Change Management Strategies And Performance Of Commercial Banks In Nyeri County, Kenya

To thrive in the dynamic business environment, business entities have to embrace change as it becomes due. Management of change ensures business survival and also plays a key role in keeping the competitive edge of organizations. In the backdrop of the numerous dynamic shifts characterizing the banking sector environment in Kenya, it is imperative for commercial banks to come up with a clear change management framework as change is often speedy and complex. The purpose of this study was to determine the effect of change management strategies on performance of Commercial Banks in Nyeri County, Kenya. Specifically, the study aimed to establish the effect of organisational learning, leadership, stakeholder involvement and communication on the performance of Commercial Banks in Nyeri County, Kenya. The study was guided by the following theories; The Burke-Litwin Model of Organizational Change and Performance, Kurt Lewin Three Step Change Model and Lippitt’s Phases of Change Theory. The study used census study approach which subjected all the 16 commercial banks in Nyeri County. The study specifically targeted Branch Managers, Credit Managers, Operation Managers, Accountants, Auditors, Marketing Managers, Customer Relations Managers and Human Resource Managers. The study targeted a population of 128 respondents. Primary data was collected through questionnaires which was administered using the drop and pick method. Descriptive and inferential statistics was used to analyse data. The findings of the study indicated that commercial bank leaders create a sense of urgency to reinforce the need for change. The findings of the study indicated that the commercial banks are led by a committed and greatly motivated class of leaders. The study also indicated that banks’ leaders are competent and knowledgeable enough to drive change initiatives and that banks regularly conducts training and development programs to equip the work force to handle change initiatives and peer learning is encouraged in the organisation as an important pillar to successful change introduction. The study found that banks has a well laid framework and policy to support talent management and promotion. The study concluded that to a great extent; the communication strategies used by the bank are effective in ensuring speedy, clear conveyance of information and that the organisation exploits both formal and informal communications methods to ensure efficient conveyance of change management information. The study concluded that change management in the bank life has become a common characteristics because of the desire by banks to improve performance and satisfy the dynamic needs of the stakeholders. The study recommends that employee should embrace change management strategies since it is inevitable in the banking industry and this should be done carefully and through participative leadership which would eventually results to change in plans hence improved organizational performance.