Leading globally with Vietnamese's resilience | Hanh Tran, NAB Innovation Centre Vietnam | EP 368

Key Concepts

• Global Capability Centers (GCCs): Offshore or nearshore centers established by companies to deliver technology and business services.
• Customer Centricity: A business strategy focused on understanding and meeting customer needs and expectations.
• Innovation Center: A dedicated facility or team focused on developing new ideas, products, and services.
• Talent Development: Investing in employee growth, upskilling, and career progression.
• Resilience: The ability to adapt and thrive in the face of challenges and adversity.
• Culture: The shared values, beliefs, and behaviors that define an organization.
• Impact: The tangible effect of work on customers and the business.
• Ownership: Empowering individuals and teams to take responsibility for their work and outcomes.
• Inclusivity: Creating an environment where everyone feels welcome, respected, and valued.

NAB Innovation Center Vietnam: A Deep Dive

This episode of the Vietnam Innovators Podcast features an in-depth conversation with Jihan, the General Director of the NAB Innovation Center Vietnam. The discussion highlights the growth, strategy, and culture of NAB's presence in Vietnam, emphasizing its role in powering global tech operations and fostering innovation.

The Genesis and Evolution of NAB Vietnam

• Founding and Transition: The NAB Innovation Center in Vietnam was established in 2019 as a project to test the market and assess Vietnam's readiness for such operations. Approximately two years later, NAB Group transitioned the center from a project to a fully owned entity, signifying a strong belief in its potential.
• Growth Milestones: A significant milestone was reaching the mark of 1,000 employees, which demonstrated the center's ability to capture Vietnam's talent pool. The evolution from a support function to owning business outcomes and delivering value for customers has been crucial to the center's success.
• Pioneering Role: NAB is presented as a pioneer in establishing a Global Capability Center (GCC) in Vietnam, particularly within the banking sector. While the GCC model is not new globally (with India being a long-standing example), NAB has proven Vietnam's capability to deliver for global operations and build talent.

Strategic Vision and Brand Positioning

• Customer Centricity as a Core Mission: The overarching vision for NAB is to become the most customer-centric bank in Australia and New Zealand. The Vietnam team, though not customer-facing, is integral to achieving this by delivering technology solutions that enhance customer experience.
• "Home for Innovators" Positioning: NAB Vietnam aims to be more than just a workplace. It empowers its employees to innovate, contribute ideas, and see the tangible impact of their work on customer lives, positioning itself as a powerhouse for NAB's technology transformation journey.
• Mindset Over Market: The strategy emphasizes a "for mindset and capability" approach rather than solely focusing on market presence. This means building the right skills and fostering an innovative culture within the Vietnam team to serve global customers.

The Vietnamese Talent Advantage

• Untapped Potential: Jihan highlights the immense potential of the Vietnamese market, characterized by a young, tech-savvy population eager to learn and adopt new technologies.
• Cultural Strengths: Key cultural attributes contributing to success include resilience, persistence, and a strong desire to solve problems. This resilience, forged through a challenging history, allows Vietnamese individuals to thrive even in difficult circumstances.
• Raw but Promising Talent: While acknowledging that the talent market in Vietnam, especially in banking, is still "raw" compared to more mature markets, Jihan expresses confidence in its ability to reach maturity through learning and dedication.
• Government Support: The Vietnamese government is noted as being supportive of business models like GCCs.

Building Capabilities and Future Leaders

• Developing Niche Skills: NAB Vietnam has successfully built capabilities in areas like cybersecurity, which were initially niche in the market. By investing in training and development, they have grown a team of over 100 cybersecurity professionals, largely from homegrown talent.
• Attracting and Retaining Talent: The growing scale and reputation of NAB Vietnam attract talent from regional countries and returning Vietnamese professionals. The company's commitment to a "solid shop" and providing opportunities for career growth is a significant draw.
• Empowerment and Environment: Jihan's motivation for joining NAB 11 years ago was to prove that Vietnamese people are capable with the right empowerment and environment to build their careers. This philosophy continues to guide the center's approach to talent development.
• Shaping Future Leaders: NAB Vietnam aims to develop future technology leaders by providing real work with customer impact from day one. New joiners undergo bootcamps and training programs to be ready to contribute alongside experienced teams.
• "Boomerang" Employees: The company has a positive experience with employees who leave to gain experience elsewhere and then return, demonstrating a strong culture and the value of the opportunities provided.

Culture and Employee Experience

• Culture as a Differentiator: Jihan emphasizes that while fair pay, good environments, and leadership are important, the ability to bring one's best self to work, have ideas heard, and see the impact of one's work is what truly differentiates NAB and fosters long-term commitment.
• Buddy System and Engagement: New joiners are supported by a dedicated buddy system, and NAB Vietnam boasts high employee engagement scores, creating a welcoming and inclusive atmosphere.
• Mentorship and Global Workforce: The company fosters mentorship and builds a global workforce, encouraging ownership and loyalty among young Vietnamese professionals.
• People Business: Jihan views NAB Vietnam as a "people business," prioritizing employee development and career growth, believing that this focus will naturally lead to positive business outcomes.
• Moving with Speed: Despite the highly regulated banking environment, NAB Vietnam strives to move with speed. This involves empowering individuals to own solutions end-to-end and fostering collaboration between teams in Vietnam and Australia to navigate regulations and drive progress.

Global Connectivity and Impact

• Bridging Distances: Initially, new joiners would travel to Australia for immersion. However, the pandemic necessitated a shift to virtual interactions, leading to a more purposeful approach to in-person visits. Human connection remains vital for building strong working relationships.
• Energy and Enthusiasm: Global teams often learn from their Vietnamese colleagues about their energy, enthusiasm, and hardworking nature. While initially shy, Vietnamese employees become effective collaborators once the ice is broken.
• Customer-Centricity in Practice: To stay connected to the mission of customer centricity, NAB Vietnam focuses on understanding customer pain points through feedback systems and by imagining a customer present in every meeting room, symbolized by a red star.
• Cross-Location Collaboration: The operational model is designed for seamless collaboration across different locations (Vietnam, Australia, India), all working towards the same business outcomes and customer delivery.

Leadership Philosophy and Future Aspirations

• Building and Empowering People: Jihan's leadership philosophy centers on building her team's capabilities and foundations, then providing them with the space to grow their careers. She is open to bringing in external experts to enhance the team's knowledge.
• Passion and Purpose: For those starting their careers, Jihan advises finding passion in their work and exploring different business models and cultures to find a good fit.
• Developing Future Leaders: The goal is to build the next generation of leaders in Vietnam, whether they aspire to be architects, rebuild digital banks, or scale businesses. This includes uplifting the capabilities of the company and the country, with the aspiration for Vietnam to become a leading hub in Southeast Asia.
• Balancing Business and People: Jihan balances board-directed business outcomes with a people-centric approach, believing that taking care of employees and fostering their growth is the foundation for achieving business success.
• Advocacy for Women in Leadership: Jihan expresses a desire to see more women leaders featured on the podcast, advocating for inclusivity and promoting women in leadership roles.

Key Moments and Retention

• Early Challenges: The first year of the innovation center was challenging, requiring the team to prove its value to various parts of the NAB Group, navigate security, governance, and compliance in a highly regulated industry.
• Team Resilience: The success of the center is attributed to a small but dedicated team that was determined to make the model work, especially given that it was NAB's first innovation center outside of Australia.
• Long-Term Employees: The center has retained a significant number of employees, with many celebrating five to five-and-a-half years. The first 10 engineers recruited in 2019 and a substantial portion of the management team are still with NAB Vietnam.
• Creating a Family Atmosphere: The company culture has fostered a sense of community, with employees referring family members and even spouses joining the company, indicating a positive and attractive work environment.

Conclusion

The NAB Innovation Center Vietnam, under Jihan's leadership, exemplifies a successful model for global capability centers. By focusing on talent development, fostering a strong culture of innovation and resilience, and prioritizing employee well-being, NAB Vietnam is not only delivering significant value to NAB Group but also contributing to the growth and development of Vietnam's technology sector and its future leaders. The center's journey from a project to a fully owned entity, its pioneering role in the market, and its commitment to customer centricity underscore its strategic importance and promising future.