Vice Principal Hoang Anh Tuan delivered the opening speech at the Workshop.
Speaking at the opening of the workshop, Associate Professor Dr. Hoang Anh Tuan (Vice Rector of the University of Social Sciences and Humanities) emphasized: “KPIs and OKRs are tools that help organizations maximize their resources, maintain and build a transparent and professional working environment. However, many businesses and organizations have not been truly successful in using this method. In particular, OKRs are not yet widely popular. So what difficulties and challenges are businesses/organizations facing? What needs to be done to overcome those difficulties and effectively use KPIs and OKRs? That is a key content of this workshop”.
Assoc. Prof. Dr. Hoang Van Luan - Head of Scientific Research Management Department spoke at the Workshop
Dr. Nguyen Thi Kim Chi (Deputy Dean of the Faculty of Management Science, University of Social Sciences and Humanities) brought to the Workshop a presentation on “OKR and the benefits of OKR for Vietnamese enterprises”. The presentation mentioned the concepts of KPIs and OKRs and analyzed the positive effects when applying these management methods in business administration activities. Accordingly, KPIs stands for Key Performance, understood as indicators for evaluating work performance, including basic performance indicators, which are tools for measuring and evaluating work efficiency expressed through data, ratios, and quantitative indicators. The presentation also presented the structure of OKRs (Objectives and Key Results) including major goals and key results, in which the implementation of key results will lead to the completion of major goals. However, in reality, many Vietnamese enterprises have not been really successful in applying these two management tools.
Assoc.Prof.Dr. Dao Thanh Truong - Head of Faculty of Management Science spoke at the Workshop
Dr. Nguyen Thi Nam Phuong (Deputy General Director of OCD Management Consulting Joint Stock Company) mentioned the mistakes to avoid and proposed solutions to overcome them in designing and implementing KPIs and OKRs. In Vietnamese enterprises, KPIs and OKRs are not yet recognized as a strategic system but are mainly used in human resource management to evaluate individual work results, lacking connection with the enterprise's strategy, lacking connection between functional departments. The 5 main mistakes that the above manager pointed out are: Inappropriate design method, Inappropriate implementation method, Lack of monitoring, analysis and reporting applications, Using KPIs that are not suitable for the function of this system, Not considering KPIs as a process of continuous change.
Dr. Nguyen Thi Nam Phuong - Deputy General Director of OCD Management Consulting Joint Stock Company
According to Dr. Nguyen Thi Nam Phuong, to overcome the above limitations, it is necessary to choose the appropriate method and roadmap: if OKRs are suitable for businesses in the start-up stage and have a strong growth rate, and if the business is relatively stable, KPIs are the right choice. In addition, it is necessary to have qualified personnel to deploy and choose the appropriate technology to monitor, calculate, and evaluate results.
Dr. Nguyen Thi Kim Chi - Deputy Head of Faculty of Management Science presented the report "OKR and the benefits of OKR for Vietnamese enterprises"
MSc. Phan Van Son (Director of Consulting Services - H&D Academy) approaches KPIs and OKRs from the perspective of "Researching the changing trends of performance management through 2 cases: Microsoft Corporation and Google". From the process of building and developing the 2 giant corporations, the author makes the following comments on the shifting trends in performance management:
First, structural change: Eliminate evaluation based on rigid administrative structure from top to bottom (department head evaluates deputy head, deputy head evaluates specialist...). Each position will be evaluated by subjects whose relationship affects the quality of work of that position (employees in the department evaluate their department head, department heads with cooperative relationships evaluate each other...).
MSc. Phan Van Son - Director of Consulting Services - H&D Academy
Second, shift to the basis of assessment: Assessment needs to be data-based, based on records rather than emotional assessments.
Third, shift to the rating scale: The rating scale may not need to be tied to specific scores, but should specify the level of improvement needed so that the person being evaluated can focus on changing, the level of excellence so that the person being evaluated can discuss and seek out the behaviors that create that excellence to promote and replicate.
Looking at the benefits that KPIs and OKRs bring, learning from the mistakes that businesses often make, and basing on the development trends of performance management drawn from the activities of Microsoft and Google - this is important background data to effectively set up and apply KPIs and OKRs in the organization.
Dr. Mac Quoc Anh - General Secretary of Hanoi Association of Small and Medium Enterprises
As Vice President and General Secretary of the Hanoi Association of Small and Medium Enterprises, Dr. Mac Quoc Anh gave a speech on the relationship between "KPI and OKR with Vietnamese small and medium enterprises". Currently, small and medium enterprises account for 97% of the total number of enterprises in the national economy. The number of small and medium enterprises dissolved in 2018 accounted for 36% of the total. Dr. Mac Quoc Anh analyzed: in terms of awareness, enterprises need to be aware that KPIs and OKRs are extremely important management tools for micro, small and medium enterprises for the development of enterprises, especially in the current era of integration. They help eliminate familiar relationships and traditions of father-to-son transmission in micro, small and medium enterprises; at the same time, they help enhance the reputation of enterprises, ensuring sustainable development, in line with strategic goals. Business leaders and department leaders must have a correct and sufficient understanding of these management tools and understand the thinking of their superiors. Employees must understand that these management tools not only benefit the business, but also the employees themselves.
Ms. Tran Thu Hong - CEO, Chief Consultant of HSM Technology Investment and Development Company
From the perspective of a KPI implementer in a business, Ms. Tran Thu Hong (CEO - Chief Consultant of HSM Technology Investment and Development Company) presented a paper on "Application of KPIs in actual business operations" for large businesses, but the level of maturity of the business is still not sufficient.
Once again, Ms. Tran Thu Hong affirmed that "KPI must be linked to the strategic goals of the organization", each enterprise needs to build its own KPI system. Second, KPI needs to be determined based on the main or core business goals of the enterprise, do not confuse KPI with measurement indicators in production and business activities. Third, it is necessary to establish a "SMART" and "SMARTER" KPI: Write a clear goal for KPI; Share complete, clear, and timely KPI information to stakeholders in the organization, ensuring KPI is implemented; Put into specific actions; Ensure the KPI system is suitable for changing needs in production and business activities.
Closing the presentations at the conference, MSc. Bui Trang Huong (lecturer of the Faculty of Management Science, University of Social Sciences and Humanities) introduced to everyone about “Key Performance Indicators (KPI) and KPI applications for university lecturers” with detailed criteria when evaluating the teaching and research activities of lecturers.
Author:Nguyen Nga, Le Huy
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