Business Process Re-engineering and Organizational Performance of Commercial State Corporations in Kenya

Abstract

The business environment is constantly changing and so it is imperative that organizations adapt to changes that can support its survival and prosperity (Johnsons and Scholes, 2008). The core outcomes of BPR activities are improvement profit maximization and cost reduction (Al-Mashari and Zairi, 2001). The success of every organization begins by recognition of customers and their input to the firm. This is achieved through re-engineering the core business processes in an organization with the main motive of improving shareholders value perceived through increased ROI, Market Share, Debt to Asset Ratio and Profitability. Business Process Re-engineering therefore ensures that customers are served faster and that they get the best value for money and that products and services required are delivered in a manner most convenient to them while minimizing cost and maximizing on profitability enhanced leading to improved organizational performance. (Hammer and Champy, 2001). The study investigated the extent to which Business Process Re-engineering implementation affect Commercial State Corporations in Kenya. It also looked into the relationship between Business Process Re-engineering and organizational performance of Commercial State Corporations in Kenya. The study adopted a census in which the entire population was considered. Both primary and secondary data sources were used. The target population was the 24 Commercial State Corporations in Kenya listed under State Corporations Act and recognized in the Kenya Gazette. The data was collected by use of semi-structured questionnaires and respondents were management of commercial state corporations. The quantitative data generated were analyzed with the aid of Statistical Package for Social Sciences (SPSS). The study findings revealed that there is a significant relationship between BPR Methodologies and organizational performance. The study used Pearson’s correlations as model of analysis. These results found imply that PADM BPR Methodology contribute more to the organizational performance of commercial state corporation followed by Davenport’s & Short’s BPR Methodology, OO-BEM BPR Methodology, Hammer & Champy BPR Methodology and finally Integrated BPR Methodology. BPR Methodology collectively accounts for 70.5% of change in organizational performance of commercial state corporations in Kenya. It is recommended that all the commercial state corporations to embrace BPR Methodology that best improve on their ROI, Profitability, Market share and Debt & Liquidity ratio. The commercial state corporations also need to adopt BPR Methodology that addresses the trendy emerging issues within their respective industries to boost organizational performance.