Factors Determining Successful Strategic Plan Implementation in Microfinance Institutions in Kenya: A Case of Faulu Kenya

Abstract

This study was aimed at establishing the factors determining successful strategic plan implementation of microfinance institutions in Kenya by undertaking a case of Faulu Kenya. The factors that were  studied (independent variables) include effects of proper communication on successful implementation of strategic plans, effects of management support and commitment on successful implementation of the strategic plan as well as  the effect of employee involvement/ participation on successful implementation of the strategic plan. A review of empirical studies on successful implementation of the strategic plan was done. Literature relating to dependent and independent variables was reviewed as well. The target population of the study was all the 97 permanent employees of Faulu Kenya distributed in various branches within Mt Kenya region. This study was conducted through descriptive study, research design where a sample of 48 employees and managers of Faulu Kenya was sampled using simple random sampling. A questionnaire was used to gather information and it was administered personally to respondents by the researcher. The validity and reliability of the questionnaire was determined through a pilot study that was done before the real study. In addition to the questionnaires and statistics from performance records were used to establish the factors that affect successful strategic plan implementation of microfinance institutions in Kenya. The data collected was analyzed using both qualitative and quantitative methods. The questionnaire return rate was 93.75%, which is equal to 45 respondents. The respondents had diversities in terms of age, gender, experience and educational background. On analysis, it was evident that proper communication, employee involvement/participation and management commitment affect successful strategic plan implementation of microfinance institutions in Kenya. Other than the factors under study, the effect of the external competition level of organizations, effect of employees work load and the effect of organizational structure were suggested as areas of further research.