Telenor has developed a management model that will contribute to enhancing the group's ability to steer towards its strategic goals, and thus realize its principal objective of creating maximum value for its owners.
A key element of this management model is identification of the principal financial factors that are linked to the development of shareholder value. This encompasses a combination of growth targets and targets for the return on invested capital. A number of operative value drivers have been identified for each business area according to the area's strategic goals and special challenges. Specific and measurable metrics are established for each value driver as part of the company's work on strategies, business plans, budgets and reporting.
A significant element of Telenor's management model is that it also focuses on non-financial value drivers. The non-financial areas are viewed collectively as Telenor's intellectual capital. Telenor operates in a market situation at home and abroad where customer/market orientation, competence, innovation capacity and efficient work processes are of decisive importance for success. Telenor measures, reports on and follows up intellectual capital as an integral part of its ordinary business management.
The realization of value driver goals is linked to the company's reward system through performance-based contracts with the business area and group management.
