CHANGE MANAGEMENT STRATEGIES AND PERFORMANCE OF COMMERCIAL BANKS IN KENYA

Abstract

This study sought to investigate the change management strategies adopted by the commercial banks in Kenya and their effects on the performance. This study adopted a descriptive survey. This study targeted Strategic and Innovations Managers in the 43 commercial banks in Kenya. The 1st tier banks had two Strategic and Innovations Managers while the 2nd and 3rd tier banks had one manager who was based in the banks head offices. In total, there were 64 Strategic and Innovations Managers in the banks. Stratified random sampling was used to group the banks into three tiers. A census survey was adopted since the population was small and manageable. This study utilized a questionnaire to collect primary data and data analysis was done quantitatively and qualitatively by use of descriptive statistics and content analysis. Quantitative data was presented through frequency distribution, tables, percentages, mean and standard deviations. Qualitative data was presented in prose form. Data analysis tools used included statistical package for social science version 21 and Microsoft excel programme which gave statistical output in form of percentages, tabulations, means and other central tendencies. Tables were used to summarize responses for further analysis and facilitate comparison. A multivariate regression model and ANOVA was applied to determine the relative importance of each of the four variables with respect to performance of commercial banks. The study revealed that performance had a positive relationship will all the change management strategies. The study hence recommends that the institution should install systems (for instance technological) that are compatible with the change management practices. They will enable in dealing with challenges of management, roadblocks to collaboration between departments which fails the implementation of change management. The study thus recommends that change agents responsible of leading the change management practices should strive to encourage others for excellence through employees own behaviour and full recognition of high standards of behavior.