WOLAITA SODO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

ASSESSMENT OF IMPLEMENTING STRATEGIC

PLAN IN COMMERCIAL BANK OF ETHIOPIA IN WOLAITA
ZONE, GESUBA TOWN

BY:-ALEMUDIN UBA
ID.NO: MGT/WE/011/10
A SENIOR ESSAY SUBMITTED, COLLEGE OF BUSINESS AND
ECONOMICS IN THE PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF BACHELOR OF ARTS (BA) IN
DEPARTMENT OF MANAGEMENT

ADVISOR: - ADDISU T.(Assist.Professor)

OCT, 2021
WOLAITA SODO, ETHIOPIA
ACKNOWLEDGMENT
Before all, I would like to thank my almighty God that lets me to do everything and helps me to
get this chance I would like to thank all my family members that stand beside me by finance and
ideal assistance and my gratitude to. Ato Addisu T.(Assist.Professor) my adviser, of essay who
helps me heart fully in advising supervising and directing, by giving all of his time and
concentrating on making special on research his advice and great contribution in effectiveness of
this paper. Next, I would like to thank all my friends that help me by giving me powerful moral
and appreciation in my entire road toward doing the and its successful completion.

i
 TABLE OF CONTENTS
Contents Page
Acknowledgment..............................................................................................................................i
LISTS OF ACRONYMS.................................................................................................................v
ABSTRACT....................................................................................................................................vii
CHAPTER ONE..............................................................................................................................1
1. INTRODUCTION.......................................................................................................................1
1.1. Background of the Study......................................................................................................1
1.2. Statement of the problem......................................................................................................2
1.3. Research Questions...............................................................................................................3
1.4. Objectives of the Study.........................................................................................................3
1.4.1. General Objective................................................................................................................................3
1.4.2. Specific Objectives..............................................................................................................................3
1.6. Significance of the Study......................................................................................................3
1.7. Scope of the Study................................................................................................................4
1.8. Limitation of the Study.........................................................................................................4
1.9. Organization of the Study.....................................................................................................4
CHAPTER TWO.............................................................................................................................6
2. REVIEW RELATED LITERATURE.........................................................................................6
2.1. Introduction...........................................................................................................................6
2.2. The Concept of Strategy Implementation.............................................................................6
2.3. Process of Strategy Implementation.....................................................................................6
2.4. Prerequisites of Strategy Implementation.............................................................................7
2.5. Managerial Styles and Strategy Implementation..................................................................7
2.6. Role of Managers in Strategy Implementation.....................................................................9
2.7. Factors Affecting Strategy Implementation........................................................................10
2.8. Leadership in Implementation of Strategy.........................................................................11
2.9. Information availability and accuracy in Implementation of Strategy...............................11
2.10. Technology in Implementation of Strategy......................................................................12
2.11. Empirical framework........................................................................................................13
2.12. Conceptual Framework for the Topic under Study..........................................................14
............................................................................................................................................15
CHAPTER THREE.......................................................................................................................16

ii
3. RESEARCH DESIGN AND METHODOLOGY.....................................................................16
3.1. Research Design.................................................................................................................16
3.2. Data Source and Collection Method...................................................................................16
3.3. Targeted Population............................................................................................................16
3.6. Sample Size........................................................................................................................17
3.7 Method of Data Analysis.....................................................................................................17
3.8. Ethical Considerations........................................................................................................17
CHAPTER FOUR.........................................................................................................................18
4. DATA ANALYSIS AND INTERPRETATION.......................................................................18
4.1. General Background Of Respondents................................................................................18
4.2. Descriptive Statistical Analysis..........................................................................................20
4.2.1. The challenges confronted by the commercial bank of Ethiopia in the process of implementing
strategy management in CBE.......................................................................................................................20
4.2.2. The major factors affecting implementing strategic plan in CBE.....................................................23
4.2.3. The major actions / mechanisms taken by commercial bank of Ethiopia to reduce challenges of
implementing strategy management............................................................................................................26
CHAPTER FIVE...........................................................................................................................30
5. CONCLUSION AND RECOMMENDATION........................................................................30
5.1. Conclusions.........................................................................................................................30
5.2. Recommendations...............................................................................................................31
REFERENCES..............................................................................................................................33
Appendix I.....................................................................................................................................36

iii
 LIST OF TABLE
Table Page
Table 4.1.1 Demographic Characteristics of the Survey Sample

Table 4.2.1 The Challenges confronted by the Commercial Bank of Ethiopia in the process of
implementing strategy management

Table 4.2.2. The major factors affecting implementing strategic plan

Table 4.2.3 The major actions / mechanisms taken by commercial bank of Ethiopia to reduce
challenges of implementing strategy management

iv
LISTS OF ACRONYMS

CBE Commercial Bank of Ethiopia

HR Human Resource

v
ABSTRACT
This paper demand on assessing the challenges of implementing strategy management of commercial
bank of Ethiopia. In the way to answering the basic question of the research, the study applied
descriptive research design using mixed research approach. Data was gathered through
questionnaires’, interviews and document review. To collected representative data a five point likert
scale is used and descriptive analysis with frequencies and percentage were applied during data
analysis. The findings of the research show that the implementing of strategy management is mainly
concentrated on five major challenges confronted by the organization in the process of implementing
strategy management; potentially unachievable strategy, ineffective leadership, having wrong people
in leadership position, poor alignment with administrative authority and implementing strategy
management tasks were not sufficiently defined. Additionally, the finding of research shows that The
major factor affecting implementing strategy management have four core factors Such as the
vagueness of the assignment of responsibility, inadequate down the line leadership, uncertainties,
unplanned project causes deviation in implementation. And finally it concludes that the majority
respondents agreed on the major action taken to reduce the challenges of implementing strategy
management that top management commitment, the involvement of subordinate, role of
communication, maintain an open strategy implementation process, clarify strategic goals during
strategic plan development, providing opportunity for participation, establishing creative working
environment to sustain implementing strategy management and also training. Based on the finding,
the study recommended that to have a successful implementation of strategies, Effective leadership,
Effective communication, Having the right people in leadership position, Better alignment with
administrative authority, the involvement of subordinate, reduce vagueness of the assignment of
responsibilities, the top management’s commitment. Moreover, Teamwork plays an important role
within the process of strategy implementation. Finally, the training is one of the effective way to
provide follow up to ensure employees execute new strategic lessons in their daily workflows. Key
words: strategic management.

vi
1
 CHAPTER ONE
1. INTRODUCTION

1.1. Background of the Study

The concept of implementing strategy management has been embraced worldwide and across
various sectors because of its perceived contribution to organizational effectiveness (Thompson
& Strickland, 2012). Today, organizations both public and private have taken seriously to the
practice of implementing strategy management to guide the performance of those organizations.
(Steiner, 2011) noted that the framework for formulating and implementing strategies requires a
strong backbone in the formulation process.
Implementing Strategy is a process that puts plans and strategies into action to reach desired
goals. It is what integrates strategies. Strategy implementing is a process in which all planning
and budgetary activities, policies and procedures follow the defined strategy. It may involve
some changes in organizations culture, structure as well as managerial systems. Implementation
of strategies is also called practical strategic management. (Andrews, 1971).
Implementing Strategic plan requires an integrative point of view. Not only the organizational
structure, but cultural aspects and the human resources perspective are to be considered as well.
An implementation effort is ideally a boundary less set of activities and does not concentrate on
implications of only one component, e.g. the organizational structure. It is of great importance to
integrate soft facts as well in the reflection of the implementation process. It is the consideration
of soft and hard facts together that ascertains that cultural aspects and human resources receive at
least the same status as organizational aspects. Altogether, such an integrative interpretation
allows an important scope of development for implementation activities (Rapa and Kauffman,
2005).

According to (Ansoff and MacDonnell,1990), Strategy is a set of decision-making rules for

guidance of organization behaviour. Its formulation typically produces no immediate productive
action in an organization. It is an expensive process both in terms of money and managerial time.

According to (Lippitti, 2007), when strategy fails to achieve expected results it is often because
the strategy execution was flawed. The failure to execute is a major concern of executives
because it limits organizational growth, adaptability, and competitiveness. Executives are not

1
judged by the brilliance of their strategy, but by their ability to implement it.
(Lepsinger, 2006) similarly argues that true leaders have a clear vision and are 100% committed
to pursuing it but something often goes wrong as the leaders try to bring their vision to life. He
stated that without coherent, aligned implementation, even the most superior strategy is useless.
Unfortunately, most strategic planning efforts fail during this crucial phase wasting significant
resources already invested.

Strategy process has been characterized as being highly complex, politically laden, affecting
large parts of an organization and driven by the upper level managers, (Hamel &Prahalad, 1994).
(Lippitti, 2007) argues that in the rush to act on strategy, too little attention is paid to finding the
best implementation initiatives. Shortcuts such as repackaging existing projects which appear to
support the new strategy, cannot work because while strategic plans can be copied, execution
cannot be duplicated. Execution must address the intangibles of cross functional integration,
reward systems, and cultures as well as the tangibles captured in most planning documents. For
many firms, false starts, delays and confusion characterize implementation.

1.2. Statement of the problem

Implementing strategy or strategy execution task is easily the most complicated and time
consuming part of Strategic plan. While strategy formulation is primarily an intellectual and
creative act involving analysis and synthesis, implementation is a hands-on operation and action
oriented human behavioural activity that calls for executive leadership and key managerial skills.
In addition, implementing a newly crafted strategy often entails a strategy in corporate direction
and frequently requires a focus on effecting strategic strategy, (Schaap, 2006).

The Strategic plan of an organization entails three ongoing processes; analysis, decisions, and
actions. That is strategic management is concerned with the analysis of strategic goals (vision,
mission, and strategic objectives) along with the analysis of internal and external environment of
the organization. The essence of strategic management is the study of why some firms
outperform others. Thus managers need to determine how a firm is to compete so that it can
obtain advantages that are sustainable over a lengthy period of time. (Hill, 2001)

Strategic plan is the set of decisions and actions used to formulate and implement strategies that
will provide a competitively superior fit between the organization and its environment so as to

2
achieve organizational objective. Planning or designing a strategy involves a great deal of risk
and resource assessment, ways to counter the risks, and effective utilization of resources all
while trying to achieve a signify cant purpose. (Daft, 1993)

Strategic plan allows an organization to be more proactive than reactive in shaping its own
future; it allows an organization to initiate and influence (rather than just respond to) activities
and thus to exert control over its own destiny (improved understanding of rapidly changing
environment) and it helps the organizations formulate better strategies through the use of a more
systematic, logical, and rational approach to strategic choice (sharper focus on what is
strategically important/matching resources to the demands of the environment). (Byars, L. 1984),

1.3. Research Questions

❖ What are the factors affecting confronted by Commercial Bank of Ethiopia in the
process of implementing strategic plan?
❖ What are the major factors affecting implementing strategic plan?
❖ What are the major actions / mechanisms taken by commercial bank of Ethiopia
to reduce factors affecting of implementing of strategic plan?

1.4. Objectives of the Study

1.4.1. General Objective

The main objective of the study was to assess the assessment of implementing of strategic plan in
the case of Commercial Bank of Ethiopia at head office. In addition to the main objective, the
research tries to investigate the following specific objectives

1.4.2. Specific Objectives

❖ To find out the challenges confronted by Commercial Bank of Ethiopia in the process of
implementing of strategic plan?
❖ To find out the major factors affecting implementing strategy management?
❖ To examine the major actions / mechanisms taken by commercial bank of Ethiopia to
reduces factors affecting implementing of strategic plan?

1.6. Significance of the Study

First and foremost, the findings of the study was beneficial to the academicians, as well as to the

3
commercial bank of Ethiopia to understand the factor affecting of implementing strategic plan.
Because it has examined to what extent the application of strategic plan in commercial bank of
Ethiopia enables the creation of an efficient strategic plan process, with a clear and distinctive
strategy that the organization follows, a more effective development and implementation

The result of the study was of a benefit to future researchers who was make use of the findings to
conducted further research work in the area factors affecting of implementing strategic plan. The
researcher of this study also wishes to gain significantly overwhelming new insight of the subject
matter understudy.

1.7. Scope of the Study

The scope of this study focused only on clerical employees of head office strategic planning and
management department which is the located in Wolaita zone.

In addition, implementing strategy management may be pretentious by other factor variables

other than purposefully selected variables on the study (i.e. potentially unachievable strategy,
Ineffective leadership, Lack of communication and Poor alignment with administrative
authority). Although there are many challenges of implementing strategy management variables,
this study limits itself to four major variables namely Potentially unachievable strategy,
Ineffective leadership, Lack of communication and Poor alignment with administrative authority.

1.8. Limitation of the Study

The unwillingness of management members of CBE to release information needed to enrich the
study so as to establish a strong validity and reliability. It was also with difficulty and a lot of
effort in getting back the questionnaire that was Commercial Bank Of Ethiopia is always busy and
excuses such as “I am busy and I don’t have time” as some of the comment from the
respondents. Another area of limitation to this study came from the inability of respondents to
complete and submit questionnaire on time for data to be analyzed.

1.9. Organization of the Study

This Research paper was organized and classified into five chapters. The first chapter deals with
introduction part which contains the background, the statement of the problem, research
question, objective of the study, significance of the study, Scope of the study, limitation of the

4
study and organization of the paper. The second chapter is dedicated to the theoretical review of
literature on the definition of strategic management, theories of strategic management, strategic
management process, the concept of strategy implementation, process of strategy
implementation, prerequisites of strategy implementation, management theories, the role of
manager in strategy implementation Managerial Styles and Strategy Implementation, factors
affecting strategic implementation, Challenges of implementing strategy management. Empirical
review on previous studies and conceptual framework for the topic under study. The third
chapter deals with research design and methodology of the study; it covered the approach used
on this study, research design, data source, data collection method, sampling method and method
of data analysis. Chapter four is about on estimation and interpretation of the results finally; the
last chapter of the paper gives a conclusion for study and recommendation based on the finding
of the study. Yale

5
 CHAPTER TWO
2. REVIEW RELATED LITERATURE

2.1. Introduction

This chapter is concerned with the review of relevant literature. It covers both theoretical and empirical
literature. Theoretical literature focuses on definition of strategic management, theories of strategic
management, strategic management process, and concept of strategy implementation, strategy
implementation process, factors affecting strategy implementation and the challenges of strategy
implementation. On the other hand, empirical literature lays emphasis on findings of empirical studies on
the strategic management. The relevant theories of the research with the conceptual and structural
framework are also presented.

2.2. The Concept of Strategy Implementation

Strategy implementation according to Thompson and Strickland (2008) concerns the managerial exercise
of putting a freshly chosen strategy into place, whiles strategy execution deals with the managerial
exercise of supervising the ongoing pursuit of strategy, making it work, improving the competence with
which it is executed, and showing measurable progress in achieving the targeted results.
Strategy Implementation refers to the execution of the plans and strategies, so as to accomplish the long-
term goals of the organization. It converts the adopted strategy into the moves and actions of the
organization to achieve the objectives. Simply put, strategy implementation is the technique through
which the firm develops, utilizes and integrates its structure, culture, resources, people and control system
to follow the strategies to have the edge over other competitors in the market. (Thompson and Strickland,
2008)

2.3. Process of Strategy Implementation

Managing the strategy execution process as indicated by Thompson and Strickland (2008) is primarily a
hands-on, close-to the scene administrative task that includes the following principal aspects:

1. Building an organization, that possesses the capability to put the strategies into action successfully.
2. Supplying resources, in sufficient quantity, to strategy-essential activities.
3. Developing policies which encourage strategy.
4. Such policies and programs are employed which helps in continuous improvement.

6
5. Combining the reward structure, for achieving the results.
6. Using strategic leadership.
7. The process of strategy implementation has an important role to play in the company’s success.
The process takes places after environmental scanning, SWOT analyses and ascertaining the strategic
issues.

2.4. Prerequisites of Strategy Implementation

Thompson and Strickland (2008) claim that prerequisites of Strategic Implementation which are as

follows:

• Institutionalization of Strategy: First of all the strategy is to be institutionalized, in the sense that the
one who framed it should promote or defend it in front of the members, because it may be
undermined.
• Developing proper organizational climate: Organizational climate implies the components of the
internal environment that includes the cooperation, development of personnel, the degree of
commitment and determination, efficiency, etc., which converts the purpose into results.
• Formulation of operating plans: Operating plans refers to the action plans, decisions and
the programs, that take place regularly, in different parts of the company. If they are framed
to indicate the proposed strategic results, they assist in attaining the objectives of the
organization by concentrating on the factors which are significant.
• Developing proper organizational structure: Organization structure implies the way in
which different parts of the organization are linked together. It highlights the relationships
between various designations, positions and roles. To implement a strategy, the structure is to
be designed as per the requirements of the strategy.
• Periodic Review of Strategy: Review of the strategy is to be taken at regular intervals so as
to identify whether the strategy so implemented is relevant to the purpose of the organization.
As the organization operates in a dynamic environment, which may change anytime, so it is
essential to take a review, to know if it can fulfil the needs of the organization.

2.5. Managerial Styles and Strategy Implementation

Before any strategy can be implemented, it must be clearly understood. Clear understanding of a strategy
gives purpose to the activities of each employee and allows them to link whatever task is at hand to the
overall organizational direction. Lack of understanding of a strategy is one of the obstacles of strategy

7
implementation. They point out that many organizational members typically recognize strategic issues as
important and also understand their context in generic terms. However, problems in understanding arise
when it comes to applying the strategic issues in the day-day decision-making. (Aaltonen and Ikavalko,
2011).
Once strategies have been developed, they need to be implemented. Unless they are successfully
implemented, the organization will not obtain desired results. (Bryson, 2015) states that the most
important outcome that leaders, managers and planners should aim from successful strategy
implementation is real value added through goal achievement and increased stakeholders satisfaction.
More than ever before, organizations have realized that successful strategy implementation depends on
various factors.
Although clear plans and sound organization may set the stage, a manager must also provide leadership if
the people in his/her organization are to work together to achieve its goals and mission. Aosa (1992)
noted that participating in the implementation of strategic plans varied with some companies exhibiting
high participation while others had low participation as dictated upon by their management style. In
Kenya, corporate leadership has drawn the attention of various stakeholders and organizations making
them notice.
In day to day activities, managers are people who work through other people to coordinate their activities
in order to accomplish their organizational goals (Robbins & Coulter, 2013) established that management
was a key factor in the success of strategic plans. He demonstrated that poor top- down management style
or poor vertical communication can be a cause of resistance to strategy implementation. At the same time,
he observed that top management is responsible for the provision and allocation of implementation
factors such as leadership and organizational culture in facilitating strategy implementation. It may be
argued that management of an organization strategy should not be restricted to the top managers but
managers at all levels. In fact, various authors appear to have a common theme that implementation
failures occur at middle level and lower level management (Argysis, 1989; Floyd & Wooldridge, 1992).
Successful management requires effective use of power in overcoming barriers to change. Power refers to
a leader’s ability to get things done in a way he or she wants them to be done. It is the ability to influence
other people’s behavior, to persuade them to do things that they would otherwise not have done and to
overcome resistance and opposition to changing direction. Effective exercise of power is essential for
successful leadership (Alexander L.D, 1985).

8
2.6. Role of Managers in Strategy Implementation

Many studies indicate the problem of the allocation of time between conceptual and implementation
activities in the strategic management process and suggest the existence of a disproportion in relation to
the strategy implementation stage. Most organizations devote much effort and time to create plans and
analyze the competitive situation, because such activities are relatively more secure. In turn, the
implementation is associated with a higher risk. It is primarily a real measure of the activities carried out
by managers. (Haimann.T,1978).
(Dobni, 2013) seeks the causes of implementation difficulties also in the dissonance between the
perception of the position of the organization and the effectiveness of its operations. It means that the
issue of strategy implementation becomes a serious challenge for managers. Considerations associated
with the strategy and its implementation in a natural way must concern the role played in this process by
the strategists who make decisions based on their experience, personality (including the risk propensity)
or core values. This translates into the selection of the organization development concept and the manner
of its operationalization.
As indicated critically by (Alvesson and Willmott, 2015), managers are perceived as having superhuman
powers that allow them to identify sources of competitive advantage, create the strategy and pursue
strategic objectives. The strategy implementation process alone requires extraordinary abilities, as it
appears to be a much more difficult task than the strategy formulation. In the face of the circumstances
accompanying this process, especially the rate of information exchange and analysis, it would be worth
considering a change in the current operational approach.
As suggested by (Rylander and Peppard, 2013), a standard planning approach to the strategy
implementation should be replaced by the idea of realization by instilling shared values and beliefs. That
could form a basis for the decisions about the effective use of resources. A change in competencies is also
a derivative of the changes occurring in the course of the planning process itself, which so far has been
relatively easily broken down into smaller, long-term tasks. Currently, it is rather necessary to employ
strategic thinking and thus to modify the role of the manager and adopt a bottom-up approach to the
decision-making process. This requires a number of skills from the managers, such as creating an
appropriate organizational culture and providing an adequate interpretation of the strategy.
According to (Bergeron, 2014), this also incorporates a talent strategy, i.e. the ability to use the Employee
skills and competencies that determine the possibility of achieving the objectives. Effective
implementation of strategy requires an adequate adjustment of the capabilities of the organization. This

9
applies in particular to fundamental issues such as the collective experience and knowledge of managers
and properly functioning decision-making mechanisms.
According to (Forbes & Milliken, 2014), this is also affected by the management style and the ability to
process and analyze information, which is also indirectly associated with the type of the implemented
strategy itself. Therefore, an emphasis is put on the role of managers, which includes extensive
cooperation, evaluation of emerging opportunities for building a competitive advantage and making the
right decisions based on analyses Thus, managers must assume an active executive role by involving
themselves in implementation activities.
As mentioned by Miller, Hickson and Wilson (2013) managers are supposed to have a set of diverse skills
and abilities that allow them to make strategic decisions effectively. They should also be able to conduct a
wide dialogue aimed not only at specifying the details of the strategy, but also at maintaining the
consistency of the activities. Managers, when implementing strategy, it is important to have a set of meta-
abilities, which include cognitive skills, self-knowledge, emotional resilience and personal drive.

2.7. Factors Affecting Strategy Implementation

Factors that affect strategy implementation can be categorized as leadership style, information availability
and accuracy, organizational structure, organizational culture, human resources, and technology.
Although most authors agree that these factors affect strategy implementation, each factor’s impact is at a
different level and carries a different force. Lorange (1998)

Cater and Pucko (2010) stated that human resources are becoming the key focus of strategy
implementation and reiterated that people, not financial resources, are the key strategic resources in
strategy implementation. Managers mostly rely on planning and organizing activities when implementing
strategies, while the biggest obstacle to strategy implementation and execution is poor leadership. Their
results showed that adapting the organizational structure to serve the execution of strategy has a positive
influence on performance.

Fulmer (1990) mentioned that human resources management plays an important role in the effective
implementation of strategic plans. It is important for both organization departments and employees to be
enthusiastic about the strategy implementation. Getting people involved and having a motivating reward
system will have a positive influence on the implementation of strategy. In addition, technological
advancement in terms of speedy processes and procedures, as well as design, will also make a positive

10
contribution to the successful implementation of strategies.

2.8. Leadership in Implementation of Strategy

According to Cater and Pucko (2010), while a well-formulated strategy, a strong and effective pool of
skills, and human capital are extremely important resources for strategy success, poor leadership is one of
the main obstacles in successful strategy implementation. He argued that the chief executive officer
(CEO) and top management must emphasize the various interfaces within the organization. One key
challenge in successful strategy implementation is ensuring employees’ buy-in and directing their
capabilities and business understanding toward the new strategy. Therefore, the need for effective
leadership outweighs any other factor. Beer and Eisenstat (2000) addressed this issue from a different
perspective; they suggested that in the absence of effective leadership, conflicting priorities will result in
poor coordination because employees will suspect that top management prefers to avoid potentially
threatening and embarrassing circumstances. Another aspect of leadership involves enhancing
communication within the organization.

According to Beer and Eisenstat, (2000), blocked vertical communication has a particularly pernicious
effect on a business’s ability to implement and refine its strategy. Coordination of activities, streamlining
of processes, aligning the organizational structure, and keeping employees motivated and committed to
strategy implementation are key responsibilities of the leadership.

Zaribaf and Bayrami, (2010) categorized the leadership’s importance into three key roles: managing the
strategic process, managing relationships, and managing manager training.

2.9. Information availability and accuracy in Implementation of Strategy

Information is the same of blood which streams into the organization's vessels and brings it to life.
Information systems' function in implementing process is mainly concern with internal circulation of
information and appears on environmental uncertainty phenomenon. Information ambiguity is a situation
in which problems couldn’t empirically and explicitly be understood or analyzed and gathering more data
about them is not possible. Another important matter that displays the role of information systems in
implementing strategy is managers' need to reciprocal exchange of information. It means a system that
transmits information up and downward. Management information system is one of instruments can
collect and organize data for managers in order to do their tasks. In every information system, an

11
executive information system has been recognized, which provides a fair possibility for planners and even
for formulators. One considerable point in information discussions is the role of applicable factors to
promote effectiveness and efficiency of information systems. (Cater and Pucko, 2010)

These factors are as follows:

I. The quality of information

II. Time appropriateness of information

III. Quantity of information

Accuracy is to be ensuring that the information is correct and without any mistake. Information
accuracy is important because may the life of people depend in it like the medical information at the
hospitals, so the information must be accurate. The quality of information measured by accuracy,
timeliness, completeness, relevance and if it is easy to understood by the users, so the accuracy
important for quality of information. And the accuracy represents all organization actions. To get
accurate information we need the right value. If someone gave inaccurate information, it is difficult to
find who made the mistake. There are many reasons for inaccurate information. The most common
case is when the user enters wrong value. Also inaccurate information may accrue by typographical
mistake. To avoid this mistakes the organization must find who has experience and skills for data
entry and it must use the programs which discover the typographical mistake. Inaccurate information
with the passage of time it be hard to avoided if no one update it( like the address, phone
numbers)and the information going to be more inaccurate. (Cater and Pucko, 2010)

2.10. Technology in Implementation of Strategy

Technology has had a great impact on human development and civilization expansion all through the
history. Technology can be defined as knowledge, products, processes, instruments, procedures and
systems which helps producing goods and services. Technology is at the center of systems designed for
finding customers’ needs and satisfaction. Successful implementing of strategies results from integrating
and coordination of technologic innovations, production processes, marketing, financing and personnel.
By this means defined goals are achieved. (Mitchell, 1992) emphasizes on the importance of relationship
between main goals and operational targets of organization and its technological strategy. There should be

12
a wide consensus of opinion among technical, commercial, and official departments of any organization.
Mitchell presents a few questions which both technical and commercial strategic planners should respond:

1- How much is the relationship between technology and business?

2- Which commercial strategies need technology?

3- How it (technology) can be gained?

4- Researches should be focused on what kind of technologies?

5- What are our main technologies for business?

6- Which new strategic options designate technologies?

2.11. Empirical framework

Those previous researches are relevant to this study is about the Implementation of strategic management
Such as:
Strategic Planning and Implementation Challenges Faced by Public Entities; this dissertation
investigated the challenges experienced by a number of public entities when undergoing strategic
planning. The study also explored the techniques employed to overcome these challenges. The outcomes
of the research, revealed specific strategic planning challenges and techniques that are relevant to the
public sector. A formulated strategy takes into account the external factors that have a significant impact
on the organization, analyses the internal strengths and weaknesses of the organization, defines the
organization’s goals and ways to achieve the set goals, the strategy implementation method, as well as the
means for the measurement and evaluation of the implementation of goals. It is very difficult for an
organization which does not apply strategic planning to measure a degree of implementation of the goals
as well as work efficiency. Such organizations run their business in an unstructured manner, without
serious plans and that often leads to high costs and produces very little results. (MalehoNkomo, 2009)
The challenges faced in effective implementation of strategic plans in non-governmental
organizations in kenya ; this study produced tests that proved there is a high significance between
implementation of strategic plans and management styles and that management styles can pose a major
challenge in the implementation of strategic plans in NGOs in Kenya.In order for strategy implementation
to occur the strategic plans need to be endorsed by their leaders this act alone makes the followers carry

13
on regardless of what they are required to do. The results revealed that greater obstacles to strategy
execution in the forms of inadequate management skills, lack of ownership of a strategy or the steps of
execution among key employees and employee’s reluctance to share their knowledge have a negative
influence on performance. The most managerial problems have physical, psychological, social and
economic aspects. The ownership and involvement of the top management extends beyond strategic
planning stage and include actual implementation process by which the planned strategies are actualized.
This enables the management team’s overall ability to work together for a common goal and also to tap
into the individual entrepreneurship skills of these team managers. (Irene N. Mutunga, 2017)

2.12. Conceptual Framework for the Topic under Study

This study tried to examine the challenges of implementing strategy management in commercial bank of
Ethiopia. It situates the topic under study within prior theoretical and empirical studies and explains key
constructs and terms. Referring various theoretical and empirical studies, the following self-developed
conceptual framework is constructed. The selection of the variables under each category has been made
as per the identified research gaps and according to the research question under study.

Figure 2.1 Conceptual Framework

Strategic
Plan

t 'r

Implementation

Major Challenges
Effect/ outcome
— T

*Potentially unachievable
strategy Negative
ineffective Leadership
*Lack Of Communication
*Poor alignment with
administrative authority

14
 v )
Source: the researcher’s work

Strategic management involves the formulation and implementation of the major goals and initiatives
taken by an organization's top management For the purpose of this study Strategic management is focused
on the challenges of implementing strategy management of the organization (CBE).
In order to explain the challenges of Implementing strategy management, four important challenges of
Implementing strategy management variables have been taken and this include; potentially unachievable
strategy, Ineffective leadership, Lack of communication and Poor alignment with administrative authority
The result of those variables will be no positive effect only negative effect of implementing strategy
management. As a result, negative challenges of implementing strategy will be expected to the failure in
which the organization is adopted.

15
 CHAPTER THREE
3. RESEARCH DESIGN AND METHODOLOGY

3.1. Research Design

This study was adopted a descriptive research design. This research design allows a researcher to used
both qualitative and quantitative data to find out what are the challenges of implementing strategy
management. Descriptive research design is also appropriate to collected quantitative information that can
be tabulated along a continuum in numerical form and it involves gathering data that describe events and
then organizes, depicts, and describes the data collection.
In order to satisfy the objectives of the research under study, both qualitative and quantitative approaches
(mixed research approach) is employed. Mixed research approach is best suited to grasp the advantages of
both research approaches. Qualitative approach was found to be suitable of explaining the association or
relationship between the challenges and implementing strategy management. On the other hand,
quantitative research approaches was used to gather data in the form of structured questionnaire.

3.2. Data Source and Collection Method

There are many methods used to gather data, each with its own strengths and weaknesses. Important
sources of primary data for this study are collect through survey (questionnaire). In order to get the data
necessary for the study, both primary and secondary data source will be employed. In order to gather
secondary sources of information, CBE (Commercial Bank Of Ethiopia) human resource (HR)
management policies and reports, annual reports, CBE working procedure and manuals, magazine, books
and journals and previous researches was used.

3.3. Targeted Population

Commercial Bank of Ethiopia is the target of this study. The main reason of this bank chosen rather than
other company because the respondents and the necessary data are available. According to the data
obtained from human resource department of CBE, the total number of employees in strategic planning
and management department is 50. For the sake of this study, the target population is 50 permanent
clerical employees at head office strategic planning and management department. This department is
chosen due to the relevant to this study. Therefore, it’s enough to represent the population. And due to the
above reason and availability of relevant data this department is chosen due to long enough to provide
adequate analysis and investigation to the study the researcher interested on this population.

16
3.6. Sample Size

The sample size is the actual respondents representing the total target population. After determining the
target population for the study. Thus, the sample size for this particular research study is 50.

3.7 Method of Data Analysis

In this study the data was analysed both quantitatively and qualitatively using descriptive procedures that
was collected from questionnaire. For analyzing demographic data, descriptive data analysis method was
employed. And it’s analyzed by using tables that contain respondent’s answers frequency of their selected
option and percentages. After data were gathered through the employed methods, it was encoded,
processed, analyzed and interpreted.

3.8. Ethical Considerations

Ethical clearance and permission obtained from the institutional review board college of Business and
Economics of Wolaita sodo University, Ethiopia. Permission is also granted from the CBE through
formal letter. Participation in the study is on the voluntary basis and participants are asked for willingness
before they are provided the questionnaire. The subjects are also assured that their responses use only for
the purpose of the study. An attempt is made first to explain the objectives and significance of the study
to the respondents. Name and other identifying information are not used in the study. The researcher
safeguarded all information related to the participants. Their privacy, identity and confidentiality are
maintained by assigning them code numbers instead of names (anonymity).

17
 CHAPTER FOUR
4. DATA ANALYSIS AND INTERPRETATION
This chapter presents the responses from target respondents who formed the sample of the study whose
main objective was to determine the challenges of implementing strategy management in the case of
commercial bank of Ethiopia. The nature of the information obtained from the questionnaire was
descriptive. Descriptive statistics were therefore used to analyze the data. These included the calculation
percentages and frequencies to measure and compare the outcomes.

4.1. General Background Of Respondents

In this section, the general characteristics of the respondents were presented in the following consecutive
Tables 4.1.1. In The table, the sex and age of respondents, their educational qualifications, work
experience and employment category of respondents was presented. Description using cross tabulation
has been deliberately selected to display the inclusion of the respondents with varies profile.

Table 4.1.1 Demographic Characteristics of the Survey Sample

18
Variables Frequenc Percent
y
Gender Male 33 66
Female 17 34
Total 50 100
Age <25 5 10
26-35 39 78
36-45 5 10
46-55 2 4
>60 1 2
Total 50 100
Educational qualification BA/BSC degree 35 70
Masters 15 30
Total 50 100

<3 years 10 20
3-7 years 28 56

working experience 8-12 years 7 14

> 12 years 5 10
Total 50 100
Non-manager 41 82
employment category supervisory/m anager 9 18
Other 4 2
Total 50 100
(Source: researcher survey, 2021)

All the survey respondents were full-time service workers. The demographic characteristics of the survey
sample were evenly distributed among male and female worker. It was notable male worker constituted a
clear majority of the frontline workforce profiled in this thesis. As observed in Table over two-thirds of
the sample 66% were male respondent; and 34% were female.
According to the above table 4.1.1, age category of the respondent shows highly dominated by youngsters
between ages 26-35 which accounts more than half of the respondents 78% followed by 10% of the

19
respondents are between the age of <25 and between 36-45, while age group of 46 55 and above 65
constitutes 4% and 2% respectively. This indicates that most of the employees are young and highly
implies CBE’s employment trend focuses on new and young employees.

Regarding to the employee education qualification, the above table 4.1.1, clearly indicated that majority
of the work forces 70% acquired their first degree and the rest Master Degree holders constitute 30% of
the respondent. This shows that majority of the employees are degree holders because the company
adopted a recruitment policy of young fresh graduate and a minimum of bachelor degree is required to
join the workforce of CBE.

Majority of the respondents 20% joined CBE as new comers for the company from the last three years
and 56% of the respondents spent their employment time for 3-7 years with the organization. There are
also employees who served the bank for 8-12 years are about 14% and only 10% of the respondents
served the bank and spent their life with CBE above 12 years. Therefore, the sample is more of from
employees that joined CBE in the last seven years.

Regarding to the employee education qualification, the above table 4.1.1, clearly indicated that majority
of the work forces 82% were working in Non-Manager Position and supervisory/manager
were 18% while the rest 2% were working in supervisory/manager and other positions. Therefore, the
sample is more of from employees that working in Non-managerial position.

4.2. Descriptive Statistical Analysis

In this analysis of response, each specific variable are compared. The degree of satisfaction or
dissatisfaction of the respondents for each statement is also analyzed by summarizing the five point Likert
scale response in to three. Which is done by consolidating the satisfied and very satisfied responses in to
one positive response (i.e. satisfied), dissatisfied and very dissatisfied responses in to one negative
response (i.e. dissatisfied) and the neutral response is taken as it is.

20
4.2.1. The challenges confronted by the commercial bank of Ethiopia in the process of
implementing strategy management in CBE

Table 4.2.1 The Challenges confronted by the Commercial Bank of Ethiopia in the process
of implementing strategy management

Challenges Response Frequency Percent

Disagree 6 12%
Neutral 0 0
potentially unachievable strategy
Agree 44 88%
Total 50 100%
Disagree 10 20%
Neutral 0 0%
ineffective leadership
Agree 40 80%
Total 50 100%
Disagree 39 78%
Neutral 5 10%
Lack of communication
Agree 6 12%
Total 50 100%
Disagree 33 65%
Lack follow through on implementing Neutral 11 22%
those strategies Agree 6 12%
Total 50 100%
Disagree 8 16%
Having the wrong people in leadership Neutral 3 6%
position Agree 39 78%
Total 50 100%

21
 Disagree 11 22%
Poor alignment with administrative Neutral 2 4%
authority Agree 37 75%
Total 50 100%
Disagree 14 28%
implementing strategy management Neutral 0 0%
tasks were not sufficiently defined Agree 36 72%
Total 50 100%
Disagree 33 66%
Neutral 27 54%
Insufficient financial resources
Agree 6 12%
Total 50 100%
Disagree 43 86%
Constraints in methods of obtaining Neutral 0 0%
financial resources Agree 7 14%
Total 50 100%
(Source: researcher survey, 2021)

The above Table 4.2.1 shows, 88% of the respondents agree on the topic that allocated with they
were satisfied with the topic the challenges confronted by the organization in the process of
implementing strategy management in CBE was potentially unachievable strategy. The result showed that
CBE are try to accomplish seemingly unrealistic and impossible goals. And it implies that CBE needs to
work on this issue. 80% of the respondents agree on the topic that allocated they were satisfied with the
topic the challenges confronted by the organization in the process of implementing strategy management
in CBE was ineffective leadership, this shows leaders make orders and give instructions that are
enigmatic and misguided. Ineffective leaders have lack the courage to tackle difficult problems, often
shifting blame to others.Along with 78% of the respondents agree on the topic that allocated they were
satisfied with the topic the challenges confronted by the organization in the process of implementing
strategy management in CBE was having the wrong people in leadership position. The result showed that
CBE does hire and delegate the wrong people to leadership position, identify those who have a no passion
and ability for leadership and also 75% of the respondents agree on the topic that allocated they were
satisfied with the topic the challenges confronted by the organization in the process of implementing
strategy management in CBE was poor alignment with administrative authority. It implies that
administrative authorities are tempted to invoke this provision even where they have acted in a
completely unacceptable manner. An administrative authority that has acted in a palpably unlawful or

22
blatantly unreasonable manner cannot be an excuse for acting unlawfully or unreasonably. The other
highest response rate from the analyzed data was 72% of the respondents agree on the topic that allocated
with the challenges confronted by the organization in the process of implementing strategy management
in CBE was implementing strategy management tasks were not sufficiently defined and they were
satisfied with the topic. The result implies that the most common reasons why implementation of the
strategies are unsuccessful because the employees do not fully understand the strategy.
On the other hand, 78% of respondents disagree on the topic that allocated they were dissatisfied. With
the topic the challenges confronted by the organization in the process of implementing strategy
management in CBE was lack of communication it implies that CBE have good communications. Good
staff communication is essential to business success.65% of respondents disagreed on the topic the
challenges confronted by the organization in the process of implementing strategy management in CBE
was lack of follow through on implementing those strategies and there were dissatisfied with the topic
and 22% of respondent’s neutral (neither agree nor disagree). And also 66% of respondents disagree on
the topic of that allocated they were dissatisfied with the challenges comforted by the organization in the
process implementing strategy management in CBE was insufficient financial resource. The results imply
that this bank doesn’t have a problem related with finances and lastly, constraints in method of obtaining
financial resource 86% of respondent disagree and there were dissatisfied.

23
 4.2.2. The major factors affecting implementing strategic plan in CBE
Table 4.2.2. The major factors affecting implementing strategic plan
Major factors Response Frequency Percent

The vagueness of the assignment of Disagree 11 22%

responsibility Neutral 0 0%
Agree 39 78%
Total 50 100

Poor coordination on implementing strategy Disagree 37 74%

Neutral 0 0%
Agree 13 26%
Total 50
100
Inadequate down-the-line leadership skills Disagree 11 22%
Neutral 2 4%
Agree 38 76%
Total 50 100

Uncertainties Disagree 5 10%

Neutral 0 0%
Agree 45 90%
Total 50 100

Top management’s involvements were not Disagree 25 50%

communicated early enough before Neutral 12 24%
implementing strategy. Agree 13 26%
Total 50 100

Collaborate with oversight bodies during Disagree 22 44%

strategy implementation process. Neutral 13 26%
Agree 15 30%
Total 50 100

24
Adjust strategy implementation process in line Disagree 24 48%
with outside issue. Neutral 3 6%
Agree 34 34%
Total 50 100

Unplanned projects causes deviation in Disagree 5 10%

implementation Neutral 0 10%
Agree 45 90%
Total 50 100

(Source: researcher survey, 2021)

According to this section provider’s views on the major affecting implementing strategy management
in CBE. Table 4.2.2 indicate that the result of major factors affecting implementing strategy
management. 78% of respondents agreed on the topic that apportioned they were satisfied with the
topic the major affecting implementing strategy management in CBE was the vagueness of the
assignment of responsibility. It shows that One of the reasons why strategy implementation processes
frequently result in difficult and complex problems or even fail at all is the vagueness of the assignment
of responsibilities. And 76% of respondents agreed on the topic that apportioned they were satisfied
with the topic the major affecting implementing strategy management in CBE was inadequate down the
line leadership skills. This result showed that respondents seems to agree with inadequate leadership
skills of Managers and this can cause Poor leadership. It can seriously affect employee morale and even
cause the banks bottom line to plunge. Bad leadership leads to poor employee retention and
demotivates the remaining employees, causing them to be much less productive than they would
otherwise be. And also 90% respondents agreed on the topic that apportioned they were satisfied with
the topic the major affecting implementing strategy management in CBE was uncertainties can cause
the failure of implementing strategy management this result shows one of the Reasons Why Strategy
Fail but Implementing a holistic planning process. uncertainty explored the factors which cause the
failure of strategy management implementation. Considering the higher failure rates in implementation
of strategies, manage the risks inherent in the environment to reduce the effects of failure Ignoring
uncertainty may lead to strategies that are not resistant against threats. The other highest rate from
analyzed data; 90% of respondents agreed on the topic that apportioned they were satisfied with the

25
topic the major affecting implementing strategy management in CBE was unplanned projects causes
deviation in implementation. It shows that unplanned projects cause the organizations cost overruns
control tools before the solution is implemented, it is likely that the deviation during.
According to this category, 74% of respondents disagrees argued on the topic that apportioned they
were dissatisfied with the topic the major affecting implementing strategy management in CBE was
poor coordination in implementing strategy. This shows CBE have good coordination system. And
50% of respondents disagree and also 26% neutral (neither) on the topic that apportioned they were
dissatisfied with the topic the major affecting implementing strategy management in CBE was Top
management’s involvements were not communicated early enough before implementing strategy. this
improves top management have involvements these managers are a part of the strategy process. This is
certainly a prerequisite for strategy implementation. the other one is also 44% respondents disagrees
and 30% of respondents agreed and also 26% of respondents are neutral (neither agreed nor disagreed)
on the topic that apportioned they were dissatisfied with the topic the major affecting implementing
strategy management in CBE was collaborate with oversight bodies during strategy implementation. it
shows that majority of respondents of in this issue seems disagree so that CBE have weakness in that
area. collaboration is necessary to implementing strategy management, it accelerate the pace of
organization and try to attain seemingly impossible goals and nurture the desire to succeed and problem
of maintaining strategic fit and it needs to execute strategy successfully. Lastly, 48% of respondent
disagreed and 34%of respondent agreed and also 6% of respondents are neutral) on the topic that
apportioned they were dissatisfied with the topic the major affecting implementing strategy
management in CBE was Adjust strategy implementation process in line with outside line. It shows
that majority of respondents disagree on this issue. It implies that based on Adjusting strategies
implementation process considered choices and to maintain a favorable balance between the
organization and environment. It is also about thinking the best alternative in getting solution to a
certain problem under a given circumstance.

26
 4.2.3. The major actions / mechanisms taken by commercial bank of Ethiopia to reduce
challenges of implementing strategy management
Table 4.2.3 The major actions / mechanisms taken by commercial bank of Ethiopia to
reduce challenges of implementing strategy management

Major Action Response Frequency Percent

The success of any implementation of strategic Disagree 12 24%
management top management’s commitment the Neutral 0 0%
strategic trend itself Agree 38 76%
Total 50 100
The success of any implementation of strategic Disagree 9 18%
management effort depends on the level of Neutral 0 0%
involvement of subordinates. Agree 41 82%
Total 50 100
Role of communication is a key success factor Disagree 0 0%
within implementing strategymanagement Neutral 2 4%
Agree 48 96%
Total 50 100
Teamwork plays an important role within the Disagree 4 8%
process of Implementation of strategic Neutral 0 0%
management Agree 46 92%
Total 50
100
Maintain an open strategy implementation Disagree 0 0%
process Neutral 10 20%
Agree 40 80%
Total 50
100
Clarify strategic goals during strategic plan Disagree 2 4%
development Neutral 0 0%
Agree 47 94%
Total 50 100
providing opportunities for participation Disagree 8 16%
Neutral 0 0%
Agree 42 84%
Total 50 100
Establishing creativeforworking
Assign responsibility implementingto Disagree
achievingenvironment Disagree 020 0%
40%
sustain
plans implementation strategic management Neutral
Neutral 12
0 24%
0%
Agree
Agree 38
30 78%
60%
Total
Total 50 100
100
Resources required for implementation of the Disagree 4 8%
documented strategies have to readily available Neutral 0 0%
Agree 46 92%
Total 50 100
I believe that training is one of the effective way Disagree 0 0%
to provide follow up to ensure employees execute Neutral 1 2%
new strategic lessons in their daily workflows. Agree 49 98%
Total 50 100
(Source: researcher survey, 2020) 27
As is it shown at table 4.2.3 the respondent view about major actions / mechanisms taken by
commercial bank of Ethiopia to reduce factors affecting of implementing strategic plan in CBE in
CBE were distributed some uniformly. As we can see from the table 4.2.3 the first question the extant
76% of respondents agreed on the topic that allocated they were satisfied with the topic the major
actions / mechanisms taken by commercial bank of Ethiopia to reduce challenges of implementing
strategy management was success of any factors affecting of implementing strategic plan in CBE
commitment the strategic trend its self. It shows that if top management's strategic choices tend to be
successful, a successful strategic planning process will examine and make informed plans is the top
management's commitment to the strategic direction itself. Issue becomes strategic when top
management believes that how issues get decided, how decisions are implemented and also what
impacts them have, but an issue may open new arenas or issue itself are consistent with top
management's expertise. And 82% of respondents agreed on the topic that allocated they were satisfied
with the topic the major actions / mechanisms taken by commercial bank of Ethiopia to reduce
challenges of implementing strategy management was success of any implementation of strategic
management effort depends on the level of involvement of subordination contribution of individuals or
teams to the organization's strategic goals. The Employee development and empowerment effective
participation of employees/ manages Build organizational capability and successful implementation of
high- commitment Managers at all organizational levels and in all work areas. And also on role of
communication for implementing strategic management 96% of respondents agreed and 4% of
respondent disagreed. The results showed that although effective communication guarantees
organizational success, it is largely dependent on the pattern or methods of communication,
effectiveness and suitability of the channel selected, and how receptive or accessible are the superiors
to the subordinates, among other factors.
Another highest rate from this section, 92% of respondent agreed and also 8% of respondent strongly
disagreed on the topic that allocated they were satisfied with the topic the major actions / mechanisms
taken by commercial bank of Ethiopia to reduce challenges of implementing strategy management was
teamwork plays an important role within the process of implementation of strategic management. The
result showed that team work must be encouraged at workplace as it strengthens the bond among the
employees and the targets can be met at a faster pace. Workload is shared and individuals feel motivated
to perform better than his team members because Team work is essential in corporates for better output
and a better bonding among employees. It provides improved efficiency and productivity.

28
80% of respondent agreed and also 20% of respondent neutral (neither agreed nor disagreed) on the topic
that allocated they were satisfied with the topic the major actions / mechanisms taken by commercial
bank of Ethiopia to reduce challenges of implementing strategy management was maintain an open
strategy implementation process. In other words, the range of people involved in making strategy; and an
openness in terms of transparency, both in the strategy formulation and implementation stage, more
commonly, in the communication of strategies once they are formulated”.
The 94% of respondents agreed and also 4% respondent are neutral (nether agreed nor disagreed) they
were satisfied On the topic that apportioned with the major actions / mechanisms taken by commercial
bank of Ethiopia to reduce challenges of implementing strategy management was clarify strategic goal
during strategic plan development along with providing opportunities for participation 84% respondents
agreed and the rest 16% of respondents are disagreed. This result showed that providing an opportunity to
the employees for participation it helps to have successful implementing strategy process and there will
be better understanding of those strategies. Another major action to reduce the challenges of
implementing strategy management is assign responsibility for achieving plans have 60% respondents
strongly agreed and 40% of respondents strongly agreed. On the topic that apportioned they were almost
satisfied. Assigning Responsibilities to Staff it helps to accomplish the plan since employees are
ultimately responsible for reaching their goals, they need to have a strong voice in setting them. A good
management plan helps to accomplish goals in a number of ways. The other highest rate from analyzed
data; 78% of respondents agreed and also 12% of respondent are neutral (neither agrees nor disagreed) on
the topic that apportioned they were satisfied with the topic the major actions / mechanisms taken by
commercial bank of Ethiopia to reduce challenges of implementing strategy management was
establishing creative working environment to sustain implementing strategy management. It implies
Sustainability is important for strategy and better working condition. On resource required for
implementation of the documented strategies have readily available 92% of respondent agreed and also
8% of respondent disagreed on the topic that allocated with the major actions / mechanisms taken by
commercial bank of Ethiopia to reduce challenges of implementing strategy management they were
satisfy.
Lastly, 98% of respondents agreed and 2% of respondent neutral (neither agreed nor disagreed) on the
topic that apportioned they were satisfied with the topic the major actions / mechanisms taken by
commercial bank of Ethiopia to reduce challenges of implementing strategy management was the training
is one of the effective way to provide follow up to ensure employees execute a new strategic lessons in

29
their daily workflows.

30
 CHAPTER FIVE
5. CONCLUSION AND RECOMMENDATION

5.1. Conclusions

This study provided understanding of factors affecting of implementing strategic plan in CBE. Based on
the finding the study concluded the challenges confronted by the organization in the process of
implementing strategy management in CBE are potentially unachievable strategy, ineffective leadership,
having wrong people in leadership position, poor alignment with administrative authority and
implementing strategy management tasks were not sufficiently defined.

Based on the findings, the study concluded that there were various challenges affecting implementing
strategy management such as; vagueness of the assignment of responsibility, inadequate down the line
leadership, uncertainties, unplanned project causes deviation in implementation. The study concluded
success of the organization is based on the strategies and those strategies have to be properly
implemented to achieve the success of this organization.

Finally, based on the findings the major action to reduce the challenges of implementing strategy
management. The majority of employees agrees and satisfied with the actions. Such as that top
management commitment, the involvement of subordinate, role of communication, maintain an open
strategy implementation process, clarify strategic goals during strategic plan development, providing
opportunity for participation, establishing creative working environment to sustain implementing strategy
management and also training. As we can see from the findings the study concluded those action can
reduce the challenges of implementation strategic management.

31
5.2. Recommendations

 As a recommendation, the organization needs to improve to have effective implementing strategy

management, they need to have potentially achievable strategy because strategy implementation
process concern the managerial exercise of putting a freshly chosen strategy in to place, while
strategy execution deal with the managerial exercise of supervising the ongoing pursuing of
strategy, making it work, improving the competence with which is executed and showing
progress in achieving the target result. To do that the study also recommends organization need to
improve sufficiently define the tasks of implementing strategy.

 According to the respondents and interviews with managers and employees mentioned more
about, one of the most challenges of implementing strategy management is ineffective leadership.
Therefore, the study recommends, increasing the level of Effective leadership in a given
organization influences how the chosen strategies will be implemented, develop action plans for
individual initiatives within the plan, determine who is responsible for what, when it will be
started and completed, and what intermediate accomplishments are needed to achieve final
results. This will help to determine when adjustments need to be made and make progress more
apparent and better leadership. The most important point to note here is that all of the above
parameters are essential in the successful implementation of strategies in any this organization.

 The study also recommended that Effective communication is the most important ways of
Sharing the plan within the organization adapted to the Employees detailed action plans. Update
the information to reflect progress and accomplishments and improved information systems,
implementing strategies is a lot of work. Engaging more people will make it possible to spread
the workload. Those people engaged in the implementation will feel more ownership for the plan
and it changes the result. Communicating with employees concerning issues related to the
strategy implementation is frequently delayed until the changes have already crystallized. So that
effective communication aspects should be emphasized in the implementation process seems to
be a very simple one. Even though studies point out that effective communication is a key success
factor within strategy implementation.

 According to the data, the major challenges are Having the wrong people in leadership position

32
 So, instead of promoting the wrong people to leadership roles, identify those who have a passion
for leadership, and facilitate those career advancement opportunities with them.

 Another challenge of implementing strategy management is also poor alignment with authority.
So the study recommended that Better alignment with administrative authority an effective
management can be developed in a vacuum. Ensure the resulting strategies and goals of plan are
aligned with any higher level organizational goals once the strategic management is written. the
administrative authority must act within the relevant period specified by law. All administrative
authorities, no matter how high-ranking, are obliged to obey the law. If an authority acts
unlawfully, any person affected must surely have the right to approach a court of law for a ruling
that the action is illegal and of no force and effect. This is the essence of the rule of law and the
protection of the law.

33
REFERENCES

Aaltonen, P. &Ikavaiko, H. (2011).Implementing strategies successfully. A paper

presented at the Xii World productivity congress.

Alexander, L.D. (1985). Successfully Implementing Strategic Decisions, Long Range

Planning. Volume 18, No. 3 pp. 91-97

Alvesson and Willmott (2015).A Short, Practical Guide to Implementing Strategy, Journal

of Business Strategy, 26.

Andrews, K.R. (1971). The Concept of Corporate Strategy. Richard D. Irwin.

Ansoff, H. I. & McDonnell, E .J. (1990). Implementing Strategic Management. (2nded.).

Cambridge: Prentice Hall.

Aosa (1992).The Eclectic Roots of Strategy Implementation Research, Journal Argysis,

1989; Floyd & Wooldridge, 1992). Strategy Implementation: A Role of the Balanced

Score Card?

Beer and Eisenstat (2000).The Silent Killers of Strategy Implementation and Bennis, W.

(1987).Management Theory. New York: Free Press.

Bergeron, ( 2014). Execution: The Discipline of Getting Things Done.

Bryson, J.M. (2005). Strategic Planning for Nonprofit Organizations, revised edition, Jossy

- Brass Bushardt, Glascoff, and Doty (2011). Strategic Implementation

Byars, L. (1984), Strategic Management, Planning and Implementation, New York, Harper

and Row.

Carlopio, J. & Harvey, M. (2012). The Development of a Socio-Psychological Model of

Cater and Pucko (2010). Strategic Management: Cases and Concepts. New Jersey: Pearson

Education.

34
 Cole (2012).Organization Behavior and Management. New Jersey: Prentice Hall

Courtny Osborn, 2018). Strategic Management Theory: An integrated Approach, 5"’

edition. Houghton Mifflin Company

Daft. (1993), Strategic Management, Planning and Implementation, New York, Harper and

Row. Dobni, 2013) Strategy Implementation as Substance and

Eadie, D (1983) Putting a Powerful Tool to Practical Use: The Application of Strategic

Planning in the Public Sector; Public Administration Review No.43 Vol5 Elusive

Phenomenon. John Wiley &Sons. West Sussex

Floyd and Wooldridge (2014). Executing Strategic Change: Understanding the Critical

Management Elements that Lead to Success, California Management Review.

Vol 51, Issue 3

Forbes & Milliken, 2014), The Development of a Socio-Psychological Model

of Fulmer (1990). Strategic Management Concepts and Cases. New Jersey:

Prentice Hall

Haimann T. (1978). Managing the Modern Organization. Boston: Houghton

Mifflin Harcourt

Hamel &Prahalad, 1994).Strategic Management and Business Policy, 2* edition.Eastern

Washington University.

Hill, W.L. & Jones, G.R. (2001).Strategic Management Theory: An integrated Approach,

5"’ edition.Houghton Mifflin Company.in government”, CMA Magazine, Vol.

71 No. 3, pp. 20-24.

Hrebiniak, L.G. (2006). Obstacles to Effective Strategy Implementation,

Implementation. New York: McGraw Hill Professional.

35
Irene N. Mutunga, 2017, the challenges faced in effective implementation of strategic

plans in non-governmental organizations in Kenya

Johnson, (1998): Exploring corporate Strategy, Sixth Edition, Harlow, Pearson Education

Lares - Mankki, L. (1994). Strategy Implementation Bottleneck: Identification, Analysis

and Removal. Lappeenranta University of Technology in Aaltonen, P. and

Ikavalko, H. (2001).

Learning. Sloan Management Review.

Zariba and bayramif, (2010).Managerial strategic behavior in state-owned enterprises?

Business political orientations. Management Science,

36
 Appendix I

WOLAITA SODO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

Department of managemnet

Dear respondents
Dear respondents my name is Alemudin Waja. I am conducting a research. This questionnaire is
developed to collect data on the topic entitled “Assessment of Implementing Strategic Plan In;
The Case Of Commercial Bank Of Ethiopia Wolaita Zone, Gesuba Town ". It is carried out for
academic purposes, to write a paper, in partial fulfilment of the requirements for BA of Arts
degree in department of management. Moreover, it might also serves as input for policy makers
and implementers to change the situation. Filling the survey questionnaire is voluntary. Your
genuine response will provide valuable information on the topic. The information you provide is
completely confidential.

Thank you

37
GENERAL DIRECTION
Please mark your response in the space provided putting”V“mark in the boxes that most
explain your answer/s.
Questionnaire on respondent’s personal information

The following information is needed to help us with the statistical analyses of the data.
This information will allow comparisons among different employees within the
1. Gender of respondents; male[ ] female [ ]
2. Age of respondent
A, less than 25 [ ] C, 36-45 [ ]
B, 26-35 [ ] D, 46-55 [ ]
E, above 55[ ]
3. Current level of education
A, BA/BSC degree [ ] C, other (specify) [ ]
B, Masters [ ]
4. The relevant work experience in years
A, less than 3 years [ ] C, 8-12 years [ ]
B, 3-7 years [ ] D, above 12 years [ ]
5. Category of employment
A. Non-manager [ ] C. other (specify)______
B. Supervisory/manager [ ]

organization.
PART I: -Questionnaire on what are the challenges confronted by the organizations in the
process of implementing strategy management?
Please read the following sentences and indicate the degree to which you agree or disagree by
selecting the appropriate number on the following scale:
1: Strongly Disagree 2: Disagree 3: Neutral4: Agree 5: Strongly Agree

38
No Items Response

1 2 3 4 5
I believe this organization struggle’s inappropriate of
1.
potentially unachievable strategy to implement the plan
I believe implementing of strategies management frequently
2.
fails due to ineffective leadership
3.
I believe that one of the challenges of slowing the process of
implementing strategy management is lack of communication
4. I believe that one of the challenges of slowing the process of

implementing strategy management is Lack of follow

through on implementing strategy management
5. I believe that implementing of strategies management
frequently fails due to Having the wrong people in leadership
position
I believe that one of the challenge of implementing strategy is
6.
Poor alignment with administrative authority
7.
I believe implementing strategy management tasks were not
sufficiently defined
8. I believe Insufficient financial resources to execute the
strategy.

9. I believe Constraints in methods of obtaining financial

resources

❖ PART II: -Questionnaire on What is the major factors affecting implementing strategy
management?
Please read the following sentences and indicate the degree to which you agree or disagree by
selecting the appropriate number on the following scale:
1: Strongly Disagree 2: Disagree 3: Neutral4: Agree 5: Strongly Agree

39
No Items Response

1 2 3 4 5
The vagueness of the assignment of responsibility on
10.
implementing strategy management
Poor coordination on Implementing strategic management
11.
process
12. Inadequate down-the-line leadership skills
13. Uncertainties’ can cause Failure of Implementing strategy
management
14. Problems requiring top management involvement were not
communicated early enough before implementing strategy.
15. Collaborate with oversight bodies during strategy
implementation process
Adjust strategy implementation process in line with outside
16.
issue
17. Unplanned projects causes deviation in implementation

❖ PART III: -Questionnaire on What are the major actions / mechanisms taken by commercial
bank of Ethiopia to reduce challenges of implementing strategy management?
Please indicate, by selecting, the number that corresponds with the extent to which you agree or
disagree with the statements. Please answer truthfully. The scale is as follows:
1: Strongly Disagree 2: Disagree 3: Neutral 4: Agree5: Strongly Agree

40
No Items Response

1 2 3 4 5
18. The success of any implementation of strategies management
top management’s commitment the strategic trend itself

19.
The success of any implementation of strategies management
effort depends on the level of involvement of subordinates.
Role of communication is a key success factor within
20.
implementing strategic management
Teamwork plays an important role within the process of
21.
Implementation of strategic management
22. Maintain an open strategy implementation process
23. Clarify strategic goals during strategic plan development
24. providing opportunities for participation
25. Assign accountability for achieving implementing plans

26. Establishing creative working environment to support

implantation strategic management

27. Resources required for implementation of the documented

strategies have to readily available
28. I believe that training is one of the effective way to provide

follow up to ensure employees execute new strategic lessons

in their daily workflows.

29. If there are additional challenges confronted by the organizations in the process of
implementing strategy management?
30. If there are additional factors affecting implementing strategy management?

41
 Appendix II
INTERVIEW QUESTIONS ONTHE CHALLENGES OF IMPLEMENTATION STRATEGIC
MANAGEMENT IN; THE CASE OF COMMERCIAL BANK OF ETHIOPIA

PREPARED BY: Alemudin Uba

1. What are the challenges facing the implementing of strategies management adopted by

the bank?

2. What are the factor that affect the implementation process?

3. For each of the challenges mentioned in above, how has the implementing strategy

management Process been affected?

4. How has the bank been able to amend its implementing strategy implementing strategy

implementing strategy management process as per the challenges?

42