Management By Objectives – Awakening The Entrepreneurial Spirit At Luxgroup®
From the philosophy of Dr. Phạm Hà – “Luxury is Culture – Delivering Happiness”
“A company cannot be great if its people only follow processes without understanding why they do what they do.”
— Dr. Phạm Hà, Founding President & CEO, LuxGroup®
1. From the Founder’s Vision to a Culture of Purpose
When Dr. Phạm Hà founded LuxGroup® two decades ago, he did not simply build a travel company—he built a community of purpose and happiness.
His vision was not profit alone, but to create an organization where people work not by command, but by conviction.
“Delivering Happiness” became more than a slogan—it became a management philosophy.
LuxGroup® was therefore designed not just upon ISO procedures or SOPs, but upon autonomy, trust, and shared goals—principles that empower every team and individual to find their own path to excellence.
“At LuxGroup®, I don’t manage by process—I manage by objectives.
Objectives are the compass that guide people toward results, inspiring creativity within discipline, and happiness within contribution.”
— Dr. Phạm Hà
2. How MBO Transformed a Multi-Brand Ecosystem
Today, LuxGroup® has evolved into a cultural and lifestyle ecosystem of ten distinct yet interconnected brands:
Lux Cruises Group®, Lux Travel DMC®, Lux Hotels & Resorts®, Lux F&B®, Lux Arts®, LuxHomes®, LuxTransCo®, LuxUni®, Lux Yacht Collection®, and the visionary Vietnam Waterways®.
With over 500 people spanning Hanoi, Ha Long, Nha Trang, and Ho Chi Minh City, maintaining unity of vision while allowing creative autonomy is no small feat.
Dr. Hà’s answer: Management by Objectives (MBO)—a system that aligns empowerment with accountability.
At Lux Cruises Group®, teams are not merely given revenue targets but experience-driven goals:
“To bring joy and pride in being Vietnamese to every guest onboard.”
At Lux Travel DMC®, success is not measured by tour numbers but by the depth of customer connection:
“Achieve a 40% repeat customer rate and ensure 100% of staff can proudly tell our brand story.”
This is how LuxGroup® turns management into artistry—each individual works with freedom, yet all flow toward a shared purpose:
“Luxury is Personal, Local, Cultural, and Sustainable.”
“When people understand the ‘why,’ they will always find the ‘how.’
That is the entrepreneurial spirit I want to nurture at every level.”
— Dr. Phạm Hà
3. MBP and MBO – The Balance Between Discipline and Creativity
“Process is the backbone, but purpose is the soul of an organization,” says Dr. Hà.
LuxGroup® does not abandon Management by Process (MBP)—it strengthens it.
Processes ensure safety, consistency, and operational excellence; yet, objectives bring life, passion, and innovation to those processes.
Onboard its iconic vessels—Heritage Bình Chuẩn, Emperor Cruises, and Amiral Cruises for Presidents®—staff follow world-class safety and service standards, yet are encouraged to add their own cultural touch to every guest experience.
“You can teach someone how to pour wine,
but you can’t teach them how to make a guest feel genuinely cared for.
That comes from inner purpose.”
This belief is practiced daily across the company. At LuxUni®, the group’s internal leadership academy, Dr. Hà reminds his managers:
“Happy employees create happy guests. Treat your team the way you want them to treat your customers.”
It is this human-centered leadership that allows LuxGroup® to blend the discipline of a corporation with the soul of a family business.
4. MBO, OKR, and KPI – The Three Waves of Strategic Leadership
LuxGroup® operates on three synchronized levels of management:
• MBO (Management by Objectives): Long-term strategic direction and purpose.
• OKR (Objectives & Key Results): Quarterly translation of vision into measurable outcomes.
• KPI (Key Performance Indicators): Tangible metrics for operational excellence.
For instance, Lux Cruises Group®’s 2025 MBO is:
“To become the World’s Leading Small Ships Cruise Line and the World’s Best Boutique Cruise Line.”
Supporting OKRs include:
• Launching new routes on the Saigon River and Mekong Delta.
• Achieving Travelife Certified sustainability status.
• Maintaining 99% customer satisfaction.
And detailed KPIs ensure clarity and discipline:
• 100% of employees complete ESG training.
• Complaint rate below 0.1%.
• 30% annual growth across five language markets, with new experiences added every year.
These three layers work in harmony, ensuring LuxGroup® stays agile, measurable, and inspired—a company that dreams big but executes precisely.
5. When Purpose Becomes Happiness
For Dr. Hà, happiness is the ultimate KPI.
“Profit is important,” he often says, “but happiness is the foundation of sustainability.”
Every year, LuxGroup® organizes its signature “Happiness Journey”—a company-wide campaign where departments set non-financial objectives: learning new skills, doing charity work, or spreading cultural appreciation.
This commitment to happiness as a measurable goal has earned LuxGroup® numerous recognitions:
• Travelife Certified for sustainable tourism,
• Asia’s Best Companies to Work For 2025,
• World’s Leading Luxury Tour Operator 2025,
• Vietnam’s Best Inbound Tour Operator 2025,
• And multiple nominations at the World Cruise Awards 2025 including World’s Leading Small Ships Cruise Line.
“If employees are not happy, customers cannot be happy.
If a business has no purpose, every process becomes an empty shell.”
— Dr. Phạm Hà
6. When MBO Becomes a Way of Life – The Spirit of Vietnamese Entrepreneurship
For Dr. Hà, MBO is more than a management system—it is a philosophy of leadership rooted in Vietnamese identity.
“My goal is not to build the biggest company, but the most soulful one—where everyone feels like an owner.”
This is what he calls the “Doanh Chủ Dân Tộc” spirit—a model of national entrepreneurship that balances service, integrity, and self-reliance.
From chefs onboard the ships to brand directors, every member is encouraged to set personal goals, lead themselves, and take full responsibility for outcomes.
This ownership mindset has become LuxGroup®’s competitive advantage—the energy that fuels creativity, resilience, and transformation.
“Machines can compute, but only humans can dream.
In the age of AI, the one thing technology can never replicate is a purpose with a soul.”
— Dr. Phạm Hà
Conclusion: The Soul of Purpose
LuxGroup® stands as a living example that Management by Objectives can elevate not only performance but also people’s sense of meaning and pride.
From a small boutique travel company founded in 2005, LuxGroup® has become Vietnam’s leading heritage–culture–art–hospitality conglomerate, redefining “luxury” as something personal, cultural, and sustainable.
A business can operate by process to survive,
but only those driven by purpose, values, and happiness will live on and inspire others.
“Luxury is Culture – Delivering Happiness”
— Dr. Phạm Hà, Founding President & CEO, LuxGroup®