The Transformation Journey: From Traditional Management To A More Flexible And Effective Company

My name is Nguyen Ngoc Thinh, CEO of Baker Baking Food Corporation, and we are the brand name Baki Food.

Previously, I managed the company in a traditional way: the boss assigned tasks, and employees carried them out; each person was responsible for a specific part of the work and was mainly concerned with their own tasks.

However, the more I did this, the more tired I felt, and I found something un enjoyable about going to work. I had to constantly assign tasks, remind, control, and sometimes even pressure. Meanwhile, the employees lacked initiative, lacked motivation, and it was hard to find joy in the work.

I started to ask myself: If the boss is unhappy, then the employees are also unhappy, so what’s the point of building a company together?

From there, I decided to change. I wanted to build an organization where every workday could truly be a joyful day; where people could be proactive, grow, and be recognized, and together create results.

As a CEO, I used to have many traditional management perspectives. I was very much concerned about information disclosure, wondering if it was appropriate to share revenue, profit, and the actual state of the company with employees. Previously, I always thought that such information should only be for leaders.

Previously, tasks were assigned to individuals, and each person was responsible for their own work. Now, the entire team shares a common goal, proactively taking on tasks, dividing responsibilities, and supporting each other to achieve the goal. We use a Kanban board and hold a 15-minute initial meeting to update progress, identify bottlenecks, and work together to resolve them.

Previously, each department had its own individual goals. The production department was only concerned with completing the orders, while the packaging department was only concerned with packing the orders, and the shipping department was responsible for the delivery. Now, all are aligned towards a common goal: only when the product is fully delivered to the customer, on time, and of the right quality, the entire team’s work is truly completed.

The evaluation and compensation methods have also changed. Previously, salaries were almost fixed and varied among employees, without a truly clear standard. Now, employee performance is evaluated after each season based on actual results, the level of work ownership, and the value that the employee brings, corresponding to the SHU–HA–RI framework.

From being the leader who assigns tasks, reminds employees of deadlines, and gives orders, employees have gradually taken on tasks proactively, cooperated, and divided the work among themselves.

More importantly, we not only do it together but also share the results. When the company makes profits, everyone gets to share the benefits. When the company faces difficulties, the entire team looks at it together, finds solutions, and supports each other to overcome it.

After three years of transformation, the changes at Baki are not just in how people work, but are reflected in very specific results. Many important company metrics have increased threefold or fourfold compared to before.

Three years ago, Baki’s workshop was only about 400 m2; now the total size has grown to over 2,500 m2. The number of customers has increased threefold. Previously, we could only make about 5,000 cakes per day, but now we achieve about 40,000 cakes per day thanks to a larger scale, more equipment, and a more skilled team.

Revenue during the two main seasons, the Lunar New Year and the Lunar Festival, has almost doubled every year. Compared to three years ago, revenue has increased fourfold each season. Profit has also increased significantly, not only because of higher revenue but also because the company has continuously improved its processes and managed to optimize costs.

What I find most meaningful is that while the company’s size has grown rapidly, the number of permanent employees has not increased. Previously, there were over 30 temporary staff; now we have 27 permanent employees. During the busy season, the number of temporary workers has increased more than before, but the permanent team is now capable of organizing and managing this workforce more effectively.

A permanent employee is no longer just someone who follows instructions and completes their tasks. They gradually develop the ability to manage a team, guide work, control quality, and take responsibility for the common goals. This shows that Baki’s growth is not only from the factory or the machines, but also from the maturity of the people.

The biggest change is that employees are now much more proactive. They can take initiative, carry out tasks independently, collaborate with their teammates, and stay focused on the common goals without waiting for leaders to assign small tasks.

When given the initiative, everyone progresses faster. They not only follow instructions but also start to think, make decisions, and take responsibility for their work. The work environment becomes more pleasant and open. Each employee is allowed to express their perspective, develop their strengths, be themselves, and feel that their work has meaning. Previously, employees’ income was mainly from salary and overtime pay. Now, income is generated from actual skills and the company’s profit-sharing benefits. On average, each employee earns a total income equivalent to 18–20 months’ salary per year, nearly double what it was before. In addition to income, benefits are also better. Employees are allowed to travel twice a year, the company covers the cost of attending external training courses to help them with their work, and they are eligible for many other benefits. When the company grows, this benefit is passed on to each individual, enabling them to live better and continue to improve their skills. Customers also receive better value, as all departments look towards a common goal: the product must be delivered correctly, adequately, and of high quality to customers.

My first lesson is: The hardest part is not learning a new model, but rather daring to abandon old habits.

The second lesson is that no model can be applied universally to all businesses. Transitioning requires flexibility, adapting to the size, people, and stage of the organization’s development. If we force everyone to change according to a rigid template, that very thing goes against the spirit of open and flexible management.

Lesson Three: Leaders Must Truly Commit to Transformation

A leader must genuinely commit to transformation. They can’t just hand over authority; they must also ensure their team feels secure. Leaders must assure their team that if problems arise during the transition, they will take responsibility and work with everyone to resolve them.

Giving authority isn’t about relinquishing control. It’s about working together to align goals, ensure transparency, clearly define responsibilities, and build trust so that each person can grow and thrive.

After three years of transitioning to an open and flexible management model, Baki has seen significant improvements. While things were better than before, we understand that this isn’t an end goal but a continuous journey.

Our goal is to help each employee grow, perform more fully, be themselves, and continuously improve their income so that their earnings increase day by day.

In the future, I hope to be able to scale this model and expand it to more locations across Vietnam.

I believe that a company’s true success is achieved when its growth is aligned with the happiness and prosperity of each individual within the organization.

For me, transitioning the management model isn’t just about running the business more efficiently. More importantly, it’s about creating a place where everyone feels valued, has opportunities for growth, and truly enjoys their work every day.