Business process reengineering in financial services sector: a case study of Ghana Commercial Bank (GCB) Limited

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With more and more banks entering the Ghanaian financial sector due to the stable political and macro- economic environment there has been the need for banks and other financial institutions in the financial services sector to come up with new products, services and processes in order to stay afloat. The competition has increased and the market has become very dynamic with more sophisticated consumers. Thus existing banks as well as new ones have to rethink and design products, services and processes that are efficient and cost effective with the aid of information communication technology to remain competitive and profitable. Employing quantitative (structured questionnaire) methods, one hundred and eighty (180) staff of Ghana Commercial Bank Limited was sampled. Out of this number 48% were females and 52% being males. The study therefore sought to find out how reengineering can contribute to improved performance and provide superior services that will continue to attract consumers and enable them to remain profitable. The research design used for the study is a descriptive survey and the result from the sample was used as the basis for discussions and conclusions. Even though return on assets and equity rose by 68% and 61% respectively in 2006 the second year of implementation the bank was not able to sustain this growth as it fell by 30% and 39% respectively in the ensuing year. This result show that the company enjoyed the benefits of reengineering in the early years of its implementation but as the years rolled by the benefits began to wane. The results further indicate that communication and an efficient feedback system as well as an effective and efficient change management system are crucial for the success of any reengineering project. The study thus recommends that the success of any business process reengineering must be the concern of all and that management being the leaders should be at the forefront in the drive for change and should be evident in their actions and this should be communicated clearly to all staff.
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirements for the award of the Degree of Master of Business Administration, 2008