FACTORS INFLUENCING STRATEGIC PLAN IMPLEMENTATION: THE CASE OF PRIVATE BANKS IN ETHIOPIA

Abstract

This study aimed to examine the factors influencing strategic plan implementation the case of private banks in Ethiopia. To realize this objective, the study employed a questionnaire and collected data from 384 employees of nine private banks namely; Awash Bank, Dashen Bank, Bank of Abyssinia, Cooperative Bank of Oromia, Hibert Bank, Nib International Bank, Wegagen Bank, Oromia Bank and Zemen Banks. The study employed quantitative research approach and Explanatory and Descriptive research designs. The primary data analysed using descriptive (Frequency, Mean and Standard Deviations) and inferential (Multiple linear regression) statistics. The study identified six independent variables that influence strategic plan implementation. These variables are as follows; Resources Allocation, Organizational structure alignment, Organizational culture alignment, Strategic plan communication, Strategic plan cascading and Strategic plan monitoring and evaluation. The finding of the study revealed that Resources allocation; Organizational structure alignment, Strategic plan cascading and Strategic plan monitoring and evaluation were significantly influence on the Strategic plan implementation. Whereas, Organizational culture alignment and Strategic plan communication were not significantly influences on Strategic plan implementation. The study forward the following recommendations; Banks allocate sufficient resource on time to realized the strategic plan objective and goals; Banks need to verify whether the prevailing organisational structure is in line with the newly crafted strategic plan; the strategic plan activities, goals and objectives has to be cascaded with departmental, unit and individual level; Bank management should conduct continuous monitoring and evaluation activities to ensure the strategic plan activities are executed as per prescribed strategic plan