62% of business leaders focus on optimizing operations

“Vietnam is a rising star in the transformation race,” said Ms. Tieu Yen Trinh, General Director of Talentnet Human Resources Consulting Company, when announcing the first Report on the Status of Enterprise Transformation in Vietnam.

Transformation is an important strategy in the race for sustainability. But how is the story of business transformation taking place, especially in Vietnam? What is the basis for leaders to continue developing transformation strategies for businesses?

For the first time, statistics and the foundation of business transformation were published by Talentnet in the report on the Status of Business Transformation in Vietnam at the event The Makeover 2024 taking place on October 15.

Ms. Tieu Yen Trinh, General Director of Talentnet Human Resources Consulting Company, shared: “When transformation becomes a popular topic, but at the same time very difficult to define, Talentnet wants to provide more specific perspectives on this aspect of businesses in Vietnam, so that businesses can refer to and find effective transformation solutions.”

Business Transformation in Vietnam: New Beginnings but Full of Potential

According to the Vietnamese Enterprise Transformation Report conducted by Talentnet, 41% of Vietnamese enterprises have started to transform in the past 3 years, 25% lower than the transformation rate of foreign enterprises (66%). Accordingly, strategic goals and internal development orientation are the leading factors driving enterprise transformation, accounting for 40% compared to other external factors such as the development of the general economy, customer demand or market changes.

According to the report, the three areas that Vietnamese businesses focus on transformation include: optimizing operational processes (62.5%), organizational structure and workforce (50%), as well as improving customer experience - CX (47.9%). These are key factors that help them overcome challenges and achieve positive results.

Ms. Tieu Yen Trinh shared that the most sustainable value of the business is customer satisfaction and employee happiness .

One notable point is that despite being late to the game, 46% of Vietnamese businesses are satisfied with the results and quality of their transformation, much higher than the 25% of global businesses. This shows the confidence and optimism of leaders in Vietnam in leading businesses on the transformation journey.

However, compared to global enterprises, Vietnamese enterprises pay more attention to technology tools and infrastructure as well as human resource skills to transform.

Middle management is a key “link” in transformation.

A notable point of the report pointed out the importance of investing in human resources, especially middle management, with 55.6% of businesses "hunting" for talent in this management class. Accordingly, middle management is assessed to play a key role in leading businesses through transition stages. They not only need to have a strategic vision, understand the business context but also be able to effectively lead the executive team below.

At the same time, the trend of hiring temporary workforce (GIG workforce) is also increasing. According to the report, 40% of businesses choose to hire an interim management advisor to promote transformation initiatives between teams. The characteristic of this group of advisors is that they need to have experience in managing transformation projects, while understanding the specifics of corporate culture in Vietnam. This not only helps increase flexibility but is also a strategic move to accelerate the transformation process quickly and effectively.

Many Vietnamese businesses believe that operational success depends on middle management.

In the process of business transformation, the role of HRBP (Human Resource Business Partner) is being re-evaluated by leaders with a new perspective. No longer simply a department supporting human resource management, HRBP now plays a more strategic role, contributing significantly to the success of the transformation process. If the leader is the driver, then HRBP is the one holding the map with the destination being the common goal. Deeply understanding the business's operations, the industry's market, the challenges in development... helps HRBP understand the problem to come up with effective solutions for the business.

Although nearly half of Vietnamese businesses are currently satisfied with the transformation process, many problems remain for the future. According to the report, for the group that has not yet transformed, up to 50% of Vietnamese businesses currently do not have a clear plan for transformation initiatives.

In addition to future indicators, Ms. Tieu Yen Trinh also gave some useful suggestions for Vietnamese businesses in the process of sustainable transformation.

Ms. Tieu Yen Trinh also proposed some recommendations and aimed to support businesses in optimizing the transformation process in the current context: “An effective transformation strategy must come from the purpose and needs of the business. But in each business, this is a different variable. So I think the secret is to maintain consistency in purpose, but be flexible in approach”.

Ms. Yen Trinh added that once the purpose is clearly defined, businesses can apply the 3C rule - Communicate, Collaborate, Commit: Communicate to unify the internal vision of the transformation goal, form collaborative relationships inside and outside the company to promote transformation and always commit to the set goals.

Business transformation is no longer a story of the future, but has become a core element in the sustainable development strategy of Vietnamese enterprises. With confidence and strategic vision, Vietnamese enterprises are gradually asserting their position, promising to create outstanding marks in the international market.

Source: https://baodautu.vn/62-lanh-dao-doanh-nghiep-tap-trung-toi-uu-hoa-van-hanh-d227670.html