Improving developer performance a study of low performance of production team of SMI company

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Duong Tran An An IMPROVING DEVELOPER PERFORMANCE: A STUDY OF LOW PERFORMANCE OF PRODUCTION TEAM OF SMI COMPANY MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2020 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Duong Tran An An IMPROVING DEVELOPER PERFORMANCE: A STUDY OF LOW PERFORMANCE OF PRODUCTION TEAM OF SMI COMPANY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Assoc Prof TRAN HA MINH QUAN Ho Chi Minh City – Year 2020 TABLE OF CONTENTS EXECUTIVE SUMARY ACKNOWLEDGEMENT .3 LIST OF TABLES & FIGURES I INTRODUCTION COMPANY PORTFOLIO COMPANY STRUCTURE COMPANY VISION INFORMATION TECHNOLOGY INDUSTRY .8 II PROBLEM CONTEXT .8 RECOGNIZED SYMTOM POSSIBLE PROBLEM 11 III PROBLEM IDENTIFICATION 11 FAILURE PRODUCT 11 UNTRACTIVE SALARY AND BONUS 13 INEFFECTIVE PERFORMANCE APPRAISAL 16 LACK OF LEADERSHIP 19 CAUSE – EFFECT MAP 21 IV CAUSE VALIDATION 22 V RECOMMENDATION/ SOLUTIONS 26 Set up Effective KPI for Production team 26 Training Team Leader .27 VI ORGANIZATION OF ACTIONS 29 VII CONCLUSION .30 VIII SUPPORTING INFORMATION .31 REFERENCE 46 EXECUTIVE SUMARY With the outstanding development of Internet, the Information Technology industry is considered as special advantage of Vietnam as well as spreading, promoting the development of many industries and economic aspect Therefore, this is also a good opportunity for young people who are passionate, creative and interested in learning in technology industry to explore their skills Information Technology (IT) is a collection of modern scientific methods and technical tools mainly computer and telecommunication techniques - to explore and use all the effective and potential information resources in all areas of human and social activities In addition, with the globally connected internet, the IT industry has become an integral part of the development of today's society Therefore, with the fierce competition in this industry, the developers, coders are required to enhance their continuous innovation to catch up with the development of the IT product markets This puts a lot of pressure on the employee in this field especially when they are in charge of developing new technology products/ services, because it requires differentiation, sensitivity and constant updating of innovation to maintain their business in the IT market When a new technology product that has been built for months and it did not get high results from the market, it would be considered, as failure product and the developer need to continue to build the new one If this happens for several time, the team will be in the results of low performance This is also an ongoing problem of Production team of SMI Technology Company So by this report with the uses for both primary research and secondary research to analyze more about the business activities of technology industry in general and the production team of SMI Technology company in particular to learn more about how the team deal with the low performance as mentioned above Thereby, the report further analyzes the causes that can lead to low performance of the team as well as provide solutions/ recommendation to improve the cohesion of the developer, coder of SMI Company ACKNOWLEDGEMENT I would like to express my thank to my dear mother, my husband, my son, my colleagues at SMI company, my classmates and all the teachers at ISB for empowering me, helping me to achieve the successful study that I have completed today Especially, I would like to express my depth thanks to my supervisor - Professor Tran Ha Minh Quan for supporting, guiding me during the past 06 months with his extremely busy schedule Without his dedicated guidance, I would not have been able to complete this report to achieve the goal I have set for the past two years Without this amazing support, I could not accomplish this great goal of my life Thank to Professor Tran Ha Minh Quan Wish him a good health to continue on the journey of the great education development for the next young generation LIST OF TABLES & FIGURES Table 1: Sale Revenue from 2015 to 2019 Table 2: Problem that lead to low performance of Production Team Table 3: Testing report from 2016 – 2019 Table 4: Employee status in 2016, 2017, 2018, and 2019 Table 5: Performance appraisal from 2016 – 2019 Figure 1: Company structure Figure 2: The current age ratio of the production team Figure 3: The circle life of a new product Figure 4: Cause – Effect Map I INTRODUCTION COMPANY PORTFOLIO SMI Technology, a US-invested company specializing in product development and software outsourcing Starting with only few members after 10 years of operation in Vietnam, SMI has built a team of more than 1000 employees with years to be honored with Top 10 Sao Khue award In addition, SMI was voted as the top IT companies and top 32 best workplace in Vietnam based on salary, bonus and welfare criteria; development opportunities; leadership team; culture and values; work life balance and company reputation with the popular product developed by: qTest, Kobiton, Katalon, Witurn and many more will be coming soon The concept of "value" in SMI is not only limited to technical, project and business scope but also expressed the mission to support Vietnam's technology industry with more innovative products and services, SMI always gives priority to community activities to build and develop these values for IT human resources Over the past decade with the vision of global company, SMI Technology has launched many "made in Vietnam" products that have made a mark on the international market, in addition to its global customer base from the outsourcing segment These are included: QASymphony, which received a $ 40 million investment in 2017, then merged with Tricentis and officially became the Unicorn start-up in 2018 In addition, other applications developed by SMI's Vietnamese engineering team such as Kobiton have also received a $ million investment from Kinetic Venture Capital (USA); or Katalon has nearly 35,000 global business customers In order to continue to promote the strengths in the outsourcing and development of software products, SMI is expanding the sales team in the Australian market and Asian market In these markets, SMI specializes in consulting and providing solutions for data management and analysis; Supply chain management solutions and software quality management consulting, target to the mid-range customer segment and potential markets across Asia SMI Technology focuses to actively implements career and training programs, associates with universities to support students with real-life project knowledge and experience from the study time In addition, the company also seeks a number of partners, working with non-profit organizations, with the desire to create a talent software engineers from that lack of conditions in remote areas By investing 05 new offices in Vietnam with a global working environment standard, SMI also focuses to build a professional corporate culture with training and people development program with many interesting activities which the purpose to maintain and develop the company for a billion-revenue company With the commitment to develop IT resources, SMI also support to create the best condition for employees for the opportunities to:  Learn: by giving opportunities, challenge for programmers to learn, and explores their skills  Develop new product: All members at SMI are involved in contributing ideas for the product they create With the purpose to provide best working environment with: open minded – dynamic and professional workplace for all employees and bring high quality job opportunities for Vietnamese engineers and programmers, SMI is proud of to be the leading Technology Company in Vietnam for the next ten years with a billion revenue company COMPANY STRUCTURE SMI is a technology company for the company’s structure is quite simple, under Board of Director; it will be divide to 02 Business Units as below:  Corporate Service, and  Delivery Service Corporate Service is back office function with Finance, Admin, HR, Sales& Marketing, IT, Procurement Department Delivery Service has Our-sourcing service, Production and Solution Department  Out-sourcing service: This is the main profitable department for the company through providing services to customers such as technology outsourcing, providing maintenance software, maintenance services, upgrade system, risk evaluations and repair the system  Production: This is a department of young, newly graduated employees, bringing many unique ideas and initiatives to create new and strange technology products, software development to attract investment from consultants, customers  Solution: This is a specialized department in charge of important projects such as integrating system software of companies together in the process of merger and acquisitions among technology companies The two parts of Out-sourcing and Solution are the two main revenue drivers for the company to maintain the business situation The Production department is mainly the one that the company has invested a lot of money in to create innovative technology products to get the investment from the client, investor or sell the product to the market COMPANY VISION  To be a visionary global technology group with a portfolio of innovative service and product business  Provide guidance and support to our staff to help them define and reach their potential  Achieve success by creating value and marking a positive impact on the success on our customer and clients  Provide tangible contribution and improvement to our communities INFORMATION TECHNOLOGY INDUSTRY Information technology is constantly developing so far, so the demand for human resources is quite huge Most organizations, companies, businesses need employees in the field of Information Technology Typically as:  Software companies that research, build, develop and provide software, website, applications, games - Companies manufacturing, assembling and repairing hardware equipment  Companies provide integrated solutions  Companies provide network solutions and network security  Administration Department, IT department at companies, including companies operating in the field of Technology and other fields With the fierce competition from domestic and foreign competitors, typically with the type of companies specializing in providing outsourcing services like SMI, we can mention strong competitors as: LogiGear, Harvey Nash, Sunrise, FPT, DEK technology, Global Cybersoft, TMA solution, IVC Therefore, SMI always seeks and continuously improves the quality of services to meet the high demands from customers and constantly invents advanced technology products with practical benefits for maximum profits and increase SMI's competitive advantage in the market The labor market in the programming industry will need 350,000 resources by the end of 2021 while currently only about 200,000 resource can meet the needs of the job Lack of IT resources is always a big problem of the IT market, although the trend of wages and benefits is increasing sharply for this industry, but many experts predict that in 2020 Vietnam will still lack from 70,000 to 90,000 headcount for this industry II PROBLEM CONTEXT RECOGNIZED SYMTOM Every company had its own problems and this study was only focused on a Production department where the company invested a lot of money, time, effort with the purpose to bring advanced technology products to the technology market to get the high revenue to sustain the business for the company Production Department is a team with around 40 members that have been invested for past years by SMI Investment Fund with the purpose to develop technology products and deliver them to market to approach customers and call for investing to the product or sell completely to investor for funding In-depth interview 3: Interviewee: Ms Le Thi Phuong Title: HR Manager in Ho Chi Minh Age: 27 Working experience period: year Status: currently working for SMI company Duong Tran An An: Thank you for participating in this interview with me Could you introduce something about yourself? Le Thi Phuong: My name is Le Thi Phuong, I currently work for SMI company as a HR Manager Duong Tran An An: Please tell me your own opinion about the production team? Le Thi Phuong: Well, I think that currently we are lacking of KPI to manager the performance of Production team and staff are not satisfy with their performance appraisal Duong Tran An An: Could you share the reason why SMI is facing challenges with this Le Thi Phuong: Firstly, In my own opinion, SMI production team is a special department They are available for fill up the headcount of other department of outsourcing department in case the employees of this department resign SMI need to balance the resource of each project so member of SMI product team is a good choice Secondly, without KPI so their performance appraisal may be bias from the appraiser Duong Tran An An: In your point of view, what is the most important causes? Why you think so? Le Thi Phuong: I think that the biggest problem is the performance management for these potential developer I used to receive and handle the conflict from leader and team member about their performance Team products' target are frequently changed to match the nature of the work and ineffective performance appraisal is demotivated the employee to perform the best performance” Duong Tran An An: What are solutions that the company has taken to fix the problem? Le Thi Phuong: You know, we are in the progress of building KPI for Production team To manage their performance and evaluate their performance better Duong Tran An An: So, In your point of view, what should be better alternative solutions? Le Thi Phuong: A new Performance appraisal or 360 degree of feedback tool for us to keep in touch with all member and to connect all employees together In-depth interview 4: Interviewee: Mr Nguyen Minh Tam Title: Developer manager Age: 35 Working experience period: 10 years Status: currently working for SMI company Duong Tran An An: Nice to meet you sir! Could you introduce something about yourself? Nguyen Minh Tam: Hi! I’m Nguyen Minh Tam I manage Production team department I spent 10 years with SMI when I graduated from University until now Duong Tran An An: Thank you for giving a little time for this interview What is the problem that the team is facing to? Nguyen Minh Tam: We are facing many problems that Products/ services often have many errors when testing It takes time and get low test success rate However, I believe that with passion and effort, we can fix the problem soon Duong Tran An An: Could you please share more detail about test results of some tools, apps of SMI team Nguyen Minh Tam: According to reports that the test results from Customers is decreasing Most of them are neutral with our new product for testing automation, cleaning data, blockchain or personal healthcare system, etc Duong Tran An An: Could you share the reason why it does not get the high result? Nguyen Minh Tam: I think that there are two reasons Firstly, some of product is just so so without breaking point to the market, some has errors, failure product Some apps, tools need to be paid by subscriber so the client are not willing to pay since other alternative apps offer for free with similar purpose Secondly, The demands of customers are increasing, but the products have too many errors with the use is not optimal and products are note attracted to get more investment to maintain the product circle or sell to the market Since the Total Quality Management of our product is not good and it will impact the company and team performance” Duong Tran An An: What were solutions that you and directors had taken to solve this issue? Nguyen Minh Tam: We decide to conduct more training to our team since they are young and lack of experiences, they need spend more time for this This might help enhance team-work spirit among team member as well Duong Tran An An: Do you have more different suggestions? And what is the best ? Nguyen Minh Tam: I discussed with the Management that we should provide both external and internal training for them We will consider about the budget for the implementation In-depth interview 5: Interviewee: Mr Le Huu Minh Title: One of Leader of Production Team Age: 25 Working experience period: years Status: currently working for SMI company Duong Tran An An: Nice to meet you! Thank you to be here in this interview Could you introduce something about yourself? Le Huu Minh: Nice to meet you too! My name is Le Huu Minh I worked years for SMI as Leader of production team Duong Tran An An: I really want to know your judgement about the production team and what is the current problem that the team is facing to? Le Huu Minh: I suppose that will become one of the problem is The leader of our team is too busy to follow up to each member, to keep track the team performance” Due to lack of leadership skill so some of our team members have low performance by tracking the client requests is slow and behind schedule Duong Tran An An: So, among three factors you’ve just listed out, which is key factor affect low sales results the most? Le Huu Minh: It will be the lack of updating new technology skills since this is the first priority in technology industry If we lack of this skill, we will back to the scene and lost a lot client for this Duong Tran An An: How did you and your boss make a change to this situation? Le Huu Minh: We will focus to training to solve this problem In-depth interview 6: Interviewee: Mr Nguyen Duc Tuan Title: Internship member of SMI production team Age: 20 Working experience period: 03 months Status: currently working for SMI company Duong Tran An An: It is my great honor to meet you today for this interview Please start by talking something about yourself sir! Nguyen Duc Tuan: Nice to meet you! My name is Nguyen Duc Tuan I’ve worked for SMI for years since I was a intern for this department Now I am serving my company as Developer Duong Tran An An: Could you please share with me more information about the your current department Nguyen Duc Tuan: As we are in internship program so we don’t have much chance to work directly with our leader so less direct communication and we could not give feedback to our leader or receive the coaching from them” We are young and often want to express our voice, opinions and thoughts, sometimes they are not flexible in solving problems and refusing to follow to our suggestion because they may think we are non-experience” Duong Tran An An: In your own opinion, It is should be prioritized to solve? Nguyen Duc Tuan: It is just a temporary issue, so we just let everything happen In-depth interview 7: Interviewee: Mr Vu Tien Nhat Title: Member of SMI production team Age: 24 Working experience period: years Status: currently working for SMI company From in-deep interview with Vu Tien Nhat – a member a small team said that: Duong Tran An An: It is my great honor to meet you today for this interview Please start by talking something about yourself Vu Tien Nhat: Nice to meet you! My name is Vu Tien Nhat, I’ve worked for SMI for years since I was a intern for this department Now I am serving my company as Developer Duong Tran An An: Could you please share with me more information about the your current department Vu Tien Nhat: Our department has a lot Young employees have the talent but partly due to the characteristics of the IT work, so they are less communicate and tend to communicate through technology tools or apps so this also leads to poor communication that will also affect the quality of products Duong Tran An An: How are you solve this problem? Vu Tien Nhat: We try to make everything simple and easy for every since we only focus to the result So some of them refuse to the easy tasks, we will leave it to junior one and leave the harder task for them But it is a few time and we are still in need of them so we are current handle this issue by this way Duong Tran An An: In your own opinion, It is should be prioritized to solve? Vu Tien Nhat: We think we need to improve our teamwork 40 In-depth interview 8: Interviewee: Nguyen Ngoc Bich Title: Developer of SMI production team Age: 24 Working experience period: years Duong Tran An An: Could you please share with me more information about the your current department Nguyen Ngoc Bich: Our production team is a special team and use the invested fund of SMI to maintain our operation and due to no product invested, lack of KPI so we have no bonus for years Duong Tran An An: How are you solve this problem? Nguyen Ngoc Bich: I think we need more training to learn and build new product for the company, since we are young and lack of experience so the training is very importance for us to grow up and explore our skills In-depth interview 9: Interviewee: Nam Vũ Title: Leader of SMI production team Age: 24 Working experience period: years Status: currently working for SMI company Nam Vũ: Nice to meet you! My name is Nam Vũ I’ve worked for SMI for years since I was a intern for this department Now I am serving my company as Developer Duong Tran An An: Could you please share with me more information about the your current department Nam Vũ: In production team, we are mostly young and lack of experience Some members are really intelligent but they are quite ridiculous They feel demotivated by redoing the task since the tasks have not done properly Some refuse to rework and the others need to support them The rework will make low team performance and low motivation Duong Tran An An: How are you solve this problem? Nam Vũ: We try to make everything simple and easy for every since we only focus to the result So some of them refuse to tasks, we will leave it to junior one and leave the harder task for them In-depth interview 10: Interviewee: Nguyen Minh Thang Title: team member of SMI production team Age: 22 Working experience period: years Status: currently working for SMI company Nguyen Minh Thang: Nice to meet you! My name is Nguyen Minh Thang I’ve worked for SMI for years since I was a intern for this department Now I am serving my company as Developer Duong Tran An An: Could you please share with me more information about the your current department Nguyen Minh Thang: “Well, I think that currently production team is lacking of KPI to manager the performance of Production team and I am not satisfy with my performance appraisal And when we are completed the assignment, we evaluate the effect of the teammate’ input is higher than member’s input for both direct and indirect in-charged person Even the member is support for other task to fulfil the assignment” Duong Tran An An: How are you solve this problem? Nguyen Minh Thang: I think a KPI must be provide to us soon to make sure we have effective performance results In-depth interview 11: Interviewee: Nguyen Ngoc Tuan Title: team member of SMI production team Age: 22 Working experience period: years Status: currently working for SMI company Nguyen Ngoc Tuan: Nice to meet you! My name is Nguyen Ngoc Tuan I’ve worked for SMI for years since I was a intern for this department Now I am serving my company as Developer Duong Tran An An: Could you please share with me more information about the your current department Nguyen Ngoc Tuan: “Well, I think that currently SMI are lacking of KPI to manager the performance of Production team and I am not satisfy with my performance appraisal Some staff are not happy with their performance appraisal And they have no bonus so this is also one of the reason for their demotivate themselves SMI production team is a special department so we are currently lack of performance management from the leader” Duong Tran An An: How are you solve this problem? Nguyen Ngoc Tuan: I think we need a KPI and training to improve our performance When we have good performance, we will have good product and good salary In-depth interview 12: Interviewee: Do Minh Trong Title: team member of SMI production team Age: 22 Working experience period: years Status: currently working for SMI Company Do Minh Trong: Nice to meet you! My name is Do Minh Trong Duong Tran An An: Could you please share with me more information about the your current department Do Minh Trong: “Few years recently we have no launched product to the market, most of the product did not meet the customer demand and requirement, even we made many product but the competitor in this industry was increased rapidly so we are facing to low sale revenue, low salary increasing and led to low performance and have no bonus Duong Tran An An: How are you solve this problem? 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Minh Thang – team member, said that: “Well, I think that currently SMI are lacking of KPI to manager the performance of Production team and I am not satisfy with my performance appraisal And when... that currently we are lacking of KPI to manager the performance of Production team and staff are not satisfy with their performance appraisal Duong Tran An An: Could you share the reason why SMI. .. industry was increased rapidly so we are facing to low sale revenue, low salary increasing and led to low performance and have no bonus “ And Nam Vũ a Leader also said that: “Some members are really