Influence of monitoring and evaluation capacity on strategic decision-making in Dahabshiil bank, Garowe, Puntland state, Somalia

Abstract

This study examined how monitoring and evaluation (M&E) practices influence strategic management at Dahabshiil Bank in Garowe, Puntland, Somalia. M&E systems are essential tools that support informed decision-making and enable corrective actions that enhance future planning and project implementation. Research has shown that effective M&E processes can significantly influence how organizations manage their strategies. Globally, financial institutions—whether in developed or developing countries—are increasingly recognizing the importance of integrating M&E into their strategic management frameworks. At Dahabshiil Bank, several challenges related to M&E practices were identified. A key issue is the absence of a formal M&E plan, which has led to inconsistent tracking of performance indicators. Another challenge is the limited capacity of staff, as many employees lack adequate training in M&E, making it difficult to conduct thorough evaluations. Furthermore, weak communication channels have hindered the timely sharing of M&E results, limiting stakeholders’ ability to make evidence-based strategic decisions. This research aimed to achieve three main objectives: (1) to examine how M&E planning supports strategic management; (2) to assess the effect of staff training in M&E on strategic decisionmaking; and (3) to explore how the communication of M&E results influences strategic management at the bank. The study’s findings offer practical insights for Dahabshiil Bank’s leadership and contribute to broader academic knowledge in the field of strategic management and evaluation. A descriptive survey design was employed to guide the research. The study targeted 80 staff members, from which a sample of 66 was selected using Krejcie and Morgan’s formula. Simple random and systematic sampling methods were applied to ensure a fair representation. Data were collected using both questionnaires and interviews, and the responses were analyzed using SPSS version 23. Correlation and regression analyses were conducted to determine the relationships between M&E practices and strategic management. The results indicated a strong positive correlation between M&E planning and strategic management, with a Pearson correlation coefficient of 0.796 and a regression value of 0.398. Staff training in M&E showed a moderate but positive influence on strategic management, while communication of M&E findings demonstrated a strong and direct positive effect. Based on these findings, the study concludes that M&E planning, staff training, and effective communication all significantly contribute to strengthening strategic management at Dahabshiil Bank. It recommends the establishment of a well-structured M&E system aligned with the bank’s strategic goals, the provision of targeted training programs for staff to enhance evaluation capacity, and the development of a clear communication strategy to ensure that M&E findings are effectively shared with relevant stakeholders. Implementing these recommendations can enhance strategic decision-making and improve the overall performance of the bank.