05-744-2010-1

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

This company has attained tremendous success as a green-field operation for the last five
years. Now the internal challenge is to convert this company from a green-field start-up to a
mature company. Mentally we are still in the hyper-growth mindset. We need to convert to the
new mindset.
- Jon Eddy Abdullah, CEO, Telenor
Pakistan

In August 2010, Jon Eddy Abdullah, Chief Executive Officer of Telenor Pakistan, was quite
impressed with the solid second quarter results for the company that were presented to him in
his office in Islamabad. Jon, however, was quite wary of the fact that even though Telenor
Pakistan had thrived consistently during the last few years, a number of changes had
occurred in the telecommunication market leading to increased pressure on the organisation
to change its old ways in order to sustain its competitive advantage.

The Pakistani telecommunication market was entering a maturity stage after a period of
continued high growth in the last several years. The challenge for Jon was to convert an
organisation that had attained tremendous success as a green-field operation so far, into an
organisation where tighter controls were needed. He pondered over his options to align the
company with the changing market dynamics as fast as possible, while preserving the core
elements of culture that earned this company the award for being the most preferred
employer twice in the last three years.

THE TELECOM REVOLUTION IN PAKISTAN

The Pakistan Telecommunication Ordinance 1994 established the primary regulatory

framework for the telecommunication industry including the establishment of an Authority.
Under the Telecom Reorganisation Act 1996, the Pakistan Telecommunication Authority
(PTA) was established to regulate the establishment, operation and maintenance of
telecommunication systems, and the provision of telecom services. When the PTA started
regulating telecommunication, Pakistan Telecommunications Company Limited (PTCL) was
providing basic telephonic connection services while Mobilink, Paktel and Instaphone were

This case study was written by Professor Anwar Khurshid and Research Associate Nauman Ali at Lahore University of
Management Sciences to serve as a basis for class discussion rather than to illustrate either effective or ineffective handling
of an administrative situation. This material may not be quoted, photocopied or reproduced in any form without the prior
written consent of the Lahore University of Management Sciences.

© 2010 Lahore University of Management Sciences

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the key cellular mobile sector players. Internet access was at a very preliminary stage. 1

The telecommunications industry contributed substantially to the economy of Pakistan.

Revenues in the fiscal year 2008-2009 alone exceeded 330 Billion Rupees, with consistent
growth in earnings taking place over the past six years (Exhibit 1). Since the initial
establishment of PTA over fifteen years ago, six major sub-sectors in the telecommunication
industry had emerged and developed by 2010:

1) Fixed Line Subscription: PTCL had a monopoly in this sub-sector, providing over 7
million customers with basic residential and commercial telephonic access based on copper
wires.

2) Wireless Local Loop (W.L.L.): Wireless local loop services were introduced in Pakistan
after the deregulation of the local loop sector in 2004. These were considered to be a wireless
alternative to the traditional setup. With a total subscriber base of approximately 2.6 million,
PTCL was the market leader among 17 competitors.

3) Payphone Services: Companies which had been given a license by the PTA were
providing telephone sets to Public Call Offices all over the country. With over 500,000
payphones registered in 2008, Wireless Local Loop had captured more than 50% of the
market share in this sector.

4) Internet: In 2008, the PTA reported over 22 million Internet users. Most Pakistani
companies, educational institutes and government departments maintained web sites which
further increased demand. Broadband, and Wimax services (a telecommunications protocol
that allowed fixed and mobile internet accessibility) were offered countrywide with
Worldcall as the market leader.

5) Voice over Internet Protocol (VoIP) Services: Various companies in Pakistan were
offering international calling facilities at local rates using VoIP, including Vonics and
BrainTel.

6) Mobile Subscription: Last but not least, since 2009, this sector dominated the market
with over 94 million subscribers (Exhibit 2). The introduction of the mobile phone (also
known as the cellular phone) worldwide in the early 1980's offered customers a convenient
and portable method of communication as opposed to physical presence required at a specific
location. Pakistan did not take long to adopt this innovative technology with Mobilink
starting operations in Pakistan in 1994 to provide cellular services to the masses.

In 2010, there were five players in the cellular mobile market in Pakistan providing GSM
(Global System for Mobile Communications) based services whereas one was offering
AMPS (Advanced Mobile Phone System) based access. 2 Telenor Pakistan had four
competitors:

1
Source: PTA website at www.pta.gov.pk and Telecommunication Industry report available at
http://www.docstoc.com/docs/2354317/Telecommunication-Industry-of-pakistan
2 GSM and AMPS are two different cellular technologies. GSM continues to become more popular due to its greater
service potential
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Mobilink: As a subsidiary of the Orascom Telecom Holding, Mobilink was Pakistan’s

leading cellular and Blackberry 3 service provider as of August, 2010. Mobilink maintained
market leadership through cutting-edge, integrated technology, the strongest brands and the
largest portfolio of value-added services in the industry. 4 It currently enjoyed the largest
customer base as well as maximum revenues (Exhibit 3) amongst all cellular operators.

Ufone: Since its inception, Ufone focused on the masses, empowering them with the most
relevant communication modes and services that enabled them to do a lot more than just talk,
at a price that suited them the most. Along with the claim of lowest call rates, clear sound and
best network, Ufone offered its customers simplified tariffs with no hidden charges. 5

Warid: Having started its operations in Pakistan in the same year as Telenor, Warid prided
itself on quality, reliability and exceptional customer service.

Zong: With full support from its parent company China Mobile, Zong enjoyed the comfort
of experience and expertise at the helm and aimed to tap into the Pakistani market using its
value-added services and customer care standards.

As the cellular mobile market in Pakistan was reaching maturity and the level of competition
was increasing, the focus in 2010 was shifting from rapid expansion towards operational
efficiency and consolidation.

Describing the situation, Reehan Ahmed, Manager Segment Postpaid in Telenor remarked:

Pakistan is a very competitive market. There are always pressures due to costs and
revenues. Also, the Telecom market has decreased prices too quickly. Our average
revenue per customer has gone down. Our regulator is becoming more and more
stringent with us. China Mobile entered in 2008 making it a five-player market. The
market isn't big enough for five players. They spoiled the market by increasing
customer expectation by offering them great deals.

TELENOR PAKISTAN

Telenor Pakistan was 100% owned by the Telenor Group, an international provider of high
quality voice, data and communication services in fourteen markets across Europe and Asia.
Telenor Group was among the largest mobile operators in the world with over 179 million
mobile subscriptions as of the end of the first quarter in 2010 and a workforce of
approximately 40,000. Telenor Pakistan was the country's single largest European investor,
with investments in excess of US$2 billion. It acquired a GSM license in 2004 and began
commercial operations in 15 March, 2005. At the end of May 2010, it had a reported
subscriber base of 23.65 million, and a market share of 24% making it the country's second
largest mobile operator. 6 Although, Telenor Pakistan had a short history, it had accomplished
a lot in a limited time period (Exhibit 4).

3 Blackberry is a cell phone for users who are interested in email and web browsing ability
4 Source: Mobilink Website (http://www.mobilinkgsm.com/ )
5 Source: Ufone Website (http://www.ufone.com/ )
6 Source: Telenor Pakistan website (http://www.telenor.com.pk)
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Telenor Pakistan had the following vision6:

Our Vision
Our vision is simple: We're here to help
We exist to help our customers get the full benefit
of communications services in their daily lives.

The key to achieving this vision was a mindset where everyone worked
together. There were four core values which encouraged customers to buy and
use Telenor's services6:

We believe in four core values:

Make it Easy
We're practical. We don't complicate things.
Everything we produce should be easy to
understand and use. Because we never forget
we're trying to make customers' lives easier.

Keep Promises
Everything we set out to do should work, or if it
doesn't, we're here to help. We're about delivery,
not over promising, actions not words.

Be Inspiring
We are creative. We strive to bring energy to the
things we do. Everything we produce should look
good, modern and fresh. We are passionate about
our business and customers.

Be Respectful
We acknowledge and respect local cultures. We do
not impose one formula worldwide. We want to be
a part of local communities wherever we operate.
We believe loyalty has to be earned.

The mission of the organisation was consistent with that of Telenor Group; the primary goal
being to create greater value for shareholders, customers, employees and partners, and for
society in general. Telenor strove to be a driving force in creating, simplifying and
introducing communication and data solutions to the marketplace. 7 On the societal level,
Khuddar Pakistan was Telenor Pakistan's flagship corporate responsibility initiative. With
Khuddar Pakistan, the challenges faced by people with disabilities were addressed. In March
2010, the “Karo Mumkin” campaign was launched which reinforced Telenor Pakistan's vision
of being “here to help” and values of making it easy, keeping promises, being respectful and

7 Source: Telenor Group website (http://www.telenor.com)

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most importantly the value of being inspiring.

In 2005, market conditions supported the entry of a new Telecom player and Telenor took
advantage of this situation to tap into the exponentially growing market. This strategically
sound decision coupled with relevant marketing strategies and initiatives gave Telenor an
initial boost. Telenor Pakistan enjoyed corporate support from the headquarters in Norway.
This support had been moral as well as financial. A strong culture which encouraged hard
work and a sense of responsibility and dedication had been thoroughly inculcated amongst
employees. Innovation and hard work as well as technical competence amongst the
workforce had propelled Telenor to become the second largest mobile operator and a
formidable competitor in only a little over five years of presence in the local market.

CULTURE – A STRATEGIC CHOICE

When Telenor Pakistan started operations in Islamabad in 2005, the company’s first priority
was to develop a unique culture which would act as a catalyst for success. The company
made a strategic choice to focus specifically on the culture and try to nurture an environment
which was not only conducive for productive work but also a source of delight for the
employees. Attachment to the culture and a sense of ownership and pride were outcomes that
were discussed consistently amongst Telenorians throughout Pakistan. Certain unique
attributes of this culture had gained nationwide acceptance and popularity. The core values
were depicted in many inspirational stories, some of which were captured by Telenor
Pakistan to motivate their employees (Exhibit 5).

The office layout in Telenor Pakistan featured an open seating arrangement where employees
did not have designated offices (Exhibit 6). An employee could choose to sit anywhere he or
she wished regardless of his or her position in the organisation. The open space environment
was an innovative and revolutionary concept adopted by Telenor Pakistan. This lack of
protocol, red tape and bureaucracy had led to increased social cohesion, collaboration and
cooperation among employees. A manager could easily be seated next to a director, thus
increasing accessibility of the top management and minimising any psychological barriers
which existed between different levels of the hierarchy. A brief conversation or an exchange
of ideas in such an encounter was also quite common. Most employees considered this
egalitarianism to be a binding force of the culture at Telenor. A casual dress code was
introduced to further increase the comfort level of employees and informality at the
workplace.

According to Nayab Baig, Vice President of Human Capital Division Telenor:

We aspire to build a culture that is free from bureaucracy, open to people and ideas,
innovative, high performing, aggressive towards competition, intimately connected to
the customer, and based on integrity.

People should say internally that they are in love with Telenor. We branded “I love
Telenor” internally and externally for the past two years. Pride, passion, and
association with the company have been inculcated. “Jazba” 8 is a very important

8 Passion
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word. These are the things which have allowed us to compete well with other
companies. If you have these core values, then other things will come automatically
and you can compete with whatever you come across. If you don't have “Jazba” then
what will you do?

The culture permeated throughout the organisation within a short period of time. Instances
where employees did more than what was expected of them became inspirational to others
and instrumental depictions of the Telenor Way (Exhibit 7). One manager mentioned “There
was a certain feature on our network which we needed. People in the planning team went out
of their way to help us. They put in extra hours, they bypassed regular channels; we had lost
hope but they promised us they will provide that feature and they delivered.”

By 2010, Telenor Pakistan had over 2,600 employees, of which women were just a little
under 500 (Exhibit 8). In a country where women traditionally did not prefer to work,
Telenor had a very favorable proportion of females in the workforce. The average age of a
Telenor employee was 28 years, making it a rather young organisation in terms of the age of
the workforce. Employees viewed this as a strength due to a lot of extra energy and passion
being exhibited by the average Telenorian. Karl Erik, the Chief Financial Officer,
commented, “We are a very attractive employer. We attract the best in the country. We are a
young organisation. We have lots of people with high ambitions and positive energy.”

The diversity of the workforce was considered a key strength. It was protected and
encouraged along with practices which eliminated discrimination in any form. Local cultural
sensitivities were taken into account such as the provision of separate mosques for men and
women and pick and drop services for females in the organisation. A high level of trust and
empowerment also existed. There was an added emphasis on teamwork and cooperation; it
was a fact that “there is no “I” in Telenor!” Management claimed that there were no secrets
at Telenor. All ideas were appreciated at Telenor Pakistan. After securing commitment from
stakeholders, employees were given autonomy in projects and the responsibility to deliver
results. This helped to instill passion in the tasks at hand. Mistakes were made but
discouragement or embarrassment for the involved personnel was traditionally minimised by
the top management to increase confidence and maximise the potential of learning from
shortcomings. As long as the mistakes were not in direct contradiction to Telenor core values,
code of conduct and governing principles, leniency was shown. Telenor Pakistan circulated
its very own Code of Conduct (CoC) Handbook in addition to conducting CoC orientation
sessions, which highlighted some of the expected behavioral and social norms to be
internalised individually and collectively by employees.

Social learning played a very important role in the dissemination of the culture, especially to
new employees. Employees with various backgrounds and experience generally embraced
this easygoing culture and adapted to it wholeheartedly. According to one manager, six
months was the average time it took for a new hire to adapt to this culture. A hiring process
existed which filtered out those individuals who would be a misfit in the organisation, while
recognising and recruiting exceptional talent at the same time. During the recruitment and
selection process, prospective employees were thoroughly screened for cultural fit in addition
to their technical competency. The hiring process was structured in a way that allowed people
whose personalities were in synchronisation with the culture to have a greater chance of
selection. Initial orientation was also quite helpful. The Human Capital Division (HCD)
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drove the culture and some employees felt that HCD actually had full ownership of this
culture. Others felt that everyone collectively owned the culture. Organisational development
processes were geared towards maintaining and preserving the culture. If an employee turned
out to be a cultural misfit in the organisation, the culture was given priority. “Culture is the
responsibility of the whole organisation. If we feel people are struggling with their job, we
can be lax, but if they destroy one of our core values, we don’t have a future together. You
can be a star but our values matter more”, commented Aamir Ibrahim, the Chief Strategy
Officer.

Although the response of employees to the culture and translation into desired results was
very positive, certain individuals expressed reservations regarding certain aspects of the
culture. The open seated arrangement reduced privacy considerably. However, Telenor
Pakistan's response to the issue of reduced privacy was to minimise paperwork and
encourage the use of personal laptops as the primary mode of communication and storage of
data. The company’s vision included the aim to become “paperless”. This significantly
hindered the possibility of inadvertent leaking of confidential information. Trustworthiness
and respect of privacy were diligently exhibited by employees with very rare reports of
fraudulent or even suspicious activity surfacing. A compliance committee comprising Nayab
Baig (VP, HCD), Jon Eddy Abdullah (CEO), Karl Erik (CFO) and Faham Ahmad (Manager,
Organisation Development) was formed to monitor and investigate such situations if they
occurred. Another consequence of the seating plan was distraction due to multiple
conversations occurring simultaneously. Sometimes prolonged casual discussions and jokes
would also be a source of inconvenience. The noise level was eventually successfully
regulated through employees politely reminding the relevant personnel to maintain proper
decorum as well as the introduction of private rooms for meetings, phone calls and general
discussions. Conflicts rarely occurred and were resolved very quickly. Heated discussions in
the meeting rooms were forgotten the moment the meeting was over.

MOST PREFERRED EMPLOYEE AWARD

In December 2007, Telenor Pakistan was awarded the Pakistan Society of Human Resource
Management (PSHRM) Preferred Graduate Employer Award for the Most Preferred
Telecommunications Company of 2007. Nayab Baig stated, "At Telenor Pakistan, our
philosophy is to unlock hidden human potential by offering an opportunity to employees to
build their expertise and by providing an energising environment.” The management was
thrilled at winning this award, but at the same time, realised that their job was far from over.
Gaining recognition was important but maintaining this status would be even more difficult.

TRANSLATING CULTURE INTO CUSTOMER EXPERIENCE

Telenor Pakistan wanted to translate this culture into customer experience so that tangible
benefits could be realised. Management claimed that this target could be achieved easily.

Rehan Ahmed, a senior manager narrated:

Once in Azad Kashmir, the service centre was closed, causing a great deal of
inconvenience. Our customers needed to recharge their balance desperately so our
employees made a new temporary outlet to help the customers!
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The management felt that an employee’s treatment of the customer was highly correlated
with how the employee was treated by the organisation. If the employee was treated with
respect and warmth in the organisation, he/she would treat the customers with greater respect
and warmth. The converse was also true. If an employee was unhappy in the organisation, the
customer would also feel the lack of warmth. The customer experience was directly affected
by the employee’s experience in the organisation.

SUBCULTURES

Although the company had intended to create a homogenous culture throughout the
organisation, subcultures started to develop over time. Reduced interaction between various
departments and varying management styles were some of the factors that contributed to the
development of subcultures. The headquarters in Islamabad was perceived by some
employees as having a distinct culture which was not exhibited in the regional offices.
Similarly, the call centers’ environment was very different and quite stressful, resulting in
another unique subculture. A disconnect existed between these three major domains. At the
departmental level, employees felt that individuals in the Sales Division were more vocal and
demanded more recognition. Stress and subsequently turnover was higher in the Customer
Care Division. Some managers believed that complete homogeneity throughout the
organisation would never be achieved due to functional diversity among different
departments as well as due to diverse styles of different managers. However, the
management believed that the key ingredients of the culture should remain the same
throughout the organisation. The best managers needed to walk and talk the Telenor Way. For
that reason, there was an Organisation Development initiative to train the managers in the
walk-in centres to enable them to inculcate a culture that would focus on customer delight in
the walk-in centres.

HUMAN RESOURCE MANAGEMENT AT TELENOR PAKISTAN: INNOVATION

AND EXCELLENCE

Telenor Pakistan's Human Resource Department was labeled the Human Capital Division
(HCD). HCD comprised four departments, namely People Excellence (PE), Organisation
Excellence (OE), Organisational Support and Services (OSS) and Corporate Security (CS).
PE dealt with recruitment, reward and retention, as well as operations such as managing
employee life cycles. OE dealt with Organisational Development, Health Safety and
Environment and Business Process Improvement. OSS handled event, travel arrangements,
and administration services. 9 CS ensured safety of Telenor Pakistan’s human & physical
assets.

The philosophy at HCD emphasised creating passion and making a difference. HCD worked
hard to motivate employees to contribute to the organisation, using the culture and
environment as supporting tools. Employees’ concerns were taken very seriously, with the
aim to make a difference on the divisional, organisational and eventually societal levels.
Telenor Pakistan was one of the few in Pakistan to offer in-house counseling services for
employees. Building a culture instilling passion for achievement and pride for the company

9 Taken from an academic research report compiled on HR practices at Telenor based on data taken from Telenor's
website, Business Magazine, Portal, company documents, sources and personnel
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was a primary target. Related initiatives helped in setting and achieving industry-leading
safety and quality standards for the company. Change and constant innovation were also
embraced and facilitated for the rest of the organisation. The division strove to help the
company introduce and meet the highest standards using the most efficient and effective
processes, to provide opportunities for employees to grow and shine, to provide the most
challenging as well as satisfying environment to work in and last but not least to contribute
back to the society. These four pillars of excellence were the foundations of HCD practices.

At the 2010, PE Strategy Session, based on input from several sources in the organisation
including climate surveys and 360 degree feedback, as described below, the PE department
decided to revamp its structure to build on its objective that was “To Be a Business Enabler.”
The department decided to change its structure, which enabled PE to better fulfill the
responsibilities of effectively managing the talent pool at Telenor Pakistan, designing and
executing competitive reward and retention strategies, efficiently managing the employee life
cycle and ensuring growth of employees. Three PE teams, one in each region, were assigned
with each of the teams being responsible for recruitment and all Human Resource (HR)
operations based functions in that specific region. The restructured design enabled the
company units to be more accessible to the general public in all the regions. It was also
aimed at improving processes and procedures to enable greater efficiency both in terms of
time and ease. Lastly, it was ensured that policies were transparent, just and fair. The
proposed structures envisioned PE to be able to create “HR generalists’’ so that the
department was able to establish itself as a strategic business partner thereby enabling
Telenor Pakistan to meet its goals more effectively. The OD strategy was to enable and equip
all people managers with the necessary tools needed by them.

RECRUITMENT AND SELECTION

Recruitment and selection process was considered an essential factor in preserving the
culture and thus was given paramount importance (Exhibit 9). Various psychometric
techniques including the Human Job Analysis (HJA) and the Personality Profile Analysis
(PPA) were used for selection and promotion decisions. The PPA focused on four primary
factors, namely dominance, influence, steadiness and compliance. Relevant reports were
generated followed by interviews and then selection of the best suited candidates.
Individual’s attitude about being open to criticism as well as certain behavioral traits were
judged.

Aamir Ishtiaq, a manager who went through this process recalled his own interview:

I think they were trying to test me for cultural fit. If I had given a very serious
response to most of the questions, I feel I would not have been hired. There was a
light atmosphere, they were joking with each other and I joined in.

There were examples where cultural fit was not ascertained initially but orientation
traditionally assisted in the process.

Naushad Javed, Director of People Excellence explained:

Our job in terms of recruitment is to assess a person's behavioral side; we have

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Leadership Expectations as well as the Values and Code of Conduct. Any new
employee is told very clearly the areas he/she cannot transgress. Then there are
governance policies. All these aspects put together is known as “The Telenor Way”.
Using this framework we are able to identify the right type of people. The line
managers want result-oriented people whereas we are concerned about cultural fit but
we eventually reach an agreement. We do make mistakes sometimes though.

The training was based on identifying the areas of disagreement vis-à-vis the job
requirements, preparing a development plan and imparting training about the gaps. Although
not normal practice for all trainings, a six to nine month monitoring period followed and
finally the Personality Profile Analysis exercise was repeated to assess the effectiveness of
the training. For internal promotions, candidates were shortlisted based on competency and
outstanding achievement. Comparisons were made between the PPA and HJA and selection
was made based on best behavioral fit. Grooming, monitoring and finally effectiveness
assessment took place. Job rotations involved comparison of profiles, best fit determination
using computer software and finally realignment of portfolios.

A variety of psychometric tools in addition to Personality Profile Analysis were used to aid
selection, training, assessment of potential for counseling purposes and identification for
promotion. Reliability, validity and relevance to the decision being made, acceptability and
practicality based on cost and resources availability were given top priority. In addition to the
PPA, several other tools were used to assess interpersonal style, thinking style and patterns of
coping with stress. Team-based activity and performance was quantified using the Jung Type
Indicator, another personality analysis methodology.

PERFORMANCE MANAGEMENT AND 360 O FEEDBACK

The performance appraisal system, known as Telenor Development Process (TDP) at Telenor
Pakistan, was recently modified with an emphasis on differentiation based on performance.
Employees considered it to be fair. Difficulty was incorporated into the system with a very
significant variable pay component based on achievement. There was a perceived theoretical
alignment between individual and team based appraisal and the standards were transparent
enough to satisfy the employees. A lot of autonomy existed for managers to hand out
rewards, with every manager being given a “bucket” which they could distribute.
Performance feedback was initially always given by the immediate manager. Managers were
trained to set feasible objectives, monitor on a regular basis and provide candid feedback. A
salary survey revealed that the compensation at Telenor Pakistan was well above the industry
norms.

The performance appraisal was based on the results achieved against the performance targets
that were mutually set by the employee and his/her manager at the beginning of the appraisal
period. Subjectivity was reduced by making the targets specific and measurable. The
alignment of employee goals with the goals of the organisation was a prime consideration. In
August 2008, the performance appraisal system was modified to include behavioral
assessment in addition to the performance results. Initially, 90% of the appraisal focused on
the results, i.e., what had been achieved, and 10% focused on the behaviour, i.e., how it had
been achieved. This seemed problematic to the management since results could be excellent
but management style might have been unsatisfactory. In 2009, the behavioral assessment
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portion was increased to twenty percent, and was again modified in 2010 to thirty percent for
people managers. The purpose was to assess and develop behavioral competencies desired in
the people managers and leaders in the organisation. The appraisal was strongly linked to the
Internal Value Creation (IVC) index and Leadership Expectations in gauging performance.

For dialogue and development to assist in the appraisal process, 360o feedback was used. It
focused on leadership, measuring experiences, views and attitudes along with principles and
values. Objective facts, intelligence and social skills were purposely omitted in the process
(Exhibit 10). A personal improvement plan helped to prioritise and work on weak areas in the
future (Exhibit 11).

Naushad Javed explained:

Society does have an impact on what we bring to the organisation. We have a

patriarchal society with high power distance. We have consciously tried not to let
those things enter our culture. As for processes, we have faced resistance. Leadership
refused to admit that feedback is correct since receiving feedback from juniors is not
the norm. It is only now after five or six years that the leadership is listening to what
people have to say.

The management believed that succession planning needed improvement. They wanted to
ensure that the pipeline was strong enough to replace even Telenor Pakistan's star performers.
In early 2009, the 360o feedback initiative was gaining momentum. Feedback data was
compiled and analysed by OD employees. The feedback was shared by the VP’s through one-
on-one sessions. Feedback was given by a certified Psychometric Analyst from the British
Psychological Society. All Directors and Vice Presidents were given this feedback. Most of
them received it well. The person giving feedback had access to three different diagnostic
tools and could thus triangulate. HCD/OD management was satisfied that things were
moving in the right direction and HCD/OD was on course to give feedback to all 500 people
managers in the organisation.

Employees with high potential and abilities were tracked based on aspirations, engagement
and ability. Line managers followed such people and provided exposure. They were given
preference and possibly international assignments as well. The company did not have any
structured form of career planning process. However, performance management and
development plans existed for employees with potential for advancement, including whether
a certain individual was ready to move up immediately or in a year or two.

MOST PREFERRED EMPLOYER ONCE AGAIN

Nearing the end of 2009, Telenor Pakistan once again was chosen as the most preferred
employer for their HR practices in a survey conducted by rozee.pk, an online recruitment
company. To make the decision, a poll was developed for visitors and registrants of the
website about their perception of top ten HR brands of Pakistan from 2005 to 2009.
However, the management realised that the next year would be very critical for Telenor
Pakistan in the quest to maintain this consistent achievement. With the intention to emulate
this feat next year, the management persisted diligently with the employee assessment
initiative according to the OD mandate and eagerly awaited the results.
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EMPLOYEE ENGAGEMENT

The Internal Value Creation (IVC) Model, a Group initiative channeled through HCD, was
introduced as a gauge of individual and organisational performance in 2005 (Exhibit 12). An
index was established which was updated each year. Results for the first four years showed
consistent improvement (Exhibit 13). Comparisons with other Telecom giants in Asia
reiterated the exceptional standards of Telenor Pakistan (Exhibit 14). In 2009, the IVC was
replaced with the Employee Engagement Model (EEM) that was implemented internationally
by the Telenor Group and was deemed to be more closely linked with business performance
(Exhibit 15). The engagement index was an additive combination of pride, satisfaction,
advocacy and retention measurements. The correlation between this index and customer
satisfaction was also calculated. The results for 2009 were also quite satisfactory using the
new model (Exhibits 16 and 17).

Telenor Pakistan identified the need to continuously improve business processes as well. The
Six Sigma initiative as well as the Operational Excellence initiative helped in effective
management, enhancement in employee productivity, and improvement in the quality of
services provided. New products and processes were designed with reduced error rates and in
quicker time. The main aim was to surpass competitors and thus establish a competitive
advantage in the industry.

TELENOR GLUE EFFECT

The Telenor Glue effect, a byproduct of the strong culture, was a phenomenon which kept
employees from leaving the organisation. As the name suggests, it was an intangible binding
force which prevented employees from leaving Telenor Pakistan. A survey based on exit
interviews was conducted which showed that in monetary terms, a new offer had to be 40%
in excess to the employee’s salary at Telenor Pakistan for him/her to contemplate leaving the
company. Better jobs were also not available in the industry. Even places abroad such as the
Middle East were not readily accessible due to factors such as the 2008 global economic
crisis. At the same time, positions in the top management were already filled and no more
space for vertical movement existed until someone at the top left.

Moving on, the organisation faced a few other challenges which needed to be addressed.
Initially, employees moved up the hierarchy very quickly, with some personnel being
promoted up to three times in five years. Expectations from the newer employees were
inflated but vertical growth was slowing down. Nonetheless, the ratio of internal promotions
to external recruitment was a staggering 72:28 for all assistant managers and above.

The average age in the organisation was 28 years. The management felt that the rapid
organisational growth during the first five years and a young work force in the organisation
resulted in a situation where several managers were functionally very competent, but lacked
experience and maturity on the people side. One of the OD's mandate was to help these
young managers develop and mature quickly in their leadership and people management
skills.

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CHANGING TIMES

As the organisation matured, Jon was concerned about several issues and challenges faced by
the organisation. The telecom market was maturing quickly, resulting in a slower expansion
of the customer base. Intense competition was gradually driving down prices, making it
increasingly more difficult to earn that extra rupee of revenue. The need was to shift the
focus towards operational efficiency rather than rapid expansion. New and innovative
initiatives were needed to cater to the shift in consumer demands as well as the requirement
for better value added services. Company processes needed to be reexamined and
streamlined. The government was always causing distress with the imposition of additional
taxes as well as questionable practices which were hindrances in Telenor's goal of remaining
honest and transparent. The increased militancy and bomb blasts throughout the country
posed a great threat to the stability and smooth functioning of the organisation countrywide.

On 5 October 2009, Telenorians throughout the country gathered in Lahore to celebrate “My
Day,” an annual company get-together organised to allow Telenor employees to interact and
develop special bonds with each other and hence to increase their affiliation with Telenor
itself. Over two thousand employees participated in the event and the function was a
tremendous success. However, considering the security situation in the country, it was
decided that ‘My Day’ would not be held the following year since that would be too much of
a risk to hold such a large gathering in one place. Some managers were concerned about the
impact this cancellation might have on the employees and the company culture.

The canceling of ‘My Day’ sent shock waves throughout the organisation. This event was a
key component of the unique culture at Telenor. This culture which had evolved slowly into a
potent force was clearly what separated Telenor Pakistan from its competitors. Several
managers felt that preserving and guarding that culture in the future would have to be a top
priority if Telenor Pakistan wanted to maintain an edge over its competitors.

IMPACT OF THE TELENOR GROUP

The Telenor Group supported Telenor Pakistan financially and in many other aspects.
However, some managers felt that culturally, the Group was trying to interfere rather than
play a constructive role. Karl felt that Telenor Pakistan's culture was in many ways similar to
the Norwegian culture, which was egalitarian in nature. Telenor Pakistan’s culture was built
on several elements taken from the Corporate Headquarters such as the Values and the Code
of Conduct. However, several managers at Telenor Pakistan commented that the
organisational culture at Telenor Pakistan was still unique and different from Group Telenor
culture in many ways. Several people who visited Telenor Pakistan’s office in Islamabad used
to wonder how the organisation was able to maintain such an egalitarian culture while
situated in Pakistan, a country generally known to have a culture of high power distance.
Employees from Telenor Pakistan were occasionally called to Norway to be “injected with
the Telenor DNA.” Some felt that this was just a procedure in which the Group observed
them until reservations that existed were eliminated.

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 05-744-2010-1

OPERATIONAL EXCELLENCE AND CULTURE

Due to the changing business conditions from a high-growth to a maturity stage, Operational
Excellence was being given due emphasis, which involved the efficient use of existing
resources. Support for this needed to be generated and the intent needed to be communicated
proactively.

Preserving the culture was an uphill task and a lot of challenges were anticipated. The
changing external environment and Operational Excellence initiatives seemed to have an
impact on behaviour and norms. Internal change was also taking its toll. The composition of
vice presidents kept changing regularly. In the Commercial Department alone, 3 different
Vice Presidents (VPs) were seen over a period of just five years. There was also a high
turnover rate of foreign VPs who might not have understood the unique culture of Telenor
Pakistan. These realities were being noticed and the organisation needed to devise a plan of
action to counter these anticipated problems.

CURRENT CHALLENGES

Looking ahead, many hurdles lay in the path for Telenor Pakistan. The Telecom market was
reaching a saturation point in Pakistan. Even though yearly inflation was hovering around
10%, the intense competition forced Telecom operators to reduce prices by as much as 15%.
The margins were paper-thin and the cost structure needed to be reexamined. Not only was
inflation on the rise, fuel prices were skyrocketing resulting in additional operational
expenses. Focus was shifting towards providing data based services on the mobile phone
such as cheap internet access and banking services. Easy Paisa was one of the initiatives of
Telenor Pakistan which was intended to cater to this shift in consumer demand. Financial
services were anticipated to give 10% of Telenor Pakistan's revenue by 2013. A license was
also required for a 3G data network. Gaming would only be possible for certain mobile
phones. Although demand in urban areas was increasing, which provided a potential market,
Telenor Pakistan's management realised that diversification was more important than
expansion since the increase in demand was not expected to be substantial.

Rightsizing and Operational Efficiency were pressing issues. The Six Sigma initiative did
exist but wastage needed to be minimised and lavish expenditures were to be avoided.
Profitability was being significantly affected by the current management of expenses thus
new initiatives and strategies for operational efficiency were important.

Commenting on this, a manager said:

We need to be operationally efficient which asks us to spend wisely, if the rationale is

there, you will get the money. It's not that you will cut costs to the extent that you will
start hurting the bone or the muscle. First few years, you think of expansion and not
costs but now being asked and asking people to think twice before spending money is
a very sensible activity.

Karl mentioned:

I come from more mature organisations and mature markets. I would say our
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weakness is that we are a young organisation. We need to change and mature. It's
more of a challenge than a weakness. Another weakness may be that overconfidence
and complacency might creep in. We are not at the top yet. We have built a quality
network and a solid organisation and now we need a good return on our investment.

The business, operational and cultural challenges were beginning to affect people, processes
and systems. The culture was changing according to many employees and the introduction of
new and innovative processes, and modifications to existing ones were being made. The
systems were continuously monitored, improvements were suggested and processes were
streamlined. However, some managers were still resisting the change. They felt that the
organisation should not change the strong culture that had been created over the last five
years and had worked so well in the past. These managers felt that the approach of changing
the organisational culture in response to the changing external business environment was not
the right approach.

On 5 August 2010, Telenor Pakistan received the Best Place to Work Award by the Pakistan
Society for Human Resource Management (PSHRM) and Engage Human Resources in
Karachi. This was termed by several managers as a significant achievement amidst the
changing market dynamics and renewed organisational emphasis, and was a source of
encouragement for the organisation moving forward.

THE FUTURE: THINKING AHEAD

Jon believed that although the company had tremendously benefited from its unique culture
and had gained a significant competitive advantage, the maturing market and increasing
competition required the organisation to streamline processes, focus on efficiencies, and
control costs. The company needed to learn to move fast from a high-growth start-up
operation to an organisation where tighter controls were needed.

While commenting on any obstacles that he foresaw in this process of organisational change,
Jon stated:

I don’t see any brick-wall obstacles. However, I would like to see speed in
acceptance. Because if I am stuck somewhere in the middle, I have an organisation,
where you still have some people who want to do it the new way and some who want
to do it the old way. That creates organisational conflict. So for me, to say that I use
the organisation as a competitive advantage, I must make sure that all 2,600
employees are on the new way. Otherwise there are dysfunctions. To me it is speed.
It’s got to get done fast. Otherwise I am stalled in decision making.

Although the Employee Engagement Index did exhibit very promising results this year, Jon
felt that the changing external environment opened up the door to many questions. Should
the culture change in response to the changing external environment? If changes are
necessary, what aspects should be focused on? How would these changes be implemented?
What would be the repercussions of these changes and could Telenor Pakistan absorb these
changes while still retaining the essence of the culture that employees had embraced and
learned to love?

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 05-744-2010-1

Jon stated:

Telenor Pakistan stands for change and is a catalyst for development. This company
aspires to be healthy in business and at the same time to positively impact the
progress of Pakistan. We want to inculcate a spirit in the individual that by working
for Telenor Pakistan, you are helping Pakistan to become a better place.

Jon pondered over his options to align the company with the changing market dynamics as
fast as possible, while preserving the core elements of culture that earned this company the
award for being the most preferred employer twice in the last three years.

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 05-744-2010-1

Exhibit 1

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

Growth and Revenues of the Telecommunications Sector

Source: PTA website

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 05-744-2010-1

Exhibit 2

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

Annual Cellular Subscribers for Various Operators

Annual Cellular Subscribers

Mobilink Ufone Zong Instaphon Telenor Warid Total
e
2003-04 3,215,989 801,160 470,021 535,738 5,022,908

2004-05 7,469,085 2,579,103 924,486 454,147 835,727 508,655 12,771,203

2005-06 17,205,55 7,487,005 1,040,50 336,696 3,573,660 4,863,138 34,506,557
5 3
2006-07 26,466,45 14,014,044 1,024,56 333,081 10,701,33 10,620,38 63,159,857
1 3 2 6
2007-08 32,032,36 18,100,440 3,950,75 351,135 18,125,18 15,489,85 88,019,812
3 8 9 8
2008-09 29,136,83 20,004,707 6,386,57 34,048 20,893,12 17,886,73 94,342,030
9 1 9 6

Source: PTA website

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 05-744-2010-1

Exhibit 3

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

Revenues of Various Cellular Operators

Note 1: Figures are in millions

Note 2: Instaphone's license was terminated by PTA and thus was no longer a
competitor

Source: PTA website

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 05-744-2010-1

Exhibit 4

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

Telenor Pakistan's History

Source: Telenor Pakistan Website

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Exhibit 5 (p1 of 4)

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

Stories depicting Telenor Pakistan's Values

BE RESPECTFUL

Each time we look at a person with a disability, we try not to remember the meaning of the
word ability. Although I always believed I was very open minded about people with
disabilities, an induction of one batch in to our call center employee base forced me to
challenge that notion.

This entire batch of colleagues had come in through the Khuddar Pakistan program. As they
became a regular sight on my floor and in the café, or other areas of the office, it began to
bother me. It was not because I felt something bad towards them, but maybe because I felt
bad for them. It was something I never thought I was capable of doing, and had never
thought it necessary. As time passed I became more and more confused about my feelings for
our new colleagues. Not knowing how to show proper respect to them I avoided them so I
wouldn’t get in to any unwanted situation.

After a week, guilt got the better of me because it felt like I had let myself down. It was then
that I decided to talk to one of them when I got the chance. So, one day as one of them was
having his lunch, I just sat beside him and asked how he was doing. Completely oblivious to
my motives he answered me with a smile, which gave me the confidence to talk further.

For the next 20 minutes or so I chatted away with my new found friend about life and noticed
how ordinary and normal he was, just like the rest of us. I found that he too was well
educated, ran his own house and helped his parents out, being the only son. He too had the
desire to make it big in life. While he communicated his aspirations of life, it was clear from
his voice that he desired no special treatment. There was only one difference between me and
him and that was courage. He had so much more of it than I did. And more importantly, he
had his pride.

That one conversation truly opened my mind about people with disabilities. It made me
aware of the fact that these courageous people deserve more respect then most of us, if only
for the sheer determination and strength of will they show. They deserve our respect because
they inspire us with their courage as they stand up everyday and swim against the current.
They aspire for the same things in life we do. I would say that it was after this experience of
being inspired by special people that I shed my guilt and discovered respect for my associate,
understanding that it was strength of character and pride that differentiated people, and not
the ability to do, or not do something.

Mohsin H. Ansari
Executive Team S&P
CRD
Telenor Pakistan

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 05-744-2010-1

Exhibit 5 (p2 of 4)

MAKE IT EASY

In the ecosystem of a multinational, interns are small and insignificant, possibly even lower
than a slug. You get used to people looking right through you, never responding to emails and
often thinly veiled impatience at the interruption of more important work. But it was as an
intern at Telenor that I first learnt how completely some people espouse the values of our
company. You see, I was an intern in Internal Corporate Communications before I became an
employee.

My work as an intern had me pestering a lot of people in different departments, often at a

managerial level and above. I employed all possible methods of stalking my prey. I lay in
wait near their seat, I followed trails they had left behind and all but pounced on many an
unsuspecting, or quite often, suspecting people. In short, all my investigative and
interrogative skills were honed and developed... all to get information out of them people for
the portal.

Imagine my surprise then, when one of the people I had emailed with no hope of ever hearing
back, walked down from his floor to mine, with all the information I had asked for. This was
the Director of Procurement, and he discusses the nature of my query at length. He even
pointed me to the fellow in his department who would help me further. While I was reeling
from the shock of this, the VP of Strategy set up a meeting with me and proceeded to discuss
my requirements at length. You see, for someone still wet behind the ears, and fresh out of
university, this kind of culture makes a lasting impact. I quickly made up my mind to make
sure I apply to Telenor Pakistan as soon as I graduated.

Two years later, I have moved up the food chain slightly. I am no longer an intern, but I am
still with Telenor. When I look back, these two people demonstrated to me that making it
easy is not just a redundant sentence written in our company’s literature, but an actual way of
work. It was refreshing to see those values being lived.

Learning from my experiences, I now always try to be nice to the interns!

Saman Saleem
Exhibit 5 (cont’d.): Stories depicting Telenor Pakistan's values (Source: Company
documents)
OD Executive
Human Capital Division
Telenor Pakistan

BE INSPIRING

It was back in May 2009 when I first heard about the mass exodus of people from Swat, Dir
and Buner Districts to other parts of the country, due to an influx of terrorism and conflict in
the North-Western areas of Pakistan.

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 05-744-2010-1

Exhibit 5 (p3 of 4)

One day at work, I was discussing this with a colleague. It pained us to imagine their plight.
It occurred to us that the least we can do to help our fellow countrymen is to collect funds
from our department and give them to some trusted NGO.

That very evening we collected 30,000 rupees from our floor by going desk to desk. Since
our peers were putting their trust in us, we were inspired to go there ourselves and help the
internally displaced people first hand. I shared this idea with my university friends now
working in other corporations in Pakistan, and inspired them to raise funds over there.

After we engaged in some aggressive fund-raising, we were able to raise a substantial

amount. What made our pitch appealing was the promise that we would be undertaking the
whole project ourselves. The inspiration paid off via the overwhelming response we received.

We raised funds from our friends, colleagues, alumni, families, employers and even total
strangers through spreading our reports for awareness and inspiration. We went out to the
villages in Mardan and Buner where the displaced had arrived. With the help of local
volunteers (after thorough verification) we personally handed over the packages to individual
heads of 2700 families which meant food for roughly 22,000 persons.

To date we have raised PKR 3.7 million ($45,000) and distributed rations worth more than
PKR 2.7 million ($ 33,000) directly to 2700 extremely needy displaced families in three
rounds.

We are all volunteers, have zero overheads, have used personal contacts and acquired rations
on subsidized rates. We inspired our corporate management as well as strangers through our
factual reports. We have executed each step personally. We went on our own where no one
else dared to go, and were the first ones to provide relief in most areas.

Our team is now 20 people strong. We continue to raise more funds for rehabilitation projects
in the district of Swat. Through our actions, we have inspired many friends and strangers
alike to donate their time/money for this noble cause and have created awareness about the
plight of our fellow countrymen.

Umar Ashraf
RF Planning Central
Telenor Pakistan

KEEP PROMISES

It was 10th April, 2009. I had been with Telenor RF for around 5 months then. It was a dark
day for Telenor North. A few regional BSCs were burnt in an accident early morning and our
whole Network in more than 5 areas was down. Working as a team, we prepared all data for
site recreation, NBR Additions and dispatched our resources for on-field drive tests (in case
the sites went up). It had been a tough day, and it was around 10pm when my manager called
me. She required me to coordinate with the BSS Operations team, as they were facing some
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 05-744-2010-1

Exhibit 5 (p4 of 4)

issues in site recreations and needed someone with RF Expertise.

It was a promise that I had made to Telenor subscribers, as a TP RF Employee, for better
coverage and quality. This was a goal that I was groomed for, to keep our customers first”. I
was willing to put in all my efforts to keep my promise.

I decided to take control of the situation and went in to join the Operations team at the
Islamabad office. I shared all the required data with them and made sure that site recreations
in the NetAct flow smoothly. I started coordination with our drive test resources assigned for
the task, and made sure that they were checking coverage and issues at the right place, and
the right time. After each site recreation, I would call in our drive test resources and
coordinate with them to check the site and its neighbors, thus ensuring effective and timely
testing. I raised all issues with BSS Operations immediately and sent out the drive team again
for re-testing, right after NetAct configuration issues were resolved by the NSN team.

It was around 3a.m. in the night when I finally got the time to call home. But our problems
weren’t over yet; the next issue we faced was to check the sites where night access was not
allowed by TP security. I decided that no site was going to be left unchecked and thus started
trying to trace telephone contacts of our site guards in remote areas. After rigorous efforts
that actually continued till the next afternoon, I coordinated with the drive team resources,
guards and relatives of our colleagues in the affected areas to ensure that each site has been
created successfully, and that subscribers were not facing any issues. Through coordinated
efforts, coverage was restored in all the affected areas, and all sites were re-homed in around
24 hours. But it didn’t end there; dedicated efforts were required to improve the KPIs of the
affected areas.I worked as part of a team to ensure the optimization of all re-homed sites for
the next couple of months, keeping in mind all the time our promise to Telenor subscribers,
that they always come first.

Khizar Mahmood Zia

RF Optimization, North
Telenor Pakistan

Source: Company Documents

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 05-744-2010-1

Exhibit 6

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

Open Space Environment at Telenor

Source: Company Documents

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 05-744-2010-1

Exhibit 7 (p1 of 2)

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

The Telenor Way

The Telenor Way

Celebrating the Way we Work

The inspiration behind Telenor Pakistan’s rapid growth in the telecom industry can be seen as
a translation of our way of work and guiding principles. Summing it up, this is what sets us
apart from our peers in the industry in terms of our achievements and successes.

Globally, Telenor Group has defined the way we work as the Telenor Way, an initiative
designed to be a permanent part of our day to day activities. It is all about living our global
brand under one umbrella. Our global uniqueness in this regard is the Telenor Way, a blend of
the following factors in terms of how we do our business:

Our Vision – We exist to help our

customers get the full benefit of
communications services in their daily
lives. We are Here to Help
Our Values – Be Inspiring, Keep
Promises, Be Respectful, Make it Easy
Our Codes of Conduct
Our Governing Principles, and
Our Leadership Expectations

By sustaining the above, we have been able to

achieve not only excellent customer
relationships, but have also been inspired to
deliver on our vision. The work environment
at Telenor ensures an optimal balance
between responsibility and accountability,
based on an absence of barriers and high trust.
The adaptation of the above basic standards in
our work roles are a part of the Telenor Way, driving us forward to achieve, inspire and lead.

Where technological breakthroughs and developments are standard across the industry, it
boils down to the uniqueness of our culture that sets us apart from competitors. Here, the
emphasis is on how we do our business and how our people manage themselves. This also
acts as a common bond between us all, focusing not on what work we do, but rather how we
do it, being our source of identity, strengthened by the culture and our way of work. In short,
the Telenor Way gives us our distinctive personality.
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 05-744-2010-1

Exhibit 7 (p2 of 2)

Through the years, the Organization has seen a shift in focus from business orientation
towards people orientation, primarily because we recognize that it is the people who are
responsible for the delivery of business goals, and their development in this regard is
paramount; you see, the Telenor Way is all about us!

Every single one of our people is the custodian and representative of the Telenor Way. For
this purpose, we must live our brand to remind us that we are all a part of a great system of
work, and this system is dependent upon how well we remember, observe and enact the
principles that make the Telenor Way a success. Cascading these principles down to our
people will be a healthy reminder of what makes us who we are, and what differentiates the
better from the best within this highly competitive industry. And rest assured, we are the best.

Source: Company Documents

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 05-744-2010-1

Exhibit 8

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

Employee Statistics for Telenor Pakistan 11

Source: Company Documents

11
Note: “Emps Joined” includes employee turnover and is net addition of employees for the year (joined minus left).
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 05-744-2010-1

Exhibit 9

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

Recruitment and Selection Process

Source: Company Documents

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 05-744-2010-1

Exhibit 10

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

Telenor Pakistan 360o Feedback Process

Source: Company Documents

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 05-744-2010-1

Exhibit 11

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

360o Feedback based Personal Improvement Plan

Source: Company Documents

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 05-744-2010-1

Exhibit 12

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

IVC Model

Source: Company Documents

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 05-744-2010-1

Exhibit 13

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

IVC Results for the First Four Years

Source: Company Documents

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 05-744-2010-1

Exhibit 14

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

Main IVC Indices with Benchmarks

Source: Company Documents

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 05-744-2010-1

Exhibit 15

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

Employee Engagement Model

Source: Company Documents

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 05-744-2010-1

Exhibit 16

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

Employee Engagement Index

Source: Company Documents

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 05-744-2010-1

Exhibit 17

TELENOR PAKISTAN - CULTURE AND COMPETITIVE ADVANTAGE

Employee Engagement Model Results for 2009

Employee Engagement Index Item Summary

 Engagement is well above average. Employees are proud to work at Telenor

Pakistan and would recommend Telenor to others.
Telecom
% Fav
Norm

Employee Engagement Index 54 30 8 63 83% 72%

I am proud to work for Telenor Pakistan. 74 21 3 96% 77%

I would recommend Telenor Pakistan to others as

a good place to work. 66 29 3 94% 78%

Overall, I am extremely satisfied with Telenor

Pakistan as a place to work. 49 38 84 88% 76%

I rarely think about looking for a new job with

another company.
25 30 18 19 8 55% 59%

Strongly Agree Agree Neutral Disagree Strongly Disagree

Source: Company Documents

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