Management Marketing

MANAGING MARKETING [SEPTEMBER 2010] MEMBERSHIP NUMBER: 13335982

A REPORT ON THE AQUISISTION ACTIVITY CARRIED OUT BY UNIVERSAL BANK OF KENYA

Managing Marketing-September 2010-13335982

Words: 6571 in Report, 2 pages in Company background


Table of Contents

Table of Contents EXECUTIVE SUMMARY ......................................................................................................................................................................... 5

1. UNIVERSAL BANK OF KENYA’S MARKETING DEPARTMENT ................................................................................ 6

2. RATIONALE FOR THE MARKETING ACTIVITY .............................................................................................................. 7

2.1. Introduction ................................................................................................................................................................................. 7

2.2. Intent for the introduction of a stock brokerage product .................................................................................................... 7

2.3. A growing need ........................................................................................................................................................................... 8

2.4. Kingdom securities Limited; Service offering ........................................................................................................................ 8

3. PROJECT STRUCTURE.................................................................................................................................................................. 9

3.1. Project research & analysis phase ............................................................................................................................................. 9

3.2. Project negotiation phase ........................................................................................................................................................... 9

4. RESOURCE REQUIREMENTS: Human, Financial and Physical resourcing ..................................................................... 10

4.1. Human requirements ................................................................................................................................................................ 10

External research team ..................................................................................................................................................................... 10

Kingdom start team .......................................................................................................................................................................... 10

4.2 Physical requirements ............................................................................................................................................................... 11

4.3. Financial requirements ............................................................................................................................................................. 11

Evaluation of resource requirements .................................................................................................................................................. 12

5. TEAM MANAGEMENT AND PERFORMANCE EVALUATION ................................................................................. 13

5.1. Forming phase ........................................................................................................................................................................... 13

5.2. Storming phase .......................................................................................................................................................................... 13

5.3. Norming phase .......................................................................................................................................................................... 13

5.4. Performing phase ...................................................................................................................................................................... 13

5.5. Adjourning phase ...................................................................................................................................................................... 14

5.6. Individual & team performance.............................................................................................................................................. 14

5.6.1. Individual performance evaluation ............................................................................................................................... 14

5.6.2. Team level assessment .................................................................................................................................................... 15

6. CREDIBILTY OF INFORMATION SOURCES ..................................................................................................................... 16

6.1. External agency ......................................................................................................................................................................... 16

6.2. Nairobi stock exchange ............................................................................................................................................................ 16

6.3. Capital market Authority ......................................................................................................................................................... 16

7. REVIEW OF BUDGETARY PROCESS ................................................................................................................................... 17

7.1. Pre-approval budget estimates ................................................................................................................................................ 18

7.2. Post-approval budget estimates .............................................................................................................................................. 19

7.3. Budget variances ....................................................................................................................................................................... 19

8. COST BENEFIT ANALYSIS ....................................................................................................................................................... 19

9. EVALUATION & MONITORING ............................................................................................................................................ 21

9.1. Cost & Income metrics ............................................................................................................................................................ 21

9.2. Company asset & investment metrics ................................................................................................................................... 21

9.3. Strategic metrics ........................................................................................................................................................................ 21

10. IMPROVEMENT OPPORTUNITIES IN PERFORMANCE MANAGEMENT ............................................................... 22

10.1. Planning ...................................................................................................................................................................................... 22

10.2. Checking in ................................................................................................................................................................................ 22

10.3. Assessment ................................................................................................................................................................................. 23

Appendix A: BACKGROUND TO UNIVERSAL BANK OF KENYA ....................................................................................... 24

UBK’s COMPANY HISTORY .......................................................................................................................................................... 24

INDUSTRY PERFORMANCE VS. UBK PERFORMANCE ........................................................................................... 24

UBK’s CUSTOMER BASE AND MARKET POSITION ........................................................................................................... 24

PRODUCT RANGE ............................................................................................................................................................................ 25


Appendix B: PERFORMANCE EVALUATION ELEMENTS ...................................................................................................... 26

Appendix C: REFERENCES ................................................................................................................................................................... 31


Abbreviations

CDS-Credit Default Swap

KSL-Kingdom Securities limited

NSE-Nairobi stock exchange

PDA- Personal digital assistant

SACCO-Savings and Credit Cooperative Society

Stock market-transactions carried out at the stock exchange

UBK-Universal Bank of Kenya


EXECUTIVE SUMMARY

The Managing director of Universal bank of Kenya delegated to me the role of evaluating Kingdom securities; a recently acquired stock brokerage division formed through a process of acquisition from Bob Mathews limited.. With increased competition and economic slowdown hitting the financial industry in Kenya, well refined processes in carrying out any business activity is paramount to ensure business sustainability. The review of the acquisition process would entail an elaborate assessment of systems and procedures within UBK as well as an analysis with appropriate suggestions on improvement of the performance management exercise. The assessment should discuss the present state in performance of Kingdom securities, fundamentally addressing its feasibility to Universal bank of Kenya as a whole. The bank identified a growing interest in the Kenyan population to invest in stocks. Since 2008, Kenya’s stock market has experienced a growing trend in shares traded. In comparison, August 2008 registered over 490 million in shared traded which has grown to about 627 million in March 2010, a 27% growth in 2 years. (Nairobi Stock Exchange, 2010). This paper evaluates the processes in new product development Universal bank of Kenya adopted to provide stock brokerage services. Over the years, the bank has endeavored to increase customer satisfaction levels, especially its core market; the cooperative movement. This has been embodied in a “financial supermarket model” which aims at providing all financial services a client might need under one body; Universal bank of Kenya. A white paper by Sap (2004) simply defines new product development as the period between the identification of an opportunity in the market to the successful launch of the product. Further, it adds that the process entails defining the product strategy, managing the overall product program and effectively monitoring all activities related to new product development and identification. Growth in revenue and business balance is mentioned as key benefits sought through new product development by most companies. Research on this report was mainly from various secondary data sources such as company annual reports and the internet. For a more updated view, questionnaires and interviews with industry analysts were carried out. Kingdom Securities limited was developed to provide stock broking and investment advisory services to the market. UBK’s top management with an executive steering committee deliberated on acquiring rather than developing a stock brokerage product from the bottom up. This decision went through a pre-approval business case assessment which involved a preliminary analysis be carried out to determine whether the business decision was a feasible one. The analysis indicated that the acquisition option is cost saving and more efficient as compared to traditional product development alternative. The bank then engaged the executive steering committee to spearhead implementation activities which was regularly evaluated by the company’s top management on an established feedback system. The pre-approval budget went through several changes as different needs developed as the project took shape. The report evaluates how the “kingdom start team”; the project team, was managed and gives suggestions on how it can be improved for the future. Individual and team performance was also evaluated and proposals given. A cost-benefit analysis was carried out to determine whether the marketing activity was fit for the bank. Assessment and monitoring activities carried out by UBK on the project were discussed.


1. UNIVERSAL BANK OF KENYA’S MARKETING DEPARTMENT

Departments in relation to marketing role

Department activities Marketing department alignment with other departments (department size 170 staff)

Role activities

Finance & audit

department

-allocating and monitoring budgets

-procurement/supplies

Pricing of the service -setting pricing policy(pricing objective, approach

and strategies )

-achieve profit & return on investment

maximization

-achieve business survival in competitive

environment

-balance price over product line

-determine price elasticity of demand-response of

demand on price changes

Sales/business

development

department

(department size 240)

-sales activity coordination

-new product development

Product/project

Development

Strategic alignment

Product planning and management

Strategic alignment analysis

-developing appropriate products to meet

consumers’ financial needs. Gap analysis

-development and research of new products

-product enhancement

-compliance to regulatory and quality standards.

Operations

department


-structuring the bank’s procedures

-business support(communication

and networks)

-monitoring business processes

Strategic alignment

Total customer satisfaction

management

-customer service

Market research

Developing markets

- aligning the bank’s activities in different

departments towards the company’s strategic

goals/objectives.

-ensure the customer service team is in-sync with

the bank’s marketing objectives and are aware of

the bank’s product characteristics and

functionality

- ensuring all the marketing efforts of the bank

ensures a satisfactory customer experience; with

proper customer relationship systems relevant to

the bank’s marketing objectives

-The identification of customer’s financial needs

and wants

-forecasting and researching future financial

market needs and competitors’ activities.

--provide relevant accurate and timely market

information

- building and maintaining the bank’s core and

subsidiary markets

-analyzing potential markets

-building on the bank’s key markets to increase

market share and/or profits.

Human resource

department


Staff recruitment, orientation,

capacity building, training &

development, compensation,

benefits

Product/project

Development

Build work teams

Organize Team building sessions

Coordinate appropriate training and development

of the bank’s staff on marketing functions.

Internal audit

department

-procedures, controls, systems and

performance appraisal

-running accounting accuracy tests

-investigation, mitigation of fraud

Strategic alignment

Product/project

Development

Pricing of the service

Maintain product quality and performance in

relation to the bank’s strategic goals/objectives

Figure 1: Functions of the marketing department and the relation to other departments

Figure 1 is a tabular representation of the functions of the marketing department, indicating inter-departmental functions and how they collaborate to achieve the functions of the marketing department and ultimately for UBK.


2. RATIONALE FOR THE MARKETING ACTIVITY

2.1. Introduction

The Kenyan banking industry is rapidly changing. New banks are entering the scene with attractive packages that grab several segments within the Kenyan population. This has compelled banks to bring in innovative and relevant products so as to reach the Kenyan markets. Introducing a new product or service can take many forms; one such technique being acquisition. Donald Sull (competing through organizational ability, 2010) describes operational agility as follows; “An organization’s ability to exploit both revenue-enhancing and cost-cutting opportunities within its core business more quickly, effectively, and consistently than rivals do is the source of operational ability”. Diversification is pointed out by Ansoff (McKinsey quarterly 2010) as; “A change in the characteristics of the company's product line and/or market, in contrast to market penetration, market development, and product development, which represent other types of change in product-market structure.” Ansoff notes that diversification needs to involve a change of the company’s product line and/or market. This is the overall implication of diversification to an organization. However, Sull adds idea operational agility brings in the element of best exploiting opportunities with speed, effectiveness and consistency. This ensures an organization builds on its competitive edge at the same time cost-cutting and/or increasing its revenue.

In June 2009, UBK launched Kingdom securities limited (KSL) through a process of acquisition which diversified UBK’s activities to include the provision of stock trading and advisory services

2.2. Intent for the introduction of a stock brokerage product

The acquisition move was propagated by the bank’s “financial supermarket model” (cooperative bank ltd, 2010) which aims at providing relevant financial solutions under one outfit. The stock brokerage product was to contribute towards the following; - Development of Kenya’s stock market. This is on the basis that a vibrant stock market will consequently contribute towards greater investment activities from Kenyans which in turn build on the country’s economic growth. -Gaining a voice on the Nairobi stock exchange board as well as reducing its investment management costs. Owning a stock brokerage firm would give the bank efficiency and greater control in carrying out their stock investment activities. -Diversify and increase its revenue streams- UBK’s efforts have been geared towards increasing its overall profitability through expansion and diversification activities.

-Value addition & building on its customer satisfaction goals- The bank’s “financial supermarket model” aims at ensuring a client experiences efficiency in engaging in financial activities through a holistic package of services, interconnected to each other. Increased customer satisfaction levels would lead to increased loyalty, overall value creation to all of the bank’s stakeholders, and contribution towards developing the country’s economic growth.


2.3. A growing need

The bank considered introducing the stock brokerage service after assessing the need for most of its customer base to buy shares or trade in the stock exchange. The intent was so as to ensure their both their existing and new customers, as well as the greater Kenyan public gain access to financial services all under one roof. This implied the bank’s customers and the Kenyan population could pull some money from their UBK account, and engage the Kingdom securities subsidiary to carry out their stock purchases or exchange activities. Their key focus is on their large strategic client base, the cooperative movement which constitutes above 7 million members, with over 17,000 cooperative societies in existence.

2.4. Kingdom securities Limited; Service offering

KSL was projected to provide the following services to the Kenyan market; -Buying & selling shares on behalf of their clients -Investment advisory/ support services- to involve advising clients on the shares market


3. PROJECT STRUCTURE

These stages in the project were divided into 3 distinct phases namely project research & analysis, implementation and project negotiation

3.1. Project research & analysis phase

The company engaged the services of Infotrak research and consulting ltd, an East African based research group which carries out various services embodied in the research needs of the east African market. UBK sought their services on carrying out an independent research on the stock brokerage industry in Kenya. The decision to seek external consultants instead of using the marketing team was pegged on i) the need for an independent and unbiased research process and ii)the marketing team was already heavily engaged in research and development of the “GoodHome” mortgage product. UBK outlined the following areas of interest to be addressed by Infotrak; -Existing firms profiling -Market entry research- involved an analysis of entry requirements such as technology, financial estimates and legal requirements. From the research carried out by Infotrak, 8 business profiles of stock brokerage firms were researched on. CfC Stanbic Financial Services ranked first in CDS accounts maintained (25,000), followed by Kestrel Capital and Dyer & Blair with 23,000 accounts and 18,000 accounts respectively.Cfc Stanbic Financial services and kestrel capital have been consistent in profitability, largely because of their solid networks and credibility with both the local and foreign markets. Most stock brokerage firms offered investment banking and advisory services as additions to their service portfolios.

The bank’s marketing department head and the advisory team settled on the Bob Mathews stock brokerage firm. The firm was ranked as 6th in CDS accounts maintained (12,000), whereas its profitability was about Ksh 8 million for the year ending 2008.The firm was the most recent to join the industry having started its operations in 2008,and offered both stock broking and research services. The bank reached the decision based on 3 factors;

1. Bob Mathews was a relatively new firm in the industry. This meant that it was still in its forming stages; its structures and business cultures were still on the growth stages. The bank considered this to be appropriate as it would be easier to take part in building the work culture, unlike where a firm is already established.

2. Bob Mathews had over 12,000 CDS accounts. This would provide an existing market presence for Universal bank to grow on.

3. Other than Bob Mathews, the other firms had very high buy-out costs

3.2. Project negotiation phase

The bank engaged Bob Mathews on a price and term negotiation exercise, through meetings between the project’s steering team and heads from Bob Mathews. The bank’s legal advisory team together with the steering team scheduled meetings to come at a final buy-out price. The meetings ran for 3 weeks in February 2009.The bank had set Ksh 520 Million to negotiate with, a figure reached through the analysis carried out by Infotrak; which noted that the current worth of Bob Mathews was ksh 509 million. The value was pegged on forecast of the company’s growing profitability since its start as compared to the more established firms. An evaluation of the bank’s revenue and asset base contributed to the firm’s worth. It was also noted that other recent acquisitions such as that of NIC bank and Standard chartered were within the ksh 500 million-ksh 550 million range.


4. RESOURCE REQUIREMENTS: Human, Financial and Physical resourcing

4.1. Human requirements

The project required the following human resources.

External research team

Preliminary market intelligence was required so as to make informed decisions on the acquisition process. The bank required an independent market research be carried out by the sourced agency. The agency was to present a formal report in 3 weeks addressing the key areas pointed out by UBK (see project research phase above), in addition to any information that may assist the managerial team in UBK to make informed decisions and strategies. The agency was to have a track record of integrity and efficiency, independent in its operations, committed to ensure an elaborate report is prepared by 30th January 2009 and affordable.

Kingdom start team

A team named “kingdom start” was to comprise of members of staff from different departments in UBK brought together to deliberate and develop the Kingdom securities subsidiary. The team was to constitute 8 members different departments. Executive steering team (2) To constitute the head of marketing and head of finance, these were to; -Oversee the development of the new product -The head of marketing was to be in charge of the new product development processes -Finance head was to make sure the activity was done in the most feasible approach possible. -Steer the team in coming up with an acquisition proposal to be discussed with the company’s top management Marketing department (4) This was to comprise of 4 members, 1 of a senior level and 3 of middle-management level. Their key role was to oversee the research work from the external agency, collaborate with them to prepare an extensive acquisition proposal report covering all the key areas required.

Business development department (1) UBK’S business development department has the business processes and sales teams under it. One senior member from the business processes to start on the development of an appropriate business change plan for the diversification project. The team was to come up with; -An acquisition proposal -A detailed audit assessing the impact of Kingdom securities to other departments in UBK. -A business change plan

Finance & operations team (2) 1 senior member from the finance department was to join the team, whereas another middle-level manager would be from the business change department. For this phase, their role was to ensure the project is feasible and to manage the team’s budget. The finance team was to play a key role in preparing the acquisition proposal together with the business development and change teams.


Human resource team (1) The kingdom start team was to work with a member of the bank’s human resource team to facilitate training and development of the team on relevant areas in line with the marketing activity. The training would take 3 weeks in UBK’s training camp.

4.2 Physical requirements

These are the infrastructural requirements associated with the acquisition process. A suitable workstation was to have; -Networked computers on every workstation with -Communication telephones connected to the bank’s communications system. -Appropriate Lighting and wiring The bank’s core system needed to be expanded to accommodate the stock broking functionalities. This requires software update and maintenance activities done throughout the project.

4.3. Financial requirements

The following are the financial requirements for the acquisition process right from the pre-acquisition phase to the post-acquisition phase.

Phases Planned Cost estimates(ksh)

MANPOWER

Research/external consultancy 550,000

Kingdom start team PAY 2,550,000

OTHER

Buy-out provision 520,000,000

Legal advisory and processes charge estimates 50,000,000

Floor renovation cost estimates 200,000

Total financial requirement 552,885,000

Figure 1: financial requirements for the acquisition process


Evaluation of resource requirements

Requirements Performance rating

Planned resource requirements

Actual resources used

Deviation Notes

Human resource requirements

Research/external consultancy -Extensive research on

stock market

-independent and

committed in research

process

-fit to financial

budget(affordability)

Match score-5 0 All requirements were met within the planned time

Project team Executive steering team

Kingdom start team

Match score-5 0 All requirements were met within the planned time

Financial resource requirements

Manpower

Research/external consultancy

Kingdom start team PAY

3,100,000 3,290,000 +190,000 -negotiations with Infotrak ended on the figure

rising to 740,000

Other

Buy-out provision

Legal advisory and processes

charge estimates

Floor renovation cost estimates

570,200,000

545,100,000 -+25,100,000 -Buy-out costs fell to ksh 510,000 after negotiation

-legal advisory and processes were done by an

external legal firm for ksh 35,000,000

-planned floor renovation costs fell to ksh 100,000

as UBK used already established office in UBK head

office.

Physical resource requirements

Room renovation Match score-5 0 Activity was done as planned, within planned

timeline

Software upgrading

exercise

Match score-4 1 Activity took longer by 3 days

Hardware requirements Match score-4 1 Activity took longer by 6 days

Figure 2: table showing an evaluation of resource requirements *match score-these are based on the achievement levels of meeting the planned resource requirements. A score of 5 is the highest while 0 is no achievement

*deviation-this refers to the variation realized from the planned resource requirements. When match score is 5, it leads to a deviation of 0.


5. TEAM MANAGEMENT AND PERFORMANCE EVALUATION

The bank’s approach on building the team mainly took an approach of Tuckman’s Five Stage Model cited by Eaton (berlineaton.com). Their processes took the form of forming, storming, and norming, performing and adjourning.

5.1. Forming phase

The executive steering team saw the need of the marketing activity and held several meetings to deliberate on the feasibility of buying out the stock brokerage firm as compared to creating the stock brokerage department from start. They then proceeded to select activity team leaders with assistance from the bank’s human resource department. Staff from the finance & legal, marketing and business development departments was selected to run the different activities in the acquisition process. The stage involved; -Group members developing a clear understanding of the team’s strategic intent and know each other. -Team heads arranged for a team building trip which took the form of a mountain climbing expedition. -During the expedition, the group was trained by a human resource representative on the nature of UBK, its strategic orientation and how the group’s role would contribute towards it. The objective for the team building activities focused on;

� Building on collaborative team work � Understanding of each other’s personalities which brings harmony in the work setting

5.2. Storming phase

This phase focused on clearly breaking down responsibilities of each of the group’s members whereby the organizational structure was laid out, outlining the systems of communication adopted by the bank.

The executive steering team had the overall responsibility of taking charge of the acquisition process. They reported to the bank’s managing director. The activity team leaders handled supervision/monitoring of the different phases of the acquisition. The criterion for rewarding and evaluation was developed by the executive steering team during the activity’s initial stages by the heads in Kingdom start team and a human resource department representative. Regular Group meetings with company heads were carried out to provide an avenue to know the leadership structures as well as air out any pertaining issues or clarifications, and ideas or suggestions in relation to meeting the groups expected outputs.

5.3. Norming phase

To facilitate this phase, compulsory weekly team meetings were held at the bank’s head office for all of the members of the group. Members shared on the week’s challenges and developments, and the group sought to tackle them. The basis of structuring performance standards were developed through the weekly meetings.

5.4. Performing phase

This was a follow up on the norming phase and involved the actual buy-out process. Performance appraisals were done on both an individual and group perspective.


5.5. Adjourning phase

Involved the team closing its activities and compiling a report to the bank’s top management; which gave an elaborate account on the Kingdom start team’s results for the marketing activity.

5.6. Individual & team performance

For a table on individual and team scores, refer to Error! Reference source not found.

5.6.1. Individual performance evaluation

Person 1: senior level marketing department -Had been allocated the role of monitoring and directing the research work that had been outsourced to Infotrak, work with them to ensure an elaborate report is prepared for the executive steering team and the kingdom start team. -Had weak score on Professional Advice and recommendations -Produced timely results though lacking extensiveness. Pointed out by the executive steering team on the report produced, this could be attributed to the low pay to the external agency, thus resulting to low output. Person 1 had a bachelor’s degree in economics. Skills in project evaluation and report writing would have been ideal for that role, thus in-house training in project management would be recommendable. Person 2: middle level marketing department -Had the responsibility of providing relevant and timely information to the external agency. This was done successfully as noted by the external agency -Had excellent oral communication and interpersonal skills which assisted in communicating with the Infotrak team -Completed tasks on schedule. Information required by the external agency was relayed in real time. This was mainly facilitated by the individual’s skills in project management obtained through a professional qualification. Again, the individual’s role within the bank was to manage marketing projects of UBK, where his skills were cultivated to complement the qualifications. Person 3: middle level marketing department -Worked with person 2 to provide relevant and timely information to the external agency-role was done well, however the external agency noted that person 2 could not deal with people with ease. They noted that in some instances person 3 would seem arrogant, that his point of view was always right. This affected the smooth flow of information and communication between the agency and the kingdom start team. Person 4: middle level marketing department -Had the responsibility of compiling gathered information and preparing periodic reports -Had a key role to liaison with the business change member in developing the business change plan -Was rated by the executive steering team as having good interpersonal skills, by routinely establishing rapport in initial contacts with others at all levels, kept superiors, team members, and other appropriate parties informed of significant developments regularly, and expressed support for the value of diverse opinions


Person 5: senior level business processes department -Had the responsibility to coordinate with the business change team member in ensuring an extensive assessment/evaluation is carried out on possible impacts posed on the organization in the introduction of the kingdom securities product -Was required to analyze the various dimensions in which different departments in UBK would be involved in the long term success of the product.in adjourning the marketing activity -was to present a business change plan especially in ensuring all processes of the bank are considered -scored highly on behavioral assessments and some of the results assessments. The business change plan delayed on its scheduled time, which brought a lag in carrying out feasibility studies by person 6 Person 6: senior level finance department -Was to ensure the marketing activity is feasible in relation to the bank’s financial budget for the marketing activity. -Had above average oral communication and interpersonal skills -Took charge in the team building activities that the team engaged in -Although he contributed innovative approaches to the team tasks, he scored a low grade in the Professional Advice and Recommendations element, mainly because of absenteeism in some cases where the team required advice and expertise from him. -A daily attendance sheet maintained by the heads of the kingdom start team would have been advisable to address absenteeism. It would also be recommendable if everyone was held accountable on their daily outputs in relation to the project Person 7: middle level business change department -Was to work with person 5 in ensuring an accurate detailed business change plan is prepared to support person 6 and his team in carrying out the project’s feasibility studies -Performed well in most of the behavioral assessment elements. However his result assessment scores were weak mainly because of the lag in preparation of the business change plan Person 8: middle level human resource department -Was to collaborate with the team in training, motivation as well as coordinating resource allocation and planning for the team -Carried out his duties effectively with good interpersonal and teamwork which was a crucial skill required in carrying out his training and motivation role -Submitted elaborate and timely reports and was at most a time available for consultation and assistance in carrying out the team’s duties not directly related to his designated duties

5.6.2. Team level assessment

-Team’s performance was above average, most behavioral elements were scored highly -Team successfully fulfilled its mission of carrying out the acquisition process -Team practiced openness in communication which contributed towards more effective decision making procedures -Team’s proposal to the top management was however amended on several areas by the authorities especially on the pre-approval budget which had significant discounting errors. However, in preparing the post-approval budget, the team became more thorough in its evaluation and forecasting activities. This indicates that the team became more collaborative -Team held meetings every weekend to ensure that the whole team is aware of any alterations, challenges or progress within the course of the week -The individual roles were however not clearly outlined, which affected performance in achieving the team’s mission. Role definition sessions should have been given priority in the training sessions carried out by the human resource representative.


6. CREDIBILTY OF INFORMATION SOURCES

6.1. External agency

The external agency has the following strengths that build on the quality of their work; -Over 54 positive referrals from the agency’s client portfolio, a majority of which are high worth organizations in east Africa-this brings out credibility to the agency since high worth organizations such as Safaricom and World Bank -A majority of the agency’s research projects involved nationwide or region wide research activities. The ministry of health required the agency to carry out a nationwide research on Kenya’s health conditions from region to region -The agency’s research projects have cut through all sectors of the Kenyan market. The multi-sectorial experiences gained contribute to a holistic knowledge and experience base in the Kenyan and greater east African community -Embrace technology in carrying out their research activities. The agency uses electronic data collection tools such as personal digital assistants (PDAs) which contribute towards better organization and accuracy due to real-time data compilation -Qualified and experienced research representatives-the agency carries out executive recruitment through careerconnections, a human resource management and consultancy firm in Kenya. The recruitment agency is credible in its operations with proven consistency in selecting ideal manpower for its client base. Their staff is qualified by Recruitment & Employment Confederation UK.

6.2. Nairobi stock exchange

The NSE is a body that oversees the Kenyan stock market. They have been mandated to carry out licensing to stock brokerage firms in Kenya and are guided by the country’s capital markets act in preparing membership rules for stock brokerage firms. This ensures that companies listed as members of the NSE are fully operational firms with business stability. The Nairobi stock exchange periodically carries out member assessments to ensure those listed are in line with the set rules. This brings credibility to the information that gathered from the NSE.

6.3. Capital market Authority

The capital market authority is a parliament enactment with a core mandate to offer the promotion, regulation assistance in developing the Kenyan capital market. The marketing and finance teams relied on their internal research and public reports such as the organization’s 2009 annual report as a secondary source of information to complement the research done by Infotrak. Ltd. Information gathered from the capital market authority is accurate and relevant due to the formal regulatory framework that is adopted by the organization. The organization also carries out regular follow-up sessions which are mainly focused on ensuring good corporate governance practices are carried out by licensed stock brokerage firms. They also observe enforcement actions as well as carry out market surveillance so as to promote integrity in Kenyan capital markets.


7. REVIEW OF BUDGETARY PROCESS

The diagram below outlines the various stages where budgetary activities took place in implementing the marketing

activity.

No

Yes

Research and evaluation activities

Implementation

Feedback system on negotiation

Figure 4: diagram illustrating the different stages of the budgetary process

Budget 1 was done in preparation of the acquisition proposal to be presented to the bank’s top management. This included cost estimates for human, physical and financial resource requirements that would be required for the successful completion of the marketing activity Budget 2 constituted a team budget as well as a buyout budget. The team budget was prepared immediately after approval for the commencement of the implementation phase of the acquisition activity.

Marketing

activity

proposal

End of process

Request for

Proposal

(RFP)

directed to

steering

committee

PROJECT

ASSESSMENT &NEGOTIATION

LAUNCH

Activity

Go Ahead

PRE-

APPROVAL

BUDGET

ESTIMATES

Business

change/imp

act plan

POST-APPROVAL BUDGET

ESTIMATES

BUDGET APPROVAL

(FROM COMPANY’S TOP

MANAGEMENT)

UBKs Top

management

Bank’s Shareholders


7.1. Pre-approval budget estimates

After the executive steering team was directed to prepare an acquisition proposal, the team pulled together different professionals in UBK to assist in evaluating the cost estimates for carrying out the marketing activity of introducing a new product through acquisition. The budget estimate was prepared by the budget committee which comprised of members of staff from the finance and operations, marketing, human resource and business development departments. The analysis of available resources involved an elaborate analysis of the resources that were required for the marketing activity. This was broken down into human, financial and physical resources. (See chapter 4) The following table is a checklist of the available resources for the marketing project, with the budget estimates and actual amount spent on the resources.

Resources

required

Availability

checklist

Pre-

approval

Budget

estimates

Post-

approval

budget

estimates

Actual

figures

Variance

(pre-

approval)

% variance

(pre-

approval)

Variance

(post-

approval)

%variance

(post-

approval)

Notes

MANPOWER Research/external

consultancy � 550,000 800,000 740,000 (190000) 34% (60000) 7.5% 1

Kingdom start

team (3 months)

Executive steering

team (2) � 500,000 500,000 476,000 (24000) 4.8% (24000) 4.8% -

Marketing

department (4) � 390000 390000 417,000 (27000) 7% (27000) 7% -

Business

development

department (1)

� 80,000 80,000 80,000 - - -

Finance &

operations team

(2)

� 280,000

280,000 280,000

- - -

Human resource

team (1)-

� 90,000 90,000 90,000 - - -

OTHER Buy-out provision

Through cash-flow

funding

� 520,000,000 520,000,000 510,000,000 (10,000,000) 2% (10,000,000) 2% -

Legal advisory and

processes charge

provision

� 12,000,000 15,346,000 17,694,000 5694000 47% 2348000 15% 2

Floor renovation

cost estimates � 200,000 120,000 100,000 (100,000) 50% (80,000) 67% 3

OVERHEADS Travelling

expenses � 146,180 165,000 280,785 134605 92% 115785 70% 4

Office costs � 86,400 65,450 66,210 (20190) 23% (760) 1.2% -

Audit fees � 162,650 143,850 136,500 (26150) 16% (7350) 5% -

Figure 5: table on budget estimates, variances and resource checklist


7.2. Post-approval budget estimates

Once UBK’s top management approved the proposal to carry out the acquisition process, certain amendments were made to the pre-approval budget estimates as advised by the top management. Provisions for floor renovation, legal processes & advisory and external research services were amended. The post-approval budget estimate acted as a check-off point to launch the project implementation phase of acquisition. Once approval was given, the finance department member arranged with the bank’s finance and operations department on allocating the already discussed and approved cost estimates. The top management settled for negotiations to be directed towards a 60% share ownership, thus maintained the ksh 520 million budget in the pre-approval phase.

7.3. Budget variances

Note 1-the team negotiated with Infotrak to reduce the agency charges by Ksh 60,000. Note 2-The government license fee remained at ksh 17,283,000. However, the 15% increase was brought about due to legal representation service charge. The bank should have sought the legal arm that represents it to assist in selection of legal representation, or the legal arm (legal department) carry out the legal representation. This would have resulted in a reduction in such costs. Note 3-the floor renovation costs significantly reduced to ksh 100, 000, a 67% reduction. The team resorted to renovate a room that was previously used as a store which had most of the requirements that were required by the team. This included Note 4-the team incurred extra expenses in transportation and accommodation for the team building expedition. The team could have reduced the expenses by carrying out the team building exercise at the bank’s training center.

8. COST BENEFIT ANALYSIS

MANAGEMENT SUMMARY Assumptions and Challenges - discounting errors; the cost benefit analysis is prone to discounting errors as present values are estimated

for future costs and benefits. This is because costs and benefits are not predictable in time and quantity.

-Difficulties in estimations-some of the benefits and costs cannot be accurately estimated, especially in

monetary terms. This brings about considerable errors of estimation.

-the analysis will develop estimates from related historic activities of the bank whilst considering their average

deviations. This will mainly apply for the estimation of benefits.

-it is assumed that figures used in the analysis hold high levels of integrity, and that the parameters for the

estimates are well grounded.

Evaluation Criteria: The criteria used for evaluating the alternative stock broking firms to acquire ownership was evaluated

considering the following;

-alignment to the bank’s strategic objectives

-the ease & efficiency of the firm to synchronize with UBK. This implies that a cultural match is also key

-the firm’s reputation/corporate image

-the firm’s stability and strength for business continuity-profitability is essential

The criteria used in allocating the cost estimates for the marketing activity considered the following;

-historic costs for the various costs e.g. remuneration, office costs, legal costs

DESCRIPTION OF BUSINESS

STATE

Current State The bank lacked a stock brokerage service offering

Proposed State The proposed acquisition project aims at the bank gaining 60% ownership of an existing stock brokerage firm,


through forming a “kingdom start” team and carrying out negotiations for ownership.

The Funding strategy for the acquisition focused on cash-flow funding for the planning, management and

implementation activities.

COSTS Cost elements Sub costs totals Operational Costs: Travelling expenses 280,785

Floor renovation cost estimates 100,000 Staff costs 1,343,000 1723785

Non-Recurring Costs: Capital Investment Costs: Cash flow funding 510,000,000 Other Non-Recurring Costs: Legal advisory and processes charge provision 17,694,000

External agency expenses 740,000 Audit fees 136,500 528570500

Monthly Recurring Costs:

Staff costs 3,653,000

Office costs 22,070 3675070

Total costs 533,969,355

BENEFITS Increased revenue diversification opportunities - product portfolio

diversification contributes to spreading of risk as well as increasing

revenue streams from new product.

376,000,000

Increased market share accrued from offering the stock brokerage

product to a market that has an interest in the stock market.

460,300,210

Shorter break-even period since the bank buys an already established

stock brokerage outfit

152,800,838

Increased synergy-UBK engages in various investment activities in Kenya’s

stock exchange market. Running a stock brokerage firm reduces the

bank’s legal and processing costs.

230,000 989,331,048

Non-Quantifiable Benefits: Increased customer satisfaction levels leading to increased loyalty

and Overall value creation to the bank’s stakeholders

Increased customer base as people seek stock brokerage services in UBK,

they open accounts with the bank

Ease and cost effective management of investment activities in stock

exchange market-having its own stock brokerage outfit greatly improves the

banks efficiency in carrying out investment activities. Consequently, the

relative costs of investing reduce as the bank has more business intelligence,

skills and resources required.

Enhanced competitive advantage through offering services related to

traditional banking functions, the product cuts a better competitive position

in the market.

Acquisition of intangible benefits from firm acquired- benefits that UBK

gains through gaining ownership of Bob Mathews; include 176 skilled staff

with better knowledge on the stock brokerage business. This benefit reduces

training and development efforts and costs while improving performance.

Bank’s contribution towards Kenya’s economy-Through the provision of

stock brokerage services in line with other functions of the bank, they

encourage the Kenyan population to participate in the stock market, which

consequently contributes to improvements in the country’s economy.

Total benefits 989,331,048

COMPARATIVE COST/BENEFIT SUMMARY


Estimate Total cost of

ownership 533,969,355

Estimate Total benefits 989,331,048

Net present value The marketing activity will have a net present value of ksh 412 billion for

UBK. 412,644,144.6

Estimated return on

investment in 1 year

The Return on investment for the marketing is timely for UBK 0.85(85% in 1

year)

Figure 6: cost benefit analysis table with comparative summary

*interest on capital expenditure=8% *Return on investments estimates project will start paying for itself by 1st

year

9. EVALUATION & MONITORING

9.1. Cost & Income metrics

This was measured through profit and income levels for the organization between 2008 and 2009.The bank’s financial statements at December 2008 indicated that they registered a pre-tax loss of ksh 7 billion. This was largely contributed by high total expenses brought about by the bank’s high employee costs and operational/administrative expenses. As a whole, KSL has low profitability, which would indicate a longer break even period for the acquisition activity. The bank has failed to address the high employee costs hoping that in another 2 years the business will have reached its break-even point. They however addressed the operational expenses by reducing advertising costs by 13% as advertising constituted a large portion of the bank’s total expenses within a greater part of 2008.The bank should make use of digital marketing techniques to reach their clients, especially since the larger portion of investors in the stock market fall under the youth bracket, who appropriately use the internet the most. Search engine optimization and social media advertising would be ideal.

9.2. Company asset & investment metrics

UBK’s current ratio in 2008 was 1.37 whereas in 2009, it grew to 1.44.This indicates that KSL has a relatively good short term financial status. This is calculated considering the bank’s total current assets and current liabilities for 2008 and 2009.this can be improved by settling/offsetting its debts and converting some of its non-current assets to current assets such as its property investments. The banks equity ratio for 2009 was 0.84; meaning for every ksh 1 employed in KSL, shareholders and approximately ksh 80 cents was contributed. This also implies that the majority of the assets for the activity are funded through equity. The firm’s return on capital employed (ROCE) for 2008 was 0.7 while in 2009 it rose to 1.43.This means kingdom securities ltd. is improving its efficiency in management and use of its funds over the years.

9.3. Strategic metrics

These include the activity’s contribution towards development of Kenya’s stock market, as well as gaining a voice on the Nairobi stock exchange board and reducing its investment activities & management costs.


This has been well achieved as the bank’s subsidiary, kingdom securities ltd. is listed as one of the key players in the Kenyan stock brokerage business. The firm is formally recognized in the Nairobi Stock Exchange (NSE), Capital Markets Authority and the Central bank of Kenya. The bank acquired 176 skilled and experienced staff from Bob Mathews. From their experience and business intelligence, these can offer the bank’s group investment advisory services as well as legal and procedural functions at no cost. This reduces investment activities and management costs. Metrics based on kingdom securities financial statements (2009)

10. IMPROVEMENT OPPORTUNITIES IN PERFORMANCE MANAGEMENT

Hackman et al (Berkley University) describe performance management as “an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization” .They further point out that the communication process entails elaborate clarification of expectations, objectives setting, goal identification, providing feedback and results evaluation. Clearly noted is that performance management is an ongoing process; as a “cycle” that goes through 3 steps namely planning, checking-in and assessment.

10.1. Planning

Scenario planning involves a firm creating different possible scenarios, so as to develop clearer images on what to expect in the future given different scenarios. Schnaars et al in the Essentials of Scenario Writing (Business Horizons 44, no. 4 2001) suggest several approaches to scenario planning, one being through forming independently themed scenarios. To improve performance, UBK could develop 2 scenarios, one addressing probable changes in market while another addressing cultural clash in acquisition. This brings about preparedness and faster response rates to future issues that may arise following the marketing activity carried out. It will also give the management a more elaborate way to communicate and plan with its team towards achieving the team’s goals. Again, scenario planning provides the steering team an opportunity to explore options that may work better than the acquisition process adopted in building the stock brokerage product. It will also engage the steering committees for different projects to carry out better investigations on assumptions. Scenario planning requires that frequent tactical surveys are carried out, which in turn reduce planning errors such as inappropriate funding or poor resource allocations, as was the case with the high employee expenses incurred by Kingdom securities in 2008 and 2009.

10.2. Checking in

Communication should be open and collaborative. Right from marketing activity planning to execution to monitoring, right skills and right culture would contribute towards improved communication within the team. Communication is critical in any business activity as it provides avenues for effective scenario planning and consequently contributing towards performance management. Formal training on communication skills as well as setting aside open days for both the employees and their clients would build on openness and synchrony at work. Most importantly, leader coaching from both teams that is from UBK and Bob Mathews is essential in equipping the leader in conflict resolution and skills required to encourage teamwork. Good communication also constitutes clarification of shared visions between UBK and Bob Mathew’s staff on the ideal culture for the formed team.


Establishing team milestones would act as appropriate rewards to the team members. Members will feel like they belong, and contribute more effectively towards achieving the team’s goals. This is because they will visualize progress better as well as feel that both their individual and group achievements are rewarded.

10.3. Assessment

Self-appraisal systems-To facilitate assessment, the team could carry out individual appraisals regularly which are focused on encouraging individual accountability. Once individuals take charge of monitoring and evaluating their role performance, they will improve their performance in their specific tasks and as a group/team An effective fit between the best practices and standard procedures in both firms is critical in ensuring levels of performance are maintained and that a culture clash does not arise. This will also greatly contribute towards the integration processes of key processes such as compensation of staff, organizational approaches and general expected codes of conduct within the organization


Appendix A: BACKGROUND TO UNIVERSAL BANK OF KENYA

UBK’s COMPANY HISTORY

Formed in 1965, Universal Bank of Kenya (UBK) started as a cooperative society and opened business in 1968 with a capital base of ksh 255,000 and a ksh 214,000 government supplement. It became a fully-fledged commercial bank in 1994 and 14 years later became listed on the Nairobi Stock Exchange through a public offer to achieve an 81% share subscription.

Vision-to be the leading and dominant Kenyan bank with a strong countrywide presence, playing a central role in the cooperative movement and providing relevant and innovative financial services to our customers for the optimum benefit of all our stakeholders.

Mission-to offer value-added financial services to our chosen market segments with special emphasis on the cooperative movement through a highly effective network of service points, excellent customer service and a highly motivated team of qualified personnel.

Core values-We Proud to be the cooperative bank

We value our bank’s reputation We employ best practices We value our customers We execute at speed We grow our people

INDUSTRY PERFORMANCE VS. UBK PERFORMANCE

UBK is a one of the players in Kenya’s banking sector which is comprised of 46 institutions; banking and non-banking, and 15 micro financing institutions, as at 2008.

The banking sector in Kenya is stabilizing from the 2007 post-election violence that greatly affected all key sectors in Kenya. Increased Assets and deposits, capital injections and profit retentions have contributed to a significant growth in the profitability within the sector. With the sector facing a fall in inflation from 5.2 % to 4.0 % February –March periods; coupled with a marginal decline of commercial bank’s lending rates to 14.8%, Kenyans are expected to take on more economic activities with confidence. The sector has embraced new technology mainly for improving service delivery.

UBK’s financial performance is largely driven by a capital base boost from the bank’s 2008 IPO, which has contributed towards its extensive expansion goals. In 2009, the bank made a 3.74 billion pre-tax profit, a 11% growth compared to 2008’s 3.4 billion profit. They also increased its total assets by 33% and saw customer deposits increase from 65.8 billion to 91.5 billion, both within the 2008-2009 period.

UBK’s CUSTOMER BASE AND MARKET POSITION

The bank registered a 71% growth in its customer base to 1.3 million from 700,000 million customers. UBK’s focus has been over the years in cooperative societies. This has driven most of their business activities, most notably through its cooperative movement efforts. Sacco-link and Front office service activities have spearheaded UBK’s core focus which contributed towards the bank serving up to 150 cooperative societies. The bank has also diversified its product portfolio to address different banking needs within the Kenyan market; such as Yea Youth account, Good Home mortgage, and Kingdom securities stock brokerage services as well as embracing technology through m-banking (mobile banking).The bank has 79 service outlets and 9 upcoming branches locally. They plan to venture regionally to Uganda, Tanzania and Southern Sudan.

As at December 2009, Central bank of Kenya’s bank supervision annual report place UBK’s market share at fourth position, with Kenya Commercial Bank, Barclays bank of Kenya and Standard chartered bank leading respectively. This places UBK second local commercial bank in net total assets over ksh 110 billion. UBK holds 9% of Kenya’s customer deposits(ksh 91


billion) with the market leader holding just over 13%(138 billion).Barclays Bank of Kenya leads in pre-tax profit with ksh 9 billion compared to UBK’s ksh 3.7 billion, the fourth largest.

PRODUCT RANGE

UBK offers 4 broad products which are customized to the different banking needs of the Kenyan market. These are divided into divisions.

Co-operatives division-The core customer base of UBK, it offers banking services specialized to Kenya’s cooperative movement who mainly comprise farmers. These constitute a large portion of Kenya’s population as agriculture is the backbone of Kenya’s economy, contributing 23.4% of Kenya’s GDP.Considering that over 63% of Kenyans earn their living either directly or indirectly from cooperative based societies (international monetary fund 2007),it is of great value to focus on the movement. The bank’s efforts to fuse cooperatives financial systems and those of the bank through Front Office Service Activities (FOSA’s) and Saccolink which facilitate over 3000 cooperative societies to bank efficiently and with ease. Among other services, it offers overdraft facilities and Sacco revolving

Retail banking division-Offers current and deposit accounts such as Yea account (youth market), Salary account, Hekima and Haba na Haba savings account, Goldfish access account (premium deposit account with high returns on deposits).These are backed up by an extensive branch network of 79 outlets and 260 ATM’s all over Kenya. The bank has recently introduced retail products such as GoodHome mortgage facility as well as executive current accounts. Plans are underway to set up POS (point of sale) display units in malls and shops to increase accessibility to financial services for its customers.

Corporate/Institutional banking Division-business current accounts, UBK asset finance, Custodial services to customers such as unit trusts and foreign institutional investors. Letters of credit, bonds and guarantees, insurance financing and bill discounting are some of the specialized services UBK offers to its business clients. Educational institutions such as universities hold educational partnership accounts whereas government banking account compliments the public sector.

Investment division-UBK investment services offers fund management services to both private and public organizations .These services are complimented by their subsidiary stock brokerage division Kingdom securities ltd.

Electronic banking brings in efficiency in service delivery through offering increased accessibility of bank services through mobile banking, with emphasis in M-pesa and UBK service merging which enables on the go transfer of money and utility bill payments.UBK-net is still working on facilitating full internet banking usability to its customers in addition to the current functions of in-house transactions and viewing account details. Through electronic banking, the bank is able to offer a direct debit scheme which is essential in processing regular payments of UBK’s customers.


Appendix B: PERFORMANCE EVALUATION ELEMENTS

Performance score list

Behaviors/Process Measures Behaviour

scores

Results Measures Results

scores

Individual

Level:

An employee’s

contribution to

the

team

Person 1 Interpersonal Skills 8/9 Professional Advice and recommendations 4/6

Ability to Deal with People 6/6 Completed Cases 5/6

Team Participation 5/6 Written Reports 3/3

Oral Communication 6/7





Person 3

Interpersonal Skills 3/9 Professional Advice and recommendations 3/6








Person 5 Interpersonal skills 8/9 Professional Advice and recommendations 6/6

Ability to deal with people 3/6 Completed Cases 3/6

Team participation 5/6 Written Reports 2/3

Oral communication 7/7









Person 8

Interpersonal Skills 8/9 Professional Advice and recommendations 5/6




Team Level:

The team’s

performance

Open and Honest

Communication

6/6

Effective Meetings 4/5

Team Mission 4/5

Clearly Defined Roles 4/6

Decision-Making Procedures. 5/5

Person 1: senior level marketing department

Person 2: middle level marketing department



Person 5: senior level business processes department

Person 6: senior level finance department

Person 7: middle level business change department

Person 8: middle level human resource department


Individual performance evaluation

1. Individual Behavior

i. Interpersonal Skills

a) with few exceptions, interacts effectively, tactfully, and cooperatively with all levels of the organization;

b) routinely expresses support for the value of diverse opinions;

c) routinely establishes rapport in initial contacts with others at all levels;

d) routinely gains support for ideas or suggestions through effective negotiation skills;

e) spends sufficient time cultivating contacts with peers to get timely information or resolve issues outside formal

channels;

f) Routinely keeps superiors, team members, and other appropriate parties informed of significant developments.

g) consistently wins the support and confidence of others in one-on-one as well as group situations;

h) presents positions with force and diplomacy, achieving agreement despite initial opposition;

i) handles confrontations and hostile reactions calmly, in a way that defuses the situation

i. Ability to Deal with People

a) routinely deals with others in a professional manner;

b) routinely keeps superiors, team members, and other appropriate parties informed of significant developments

c) calm and courteous, even when dealing with irate or rude people;

d) gets a point across in difficult situations without hurting feelings;

e) is highly effective in obtaining needed cooperation or support to complete a job; and

f) Negotiates effectively in delicate situations.

ii. Team Participation

a) Routinely assumes an appropriate amount of work/responsibility for group projects;

b) Usually demonstrates a willingness to assume other responsibilities as needed;

c) Generally shares knowledge of office procedures/equipment with other members of the team.


d) In times of crisis or high workload, is always willing to “jump in” and lend a hand to accomplish “must do” work;

e) In joint efforts, is always available for a full share of the load;

f) Always insures that appropriate people or offices within the agency are made aware of significant changes in

procedures.

iii. Oral Communication

a) Usually conveys information and ideas understandably;

b) Routinely asks for clarification if the meaning isn’t clear;

c) Usually relays telephone messages accurately with few exceptions;

d) Usually explains any need for information or input from others.

e) Has an excellent command of English, and expresses ideas with ease;

f) is highly articulate with all levels of employees; and

g) is unusually persuasive, one-on-one or with groups.

Individual Results

iv. Professional Advice and Recommendations

a) Provides expert advice to team members and customers that is usually accurate and timely; and

b) Advice is usually meaningful and contributes to the success of the team.

c) Advice contains innovative approaches/solutions to problems;

d) Improved accomplishment of team objectives results from employee’s unusual initiative and effective work habits;

e) Clients and team members seek out employee for advice and expertise;

f) Voluntarily completes a significant amount of additional work or special assignments

v. Completed Cases

a) Completes 10-25 cases of simple or average difficulty per month and 2-5 difficult cases per month. Cases are

completed using established procedures and effective case planning, prioritization, and development;

b) Handles preliminary investigations in a timely manner, with rare exceptions;

c) Case inventory declines by at least one case per month.


d) Applies innovative procedures that improve effective case planning, prioritization, and development;

e) Teaches innovative casework procedures to other team members;

f) Completes more than 35 cases of simple or average difficulty per month and completes more than 7 difficult cases

per month.

vi. Written Reports

a) With few exceptions, written products include accurate data, detailed information, and are in the correct format,

with only minor errors;

b) Written reports are produced as requested, usually within the time frames established, and routinely meet the

customers ‘needs.

c) Written products are error free, reflect great attention to detail, and completely review all aspects of the subject

matter.

Team performance evaluation The Team's Processes

� Open and Honest Communication

The supervisor, team leader, and team members are generally satisfied that:

a) Team members communicate openly and honestly with each other without fear of telling the truth;

b) Team members provide feedback on each other’s performance;

c) Team members express their opinions and everyone’s opinion is heard;

d) The team works together to solve destructive conflicts rather than ignoring conflicts;

e) The team encourages every member to be open and honest, even if people have to share information that goes

against what the team would like to hear;

f) The team recognizes that everyone on the team has something to contribute— such as knowledge, skills, abilities,

and information— that is of value to all.

� Effective Meetings

a) Team meetings are planned and each meeting has an agenda;

b) Team members are prepared, give the meeting their full attention, and the team accomplishes what it set out to

accomplish during the meeting;

c) Meetings have a facilitator who is responsible for keeping the meeting focused and moving;


d) Designated team member takes notes of the key subjects, main points raised, and action items;

e) At the end of the meeting, the team sets an agenda for the next meeting and conducts a 1-minute evaluation.

� Team Mission


a) Each person on the team knows exactly why the team exists and what it contributes to the organization;

b) Members understand and can explain how the team fits into the organization;

c) Members know exactly why the team does what it does and agree on the team’s mission, or they work together to

resolve disagreement;

d) Members know and understand the team’s priorities and goals and they progress steadily toward those goals;

e) Everyone on the team is working toward accomplishing the same thing.

� Clearly Defined Roles


a) Team members understand their duties and know who is responsible for specific issues and tasks;

b) Team members have the skills they need to accomplish their roles within the team;

c) Each team member’s role is known and makes sense to the whole team;

d) Team members clearly understand the team’s rules of how to behave within the group;

e) Team members understand which roles belong to one person and which are shared, and how the shared roles are

switched;

f) The team uses each member’s talents, and involves everyone in team activities so no one feels left out or taken

advantage of.

� Decision-Making Procedures.


a) The team discusses how decisions will be made, such as when to take a poll or when to decide by consensus;

b) The team explores important issues by asking members to vote or state an opinion verbally or in writing;

c) The team tests for a consensus;

d) The team uses data as the basis of decisions;

e) The team can reach a decision and support that decision.


Appendix C: REFERENCES

1.Annual reports (2009), Nairobi stock exchange

http://www.nse.co.ke/newsite/inner.asp?cat=areport [Retrieved 18th

February 2010] 2.Ansoff, H. I.,Strategies for diversification,Fowski http://www.foswiki.org/pub/Sandbox/.../Strategies_for_diversification.pdf. [Retrieved 5th april 2010] 3.Eaton, B. Tuckman’s Five Stage Model,

http://www.berlineaton.com/resource_files/Tuckmans_Model.pdf [Retrieved 23rd February 2010] 4. Hackman et al, Guide to managing human resources, Berkley University http://www.hrweb.berkeley.edu/guide/performance.htm [Retrieved 6th March 2010] 5.Kingdom press release, co-operative bank of kenya www.co-opbank.co.ke/Main.../Kingdom-Securities-Press-Release [Retrieved 16th february 2010] 6.Kingdom securities ltd financial results, Cooperative bank of Kenya http://www.co-opbank.co.ke/Main-Site/Home/Kingdom-Securities/Kingdom-Securities-Financials [Retrieved 6th March 2010] 7.SAP White paper (2004) New product development and introduction, SAP AG 8.Schnaars, Steven, and Paschalina Ziamou. "The Essentials of Scenario Writing." Business Horizons 44, no. 4 (2001): 25–31. 9.Sull, d. (2010), competing through organizational ability. mckinseyquarterly http://www.executiveeducation.london.edu/.../compete_through_org_agility_McKQ.pdf [Accessed on 12th June 2010]


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