Building a sustainable business with 3 management tools of iEIT

In order to implement the program of Improving productivity and product quality of industrial goods, the Institute of International Economics and Trade – Foreign Trade University has built 3 sets of management tools and software based on the BSC & KPI and 3Ps.

In the framework of the project “Improving productivity and product quality of industrial goods”, chaired by the Ministry of Industry and Trade, a research team from the Institute of International Economics and Trade (iEIT Institute) – Foreign Trade University was assigned tasks to “Develop and support the application of tools and software for enterprise health diagnostics, strategic planning, target management and salary payment through efficiency/contribution value under the BSC & KPI method and 3Ps for industry and trade enterprises” to improve the performance of enterprises in Vietnam.

BSC (Balanced Scorecard) is a system developed by two professors Kaplan & Norton of Harvard University. BSC will cover 4 key aspects: finance, process, customers, competence and 2 additional aspects: employee satisfaction, environment and community. This management system is considered as an important step in managing the operations at the enterprise, not just focusing on a financial aspect like before.

KPI is the main performance index to evaluate the performance of the work, also known as the key performance evaluation indicators/key performance indicators or can also be called the key indicators. weak assessments of overall performance or a specific activity. KPI is one of the effective tools to help administrators evaluate performance, serve for decision making and develop appropriate development strategies for organizations or businesses.

However, the KPI salary payment system only mentions only one factor in assessment and remuneration, ignoring other issues in human resource management such as human factors and positions. Therefore, S. K. Bhatia (2003), proposed a new remuneration and remuneration model that is more in line with governance. From the perspective of implementation consultancy, HAY Group’s management consultants and a number of personnel and salary experts have formed a 3Ps salary system based on three main factors: Position (P1) – Job position, Person (P2) – People and Performance (P3) – The level of job completion has been applied quite effectively at different organizations and businesses across the globe.

In order to realize these theories, the research team has built three sets of operational tools for enterprises to apply in the management process. Three sets of tools include: The corporate health diagnostic toolkit, the toolkit to support strategic planning and goal management according to the BSC & KPI methodology, the toolkit to support the development of an effective salary payment system and The contribution value is in 3Ps method. These are considered effective assistants in the process of corporate governance. Actual implementation in small and medium enterprises in Vietnam has shown the effectiveness of applying the above toolkit. At the same time, so that the application can easily reach all businesses, the research team has designed a set of manuals for using the respective tools.

In parallel with the toolkit as a guideline for management activities, the iEIT Institute also designed convenient software to use, corresponding to each function. Including enterprise health diagnostics software, businesses are responding enthusiastically and effectively. The seminar “Launch of iEIT Vietnam’s Health Diagnostics Software” held at the end of 2019 has also attracted a lot of attention from the community interested in corporate governance. In addition, the software to support strategic planning and target management by BSC & KPI method and the software to support the effective salary payment system and the value of contribution under the 3Ps method are in the process of being implemented, which is expected to be soon applied to businesses from March 2020.

In addition, iEIT Institute will also organize training courses on how to use the three tools above at businesses across the country and tailor management solutions at 15 units. As such, it can be seen that the development and application of enterprise health diagnostic tools and software, strategic planning, target management and effective pay/(value) contribution by the method BSC & KPI and 3Ps are an urgent task for every industry and trade enterprise in the present integration era. This is also the top goal of the Institute of Economics and International Trade in the process of researching and developing the quality of the enterprise as well as its output.

Currently, the Institute of Economics and International Trade is implementing the first phase of registration for enterprises wishing to attend the program. For details on how to register, preferences and benefits, please visit the website: http://ieit.edu.vn/detaibct or hotline 0909.111.485 (branch 4).

Source: iEIT