Effects of business process reengineering on service delivery - a case of co-operative bank of Kenya Ltd

Abstract

The objective of this study was to analyze effects of BPR on service delivery to customers of the Co-operative Bank of Kenya Ltd. The study investigated the banks' customers enjoyment of benefits associated with BPR implementation; customers knowledge on BPR implementation; identified the driving forces towards BPR; determined the response of the bank to customer complains; whether the banks policies are in support of BPR and whether the banks management are satisfied with the current method of service delivery.

The researcher adopted a descriptive survey research design. Six branches of the Co-operative Bank of Kenya located in Nairobi were selected for the research. Fifteen questionnaires were distributed in each branch. Stratified sampling and convenient sampling procedures were used. The data was analyzed using the Statistical Package for Social Sciences (SPSS) software.

The study revealed that the bank has undertaken various BPR projects with an aim of restructuring itself along the process lines; this has been achieved through removing functional barriers and accommodating a balance between functional expertise and process involvement which has been made possible by offering centralized banking; reducing a lot of paper work; installation of ATM machines; introduction of cheque deposit boxes; implementation of home banking system; upgrading of the core banking system - the Bank master and redesigning of the banking halls.

As a result of undertaking reengineering projects, there has been an improvement in measures of performance such as quality service and speed. This has been possible because the management has been able to identify the processes that are central to its business and also by finding ways and means of improving such processes. This is in line with Davenport and Short (1990) who defined BPR as the analysis of workflow and process within and between organizations.