Challenges of Implementation of Business Process Re-engineering as a Tool of Change at Kenya Commercial Bank Group Limited

Abstract

Existing literature describes the relevant studies on Business Process Re-engineering and change management in the service sector, but very little has been written on its effects in the Banking industry. Business Process Re-engineering is the fundamental rethinking and radical redesigning of a business process so that a company can best create value for the customer by eliminating barriers that create distance between the employees and the customers. The aim of the research was to identify the challenges of implementing Business Process Re-engineering as a tool for change management in Kenya Commercial Bank. The research objectives are to identify the specific challenges of Business Process Re-engineering implementation in change management through a literature review and empirical study. The research for this study attempts to address this deficiency. Qualitative data collection methods were used in the investigation. A questionnaire was used as a research tool. The interview guide was used to pose questions to the respective bank departmental directors and collected for analysis and interpretation in line with the aims of the study. The results of the study revealed that most respondents agreed that Business Process Re-engineering was a tool for change management though there were challenges in its implementation. It was recommended that for future studies that a broader study be done on the same context to cover more respondents. It was also suggested that a study be done on views of the low and middle level employees on management in Kenya Commercial Bank. More studies also needed to be done on the challenges of implementing Business Process Re-engineering as a tool for change management in other organizations and financial institutions. It was recommended that Business Process Re-engineering must be accompanied by strategic planning, which addresses leveraging IT as a competitive tool. It was suggested that Business Process Re-engineering must be owned throughout the organization and not driven by a group of outside consultants. The research also proposed that cross functional teams must be comprised of both managers as well as those who will actually do the work. It was also recommended that Business Process Re-engineering must be sponsored by top executives, who are not about to leave or retire. It was resolved that change management during the Business Process Re-engineering Implementation process would determine its extent of success or failure.