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

EXCELLENT EDUCATIONAL PROGRAM ASSIGNMENT MANAGERIAL ACCOUNTING FAST SOFTWARE COMPANY Student’s name: Le Thuy Trang, Pham Ky Duyen Class: Auditing AEP 61B Supervisor: Asso... 2 LIST

EXCELLENT EDUCATIONAL PROGRAM

ASSIGNMENT MANAGERIAL ACCOUNTING

FAST SOFTWARE COMPANY

Student’s name: Le Thuy Trang, Pham Ky Duyen Class: Auditing AEP 61B

Supervisor: Asso Prof Le Kim Ngoc

Ha Noi , October 2022

1

TABLE OF CONTENTS

LIST OF ABBREVIATIONS 2

PART 1 COMPANY INTRODUCTION 3

1 Overview of company 3

1.1 Company general information 3

1.2 Business activities 3

1.3 Products 3

1.4 Mission and Core values 3

2 Strategy and analysis of FAST’s business strategy 4

2.1 Fast’s strategy 4

2.2 Current situation of implementing FAST's business strategy 4

2.3 Overview of FAST's operational objectives 4

2.4 FAST's strategic implementation plan 5

PART 2 BUILDING THE COMPANY'S STRATEGY MAP AND BALANCED SCORECARD 6 2.1 The purpose of building a balanced scorecard to serve the implementation of the company's strategy 6

2.2 Building a balanced scorecard to serve the implementation of the company’s strategy 6

2.2.1 Building a strategy map 6

2.2.2 Building a balanced scorecard 8

PART 3: CONCLUSION 11

REFERENCES 11

2

LIST OF ABBREVIATIONS

BSC Balanced Scorecard FAST Fast Software Company R&D Research and Development

PART 1 COMPANY INTRODUCTION

1 Overview of company

• Company name: Công ty C ph n Ph n m m Qu n lý Doanh nghi p ổ ầ ầ ề ả ệ

• English name: Fast Software Company

• Trade name: FAST

• Founded year: 11-06-1997

• Capital: 20,000,000,000 (Twenty billion dong)

• Business Registration Certificate: No 0100727825 issued by Department of Planning and Investment in Hanoi on18th June 1997, last edited on 30th May

2019

• Tax code: 0100727825 Represented by: Mr Phan Quốc Khánh

• Website: www.fast.com.vn

• Email: info@fast.com.vn

• Offices: Ha Noi, Ho Chi Minh, Da Nang

1.2 Business activities

Develop, consult and implement applications of information systems supporting

in business operation and management based on information technology

1.3 Products

• Solutions for large and medium-sized businesses: Fast Business Online (ERP), Fast DMS Online, Fast CRM Online, Fast HRM Online

• Accounting software for small and medium-sized businesses: Fast Accounting, Fast Accounting Online, Fast Accounting Online for Bookkeepers

• Solution for electronic invoice: Fast e-Invoice

• Accounting software for training: Fast Accounting Online for Education

• Customization based on specific requirements

1.4 Mission and Core values

Missions

• Developing and consulting software applications, helping businesses increase productivity, effective management

• Develop a professional career, promote the potential of each individual, and create a happy life Contribute to the company, society, contribute to the country

Core values

• Hard-working, Focused and Persistently

• Learning, Innovation & Creativity

• Teamwork, Together & Sharing

Vision

• FAST is a company with sustainable development, a trusted supplier of management solutions based on IT platform, responsible to the community, contributing to the country, making all efforts to develop employees’ professional career and lead a happy life

2 Strategy and analysis of FAST’s business strategy

2.1 Fast’s strategy

Operational and business perspective: "Long-term, reliable partner" Use a focused strategy to compete Concretize the focus strategy with "Suitable solution – Attentive service"

2.2 Current situation of implementing FAST's business strategy

To implement the motto "Long-term, reliable partner", FAST conducts the following activities:

• As a long-term partner of customers: Focus on exploiting the customer market group as SMEs Producing and providing "suitable" product lines, meeting the development and expansion requirements of customers, accompanied by

"thoughtful" services for customers At the same time, focus on activities to gain

a deep understanding of the needs of customers in the selected target market segment

• Be a long-term partner of employees: Focus on the task of raising (%)

"Employee satisfaction" in terms of income; on welfare; on leadership; on the culture of behavior; on promotion opportunities

• As a long-term partner of shareholders, suppliers: FAST strives to act for stable and sustainable development Committed to accompanying development with shareholders, with suppliers

• Being a long-term partner of the community, the country, society: Building an organization that is responsible for the community, society and the country

• Executive strategy: FAST chooses the operating strategy as targeted management (MBO)

2.3 Overview of FAST's operational objectives

• Financial objectives

Business growth: Up 15% - 17%/year

Collection: Increase 11% - 12%/year

Contract balance: 80%

Profit: up 16%/year

• Customer objectives

Improve the quality of "Suitable solutions and products"

Improve the quality of "Attentive Service", holding existing customers (90% of existing customers continue to use Service Products)

• Internal process objectives

Building accounting and financial software specific to the industry Immediately update the amendments and supplements to the policy regime according to the new state regulations for existing software

Building a good working environment, actively implementing social activity programs, and building a "thoughtful" culture

• Objectives of learning and development

20% of employees are company specialists out of the total number of employees 70% of employees are upgraded

Motivate employees to take initiatives and improvements (Kizen's FAST)

2.4 FAST's strategic implementation plan

• In the field of R&D research and development

The main technology platform of the product is the Microsoft platform, which runs in a Microsoft Windows environment

Develop suitable products and solutions according to the scale and type of business (Business Templates) Build 3 more Templates Research and develop software on advanced technologies (Web-Base), meeting the needs of customers in the future

• In sales

Focus on reaching and finding customers in target customer segments Introduction, the difference of FAST: The right solution Considerate, dedicated service –

Advising customers to choose the "Right Solution" according to the scale and type of business; Choose the right solution between the available product and modify it as required

• In the field of applied consulting

Consulting customers to use high-quality software

Improve the customer satisfaction rate of over 80% for the quality of application consulting services to 90%

• In the field of customer support and care

Special customers, large customers, the company's board of directors will take the time

to visit and take care of them

The branch board must visit and take care of at least 3 strategic customers

Improve the customer satisfaction rate of over 80% for the quality of warranty and maintenance services to 90%

• In the field of human resources

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Strengthen the level of authorization for subordinates to decide on solutions suitable to the actual situation

Each branch of the department must improve the ratio of experts to employees to meet the development needs of the company and the quality of customer service

• In the field of executive management

The strategy of running the work is "Management by goals"

Step by step, apply a Balanced Scorecard

• Building a culture of "attentive and dedicated service"

Build the company into a place for employees to trust and have the desire to stick around for a long time

Build a culture of "understanding" each other, "caring" for each other

PART 2 BUILDING THE COMPANY'S STRATEGY MAP AND

BALANCED SCORECARD

2.1 The purpose of building a balanced scorecard to serve the implementation of the company's strategy

- Evaluate the performance of the company in a more comprehensive way

- Connect company’s strategy with employee activities

- Integrate strategic objectives with resource allocation processes

2.2 Building a balanced scorecard to serve the implementation of the company’s strategy

On the basis of considering the perspective, mission, core values, strategies and strategic goals of FAST company classified according to 4 aspects of BSC: Finance, Customer, Internal, Learning and Growth, we proceed to build a BSC for FAST company with the following contents:

2.2.1 Building a strategy map

a Set of strategic goals

On the basis of FAST's strategic goals, we gather according to 4 perspectives of BSC

as follows:

Table 2.2.1a Strategic goals of FAST

Finance

Increase profit Increase revenue Increase employee income Increase contract Product and service quality

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Customer Market

Brand

Internal

Operating process Customer management Improvement process Social

Learning and Growth

Human Information Organization

b Building a balanced scorecard

FAST’s strategy map illustrating cause-and-effect relationship between strategic goals and specific goals of each aspect: Finance, Customers, Internal Business Processes, Learning and Growth Combining theory and references from the company, we have built a system of metrics illustrated in the following table

Table 2.2.1b Strategy map of FAST

Strategy - Mission - Vision Core values – Develop and improve the value of the company

Operating process Customer

management

Improvement process

Social process

Finance

Increase

profit

Increase revenue

Increase employee income

Increase contract

Customer

Suitable

products

and

solutions

Increase customers

Improve quality, long-term partner

Develop customers

Enhance brand Dedicated

service

2.2.2 Building a balanced scorecard

Producing suitable

products and solutions

Strategic customer insights

Continue improve and complete the organization

Satisfied internal customers

Reduce time to

provide products

and services

Legal social activities Update products

quickly and timely

Perspectives Objective Measures Targets Initiatives

Finance

Increase profit % Increase profit 20% Cost control

program Increase

revenue

% Increase in revenue 30%

Increase

employee

income % of employee income increase 10%

Cost control program

Increase

contract

% Increase in contract 15%

Customer

Suitable

products and

solutions % of satisfied customers 5%

Customer satisfaction survey Dedicated

service

% of satisfied customers after-sales 5%

Internal

Learning

and

Growth

Enhancing

leadership

skills

Improve core competencies for employees

Investment in infrastructure and technology

Software development for management

Understanding and caring for internal customers

Perspectives Objective Measures Targets Initiatives

Internal

Operating

process

Producing suitable products and

solutions

Number of products for specific specialties

3

Produce specialized software

Reduce time to provide products and services

Average contract implementation time

5%

Review processes

Customer

management

Strategic customer insights

% Sales of customers with full info on CRM and survey documents

50%

Emphasize CRM system, upgrade E-Teamwork software and update info

Continue improve Ratio of applied Launch a

Increase

customers

The number of strategic customers increased 50% Give gifts to

customers

Improve

quality,

long-term partner

% of customers re-signing the contract 90%

Update government policy for customers Develop

customers

Number of old customers recommending products to new customers

10% Give gifts to customers Enhance brand Number of seminars, articles on websites,

accounting journals, accounting forums,

economic

30 Brand promotion program

Improvement

process

and complete the organization

ideas/total employees

25% campaign

Social process

Satisfied internal customers

% of satisfied employees 95%

Customer satisfaction survey

Legal social activities

Number of participating social activities

5%

Increase social activities

Learning and

Growth Human

Enhancing leadership skills

% of managers sent to study executive management

20%

Training program

to improve skills for leaders

Improve core competencies for employees

% of trained senior professionals/

number of employees

3%

Open professional skills training classes

Information

Investment in infrastructure, technology

Number of newly invested databases

02

Upgrade information technology system Software

development for management

Number of newly produced functions

5%

Upgrade E-Teamwork

Organization Understanding

and caring for internal customers

Number of exchanges between director and employee

5%

Internal thoughtfulness

PART 3: CONCLUSION

3.1 Summarize the important contents of the company's Balanced Scorecard

The Balanced Scorecard provides an effective structure for creating and conveying company strategy A Strategy Map depicts the organization's strategy and assists managers in visualizing, identifying, and comprehending cause-and-effect links between various strategic objectives The Strategy Map guarantees that performance outcomes and key performance drivers are recognized to generate a comprehensive picture of the strategy

The Balanced Scorecard method assists organizations in developing key performance indicators (KPIs) for their various strategic goals This ensures that businesses are measuring what is important The BSC approach provides high-quality management information as well as data-driven insight to help decision-makers Companies may use the Balanced Scorecard to better match their organizational structure with strategic goals Businesses must guarantee that all business units and support operations are working toward the same goals to successfully execute any strategy This may be accomplished by cascading the BSC into those business areas and connecting strategy and operations

3.2 Analysis of challenges in Balanced Scorecard design and implementation

Poorly Defined Metrics

Metrics must be relevant and easy to understand They should be represented by clearly understandable visual cues Furthermore, measurements must be gathered at the optimal frequency for decision making and formulated in such a manner that the measurement may be used uniformly across the company, even if their performance objectives differ (and they should) People who wish to evade accountability for results may criticize a system with poor or inconsistently specified measurements

Lack of Efficient Data Collection and Reporting

One of the key reasons that firms overemphasize financial metrics at the cost of other critical operating factors is that tools for collecting and reporting financial indicators already exist Companies that plan of time to determine the critical few metrics and invest resources to automate data collection and subsequent reporting tend

to get favorable results Unfortunately, most firms will not gather metrics data if it takes too much time and effort That is why it is critical to select key performance indicators so that you can be certain that your investment in metrics is focused on the information that will be most useful in enhancing organizational performance