reviewing corporate diagnostic models and applying for finance amp planning department vinaconex

VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Dao Quynh Anh REVIEWING CORPORATE DIAGNOSTIC MODELS AND APPLYING FOR FINANCE & PLANNING DEPARTMENT- VINACONEX MASTER OF BUSINESS ADMINISTRATION THESIS Hanoi – 2011 VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Dao Quynh Anh REVIEWING CORPORATE DIAGNOSTIC MODELS AND APPLYING FOR FINANCE & PLANNING DEPARTMENT- VINACONEX Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr Vu Anh Dung Hanoi – 2011 TABLE OF CONTENT ACKNOWLEDGEMENT i ABSTRACT ii LIST OF FIGURES xii LIST OF ABBREVIATIONS xiii INTRODUCTION 1 Necessity of the thesis Research aim and objectives Research questions Research methodology Scope of the research Significance of the research Thesis structure CHAPTER 1: OVERVIEW OF CORPORATE DIAGNOSTIC AND MODELS 1.1 Corporate diagnostic overview 1.1.1 Corporate diagnostic definition 1.1.2 Why a corporate diagnostic is so important 1.2 Corporate diagnostic process 1.3 Corporate diagnostic models 1.3.1 Theoretical models 10 1.3.2 Models of consulting firms 19 1.4 Chapter Review 24 CHAPTER 2: ANALYSIS ON F&P DEPARTMENT’S OPERATION OF VINACONEX 27 2.1 Overview of F&P Department-Vinaconex 27 2.1.1 Overview of Vinaconex 27 2.1.2 Overall of Vinaconex F&P 30 2.2 Analysis on F&P’s operations 32 x 2.2.1 Strategy 32 2.2.2 Organization structure 33 2.2.3 Process 35 2.2.4 Human Resources 64 2.3 Chapter review 72 CHAPTER 3: RECOMMENDATIONS TO IMPROVE F&P’S OPERATIONS 75 3.1 Recommendations of strategy, organization structure, human resources and process 75 3.1.1 Strategy 75 3.1.2 Organization structure 75 3.1.3 Process 76 3.1.4 Human resources 82 3.2 Action Plan 82 3.2.1 Strategy 83 3.2.2 Organization structure 84 3.2.3 Process 84 3.2.4 Human resources 88 3.3 Top 15 Activity Prioritisation 91 3.4 Chapter review 92 CONCLUSION 94 APPENDIX 97 REFERENCES 99 xi LIST OF FIGURES Figure 1.1: Corporate Diagnostic Process Figure 1.2: Star model of Jay Galbraith 10 Figure 1.3: Organizational performance model of David P Hanna 15 Figure 1.4: Diamond model of Leavitt 16 Figure 1.5: Organization intelligence model of Falletta 17 Figure 1.6: 7S model of McKinsey 20 Figure 1.7: Governance framework of KPMG 22 Figure 2.1: Vinaconex’s output from 2005 to 2010 30 Figure 2.2: Vinaconex’s organization chart 31 Figure 2.3: F&P’s organization chart 35 Figure 2.4: Lending procedure 38 Figure 2.5: Prepare principal &interest payment request and report procedure 39 Figure 2.6: Cash payment via Bank 41 Figure 2.7: Investment procedures 43 Figure 2.8: Divestment procedure 44 Figure 2.9: Capital Contribution and Financial Ratios Report 45 Figure 2.10: Project management process 47 Figure 2.11: Fund sourcing process 48 Figure 2.12: HO Financial statement preparation process 50 Figure 2.13: Financial Report Consolidation process 51 Figure 2.14: Reporting and planning process 53 Figure 2.15: F&P’s staff demographic 67 Figure 2.16: F&P’s staff strength 68 Figure 2.17: F&P’s staff weaknesses 69 Figure 2.18: Positive comment on working conditions 70 Figure 2.19: Negative comment on working conditions 71 xii LIST OF ABBREVIATIONS AR/AP: Account receivable/ Account payable BOM: Board of Management CEO: Chief executive officer ERP: Enterprise resource planning F&P: Finance and Planning Department FS: Financial report GD: General director HO: Head office HOD: Head of department 10 IFRS: International Financial Reporting Standard 11 KPI: Key Performance Indicator 12 L&B: Lending and borrowing 13 PMO: Project management office 14 PMU: Project management unit 15 VAS: Vietnamese Accounting Standards xiii INTRODUCTION Necessity of the thesis Vinaconex is one of Vietnam’s leading organizations, in terms of size, brand and quality As the world’s global marketplace emerges from the recent financial crises, it will be a key task of Vinaconex to continue its focused expansion, concentrate on profitable business ventures and core-business strategy, and manage its internal and external capital appropriately Vinaconex governance structure was developed since privatisation of the corporation late 2006 The structure and culture, as a result, inherited several characteristics of the old regime On one hand, this inheritance could be advantageous to maintain stable structure to support growth On the other hand, Vinaconex management should always beware of the characteristics which are no longer suitable in the new business context and need to be replaced gradually to allow stronger development F&P’s function is planning, budgeting and managing financial issues of Vinaconex in order to support the decision making procedure Therefore, a key success factor will be a competent, value-added and proactive F&P function to support Vinaconex’s business objectives It is noted that F&P department has been changing rapidly in performance and cooperation with both other departments at HO and subsidiaries for the last two years The feedback from service users which F&P provides is relatively good However, there is several areas to improve in F&P functions to achieve both F&P objectives and the Board expectations Therefore, the diagnostic assessment to identify F&P’s areas for operation improvement is essential By diagnostic reviewing, the thesis will provide recommendations and action plans for increasing F&P effectiveness The diagnostic models reviewing is not only useful for F&P application but also can be applied for a number of other enterprises While Vietnam has joined WTO and the competitiveness of domestic and foreign enterprises is increasing, it is essential that Vietnamese enterprises have to raise their performance to boost competitiveness However, it is the fact that many Vietnamese companies are operating inefficiently due to their old inappropriate structure; process and weak capacity or the business are developing too fast which leads to uncontrol of BOM In addition, Vietnamese firms have little experience in diagnostic assessment; this thesis would be a good practice for other businesses to apply for improving their performance Research aim and objectives The objective of this thesis is reviewing corporate diagnostic models and chooses one model which is appropriate for applying into F&P, Vinaconex By reviewing its operation, this thesis will show F&P’s gaps and give recommendation to improve F&P’s effectiveness To achieve this goal, the thesis will (1) research diagnostic process as well as reviewing diagnostic models in both theoretical and practical side and choose one suitable model for applying F&P (2) give an overview of F&P and its operation in some fields which is shown in the chosen model In particular, the author presents the findings of weakness and causes of the problem (3) The author offers recommendations for improvement operation and a proposed an action plan in the short, medium and long term to solve the root cause Finally, the authors have compiled a list of priority actions Research questions To find out the weakness in F&P’s operation, this thesis should answer the following questions: • Major research questions: o Which diagnostic models should be used to review F&P? o How to improve the operation of the F&P? • Minor research questions: o What are diagnostic assessment and its process? o What are the weaknesses of F&P’s operation? o What are the root causes of these gaps? o What actions is needed to improve the operation of F&P o Which one should be prioritized? Research methodology The research methodology is used in this thesis is case study and this methodology meets the research’s objective Data used in the thesis were taken from both realisable secondary data about F&P’s operation collected in the process of working with F&P and primary data collected from interviewing head and staff of F&P about its strategy, structure, processes and human resources and from author’s observation There are a number of techniques used to conduct a case study research which including: • Interviewing staff and expert • Economic statistic method • Methods of description and comparison Scope of the research The thesis focused on diagnosis assessment for F&P, Vinaconex before 2011 and to propose recommendations to improve its operation’s effectiveness To conduct this thesis, the author has collected documents about business operation of F&P and researched about diagnostic models in both theory and practice of well known consulting firm as well as best practices in the world The purpose is to compare and analyze these models to find the one which is suitable and appropriate to apply in this case of F&P, Vinaconex The thesis focuses on the following main points: • Find the definition and process of corporate diagnostic In addition, the thesis reviews six diagnostic models including four commonly used diagnostic models and two models of McKinsey and KPMG- two big firms in consulting industry After analyze these models, the author choose the most appropriate one to apply for F&P • Conduct a fact-finding about strategy, structure, processes and personnel Find out the weakness point and root cause of the limitation • Propose recommendations for improving strategy, structure, processes and personnel In order to make these recommendations more practical, the authors proposed an action plan with specific time frame for short term (three to six months), medium (less than 12 months) and long-term (one to three years) Significance of the research This thesis has significant theoretical and practical value In this thesis, the author has provided a number of well known corporate diagnostic models from 1955 to 2008 Additionally, the author has compared these models to see the difference and change in the perspective of reviewing a business diagnostic after half a century Besides, by providing the methodology of the famous consulting firms has brought the real insight and to make the thesis be more practical to real business world As well, this is a very new topic for Vietnamese thesis and the number of research about this topic is so limited This thesis is useful for: • Management of Vinaconex in general and of F&P in particular By conducting a diagnostic assessment, F&P’s leaders can see the gaps and solutions to improve these issues • Managers of other companies: the thesis provides a methodology of corporate diagnostic for other enterprises to conduct diagnostic assessment Based on the same business environment and same old style of management, most of Vietnamese enterprises suffer the same issues in operation Therefore, managers of other businesses can see the case of F&P as an typical case to study and consider to apply a number of recommendations to improve their businesses taken into consideration during planning process Also, quarterly review should be conducted for revision and improvement Developing procedures of key processes including HO and consolidation FS Preparation Manual which are stated clearly process implementer and deadlines as well as sanctions for non-compliance and month-end and quarter – end closing Besides, F&P need develop standard project management processes and policies for key types of projects and clear project payment processes: Discuss with Investment and Construction department to finalize case-by-case payment procedures and supporting document requirements and agree on the consistent template in project management F&P need to develops planning & reporting framework, which includes below sections: • Planning & reporting methodology • Planning & reporting schedule • Planning & reporting templates • Planning & reporting processes & procedures Applying the best practices in cash-in-hand should be taken to establish a policy to limit cash on hand to reduce the risk and establish petty cash fund for small purchases to minimize cash in hand To enhance cash position and forecasting, they need to develop procedure to prepare cash position and forecasting and take cash-in-hand into account the cash position report Enhance internal communication needs to be done by conducting periodical surveys among staff at HO and subsidiaries to study about working environment, training needs, difficulties of staff in cooperating with each other to perform shared processes and suggestions of staff to improve the effectiveness & efficiency of the processes Moreover, they need to develop an orientation program that provides an overview of Vinaconex’s core values, missions and goals, corporate culture, and basic knowledge on all functions, key processes, and interpersonal communication skills Additional, evaluation results together with comments/feedbacks should be 85 communicated regularly between management & staff By utilizing IT solutions, it will enhance enterprise-wide communication Medium term In medium term, standardizing internal and external processes need to for better control, contingency replacement, reduction of conflicts and duty avoidance Processes must include clear roles and responsibilities (who in-charge, whom to report to) and also emphasize relationships with other departments All staff should be communicated about such standardized processes in order to raise awareness and preparedness of peer support and win other departments’ commitment to compliance with such formalized processes Also, F&P should develop inter-company policies and procedures to support existing and future staff in perform accounting function and develop a database which centralizes all project management Moreover, F&P need to establish the project budget planning function and enhance tracking of actual project spending against budgeted amount and assign a function to be in charge of the project that is empowered to make decisions – BOD should delegate authorisation in fund disbursement to F&P or Project Finance in order to reduce workload for BOD and make payment processes efficiently and effectively F&P needs centralizing cash management by establishing Treasury function by assign one staff to prepare cash management reporting (cash position/ forecasting and cash flow analysis) and state clearly deadlines and information needed to support cash management from project management staff and lending and borrowing mgt staff One more action need to be done is to develop and authorize Financial Information Disclosure to enhance the transparency of information for external investors and shareholders F&P should cooperate with Foreign Affair to disclose financial information as shareholder and investor requests The department must conduct research on IT software to support other functions such as project management and planning F&P should invite software 86 supplier for discuss requirements and standardized processes in project management requirement and engage with IT consultant to develop IT system development plan to support planning & reporting activities Also, the department needs to revise current internal sharing file system & policies to assign the responsibilities of each person-in-charge in filing Long term In long term, developing ERP system need to taken to help corporation’s management maintain visibility and control over subsidiaries F&P should use a single ERP provider to ensure quality standard and consistency and an independent consultancy firm to evaluate the efficiency and compatibility of ERP towards Vinaconex core business Change management should be receiving proper attention of the Management to ensure smoothness of transition period To match the capacity with evolving processes and procedures, F&P should revise recruitment requirement in the lines with changing functions of F&P To investigate the difficulties in compliance with Inter-company policies and procedures and propose necessary support, F&P should conduct field trip to subsidiaries To check on a random basis the inter-company transaction with random subsidiaries, F&P should develop the reconciliation scheme/ processes within controlling subsidiaries Besides, the management should develop accounting manual for HO accounting function which can be used as the sample for subsidiaries to develop it own ones To this, they must discuss to develop the consistent project fund raising and disbursement, especially make decision on project payment centralization Additionally, they need discuss with BOM to enhance the IT support in not only F&P department but also other departments – such as ERP system at HO The ERP systems support BOM to access easily to financial and management information which improve the quality and timeliness of reporting Vinaconex should engage with experience ERP consultant to develop an installation and implementation plan and standardise all processes within HO 87 3.2.4 Human resources Short term In short term, these actions need to be done first to improve human resources Firstly, F&P need to identify gaps in current skill sets of staff to guide recruitment and/or training activities Staff in weaker functions limits their efforts in accounting related, transactional activities due to their lack of capacity in the areas (e.g planning, financial analysis) Identifying these skill gaps will help management focus their recruitment and training practices to provide suitable skills to develop the functions The identifying practice need to be done with an open mind to see a broader scope of the functions currently being implemented (e.g financial investment, project planning & management) Besides, team work should be facilitated to allow sharing of experience and create cooperative working style by conducting trainings on team building and working skills, encouraging team work by assigning job to team instead of individual, facilitating team working culture by holding regular team meeting to share experience and team bonding initiatives: shared responsibility & accountability, common social activities Also, F&P should maintain flexible team structure to ensure the department acts as cohesive team F&P need to develop training programs which consists of detailed courses in the following fields: • Accounting • Finance • Project Management • Planning Also, sending Financial Investment staff to training course in finance in such following subjects: Financial Analysis, Asset Valuation and Investor Management need to be done 88 Medium term In medium term, the most important action is to invest in people F&P need to develop official short term and long term plan to improve the competency of staff in areas most beneficial to the department and staff F&P should categorize and prioritize the training needs base on the department’s strategic development plan Also, training plan is developed in short term and long term horizons to make sure all the gaps and weaknesses are taken care of One staff need to be assigned to work closely with HR development department to coordinate the training initiatives F&P need to play more active role in recruitment of department’s staff by defining and prioritizing the desired skill sets for each division and position in the department Position description need specifying the desired skills, qualifications and experience should be prepared and provided to HR development department prior to recruitment Recruitment interviews and tests should have the involvement of F&P division heads F&P need to develop clear performance evaluation system that is linked to incentives so that staff knows exactly what is expected and the accompanying rewards for good performance The management should hold several focus group discussions to work out the most suitable evaluation indicators for the department, e.g utilization, number of projects manage, meeting deadlines, proactiveness Futhermore, evaluation results together with comments/feedbacks should be communicated regularly between management and staff Efficient performance evaluation system helps motivate and retain talents, also reduce inefficiency at work Other actions need to taken are deciding on staff allocation in the lines with new organisation structure, developing skill sets for each individual division which will be one of recruitment requirements, appointing staff to attend relevant trainings as appoint junior staff who is responsible for Treasury function to attend cash management course and appoint senior management in Project Management and Project Budgeting 89 To conduct training on basic VAS and IFRS for all F&P staff, F&P need to engage with a education institution to support Vinaconex in conducting VAS or IFRS training, especially consolidation subject Also, it need provide training on market analysis, especially in real estate and construction markets to all staff in the Department F&P need to participate in topic-oriented & professional workshop conducted by sound and famous financial institutions, consultant firms and government bodies Registering relevant workshops or seminars which can be known from public announcement or invitation also needed Especially, by providing English course to staff, F&P will enhance English skills which will support staff to approach international best practices in their works Long term In long term, the management should conduct regular discussions within the department to promote communication between staff and management about capacity expectations and desires This should be established as a regular activity of the department to ensure expectations are communicated between management and staff Management can use the discussion to align staff’s personal development desires to fit with department’s objectives and avoid overlapping of efforts (e.g everybody learns to consolidation) Also, F&P need to develop succession plan to prepare for new management team include leadership development program should be initiated to equip candidate with management skills, experience and qualifications and create comprehensive incentives system This recommendation is aim for F&P management in order to recruit and retain the best staff A comprehensive incentive system could help them fulfill the task Key incentives could include working environment and culture, i.e colleagues and management, community responsibilities Compensation are salary and bonus, fringe benefits Also, career development which is important includes performance evaluation, recognition and promotion, training, experience 90 Establishing clear career path within the F&P department as well as within HO/Parent organization needs to be done With a clear career path will help staff focus their effort on the right directions, and be motivated to take ownership of their job Staff career path should be in harmony and support development path of the whole department within the organization Regarding the department’s career path, communication with senior management and other department is important to get appropriate cooperation and support The last point is that F&P should develop long-term capacity enhancement program which consists of a continuing training program: regular updated jobspecific skills and soft skills, a continuing training program should be segmented by level: senior management, mid-management and junior staff or on an experienced basis, i.e new joiner and experienced ones, training program should consist of both in-house and out-sources and revise management and staff capacity on a yearly basis to bring foundation in KPIs evaluation 3.3 Top 15 Activity Prioritisation Develop position description with clear roles and responsibilities Develop Department strategic development plan with clear objectives Redesign the department’s structure in order to enhance F&P effectiveness and efficiency Develop procedures of key processes in all four divisions Identify gaps in current skill sets of staff to guide recruitment and/or training activities Enhance cash position and forecasting Develop clear performance evaluation system Work more closely with other departments Develop training programs for each Division 10 Develop inter-company policies and procedures 11 Develop official short term and long term human resource investment plan 91 12 Play active role in recruitment of department’s staff 13 Conduct training on basic VAS and IFRS for all F&P staff 14 Provide English course to staff to enhance English skills 15 Revise incentive scheme 3.4 Chapter review Based on the analysis of F&P’s operation in chapter 2, the author gives some recommendations in short, medium and long term as below to improve the efficiency of strategy, organization structure, process and human resources Strategy In short term, instead of scattering capacity enhancement effort in several general topics, the department should focus on the weakest functions Besides, developing strategic development plan with clear objectives to guide all the activities of the department is a must for F&P In long term, the management should hold talks with senior management, other departments and subsidiary representatives to update on capacity enhancement needs and conduct field trip to subsidiaries to provide more support in accounting and finance function Above all, they need to improve the position of F&P department as leader of the corporation’s finance and accounting teams (subsidiaries’) Organizational structure What F&P needs to is to develop position descriptions including roles and responsibilities for each position to allow staff to take ownership of their jobs and suitable skills are recruited and/ or trained to fill in the skill gaps as the first priority Then, F&P should find out a new model and redesign the department’s structure to better fit to Senior Management’s expectations Besides, review competency, roles and responsibility of each position to improvement/replacement need to be done 92 identify gaps and needs for Process In short term, F&P’s leaders should develop procedures of key processes in all four divisions including introduction new procedures in FS preparation Manual and Planning framework Besides, they need to enhance cash position and forecasting as well as apply best practices in cash-in-hand Developing and authorising Financial Information Disclosure is also needed As well, F&P needs to develop; update & revise KPIs system and incentives scheme to improve the effectiveness and efficiency of implementing processes Lastly, they should develop ERP implementation plan to smooth lines of reporting and address existing efficiency Human resources Firstly, F&P needs to develop official short term and long term plan to improve the competency of staff in areas most beneficial to the department and staff including training program to address current gaps in staff competency Secondly, establishing clear career path within the F&P department as well as within HO/Parent organisation needs to be done Thirdly, the management should develop clear performance evaluation system that is linked to incentives so that staff knows exactly what is expected and the accompanying rewards for good performance Lastly, team work should be facilitated to allow sharing of experience and create cooperative working style in accordance with improving working environment 93 CONCLUSION Vinaconex is one of Vietnam’s leading organisations, in terms of size, brand and quality As the world’s global marketplace emerges from the recent financial crises, it will be a key task of Vinaconex to continue its focused expansion, concentrate on profitable business ventures and core-business strategy, and manage its internal and external capital appropriately Therefore, a key success factor will be a competent, value-added and proactive F&P’s function to support Vinaconex’s business objectives By conducting organization’s diagnostic to F&P Department, Vinaconex, utilising four factors (strategy, organization structure, process and human resources) based on reviewing a number of diagnostic models outlined on the following page, this thesis represents the analysis, findings and recommendations for F&P to improve the function Some key findings are F&P has the strength of a large, experienced F&P team with well-balanced mix of staff and good quality and timeliness of current financial and accounting reporting Also, F&P has reasonable cash visibility (cash forecasting and reporting) and fund-seeking ability However, F&P’s performance still has some weaknesses that need to improve in strategy, organizational structure, process and human resources Strategy F&P is lacking of long-term resource development plan for the department The role of F&P as leader of the corporation’s finance professional teams has not been fully perceived and displayed by staff Recommendations for these issues are the department should focus on the weakest functions and developing strategic development plan with clear objectives to guide all the activities of the department Above all, they need to improve the position of F&P department as leader of the corporation’s finance and accounting teams (subsidiaries’) 94 Organizational structure There is unclear roles and responsibilities between the divisions within the department Moreover, there is weakness in several functions which are expected to be performed and mastered by F&P (budgeting, project evaluation, etc.) Planning function is not exercising strong role in keeping the business activities aligned is another issue Lastly, divisions not have similar level of recourses due to imbalanced professional skill pool and the current system does not encourage and facilitate cooperative working styles as well as sharing of information and experience among staff Recommendations to improve F&P organizational structure are to develop position descriptions including roles and responsibilities for each position In addition, F&P’s management should redesign the department’s structure to better fit to Senior Management’s expectations Besides, review competency, roles and responsibility of each position to identify gaps and needs for improvement/replacement need to be done Process By reviewing the processes of four functions, some findings about their processes are discovered Firstly, F&P does not have standard procedure for key functions and the current processes have gaps and potential risks Secondly, there is very limited support from information technology which make these processes lack of effectiveness Suggestions to improve F&P’s process are leaders should develop procedures of key processes in all four divisions Furthermore, they need to develop; update & revise KPIs system for each process and develop ERP implementation plan to smooth lines of reporting and address existing efficiency Human Resources In F&P, some staff feel that they are not assessed accurately and properly F&P is also weak teamwork as inefficient cooperation and coordination between staff There is a real that high staff turnover and lack of required training or 95 induction for staff to introduce the policy as well as corporate culture and career development What F&P should is to develop official short term and long term plan to improve the competency of staff in areas most beneficial to the department and staff Besides, leaders should establish clear career path for staff in according with developing clear performance evaluation system that is linked to incentives Last but not least, team work should be facilitated to allow sharing of experience and create cooperative working style 96 APPENDIX Survey of staff’s strength and weakness and attitude to working environment The survey was taken for 13 staff at F&P with the questionnaire as below Q1: List five (5) personal strengths that help you perform your job well (e.g self- study, knowledge, etc.) Q2: List five (5) personal weaknesses that impact on your job negatively (e.g lack of experience, etc.) Q3: List five (5) positive things about working at Vinaconex (e.g career path, working conditions, etc.) 97 Q4: List five (5) negative aspects about your work at Vinaconex (e.g IT system, working conditions, etc.) 98 REFERENCES Clayton P Alderfer (1980), C P Boundary relations and organizational diagnosis Springfield, pp 11 David P Hanna (1988), Designing Organizations for High Performance, Addison-Wesley Falletta, S V (2008) Organizational intelligence surveys Training & Development, June, pp 52-58 Jay R Galbraith (2007) , Designing Organization, JohnWiley&Sons, Inc Leavitt, H J (1965) Applied organizational change in industry New York, NY: Rand McNally Robert H Waterman, Jr., Thomas J Peters & Julien R Philips (1980), Structure is Not Organization, Business Horizons The author summed up from Professional Psychology (1980) Vol 11, No 3, chapter 3, Understanding organizational organizational diagnosis, Addison-Wesley www.kpmg.com www.vinaconex.com.vn 99 behavior: methodology of [...]... candidates and students who look for a methodology to improve enterprise’s operation 7 Thesis structure Besides the introduction and conclusion, the thesis includes three chapters with the following contents: Chapter 1: Overview of corporate diagnostic and models This chapter provides the definition and process of corporate diagnostic as well as reviews six models and choose one to apply for F&P’s diagnostic. .. Chapter 1: Overview of corporate diagnostic and models Chapter 2: Analysis on F&P Department s operation of Vinaconex Chapter 3: Recommendations to improve F&P’s operations 5 CHAPTER 1: OVERVIEW OF CORPORATE DIAGNOSTIC AND MODELS 1.1 Corporate diagnostic overview 1.1.1 Corporate diagnostic definition Organizational diagnosis is a process based on behavioral science theory for publicly entering a human... is the basis for the company’s action plan to improve its performance 1.3 Corporate diagnostic models There have been many diagnostic models for business review in both theory and business practical Due to time limitations, the authors would like to present 9 some typical models which are well known around the world These models are presented in published books or proven over the years by applying in... means for protecting themselves against excessive and unproductive demands by clients during diagnosis This approach sets limits on how consultants will use their skills and knowledge during diagnosis and, in general, develops expectations about what consultants and clients can count on from one another during the diagnostic process 1.1.2 Why a corporate diagnostic is so important Corporate diagnostic. .. issues holistically and from cross-functional and cross-cultural perspectives • Negotiate and influence without formal authority or positional power • Build relationships and networks and skillfully work through informal channels • Advocate and collaborate without bullying or compromising • Share decision rights and resources and make joint decisions with peers • Exhibit flexibility and resolve conflicts... performance and accomplishments are measured and managed Rewards are the monetary and non-monetary incentives that reinforce people's behavior and actions, including advancement and promotion Growth Development & The practices, resources, and opportunities available for employee skill development and enhancement, including development planning, training and learning, and stretch assignments Employee Employee... cognitive, emotional and Engagement behavioral relationship employees have with their jobs and organizations, and effort and enthusiasm they put into their daily work (i.e., the extent to which employees exert their 18 discretionary energy and effort on behalf of the organizations they serve) Performance The outcomes and indicators of individual and organizational Outputs achievement and results Sources:... manager, and rewards and growth opportunities, among other factors 1.3.2 Models of consulting firms These above models were born in 50,60 years ago Today, these models are still used for research or for reference in universities In real business world, while the service of counseling business performance is growing, the leading consulting firms like McKinsey and KPMG also has their own methodology to perform... objectives and tasks in the short and long term Elements of decisionmaking and management of information flows, roles and responsibilitie s be separated Models Factors 11 elements in Organizationa 3 group including: l Intelligence − Strategy Model of − Leadership Falletta Culture (2008) − Struture & adaptability − Information and technology − Direct manager − Measurement and rewards − Growth and development... analysis Feedback Figure 1.1: Corporate Diagnostic Process Sources: Clayton P Alderfer (1976) Step 1: Entry This step is to find out initial information about the enterprise This step is aimed at understanding business situation to determine the expectations of the business, the gap and need-to-improved points, to define business scope, management style and other information Planning and the survey approaches ... OF CORPORATE DIAGNOSTIC AND MODELS 1.1 Corporate diagnostic overview 1.1.1 Corporate diagnostic definition 1.1.2 Why a corporate diagnostic is so important 1.2 Corporate diagnostic. .. NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS Dao Quynh Anh REVIEWING CORPORATE DIAGNOSTIC MODELS AND APPLYING FOR FINANCE & PLANNING DEPARTMENT- VINACONEX Major: Business Administration Code: 60 34... Overview of corporate diagnostic and models This chapter provides the definition and process of corporate diagnostic as well as reviews six models and choose one to apply for F&P’s diagnostic