Internal Factors Influencing Strategy Implementation in the Banking Sector: A Case Study of the Chase Bank

Abstract

The general purpose of the study is to establish the internal factors affecting strategy implementation at Chase bank. This study was guided by the following research questions: How does leadership style affect strategy implementation at Chase Bank? How does staff competence affect strategy implementation at Chase Bank? How does resource allocation affect strategy implementation at Chase Bank? A descriptive research was adopted because the study was aimed at collecting information from respondents on their perceptions in relation to internal factors affecting strategy implementation. The target population comprised of Managers, Heads of departments and assistant managers (who are in the operational level in their structure) in the 77 Chase bank branches where the total population was 152. Stratified random sampling method and using the rule of thumb, the study applied stratified random sampling and a quota of 50% was drawn from each strata. Out of the 76 questionnaires awarded only 71 were filled and returned giving a response rate of 93%. The first objective set to establish how leadership style affected strategy implementation and it was established that that dynamic business environment affects realization of goals and the leadership skills were critical in realization of goals. The study also revealed that relationship with employees influences goal achievement. In addition, it was also revealed that leadership commitment enhances achievement of sufficient results. The second objective set to establish how staff competence affected strategy implementation. The findings reveal that organization rarely undertake competence evaluation and analysis of the competence level of the employees revealed that a majority believed it was not very competent, while others claimed they needed training. The findings also established that talent deficiency hampered the implementation process. It was also discovered that offering rewards facilitates realization of goals, however there was uncertainty on whether staff remuneration influences attainment. The third objective set to establish how resource allocation affected strategy implementation. The findings revealed that Chase bank had a budget for strategy implementation although a majority stated that resource allocation towards strategy implementation needed improvement. Leadership commitment and monitoring resources influences attainment of results and innovative IT strategies and e-business improve competitiveness.

The study concluded that maintenance of a policy manual is necessary in the sector and needs regular updates to be up-to-date with the dynamic changes in the sector. The skills adopted by the leaders not only affect realization of goals but also influences employee’s performance. It was also concluded that competence evaluation is vital however the bank has not embraced it and this could maybe explain why the managers response that most employees are not very competent and require training. In addition, the institution is focused towards ensuring its strategies are implemented and to facilitate that a budget for the process exist. Institutions also need to adopt innovative IT strategies and e-business to guarantee improved competitiveness in the sector. The study recommended that the bank should ensure they have in place policies to help guide the firm to overcome dynamic changes in the sector. The institution needs to employ skilled employee in order to facilitate realization of goals. Chase bank also needs to embrace competence evaluation and where there is a need ensure that training programs are put in place to enhance strategy implementation. The firm also need to ensure that employee have the right skills and knowledge necessary for goal realization. The institution needs to put aside enough funds that would ensure a successful strategy implementation process. However, proper mechanisms should be put in place to ensure that the funds are used for the intended purpose. Where applicable the institutions should adopt innovative IT strategies and e-business to enhance competitiveness of the firm in the dynamic sector.