Business Process Reengineering as a Strategic Tool At Kcb Bank
Changes in organizations due to various factors such as technological advancements or increased competition usually have an effect on business processes. Advancements in technology provide new capabilities for new and old processes while competition is critical in forcing the organization to change the direction of previous processes thereby invoking business processes reengineering. This research project discusses business process reengineering as strategic tool at KCB Bank. The research project established how business process reengineering has enabled KCB Bank cope with pressures from competitors and keep up with the rapid advancement of technology by reconstructing their processes and improving how they conduct their businesses. Process reengineering is the reinvention or redesign of how work is done or performed and it is an applicable concept to all industries regardless of type, size and location. Business process reengineering crucially depends on linking production procedures and organizational services to enhance business goals and objectives. The following question was used as a guide in the entire study; what are the effects of business process reengineering in developing strategy, organizational performance and change management at KCB Bank? The study is a contribution to the entire banking sector, government and the national treasury. In order to support the objectives of the study, the researcher looked into literature done by different scholars. The theories that underpin the study are agency theory and institutional theory. The researcher employed use of a case study design and the target population being the employees of KCB Bank. The data was collected using a semi structured interview guide. The data collected was analyzed using content analysis method since it was qualitative, textual and the outcome was presented in prose. The findings of the study were that organizations must develop new tools, new concepts, new strategies and new minds to cope with the turbulent and chaotic environment leading to continuous, radical and dramatic change. The study also observed that KCB Bank has experienced better performance after reengineering its processes. It was noted that the bank invested heavily towards training, innovation and cost leadership. The study has greatly contributed to process formulation and strategy development at KCB Bank and other financial institutions for the sole purpose of gaining competitive advantage. The study has also added to the body of knowledge through provision of reading literature. Finally, the study recommends further studies to be done on other banks in Kenya since different banks operate in different work environments.