(Tiểu luận) topic research on strategy map and balanced scorecard of fast software company

NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM ASSIGNMENT MANAGERIAL ACCOUNTING Topic: RESEARCH ON STRATEGY MAP AND BALANCED SCORECARD OF FAST SOFTWARE COMPANY Student’s name: Le Thuy Trang, Pham Ky Duyen Class: Auditing AEP 61B Supervisor: Asso Prof Le Kim Ngoc Ha Noi , October 2022 Managerial Accounting TABLE OF CONTENTS LIST OF ABBREVIATIONS PART COMPANY INTRODUCTION Overview of company 1.1 Company general information 1.2 Business activities 1.3 Products 1.4 Mission and Core values Strategy and analysis of FAST’s business strategy 2.1 Fast’s strategy 2.2 Current situation of implementing FAST's business strategy 2.3 Overview of FAST's operational objectives 2.4 FAST's strategic implementation plan PART BUILDING THE COMPANY'S STRATEGY MAP AND BALANCED SCORECARD 2.1 The purpose of building a balanced scorecard to serve the implementation of the company's strategy 2.2 Building a balanced scorecard to serve the implementation of the company’s strategy 2.2.1 Building a strategy map 2.2.2 Building a balanced scorecard PART 3: CONCLUSION 11 REFERENCES 11 Managerial Accounting LIST OF ABBREVIATIONS Abbreviation Explanation BSC Balanced Scorecard FAST Fast Software Company R&D Research and Development Managerial Accounting PART COMPANY INTRODUCTION Overview of company 1.1 Company general information • Company name: Cơng ty Cổ phần Phần mềm Quản lý Doanh nghiệp • English name: Fast Software Company • Trade name: FAST • Founded year: 11-06-1997 • Capital: 20,000,000,000 (Twenty billion dong) • Business Registration Certificate: No 0100727825 issued by Department of Planning and Investment in Hanoi on18th June 1997, last edited on 30th May 2019 • Tax code: 0100727825 Represented by: Mr Phan Quốc Khánh • Website: www.fast.com.vn • Email: info@fast.com.vn • Offices: Ha Noi, Ho Chi Minh, Da Nang 1.2 Business activities Develop, consult and implement applications of information systems supporting in business operation and management based on information technology 1.3 Products • Solutions for large and medium-sized businesses: Fast Business Online (ERP), Fast DMS Online, Fast CRM Online, Fast HRM Online • Accounting software for small and medium-sized businesses: Fast Accounting, Fast Accounting Online, Fast Accounting Online for Bookkeepers • Solution for electronic invoice: Fast e-Invoice • Accounting software for training: Fast Accounting Online for Education • Customization based on specific requirements 1.4 Mission and Core values Missions • Developing and consulting software applications, helping businesses increase productivity, effective management • Develop a professional career, promote the potential of each individual, and create a happy life Contribute to the company, society, contribute to the country Core values • Hard-working, Focused and Persistently • Learning, Innovation & Creativity • Teamwork, Together & Sharing Managerial Accounting Vision • FAST is a company with sustainable development, a trusted supplier of management solutions based on IT platform, responsible to the community, contributing to the country, making all efforts to develop employees’ professional career and lead a happy life Strategy and analysis of FAST’s business strategy 2.1 Fast’s strategy Operational and business perspective: "Long-term, reliable partner" Use a focused strategy to compete Concretize the focus strategy with "Suitable solution – Attentive service" 2.2 Current situation of implementing FAST's business strategy To implement the motto "Long-term, reliable partner", FAST conducts the following activities: • As a long-term partner of customers: Focus on exploiting the customer market group as SMEs Producing and providing "suitable" product lines, meeting the development and expansion requirements of customers, accompanied by "thoughtful" services for customers At the same time, focus on activities to gain a deep understanding of the needs of customers in the selected target market segment • Be a long-term partner of employees: Focus on the task of raising (%) "Employee satisfaction" in terms of income; on welfare; on leadership; on the culture of behavior; on promotion opportunities • As a long-term partner of shareholders, suppliers: FAST strives to act for stable and sustainable development Committed to accompanying development with shareholders, with suppliers • Being a long-term partner of the community, the country, society: Building an organization that is responsible for the community, society and the country • Executive strategy: FAST chooses the operating strategy as targeted management (MBO) 2.3 Overview of FAST's operational objectives • Financial objectives Business growth: Up 15% - 17%/year Collection: Increase 11% - 12%/year Contract balance: 80% Profit: up 16%/year • Customer objectives Improve the quality of "Suitable solutions and products" Managerial Accounting Improve the quality of "Attentive Service", holding existing customers (90% of existing customers continue to use Service Products) • Internal process objectives Building accounting and financial software specific to the industry Immediately update the amendments and supplements to the policy regime according to the new state regulations for existing software Building a good working environment, actively implementing social activity programs, and building a "thoughtful" culture • Objectives of learning and development 20% of employees are company specialists out of the total number of employees 70% of employees are upgraded Motivate employees to take initiatives and improvements (Kizen's FAST) 2.4 FAST's strategic implementation plan • In the field of R&D research and development The main technology platform of the product is the Microsoft platform, which runs in a Microsoft Windows environment Develop suitable products and solutions according to the scale and type of business (Business Templates) Build more Templates Research and develop software on advanced technologies (Web-Base), meeting the needs of customers in the future • In sales Focus on reaching and finding customers in target customer segments Introduction, the difference of FAST: The right solution – Considerate, dedicated service Advising customers to choose the "Right Solution" according to the scale and type of business; Choose the right solution between the available product and modify it as required • In the field of applied consulting Consulting customers to use high-quality software Improve the customer satisfaction rate of over 80% for the quality of application consulting services to 90% • In the field of customer support and care Special customers, large customers, the company's board of directors will take the time to visit and take care of them The branch board must visit and take care of at least strategic customers Improve the customer satisfaction rate of over 80% for the quality of warranty and maintenance services to 90% • In the field of human resources Document continues below Discover more from: Managerial Accounting Đại học Kinh tế… 103 documents Go to course Premium Midterm 01 - Chapter 23 32 20 1-5 Managerial Accounting 100% (4) Premium Case-Analysis-speak - Grade: Managerial Accounting 100% (3) Premium Ch-7-test-bank compress Managerial Accounting 100% (2) Slide of Chapter Lecture notes Managerial Accounting 100% (2) Premium Mock Exam Mgt Acct 2022 - Mock Test -… Managerial Accounting Managerial Accounting 100% (1) Premium Bài tập giá trị thời gian tiền Strengthen the level of authorization for subordinates to decide on solutions suitable to the actual situation Managerial 100% (1) Each branch of the department must improve the ratio of experts to employees to meet Accounting the development needs of the company and the quality of customer service • In the field of executive management The strategy of running the work is "Management by goals" Step by step, apply a Balanced Scorecard • Building a culture of "attentive and dedicated service" Build the company into a place for employees to trust and have the desire to stick around for a long time Build a culture of "understanding" each other, "caring" for each other PART BUILDING THE COMPANY'S STRATEGY MAP AND BALANCED SCORECARD 2.1 The purpose of building a balanced scorecard to serve the implementation of the company's strategy - Evaluate the performance of the company in a more comprehensive way - Connect company’s strategy with employee activities - Integrate strategic objectives with resource allocation processes 2.2 Building a balanced scorecard to serve the implementation of the company’s strategy On the basis of considering the perspective, mission, core values, strategies and strategic goals of FAST company classified according to aspects of BSC: Finance, Customer, Internal, Learning and Growth, we proceed to build a BSC for FAST company with the following contents: 2.2.1 Building a strategy map a Set of strategic goals On the basis of FAST's strategic goals, we gather according to perspectives of BSC as follows: Table 2.2.1a Strategic goals of FAST Perspectives Targets Increase profit Finance Increase revenue Increase employee income Increase contract Product and service quality Managerial Accounting Customer Market Brand Operating process Internal Customer management Improvement process Social Human Learning and Growth Information Organization b Building a balanced scorecard FAST’s strategy map illustrating cause-and-effect relationship between strategic goals and specific goals of each aspect: Finance, Customers, Internal Business Processes, Learning and Growth Combining theory and references from the company, we have built a system of metrics illustrated in the following table Table 2.2.1b Strategy map of FAST Strategy - Mission - Vision – Core values Develop and improve the value of the company Finance Customer Increase profit Suitable products and solutions Increase revenue Dedicated service Operating process Increase customers Customer management Increase employee income Improve quality, long-term partner Improvement process Increase contract Develop customers Enhance brand Social process Managerial Accounting Internal Learning and Growth Producing suitable products and solutions Reduce time to provide products and services Update products quickly and timely Enhancing leadership skills Strategic customer insights Satisfied internal customers Continue improve and complete the organization Legal social activities Improve core competencies for employees Investment in infrastructure and technology Understanding and caring for internal customers Software development for management 2.2.2 Building a balanced scorecard Perspectives Objective Measures Targets Initiatives Increase profit % Increase profit 20% Cost control Increase revenue % Increase in revenue 30% % of employee income increase 10% % Increase in contract 15% % of satisfied customers 5% % of satisfied customers after-sales 5% program Finance Increase employee income Increase contract Suitable products and solutions Cost control program Customer satisfaction survey Customer Dedicated service Managerial Accounting Increase customers The number of strategic customers increased 50% Give gifts to customers Update Improve quality, longterm partner % of customers re-signing the contract 90% government policy for customers Develop customers Number of old customers recommending Enhance brand Number of seminars, articles on websites, Perspectives 10% products to new customers customers 30 Brand accounting journals, accounting forums, promotion economic program Objective Measures Producing suitable Number of products and products for solutions specific Operating process Give gifts to Targets Initiatives Produce specialized software specialties Reduce time to Average provide products contract and services implementation Strategic customer % Sales of Emphasize CRM insights customers with system, upgrade E- Internal Review processes 5% time Customer management full info on CRM and survey Teamwork 50% software and update info documents Continue improve Ratio of applied Launch a Managerial Accounting Improvement and complete the ideas/total process organization employees Satisfied internal customers % of satisfied Legal social Number of Social process activities employees participating 25% campaign Customer 95% satisfaction survey Increase social 5% activities social activities Enhancing leadership skills % of managers sent to study Training program 20% executive Learning and Growth to improve skills for leaders management Human Improve core competencies for employees % of trained Open professional senior professionals/ skills training 3% classes 02 information number of employees Investment in infrastructure, technology Number of newly invested Upgrade databases Information Software development for management technology system Number of newly produced Upgrade E5% Teamwork functions Organization Understanding and caring for internal customers Number of Internal exchanges thoughtfulness between director and employee 5% Managerial Accounting PART 3: CONCLUSION 3.1 Summarize the important contents of the company's Balanced Scorecard The Balanced Scorecard provides an effective structure for creating and conveying company strategy A Strategy Map depicts the organization's strategy and assists managers in visualizing, identifying, and comprehending cause-and-effect links between various strategic objectives The Strategy Map guarantees that performance outcomes and key performance drivers are recognized to generate a comprehensive picture of the strategy The Balanced Scorecard method assists organizations in developing key performance indicators (KPIs) for their various strategic goals This ensures that businesses are measuring what is important The BSC approach provides high-quality management information as well as data-driven insight to help decision-makers Companies may use the Balanced Scorecard to better match their organizational structure with strategic goals Businesses must guarantee that all business units and support operations are working toward the same goals to successfully execute any strategy This may be accomplished by cascading the BSC into those business areas and connecting strategy and operations 3.2 Analysis of challenges in Balanced Scorecard design and implementation Poorly Defined Metrics Metrics must be relevant and easy to understand They should be represented by clearly understandable visual cues Furthermore, measurements must be gathered at the optimal frequency for decision making and formulated in such a manner that the measurement may be used uniformly across the company, even if their performance objectives differ (and they should) People who wish to evade accountability for results may criticize a system with poor or inconsistently specified measurements Lack of Efficient Data Collection and Reporting One of the key reasons that firms overemphasize financial metrics at the cost of other critical operating factors is that tools for collecting and reporting financial indicators already exist Companies that plan of time to determine the critical few metrics and invest resources to automate data collection and subsequent reporting tend to get favorable results Unfortunately, most firms will not gather metrics data if it takes too much time and effort That is why it is critical to select key performance indicators so that you can be certain that your investment in metrics is focused on the information that will be most useful in enhancing organizational performance Managerial Accounting REFERENCES Company website: www.fast.com.vn (creately.com) https://www.wikipedia.org/ Research of previous intakes Management Control Systems 11th edition by Robert N.Anthony – Vijay Govindarajan Managerial Accounting 9th edition by Brewer Garrison Noreen