Thesis:

Influence of strategic change management practices on Performance of tier one commercial banks in Nairobi County, Kenya

The banking industry has experienced substantial transformations, including regulatory reforms, technological innovations, and heightened competition, which have driven banks to adopt strategic change management practices. Kenya’s banking industry continues to grapple with hurdles like diminishing profitability, lower returns on assets and equity, and the collapse of institutions such as Chase Bank, Imperial Bank Kenya, and Dubai Bank due to financial instability. Notably, limited research has holistically analyzed the combined effects of key strategic change management practices on commercial banks' performance in Nairobi. This study sought to assess how communication, leadership, employee training, and organizational culture affect the performance of tier-one commercial banks within Nairobi County. The main anchoring theory in this study was Kotter’s Change Model. Adopting a descriptive research design, the study focused on a target population of 463 bank managers at various levels—senior, middle, and lower tiers. The sample size was calculated using the Yamane (1947) formula and selected through both stratified and purposive sampling. Data collection involved structured questionnaires using a five-point Likert scale. Analytical methods included both descriptive and inferential statistics, with results displayed in tables, graphs, and pie charts. The study highlighted that communication, leadership, staff development, and organizational culture significantly impact the performance of tier-one banks, offering essential insights for managers and policymakers. It also recommended further investigation to enrich the strategic management literature. While communication channels exist, their effectiveness is not fully realized by all employees, necessitating improved transparency and feedback mechanisms. Leadership significantly impacts change management, goal-setting, and innovation, but inconsistencies in engagement highlight the need for more inclusive leadership strategies. Additionally, staff training enhances employee performance and adaptability, while a strong organizational culture fosters teamwork, transparency, and customer satisfaction, all of which are critical for sustained bank performance. Correlation results showed that communication had a strong positive relationship with tier-one commercial banks’ performance (r = 0.815, p = 0.000). Leadership also showed a significant positive correlation (r = 0.824, p = 0.000), while staff training exhibited a strong positive association (r = 0.781, p = 0.000). Organizational culture further demonstrated a positive link (r = 0.809, p = 0.000). Regression analysis confirmed that communication, leadership, staff training, and organizational culture jointly enhanced bank performance, with each variable significantly contributing to operational success. The study recommended enhancing communication effectiveness, strengthening leadership involvement in change processes, improving staff training relevance, and fostering an inclusive, performance-driven organizational culture to address identified gaps and improve overall bank performance outcomes.