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05-763-2014-1

ASSESSING LEADERSHIP POTENTIAL AT PTCL


In the summer of 2012, Mr Shahzad Safdar Khan, Executive Vice President of Talent Management and
Learning, Pakistan Telecommunication Company Limited (PTCL) pondered over results of the leadership
potential assessment conducted for 137 senior executives of PTCL. The idea of leadership potential assessment
emanated from the desire of the CEO to identify and groom individuals who had the potential to lead PTCL to
become a competitive, progressive, and modern organization. The assessment results were reported for each
executive individually as well as for the overall organization. After reviewing the results of the assessment, Mr
Khan had several concerns. One of his concerns was the reaction of the participating executives to their
respective assessment results. Some executives received low ratings from the assessors despite their
commendable performance reports at PTCL. He wasn’t sure how to handle this discrepancy in performance
analysis. Additionally, there was scepticism regarding the evaluation of the assessors, whether it was a valid
predictor of an executive’s performance on the job or not. Some executives were already questioning the
reliability and legitimacy of the potential assessment exercise.

Mr Khan needed to decide his plan of action on having received the assessment results. This raised numerous
questions: What options existed for the follow up? What would be the implications of various options on the
overall motivation of the executives as well as on the effectiveness and acceptability of the leadership potential
assessment process? What needed to be done to develop leadership excellence at the organizational level?

The PTCL Organization

Pakistan Telecommunication Company Limited (PTCL) was the oldest and largest telecommunication company
in Pakistan. The company provided and enforced policies for telephonic services throughout the country. It was
still the backbone of telecommunication infrastructure despite the arrival of other telecommunication
corporations. The company managed and operated 2000 telephone exchanges across Pakistan which provided
the largest fixed-line network in 2009. Data and backbone services such as Global System for Mobile (GSM)
communication, Code-Division Multiple Access (CDMA), Broadband Internet, and Smart Television were a
growing part of its business.

History1

Posts and Telegraph Department was established in 1947 (see Exhibit 1), after Pakistan became an independent
sovereign state. This was followed by the establishment of Pakistan Telegraph and Telephone Department
(T&T) in 1961. Pakistan Telecommunication Corporation (PTC) took over operations and functions from
Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This
coincided with the competitive policy of government that encouraged private sector participation and awarded
licenses for cellular, card-operated pay-phones, paging, and lately, data communication services.
In 1991, Government of Pakistan (GOP) announced its plans to privatise PTC. In 1994, GOP allotted six
million vouchers2 exchangeable into 600 million shares, at par value of Rs 10/- per share for general public.
These vouchers were converted into PTCL shares in mid-1996. In 1996, through Pakistan Telecommunication

1
The content in this section have been extracted from the company documents.
2
Voucher is a bond which has a certain `monetary value.

This case study was written by Research Associate Quratulain Haider and Professor Anwar Khurshid 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.

© 2014 Suleman Dawood School of Business, Lahore University of Management Sciences


Assessing Leadership Potential at PTCL 05-763-2014-1

(Reorganisation) Act, Pakistan Telecommunication Company Limited was formed and listed on all stock
exchanges of Pakistan.

In 2005, with an employee strength of 65000 and 5.7 million fixed local loop3, 0.8 million wireless local loop4,
and 14 million GSM mobile customers, Privatisation Commission of Pakistan held an open bidding in order to
sell 1.326 billion shares with management control of PTCL. Etisalat, a 100 percent owned subsidiary of
Emirates Telecommunications Corporation, was the highest bidder for a 26% stake in PTCL.

Etisalat owned 90% of a consortium that paid $2.6 billion for a 26% stake in PTCL in 2006, giving the UAE
firm a 23% holding. However, Etisalat still owed $800 million on the deal, which included transferring
ownership of about 3,000 real estate properties to PTCL from the government. Some of those properties
remained with the state and negotiations between the parties were ongoing.

The financial performance of PTCL in terms of its revenues, profit, share price, and earnings per share, from
2005 till 2010 are given in Exhibit 2.

Managerial Hierarchy

The management hierarchy of PTCL is shown in Exhibit 3A, with seven layers of management starting from
the CEO down to the level of Assistant Manager. The salary grades ranged from BPS 5-17 for the Assistant
Manager to BPS-21 for the Executive Vice President (EVP). Please refer to Exhibit 3B, Exhibit 3C and
Exhibit 3D for detailed organizational charts.

Talent Management and Learning

Human Resource (HR) department had been responsible for conducting training and development activities in
order to support the company in analysing specific manpower requirements. The department thereby intended to
develop and implement training and development activities in order to meet the current and future competency
requirements of PTCL. Therefore, HR department introduced Talent Management and Learning function to
identify whether existing skills of the executives matched with the competencies required by PTCL. Mr Khan
was of the view that PTCL needed to have a clear roadmap of activities to nurture the skills of its employees by
providing high quality training associated with upward mobility in the organization.

Talent Management and Learning at PTCL, according to Mr Khan, was playing an essential role in changing
PTCL from a government sector to a corporate sector organization. The executive management of PTCL
believed that the role of Talent Management and Development would become more significant in a situation
where the need to transform organizational culture had been identified as the most glaring problem and a
challenging impediment on the way to organizational growth.

Leadership Potential Assessment6

PTCL engaged a local consultant to conduct a series of activities with the aim of undertaking an objective
assessment of the skills and competencies of members of top tier cadres across the organization. The intent of
the assessment was to highlight the present strengths and development areas of each member of the senior-level
team so that appropriate training programmes could be planned towards enhancing leadership and managerial
capacity within the organization. Another objective was to identify potential successors to the top management
of PTCL.

The scope of work for leadership potential assessment was mutually agreed upon after discussions between the
local consultant and the representatives of the HR department (see Exhibit 4). The consultant administered,
coordinated, supervised, and carried out the assessment process themselves. The assessment staff was
comprised one Director and several assessors who were well-trained in the process of conducting assessment.
The assessment process was followed by a leadership assessment analysis report and recommendations for

3
Fixed local loop is a wired connection from PTCL office in a locality to its customer’s telephones in residential areas and businesses.
4
Wireless local loop is a wireless connection through signals from PTCL office to its customer’s internet devices (cell phones, laptop etc) in
residential areas and businesses.
5
Basic Pay Scale (BPS): BPS is widely used pay scale system in Pakistan. Most of the Government Departments and Organizations follow
BPS system.
6
The content in this section have been extracted from the company documents.
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leadership development for PTCL. Furthermore, individual assessment reports were provided for each candidate
along with suggestions for further development.

Mr Khan and his team decided that the executives from the cadres of Senior Executive Vice President (SEVP),
Executive Vice President (EVP), and General Manager (GM) would be sent for assessment. The next question
was how many executives should be assessed. One option was to select individuals based on their past
performance and send them for assessment. However, screening and selecting individuals for the assessment
could introduce selection bias which Mr Khan wanted to avoid. After deliberation with the CEO it was decided
that all employees from the above-mentioned three cadres i.e. SEVP, EVP, and GM would be assessed in order
to eliminate any preconditioned bias. A total of 137 employees were sent for leadership potential assessment
through random selection. However, in order to add diversity to each group, the management of PTCL tried to
add executives from all three cadres in each group which comprised 6–7 executives. The assessments were
conducted in Karachi, Lahore, and Islamabad.

Developing a Competency Model

A series of meetings were held between the consultants and the senior management of PTCL, with the aim to
identify specific leadership competencies to be assessed. PTCL reviewed the set of leadership competencies
defined by Etisalat (see Exhibit 5) as a starting point. The consultants presented a general design approach of
the assessment along with their recommendations on the competencies to be assessed. A customized
competency model for PTCL was thus developed after mutual consultation (see Exhibit 6), with definitions of
specific competencies to make them assessable in an assessment centre context. Level-wise descriptions of each
competency along with detailed behavioural indicators were then developed by the consultants and finalized for
the review and feedback of the HR department. The generic definition of these competencies as well as detailed
definitions for each employee level (SEVP, EVP, and GM) were finalized in consultation with the
representatives of PTCL.

Assessment Activities

Based on the understanding of the organisation’s business, and finalization of the competencies to be assessed
as per the mutually agreed competency model, a set of assessment activities/ exercises were identified and
developed by the consultants to measure various competencies. While designing the activities/ exercises, special
attention was paid to ensure that each competency was measured at least twice to provide the maximum
opportunity to the candidates to display their skills. The following activities were designed for assessment of
various competencies:

a. Group discussion activity


b. Role play 1
c. Role play 2
d. Written activity (inbox)
e. Analytical exercise (fact finding)
f. Personality test (Neuroticism-Extroversion-Openness Personality Inventory (NEO-PiR) and Thematic
Apperception Test (TAT))

The assessment activities were designed to be completed within a day for each candidate. The evaluators would
rate each candidate on specific leadership competencies as well as on their overall leadership potential.

Exhibit 7 describes the specific competencies to be assessed by each of the above activities, with the exception
of the personality test. A brief description of each activity is given below:

Group Discussion Activity

Four business cases related to events in the telecommunication sector were purchased from Harvard Business
School Publishing (HBSP). The cases were selected for use based upon their ability to cover all competencies
being assessed, familiarity with PTCL’s own position in the market and its internal challenges and for
representing strategic thinking in the telecommunication business.

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Cases were assigned randomly to various groups 7.Candidates were asked to collectively find solutions to the
issues, reach a consensus, and make a presentation for the judges. Candidates were also required to assume the
role of a specific functional manager and would present his/ her perspective to the assessors. The assessors
would observe the behaviours of the candidates during the group activity, ask questions particularly focused on
specific competencies, and probe those who had not actively participated during the discussion.

At the end of the prescribed time for the group discussion, the candidates were asked to make presentations for
the assessors, who represented the top management of the organization as described in the case. Each candidate
would assume the role of a specific functional manager and would present his/ her perspective to the assessors.
During this session the assessors particularly focused on asking questions related to specific competencies, if
they had not been adequately displayed during the group discussion. The assessors also probed those candidates
who had not actively participated during the discussion so as to give them another opportunity to display the
necessary skills.

Role Play 1 – Customer Interaction

This one-to-one role play was based on a scenario described in the inbox activity (described later) where an
email trail provided a history of issues related to service and customer satisfaction between a
telecommunications company and its customer. The candidate was asked to pretend to be the representative of
the telecommunications company and meet a senior management representative of its customer organization.
The objective of the meeting was not only to resolve any outstanding issues but also to manage the relationship
in a manner that would be advantageous to all parties involved. The assessor played the role of the
representative from the customer organization and cross-questioned ideas presented by the candidate who
played the role of the company representative. After the activity, scores were allotted to each candidate on the
tested competencies. As with the case studies, two different versions of this interaction were developed and then
randomly switched between assessed groups on different days.

This one-to-one role play was based around an interaction between a disgruntled employee (assessor) and the
boss (the candidate). The candidate was presented with a scenario about a motivated and hardworking employee
who was now facing personal problems and was also demotivated by recent company-wide changes. In the
midst of this demotivation a critical project needed to be completed within a specified time frame and the role
of the candidate was to motivate the disgruntled employee to cooperate. The purpose of this activity was to
provide candidates another opportunity in order to display their ability to lead a team in a one-to-one setting.
This activity was also designed to gauge how the candidate was able to interact and build relationships with
internal stakeholders as well as to motivate an employee towards task completion and to achieve results. After
the activity, scores were allotted to each candidate on the tested competencies.

Written Exercise: Inbox

The inbox activity simulated the candidate’s inbox after the candidate had arrived back to work after a brief
leave. The exercise aimed to simulate a typical business morning scenario wherein the candidate had to review
the contents of his inbox, identify, and then prioritize his emails. The candidate was required to make a series of
quick decisions regarding the relative priorities of various tasks, and decide which correspondences to respond
to, which ones to delay, and which ones to ignore. The candidate was then asked to respond to the identified
correspondences through email.

Analytical Exercise: Fact-Finding

The analytical exercise was based around a strategic decision to be made by the candidate. Here the candidate
was given a verbal brief about an imaginary company for which the candidate worked. After the verbal brief,
the candidate was provided a written brief prepared for his review. The candidate was required to analyse
specific aspects of the brief in an individual capacity, to arrive at a decision(s) and then present his/ her views to
the president of the company accordingly. The candidate presented his/ her ideas which were followed by
questions from the assessor in order to get a better understanding of the candidate’s ability in business and
strategic decision-making and risk-taking. This exercise also presented an opportunity to the quieter members of
the group to come forward and share their views in a one-to-one setting.

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Almost 140 executives were selected for leadership potential assessment. Each group comprised of 6-7 executives. PTCL management
tried to add diversity to each group by having one executive from each cadre.
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Three different briefs were developed for this activity, which were handed out to the candidates randomly
during the day. The details are given as follows:

a. Home Store: Expansion for domestic production and exports–had to choose between two cities for
investment.

b. Vehicle Tracking: A group of investors setting up a new business in their home country after a long
civil war–had to analyse the impact of infrastructure on business operations.

c. Leather Garments: A dairy farm wanting to expand its business through manufacturing of leather
garments–had to choose between domestic markets or export markets as key strategic focus.

Personality Test: Neuroticism-Extroversion-Openness Personality Inventory (NEO-PiR)

Neuroticism-Extroversion-Openness Personality Inventory (NEO-PiR) was a self-report inventory with 240


statements. The candidates were asked to rank themselves on a five-point scale ranging from “strongly
disagree” to “strongly agree”. They had to choose the option they believed described them in the most accurate
manner. A glossary was provided to the candidates for their assistance. Detailed instructions were given
regarding personality tests. However, low weightage was given to the test in the final competency scores. This
test was used as a support in order to validate observed behaviours in other exercises and activities.

Personality Test: Thematic Apperception Test (TAT)

The consultants conducted a Thematic Apperception Test (TAT) which had images of human beings in
different situations. These images were generally provocative without being straightforward or pointing in a
specific direction. The candidate was shown the cards, one at a time, and was required to narrate a story about
the picture on the card in the following order:

 What was being shown in the picture?


 What were the events that led to the situation in the picture?
 What characters were present in the image? What do you think their reaction would be?
 What do you think would be the outcome of the event?

The Candidates

Mr. Naeem Ahmed, Ms. Sobia Saleem, and Mr. Hammad Haris were arbitrarily selected for the purpose of this
case to capture the assessment process through the eyes of the participants. A brief description of the
experiences and impressions of each of the three participants is given below:

Mr. Naeem Ahmed graduated from University of Engineering and Technology (UET) as an engineer in 1991.
He served in a local telecom company 1991-1995. During his stay, he designed and implemented several
technical projects in Karachi, Lahore, and Islamabad. In 1994, he joined National University of Sciences and
Technology (NUST) for Master’s degree in Computer Science while still working. He joined PTCL in 1995 as
Assistant Division Engineer which was a standard first-level entry job in PTCL.

In 1998, he got another opportunity for higher education and joined Master’s degree in Telecommunication at a
foreign university. He completed his Master’s degree in 2000 and was promoted as Divisional Engineer in
2001. In 2004, he decided to do an MBA from another reputed foreign university. He came back in 2006 and
continued as Divisional Engineer. By the time he returned, PTCL had completely transformed into a privatized
entity and all Divisional Engineers became Managers. He was promoted to Senior Manager within a year of his
return.

Naeem Ahmed described his experience of the assessment exercises as follows:

The consultants started the day with their introduction and also briefed about the exercises
they would be conducting. They gave us a questionnaire of 260 Multiple Choice Questions
(MCQs) which we were supposed to do at any time during the day.

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The first activity was to read a case study about an Indonesian mobile company in 30 minutes.
The contention was that the company had a fixed budget and each presenter had to justify
their need in order to get the maximum of it. We had to divide the roles amongst ourselves
such as; finance, human resource, operations, etc. Majority of the people took the same roles
that they already had in the organization. So, I was left with the role of Chief Technical
Officer (CTO), the most stressing and tough role as it required some technical knowledge and
had to face pressure from all directions. However, there was a person who aggressively added
the role of processor to the list and played that role.

Nobody wanted to be the first presenter so the person with the role of a processor became the
first presenter and was heavily grilled by the CEO. Then I realized that these consultants
knew what they were talking about and they knew what they were doing.

I started my presentation with a question “If, as a technical officer, I refuse to provide you the
network then what will be the purpose of all these functions? What can the HR do if I don’t
provide the network?” I said that I should be strong because I had to provide the network to
the company. Therefore, I should be getting the money. And I quoted few statistics that I
could read from the case study in a hurry. I was asked by the CEO that “the company has 47
percent market share and the competitor has remaining 47 percent of the market share
however, there is another vacant area. It would be expensive to set up network there, however,
do you think that the company should expand?” I was of the view that if I had this
information then the competitor would also have had the same information. Therefore, I said
that I would concentrate on my 47 percent and would provide quality network to its customers
in exchange for their money. However, I would allow his competitor to expand as in my view
the competitor would burden out in six to eight months. I wanted to use those six to eight
months in order to make my customers happy as those customers would become my
marketing campaign through the word of mouth and then the remaining customers would be
willing to join my network. Therefore, I said I would need the money to transform. I was
asked whether I would transform with the same staff or I would hire a new staff. I wanted to
transform with the same staff as I did not want mistrust neither any misleading tensions at the
work place. I was able to complete my presentation in three to five minutes time.

Second assignment was to see a picture and develop a story about it. There I developed a
mind-set that whatever picture they would show, I would create something related to
teamwork, motivation, etc. When I was shown a picture, I thought it was a conference table
with many people sitting around it. However, the old and the young people were sitting
together. So I thought that it was a transition from one generation to another. In my view, the
son was taking over the business however, the good thing was that they were transferring the
knowledge also. And it showed unity and respect for each other. Another picture was where
labour was lying in the field. I thought that the picture showed a team where people shared
responsibility; they shared the toughness of the task and then relaxed at same time. The
picture according to my understanding showed bonding and equality amongst the team
members. The third picture showed a reflection of a clock. I was not sure about it and could
not remember what I said about that picture.

The third assignment was about a disgruntled employee who was leaving the organization. I
was given the task to convince that employee and not let him leave. So I asked him the reason
and was told that I had promoted a girl and not him however, this employee did the same hard
work. I said that, “You are leaving the project in the middle. If you want to leave, leave.
However, then you have to tell in the market that you have left a project in the middle. Then
what?” I told the employee to complete the project and made a commitment that I would look
into the reasons and would provide extra time to him. I also said that I would discuss each
task with him step by step in order to complete the project because in the current state the
employee had nothing to write as his accomplishments. I was able to convince the employee
to stay.

The fourth assignment was a case-let where I had to make an investment according to the
profitability of an area. I provided my reasons to the assessors and they asked me why would I
want this technology and why not the other one. There I realized my mistake and apologized
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for overlooking the technology part however, I stood for my decision about the area. Then I
completed my MCQs where I noticed that if I was asked something in the first question, I was
asked the complete opposite of it in twenty-fourth question. There I had to decide whether to
make up an answer or take the honest approach. I preferred the honest approach.

At the end of the day, I left with positive feelings and was excited and happy about the
experience.

Afterthoughts

In my view, people came to the assessment venue with three mind-sets; one was that the
company was creating another drama to lay off employees, the other was that the consultants
had taken the money and now they had to play so this exercise had no purpose, and the third
mind-set was what the company wanted to use this assessment in order to promote employees.
However, I knew that this assessment would be conducted as per policy. I thought that if I
would go there with a pre-conceived mind-set that would create problems for me. Therefore, I
decided to go there with the neutral mind-set and was prepared for the unknown.

Overall I thought I performed well and the feedback from the consultants I received suggested
the same (see Exhibit 8A). It seemed that I did better than most of the people. I think that the
consultants knew what they were doing and they did a good job of conducting their
assessment. I noticed about the strategy of the consultants that apart from the assessment they
were observing the participants closely. However, I enjoyed the first presentation the most.
The least enjoyable was the task to convince an employee to stay where I did manoeuvre the
employee a bit, and I did not like doing that.

I recall asking a question to the consultants during the first session of the day whether they
would consider the prevailing culture of the organization into account when conducting the
assessment. I thought that the environment of an organization played a major role in how
employees of an organization would behave or how they would be assessed. The consultants
said that culture was not part of the assessment however, that would be considered at another
level.

Ms. Sobia Saleem belonged to Multan and moved to Lahore at the age of 18. She graduated from Lahore
College for Women with a degree in Economics. Later she obtained an MBA from a reputed business school in
Lahore. She worked in various public and private sector companies before joining PTCL in November 2005, as
General Manager (GM) in Grade 20. Within two years she was promoted to Executive Vice President in Grade
21. Her primary responsibilities were in the area of Human Resource Management and Administration. She was
considered to be on a fast track at PTCL. She was the first woman to reach such a high level of senior
management position at PTCL. At that time, PTCL had a male dominated culture. There was hardly any woman
in the entire department. She had been receiving excellent performance reviews during her career at PTCL. She
later completed her Masters in Human Resource Management (HRM) from USA.

Sobia Saleem described her experience of the assessment exercises as follows:

Upon arrival of the venue of the assessment I observed that a case study was given to my
group. My group members along with me were given ample time to discuss and prepare our
roles. My role was that of an HR manager, however, there was limited time for presentation. I
couldn’t manage my time well while presenting to the board, represented by the assessors,
because I thought there were too many points to be covered in two to three minutes. I was
able to answer 70 percent of the questions well but could not understand one or two questions.
I wasn’t comfortable with the fact that few of my group members were from the commercial
side because in my view, they were smarter than me at analysing the case and relating to it.
The next assignment was about a company where they had manufactured batteries that turned
out to be defected therefore, the management had to recall the batteries. I had to come up with
a process in order to recall the batteries and had to provide solution for defected batteries. My
group along with me was asked to present the case study therefore, my group members and I
divided the roles among ourselves. All of us shared what we had to say on our role and
presented it to the board. I took two to three areas and one of them was HR.
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Next I was given a case-let where I had to analyse potential areas for investment and improve
profitability from the given data. I had to convince the consultant based upon my calculations.
It was an individual assignment, followed by MCQ’s. I had no clue how relevant these
MCQ’s were for such a high leadership role. However, I saw other people ticking the
answers, so I started ticking as well, where I hardly felt like using my intellect.

When I left the venue of the assessment at the end of the day, I was happy and excited about
my experience. However, I was curious and a bit apprehensive about my performance.

Afterthoughts

In my opinion, this exercise would have been good if it would have been for the purpose of
training only. However, if it was for assessment, it was not well-planned as it mixed
candidates from all departments and they were assessed on the same parameters regardless of
their expertise. Therefore, I was not comfortable with the fact that few people from
communication department and few from operations department were also part of my group.
According to me, these people communicate with customers and evaluate their business
progress on daily basis as part of their regular jobs. Therefore, they would automatically
perform better in analyzing the case study. I felt that I was at a disadvantage since there was
no role for me that was close to my job function at PTCL.

I think that I have been performing very well at my job. I joined PTCL in 2004 in Grade 20 as
a GM, and was promoted to EVP in Grade 21 in two years. I did very well here. I was one of
the youngest female GM at PTCL. I had been given so many additional responsibilities with
additional remuneration and so much appreciation from the board of PTCL. I have been
getting very good pay raises over the last several years and positive feedback from my
management about my performance.

I was shocked to learn that I was given a low rating by the consultants (see Exhibit 8B).
Overall they had put me in “Clear risk” categories. This was a major setback for me.

Since a majority of the employees got “needs improvement” in their assessment reports, they
have raised concerns about the competency of the consultants to perform leadership potential
assessment. It seems to me that the management of PTCL has realized that it might not be a
suitable way to analyse and manage the leadership potential of employees. This exercise has
demotivated everyone who-so-ever was part of it. Therefore, in my opinion, although it was a
good idea, but a good idea when not implemented properly, might actually discredit and
blemish things for the company.

The consultants conducted a meeting with me to give me feedback on the results of the
assessment. They gave me a letter (written assessment) but asked me not to read the letter
there and then, but to go home and read it. I believe the consultants lacked the courage to
share candidly their feedback. During the feedback session, I was given the impression that
there were a few areas of development. When I opened and read the letter, I realized that they
had given me almost lowest scores on everything. I did not score any “Exceeds Expectation”
and not even any “Meets Expectations” rating. This was very disappointing for me.

Hammad Haris completed his MBA in Banking and Finance in 1996. He belonged to Islamabad and came back
after exploring opportunities in Karachi. After graduation he worked in the banking sector for a few years. Later
he joined Securities and Exchange Commission of Pakistan (SECP), and worked for four and a half years. In
2004, he joined Pakistan Telecommunication Authority (PTA). PTA was about to regulate its team. He thought
that he would learn a lot from the PTA opportunity, as he wanted a sense of achievement in his life. Finances
were not a major concern for him at that time. While working in PTA, he looked after deregulation process,
managed tariffs and handled few commercial issues related to the operators. He left PTA and joined PTCL in
2008.

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Hammad Haris described his experience of the assessment exercises as follows:

Upon arrival at the venue of the assessment I observed that the first activity was to solve a
case. I started reading the case. The case was taken from India, and was about Nokia having
some problems with its battery. I was supposed to find a solution to the battery problem. I was
given 30-45 minutes, therefore; I decided not to rush through the case. I became
Communications Manager for Nokia and wanted to talk as such without referring to PTCL in
every aspect of business. I shared two to three points on resolving the battery problem based
on my individual analysis.

In the next activity, an employee was required to be sent to far off area and he did not want to
be transferred there. It came as a challenge and compulsion to me and t was successful in
convincing that employee to go to the designated area by negotiating with him on a one-to-
one basis in a polite and understandable manner. This exercise was followed by a presentation
where we were given 30 – 40 minutes to discuss within ourselves and give individual
presentations. Initially there were few conflicts within the group and I tried to intervene and
solve those issues, however, by the end of the discussion everyone agreed on their part of the
presentation. I presented my arguments to the board (role-played by the assessors). They
seemed receptive of what I had to say.

On the day of assessment, I was extremely preoccupied. I was not in a position to participate
in the activities. However, I managed to be part of the assessment but could not perform in
some activities such as I could not see the pictures clearly and was unable to develop a story
out of them.

I left the venue of the assessment with positive feelings however I was curious about his
performance in leadership potential activities. Furthermore, I was also curious about the
consultants’ feedback and the impact it could have on my career.

Afterthoughts

You know the way the assessment was done, it was too generic. It was not PTCL specific like
what we need in PTCL, how things are going, how to manage them and what kind of people
are needed at PTCL.

I think this exercise should not be repeated at PTCL in the future, unless it has been
significantly improved. In my view, the assessment was not according to our expertise in
PTCL. It consisted of general exercises as it was designed for all people from different
departments of PTCL.

We should go for targeted and much more specific evaluations. The element of context needs
to be increased significantly. In PTCL, if you are a finance guy, and you are asked to talk to
the customer, you may not be good at it as it is not your expertise.

We were given feedback after a couple of months. The feedback was given by the consultants
(see Exhibit 8C). The feedback was given in a manner that we were not given the paper, i.e.
written feedback. They had the paper folded and they just told me that there were just two or
three areas where I needed improvement. They shared whatever they wanted to share whether
it was the entire feedback, or just part of it. When I left the office I realized that they had
discussed only a few points and had skipped the remaining points.

In my opinion, it would have been better if I would have gotten the detailed feedback and was
allowed to discuss the details with the consultants. Because had they shown me my results. I
would have wanted to know more.
They identified leading and coaching as the area that I needed to develop further. I told them
that if they wanted to know about my leading and coaching skills, they should have gotten
feedback from my juniors and my team, or they should have taken 360 degrees feedback. This
is something that was lacking in their assessment. When I was heading a team in PTA, the
chairman of PTA said to me that I had the best team.
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Assessing Leadership Potential at PTCL 05-763-2014-1

The next level for me at PTCL is SEVP. With my age and experience, I still feel that there is a
lot to learn at PTCL. I am forty years. I don’t want to jump too soon.

The Results

The consultants provided an aggregate analysis of the leadership competency assessment of PTCL for each of
the three cadres assessed. Furthermore, they provided individual assessment reports for each candidate
identifying their strengths and areas for additional development. This section gives a summary of the aggregate
analysis as well as the highlights of the individual assessment report of each of the three candidates mentioned
earlier in this document.

Leadership Assessment Analysis

The leadership potential assessment report provided by the consultant was structured into two chapters. The first
chapter presented a brief background of the assignment, scope of work, and a detailed methodology. It also
encompassed competencies which were being measured, and described various activities used as part of the
assessment. The second part presented a detailed analysis of the results aggregated across the three cadres,
namely SEVP, EVP, and GM. The data had been analysed from various perspectives. The definition of scoring
terms and scoring criteria that was used by the assessors had also been shared.

The scoring criteria consisted of four categories where 85% and above was described as Exceeds Expectations,
84% - 65% was Meets Expectations, 64% - 50% was described as Needs Development, and 49% or lower was
Needs Significant Development. Please refer to Exhibit 9 for detailed methodology used for leadership
potential analysis.

Exhibit 10 highlights the general competency distribution among all the candidates. Exhibit 11A highlights
cadre-wise analysis and Exhibit 11B provides cadre-wise analysis of the competencies assessed.

What Next

Mr Khan was pondering over the results of the leadership potential assessment where the participants were
graded for their potential across several dimensions of leadership. He was concerned about how the
participating executives would react after learning about their respective assessment results. Some executives
had received low ratings from the assessors although their performance at PTCL had been quite good. He was
not sure how to deal with this discrepancy. He was also grappling with the question whether the assessors’
rating was really a good predictor of an executive’s performance on the job. There was a general scepticism
among some executives regarding the validity of the assessment.

Mr Khan needed to decide how to proceed further after the results of the assessment had been received,
particularly how to follow up with those executives who did not perform well in the assessment. What options
existed for Mr Khan regarding the follow up? What would be the implications of various options on the overall
motivation of the executives as well as on the effectiveness and acceptability of the leadership potential
assessment process? Considering that the aggregate results of the assessment were not encouraging and had
identified several areas requiring improvement, what initiatives at the organizational level could be taken to
develop leadership excellence at PTCL?

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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 18: Historical Background of Pakistan Telecommunication Limited (PTCL)


1947 Posts and Telegraph Department established

1962 Pakistan Telegraph and Telephone Department

1990-91 Pakistan Telecom Corporation ALIS: 850,000 Waiting List: 900,000 Expansion Program of 900,000
lines initiated (500,000 lines by Private Sector Participation 400,000 lines PTC/ GOVERNMENT own
resources).

1995 About 5% of PTC assets transferred to PTA, FAB and NTC

1996 PTCL listed on all Stock Exchanges of Pakistan

1998 Mobile and Internet subsidiaries established

2000 Telecom Policy Finalized

2003 Telecom Deregulation Policy Announced

2005 26% shares of PTCL offered

2006 26% shares sold with Management Control

Source: Company Documents

8
PTA: Pakistan Telecommunication Authority is a regulatory body responsible for monitoring the telecommunication business in Pakistan.
It frames rules and regulations for private telecom companies such as Mobile phone companies, internet service providers, paging
companies, and pat card phone companies. Moreover, issues licenses to the new companies entering into this business.
NTC: National Telecommunication Corporation is responsible for providing telecommunication services to various departments of
government and armed forces.
FAB: Frequency Allocation Board has been assigned the responsibility of allocating radio and television broadcasting operators, public and
private wireless operators etc.
ALIS: Access Lines in Service
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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 2: PTCL after Privatization

Return on Equity (%) Earnings per Share (Rs.)


2007-2012 2007-2012
16
3.5
14
3
12
2.5
10
2
8
1.5
6
1
4
0.5
2
0
0 2006 2007 2008 2009 2010 2011 2012 2013
2006 2007 2008 2009 2010 2011 2012 2013 -0.5
-2
-1
-4

Market Value per Share (as on June Revenue (Rs.m)


30) (Rs.) 2007-2012 2007-2012
60 80000
70000
50
60000
40
50000
30 40000
30000
20
20000
10
10000
0 0
2006 2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2011 2012 2013

Profit/ (loss) after Tax (Rs.m)


2007-2012
20000

15000

10000

5000

0
2006 2007 2008 2009 2010 2011 2012 2013

-5000

Source: PTCL Annual Report 2012

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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 3A: Organizational Structure of PTCL

CEO

Senior
Executive Vice
President

Executive Vice
President

General Manager

Senior Manager

Manager

Management Trainee/Assistant Manager

Source: Company Documents

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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 3B: Detailed Managerial Hierarchy

President/ CEO

SEVP SEVP SEVP SEVP SEVP SEVP SEVP


Commercial Operations Technical Special Project Corp. Affairs HR Finance

Business EVP EVP EVP EVP EVP


Central Zone
IP Services IP Services Development Corp. Affairs HR Finance

EVP EVP MD GM
Switching Switching TIP HR

EVP EVP MD
Transmission Transmission PTML

Source: Based on Company Documents

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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 3C: Detailed Managerial Hierarchy

Operations (HQ)

SEVP

Interconnection
Access Network Switching Network - Transmission Network - IP Service -Islamabad
Implementation H/Qrs
Islamabad Islamabad
Coordination Islamabad
ZONES C. E EVP EVP EVP

Network Manager Switching Network Transmission Network IP Service


H/Qrs Islamabad H/Qrs Islamabad H/Qrs Islamabad H/Qrs Islamabad
C.E C.E C.E C.E

Switching Network Transmission Network IP Service


Karachi Karachi Karachi
G.M G.M G.M

Switching Network Transmission Network IP Service


Lahore Lahore Lahore
C.E C.E C.E

Switching Network Transmission Network IP Service


Islamabad Islamabad Islamabad
G.M G.M G.M

Source: Based on Company Documents

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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 3D: Detailed Managerial Hierarchy

Commercial Wing

SEVP

Business Business Business Business

Northern
EVP Zone Central
EVPZone Southern
EVPZone Western
EVPZone

Zone Corporate Finance Zone Corporate Finance Zone Finance Zone Corporate Finance
Services Services Services
GM GM Corporate
GM GM GM
GM GM GM

Zone Consumer Zone Consumer


HR & Admin Zone Consumer HR & Admin Zone Consumer HR & Admin HR & Admin
Services Services
Services Services
GM GM GM GM GM GM GM
GM

Zone Corporate Development Zone Corporate Development Zone Corporate Development Zone Corporate Development
Services Operatins and/or Services Operatins and/or Services Operatin nd/or Services Operatins and/or
Maintenance Maintenance Maintenance Maintenance
GM GM GM GM GM GM GM GM

Source: Based on Company Document

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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 4: Scope of Leadership Potential Assessment at PTCL

a. Obtain and review the leadership competencies as defined by Etisalat.

b. Using the Etisalat Leadership competencies, customize competency definitions so that they are
assessable in an assessment center context.

c. Obtain CVs/ general profile of candidates to be assessed i.e. education, work experience, age, basic
skills etc.

d. Obtain Job Descriptions and Person Specifications for the benchmark positions to be included in this
assignment.

e. On the basis of the general candidate profile and finalized competencies, select and design appropriate
assessment tools/ exercises.

f. Conduct assessment centers (in Karachi, Lahore, and Islamabad) covering nine SEVPs, 25 EVPs, and
103 GMs to be assessed.

g. Based upon assessed performance, prepare and submit a categorized list of assessed candidates
identifying candidates who are

1. Exceeds Expectations - 85% and above;


2. Meets Expectations – 84% - 65%;
3. Needs Development – 64% - 50% and;
4. Needs Significant Development – 49% or lower.

Prepare and submit individual assessment reports with competency-wise performance ratings for each
candidate. The strengths and development areas for each candidate to be identified in the individual reports.

Source: Based on Company Documents


Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 5: Competency Model provided by Etisalat

CAPABILITY COMPETENCY DEFINITION


 People demonstrating this competency drive for
1. Deliver Results improvement of business results.
Execution --------------------------------- -------------------------------------------------------------
2. Lead and Implement  People demonstrating this competency drive for
Change improvement through people, transforming and
aligning an organization
 People demonstrating this competency think about
immediate imperatives. Strategic thinking can be
applied to a function or process, a product and market,
Growth and 3. Develop and Strategy a business and unit or a corporate entity involving
Competitiveness various businesses. This competency requires strong
business understanding, analytical and conceptual
abilities, and the ability to formulate a practical plan
that impacts the business positively.
 People demonstrating this competency think about
serving the customer. This competency can be applied
to internal or external customers. However it is not
4. Customer Experience intended to encompass an individual’s understanding
and impact with the end consumer, which should be
covered under Market Knowledge.
Customer Focus --------------------------------- -----------------------------------------------------------------------
 People demonstrating this competency has a strong
detailed understanding of the market in which their
5. Market Knowledge business operates and how it affects their business:
they know the customers they serve, the competitors,
suppliers, and the regulatory environment and how to
address them.
 People demonstrating this competency can focus,
align, and build effective groups. This competency
6. Lead our People includes leadership roles in cross-functional, cross-
organizational or project teams as well as conventional
line or staff management.
Organizational --------------------------------- -----------------------------------------------------------------------
 People demonstrating this competency are effective in
7. Build Relationship working with peers, partners, and others who are not in
the line of command, to positively impact business
performance.

Source: Based on Company Documents

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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 6: Customized Leadership Potential Competencies developed by PTCL and


Local Consultants
RESULT ORIENTATION Participatory management
Change management and driving change Coaching/ providing guidance
Continuous improvement Role model
Flexibility Motivation
Decision making
Planning and organizing RELATIONSHIP MANAGEMENT
Team-player
BUSINESS AND STRATEGIC ACUMEN Cooperation
Strategic thinking Emotional intelligence
Analytical thinking Self-awareness
Knowledge of business functions/ needs Tolerance
Market knowledge Positive attitude
Systems thinking
Understanding of business principles COMMUNICATION AND PRESENTATION
Ability to use market knowledge SKILLS
Communication direction
CUSTOMER ORIENTATION Influence
Understand Negotiation
Anticipates and delivers on internal and external Knowledge-sharing
customer needs Effective presentation
Seeks to exceed customer expectations
INNOVATION AND DRIVE
LEADERSHIP AND COACHING Innovation
Delegation Ownership
Motivation Problem-solving
Development Risk taking

Source: Based on Company Documents

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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 7: Competencies Measured in each Activity of Leadership Potential


Assessment
Exercise Competencies
Group discussion activity Result orientation
Business acumen and strategic thinking
Leading and coaching
Communication and persuasion
Initiative and drive
Relationship management
Role play 1 – Customer interaction Customer orientation
Initiative and drive
Relationship management
Role play 2 – Tough employee Leading and coaching
Result orientation
Communication and persuasion
Written exercise : inbox Result orientation
Business acumen and strategic thinking
Customer orientation
Relationship management
Communication and persuasion
Analytical exercise: fact finding Result orientation
Business acumen and strategic thinking
Communication and persuasion
Initiative and drive

Source: Based on Company Documents

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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 8A: Individual Assessment Report

Candidate Name: Naeem Ahmed

Individual Assessment Report


Summary Results
RESULT OF THE ASSESSMENT:
Candidate rating is highlighted
Max. Score 28 Achieved Score 19.63 Percentage 70.10%

Score Percentage Rating Description

85% and above Exceeds Expectations, no development needed at this stage

84% - 65% Generally Meets Expectations, some development needed, but no


significant risks
64% - 50%
Has Clear Development Areas, strong development needed
49% or lower
Candidate has Clear Risks

ASSESSMENT SUMMARY
The candidate generally meets expectations and has cleared all competencies assessed for. Apart from
some minor development required in his result orientation especially when under pressure and some
additional development in advocating customer oriented workflows and processes internally, the candidate
meets expectations across the board.

One observation that would be worth mentioning is a finding from the psychometrics regarding his ability to
manage stress and high pressure situations. However the results indicate that in sustained pressure situations the
candidate can become discouraged which can impact his performance in the future and is personal development
area for the candidate going forward.
That notwithstanding, the candidate has met all requirements for the level assessed for.

COMPETENCY SCORES
2.95 Strengths
Result Orientation (RO) 2.77
2.9 Business and Strategic 2.81
Acumen (BSA)
2.85 Customer Orientation (CO) 2.75
2.8 Leading and Coaching (L&C) 2.72
Relationship Management 2.92
2.75 (RM)
Communication and 2.83
2.7 Persuasion (C&P)
2.65 Initiative and Drive (I&D) 2.83
Development Areas
2.6
RO BSA CO L&C RM C&P I&D

Source: Based on Company Documents

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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 8B: Individual Assessment Report


Candidate Name: Sobia Saleem

Individual Assessment Report


Summary Results

RESULT OF THE ASSESSMENT:


Candidate rating is highlighted
Max. Score 28 Achieved Score 11.62 Percentage 41.48%
Score Rating Description
Percentage
85% and above Exceeds Expectations, no development needed at this stage

84% - 65% Generally Meets Expectations, some development needed, but no


significant risks
64% - 50%
Has Clear Development Areas, strong development needed
49% or lower Candidate has Clear Risks

ASSESSMENT SUMMARY
The candidate has been assessed as having clear development areas and risks in the competencies assessed for.
While there are strong emergent developmental needs across board, specific areas of focus lie in customer
orientation, business and strategic acumen and in leadership and coaching skills. It is assessed that the candidate
requires strong development in being open to and able to adapt and respond to change and in being to innovate
and responding positively to possible opportunities for innovation. A review of the psychometrics reveals that
the candidate has a strong natural preference for excitement and for new experiences. Development is required
in being able to translate that effectively into approaches towards work and professional life. Clear development
is also needed across board in understanding business, business environment and in improving analytical skills
and abilities. As these are acquired skills, the candidate might benefit from additional training and skill
improvement in this competency. In terms of leading and coaching styles, the candidate requires strong
development in being seen as a role model and in providing strong, inspirational leadership. At the moment, the
candidate prefers to use his designation as a means of achieving results as opposed to providing leadership to a
team, an approach that needs to be highlighted to her so that she can make active efforts to improve herein. In
terms of relationship management and communication skills, the candidate would benefit from additional
development in her ability to persuade and negotiate effectively. It is felt that additional development in these
two areas would have a positive impact on both these competencies and provide overall improvement across the
board.

COMPETENCY SCORES
2.5 Strengths
Development Areas
2 Result Orientation (RO) 1.98
1.5 Business and Strategic Acumen 1.47
(BSA)
1
Customer Orientation (CO) 1.33
0.5 Leading and Coaching (L&C) 1.50
0 Relationship Management (RM) 1.67
RO BSA CO L&C RM C&P I&D Communication and Persuasion 2.00
(C&P)
Initiative and Drive (I&D) 1.67

Source: Based on Company Documents


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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 8C: Individual Assessment Report

Candidate Name: Hammad Haris

Individual Assessment Report


Summary Results
RESULT OF THE ASSESSMENT:
Candidate rating is highlighted
Max. Score 28 Achieved Score 17.31 Percentage 61.82%

Score Rating Description


Percentage
85% and above Exceeds Expectations, no development needed at this stage

84% - 65% Generally Meets Expectations, some development needed, but no


significant risks
64% - 50%
Has Clear Development Areas, strong development needed
49% or lower Candidate has Clear Risks

ASSESSMENT SUMMARY
As is evident from the assessment results, the candidate has some development areas identified along with two
key strengths. As is evident in the table below, result orientation, relationship management, initiative and drive,
leading and coaching and business and strategic acumen have emerged as key development areas, while
customer orientation and communication and persuasion have emerged as strengths. The candidate was able to
communicate effectively, articulated his points with clarity, made decisions firmly, and spoke with authority.
Additionally, he was customer oriented in that he was able to pre-empt the need of the customer and provide
him with suitable options, keeping in mind the organization’s resources while meeting customer preferences.

In terms of relationship management, additional development needs have been identified which include
maintain relationships internally and externally. This also feds into his leading and coaching, where the
candidate, while assured in the point that he makes and comfortable in his decision, does not extend himself
fully to leading and coaching his peers. This competency can be developed however, by mentoring and
coaching him, and training him to do so. With regards to business and strategic thinking as well as result
orientation, it is recommended that the candidate further develop this skill. As seen in the fact finding exercise,
he is already somewhat oriented towards it, and has the potential to develop it further. If coached and taught to
think in a business, strategic and result oriented framework, the candidate could meet expectations regarding
these competencies with ease.
COMPETENCY SCORES
2.8 Strengths
Customer Orientation (CO) 2.62
2.7
Communication and Persuasion (C&P) 2.69
2.6
2.5 Development Areas
2.4 Result Orientation (RO) 2.44
2.3 Business and Strategic Acumen (BSA) 2.49
2.2
2.1 Leading and Coaching (L&C) 2.27
2 Relationship Management (RM) 2.43
CO C&P RO BSA L&C RM I&D Initiative and Drive (I&D) 2.38

Source: Based on Company Documents


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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 9: Detailed Methodology used to Assess Leadership Potential at PTCL


At the end of the assessment exercises, participants were classified into the following four categories:

a. Exceeds Expectations (EE): Candidate had exceeded the requirements for the level assessed for and no
development was required at this stage.
b. Meets Expectations (ME): Candidate generally meets the required level for this position, some
development areas but no risks.
c. Needs Development (ND): Candidate had clear development areas.
d. Needs Significant Development (NSD): Candidate needed significant development to meet the
required level. A decision would have to be taken by the management to determine the employee’s
future development and career goals.

The categories described above were arrived at a two-stage process which involved various criteria developed
for PTCL. These criteria are described as follows:

Stage 1

a. Based upon their performance candidates were scored in relevant competencies in each activity out of
a maximum achievable score of “4” which was then converted into a percentage score.
b. The individual score earned by a candidate in each of the 7 competencies was then calculated based
upon an average percentage score achieved across all activities participated in during the day.
c. Each competency was then assigned a rank of either EE, ME, ND, NSD based upon achieved score as
per the criteria used as follows:

Competency Score Exceeds 85% Rated “EE”


Competency Score is Within 84% to 65% Rated “ME”
Competency Score is Between 64% and 50% Rated “ND”
Competency Score is Less than 50% Rated “NSD”

Stage 2

a. After having determined a ranking in each competency for each candidate, the total score earned by the
candidate was calculated by summing the individual scores achieved by the candidate in each
competency.
b. The total summed score was then calculated as a percentage of the maximum achievable score (“4” x
“7” competencies = 28).
c. A final rating was assigned to the candidate as per the same percentage ranges used for achieving
competency ratings.

Source: Based on Company Documents

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Assessing Leadership Potential at PTCL 05-763-2014-1

Exhibit 10: Overall Competency Ratings (Number of Candidates)

Exceeds Meets Needs Needs Significant


Expectations Expectations Development Development
Result Orientation 3 27 59 48
Business and Strategic Acumen 1 26 56 54
Customer Orientation 1 40 55 41
Leading and Coaching 6 22 53 56
Relationship Management 2 38 59 38
Communication and Persuasion 4 37 55 41
Initiative and Drive 4 36 50 47

Source: Based on Company Documents

Exhibit 11A: Cadre-wise Analysis

Finals SEVP EVP GM Total %age


Exceeds Expectations 1 0 1 2 1%
Meets Expectations 2 5 22 29 21%
Needs Development 6 12 35 53 39%
Needs Significant Development 2 9 42 53 39%
Total 11 26 100 137 100%

Source: Based on Company Documents

Exhibit 11B: Cadre-wise Analysis of the Competencies Assessed

SEVP EVP GM
EE ME ND NSD EE ME ND NSD EE ME ND NSD
Result Orientation 9% 18% 73% 0% 4% 27% 38% 31% 1% 18% 41% 40%
Business and Strategic 0% 18% 64% 18% 4% 15% 50% 31% 0% 20% 36% 44%
Acumen
Customer Orientation 0% 55% 27% 18% 0% 19% 58% 23% 1% 29% 37% 33%
Leading and Coaching 9% 18% 55% 18% 4% 23% 27% 46% 4% 14% 40% 42%
Relationship Management 9% 27% 36% 27% 0% 23% 54% 23% 1% 29% 41% 29%
Communication and 9% 27% 64% 0% 4% 31% 31% 35% 2% 26% 40% 32%
Persuasion
Initiative and Drive 9% 18% 64% 9% 4% 23% 35% 38% 2% 28% 34% 36%

Source: Based on Company Documents

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