This study is launched with the purpose to explore the effort made by ERCA to achieve therngoals of BPR. BPR is a radical rethinking of an organization and it is cross functional, end-rnto-end process and an effective tool of work design.rnThe researcher preferred to undertake the study in examining the current situation inrnreference to the desired set of conditions as per the theoretical framework of BPR. By sorndoing, points of investigation pertaining to the challenges and prospects are helpful forrnpolicy makers, policy implementers and policy beneficiaries. Attempts have been made torninvestigate the compelling factors initiated ERCA to introduce BPR to its system, challengesrnfacing in implementation process and prospects envisioned including indicativernachievements in relation with BPR. Data was gathered through Questionnaire, Interviewrnand Review of both published and unpublished materials. A total of 121 persons wererncontacted for the study, i.e. 84 employees and middle level managers from Headquarters, 2rnDirectors, 1 Deputy Director General from ERCA,30 top management members from the sixrnbranches of ERCA around Addis Ababa, 3 representatives from the three selected customerrnassociations and 1 consultant from CSRP office of MCB.rnThe findings of the study, among other things, revealed that BPR has been considered as therncausal factor for effectiveness and efficiency as well as better customers service; the degreernof commitment of top management is fairly high; the awareness and the attitude ofrnemployees as well as the management is moderate which is accompanied by significantrncommitment gap and resistance to change; weak IT infrastructure; and weak evaluation andrnmonitoring. To alleviate the challenges it is recommended that implementation of the newrnlaws, rules, regulations, manuals etc, should be preceded by an appropriate training andrnawareness development. In addition to this, the decision making process need to bernparticipative and transparent