EFFECTS OF STRATEGIC PLAN IMPLEMENTATION ON ORGANIZATIONAL PERFORMANCE: A CASE STUDY OF NAKURU WATER AND SANITATION SERVICES COMPANY (NAWASSCO)

Abstract

The purpose of the study is to establish the effects of strategic implementation on organizational performance: a case study of Nakuru Water and Sanitation Services Company Limited. The specific objectives were to analyze the effects of leadership, structures, resource, policies and procedures on organizational performance and to measure the combined contribution of four factors (leadership, structure, policies and procedures, and resources) on organizational performance. This study employed a cross sectional survey design and used a structured questionnaire to gather data from both the management and employees of NAWASSCO. A sample of 115 employees was selected from the population of NAWASSCO using stratified random sampling technique, Mugenda and Mugenda (2003). Data were collected using structured questionnaires. Both descriptive statistics (means, modes, standard deviation) and inferential statistics (regression analysis and correlation analysis) were used in analyzing the data. The hypothesis that leadership influences organizational performance was found to have no significant effect on the organization performance of NAWASSCO. Both structure and policies and procedures were found to have significant positive influence on organization performance, while policies and procedures generally had stronger effects than structure. Resource allocation was found to have insignificant but positive effect on organizational performance. The recommendations are that NAWASSCO should undertake more leadership development activities among its staff; simplify its hierarchy structures to ensure easier information flows, more collaboration among the personnel, and teamwork; undertake policy modifications and revision of procedure manual geared towards devolving decision making and authority to staff at all levels so that they feel empowered to act in areas of their expertise for the benefit of the organization as a whole, and provide strict resource allocation accountability measures for its staff. Also to ensure resource allocations are thoroughly vetted and monitored. The areas for further research include a comparative study between a public enterprise and a private enterprise to find out best practices that can be incorporated in the other sector, as needed. Keywords: strategy, strategic implementation, formulation, organization performance, strategic planning process,