INFLUENCE OF STRATEGIC PLANNING ON PERFORMANCE OF COMMERCIAL BANKS IN KENYA: CASE OF BARCLAYS BANK OF KENYA
Nancy Nyaboke Nyanaro - Master of Business Administration Degree (Strategic Management), Kenyatta University, Kenya
Shadrack Bett - Department of Business Administration, School of Business, Kenyatta University, Kenya
ABSTRACT
Over the last five years, the banking sector globally and particularly in Kenya has performed dismally courtesy of heightened competition from other players in the financial sector, unfavourable government policies, the global financial crisis and poor strategic planning Strategic planning is a critical stage in the strategic management cycle or process. It guides the kind of strategy to be adopted, mode of formulation, implementation and monitoring and evaluation. Poor competitive strategic planning has led to some banks winding up, failing to counter competition and being rendered insolvent. This study therefore sought to investigate the effects of strategic planning on financial performance of Barclays Bank, Kenya Limited as a representative of other commercial banks in Kenya. The specific objectives of the study were to establish the effect of the managerial factors, organizational factors, strategic intent and objective setting on financial performance of selected commercial banks in Kenya. The study was anchored on the theory of strategic balancing and Resource-based view theory. The study reviewed the related literature on the study variables and research gaps established. The study adopted descriptive research design to support and meet the objectives of the research. The target population for this study was the managers of Barclays Kenya Ltd as at 31st December 2011. The sample size was 114 comprising of 10 top level managers, 34 middle level managers and 70 low level managers. Questionnaire was used as a data collection instrument. The study reasoned that administrative factors decidedly influences the monetary execution of chose banks and that there was a solid positive connection between directors helping their staff create themselves, administrators controlling their staff on the best way to do their work keeping in mind the end goal to be remunerated. Authoritative components influence budgetary profundity and access to money related administrations more than resource quality and productivity in chose banks of Kenya. Hierarchical elements assume a critical part during the time spent money related execution measures specific in the managing an account area. Strategic expectation speaks to a solidified vision of banks sought heading of development and assumes an urgent part in moulding banks’ asset allotment and capacity advancement. Particular budgetary targets organizations set for themselves can matter an extraordinary arrangement. Setting focuses on that are excessively forceful can imply that even the best endeavours go unrewarded, leaving individuals debilitated. The study recommended that banks in Kenya should set their structure of administration and suitable lines of specialist, and have clear, open lines of correspondence with their workers. Build up some imaginative positive and negative results for accomplishing or not accomplishing the procedure. Banks ought to build up a contender centre at each level through across the board utilization of aggressive knowledge. Give representatives better money related aptitudes they have to work adequately. Banks should devise better ways that can quantify a banks relative execution, set targets and gauge the likelihood of accomplishing determined focuses over various eras that enables supervisors to foresee better future course of activities. The banks ought to regularly swing to a relative evaluation of past and current execution. Contrast an organization's outcomes and those of a pertinent companion gathering and set focuses for development that convert into wanted increments in relative monetary execution.
