Chapter 2: Current situation of Key Performance Indicators (KPIs) at TTT
2.2. The existing situation of key performance indicators at TTT
2.2.2. Assessment on deployment possibility of BSC and KPI at the
Table 2-9: Summary of staff survey on BSC/KPI
No Content Average
score
1 I had a clear job description. 3.77
2 My job had specific standards (requirements on knowledge,
skills, experience, etc) 3.34
3 My objectives/criteria in work were assigned clearly. 3.08 4 I participated in building objectives for my job. 3.75 5 I participated in building objectives for my
department/workshop. 3.63
6 I clearly understood objectives of the Corporation. 2.78 7 I clearly understood objectives of the department I have been
working for. 3.46
8 Based on objectives of my department and job description to
self-plan my goals. 3.65
9 My direct manager actively supported me in planning my job
objectives. 3.41
10 I have enough rights to do my job. 3.47
11 I know what to do to perfect my goals. 3.41
12 In general, job assessment results are now fair. 3.38 13 At present, job assessment is based on clear objectives and
criteria. 3.22
14 My assessment criteria/objectives are quantitative, computable
and measurable. 3.21
15 Now, before assessment of leaders, I self-evaluate my job. 3.69 16 I find difficult in collecting information and data to self-
evaluate my job. 4.00
17 I trust in assessment of leaders on me (accuracy and fair). 3.00 18 My assessment results are always responded and explained
properly by the manager. 3.59
19 Staff assessment results now attach with their rights and
obligations. 3.45
20 I have been trained in BSC - Balanced Scoredcard 2.43 21 I have been trained in KPI - Key Performance Indicators. 3.21 22 I agree to apply BSC/KPIs to evaluate work performance
results of staff. 4.15
Table 2-10: Summary of leader survey on BSC/KPI
No Content Average
score 1 The Corporation has a clear mission, vision and strategy. 4.7 2 Current objectives at departments are linked to the strategic
goal of the Corporation. 2.9
3 The Corporation has determined key successful factors. 2.7 4 The Board of Directors has found the link between short-term
and long-term objectives of the Corporation. 3.7 5 Senior leaders are provided proper reference sources on BSC
and KPI. 3.3
6 You are ready to spend your time participating in BSC/KPI
workshops. 4.2
7 You have selected potential candidates for the team deploying
BSC/KPIs. 4
8 You are ready to empower your staff for them to do their job. 4.3 9
The Board of Management has fully understood about the connection between performance measurement, report and improvement.
3.2 10 The Board of Management assigns specific tasks to
departments. 4.1
11 Current KPIs can measure strategic objectives of the
Corporation. 2.8
12 Criteria for staff assessment are now specific, clear and suitable
with title groups. 3.9
13 At present, employees at the Corporation believe in assessment
of their managers on them (accuracy and fair). 3.4 14 Staff assessment results are responded and explained properly
by managers. 4
15 Leaders find difficult in collecting data and evidence to
evaluate their staff. 3.7
16 The Corporation has established a full database of KPIs. 3.1 17 Staff assessment results now attach with their responsibilities
and rights. 4
18 You support to apply BSC/KPIs to evaluate work performance
results of your staff 4.3
19 You are ready to support internal communication on applying
BSC/KPIS. 4.5
20 You are ready to use measurements to improve your work. 4.3 21 You support the outsourcing of advisors to consult and deploy
BSC/KPIs. 4.1
22 You believe that the application of BSC/KPIs at TTT
Corporation will be successful. 4.1
Through surveying the staff and leaders, reviewing the actual situation at TTT Corporation and based on conditions to apply BSC/KPI application, I have
some experience when deploying and applying BSC and KPI at TTT Corporation as follows:
Starting from the business strategy
The Balanced Scorecard (BSC) is a strategic planning and management system designed with the focus on interconnecting the process of managing work performance of an organization with the strategy so that it does not make any sense if the enterprise deploys BSC without any connection with the business strategy. The clarity level of the company's vision, mission and strategy was rated 4.7/5 points by the Board of Directors, indicating that the strategy of TTT Corporation is relatively clear. This is a good condition for the company to apply BSC and KPI.
The connection between key performance indicators and the strategic orientation
The survey sentence "The objectives of current levels are clearly linked to the company's strategic goals" was rated at 2.9/5 points. And the company has not yet identified the key success factors, only 2.7/5 points. Current KPIs do not measure the organization's strategic objectives, only at 2.8/5 points.
In terms of staff, they are involved in setting goals for their work (3.75/5 points), employees self-assess their work before their leaders’ evaluation (3.69/5 points), making contribution to set goals for their department (3.63/5 points), based on their departmental goals to plan their work (3.65/5 points). However, the targets and objectives have not been clearly assigned (3.08/5 points), the staff has not understood objectives of the Corporation (2.98/5 points) and departments (3.08/5 points).
The assessment results, in spite of being adequately explained by the manager (3.59/5 points), are not based on clear criteria (3.22/5 points) and the criteria are not measurable (3.21/5 points). So employees do not trust the evaluation of the Corporation (3/5 points)
Resources for the deployment
- The Board of Management and managers:
The final commitment and determination of the senior leaders is a prerequisite for the Corporation to successfully deploy the Balanced Scorecard. Through the actual survey, it can be said that leaders at TTT Corporation are highly
determined to continuously improve key performance indicators and apply the Balanced Scorecard in the future. The support level of the Board of Director was 4.3/5 points. 4.2/5 points was the level that leaders are willing to spend their time to participate in BSC/KPI workshops. The level of confidence in applying BSC/KPIs was rated at 4.1/5 points. Readiness to use measurement results to improve their work was rated at 4.3/5 points. The level of management support for outsourcing consultants to deploy the BSC/KPI was rated at 4.1/5 points. The survey results showed that the Board of Directors was willing to support the application of BSC/KPIs to the Corporation and believed in the success of this approach to improve the efficiency of work performance assessment.
- Communication:
In order to successfully apply the Balanced Scorecard, the purpose, benefits and the way of application must be diffused from the top to the bottom and vice versa as well as acrossing departments so that every member has ability to apply thoroughly and effectively. In terms of leaders, they are always ready to support internal communication on applying BSC/KPI (4.5/5 points)
- Resources:
The Board of Directors understood and found that potential candidates could assist the company in deploying the BSC/KPIs (4/5 points), they were ready to empower their staff to perform their work (4.3/5 points) and had satisfactory feedbacks, timely explained to staff about their working results (4/5 points). In terms of employees, 4.15/5 points was the level that employees were willing to support BSC/KPIs, however, they were not trained in BSC (2.43/5 points) and the number of employees understanding KPIs was only rated at 3.21/5 points.
Combining measurements, reports and enhancing work performance
It is needed to develop a unified framework so that work performance can be measured and reported to result specific actions. 3.2/5 points was the level that leaders fully understood the link between measurements, reports, and improvement.
Database system
Enterprises have to set up a unified measurement system from the organization, departments to individuals. The survey sentence "The Board of Management
found difficult to collect data, evidence for staff evaluation" rated at 3.7/5 points, and “employees found difficult to collect information and data for their job assessment” rated at 4/5 points, demonstrated that the Corporation was getting trouble in staff assessment and the need is to have a database system continuously updated for the evaluation. At the same time, reference sources for BSC/KPI provided for the leaders were only at 3.3/5 points, 3.1/5 points was the level that leaders agreed the company to set up full database for KPI storage.
The comment "I have a clear job description" was rated at 3.77/5 points. And the current work with specific standards (3.34/5 points) showed that the company partly set the standard for each job.
2.2.3. Factors impacting to deployment of BSC and KPI
Based on the analyzed results, besides the favorable factors supporting the implementation, there are also many challenges need to overcome. We conclude key factors affecting deployment ability of BSC and KPI at TTT Corporation as follows:
Advantages: Strong support and commitment of leaders at all levels; the willingness to empower the employees; staff support for BSC/KPIs; The company has clear plans, objectives, vision, and job description; willing to incorporate measurements, reports and work performance enhancements.
Challenges: Operational procedures have not been standardized, there is no database for information storage; there is no link between common goals of the Corporation and departments. The Corporation has not identified all key success factors, the staff, in spite of their support, has not fully understood BSC/KPIs and trained specifically.
In conclusion, although there are both advantages and disadvantages, and more challenges than favorable factors, generally TTT Corporation has many conditions for successful application of BSC / KPI. The limitations, difficulties will have reasonable solutions during the implementation process.
CHAPTER 3: PROPOSALS OF KEY PERFORMANCE INDICATORS AT TTT CORPORATION DURING 2018-2020