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t to UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ng hi ep w n lo ad ju y th yi pl DINH THI THANH VAN n ua al n va ll fu oi m at nh LACK OF VERBAL COMMUNICATION IN AGILE DEVELOPMENT TEAM: A CASE OF DIGITAL CO., LTD z z k jm ht vb om l.c gm n a Lu MASTER OF BUSINESS ADMINISTRATION n va y te re th Ho Chi Minh City – Year 2020 t to ng UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business hi ep w n lo ad ju y th yi pl al n ua DINH THI THANH VAN n va ll fu oi m at nh LACK OF VERBAL COMMUNICATION IN AGILE DEVELOPMENT TEAM: A CASE OF DIGITAL CO., LTD z z k jm ht vb om l.c gm n a Lu MASTER OF BUSINESS ADMINISTRATION n va y te re SUPERVISOR: Dr NGUYEN THI MAI TRANG th Ho Chi Minh City – Year 2020 t to TABLE OF CONTENTS ng hi LIST OF FIGURES ep LIST OF TABLES w n Executive Summary lo ad Acknowledgements y th INTRODUCTION ju I yi pl II PROBLEM CONTEXT al Organizational Structure Team A Structure n ua n va fu ll 2.1 Description of the role in team A oi m at nh 2.2 Description of working method Agile 2.3 Apply Agile for team A 10 z z The case 10 ht vb k jm III PROBLEM IDENTIFICATION 18 Possible Problems 18 gm om l.c 1.1 Insufficient information sharing 18 a Lu 1.2 Work overload 20 n 1.3 Weak customer relationship management 22 n y te re Problem Validation 23 va th t to IV CAUSE VALIDATION 26 ng Possible Causes 26 hi ep 1.1 Lack of verbal communication 26 w n 1.2 Barriers with knowledge sharing 28 lo ad 1.3 Lack of team goal awareness 30 y th Cause Validation 32 ju yi pl V ALTERNATIVE SOLUTION 33 al Alternative Solutions 33 n ua va n 1.1 The first alternative solution: Using software Jira to manage the ll fu project 33 m oi 1.2 The second alternative solution: Offering training course to improve nh verbal skills 35 at Solution Validation 36 z z vb jm ht VI ORGANIZATION OF ACTIONS 37 k VII CONCLUSION 39 gm VIII SUPPORTING INFORMATION 40 l.c om REFERENCES 57 n a Lu n va y te re th t to LIST OF FIGURES ng hi Figure 1: Organizational Structure ep Figure Team A’s structure w n Figure Roles in team A lo ad Figure Agile methodology y th ju Figure Contract discussion between DSC and Vietstar yi pl Figure Preliminary Cause – and – Effect Tree al n ua Figure Main Cause – Effect Tree n va LIST OF TABLES fu ll Table Contract value came from Vietstar m oi Table Project size analysis in term of number of men and time length nh at Table Project size analysis by DSC’s view based on man-days z z Table Record of customer’s complaints from 2015 to 2019 k jm ht vb Table Time comparison between normal estimate and Vietstar’s requirement om l.c Table DSC revenue from 2015 to 2019 gm Table Contents of complaints n y te re Table 11 Training estimate cost va Table 10 Jira tool estimate cost n Table Action plan a Lu Table Comparison between Vietstar’s requirement to change and normal workload th t to Executive Summary ng hi IT software industry is now one of the most rapidly growing industries among south east ep ASIAN counties since the majority of IT software companies in China has been charging even higher than what the other developed counties [1] Especially since Donald Trump w n was elected as the 45th and current president of the United States of America, it has been lo ad getting harder politically for most of the American software companies to keep involving y th into Chinese market [2] Many has moved their software engineering resource pool from ju yi China to other south east countries such as Taiwan, Philippine and Vietnam [3] In addition pl to such tailwind for those countries, the strong political and economic supports in IT al n ua software industry by Vietnamese government toward foreign IT companies and investors va and the strong labor force growth in service sector have lead Vietnam to be one of the top n countries to export IT software services such as implementation and testing [4] This has fu ll led to more and more international and regional companies looking to Vietnam to build m oi technological resources This trend has been very popular in recent years, along with that, nh at the capacity and responsibility of the indigenous engineering team are increasingly z appreciated From that, the competition in term of human resource in the market according z ht vb to investment and development trends is getting higher Therefore, the question is how to k the development trend of the industry jm ensure the team has the capacity to compete and to meet not only customer needs but also gm DSC, a 100% Vietnamese IT software development company, provides its own logistic l.c om software products and many services to foreign companies mainly in Vietnam or Japan a Lu DSC wants to keep up with the development trend, improve the competitiveness with other n companies of the same scale by upgrading the operational structure of each programming employees in its organizations th difficulties related to human resource management and information sharing among y The application of this model to 20 employees in the company made DSC face certain te re by the Agile Alliance [5], in order to reach the flexible and effective level of programming n va team under the Agile model, which became widely known in 2016 though the publication t to This project will clarify why DSC is having problems with the radical model being applied ng more and more in the information technology market, in order to study feasible solutions hi ep to strengthen the programming team's power according to Agile model effectively w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th t to Acknowledgements ng hi Foremost, I would like to express my sincere gratitude to my supervisor Nguyen Thi Mai ep Trang for the continuous support of study and research, for her patience, motivation, enthusiasm, and immense knowledge Her guidance helped me in all the time of research w n and writing of this thesis I could not come this far without her for my study lo ad y th I am feeling oblige in taking the opportunity to sincerely thanks to my friend, Tuan Hoang ju (CEO of DSC) and special thanks to all the members at DSC for their generous attitude yi and friendly behavior while participating my surveys pl ua al At last but not the least, I am thankful to all my teachers and friends who have been always n helping and encouraging me though out the courses I have no valuable words to express va n my thanks, but my heart is still full of the favors received from every person I have met ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th t to I INTRODUCTION ng hi DSC is a Vietnamese logistic IT software application provider and IT software outsourcing ep company established in 2013, employs 20 full-time workers as of 2019 When professor Tuan, founder and CEO of DSC, worked for a university as an IT software professor, he w n developed a logistic enterprise software with his undergraduates as his assistants lo ad Fortunately, one of his assistants’ family was a management executive in logistic company y th in Vietnam, and the executive became his first client to operate the software to manage ju yi their business including stock management and shipment management That was the time pl he established his company with a name DSC, which stands for Digital System CO., LTD al n ua Working closely with the first client to understand their business operational issues that va could be solved with its software, DSC has improved their product one by one Prioritizing n what to implement next based on the limited number of their clients’ needs and fu ll requirements seemed promising at the early stages However, their product has been not m oi competitive enough to take major market share in Vietnam logistic industry yet In 2015, nh at they started offering software development and consulting outsourcing services mainly in z the local enterprises based on market analysis that more and more outsourcing projects z ht vb would move from China to Vietnam So far to 2019, the total number of projects reached k jm over 160 from countries Now in their organization, there are separated teams gm DSC’s slogan is “DSC’s success comes after client’s success.” They are meant to be clientoriented organization when it comes to software development and operations Based on l.c om their belief, they value their people because software is fully built up by people and used a Lu mostly by people With CEO’s strong experiences in education at undergraduate level, n DSC trains undergraduates and freshers both mindsets as software engineers and practical y costs at the same time te re way, DSC tries to create family-like bonds among its employees as well as reducing labor n va coding and testing skills instead of recruiting experienced engineers and testers In that th t to With the team A’s size of four members, DSC has followed Agile methodology for the full ng life cycle development in the logistic application development project and has developed hi ep its logistic application without critical issues related to its quality and agility As the application becomes more complex and covering more logistic operations, the team w n A, among four teams of DSC, faced more tickets failing the acceptance test from its client’s lo ad product owner In November 2019, DSC lost one existing contract with their client due to y th the failure to meet client’s expectations CEO said, approximately one third of their total ju yi annual sales in 2019 was lost because of the cancellation of the contract pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th 47 t to Dinh Thi Thanh Van: Could you share with me, in your opinion, what reason makes DSC ng lose the contract? hi ep Tran Huu Hoang: In this case, we misunderstood each other I was the scrum master who was in charge of communicating with customer and members I transferred the w n requirements from customers to members and vice versa lo ad y th During the user acceptance test phase, VietStar asked to change the spec on payment logic ju To be exact, the original spec for the payment status was that once the end user clicks the yi order button, the payment status is updated to be “received.” As you might notice, the pl ua al original spec contains some risks that even if the actual payment would not be made, the n status will still be the same as “received.” Business owner realized this potential issue while n va conducting the acceptance test The status on the view was very important It was to add ll fu one additional payment status on a view for VietStar’s accountant to calculate their cash oi m flow at the end of every working day I assumed that the team members knew that the spec nh change was critical for the client, so I created new tickets briefly to inform their new tasks At at stand-up meeting, I did orally mention in detail what we needed to implement the spec change z within the same sprint Unfortunately, members did not change the code related to payment status z ht vb They missed some details I did not write down but did require in the meeting It caused Vietstar to jm check up the bill on that day manually until the spec change was reflected to the software It k caused VietStar to check up the bill on that day manually until the spec change was gm reflected to the software When the acceptance test on the same sprint came, the client and require to fix that code within one day om l.c found out that the spec change was not fixed yet After that, they sent the email to complain a Lu n With this case, I can see there are several reasons leading to lose the contract Firstly, we th any difficulty We, members, and I didn’t make much questions to confirm how good the y focused on what members did yesterday, what they would today and share if they have te re ten minutes and also frequency reduced from daily to once per days Basically, we n va believed everyone understand well what to so our daily meeting got shorter, less than 48 t to task was done Members received tasks and focused on their programming; they did not ng ask much hi ep Secondly, this project was big, so I need three more members from team B to support team A with the deadline It caused lack of sharing between the team members w n lo Thirdly, we have designer, developer and tester in a team With different backgrounds, they ad y th have different levels of knowledge; and the ability to understand every task are also ju different The meetings with customer become more like discussion of how everyone yi wanted the function to work instead of confirming the customers ’requirement and fix the pl ua al task The meetings lasted longer than customer expected so they reduced the frequency n from daily meeting to weekly meeting to get involved into the deployment va n Moreover, VietStar limited the time very strictly When the errors occurred, the team did fu ll not have enough time for meeting fixing and finishing the task perfectly in the way they m oi wanted With the other projects, without big misunderstanding like this, we have stable at nh workload z Dinh Thi Thanh Van: In your opinion, what is the most important cause leads to losing z ht vb the contract? Why you think so? gm problem so we should fix the communication priorities k jm Tran Huu Hoang: It turned out we did not understand well about the goal Here began the om l.c Dinh Thi Thanh Van: What the solution that DSC took to improve the situation? Tran Huu Hoang: We restarted the cycle of Agile methodology, getting requirements, a Lu redesigning, and programming At that time task assignment was too inappropriate for our n problem? th Could you share any alternative solution that you think would be appropriate to solve the y Dinh Thi Thanh Van: What are your ideas about the capability of the above solutions? te re finish on time n va developer but VietStar left us no choice with only one day to fix Finally, we could not 49 t to Tran Huu Hoang: We rarely get this kind of workload with other customers We used to ng have some misunderstanding but with small projects, we need just short time within one hi ep day to fix So, in advance for the next big project and strict client not to have similar problem, we should make sure every task is clearly transferred and the whole team have w the same understanding about tasks to deploy in the right way at the first stage Way to n lo ad that is to get everyone share exactly what they and how they think in details y th Dinh Thi Thanh Van: Thank you very much for your time and sharing ju yi Tran Huu Hoang: You are welcome! pl n ua al va The second group includes interview 2A and 2B from members of team A In these in- n depth interviews, writer wants to understand how the problem is and what causes that ll oi m at z Interviewer: Dinh Thi Thanh Van nh In-depth Interview 2A fu important problem z Title: Team A’s member at DSC k jm ht vb Interviewee: Huynh Cong Thang om l.c Working experience: years gm Age: 25 n questions about DSC Could you please introduce yourself? a Lu Dinh Thi Thanh Van: Good afternoon, my name is Van Today I would like to have some y te re DSC I have been working here for three years n va Huynh Cong Thang: Hello Ms Van, I am Thang Currently I am a senior in team A at th Dinh Thi Thanh Van: Could you share with me how you work in your team? 50 t to Huynh Cong Thang: There are four members in the team under Mr Hoang We are in ng charge of developing DSC’s product named DLEX It is a platform for logistic users hi ep including the end users who have demand for shipping, the drivers and the business owner We just failed one big project called V.Epress with Vietstar The project was about w upgrading their system along with their specifications n lo ad Dinh Thi Thanh Van: Do you think DSC has good quality for DLEX product? y th ju Huynh Cong Thang: Yes, I think so We have been using DLEX for many projects for yi more than years since the market increased, I mean shipping demand increased pl n potential clients about us ua al Customers are satisfied with what we have deployed Some of them recommend other va n Dinh Thi Thanh Van: Could you share with me, in your opinion, what reason makes DSC ll fu lose the contract? m oi Huynh Cong Thang: Vietstar offered very short time to change the method, only 10 days nh at for 39 funtions I think they did not know about how many function, they simply thought z it was just changing the math But actually, their change leaded to 39 functions changed z ht vb Before error occurred, we even hardy communicate often since every one is busy and just k jm wanted to focus to get task done We were under very high pressure gm And when error occurred, it was even more tight schedule We could not completely fix the issue that the client pointed out before the due date We had to redesign most of the l.c om payment logics and to update related tables which required 36 man-day They just gave us n the next week a Lu one day to finish because the commercial release date of the product was approaching on y te re about time line more nicely n va We did not have similar difficult with previous projects The other clients agreed to discuss the contract? Why you think so? th Dinh Thi Thanh Van: In your opinion, what is the most important cause leads to losing 51 t to Huynh Cong Thang: Well at first, we created the function not like what they wanted it to ng be Then it caused them the wrong calculation with their cash They complained and we hi ep tried to fix but we failed So, the main cause was because we could not meet the requirements We thought it was not necessary to note at the statement changed since in w our point of view they were the same “We” mean I and the other developers Our scrum n lo ad master said later that he disagreed with what I and other developers did But unfortunately, ju y th we did not share at the meeting what we thought and what we disagreed with yi Dinh Thi Thanh Van: What the solution that DSC took to improve the situation? pl ua al Huynh Cong Thang: As I shared with you, we tried to fix it, but we could not make it n with the very short time for a big project va n Dinh Thi Thanh Van: Why is it a big project to you guys? fu ll Huynh Cong Thang: Normally, in term of contract value, if the team of four members m oi have four months to deploy the contract of 100 million, it is small But V.Express costs nh at 500 million for months so it is a high price and high pressure to us z z Dinh Thi Thanh Van: What are your ideas about the capability of the above solutions? vb k jm problem? ht Could you share any alternative solution that you think would be appropriate to solve the gm Huynh Cong Thang: I just think of the new method to make sure we don’t miss any to lose such a big contract because of lack of communication n a Lu Dinh Thi Thanh Van: Thank you very much for your sharing om l.c information in the future We all have experience with programming, so it is so unfortunate n va Huynh Cong Thang: You are welcome y te re th 52 t to In-depth Interview 2B ng hi Interviewer: Dinh Thi Thanh Van ep Interviewee: Nguyen Quang Huy w n Title: Team A’s member at DSC lo ad Age: 24 y th ju Working experience: years yi pl Dinh Thi Thanh Van: Good afternoon, my name is Van Today I would like to have some n ua al questions about DSC Could you please introduce about yourself? ll fu year-experience at DSC already n va Nguyen Quang Huy: Hello Ms Van I am Huy I am a developer in team A at DSC I get at nh team? oi m Dinh Thi Thanh Van: Could you share with me the current work performance of your z Nguyen Quang Huy: This year we have projects, are small and one is very big to me z jm ht VietstarExpress vb But we finally got no paid from the big project Its name is V.Express, owned by k Dinh Thi Thanh Van: Do you think DSC has good quality for DLEX product? gm om Also, with V.Express, we developed from DLEX l.c Nguyen Quang Huy: Yes, we deployed many versions with DLEX base successfully a Lu Dinh Thi Thanh Van: Could you share with me, in your opinion, what reason makes DSC n did not mention the spec change during the standup meeting, so the payment feature was th We need to change the statement from “received” to be “on hold” But the scrum master y not tell us more details about what customer wanted to change It was the payment feature te re Nguyen Quang Huy: We failed to meet customer’s requirement The scrum master did n va lose the contract? 53 t to not updated or changed Actually, I was concerning about that statement but I could not ng get it thoroughly I was afraid if I started to talk about something not clear, it will disturb hi ep the others so I just kept quiet Besides, scum master looked very difficult in the meeting I felt difficult to share with him w n about my thought The schedule was also rough, he looked like he could get angry lo ad immediately if I made any stupid question So, I just quietly took the task and worked on ju y th it yi Customer found out and they complained They gave us one day to fix but it was too short pl ua al for that kind of thing because to change it we need to start again with the process coding I n took a lot of time, like more than days with at least developers We cannot use the new n va members since they did not know what was going on, so basically, we were on our own fu ll Dinh Thi Thanh Van: In your opinion, what is the most important cause leads to losing oi m the contract? Why you think so? nh at Nguyen Quang Huy: I want to exchange more about concerning and knowledge with the z lead So, I really hope that he will be more friendly in the meeting At least I will not feel z ht vb stress to capture the whole user’s story to adapt the method for deploying Moreover, I k to be done jm think the more we talk, the more we can find out the same understanding of what needed gm Dinh Thi Thanh Van: What the solution that DSC took to improve the situation? om l.c Nguyen Quang Huy: Due to the situation, we created the urgent meeting with the whole n th problem? y Could you share any alternative solution that you think would be appropriate to solve the te re Dinh Thi Thanh Van: What are your ideas about the capability of the above solutions? n va denied We tried to fix it but not successfully a Lu team and customer to discuss for the next steps We asked for more time, but customer 54 t to Nguyen Quang Huy: I want to have more friendly environment to communicate My co- ng workers are friendly but the lead And also when we needed the support from another team, hi ep we hardly communicate Each team sit in separated corner so when I have to cooperate with them, I feel distance to share the idea w n Dinh Thi Thanh Van: Thank you very much for your time and sharing lo ad ju y th Nguyen Quang Huy: You are welcome yi pl The last in-depth interview is to talk with DSC’s customer to confirm the problem n ua al In-depth Interview 3A ll fu oi m Interviewee: Dang Huu Thang n va Interviewer: Dinh Thi Thanh Van at z Age: 35 nh Title: V.Express Project Manager from Vietstar z jm ht vb Working experience: years Dinh Thi Thanh Van: Good afternoon I am Van Thank you very much for agreeing to k gm talk about DSC today Could you please introduce about yourself? om l.c Dang Huu Thang: Nice to meet you Ms Van I am Thang, project manager of V.Express project from Vietstar company Vietstar provides multimedia online services such as a Lu checking bill of lading, delivery booking online, looking-up postcards and parcels online, n business y te re with DSC to upgrade the web and mobile app named V.Express as a main tool for our n va allowing customers to accessing to the orders on Web and Mobile We used to cooperated th Dinh Thi Thanh Van: How you think about DLEX product made by DSC? 55 t to Dang Huu Thang: I think they have a competitive product in the market That was one of ng the reasons we have worked with them for around years They have proven experiences hi ep of logistic industry, and they are quite popular with their own product named DLEX Those make their advantage Unfortunately, in the last project with DSC, we had to cancel the w second stage of contract n lo ad Dinh Thi Thanh Van: It sounds like you see them a competitive partner Then I wonder y th why you stopped the contract with DSC? Could you share with me the reasons if possible? ju yi Dang Huu Thang: We change the process to calculate the income and they could not pl ua al follow It caused us a huge damage since we got more than 300.000 orders per day We n could not track the money properly and we gave them one day to fix but they could not n va So, we had to come back to old version to keep business running normally We had been ll fu waiting for two months and we did not want to increase the time for new version, so we oi m cut the contract Until we find out the way to upgrade without any affection to current at nh system, we would consider again for the new cooperation with DSC z Dinh Thi Thanh Van: Thank you very much for your time and sharing Mr Thang z k jm ht vb Dang Huu Thang: You are welcome om l.c gm n a Lu n va y te re th 56 t to QUALITATIVE RESEARCH FINDINGS ng Interviewer: Dinh Thi Thanh Van hi ep Interviewees: people from different groups: Group 1: (1A) CEO: Mr Hoang Le Anh Tuan w n (1B) Manager #1: Mr Tran Huu Hoang lo Group 2: (2A) Team A’s member: Mr Huynh Cong Thang ad y th (2B) Team A’s member: Mr Nguyen Cong Huy ju Group 3: (3A) VietStar Project Manager (DSC’s customer): Mr Dang Huu Thang yi Data collected from interview: Shoter daily meeting: lack of sharing between members, reducing the frequency of meeting with customer; and tight schedule n va ll fu Huge task with short time oi m Reason why DSC lost the contract Insufficient information sharing Workoverload Weak relationship with customer n Findings 2A 1B ua 1A al Question pl # Difficult leader and not friendly environment k jm ht Requirements are not met: function and deadline Created meeting and tried to fix the problem - Using another more appropriate way to communicate -New method to communicate More friendly environment to share ideas Created meeting and tried to fix the problem n n va y te re -Offer training course Created meeting and tried to fix the problem a Lu -Using communication app for the team Created meeting and tried to fix the problem om Reshcedule and fix the issue l.c gm Other solutions Lack of sharing idea 3A vb Not clear communication z Lack of information z The key factor that leads to contract loss The reasons customer stopped the contract The solution that company used at nh 2B Lack of information Taking the task without confirming requirement Short time Not enough conversation in a team th 57 t to References ng World no longer sees China as a cheap outsourcing destination: Survey [Internet] hi ep CNBC LLC; 2017 Jan 31 [cited 2020 Feb 4] Available from: https://www.cnbc.com/2017/01/31/china-no-longer-considered-a-low-cost-sourcing- w destination-survey.html n lo ad Knight W Trump’s latest Salvo Against China Targets AI Firms [Internet] New y th York: WIRED; 2019 Sep 10 [cited 2020 Feb 4] Available from: ju https://www.wired.com/story/trumps-salvo-against-china-targets-ai-firms/ yi pl Salary Survey 2019: Greater China & South East ASIA [Internet] ROBERT ua al WALTERS; [cited 2020 Feb 4] Available from: n https://www.robertwalters.com/content/dam/robert-walters/global/files/salary- va n survey/salary-survey-2019-south-east-asia-greater-china.pdf ll fu Doing Business in Vietnam: A reference guide for entering the Viet Nam market at nh [cited 2020 Feb 4] Available from: oi m [Internet] PwC (Vietnam) Ltd., Viet Nam Chamber of Commerce and Industry; 2019 z https://www.pwc.com/vn/en/publications/2019/pwc-vietnam-dbg-2019.pdf z Agile Resources [Internet] Agile Alliance, Tennessee USA; May 2018[updated 2020, vb jm ht cited 2020 Feb 5] Available from: https://www.agilealliance.org/ Russo I, Confente I, Gligor DM, Autry CW To be or not to be (loyal): Is there a k l.c 2016;69(2):888–896 gm recipe for customer loyalty in the B2B context? 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