decision Making and Strategy Implementation Table
4.12: Model Summary of Informed Decision Making and Strategy Implementation.................36
4.5.2 Annova of Informed Decision Making and Strategy Implementation Table 4.13:
Annova of Informed Decision Making and Strategy Implementation.........................................36
4.5.3 Coefficients Variation of Informed Decision Making and Strategy Implementation.....36
4.6 Effect of Monitoring Activities on Strategy Implementation Table 4.15: Monitoring
Activities.............................................................................................................................................37
4.6.1 Model Summary of Monitoring Activities and Strategy Implementation.....................38
Table 4.16: Model Summary of Monitoring Activities and Strategy Implementation................38
4.6.2 Annova of Monitoring Activities and Strategy Implementation Table 4.17: Annova of
Monitoring Activities and Strategy Implementation......................................................................38
4.6.2.1 Coefficient of Variation of Monitoring Activities and Strategy Implementation......39
4.7 Chapter Summary...................................................................................................................39
CHAPTER FIVE.........................................................................................................................................40
5.0 CONCLUSIONS AND RECOMMENDATIONS..................................................................................40
5.1 Introduction.............................................................................................................................40
5.2 Conclusions..............................................................................................................................40
 5.3 Recommendations....................................................................................................................42
REFERENCES............................................................................................................................................43
APPENDICES............................................................................................................................................46
APPENDIX 1: LETTER TO THE RESPONDENTS..........................................................................................46
RE: RESEARCH DATA COLLECTION ON THE INFLUENCE OF STRATEGIC LEADERSHIP IN STRATEGY
IMPLEMENTATION IN COMMERCIAL BANKS..........................................................................................46
APPENDIX 11: STUDY QUESTIONNAIRE...................................................................................................47
Section I: General information.........................................................................................................47
Section II: Long Term Direction......................................................................................................47
Section V: Strategy Implementation................................................................................................48

CHAPTER ONE
 1.0 INTRODUCTION

1.1 Background of the Problem

Strategic leadership in the management structures of organizations has been identified as

one of the possible barriers to the effective implementation of strategy. Subsequently,
strategic leadership is also widely regarded as one of the key drivers of strategy
implementation (Barend, 2016). Therefore, from a business perspective it is the
identification, development, and use of organizational leadership which is critical to
organizational performance (Redmond, 2016). Strategic leadership is defined as the
managerial ability to empower others through anticipation, envisioning and maintaining
flexibility to create strategic changes where necessary (Hoskisson, Hitt, Ireland and
Harrison, 2012). Thinking strategically and differently is necessary for modern leaders
when it comes to their role, capabilities and how to improve them in order to lead their
organization to long-term success (Thompson, Strickland & Gamble, 2010). Dinwoodie,
Quinn and McGuire (2014) indicates that, through leadership strategy, the potential of
individuals and groups is unleashed throughout an organization and assists an
organization achieve success

According to Center for Creative Leadership (2004), leading strategically involves the
discovery of key things in an organization that can do well and also create the conditions
that are required for the discovery. These requires organizations to understand the learning
process of strategy where strategic leadership takes up the role of driving organizations to
become continual learning engines. Mapetere, Mavhiki, Nyamwanza, Sikomwe and Mhonde
(2012) indicate that, crafted strategies in organizations have to be effectively implemented in
any given organization by strategic leaders who must be aware of the need to strategically
plan the future of their organizations. Strategic leaders are rare. They are a synergistic
amalgamation of what is best about both the Visionary Leader and the Managerial Leader.
They can balance the more short term financial and operational requirements of an
organization with the longer term strategic prospects that may become available. Strategic
leaders integrate the vision, creativity and innovation necessary for long term success with
the operational focus and understanding that preserves organizational stability. The
Strategic Leader is able to bond or connect with the people around them and is results
oriented (Rowe, 2001).
Thinking strategically and differently is necessary for modern leaders when it comes to their
role, capabilities and how to improve themselves in order to lead their organization to long-
term success (Thompson, Strickland and Gamble, 2010). Dinwoodie, Quinn and McGuire
(2014) indicates that, through leadership strategy, the potential of individuals and groups is
unleashed throughout an organization and assists an organization achieve success. However,
most leadership efforts of senior executives in organizations are not connected to strategy
process. This creates a disconnect that prevents organizations from enacting and identifying
wise strategies.

Strategic leadership is a key driver to an organization’s success to strategy implementation

according to Hitt, Ireland and Hoskisson (2013) which is broadly recognized as one of the
main drivers of effective strategic execution where strategic leaders play an important role in
promoting competitive advantage of an organization over long term (Marriott, Du Plessis,
Manichith and Sukumaran 2014). This type of leadership has been seen to assit
organizations deal with the global economy (Zoogah, 2011). Center for Creative Leadership
(2004) points out strategic leaders as leaders that develop and discover strategies and grip it
in a continuing state of formulation, implementation, reassessment and revision. This leaders
do not however come easily in organizations and according to Forbes, only 10 percent of
leaders exhibit strategic skills which is an inadequate number considering the demands of
organizations today (Beatty, 2010). Beatty points out that strategic skills are not only
required in time of growth but also in difficult times in an organization when resources are
tight to ensure that resources in organization are focused in the right areas (Beatty, 2010).

Speculand (2014) states that strategy implementation provides a competitive advantage for
organizations and it is essential for them to brigde their current strategy implementation
gaps. Strategy gaps are missing steps seen to exist in most organizations. Strategy gaps are
seen as a threat to the future performance of organizations seen to impact to the efficiency
and effectiveness of senior executives and their management team (Hamel and Prahalad,
2003).

1.2 Statement of the Problem

Research has shown that implementing a strategy is far more difficult than forming a
strategy (Allio 2005). Strategic leadership is widely recognized as one of the key drivers
of effective strategy implementation (Bossidy, Charan, & Burck, 2002) and indeed has
been identified as one of the major barriers to effect implementation of strategy if it lacks
among top leadership of an organization (Kapln & Norton, 2004). Organizational
performance is determined by the choice of strategy and the manner of its execution,
which in turn is determined to a great extent by the nature of leadership and more so the
strategic leadership of an organization (Arooj Azhar, 2012). Without effective strategic
leadership, the capability of a company to achieve or sustain a competitive advantage
therefore superior performance is greatly constrained (Elenkov, Judge, & Wright, 2005).

In a study done in South Africa on the influence of Strategic Leadership on strategy

implementation, Lear (2016) used the ratio 85/60 respondents (leadership/employee) to
provide insights on perception of leadership on strategy implementation. The findings of
the study was that, determining a strategic direction for the orgaization is the strategic
leadership action that is perceived to play the most important role in effective strategy
implementation. According to Barend (2016) strategic leadership positively contributes to
the effective implementation of strategy in organizations in South Africa. Effective
strategic implementation requires strategic leadership (Hrebiniak 2006; Collins 2001;
Pearce and Robinson 2005; Norton and Kaplan 2004). According to Hrebiniak (2006);
Norton and Kaplan (2004) lack of strategic leadership among top management in an
organization has been identified by various authors as a major barrier to effective strategy
implementation.

High failure rate of strategy implementation efforts is well documented, and many
barriers to effective strategy implementation do exist. A lack of leadership, and
specifically strategic leadership, at the top of the organization has been identified as one
of the major barriers to effective strategy implementation. In turn, strategic leadership is
also viewed as a key driver to effective strategy implementation (Jooste and Fourie,
2009). The high failure rate of strategy implementation initiatives is a cause for great
concern in organizations. This study seeks to investigate strategy implementation barriers
by examining the role that strategic leadership plays in strategy implementation at Chase
Bank Kenya Ltd.

1.3 General Objective

The general objective of this study was to investigate the perceived influence of strategic
leadership in strategy implementation in Commercial Banks in Kenya.

1.4 Specific Objectives

1.4.1 To establish how setting long term direction affect strategy implementation
in commercial banks in Kenya.
1.4.2 To determine how informed decision making affect strategy implementation
in commercial banks in Kenya.
1.4.3 To examine the effect of monitoring activities in strategy implementation
of commercial banks in Kenya.

1.5 Significance of the Study

1.5.1 Academicians & Researchers

This research contributed to the knowledge on the role of strategic leadership in strategy
implementation as a basis for future research. The study can be used as point of reference
by future researchers and scholars to further their studies on related areas highlighted in
this research.
1.5.2 Government

The study will enlighten the government on the needs of the banking industry for
continuous growth and development of the economy. Governments will understand the
requirements of commercial banks putting in place policies and funds to further the
growth of the banking industry.

1.5.3 Banking Industry

This study informs the management of KCB Group on the role that strategic
leadership plays in strategy implementation. It will help KCB Group mold their leaders
into strategic ones for the success of strategy implementation. This will provide a
framework for consultants and strategy Practioners in the banking industry on
effective strategy implementation highlighting the role of strategic leadership as
critical factors for a successful strategy implementation as well as providing them
with information on the common pitfalls to avoid in this process.

1.6 Scope of the Study

This study focused on the role of strategic leadership in strategy implementation at KCB
Group. The study will be focused on the management of this bank at their main
headquarters and branches in Nairobi. This research will be carried out in seven months
between September 2015 and March 2016.

1.7 Definition of Terms

1.7.1 Strategic Leadership

This is the ability of leaders to empower others to create strategic change through
anticipating, envisioning and maintaining flexibility (Hitt, Ireland and Hoskisson, 2007).

1.7.2 Strategy Implementation

This is the process of changing plans into action assignments ensuring that they are
executed in a manner that completes the stated objective of a given firm (Mapetere, et.al.,
2012).

1.7.3 Strategic Direction

This is the process of a course of action that leads to the achievement of the goals of the
organization (Ireland and Hitt, 2005).

1.7.4 Strategic Monitoring

This entails observing and checking the progress or quality of something over a
systematic period of time giving the progress of the project (Sharma, 2012).

1.8 Chapter Summary

This chapter gives a background of the research topic under study, identifying the
problem that this research is sort to address, the objectives guiding this study, significance
of the study, the scope of the study and definition of terms. This paves way to chapter two
that will discuss the literature review of the role of strategic leaders in bridging strategy
implementation gaps in the banking sector guided by the specific objectives highlighted
in Chapter one, Chapter two, and Chapter three.
 CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction

This chapter reviews literature on the influence of strategy leadership in strategy

implementation in commercial banks based on the specific objectives of this research. The
specific objectives include; determining the effect of setting long term direction of commercial
banks; to establish the effect of informed decision making in strategy implementation of
commercial banks and to examine the effect of monitoring activities in strategy
implementation of commercial banks. A chapter summary is presented at the end of his
section.

2.2 Long Term Direction on Strategy Implementation

Goals are a statement of direction or what the organization or subunit of the organization
(e.g. a function or department) wishes to do. Goals state the end toward which effort is
directed. They are usually a reflection of an organizational (or subunit) problem or of a desire
to capture an opportunity to improve or advance the organization. They should be specific,
measurable, achievable/attainable, relevant and time bound (SMART) (Reichard, 2016). Goal
setting is one of the most prominent and basic tools used by both individuals and
organizations to assist in setting the direction and accomplishments. Successful organizations
set both mid-term and long-term goals not only for sales, products and service development
but also for improving quality, reducing errors, becoming more customer- focused and
building better internal and public relations (flex study, 2016).

2.2.1 Long Term Goals and Employees

Long term direction that an organization adopts should be vibrant enough in addressing
human resources planning needs. These may include one or more human resources
topics such as; changes in work design and/or organization; recruitment and planned
demographic changes; changes in classification and pay, etc.; or employee development,
education and training (California State Department of Finance, [CSDF] 2016). According
to Sullivan (2016), long term goals and directions of strategic leaders should consider
certain functions in the HR department. Hiring and retaining employees with self-
motivation and exceptional capabilities is probably the most impactful factor in
workforce and team productivity. This helps senior managers and the HR to attract
employees that are innovators, high performing continuous learners and those that are
agile. According to Thomas, (2016), corporate strategies represent the organization's
long-term direction. Issues addressed as part of corporate strategic planning include
questions of diversification, acquisition, divestment, and formulation of business
ventures. Corporate strategies that deal with plans for the entire organization and
change relatively infrequently, with most remaining in place for five or more years
(Thomas, 2016).

2.2.2 Long Term Goals and Capital Structure/ Financial Decisions

A firm’s capital structure refers, generally, to the mix of its financial liabilities (Rocca,
Rocca, & Gerace, 2008). La Rocca et al., further state that debt and equity are the two
major classes of liabilities, with debt holders and shareholders representing the two types
of investors in the firm. For the banks, this category is expanded to include depositors
(customers). In the real world, strategic (long term decisions) may affect a firm value
differently (Myers & Majluf, 1984). Strategy and finance are gravitating towards each
other each day. It is essential to match strategy and investment plans with financing
requirements, complementing external source of finance to strategies for corporate
development. A good pair-up of strategy and finance dimensions can be tantamount to a
competitive weapon. The interaction between financing and real decisions creates a
situation in which high or low debt can compromise a firm’s ability to take advantage of
strategic options or long term direction (La Rocca 2008).

Long term goals or corporate direction driven decisions have to carefully consider
financial capability of the firm because according to La Rocca et al., (2008) a firm
entering the market has a more vulnerable financial structure than does an incumbent. An
incumbent with deep pockets can engage in predatory practices, such as a price war or
increasing its output, to exhaust the entrant financially and drive it out of the market
either temporarily or permanently. Visionary organizations use low debt levels as a
strategic instrument to signal their solvency and toughness to the market, thus deterring
any predatory action and risk of aggressive behavior by rivals. Strategic planning and
budgeting are integral components of good management. The strategic plan charts
direction, while the budget provides resources to implement the plan. A strategic plan
neither grounded in fiscal reality nor linked to the budget would amount to wishful
thinking.
2.2.3 The Effect of Long Term Goals on Information Technology

According to the African Development Bank Group, their IT strategic goals for the years
2013-2015 revolved around; aligning the IT delivery capacity along the Bank’s long term
strategy, enabling organizational effectiveness through efficient use of IT systems,
providing an effective support to the decentralization strategy, maintaining financial
soundness and business continuity, achieving lower total cost of ownership even while
building capacity via “economies of skills”(African Development Bank Group, 2016).
The changes that new technologies have brought to banking are enormous in their impact
on officers, employees, and customers of banks. Advances in technology are allowing for
delivery of banking products and services more conveniently and effectively than ever
before thus creating new bases of competition (Myers & Majluf, 1984). Rapid access to
critical information and the ability to act quickly and effectively will distinguish the
successful banks of the future. The bank gains a vital competitive advantage by having a
direct marketing and accountable customer service environment and new, streamlined
business processes.

The advantages accruing from information technology are three-directional to the

customer, to the bank and to the employee (Alabduljader, 2012; Cherian and Farouq,
2013)
. Banks are aware of customer's need for new services and plan to make them available.
IT has increased the level of competition and forced them to integrate the new
technologies in order to satisfy their customers (Ernst and Young, 2016). They have
already developed and implemented a certain number of solutions. Self-inquiry facility is
one of the solutions which allows for logging into specified self-inquiry terminals at the
branch to inquire and view the transactions in the account. Another one is telebanking
which is a 24-hour service
through which inquiries regarding balances and transactions in the account can be made
over the phone. Furthermore, electronic banking is advantage to bank and consumers that
enables the bank to provide corporate or high value customers with Graphical User
Interface software on a PC, to inquire about their financial transactions and accounts, cash
transfers, cheque book issue and inquiry on rates without visiting the bank. Moreover, LC
text and details on bills can be sent by the customer, and the bank can download the same.
The technology used to provide this service is called electronic data interchange.
 2.2.4 Effect of Communication throughout the Organization

The chances of an organization being successful are dependent on a competitive

business strategy and strategic plan when the plan and the strategy are clearly
communicated to employees. Employees become more motivated and remain focused
when the strategic direction of the organization is communicated to them (Sullivan,
2016). Aligned behavior and commitment is also possible when corporate values are
measured and rewarded. Every team and business unit in the organization is required to
understand their role and managers and leaders develop a clear communicated purpose
that is convincing and makes employees feel important (Thomson, 2016). Leaders in the
organization must understand that employees are likely to be committed to the purpose
of their team or unit when they are involved in creating it.

According to Sullivan (2016), lack of focus, a low level of “engagement” and commitment
resulting in an unclear mission hamper strides of achieving a mission. This can frustrate
employees and make them feel unimportant due to poor communication resulting out of this.
This leads to wasted efforts, increased error rates and low productivity within an organization.
Feedback mechanisms and communication need to be developed with the involvement of
employees ensuring that they fit the needs of the employees and the manager.

2.3 Informed Decision Making on Strategy Implementation

Strategic decisions are long-term in their impact. They affect and shape the direction of
the whole business and are generally made by senior managers (Business Case Studies,
2016). However, strategic business decisions are often made with incomplete
information about the true picture of risk and opportunity across the whole organization
(Sword Active Risk Manager [SARM], 2016). Traditional approaches to decision-
making focus on ad hoc reporting and financial statement line items. These approaches
typically exclude key external and operational drivers, limiting a company’s ability to
make fully informed decisions (Ernst and Young, 2016).

Companies use business intelligence to extract crucial facts from a vast amount of
unstructured data and transform them into actionable information that enables
companies to make informed strategic decisions, improving operational efficiency and
business productivity (Lyoob, 2012). Companies need to take a more incorporating
 approach that implements driver analytics and uses the analytics to mathematically link
business strategies with the market, competitor, operational and financial forces driving
value and, by extension, good decision-making. This leads to the improvement of
performance management capabilities driving profitable growth within a company
(Ernst and Young (2016).One term that stresses the need to make more informed
decisions using all these sources is “evidence-based decision-making.” Evidence-based
decision-making is a term that is being used across many professions which are trying to
apply research and evaluation to the decision-making of clients (Serve Centre, 2016).

2.3.1 Crucial Information is Easily Accessed and Time Saved

Business intelligence ensures stronger Return on Investment (ROI) as companies can

significantly reduce costs, enhance revenue, improve margin, and drive cost avoidance
and much more. Also, informed decision making ensures qualitative ROI such as
improvements in business and process efficiency, employee productivity, better strategic
decision making, customer satisfaction and much more. Companies relying on business
intelligence can reduce operational costs due to improved operational efficiency and
optimized business processes. Business intelligence provides crucial information to
companies, improving their ability to make quick decisions and generating a competitive
advantage (Lyoob, 2012).
Leaders who use driver analytics as part of a complete performance management
transformation can improve both their strategic and operational insights and by extension,
their decision-making. When the drivers behind decision-making adopt institutional
knowledge, there is an opportunity for everyone to evaluate and absorb what’s driving the
business. This shared understanding of drivers improves the quality of decision-making across
the organization (Conger, 2010). Once consumer products companies grasp the power of
driver-based performance management, they uncover the insights they need to make better
strategic decisions, transform their operations and propel profitable growth (Ernst and Young,
2016). Likewise, internal information dissemination is equally important for strategy
implementation. When members of the organization are at par in terms of information that
they should ordinarily have, it makes delegation and wholesome involvement easier.
Employees must have the authority, responsibility, and tools necessary to impact relevant
measures; otherwise, they may resist involvement and ownership. Sage (2016) states that it’s
easier to avoid pitfalls when they’re clearly identified and organization structure should be
supportive of management effectiveness, appropriate lines of authority, and have clear, open
lines of communication with employees.
 2.3.2 Revenue Maximization and Sales Optimization

The effect of informed decision making in an organization is by being able to exploit revenue
opportunities, stop revenue leakage and boost its top line results (Michael, 2015). Executives
can identify revenue opportunities, marketing teams can precisely target customers with the
right products, and sales teams can confidently decide the right price to offer for maximizing
revenue (Pure Systems, 2016). Businesses can easily leverage their revenue opportunities with
informed strategic decision-making support and actionable marketing and sales optimization.
Businesses can move from the experience-based marketing and sales to a more sophisticated
level of science-based decision making. They can gain additional revenue by using a variety of
strategies, from scientifically targeting customers, through to price fine-tuning during sales
(Lyoob, 2012). According to Hinterhuber and Liozu (2012), marketing managers can calculate
campaign cost and performance (ROI), and optimize their tactics through predictive analytics.
Salespeople can identify the optimal sales price that maximizes revenue for specific products
or services, as well as the probability of the customer accepting the optimal price, or any
other price or discount the salesperson wants to offer By combining the power of analytics
and optimization, the accessibility of mobile, the flexibility of the cloud and its cost-
effectiveness informed decisions are invaluable to revenue maximization. Revenue
maximization grants the organization the ability to build a war chest for aggressive strategic
maneuvers.

2.3.3 Accurate Measurement of Performance

Reporting based on accurate and timely information helps companies measure the
performance of their processes. Business Intelligence helps companies make informed
decisions on strategic issues by providing crucial information on current and historical
performance of the company along with future trends, expected demands and customer
behavior. Business Intelligence teams ensure that the company receives real-time advanced
reports to ensure that the company can efficiently utilize the information at hand to better
manage the business (Lyoob, 2012). Performance management is a key factor in getting the
whole organization aligned and mobilized to reach higher heights and work collaboratively
together to deliver results (Storey & Holti, 2013). Chapman (2016) states that increasingly
performance management is being done by effective IT systems. He states that elements of an
effective performance system include; a good communication strategy, measuring
performance in real time, must offer an integrated project management capability, and must
acknowledge and enable emotional contracting with all staff, which is exceptionally vital for
linking or aligning individual commitment and activity to the attainment of organizational
plans.

According to SARM (2016), an organization can streamline its knowledge gaps by doing risk
convergence. Risk convergence is the process of integrating different risk domains within the
business model which have traditionally been handled separately. These are areas such as
strategic and reputational risk, health and safety, major project risk and business opportunity
identification. Risk convergence help streamline risk management processes, making them
more effective, efficient, and consistent. It also brings all risk and opportunity information
together to provide the basis for better informed strategic decision making (Bekefi, Epstein, &
Yuthas, 2008). Business Intelligence by way of risk assessment can assist an organization to
document revised governance processes, in turn updating charters for existing committees
and communicating where the scope may have changed or responsibilities have moved to
new bodies (Hohnen & Potts, 2007).

2.4 Monitoring Activities on Strategy Implementation

Monitoring is an ongoing analysis of whether planned results are being achieved, so that
timely corrective action can be taken (Bennis, 2009). Data on specified indicators are
systematically collected to inform management and the main stakeholders on progress in
achieving results and in using allocated funds. Inputs, activities, outputs, outcomes and
impacts of services are regularly analyzed according to an established monitoring framework
(Schmidt & Laycook, 2016). The most important aspects of strategic leadership are shared
values and a clear vision, both of which enable and allow employees to make decisions with
minimal formal monitoring or control mechanisms (Rowe & Nejad, 2009).

However, CSDF (2016) state that a critical component of the strategic management cycle is the
monitoring and reporting of progress in achieving strategic goals. Organizations are therefore
encouraged to develop monitoring and reporting systems that collect data continuously and
report annually, at the very minimum. Monitoring and evaluation is all about learning from
what an organization is doing and how it is doing it and taking action to adjust its strategy
accordingly (Kusek and Rist 2004). Regular monitoring and evaluation help an organization to
assess how well it is doing against the set objectives and to ensure appropriate use of time
and other resources (Sustainable Development, 2016).

A key determinant of greater board effectiveness in the area of strategy is the set of metrics.
The board selects to monitor a company’s performance and health with the goal of identfying
a manageable number of metrics that strike a balance among different areas of the business
that are directly linked to value creating activities. In addition to the standard financial
metrics, key indicators should cover operations; organizational issues the state of the
company’s product markets and its position within them including the quality of customer
relationships, and the nature of relationships with external parties, such as suppliers and
regulators (Schmitz, 2012). Monitoring is not an “event” that occurs at the end of a
management cycle, but rather is an ongoing process that helps decision-makers to better
understand the effectiveness of the action or system. An effective monitoring and evaluation
programmer requires collecting and analyzing important data on a periodic basis throughout
the management cycle of a project. This process often involves collecting baseline data on
existing conditions, reporting on progress toward environmental/sustainability improvements,
making connections between actions and intended outcomes, and making mid-course
changes in program design (Union of the Baltic Cities Commission on Environment [UBCCE],
2016). According to SevOne (2016), six steps can help an organization create the fundamental
building blocks of an effective performance monitoring strategy. They are Collect, Baseline,
Alert, Report, Analyze and Share.

2.4.1 Collection of data Baseline Establishment

For accurate data collection an organization must have to collect both quantitative and
qualitative data when performing strategy monitoring (SevOne, 2016). According to the
(Union of the Baltic Cities Commission on Environment (2016) Quantitative data is
information that can be counted and measured. Mechanisms for collecting
quantitative organizational data are usually programmer-specific, such as financial
information, manufacturing output etc. Qualitative data is a more difficult measurement
of programmer success. It includes assessments of problems encountered, stakeholder
satisfaction, and unanticipated benefits. Qualitative data can give a real understanding
of the actual impact the organization’s actions is making on people’s lives. It is usually
collected through instruments such as surveys and personal interviews. In order to have
a better understanding of the successes and challenges, it is advisable to collect both
types of data (SevOne, 2016).Union of the Baltic Cities Commission on Environment
(2016) states that, performance monitoring strategy ordinarily starts with information or
data collection. If it can’t be monitored then measuring it can become a problem.

This basically refers to establishing a baseline with a historical point of performance as

the benchmark for future performance. This however has to be carefully agreed upon so
that the organization does not set its sights on underperformance or very high
performance that cannot be replicated therefore demoralizing all concerned parties.
(SevOne, 2016). Once a baseline has been established, any anomaly either positive or
negative gets flagged and raised to the attention of the relevant parties for discussion
and action. Depending on the nature of work or field of industry the organization may be
in, these alert systems may be real time or after the fact. Real time alerts may be in
highly sensitive or automated industries
E.g. manufacturing, air travel, financial anti-fraud departments etc. (SevOne, 2016).

2.4.2 Report Writing and Data Sharing

Reports can be received as automated general reports or specifically requested reports in a
form that is acceptable and in line with the policy of the organization. The closer these reports
are to real time scenario the better as this will inform the accuracy of such reports hence their
usefulness (SevOne, 2016). Data analysis and visualization may take a number of unique
forms. At the end of the day, an organization looks for actionable insight that allows it to
detect and avoid performance events before they impact end users or customers, fine tune
infrastructure to make the most of current resources and make more informed decisions
about the impact the infrastructure has on the business. Depending on the level of
automation of reports, many organizations struggle with performance analysis because their
platform fails to provide dashboards and reports that can present disparate data sources in a
single view. This makes correlation and looking for cause and effect scenarios complicated.
Providing data for the sake of data is not a productive strategy. The most important lesson to
keep in mind when it comes to sharing performance data is knowing the audience the data is
intended for. According to a World Bank Report, the Board of organizations plays a critical role
in reviewing progress and assuring that strategies are changed or adjusted as appropriate;
staff should carry out the documentation required to generate ongoing data for this
continuous review, as well as carrying out periodic monitoring and making reports to the
Board. If the organization has a planning and evaluation unit, then this unit should play an
ongoing role in monitoring progress towards goals and objectives, and analyzing reasons for
shortfalls in accomplishments (World Bank, 2016).

2.5 Chapter Summary

This chapter reviews literature on the influence of strategic leadership in strategy

implementation. The first section of the chapter discusses literature on the effect of
setting long term direction in strategy implementation of an organization; the second
section evaluates literature on the effects of informed decision making in strategy
implementation of an organization and the third section discusses the effect of
monitoring activities in strategy implementation of an organization.
 CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction

The Research methodology used in this research is discussed in this chapter elaborating
the research design, population, sampling design, data collection methods, research
procedures and data analysis methods. The chapter concludes with a chapter summary.

3.2 Research Design

Research design refers to the overall strategy that is chosen to integrate the different
components of the study in a coherent and logical way, thereby; ensuring that one may
effectively address the research problem constitutes a framework for collecting,
measuring and analyzing data. In this research, descriptive research design was adopted.
This design attempts to define a subject through collecting data and tabulating
frequencies of research variables. It answers questions such as who, what, when, where
or how much. This constitutes a plan for the gathering, estimating and examining
information. This examination received distinct exploration plan which is an
experimental technique that includes watching and portraying the conduct of a subject
without impacting it any way. Graphic exploration outline endeavors to portray a
subject, through accumulation of information and the arrangement of frequencies on
examination resources and the examination uncovers who, what, when, where or how
much (Sekaran & Bougie, 2010). Descriptive design was selected because it contributes
to high response quality and low refusal rates. It is a design that is also less time
consuming which is fit for this study (Cooper & Schindler, 2008).
The study was guided by three independent variables including how setting long term
direction affect strategy implementation in commercial banks in Kenya, determining
how informed decision making affect strategy implementation in commercial banks in
Kenya and To examine the effect of monitoring activities in strategy implementation of
commercial banks in Kenya. The independent variables investigated the perceived role
of strategic leadership in strategy implementation in Commercial Banks in Kenya.

3.3 Population and Sampling Design

3.3.1 Population
 Cooper and Schindler (2008). Describes a population is an aggregate group of elements
where references are made. This study focused on 10 KCB Group branches in Nairobi
including its head office out of the 54 branches targeting 10 managers in the branches
and 16 managers from the head office which totals the target population to 106
managers of KCB Group. The research was focused on 10 branches since they had more
line managers than the other branches in Nairobi that had only 3 managers in each
branch. In each branch there were top managers selected, middle managers, and lower
level managers. This target population provided sufficient information regarding the role
of strategic leaders in strategy implementation.

3.3.2 Sampling Design

3.3.2.1 Sampling Frame

This is a list of elements from which a sample is drawn from referring to a correct list of
population members. In this research the sampling frame comprises of all managers of
KCB Group branches selected in Nairobi. This list was obtained from the human resource
office at KCB Group head office in Nairobi and ensured that the list of managers in the
branches was current, complete and relevant for the attainment of the study objectives.

3.3.2.2 Sampling Technique

Sampling technique is the name or other identification of the specific process by which
the entities of the sample have been selected (Malhotra, 2011). This research adopted
non probability sampling technique which does not rely on chance for selection
procedures but is specific on the individuals to be selected for the research (Malhotra,
2011). The researcher adopted judgmental sampling design to obtain sample elements
for this research. The elements comprised of top, middle and lower management at the
10 KCB Group branches in Nairobi.

3.3.2.3 Sample Size

Dessel (2013) defines a Sample size as a statistical determination of a suitable group to

collect data from which can be generalized to represent an entire target population. To
obtain the minimum population sample for this study, the research conducted a census
which is deemed to be free from error and provides 100 percent surety and representative
of the population (Fluid Surveys Team, 2014). Census was the best approach for this
research since the number of managers at the branches are few thus census is the most
appropriate for this research. The research was conducted on 10 KCB Group Branches in
Nairobi inclusive of its head office. The sample size was derived from all managers at the
branches and the managers located at the head offices totaling to 126 managers as
indicated in the table below;

Table 3.1: Sample Size Distribution

Level of Management Number of Respondents
Top Management 17
Middle Management 49
Lower Management 40
Total Sample 106

KCB Group branches selected have 10 line managers in the branches. This includes the
branch manager, operations who fall under top management; cash manager, assistant
operations and credit manager who fall under middle management and lower level
managers include relationship manager, Corporate, business, retail and customer care
managers. The bank’s head office in Nairobi located on Moi Avenue has more managers
heading various departments totaling to 16 managers at the head office including; top,
middle and lower level management which influences the choice of more managers
identified for this research from the head office.

3.4 Data Collection Methods

Data Collection is an established systematic fashion that enables one to answer stated
research questions, test hypotheses, and evaluate outcomes through a process of
gathering and measuring information on variables of interest. Primary and secondary
data was used in this research. Primary data was collected using questionnaires
established as an important data collection tool (Malhotra, 2011). Primary data is argued
to provide an effective and efficient way of gathering information and short period of
time. Secondary data was collected from journals books and the internet and was used
to give an analysis of what other authors have to say about the research topic under
study. This analysis was presented in chapter two of this study. The questionnaires
entailed open ended questions that present an understanding of new ideas from
respondents and close ended questions that restricts respondents to certain categories
in their responses.

3.5 Research Procedures

Research procedure is the method for measuring variables and collecting data to test
hypothesis. Permission to carry out this research was sought from the human resource
of KCB Group at their head office in Nairobi using an official letter from USIU-Africa
research office seeking their authority to collect data. Upon approval the researcher
went ahead to carry out a pilot study to test the questionnaire on two respondents from
the bank who were not part of the final data collection process. The pilot study was
directed towards measuring the accuracy, completeness, precision and clarity of
questionnaires.

Amendments were made on the questionnaires and on an agreed date and time with
communication of the human resource manager at KCB Group who was instrumental in
communicating to the targeted respondents on taking part in the research. This was to
assure the respondents of confidentiality of information obtained. The questionnaires
were distributed to the respondents with the assistance of a research assistant. In
ensuring high response rate the respondents were reminded via email and telephone.

3.6 Data Analysis Methods

To discover useful information, suggest, conclude and support decision making is the
goal achieved through analysis of data involving a process of inspection, cleaning,
transforming and modeling data. In this research this analysis involved quantitative and
qualitative data analysis methods. According to Hoepfl (2015) quantitative research
seeks insight through a more flexible and less structured approach while Qualitative
technique refers to a research that is produced by findings not arrived at by means of
means of quantification or statistical procedures. Descriptive statistics such mean,
coefficient of variation and standard deviation were used in this chapter to analyses
data. The research also applied inferential statistics including regression, correlation and
cross tabulation. The analysis was done on Statistical Package for Social Sciences (SPSS)
software and used tables to give an understanding of the research findings at a glance.

3.7 Chapter Summary

This chapter discusses the research methodology that was used in this study to gather
information and answer the specific objectives stated in the first chapter. The research
design was descriptive in nature and the target population comprised of 106 managers
from 10 KCB Group Branches in Nairobi. Questionnaires were used to collect information
for this research and coded and entered into SPSS for analysis. Interpretation of the
analysis was then presented in chapter four.
 CHAPTER FOUR

4.0 RESULTS AND FINDINGS

4.1 Introduction

The analysis and findings of this research based on the specific objectives are presented
in this chapter. The response rate and demographic information of the respondents is
presented in the first and section respectively. The third section deals with setting long
term direction affect strategy implementation in commercial banks in Kenya. The fourth
section is on how informed decision making affect strategy implementation in
commercial banks in Kenya. The fifth section is on the effect of monitoring activities in
strategy implementation of commercial banks in Kenya and the final section is the
summary of the whole chapter.

4.2 Response Rate

A response rate is the total number of respondents or individuals participated in a study

and it is presented in the form of percentage. This study had a sample size of 106
managers working with Kenya Commercial Bank, Nairobi region.

Table 4.1: Response Rate

DISTRIBUTION
Sample Size Frequency Percentage
Participated 72 68
Non-participated 34 32
Total Sample 106 100

The study in Table 4.1 represents the response rate of the study. From the study, it is
clear that 68 percent of the respondents took part in the study while 32 percent did not
participate in the study. The study, therefore, implies that the response rate was good to
be used.

4.3 Background Information

4.3.1 Gender of Respondents

Table 4.2: Gender of Respondents

Frequency Percentage
Male 39 54.2
Female 33 45.8
Total 72 100.0
 Table 4.2 shows the gender representation of the study. From the table, it is clearly
shown that 45.8 percent of the population in the Kenya Commercial Bank limited is
female while
54.2 percent is male.

The study implies that majority of the population in management of Kenya Commercial
Bank are males. More men are likely to take leadership roles at commercial banks hence
women need to be inspired more to compete with men for leadership positions.

4.3.2 Age of Respondents

Table 4.3: Age of Respondents

Frequency Percentage
20-30 years 25 34.7
31-45 years 26 36.1
46-60 years 20 27.8
Above 60 years 1 1.4
Total 72 100.0

To show the age representation of the population in management of Commercial Bank

of Kenya, Table 4.3 was used. The table indicates that 34.7 percent represents
individuals who are between 20 to 30 years of age while those who are between 31 to
45 years are represented by 36.1 percent. The study also shows that 27.8 percent of
respondents are between 46 and 60 years of age. Those who are above 60 years are
represented by 1.4 percent.
The implication of the study is that majority of the management population working at
Commercial Bank of Kenya are between 31 to 45 years of age. People at this age feel a
sense of job security and they have more job responsibilities hence they are less likely to
leave the organization.

4.3.3 Level of Education of Respondents

Table 4.4: Level of Education of Respondents

Frequency Percentage
Valid Diploma 23 31.9
Bachelor’s Degree 25 34.7
Master’s Degree 23 31.9
Total 71 98.6
Missing 0 1 1.4
Total 72 100.0
 The level of education of the population working at Kenya Commercial Bank represented
in Table 4.4. The study categorized the level of education from diploma level, degree
level, to master level. From the table, 31.9 percent of the respondents had diploma
education,
34.7 percent had degree level of education, and 31.9 percent had masters level. The
study also shows that 1.4 percent of the respondents did not indicate their level of
education.

The findings from the study mean that managers are highly educated and that is why
they are able to make informed decision. The highly educated managers are very critical
to an organization as effective strategy implementation requires individuals who can
easily make informed decision.

4.3.4 Working Experience of Respondents

Table 4.5: Working Experience of Respondents

Work Experience
16-20 Total
2 – 5 years 6 – 10 years 11 – 15years
years
20-30 10 8 7 0 25
40.0% 32.0% 28.0% 0.0% 100.0%
Age bracket

31-45 1 8 13 4 26
3.8% 30.8% 50.0% 15.4% 100.0%
46-60 0 10 4 6 20
0.0% 50.0% 20.0% 30.0% 100.0%
Above 61 0 0 1 0 1
0.0% 0.0% 100.0% 0.0% 100.0%
Total 11 26 25 10 72
15.3% 36.1% 34.7% 13.9% 100.0%

Table 4.5 is a cross-tabulation revealing the relationship between year of experience at

Kenya Commercial Bank and age bracket of respondents. From the table, 40 percent of
management employees of 20 to 30 years of age have a work experience of 2 to 5 years,
32 percent age has a work experience of 6 to 10 years and 28 percent has work
experience of 11 to 15 years. The table also shows that 3.8 percent of managers of age
bracket 31 to 45 years have 2 to 5 years of working experience, 30.8 percent has 6 to 10
years working experience, 50 percent has 11 to 15 years working experience, and 14.4
percent has 16 to 20 years working experience.

The table still reveals that 50 percent of managers with 46 to 50 years of age have a
working experience of 6 to 10 years, 20 percent has a working experience of 11 to 15
years, and 30 percent has a working experience of 16 to 20 years. For respondents with
above 61 years of age, 100 percent has a working experience of 11 to 15 years.

The study implies that majority of the respondents (36.1 percent) have a work
experience of 6 to 10 years. This is because most employees would like to work in a
particular organization or industry for a limited number of years before changing to a
new organization or industry for new experience.

4.3.5 Cadre of Respondents

Table 4.6: Management Position of Respondents

Position within your organization
Top level Middle level Lower level
Manager Manager Manager Total
Male 13 23 3 39
33.3% 59.0% 7.7% 100.0%
GENDER
Female 0 9 24 33
0.0% 27.3% 72.7% 100.0%
Total 13 32 27 72
18.1% 44.4% 37.5% 100.0%

From the study, Table 4.6 depicts the relationship between the gender of respondents
and position within the organization. The table shows that 33.3 percent of male
respondents are on top management, 59 percent are on middle level management and
7.7 percent are on lower level management. The study also reveals that 27.3 percent of
female respondents are in middle management, and 72.7 percent of the respondents
are in lower level management.

The implication of the study is that more men are in top positions while more women
are in lower positions. More men easily take risks than their female counterpart hence
that is why they are more ambitious to lead. Also because of the cultural implications,
the society believes that men were born leaders and not women.
4.4 Setting Long Term Direction on Strategy Implementation

The aim of the study was to investigate the perceived role of strategic leadership in
strategy implementation in Commercial Banks in Kenya. The study sought information
from financial capability, effectiveness, reporting process, leadership, human resource,
goals, and objectives among others. The study used standard deviation (S.D) to rank the
significance of the variables.

The study sought to establish how setting long term direction affects strategy
implementation in commercial banks in Kenya. Standard deviation was the statistical
tool that was used to rank the significance of the long term direction in strategy
implementation in Kenya Commercial Bank starting from the highest significant to the
lowest significant factors. The lower the value of standard deviation the higher the
significance and vice versa.

Table 4.7: Long-Term Direction and Strategy Implementation

Mean Std. Deviation
Financial capability of the firm is considered while
4.778 0.419
setting long term goals
There is an effective reporting processes to reinforce
4.458 0.502
team goals
Leaders set objectives of the company 4.292 0.542
The human resource planning needs are addressed 4.625 0.701
There is use of debt levels to signal solvency of the
4.278 0.655
bank in the market
The company is more customer focused due to effective
4.375 0.701
goals set
Leaders develop strategies in an organization 4.333 0.732
The IT Strategy is aligned to the long-term strategy of
4.278 0.755
the company
Leaders develop the strategic vision 3.986 0.880
Leaders set goals of the company 3.958 0.985

The study in Table 4.7 reveals that financial capability of the firm is considered while
setting long term goals. When the mean range is analyzed on the likert scale it provides
a mean range of 3.958-4.778. The mean range shows that long term direction has a big
impact on strategy implementation. The standard deviation range is from 0.419-0.985
and this shows little to no variation from the mean.
4.4.1 Model Summary of Long-Term Direction and Strategy Implementation

Table 4.8: Model Summary of Long-Term Direction and Strategy Implementation

Std. Error of the
Model R R Square Adjusted R Square Estimate
a
1 .544 .296 .286 .41121
a. Predictors: (Constant), Long term Direction

When predicting the value of a variable based on the value of another variable, a model
summary is used. The variable being predicted in this case is called the dependent
variable. The variable being used to predict the other variable's value is called the
independent variable.

Table 4.8 depicts the model summary of the study. The model summary provides
information about the regression line’s ability to account for the total variation in the
dependent variable. From the table, the value of R2 is 0.296, which means that 29.6
percent of the total variance in strategy implementation has been explained by
variability in long- term direction.

4.4.2 Annova of Long-Term Direction and Strategy Implementation

Analysis of Variance (ANNOVA) is a statistical method used to test differences between

two or more means.

Table 4.9: Annova of Long-Term Direction and Strategy Implementation

Mean
Model Sum of Squares Df Square F Sig.
1 Regression 4.983 1 4.983 29.471 .000b
Residual 11.837 70 .169
Total 16.820 71
a. Dependent Variable: Strategy Implementation
b. Predictors: (Constant), Long-term Direction

The regression model, as indicated in Table 4.9 predicted the outcome variable significantly
well. This is shown at the "Regression" row and at the Sig. column. This indicates the statistical
 significance of the regression model that is applied. For this case, P is 0.000 which is less than
0.01 and indicates that; overall, the model applied is significantly good enough in predicting
the outcome variable.

4.4.3 Coefficients Variation of Long-Term Direction and Strategy Implementation

Table 4.10: Coefficients Variation of Long-Term Direction & Strategy

Implementation
Unstandardized Standardized
Coefficients Coefficients
Std.
Model B Error Beta t Sig.
1 (Constant) 1.207 .562 2.146 .035
Long-term .702 .129 .544 5.429 .000
Direction
a. Dependent Variable: Strategy Implementation

Table 4.10 shows the coefficients that provided the information on the predictor
variable. The coefficients provided the information necessary to predict strategy
implementation basing on long-term direction.

From the table, standardized beta coefficient is 0.544 and is significant at 0.000. It means that
a unit change in the long term direction causes a change of 0.544 of change in strategy
implementation. The study shows that long term direction has a positive impact on strategy
implementation.

4.5 Informed Decision Making on Strategy Implementation

Table 4.11: Decision Making
Std.
Mean Deviation
The organization exploits revenue opportunities to boost top 4.236 0.517
line results
Business strategies are linked to the market, competitors to 4.722 0.676
drive value
There is timely reporting to aid in measuring the performance 3.986 0.593
of the processes at the organization
The organization relies on business intelligence to reduce 4.472 0.712
operational costs
There is accurate reporting to aid in measuring the 3.944 0.785
performance of the processes at the organization
The organization has adopted board tools, governance 4.069 0.909
workflow to make decisions
Business strategies are linked to operational forces to drive 4.111 0.943
value
There is evidence based decision making at the organization 3.972 0.919
The Organization has adopted board tools, strategic analysis to 3.764 0.986
make decisions
Table 4.11 shows how informed decision making helps in strategy implementation in Kenya
Commercial Bank. From the table, the study confirms that the organization exploits revenue
opportunities to boost top line results.

Table 4.11 provides a mean range of 3.764 – 4.722. The mean range reveals that
informed decision making highly affect strategy implementation. On the other hand,
standard deviation range is from 0.517 – 0.986. This also shows that strategy
implementation is highly affected by informed decision making.

4.5.1 Model Summary of Informed Decision Making and Strategy Implementation

Table 4.12: Model Summary of Informed Decision Making and Strategy
Implementation
Adjusted R
Model R R Square Square Std. Error of the Estimate
1 .530a .281 .271 .41554
a. Predictors: (Constant), Informed Decision Making

From Table 4.12, the value of R2 is 0.281, which means that 28.1 percent of the total
variance in strategy implementation has been explained by variability in informed
decision making.

4.5.2 Annova of Informed Decision Making and Strategy Implementation

Table 4.13: Annova of Informed Decision Making and Strategy Implementation
ANOVAa
Sum of Mean
Model Squares Df Square F Sig.
1 Regression 4.733 1 4.733 27.408 .000b

Residual 12.087 70 .173

Total 16.820 71
a. Dependent Variable: Strategy Implementation
b. Predictors: (Constant), Informed Decision Making

Table 4.13 indicates the statistical significance of the regression model that is applied.
For this case, P is 0.000 which is less than 0.01 and indicates that; overall, the model
applied is significantly good enough in predicting the outcome variable.

4.5.3 Coefficients Variation of Informed Decision Making and Strategy

Implementation
Table 4.14: Coefficients Variation of Informed Decision Making & Strategy
Implementation
 Model Unstandardize Standardized T Sig.
d Coefficients Coefficients
B Std. Error Beta
(Constant) 2.396 .357 6.705 .000
1
Informed Decision Making .450 .086 .530 5.235 .000
a. Dependent Variable: Strategy Implementation

The dependent variable is strategy implementation and independent variable is the

informed decision making. According to the above result, the standardized beta
coefficient is 0.530 and is significant at 0.000. This means that when informed decision
making changes by a unit, strategy implementation changes by 0.530. There is high
significant relationship between informed decision making and strategy
implementation.

4.6 Effect of Monitoring Activities on Strategy

Implementation Table 4.15: Monitoring Activities

Std.
Mean Deviation
The company has a monitoring system to collect data 4.24 .517

The company’s strategy is aligned to its activities and 4.10 .675

projects
Review is an ongoing process of ,continuous 4.46 .502
improvement
The company has an effective monitoring program 4.43 .499
The company has a reliable record-keeping system to 4.38 .568
provide information to managers
The company takes action on its strategy by evaluating 4.39 .491
their work
The company has a reporting system to report data 3.97 .530

The study aimed at examining the effect of monitoring activities in strategy

implementation of commercial banks in Kenya. The study sought information from
company strategy, evaluation, and monitoring among others.
From the table above, the mean range of 3.97 – 4.46 is depicted. From this mean range,
it is learned that monitoring activities during strategy implementation highly affect the
implementation process. The standard deviation range varies from 0.491 – 0.675. The
 range variation means that monitoring activities is very important as it highly impact on
strategy implementation.

4.6.1 Model Summary of Monitoring Activities and Strategy Implementation

When predicting the value of a variable based on the value of another variable, a model
summary is used. The variable being predicted in this case is called the dependent
variable. The variable being used to predict the other variable's value is called the
independent variable.

Table 4.16: Model Summary of Monitoring Activities and Strategy Implementation

Model Summary
Adjusted R Std. Error of
Model R R Square Square the Estimate
a
1 .447 .200 .189 .43842
a. Predictors: (Constant), Monitoring Activities

From Table 4.16, the value of R 2 is 0.200, which means that 20.0 percent of the total
variance in strategy implementation has been explained by variability in monitoring
activities.

4.6.2 Annova of Monitoring Activities and Strategy Implementation

Table 4.17: Annova of Monitoring Activities and Strategy Implementation

ANNOVAa
Sum of Mean
Model Squares Df Square F Sig.
1 Regression 3.365 1 3.365 17.505 .000b
Residual 13.455 70 .192
Total 16.820 71
a. Dependent Variable: Strategy Implementation
b. Predictors: (Constant), Monitoring Activities

The regression model, as indicated in Table 4.17 predicted the outcome variable
significantly well. This is shown at the "Regression" row and at the Sig. column. This
indicates the statistical significance of the regression model that is applied. For this case,
P is 0.000 which is less than 0.01 and indicates that; overall, the model applied is
significantly good enough in predicting the outcome variable.
4.6.2.1 Coefficient of Variation of Monitoring Activities and Strategy Implementation

Table 4.18: Coefficient of Variation of Monitoring Activities & Strategy Implementation

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta T Sig.
1 (Constant) 1.597 .636 2.510 .014
Monitoring .622 .149 .447 4.184 .000
Activities
a. Dependent Variable: Strategy Implementation

Table 4.18 provides the information on each predictor variable. This provided with the
information necessary to predict how strategic leadership can enhance strategy
implementation in Kenya Commercial Bank.

Standardized beta coefficient is 0.447 and is significant at 0.000. It means that a unit
changes in the activity monitoring causes a change of 0.447 of change in strategy
implementation. The study shows that activity monitoring has a positive impact on
strategy implementation.

4.7 Chapter Summary

This chapter has provided the results and findings with respect to the data given out by
the respondents from Kenya Commercial Bank. The chapter provided analysis on the
response rate, background information, company’s long term direction, informed
decision making and monitoring activities in strategy implementation in Kenya
Commercial Bank. The next chapter provides the summary, discussions, conclusions and
recommendations.
 CHAPTER FIVE

5.0 CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This section presents the discussion, conclusion and recommendation of the study. The
chapter presents the summary of the study in the first part of the chapter followed by a
discussion, a conclusion and recommendations of this study.

5.2 Conclusions

The study concludes that the financial capability of the firm is considered while setting long
term goals hence effective reporting processes reinforce team goals. Leaders develop the
strategic vision, set goals of the company and also set objectives of the company. The study
found that when an organization is good strategic vision, goals and objectives, the human
resource planning needs are addressed. The study also concludes that leaders develop
strategies in an organization. Due to latter, there is use of debt levels to signal solvency of the
bank in the market. The study found that the company is more customer focused due to
effective goals set. The study concludes that the foundation of a good company is when the
Information Technology Strategies are aligned to the long-term strategy of the company.

From the study it was concluded that informed decision making enhances strategy
implementation process. The study concludes that the organization exploits revenue
opportunities to boost top line results. Due to this, business strategies are linked to the
market and competitors to drive value. The study also concludes that there is accurate and
timely reporting to aid in measuring the performance of the processes at the organization.
The organization relies on business intelligence to reduce operational costs hence business
strategies are linked to operational forces to drive value. The study concludes that the
organization has adopted board tools and governance workflow to make decisions hence
there is evidence based decision making at the organization. The Organization has also
adopted board tools and strategic analysis to make decisions.
5.3 Recommendations

The study recommends the management of banks and other organizations to enhance
financial capability of their firms as it is considered while setting long term goals. The
study found that an effective reporting processes reinforce team goal hence it
recommends its adoption in organizations. Leaders are recommended to develop
achievable strategic vision, set good goals and objectives of the company as it helps
organizations to focus on long term directions during strategy implementation. Leaders
develop strategies in an organization that helps address human resource planning needs.
The study also found that there is use of debt levels to signal solvency of the bank in
the market hence the study recommends companies to be more customer focused due
to effective goals set. The study also recommends the use of debt levels to signal solvency
of the bank in the market and that the IT Strategy is aligned to the long-term strategy of
the company.

The study was only carried on one commercial bank (Kenya Commercial Bank). Further
researches should investigate the perceived role of strategic leadership in strategy
implementation in more commercial banks in Kenya and compare the relationships.

Future scholars should assess critical management factors that enhance strategy
implementation in organizations.

41
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APPENDICES
APPENDIX 1: LETTER TO THE RESPONDENTS

Dear Participant;
RE: RESEARCH DATA COLLECTION ON THE INFLUENCE OF STRATEGIC
LEADERSHIP IN STRATEGY IMPLEMENTATION IN COMMERCIAL BANKS

I am a student taking Diploma in Banking and Finance at Embu College of Professional

Studies. As partial fulfillment of my certificate in Diploma, I am conducting a research on
The Influence of Strategic Leadership in Strategy implementation in Commercial Banks.

Your organization was selected as a good case study for this research to provide ample
information for this research. The results of this study will provide commercial banks in
Kenya with data on the influence of strategic leadership in strategy implementation.

I request your participation in this research by responding to the questionnaire to the best
of your knowledge. Kindly note that any information given through this questionnaire is
confidential and only used for the purpose of this study. Your assistance and response is
much appreciated.

Yours Faithfully;
Winnefred Mumbi Kariuki.

APPENDIX 11: STUDY QUESTIONNAIRE

45
Section I: General information
Kindly tick (√) where applicable.

1. Gender: Male [ ] Female [ ]

2. Age bracket 20 – 30 [ ] 31 – 45 [ ] 46 – 60 [ ] above 61 [

3. Your level of education:

Diploma [ ] Bachelor’s Degree [ ] Master’s Degree [ ] Doctorate Degree []

4. Position within the organization :

Top level Manager [ ] Middle level Manager [ ] Lower level Manager [ ]

5. Work experience
Less than 1 year [ ] 2 – 5 years [ ] 6 – 10 years [ ]
11 – 15years [ ] 16– 20 years [ ] above 21 years [ ]

Section II: Long Term Direction

Kindly tick the extent to which you agree with the following statements on long term
direction by using a scale of 1 to 5.
(1) STRONGLY DISAGREE, (2) DISAGREE, (3) DO NOT KNOW, (4) AGREE, (5) STRONGLY
AGREE.
Statement
Strongly Disagree

Strongly Agree
Do not Know
Disagree

Agree

1. Leaders develop the strategic vision 1 2 3 4 5

2. Leaders set goals of the company 1 2 3 4 5

46
 3. Leaders set objectives of the company. 1 2 3 4 5

4. Leaders develop strategies in an 1 2 3 4 5

organization

5. The company is more customer focused due 1 2 3 4 5

to effective goals set

6. The human resource planning needs are 1 2 3 4 5

addressed

7. Financial capability of the firm is considered 1 2 3 4 5

while setting long term goals

8. There is use of debt levels to signal solvency 1 2 3 4 5

of the bank in the market

9. There is an effective reporting processes to 1 2 3 4 5

reinforce team goals

10. The IT Strategy is aligned to the long-term 1 2 3 4 5

strategy of the company

Section V: Strategy Implementation

Please indicate the extent to which you agree with the following statements on strategy
implementation using a scale of 1 to 5.
(1) STRONGLY DISAGREE, (2) DISAGREE, (3) DO NOT KNOW, (4) AGREE, (5) STRONGLY
AGREE.

Statement
Disagree
Disagree
Strongly

Strongly
Do not

Agree

Agree
Know

1. The company plans to improve programs to 1 2 3 4 5

align with corporate-level goals
2. Company resources are planned accordingly. 1 2 3 4 5

47
3. There is a control system to in place to equip 1 2 3 4 5
managers with feedback from employees
4. The company develops a management style that 1 2 3 4 5
is supportive of organizational culture
5. There is a control system in place to equip 1 2 3 4 5
managers with motivational incentives
6. There is effective communication of the strategy 1 2 3 4 5
execution process
7. The company has established organizational 1 2 3 4 5
systems
8. Company resources are allocated accordingly 1 2 3 4 5
9. The company plans to change programmers to 1 2 3 4 5
align with corporate level goals
10. There is communication between all levels of 1 2 3 5
management

48