Strategic Change Management Practices on Performance of Savings and Credit Cooperative Societies in Kiambu County, Kenya

Abstract

Achieving success in performance is a key objective in all organizations globally. Performance is crucial since it determines the future sustainability of the business. However, Savings and Credit Cooperative Organizations (SACCOs) are experiencing performance challenges while operating under an unpredictable environment. In the year 2019, 86% of the SACCOs in Kenya registered a decline of 12% and 15% in their cashflows and profitability, respectively. In addition, 37% of the loss making SACCOs have witnessed panic withdrawals leading to cashflow crunches and collapse. As a response to this scenario, SACCOs have implemented strategic change management practices to increase the chance of successful performance in an unpredictable operating environment. This study therefore sought to establish the impact of strategic change management practices on performance. The study’s general objective was to assess the influence of strategic change management practices on performance of SACCOs in Kiambu County, Kenya. The specific objectives were to determine the influence of corporate communication, strategic supervision, strategic target-setting and strategic resource allocation on the performance of SACCOs in Kiambu County, Kenya. The study was based on the dynamic capabilities theory which was complemented by Kotters theory, nudge theory, and resource-based view theory. The study utilized descriptive research design. The unit of analysis was the 14 DT-SACCOs with their head offices registered in Kiambu County. The unit of observation were five departmental managers involved in strategic change initiatives in each of the 14 SACCOs which translated to 70 respondents. The population of study was not sampled due to the small number of respondents. Primary data was collected through structured questionnaires. Secondary data was collected through a data collection sheet. To minimize ambiguities in the questionnaire, the study tested for validity using criterion predictive validity model. The reliability for the study was attained by computing the Cronbach’s alpha coefficient. Pilot study was conducted using seven respondents from Mhasibu SACCO in Nairobi County which neighbors Kiambu County. The administration and collection of data was conducted through drop-and-pick-later method. Data analysis was conducted using descriptive and inferential statistics. The presentation of data took various forms including comparative tables, percentages, frequencies, and charts. The study found that there is a positive and significant relationship between corporate communication, strategic supervision, strategic target setting, strategic resource allocation and organizational performance. The study recommends that SACCOs top leadership adopts and trains its employees on effective resource management. This would ensure that resource allocation is done in a manner that is strategic and keeps on improving the performance of the SACCOs. It’s also recommended that measures be put in place to enable employees to set strategic targets that are realistic and achievable to enable the SACCOs to realize improvement in performance.