Innovating management methods in VNPT: Solutions to improve labor productivity

VNPT Group is one of the leading companies in Vietnam to successfully apply management tools such as BSC, KPI to control strategic objectives and evaluate their performance effectively.

Balanced Scorecard (BSC) is one of the modern management methods and is a widely used tool in organizations aimed at effectively controlling the goals set, creating the foundation for the overestimating process of implementing goals in the organization. Business strategies are decisions about targets, the scope of performance (customers, products), competitive advantages, core competencies and a series of activities to implement the strategy.

From the beginning of the deployment, experts from the Group’s strategic team have developed strategic maps (KPOs) according to 4 scenarios: financial prospect, customer prospect, internal process prospect and the prospect of learning and development. From these objectives, the group identified measurement indicators (KPIs), targets to achieve the objectives of the strategic map. Therefore, the system of performance measurement and evaluation indicators is actually the details of the objectives in the strategic map of the Group. The metrics, goals of the 4 scenarios and strategic goals of the Group have a causal relationship with each other, implementing metrics (KPI) will ensure the implementation of the final goal.

After 4 years of implementation, so far this administration tool has come into stable and effective development. Most of VNPT’s member units have been aware of and well applied this tool in the operational management of their units. VNPT’s facilities in the locality have been coordinating and deploying BSC at different levels, flexibly applying the motivational mechanism, and having a clear mechanism of fine for violating quality. In particular, the monitoring of the implementation process to employees is strictly implemented, which encourages people to do more, increase labor productivity, achieve positive business results and contribute to the results to the overall growth of the Group.

Besides BSC and KPI, the company also applies a salary system of 3Ps calculated according to the job position, staff capacity and work performance efficiency. This helps VNPT differentiate employee salaries based on their level of dedication to the organization. Thus, in the same unit, the same position, good employees can have 2-3 times higher income than those who do not do well. This is the foundation to create a fair and equitable working environment, and at the same time motivate the spirit of efforts to work.

Thanks to these management tools, in the first 6 months of 2016, the Group’s total revenue is estimated at 63,150 billion VND. The total profit of the Group reached 2,160 billion VND, reaching 50.6% of the plan, equaling 121.1% compared to the same period of 2015. The total state budget contribution was estimated at 1,558 billion VND, reaching 46.7% of the plan, equal to 101% compared to the same period in 2015, this figure is constantly increasing in the following years. VNPT has set a target by the end of 2018, the profit will increase by 15% compared to the performance in 2017, the revenue will grow by 6-8% compared to 2017.

On the other hand, thanks to the improvement of the above mechanisms, the coordination between VNPT’s member units has been clever, helping to shorten the time to provide services to customers. This helps to increase service quality, increase customer satisfaction level – a factor that helps VNPT constantly increase subscribers, revenue and profits.

Productivity and Quality Office