Reengineering in Access Bank Plc

Only available on StudyMode
  • Download(s) : 38
  • Published : July 3, 2012
Open Document
Text Preview

1.0 INTRODUCTION

Access Bank Plc is on the company carrying on the business of commercial banking in Nigeria. Access Bank Plc has its registered corporate head office at Plot 1665 Oyin Jolayemi Street Victoria Island Lagos. Access bank Plc was in- corporated as a private limited liability company on February 8, 1989, to undertake the business of commercial banking and commercial operations started on May 11, 1989. The bank converted to a public limited liability company on March 24, 1989 and was subsequently listed on the Nigeria Stock Exchange on November 18, 1998 at an initial offer price of 70kobo per share. The bank was issued a universal banking license by the Central bank of Nigeria on February 5,2001. The Central Bank of Nigeria (CBN) prescribed a minimum capital base of N25billion for all banks in Nigeria with effect from December 31, 2005. To achieve the N25 billion capital directive, the bank combined its business with those of Capital Bank International and Marina International bank Limited. The Combination was approved by the CBN and the High Court of Justice on the 7 October 2005 and 11 October 2005 respectively. The authorized share capital of the Bank are:

-N9 Billion-Ordinary shares of 50k each
-N1 Billion-Preference shares of 50k each

The percentage shareholding structure of the bank is as follows: -Nigeria citizens-89.77%
-United Alliance limited -5.61%
-Staff Investment scheme -4.62%
100%

The main principal activities of the bank includes, provision of money market activities, retail banking, granting of loans and advances, equipment leasing, corporate finance and foreign exchange operations. The bank has a very strong management team headed by a professional banker from guaranty Trust bank Aiggboje Aig- Imoughude MD/CEO and Herbert Wigwe a seasoned banker who took over the affairs of the bank in 2004 and transformed the old ailing Access bank (due to bad debts and poor credit decision) from a loss position to a profit of N1billion PBT, mainly due to sound credit decision.

1.1 RE-ENGINEERING

Reengineering (or re-engineering) is the radical redesign of an organization's processes, especially its business processes. Rather than organizing a firm into functional specialties (like production, accounting, marketing, etc.) and looking at the tasks that each function performs, we should, according to the reengineering theory, be looking at complete processes from materials acquisition, to production, to marketing and distribution. The firm should be re-engineered into a series of processes. The main proponents of re-engineering were Michael Hammer and James A. Champy. In a series of books including Reengineering the Corporation, Reengineering Management, and The Agenda, they argue that far too much time is wasted passing-on tasks from one department to another. They claim that it is far more efficient to appoint a team who are responsible for all the tasks in the process. In The Agenda they extend the argument to include suppliers, distributors, and other business partners. Re-engineering is the basis for many recent developments in management. The cross-functional team, for example, has become popular because of the desire to re-engineer separate functional tasks into complete cross-functional processes. Also, many recent management information systems developments aim to integrate a wide number of business functions. Enterprise resource planning, supply chain management, knowledge management systems, groupware and collaborative systems, Human Resource Management Systems and customer relationship management systems all owe a debt to re-engineering theory.

1.11 Criticisms of re-engineering

It has earned a bad reputation because such projects have often resulted in massive layoffs. This reputation is not altogether unwarranted, since companies have often downsized under the banner of reengineering. Further, reengineering has not always lived up to its...
tracking img