Challenges and Success Factor of Strategy Implementation in Ethiopian Insurance Corporation In Dire Dawa

Many organizations face significant difficulties with regards to strategy implementation process as most strategies fail to produce superior performance for the firm due to poor implementation. The purpose of the study was to examine the challenges and success factor of strategy implementation in EIC in case of dire dawa. The objectives of the study were to examine the challenges and success factor of strategy implementation in Ethiopian Insurance Corporation. The study adopted a descriptive research design in which 61 respondents were sampled using stratified sampling. The study targeted those employee working in manger position and principal and senior positions. The data was collected using questionnaires which were likert scale in nature. The data was analyzed using descriptive statistics such as frequencies, percentages, mean score and standard deviation. The study showed that there was a positive relationship between the independent variables and the dependent variables. Further the study results revealed that the independent variables have an effect of the dependent variable. The study findings established that organization culture had a positive relationship with Strategic implementation. The findings also established that organization leadership was significantly and positively related to strategic implementation. In the study findings on effects of resources on strategic implementation; both financial and human resources were found to have a positive influence on the success of strategic implementation. Finally, the findings of this study revealed that organization structure and technology had positive effects on strategic implementation The study also established that staff resistance to change and lack of skills to some extent affected the implementation of strategies by the organizations. However, lack of top management commitment, organizational culture and structure were challenge to the implementation of strategies in Ethiopian Insurance Corporation. The study established that inadequate funding and untimely disbursement of resources was never a hindrance to the effective implementation of strategies in EIC. Based on the finding above the study recommended that organization should engage the employees in building a good organization culture will in turn have positive effects on strategy implementation. The study recommended that organizations should be structured such that there is timely and effective flow of information both vertically and horizontal x Within the organization the study also recommended that organizations should strive to look for strong individuals who have the qualities to imbued, motivate, inspire and equip other staff with the vision of the future in order to attain the set objectives. Individuals mandated with the responsibilities to lead other must understand that the success of the organization depended on their abilities to coordinate all the system in an efficient manner. They should encourage a culture that is results oriented, focused and discipline in order to succeed. The study recommended that first, the management of public corporations should steer clear from politics to avoid political interference in the implementation of strategies in the public corporations. Second, the organizations should organize for seminars and workshops where the employee’s skill will be enhanced through training and finally, the study also recommends that the organizations should sponsor its staff to further education.