Human resources

In 2009, we reinforced our shared value base to take us to the next level

Providing the Best Deal is fundamental to Tele2’s strategy. In our industry, customer expectations change very rapidly, making it critical to maintain a flexible organisation. Tele2’s future success is highly dependent on our ability to attract, develop and retain action-oriented people who share our values. Given the fast pace at which Tele2 expands in new locations, a shared value base is essential, as we cannot control all aspects of our business through policies, systems and rules. Tele2’s corporate values, encapsulated in The Tele2 Way, provide a set of fundamental elements that connect our people across borders and cultures.

The Tele2 Way defines who we are and how we do things. It guides us in our daily lives, supporting the decision making process by setting the boundaries for what is right and what is wrong. We believe that the right attitude, enthusiasm, and the ability to work according to Tele2’s values are more important than an impressive resume.

Tele2 expanded very rapidly in 2009, not least in Russia where we launched 18 new regions. Therefore, a key priority in 2009 was to ensure that all our people fully understand and accept our value base. We strived to accomplish this goal in three key ways during the year:

First, we gave all employees the opportunity to take part in an e-learning game, which provides an introduction to Tele2 and our corporate culture. This game also gives our people an opportunity to challenge the Tele2 management and their understanding of our values. The game is now part of the various local induction programmes for new employees. By the end of the year, 1,500 employees had played the game and challenged management.

Second, the communication material supporting the Tele2 Way was updated and improved. It will be distributed during the first quarter of 2010.

Finally, we continued to provide training and support to the management in all countries, using local internal trainers.

While a solid base of core values is important, we also believe that a heterogeneous culture is vital to our success. Therefore we continuously strive to improve diversity management, including diversity of gender, age and ethnic background. For Tele2, diversity means business strength.

Another important focus area during 2009 was to strengthen talent management and succession planning. A Group-wide review of management capabilities was carried out. An action plan for 2010 has been defined, based on the findings.

The Tele2 Employee Survey – My Voice – was completed during the second half of 2009. With a response rate of 93%, this is an important tool for management in understanding and developing the organisation. By systematically and continuously working with the results in workshops with employees and managers, we will improve year by year. Last year’s result is a big step in the right direction.
 
All members of the executive management team have targets related to communication, leadership and employee satisfaction. The result from My Voice 2009 shows that we improved our performance compared to 2008 and that we outperformed compared to our benchmark, i.e. the average score of companies in our comparison group (companies in the service industry that use the same survey). However, challenges remain on our journey to become best in class, i.e. to achieve the highest score in our comparison group.

Going forward in 2010

In order to ensure a strong focus on always providing the Best Deal, Tele2 has defined three HR focus areas going forward:

• Emphasize the strategic direction and build a stronger performance culture through a well-defined performance management process, including reward and succession planning.
  
  
• Become an employer of choice within the telecom industry in all our markets by developing our talent management process and by strengthening our employer branding activities on a corporate level. We will use local partners to measure our improvements.
  
  
• Strengthen the corporate culture through further emphasizing the Tele2 Way. We will continuously train managers on all levels on our values and what they mean in our day-to-day operations. The Tele2 Way e-learning game shall continue to be part of the induction programme for all new employees.

Tele2’s strategic challenges demand increased cooperation across borders and organisational units. This work will be supported by a focused Group-wide perspective on human resources development going forward.