Telenor's annual reporting 2006 Annual review 2006

Sequence of lady in chair

Organisational development

In pursuit of our vision – helping our customers get the full benefit of communications services in their daily lives – Telenor works systematically to ensure that true customer orientation is the defining characteristic of our organisation.

Our behaviour as professionals sets the direction for this effort. These principles, however, need to be complemented with stringent measures to really make ourselves accountable to our promises. Systems for building capabilities and follow up performance are therefore being institutionalised across the group.

Organisation and personnel

At the end of 2006, Telenor had 35,600 employees (34,350 man-years), of whom 11,100 were employed in Norway and 24,500 abroad. This is an increase of 7,100 employees since the end of 2005. The increase in the number of employees is due primarily to strong growth in our international operations and significant acquisitions in Sweden and Serbia.

At the beginning of 2005, Telenor adjusted its organisational structure with the aim of reinforcing and developing its activities in the Nordic region and ensuring continued international growth in the mobile market. In order to simplify and strengthen its position in the Nordic market, Telenor established a separate management area for mobile and fixed-line services in the Nordic region with effect from 26 January 2005. At the beginning of 2006, the international mobile business was split into two regional areas of responsibility:one for Asia and one for Central and Eastern Europe. The heads of each regional area are members of Telenor’s Group Management.

Based on the Group’s strategy for long-term industrial development, Telenor has given greater priority to the process of extracting synergies and developing its mobile operations across the Group through the Global Coordination programme. In view of the great importance of this work, the head of Global Coordination joined the Group Management at the outset of 2006.

It is also important to Telenor that each operation builds up local competitive strength through cooperation and exchange of competence between companies, countries and regions. To provide the necessary support for this work, the head of Human Resources also joined the Group Management in 2006.

Competence and training

Telenor recognises the importance of attracting and retaining talented and motivated managers and other employees who display a strong passion for business in line with Telenor’s Codes of Conduct and who are capable of motivating their colleagues to give their best.

A set of key global processes make up the core of this system, serving two key purposes: to monitor the state of the organisation and develop our employees. Telenor’s ambition for our people and organisation form the basis for these processes. Our organisation shall provide a competitive advantage by being simple, aligned and efficient – complemented by a culture centred on the customer and characterised by our values, collaboration and a group mindset.

Moreover, we seek to populate this organisation with managers passionate about business, who excel at empowering people and never compromise on Telenor’s values and ethical standards – people who perform at the peak of their ability because they feel a sense of mission, accomplishment and growth.

The two global processes –Telenor Development Process (TDP) and Internal Value Creation (IVC) – were developed further in 2006. TDP is a tool for systematic evaluation, development and remuneration of employees, while IVC measures the capacity of both the individual and the organisation to create value for customers.

Diversity and equal opportunities

Telenor is keen to promote diversity and has achieved good results in this area. Our work on diversity includes women, ethnic minorities, older people and those with disabilities.

Telenor has developed requirements for diversity in both recruitment and our management development programmes. We believe that a good balance between work and private life is becoming increasingly important for today’s talents and managers, male and female. In Norway, Telenor’s Handicapped Programme is pioneering in it’s securement of employment for the disabled. Experience from this programme will also help support Telenor’s work to Increase the proportion of employees from different ethnic backgrounds.

Equal opportunities statistics show that, in the Norwegian part of the Group’s operations, women accounted for 40% of the overall workforce and 27% of managerial staff. In both cases, this represents an increase of three percentage points from 2005. Telenor ASA’s Board of Directors consisted of 40% women and 60% men in 2006. Based on the principles for equal opportunities adopted by the Board, steps have been taken to improve the composition of the boards of the Group’s companies in terms of both gender and competence. All representatives appointed to Telenor’s various boards are offered training in board work.

Read more on Telenor as a responsible employer.