INTRODUCTION
COMPANY PORTFOLIO
SMI Technology, a US-invested firm focused on product development and software outsourcing, has grown significantly over the past decade in Vietnam From a small team, SMI now boasts over 1,000 employees and has been recognized with the prestigious Top 10 Sao Khue award for its excellence in the industry.
SMI has been recognized as one of the top 5 IT companies and ranked 32nd among the best workplaces in Vietnam, based on criteria such as salary, bonuses, welfare, development opportunities, leadership, company culture, work-life balance, and overall reputation This accolade highlights the company's commitment to excellence, particularly with its popular product, qTest.
Kobiton, Katalon, Witurn and many more will be coming soon
The concept of "value" in SMI extends beyond technical, project, and business aspects; it embodies a commitment to advancing Vietnam's technology sector through innovative products and services SMI prioritizes community initiatives aimed at nurturing and developing IT human resources, reinforcing its mission to enhance these values.
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
QASymphony, which secured a $40 million investment in 2017, merged with Tricentis and achieved Unicorn status in 2018 Additionally, applications developed by SMI's Vietnamese engineering team, such as Kobiton, received a $3 million investment from Kinetic Venture Capital (USA), while Katalon boasts 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
SMI focuses on consulting and delivering solutions for data management and analysis, as well as supply chain management and software quality management The company targets mid-range customers and explores potential markets throughout 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
The company is actively seeking partnerships with non-profit organizations to develop talent among software engineers in underserved remote areas.
SMI is investing in five new offices in Vietnam, aiming to establish a global standard working environment The company is also dedicated to fostering a professional corporate culture through comprehensive training and employee development programs.
6 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
At SMI, every team member plays a vital role in generating innovative product ideas, fostering a collaborative and dynamic work environment Committed to creating a professional atmosphere, SMI aims to offer high-quality job opportunities for Vietnamese engineers and programmers With a vision to become the leading technology company in Vietnam over the next decade, SMI is poised to achieve billion-dollar revenues.
COMPANY STRUCTURE
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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 is back office function with Finance, Admin, HR, Sales& Marketing, IT,
Delivery Service has Our-sourcing service, Production and Solution Department
Outsourcing services represent the company's most profitable division, offering a range of solutions to clients, including technology outsourcing, software maintenance, system upgrades, risk assessments, and system repairs.
The Production department, comprised of young and recently graduated employees, is a hub of innovative ideas and initiatives Their focus is on developing unique technology products and software solutions that capture the attention of investors and clients alike.
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
Outsourcing and solutions are the primary revenue drivers for the company, essential for sustaining its business operations Significant investments have been made in the Production department to develop innovative technology products, aimed at attracting clients and investors, as well as successfully marketing these products.
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
We aim to make a significant and positive impact on our communities by providing valuable contributions and improvements.
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
Software companies that research, build, develop and provide software, website, applications, games - Companies manufacturing, assembling and repairing hardware equipment
Companies provide network solutions and network security
Administration Department, IT department at companies, including companies operating in the field of Technology and other fields
In the face of intense competition from both domestic and international firms, particularly those specializing in outsourcing services like SMI, notable competitors include LogiGear, Harvey Nash, Sunrise, FPT, DEK Technology, Global Cybersoft, TMA Solutions, and IVC.
SMI is committed to enhancing service quality to meet customer demands while innovating advanced technology products that deliver practical benefits, ultimately maximizing profits and strengthening its competitive edge 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
The IT market in Vietnam faces a significant challenge due to a shortage of resources Despite rising wages and benefits in the industry, experts predict that by 2020, the country will still experience a shortfall of 70,000 to 90,000 IT professionals.
PROBLEM CONTEXT
RECOGNIZED SYMTOM
This study concentrated on the Production department of a company that invested significant resources—money, time, and effort—to develop advanced technology products for the market, aiming to generate high revenue and ensure business sustainability.
The Production Department, consisting of approximately 40 members, has been supported by the SMI Investment Fund over the past years to develop technology products Their goal is to bring these products to market, attract customer investments, or sell them entirely to investors for funding.
In discussions with the DIRECTOR of SMI, it was revealed that the production team is currently facing a challenge: the developers' actual performance is falling short of the Management's targets.
One of the interview from Mr Cao Minh Nhat - The Director of Production team also confirmed that:
Recently, we have not launched any new products in the market The technology sector constantly demands innovation and widespread adoption to satisfy customer needs However, over the past three years, the Production department has not introduced any new products that achieve the high performance and results of our previous offerings.
Recently, the team revenue has decreased significantly and this situation may continue to occur, so the company needs to find out the cause to overcome this situation
Due to low revenue over the past three years, the Production team members have not received any bonuses, which has contributed to their decreased performance.
Since 2017, SMI has struggled to meet customer demands, leading to a significant number of cancellations of its products and services, which adversely impacted the company's revenue, as illustrated in Table 01.
Table 1: Sale Revenue from 2015 to 2019
(Source: SMI New Production Revenue from 2015 - 2019)
Sale Revenue (Million- VND) tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
The lifecycle of technology products is often brief; if a product fails to satisfy customers, generate significant revenue, or attract investor interest, it is deemed a failure In such cases, the product is typically discontinued to conserve the team's time and effort, as well as to save costs for small and medium-sized enterprises (SMEs).
The Production team, a subsidiary of the SMI group, consists of approximately 40 predominantly young employees The Director of SMI emphasizes that the information technology industry demands unique skills that differ from other sectors, prioritizing youthful intelligence and innovative ideas over extensive experience Consequently, IT personnel are typically young, often fresh graduates or those with just 1 to 2 years of experience The current age distribution of the team reflects this trend.
The data indicates that 75% of the team members are under 25 years old, aligning with the production team's requirements However, the lack of experience among this younger generation often leads to challenges in emotional control and professional behavior in an office setting.
Some might feel uncomfortable while working with these ridiculous one
Some are so quiet and only communicate to each other when needed, they are lack of socialize, or deny to join the company activities,
Some staff just work and work then go home
Some staff just want to enjoy and work with emotion
In order to analyze the problem, there were 12 in-depth interview conducted with 4 main groups as below
- The first group: 02 members: Director and Sales and Marketing managers
- The second group: 03 members: HR manager, Development Manager, Leader
- The third group: 04 members of Production Team
The fourth group consists of three low-performing members who have recently graduated They are currently seeking to download the latest thesis materials and are using the email address vbhtj mk gmail.com for communication regarding their master's thesis.
POSSIBLE PROBLEM
In addition to interviewing the four groups mentioned, the Production team carried out an internal survey to gather more data and identify the reasons behind the team's performance falling short of the company's expectations, as illustrated in Table 02 This table highlights four key issues that received significant feedback from the team.
Table 2: Problem that lead to low performance of Production Team
(Source: SMI Internal Survey for Production Team)
By looking at the statistical numbers of the survey above, it showed many problem affecting low performance of Production team: Unattractive salary & bonus, Ineffective performance appraisal,
Failure Product, Lack of leadership This is true data based on the interview information, the confirmation from all team members of production team
This report will analyze the production team's current issues using both primary and secondary data, identifying the root causes to offer solutions and recommendations for the Board of Directors at SMI Company.
PROBLEM IDENTIFICATION
FAILURE PRODUCT
At SMI, a new product is deemed a failure if its testing report indicates a satisfaction ratio below 50% across multiple tests In such cases, the product must be re-engineered to achieve at least a 70% satisfaction rate If this target is not met, management will opt to halt further development of the app and pursue a new project instead.
Failure Product Unattractive Salary & Bonus tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
A sample circle life of a new product will be shown as below:
Spynkal is one of the typical technology products to give an example of a failure product problem
Recently, the production team had an idea to build a new product named as Spynkal- an app like
Facebook by few month incubation and then it announced to all members of SMI for testing before
Spynkal engaged with the client and technology market, but faced challenges when initial satisfaction-testing results from testers were not favorable To address this, the production team focused on enhancing the app by upgrading existing functions and modifying certain features until they achieved improved testing outcomes.
After 6 to 8 months of development, Spynkal was deemed a failure by the Board of Directors at SMI due to the significant time and effort invested without achieving any success Consequently, the decision was made to discontinue the product and initiate the development of a new one.
The Director of Production team also said that:
Product quality is crucial for ensuring customer satisfaction and driving company success When product quality is consistent and aligns with client needs, the sales team can confidently promote these products Furthermore, stable quality leads to increased customer satisfaction, while the presence of defective products hinders our ability to engage clients effectively.
Riaz and Tanveer 45 stated, “Product is something or anything that can be offered to the customers for attention, acquisition, or consumption and satisfies some want or need”
Reed, Lemak and Mero 43 suggested that delivering high product quality to customers is a key strategy for improving performance in a competitive environment
Chauhudri and Holbrook 8 pointed that a customer who trusts in a product is more likely to remain loyal to it and spread positive word-of-mouth
Boulding et al suggested that product quality directly influences customer loyalty, as high product quality typically leads to customer satisfaction Consequently, a product failure can negatively impact the experience of small and medium-sized enterprise (SME) customers, ultimately affecting SME revenues.
Idea Incubation Launch for testing Low results
Consider to close Low results
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In 2004, Kotler 28 suggested that “a product should be viewed in three level: core product, actual product and augmented product”
Core product means that the core value that the product could offer like purchasing massage chair is buying relation or comfortable moment
Actual product means that product could bring differential advantage from its competitors
Augmented product means that non-tangible benefit of possessing product like discount or customer service and so forth”
Below is a table 3 - testing report in recent years from 2016 to 2019, to show that the new products produced by the production team mostly get unsatisfactory test results
Satisfaction Neutral Satisfaction Highly Satisfaction
(Source: SMI Testing Report for New Production)
Due to disappointing test results from both internal testers and potential customers, the product has not generated significant profits, leading SMI's Management team to reconsider its development As a result of its low performance, the product is classified as a failure and will either be placed in pending mode for future upgrades or discontinued based on the final decision of the management team.
UNTRACTIVE SALARY AND BONUS
Employees consistently seek higher salaries and bonuses, often feeling that their current compensation is insufficient This report aims to explore the impact of inadequate financial incentives on the performance of the production team.
The production team receives compensation through a combination of a monthly salary and performance-based bonuses linked to key performance indicators (KPIs) The monthly salary is guaranteed regardless of product output, while bonuses are awarded based on the team's job and product performance.
The production team, upon the release of the product, reported that their low performance was largely due to receiving only a basic monthly salary, which they found unattractive This sentiment was highlighted in a survey where they cited inadequate salary and bonus structures as significant factors affecting their motivation and productivity.
Unequal remuneration is also a factor that reduces the productivity of the team and leads to an increase in the rate of job vacancies at the company
And from the perspective of Mr Nguyen Huu Minh - Developer Manager:
Customer demands are rising, yet our products are plagued with errors and suboptimal usage, hindering their market appeal and investment potential The lack of effective Total Quality Management negatively impacts both company performance and team morale, ultimately affecting salaries and bonuses.
There are theoretical link have the relationship between performance and competitive advantage as metioned in Curkovic & Pagell 11 ; Feigenbaum 16,17 ; Noori 38 ; Seawright & Young 50
Therefore, the resource of employees in the production team is fluctuating, the turnover and new recruiting is significantly up and down by this cause and shown as table 4 below:
Table 4: Employee status in 2016, 2017, 2018, and 2019
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
The article discusses the process of new hiring and transferring employees to different departments, as well as the termination of contracts It emphasizes the importance of downloading necessary documents and staying updated with the latest information Additionally, it highlights the significance of academic theses and the role of email communication in these processes.
(Source: Production Employee Status from 2016 - 2019)
According to a survey conducted by HR Consultancy Anphabe, a turnover rate of 10% is ideal for businesses, allowing for personnel stability and a change in staff approximately every 10 years Additionally, data from SMI HR regarding Team Production's member status in 2016 supports these findings.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
New Hiring Tranfer to new department Termination
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
New Hiring Tranfer to new department Termination
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
The article discusses the process of new hiring and transferring employees to different departments, as well as the termination of contracts It emphasizes the importance of downloading necessary documents and staying updated with the latest information Additionally, it highlights the significance of academic theses and the role of email communication in these processes.
In 2019, the average turnover rate for the group ranged from 10% to 20%, indicating a significantly high turnover With approximately 75% of Team Production's employees being under 25 years old, the stability within the workforce is low Consequently, SMI Company faces challenges in retaining personnel, leading to increased costs associated with recruitment and replacement.
The Production team members serve as a backup resource to ensure adequate staffing in the Outsourcing and Solutions department in the event of employee resignations.
To maintain project stability while awaiting new hires from the HR Department, backup resources are utilized to ensure that the agreed-upon headcount with clients is met This approach guarantees that all processes are completed efficiently and within the designated timeframe.
So the resource of Production team is not stable It is also lead to high turnover rate that greatly affect to the team's performance
High employee turnover significantly impacts the workflow of remaining team members When a team member resigns, the others must compensate for the workload to maintain progress, which can lead to a decline in work quality and ultimately affect the overall product quality.
This is also effect to the recruitment costs, time, and effort of Human Resource Department to recruit new replacement in particular and in company's revenue in general.
INEFFECTIVE PERFORMANCE APPRAISAL
The performance of the production team has been a significant challenge due to the youth and inexperience of its members, leading to mistakes that impact product quality However, these young employees bring energy, creativity, and a strong desire to learn, making them valuable assets for the company To harness their potential, the company is committed to ongoing training, aiming to develop their skills and ultimately produce high-quality products that attract investors, similar to successful products from the past.
An in-depth interview with HR manager has been conducted and she said: “
Frequent changes to team product targets can disrupt workflow, while ineffective performance appraisals may demotivate employees, hindering their ability to achieve optimal performance.
“In production team the performance appraisal is quite difference from other department
In a team setting, when one member, A, has less expertise than their colleagues, the more experienced teammates are often willing to assist by taking on some of A's responsibilities This allows member A to focus on leveraging their unique strengths to support the team in other areas.
Employee A is tasked with a segment of the new production process but lacks the necessary qualifications, prompting Employee B to assist in completing the project Similarly, Employee C will support Employee B during challenging phases of the work This transfer of responsibilities may lead to biased KPI assessments, ultimately impacting the overall year-end evaluations for all employees involved, as noted by Moradi, Mehraban, and others.
Moeini 34 and Harrington & Lee 19 ; Kampkotter 24 the effective performance appraisal will improve the quality of the employee performance and because of the ineffective performance appraisal; it will lead to the consequence of the low performance of the team
As Cawley, Keeping & Levy 7 ; Roberts 46 ; Singh 53 mentioned, “There are very few studies and literatures on employee participation focus on performance appraisal”
In addition, Daoanis 12,13 with a clear vision, constructive feedback in the appraisal process is expected to provide for employees to participate in performance appraisal
And from Mr Nguyen 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 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”
And from Ms Nguyen Ngoc Bich – Developer who work for nearly 02 year said that:
Our production team uniquely utilizes the funds invested by SMI to sustain operations However, the absence of product investment and key performance indicators (KPIs) has hindered our ability to manage performance effectively, resulting in no bonuses for several years.
Performance assessment enables companies and employees to define and evaluate individual performance benchmarks, fostering commitment among workers It also encourages underperformers to improve, enhancing overall productivity and engagement within the organization.
Table 5 indicates that the performance appraisal system has been ineffective, leading to a significant decline in the performance ratio of the development team over the past three years The proportion of developers achieving outstanding and highly effective performance has dropped to nearly 50%, with many now classified as effective or under expectation.
(Source: SMI Performance appraisal ratio from 2016 - 2019)
This performance appraisal evaluates the revenue results of previously developed new technology products, referencing the product testing report outlined in Table 3.
From the information obtained, it can be seen that the ineffective performance appraisal greatly affects the performance of the Production team
From Trong’s opinion: Developer who has low performance result:
In recent years, we have struggled to launch successful products that meet customer demands, resulting in low sales revenue Despite our efforts to develop various products, increased competition in the industry has hindered our performance, leading to minimal salary increases and no bonuses for our team.
And Nam Vũ a Leader also said that:
Some team members possess high intelligence but often display ridiculous behavior, leading to feelings of demotivation when tasks are not completed properly While some individuals refuse to rework their assignments, others are left to support them, resulting in decreased team performance and overall motivation.
By stated at Roberts 46 , the ineffective performance will be a consequence of less or non- participation of employee, since they may see it valueless as stated by Wright 57
Conducting performance evaluations without clearly defined goals can lead to significant issues, including employee dissatisfaction and reduced productivity, as noted by Maley 33 According to Daoanis 12,13, an effective appraisal framework must provide clear direction and constructive feedback to motivate employees to meet performance standards and achieve set targets.
LACK OF LEADERSHIP
A recent survey indicates that 25% of young leaders lack essential leadership skills, a concerning statistic that can adversely affect employee performance This deficiency often stems from insufficient training and coaching, which may be exacerbated by negative personality traits in leaders Researchers refer to these detrimental characteristics as "toxic" leadership, highlighting the need for effective leadership development to foster a positive work environment.
Frost 18 ; Padilla et al 40 or abusive leadership in Tepper 54 ; or destructive leadership in Kellerman 25 ;
Schaubroeck et al., 48 ; Mumford et al., 35
From Internship member – Mr Nguyen Duc Tuan, he said that:
During our internship program, opportunities for direct interaction with our leader are limited, resulting in minimal communication Consequently, we are unable to provide feedback or receive coaching from them.
Young individuals often seek to express their voices, opinions, and thoughts However, they may encounter resistance when proposing solutions, as others might perceive them as inexperienced.
Leadership is a crucial element of project management, significantly influencing project outcomes It has been recognized as a key success factor that can determine the success or failure of a project.
Toxic leadership can lead to detrimental effects on organizations, including high turnover rates, decreased revenue for stakeholders, and unstable team dynamics, ultimately impacting the leaders themselves.
From Lombardo et all 31 : lack of leadership will lead to the following negative result:
Inability to build a strong team
The article discusses the lack of support and excessive demands placed on subordinates, highlighting the challenges faced in a professional environment It emphasizes the need for a more balanced approach to leadership that fosters collaboration and understanding.
Having poor relationship with team member
Overriding personality defects And from Mr Nguyen Ngoc Tuan – Developer who has low performance result:
Some staff members are dissatisfied with their performance appraisals, which has contributed to their lack of motivation, especially since they did not receive bonuses The SMI production team, being a specialized department, is currently experiencing a deficiency in performance management from leadership.
Young employees require ongoing feedback rather than just annual performance evaluations Continuous assessment of their contributions is essential, especially as they make progress in developing new products Effective leadership involves recognizing and acknowledging these advancements to foster growth and responsibility in the workplace.
Traditionally, software quality is to depend on variety reason by Leadership, Training, and
Effective teamwork among developers is crucial for success, as highlighted by research from Hoegl & Gemuenden, Liang et al., and Henderson & Lee, which emphasizes the importance of interaction processes within a team Additionally, inadequate leadership skills can result in misjudging team performance, ultimately leading to ineffective performance appraisals.
The analysis of primary and secondary data, including interviews and surveys conducted among team members, reveals that the primary issue facing SMI is the low performance of the production team.
The effect map will be displayed below, showcasing the latest full download of the thesis For further inquiries, please contact via email at vbhtj mk gmail.com regarding the master's thesis.
CAUSE – EFFECT MAP
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CAUSE VALIDATION
An analysis utilizing a cause and effect tree, along with in-depth interviews from 12 respondents across four main groups and secondary data from the SMI sales and marketing department, reveals that ineffective performance appraisal is a key factor contributing to the low performance of the production team It is crucial for SMI to identify the primary factors that are driving the underperformance of the production team.
Ineffective leadership significantly impacts team performance, particularly when leaders are distant and fail to provide clear training and key performance indicators (KPIs) Young team members, lacking experience and training, struggle to guide their peers, contributing to overall low performance Additionally, a leader's tendency to always assert they are right can hinder team dynamics, as noted by Dotlich and Cairo Paton identifies four types of leadership, highlighting the distinction between successful and failed approaches, underscoring the importance of effective leadership in fostering a productive team environment.
First is the category of innovative specialist leaders
Second is the category of qualified leaders
Third is the category of normal leaders
Ineffective leaders are those who, despite being placed in charge of initially successful and viable companies, ultimately degrade these once-healthy organizations, leading them to the brink of bankruptcy and liquidation.
The Director of the Production team has confirmed that a lack of leadership was not a significant issue, as the team received training from higher management The Manager is responsible for providing this training, ensuring that even if leadership skills are lacking, the team is still well-equipped to succeed.
And in the future, the company will focus to build up the leadership management for leader This also impact to the performance of the team
A lack of effective leadership contributes to a diminished teamwork spirit, which in turn results in a high turnover rate among production teams, as evidenced by employee status data from 2016 to 2019 This decline in performance negatively impacts customer satisfaction, ultimately affecting sales revenue Furthermore, it has been noted that when salespeople underperform, sales managers often respond by increasing pressure in a negative manner.
As by Faraj and Sproull 15 “Teamwork is obviously important in software development In traditional development, the study showed a strong relationship between management of expertise and team performance
In a recent interview with Vu Tien Nhat, a member of the production team, insights were shared regarding the latest updates and resources available for downloading academic theses.
Young employees possess significant talent; however, the nature of IT work often results in limited face-to-face communication They tend to rely on technology tools and apps for interaction, which can lead to poor communication and ultimately impact product quality.
As by Faraj and Sproull 15 “Teamwork is obviously important in software development In traditional development, the study showed a strong relationship between management of expertise and team performance”
In the IT industry, team members have numerous ways to stay connected, utilizing communication apps and tools such as Skype, Zalo, and WhatsApp for effective collaboration.
Many individuals now favor digital communication over face-to-face interactions, leading to a decline in team spirit among production team members This disconnect arises from their reliance on technology for communication, which diminishes personal connections and collaboration within the team.
In the technology industry, employees often exhibit a straightforward nature and may communicate less frequently However, they effectively utilize online meetings and testing to stay updated on work progress Therefore, a low team spirit is not a significant factor contributing to the production team's underperformance.
At SMI, a new technology product is deemed a failure if it fails to meet market expectations and receives negative feedback from clients This reflects the highly competitive nature of the IT industry, where only a select few products make a significant impact When a product shows potential for development, management invests considerable time and resources; otherwise, it is classified as a failure.
The success of a technology product hinges on various factors, including convenience, availability, and unique advantages Currently, many competitive technology products in the market offer similar functions and features, which diminishes their appeal to investors and potential clients.
Therefore, from the perspective of Mr Nguyen Tuan Khai - Sale/Marketing Manager:
“The quality of products is unstable; I received many complaints from customer for that issue I lost many customers for that reason It reduced my sales revenue
And “failure product” has been impacted a negative result on sales performance of Sale team and the reputation of the company”
In SMI, a new technology product may be deemed a failure, leading to decisions on whether to continue re-testing, upgrade its functions, suspend, or completely halt its development based on the company's financial status and team capabilities Specifically, the case of Spynkal illustrates the significant investment of time, effort, and budget required for product development.
SMI for months but the product did not bring any value or profit for the team and the company as well
The failure product is also the consequence of lack of leadership as from Mr Le Huu Minh –
Developer who work for the team over 01 year said that:
The team's leader is currently too occupied to monitor each member's performance effectively, resulting in some team members underperforming This lack of leadership skills has led to delays in tracking client requests, causing the team to fall behind schedule.
And as mentioned before, Production team is a Department that have investment support from the
The low performance of SMI company is not primarily attributed to product failures, as production team members continue to receive their monthly salaries despite the lack of successful technology products.
RECOMMENDATION/ SOLUTIONS
Set up Effective KPI for Production team
Functional requirements: The benefits should exceed the cost
User requirements: The production team is small so we need to design solution it is must be easy to adapt and operate:
The KPI should fit with the present business policies & culture of the production team
Human resources, HR manager to work and cooperate with consultant organization
Arrange a meeting between the Development Manager, HR Manager, Consultant Company with related member to get idea and create the assessment outline for the team
The new KPI system should be specific and reachable for the team b Design restrictions
The project is expected to be completed within 6 months, as the fast-paced IT industry requires rapid adaptation to market changes.
SMI will combine with the HR consulting companies and the HR department to build a
KPI with reasonable service fee with full package and not exceed VND 100,000,000 VND
Each project will have specific Key Performance Indicators (KPIs) tailored for each group Teams are encouraged to develop multiple technology products based on their members' capabilities The product development process will adhere to a lifecycle model, but with a shorter incubation period to foster innovation and efficiency.
If a product yields excellent test results, the team will prioritize its development Consequently, each team will have multiple technology products to work on, rather than being limited to a single product.
This also helps to bring many advantages for assessing the capacity of team members through the products they contributed, so that KPI evaluation will be more effective d Benefits:
Build as much as technology product that the developer wish to and creating more opportunities for new products approach to the market
Create more creativity, productivity, the teamwork spirit of the developer
Save time and effort of the team in the progress of creating products
KPIs are clearly divided, easy to assess the ability of the member by their contribution to their individual product
Effective performance appraisal based on the evaluation of the contribution of each member of the team according to specific product that they have built
KPIs offer actionable information, as they are always measurable and quantifiable
The time and resources of different staff members in different functions are streamlined by automated scheduling in order to support team members
Developers have more insights and opportunities from their failures and achievements reported in order to improve their personal activities on their own
Managers and directors are able to see the general picture of the business from the information they have processed and the knowledge of the necessary reports
Training Team Leader
Provide training for potential leader to increase their interpersonal, leadership skill, performance evaluation skill to improve their team performance, teamwork spirit a Design requirements
Functional requirements: The benefits should exceed the cost
User requirements: The production team is small so we need to design solution it is must be easy to adapt and operate:
Apply for current and potential leader
Training manager to work and cooperate with training organization
The new training method must be tailored and accessible for the leaders of the production team, ensuring they can effectively implement it in their roles.
Training in the IT industry should be completed within one month due to the fast-paced nature of the sector, which requires rapid adaptation to market changes Leaders often lack the time for lengthy training programs, making concise and efficient training essential.
The company is committed to enhancing the skills of potential leaders through comprehensive external and internal training programs With a dedicated annual training budget, the firm will collaborate closely with the training department to maximize the effectiveness of these initiatives.
The training is indoor training for 08 leaders of the team with full package as below:
No Description Estimating Cost VND
1 Training with full certification ( 4 days) – 04 hours/ day 30,000,000
2 Catering, lunch, tea break and activities 4,000,000
Improve efficiency of the workforce
Improve ability to succeed under pressure
Improve charm and seriousness in business operations
Growth in faith in your team
Improve listening and communication skills
Increase knowledge of the nature of the workforce
Dependable, efficient and knowledgeable workforce
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ORGANIZATION OF ACTIONS
To enhance performance management, decision-makers should prioritize the implementation of Key Performance Indicators (KPIs) and invest in training future leaders Directors and managers must promptly assess staff expertise and collaboratively develop a comprehensive activity plan that outlines associated timelines and costs.
Task Department Jun July Aug Sep Oct Nov Dec
Research & Collect the information about current KPI system for Production team
HR Dept, Production Manager, Team member
Build questionnaire/criteria, conduct survey, collect data
Testing and receive feedback from related department, adjustment
Appraisal and make the improvement
BOD, HR, Production Manager Sourcing Training Organization HR,
List out potential leader for training
Organize the training for potential leader
Receive feedback for the Trainer, Leader
Evaluate the effective of the training and make the improvement for the next training
BOD, HR, Production Manager tot nghiep down load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
CONCLUSION
A technology product demands flexibility and consistency, which must be highlighted in each offering from the company For nearly three years, SMI has successfully met its fundamental objectives and upheld product quality under its current management approach However, SMI now needs to revise its strategy for the Production team to sustain their performance levels.
Improving team performance through proposed solutions will lead to significant changes in the production team, including enhanced leadership skills, a stronger teamwork spirit, and an increased number of new products entering the technology market An effective evaluation system will also reduce job vacancies and recruitment costs, helping to stabilize personnel and allowing the production team to concentrate on job development and new innovations.
To maintain a long-term competitive advantage, companies like SMI must prioritize the development of innovative and global technology products This focus not only attracts investment but also enhances the company's reputation, increases sales revenue, and helps achieve management's goals for the next decade.
SUPPORTING INFORMATION
Research objectives: To explore and understand the reason why production has low performance results in 03 recent years, and propose solutions to solve it
No Key sessions Objectives Timing
To understand the current situation of business activities in SMI Production Department 2-3 minutes
Explore the cause of low performance results and define the main reason
To explore the main reason that lead to low
3 The solution To find out solution 5-10 minutes
1 Could you please introduce about yourself (your name, age, working experience) x x x x
2 Is SMI has a team to build up the own apps or services, product and deliver to the potential global company and client or not? x x x x
3 Could you share your opinion about sale revenue of
4 Could you share the reason why Sale team could not sell the product recently? x x x x
5 Could you share the reason why the client refuse to buy a product of Production team x x x x
Low performance results can be attributed to several key factors Firstly, a lack of clear goals and objectives can hinder progress, as individuals may not know what they are working towards Additionally, inadequate resources and support can lead to frustration and decreased motivation Poor communication within teams can also contribute to misunderstandings and inefficiencies Lastly, insufficient training and development opportunities can prevent individuals from reaching their full potential Addressing these issues is crucial for improving performance outcomes.
7 In your point of view, what is the most important causes low team spirit? Why do you think so
9 What are solutions that the company has taken to improve the performance of employee x x x x
9 What are your opinions about the effectiveness of above solutions? Could you share any alternative you think should be taken to solve this problem? x x x x
Determining the best solution among the ten options requires careful consideration of their effectiveness and relevance Each solution presents unique advantages that can be evaluated based on specific criteria.
Time of interview: 9:00, 19 Dec 2019 in HCMC
Duration for each interviewer: 10-20 minutes
Interviewee: Mr Nguyen Tuan Khai
Title: Sales & Marketing Manager in SMI Technology
Working experience period: more than 8 years’ experience in technology industry
Status: currently working for SMI Company
Duong Tran An An Good morning Could you introduce something about yourself and the position you are working in this company
Nguyen Tuan Khai has over eight years of experience, including five years as a developer and three years as a Sales & Marketing Manager at SMI He has been with the company since its inception in 2016, starting his career as a salesman.
Duong Tran An An: over 3 years with a lot of experience Do you think that SMI product is potential or not?
Nguyen Tuan Khai expresses confidence in the promising future of SMI products, highlighting significant investments in offerings such as QA Symphony, which has attracted over $40 million in funding.
Million USD and we are in the process of continuing to build up the new product to call for investment
Duong Tran An An: Sound great! Could you please share your opinion about sales results of SMI
Since 2017, Nguyen Tuan Khai has observed a significant decline in sales performance, prompting a thorough investigation to identify the root causes and address the issues at hand.
The quality of products is unstable; I received many complaints from customer for that issue I lost many customers for that reason It reduced my sales revenue
And “failure product” has been impacted a negative result on sales performance of Sale team and the reputation of the company
The SMI production team has struggled to achieve high revenue from 2017 to the present due to various challenges.
Nguyen Tuan Khai believes that the inability to sell the new product stems from its inconsistent quality and lack of a unique selling proposition within the same price range as competitors As a result, the sales team struggles to create a strong impression or effectively communicate the true value of the new product or service to customers.
A high-quality product must begin with a deep understanding of customer needs Having transitioned from a developer to a salesman, I recognize the importance of this insight Initially, I was overconfident, believing that testing alone would suffice to grasp all aspects of the new product.
Duong Tran An An: What are solutions that the company has taken to improve the situation Mr
Nguyen Tuan Khai, an expert in investor management at SMI, emphasizes the importance of interpersonal skills training to improve consulting and deal-closing abilities However, I believe our boss's approach may not be fully effective, as it fails to address the differing needs of our sales team, which consists of both fresh and experienced members While the fresh salespeople are eager to learn, the experienced ones, like myself, may find the training less relevant.
Duong Tran An An: What are your opinions about the effectiveness of the solution? Could you share any alternative you think should be taken to solve this problem?
Nguyen Tuấn Khải believes that the majority of SMI consultants are seasoned sales professionals from the IT sector or former IT personnel To enhance product quality, it is essential to establish a disciplined KPI that encourages them to practice product functions daily.
Interviewee: Mr Cao Minh Nhat
Title: Director of SMI Technology
Status: currently working for SMI company
Duong Tran An An: It is my great honor to be here in your office for this interview Please start by talking something about yourself sir!
Cao Minh Nhat: You’re welcome guy! My name is Cao Minh Nhat I am Managing director of
Prodution Team I have been worked for SMI 10 years from manager to now
Duong Tran An An: Could you tell me the current situation of the production team
Cao Minh Nhat: Yes, of course In recently we have no special product to release to the market
Innovation and widespread adoption of technology products are essential to satisfy customer needs However, over the past three years, the Production department has failed to deliver new products that achieve the high performance and results of previous offerings.
Product quality is crucial for ensuring customer satisfaction and driving company success When product quality is consistent and aligns with client needs, it empowers the sales and marketing teams to confidently promote these products Furthermore, maintaining stable quality leads to enhanced customer satisfaction, while the current challenges with product failures hinder our ability to connect with clients effectively.
Duong Tran An An noted that the sales reports indicated Ho Chi Minh's sales results fell short of expectations He inquired about the reasons behind the inability to achieve the desired sales figures.
Cao Minh Nhat attributes the results to several interconnected factors, including low performance, a lack of updated technology, product failures, high turnover rates among young employees, the absence of key performance indicators (KPIs), and employee dissatisfaction with performance appraisals.
Duong Tran An An: Which solutions that you and the board applied to fix these problem?
Cao Minh Nhat emphasizes the importance of identifying and addressing the root causes of various issues The team is committed to enhancing performance management specifically for the production team to drive improvements.
Duong Tran An An: Have you ever think about other alternative solution?