Asian Journal of Economics, Finance and Management

Organizational performance has increasingly become a focus for companies, especially after the 2008 global economic crisis. Change management practices are among the key strategies employed to sustain and enhance performance. NCBA Bank Kenya, formed from a merger between NIC and CBA banks, undertook significant changes including system upgrades to unify operations. While the initial phase of system consolidation was smooth, the second phase encountered migration challenges, leading to penalties for customers. The study assessed the relationship between change management practices and organizational performance at NCBA Bank Plc, Kenya. The study focused on four main objectives: the effect of change planning, communication, employee participation, and knowledge sharing on organizational performance. It was guided by the McKinsey 7s Model, Kotter’s model, Kurt Lewin’s Model, and the theory of organizational performance. A descriptive research design was used with a sample of 257 employees from NCBA’s head office and 35 Nairobi branches, selected through stratified random sampling. Data collection involved questionnaires (79% response rate) and document review. Instrument reliability was confirmed with a Cronbach alpha of 0.765. Data were analyzed using SPSS through multiple regression and correlation analysis. The results indicated that without change management, NCBA’s performance declined (R=2.194, p>0.05). However, improvements in change planning (R=1.119, p<0.05), employee participation (R=0.269, p<0.05), and knowledge sharing (R=0.276, p>0.05) positively impacted performance. The study recommends exploring change management in other financial institutions such as insurance and mortgage firms.