Business Process Re-engineering as a Tool for Management of Strategic Change at Kenya Electricity Generating (Kengen) Company Ltd

Abstract

Since the late eighties business process re-engineering (BPR) has established itself as one of the the most attractive change management options for coping and adapting in to the competitive environment. This study sought to investigate the use of business process re-engineering us a tool for management of strategic change .it KenGen. The objectives of the study were to establish the link between aPPllL,mons ot liPK ,ls 11101,1 lor management of strategic change and corporate strategic objectives of KenGen, to examine the nature of the BPR project management process. characteristics ot significant changes made after the implementation of BPR in KenGen and to identify the challenges faced in the application of BPR as a tool for management of Strategic change in KenGen. An interview method was used to collect data. Seven members of executive Ik>Jv at KenGen wire interviewed. Moreover a focused group discussion involving ten management stall was earned out to explore additional information. The Truvor driver for chunge at KenGen was the growing demand lor electricity Other drivers included change in die regulatory environment, competition horn independent P°\vu producers, regional inter connectivity and the return required on investment. I lie lour allergic objectives ut KenGen to oversee the change process were, capital execution and planning. regulatory management, operational excellence and oveiall oigaiu/atioiul effectiveness. When choosing BPR as a tool for management ot stiategic change the company looked at three things: business strategy, business process and organizational structures. BPR was seen as a vehicle for achieving corporate strategic objectives. Ihcrc were various preparations that were done before the process could be started First the company nought the help of consultants to guide H through the change process. A joint team comprised of KeGen and the consultant established training ol the team has been undertaken. he resources required for the process were allocated by the CT.O to support the process. Hie CFO then ensured that all employees were informed of the change taking place. BPR project was designed and mechanism of step by step execution was put in place. The first step w as identifying the need for strategic change, the second step was identifying the direction you *ant to go. the third step was identifying the processes and finally develop the structure that 8 responsive to those processes Identification of thirteen major processes that can support the cw strategy conducted. Very body in the company was involved in the project management