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Business leaders told to step up game
The top management tier in Vietnamese businesses, including chief executive officers and boards of directors , should increase their professionalism and not treat these as ceremonial positions, experts said at a workshop on November 20.
In both positions, Vietnamese business enterprises were lagging behind international norms, they said.
Around 200 managers gathered at the workshop to discuss managerial issues in business organisations in the context of global integration, and to devise tools for owners and managers to manage and operate business effectively.
The "CEO&Board of Directors" was the first such workshop to be organised in Viet Nam by the Viet Nam Marketing&Management Institute (VMI).
The workshop discussed principles of organisational management that are pertinent to the current situation in Viet Nam, and focused on ways to ensure the performance of CEOs and BODs become more professional.
Evaluating the performance of CEOs and BODs in Viet Nam based annual reports of the Work Bank and the International Finance Corporation, Dr Pham Tri Hung from the Indoshine Counsel said, "The management teams in Vietnamese enterprises still do not abide by international principles. Especially, we have a lot of gaps in the legal framework and the operation of enterprises."
Dr. Sunder Venkatesh from Asian Institute of Technology, Thailand, emphasised the relationship between BODs, compensation and rewards system in Asian companies.
"It is important to consider the CEO, president and members of BODs, and the Controlling Board as the most important positions with specific job descriptions, responsibilities, clear compensation and reward systems," Venkatesh said.
In a study of the top 10 companies by market capitalisation in five ASEAN countries, Venkatesh found the salary of a director was over US$500,000 per year.
"Good directors are not cheap," he said, adding it was difficult to find qualified directors in Viet Nam.
Venkatesh’s presentation also focused on how to nominate, select and evaluate a good BODs that really works on behalf of mutual benefits of organisation.
He suggested that good BODs must satisfy four desirable characteristics: knowledge and experience of the industry including legal and regulatory aspects; independence from CEO and Management to protect shareholders; commitment; and cohesiveness.
From a managerial and legal perspective, management experts Nguyen Trung Thang and Hung also discussed professionalism and specialisation in operating, strategic planning, assigning tasks and awarding compensation.
They also provided practical recommendations on how to professionalise the performance of CEOs and presidents, as well as BOD members.
They said the performances of these top managerial officials should be evaluated regularly, the composition of BODs should change along with the change in business strategies and their selection should be a collective, fair and transparent process.
"The professionalism of CEOs&BODs will be reflected in the efficiency and effectiveness of the business organisation," they said.
The VMI introduced "CEO&BODs", a handbook on modern corporate management authored by Thang and Hung, at the workshop.
The book aimed provide knowledge and experience that would help Vietnamese enterprises meet global standards of modern business management, the authors said.
After this workshop, VMI will organise the "The Leadership and Management in Viet Nam Workshop" on December 18 where speakers and invited CEOs from leading Vietnamese companies will discuss with participants leadership and management issues in the country.
VMI, an affiliate of the Viet Nam Marketing Association, is a non-profit research and training institute aiming to become national leader in development research and application of modern marketing and management principles.
vietnamnet, vietnamplus
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