Factors affecting the implementation of strategic change in defined benefits pension scheme: The case of local authorities pension trust.

Abstract

Local Authorities Pension Trust, like any other organization whether in public or private organization is directly or indirectly affected by the changes taking place in the environment in which they operate. It therefore becomes apparent for organizations to prepare themselves by formulating and implementing strategic change that will enable them to exploit the opportunities and keep threats at bay. Strategic change implementation is now a bell weather event hence is a routine management issue that requires concentration for its benefits to be realized. Laptrust has undergone substantial metamorphosis and has lived to see the challenges so much so that during the period of liberalization in the late 1990's through early 2000 in Kenya saw it readjust its operational activities in the quest of establishing a viable fit in the retirement benefits industry. There were challenges such as cut throat competition, high customer expectations, inflation and in the late 2002, the birth of regulator Retirement Benefits Authority which came with stringent rules regarding investment portfolios by the players in the industry. The study therefore seeks to establish factors affecting implementation of the strategic change in defined benefits pension scheme in Laptrust. The study adopted a case study research design so as to provide for in-depth and comprehensive inquiry of the phenomenon. The population of study included the senior managers, middle-level managers, functional-level managers and junior employees of Laptrust who are involved in implementation of strategic change. Samples were drawn from the population through stratified random sampling. Primary data was collected using questionnaires that will be administered through 'drop and pick later' method. Before analysis, the data collected was checked for completeness and consistency. Data collected was then analyzed through content analysis and descriptive statistics. The results are presented in form of tables, means and standard deviations. The SPSS statistical computer package was used in the analysis. The results of the study are discussed in chapter four and five. Lastly, conclusions drawn from the findings and recommendations from the study are presented.