TRAINING COURSE “BUILDING KEY PERFORMANCE INDICATORS (KPIs)” AT HA LAN FERTILIZER JOINT STOCK COMPANY

Management model (BSC – KPIs) has been the interest of Vietnamese enterprises since 2005. According to the Vietnam Report, after more than 10 years of development in Vietnam, 7% of 500 largest enterprises applied BSC – KPIs and 36% of them had the plan. This data demonstrates that this is an effective management method, so a comprehensive understanding of the method as well as difficulties and advantages are the concern of most enterprises.

Management model (BSC – KPIs) is Performance – P2 of the Consulting Project “Building human resources development & management system by integrated technology method DIR + OS + 3Psil” for Ha Lan Fertilizer Joint Stock Company. KPIs implementation process for Deparments of Ha Lan Fertilizer Joint Stock Company is the current step of the project. Specially, INLEN will support Ha Lan Fertilizer Joint Stock Company to make their products which help the whole have better awareness because these are allocated to each individual.

Commonly, each job title will have a job description or monthly work plan. Managers will apply indicators to evaluate the effectiveness of this. Based on the completion of KPIs, the company will have the reward and punishment regime for each individual. To implement KPIs, the company should build a system of goals from high to low according to the MBO method. However, it is difficult to set up the goals for particular jobs, the consultant will build standards for the process (This is Management By Process - MBP) and these are also KPIs. BSC – KPIs management model will give Ha Lan Fertilizer Joint Stock Company the following benefits:

  • Measure the performance of an individual, organization, enterprise against the target;
  • Help managers provide the reasonable reward and punishment regime, thereby motivating staffs to work better;
  • Help staffs have the holistic view of their work goals, know important factors and priority work to complete them;
  • Contribute to deeply shaping and developing the goal, vision, strategy and corporate culture in each individual.

BSC – KPIs model has appeared in the 80's of the 20th century, but in Vietnam, the application has been common in recent years. Many Vietnamese enterprises have failed in this model because of the peculiarity of this, although they are very desirable to implement. The lack of determination of the steering committee is one of the most momentous faults that leads to failure when building the BSC - KPIs management model. The managers of the enterprise must have high determination because the haft way is the path to failure. The leader needs clear management and organizational understanding to transmit fully to the whole.

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