Aspects of the Km Star Model Source: According to Nirmal Pal and Associates

- Customer perspective: When selecting metrics for the customer perspective,

- Process Aspect: The business must identify the processes in

The KM Star model is basically used to evaluate performance. Therefore, to apply the performance evaluation model for responsibility center management, managers need to link management responsibilities at responsibility centers with aspects of the KM Star model. For example:

- To evaluate the management performance of cost center managers, in addition to evaluating controllable costs between budget and actual (financial aspect), managers need to be evaluated for their management responsibilities in terms of sustainability, customers, processes and awareness:

+ Sustainability aspect: Talking about sustainability means talking about 3 issues: economic, environmental and social. The responsibility of managing these 3 issues needs to be clarified to achieve sustainability. The responsibility of financial management for the cost center has been shown in the assessment of controllable costs between actual and estimated. The responsibility of environmental management and responsibility to society is assessed through the responsibility of protecting the environment (minimizing environmental impacts), improving the quality of life, improving working conditions... in the process of performing work compared to the plan, standards (requirements) set within the controllable scope of the administrator.

+ Customer aspect: Customer satisfaction is an extremely important factor related to the production and business activities of the unit. Evaluating management responsibility from the customer perspective is to evaluate responsibility in minimizing the number of customers complaining about product and service quality during the work process compared to the plan, standards (requirements) set within the controllable scope of the administrator.

+ Process aspect: evaluate responsibility in improving procedures, processes, and improving work quality during implementation compared to plans and standards (requirements) set within the scope that the administrator can control.

+ Cognitive aspect: assess the responsibility to raise awareness, improve qualifications; comply with discipline, rules and regulations at the unit; improve the material and spiritual life of workers during the implementation process compared to the plan,

standards (requirements) set. Of course, the issues mentioned above must all be within the controllable scope of the cost center manager.

Similarly, for the evaluation of management performance of managers in other responsibility centers, in addition to evaluating revenue, profit, etc. that can be controlled between plan and reality (financial aspect), managers need to be evaluated for management responsibility on the aspects of sustainability, customers, processes and perceptions that the center manager can control.

For the KM Star model to operate and be effective, businesses need to fulfill the following requirements:

- The process of applying KM Star to evaluate the management performance of the unit must be issued in a specific, clear and transparent manner.

- Responsibility centers must develop and issue specific development strategies and action plans that are appropriate for their units and the development orientation of the enterprise. These strategies and plans must be widely and clearly announced to all employees in the unit for implementation. Managers and employees must link work goals with the announced mission of the unit. At the same time, the proposed strategies and plans must clearly state the implementation time and budget, resources, etc. to achieve the established goals. In addition, managers must spend more time discussing and reviewing their unit's strategies.

- Each responsibility center must develop a set of standard measures suitable to the unit's characteristics to evaluate the center's management performance in 5 aspects: awareness, process, customer, sustainability and finance.

- Be consistent with this model and require all employees and workers in the unit to strictly follow the evaluation process according to KM Star. Bring all work in the unit together, agree to follow the strategic direction and plan set out.

As presented above, one of the important contents in

Applying the KM Star model is building a strategic map. Based on the mission

mission, vision, strategic goals, responsibility centers in the business

Enterprises must build for themselves a specific strategic map corresponding to the 5 aspects of KM Star to serve management work and evaluate management responsibilities.

Sample general strategy map as follows (Page 45)

It can be said that the KM Star model provides a comprehensive assessment, in line with the trend of integration and sustainable development. The assessment of the general performance and the specific management performance of a unit or department is not only based on short-term financial aspects but also on non-financial factors (environment, society, etc.). The profits earned when completing a hydropower construction project may be insignificant compared to the cost of compensation if a dam breaks. More harmfully, if the problem causes serious harm to the environment and society, the business may have to stop or suspend operations. On the contrary, in addition to financial strategies, if the business takes good care of the environment and society, the reputation of the unit can increase and future profits will certainly be more favorable.

Therefore, the KM Star model is superior to other previous models such as the BSC (Balanced Scorecard) model of Robert Kaplan & David Norton or the BT (Balanced Triad) model of Karl-Erik Sveiby because it is a scientific integration of both models. With the trend of integration and sustainable development, this model will certainly be widely applied by more and more organizations and businesses.

1.2.6. Organizing the responsibility accounting reporting system

1.2.6.1. Objectives of responsibility accounting reports

The final product of all accounting systems is accounting reports. Responsibility accounting reports are the products of responsibility accounting. They are reports on performance for each level of responsibility according to the organization and management system of the enterprise. This reporting system records the implementation of goals and compares them with the assigned goals of each department in the unit. The system then summarizes the implementation of goals of lower levels to higher levels, and so on until it summarizes the implementation of goals of the entire enterprise, compares them with the goals of the entire enterprise, and creates performance reports for each department and the entire enterprise. The difference between the implementation information and the estimated goals will help managers evaluate the results and performance of departmental management levels. In addition, in addition to reports on financial indicators, it is necessary to develop additional non-financial reports to comprehensively evaluate the achievements of departments, meeting the trend of integration and sustainable development.

BC results of lower level responsibility centers

Report the results of higher level responsibility centers

Full report

Figure 1-5: Information flow of responsibility report by management level.

Through the diagram above, we see that the responsibility accounting reporting system provides a flow of information from lower to higher levels. Performance reports are used to communicate and provide information about the activities of each department and the entire enterprise.

1.2.6.2. Characteristics of responsibility accounting reports

Responsibility accounting report is a report reflecting the results of financial indicators.

Financial and non-financial controllability can be achieved primarily at each responsibility center.

responsibility within a certain period of time according to actual results and according to estimates. At the same time, it also indicates the differences between actual results and estimates according to each indicator conveyed in the report suitable for each type of responsibility center. Thus, the responsibility accounting report focuses on the implementation of estimates and the analysis of differences. In order to be able to compare and evaluate these differences appropriately and correctly, the estimates in the responsibility accounting report are flexible estimates to provide a standard for comparison and evaluation of the implementation of revenue, cost and profit estimates.

According to RS Kaplan, a system has the following basic characteristics:

planning report

Accountability usually has

First , the level of detail of the information in the reports will be different for different management levels. Accordingly, the lower the management level, the more detailed the reporting indicators will be ; the total results from the report of one management level will be reported to the next higher management level. Data is synthesized, filtered and condensed when information is reported to higher management levels, or in other words, the level of detail of the indicators will decrease at higher management levels.