Coaching in Telenor – why, how and what effects? Marit Reutz, Director, Corporate HR

Telenor key facts 2003 Major international operator with its focus on mobile activities. Ranked as the 12th largest mobile operator in the world (source: GSM Associations) 31,4 million mobile subscribers world wide. 2,4 million TV subscribers in the Nordic region. Market leader in Norway (market shares) Mobil – 57 % Fixed – 69 % Operating revenues 2003: NOK 53.1 billion. Profit before taxes 2003: NOK 7.4 billion. Full time employees Dec. 2003: 19.450 (7.450 outside Norway)

Telenor Corporate Strategy: A simplified Telenor – a focused portfolio with pervasive operational and marketing excellence Strategic direction Strategic focus Focus on operational control Selective expansion to reach a broader industrial platform Exit from marginal and non-supportive activities Best positioned European Telco Operational Excellence Value driven leadership Operational excellence Value driven leadership Value driven leadership Value driven leadership Value driven leadership Value driven leadership Value driven leadership Clear expectations setting and coaching One-company attitude International mindset Excellence in customer intimacy and marketing Radical simplification in products and processes Synergies in international operations

Telenor Leadership Development Process Telenor Leadership Development Process (TLDP) is an overall tool to help us develop stronger leadership in Telenor. The target audience is managers, and the goal is to develop their leadership skills. The tool consists of: Common leadership expectations A common appraisal process for managers and key personnel Systematic and targeted leadership development to close the gap to the leadership expectations Incentives linked to both business performance and leadership qualities  

Coaching in TLDP Yearly process Managerial coaching Leaders must be able to give feedback Team-coaching Anchoring leadership expectations IVC Business performance Leadership qualities Telenor’s vision and values Leadership expectations Appraisal form Appraisal dialogue-process Relies on coaching philosophy Input to succession planning and recruitment Identify talents Identify challenges and needs Appraisal dialogue Step 1 Team-coaching Link to Performance Management systems Follow up Step 4 Yearly process Review meeting Step 2 Input to leadership development activities Competencies Activities Programs Tools Feedback dialogue Step 3 “One to one” coaching Leaders want coaches Team-coaching Leader-team development Reward systems Managerial coaching Leaders must give feedback and on the spot coaching Input to individual and team development Managerial coaching Employees want leaders with a coaching style

Telenor Leadership Expectations Objectives Value creation Passion for business Demonstrate strong commitment to gain profitable market positions Communicate deep understanding of relevant markets, competitors, customers and stakeholders Communicate insight into what is required to make Telenor a success. Demonstrate the will to win Change and constant renewal Demonstrate openness to new ideas and adapt to changing circumstances Identify and articulate the direction and motivate others to move in the desired direction Creatively solve problems Demonstrate speed and momentum Operational excellence Simplify processes Execute quality work Optimise resource allocation across competing priorities Target and achieve industry best practices Empower people Clearly communicate expectations Give constructive feedback and reward achievements Coach and develop managers and employees Put the right people in the right roles at the right time Integrity Demonstrate social and environmental responsibility and good business ethics Accept responsibility for successes and failures Communicate Telenor values and codes of conduct Set a good example

Focus in the review meeting: What leadership capabilities do we have? Do we have the right persons in the right places? What actions do we need to take and what tools do we have at hand? Discuss each manager, his/her special talents and potential Identify high performers and low performers Identify and agree on challenges according to: Management challenges in critical positions Short and long term needs Talents/fast trackers Gender Seniority Identify and agree on means to close the gap Job rotation Succession planning Career planning Training needs/activities Incentives and rewards Acceptance on Training activities Costs To be given in the feedback dialogue Identify organisational challenges Which positions are the most critical ones according to our goals and strategy Do we have the right persons in those positions Are we organised to meet our goals

Telenor Leadership Development Process Business performance IVC Leadership qualities Telenor’s vision and values Leadership expectations Appraisal form Input to succession planning and recruitment Identify talents Identify challenges and needs Appraisal dialogue Step 1 Link to Performance Management systems Follow up Step 4 Yearly process Review meeting Step 2 Input to leadership development activities Competencies Activities Programs Tools Feedback dialogue Step 3 Reward systems Input to individual and team development

Coaching at different arenas Team-coaching: Coaching-methods facilitated for teams with common goals C Personal: Coachee sets the agenda C Managerial: Coach (leader) also has an agenda

Simple coaching tools used in TLDP Active listening Open questions Use of scaling

Main-results from TLDP-pilots 87% mener at TLDP vil øke performance 85% mener TLDP vil bedre deres personlig lederskap 76% mener at deres leadership performance kom frem 76% mener at deres leadership potensiale kom frem 83% mener at reviewmøte klart viste hvilke lederkapasiteter en hadde 84% mener de fikk verdifull tilbakemelding på sine ledere I reviewmøtet 79% mener de fikk et klarere bilde av talenter

Managerial coaching – a pilot All leaders (75) in customer service department Goals: Create a culture of coaching within Customer service department. Establish a common language and common tools to improve leadership. We have the following focus of improvement: Customer-care: How to develop and improve an effectiv customer-dialogue Sales: How to help setting goals and obtaining results for individuals and teams Difficult feedback dialogues: How to improve performance through coaching-based leadership Motivation: How to inspire employees to hard work and good results Team-coaching: How to make the team obtain its goals. How to develop well-functioning teams Structure and content: 5 days course in managerial coaching (Ericsson College, Vancouver) What is coaching. The leader as a coach. Powerful questions An effective structure for a coaching session. Motivation and commitment Prioritizing of time. Team-coaching and dialogue My leaderstyle: how to use coaching for improving my leadership Tools and methods for systematic project-working

Effects: 2 Workshops (Telenor) Practise the learning of the 5 day program modules 1 to 1 coaching (Telenor) 10 coaching-sessions pr leader over a 3 month period. 24 Telenor coaches are doing the coaching. Coaching assignments All leaders are obliged to practice at least 25 hours of coaching towards their employees during the program period to get certified Effects: Experience – mainly positive Cognitive learning – mainly good Change of behaviour - too early to measure Improved business results – too early too measure

Developing coaches in Telenor 24 coaches educated by Ericsson College, Vancouver -19 about to be certified (50 evaluated coaching lessons) -practicing within in the Managerial coaching program in customer service -facilitating TLDP, including anchoring leadership expectations and facilitating review meetings -1 to 1 coaching An internal coaching network -meeting once a month So far no clear policy and structure of how to develop and ensure an effective use of coaches within Telenor

Further recommendations Educate HR employees in basic coaching skills and team-coaching Increased focus on educating our leaders in managerial coaching Establish an Telenor coach-pool to meet the need for 1-1 coaching