TEAM 3 Organizational culture Viettel case
2 questions - Analyze the characteristics of Viettel’s organizational culture. Determine its strengths and weaknesses ? - If you’re hired as consultant for Viettel to make the change for its organizational culture, what should you recommend and how will you implement your proposals ?
TEAM 3 VIETTEL CASE
TEAM 3 VIETTEL CASE
2 questions - Analyze the characteristics of Viettel’s organizational culture. Determine its strengths and weaknesses ? - If you’re hired as consultant for Viettel to make the change for its organizational culture, what should you recommend and how will you implement your proposals ?
TABLE OF CONTENT
Viettel Telecom is currently the dominant network operator with the largest market share in Vietnamese telecommunications services market
Viettel at a glance
1
Overview of organizational culture Viettel’s organizational culture
2
Culture change management Recommendation
3
abstract
abstract
251,mo+ billion VND Most Valuable Brand TOP 30
8 CORE VALUES
DIMENSIONS OF CULTURE
WEAKNESS EACH STAG
CHANGING AN ORGANIZATIONAL CULTURE Chang% in OR Mergers and acquisitions Cha* in
TABLE OF CONTENT
Viettel at a glance
1
Overview of organizational culture Viettel’s organizational culture
Culture change management Recommendation
2
3
Viettel Telecom is currently the dominant network operator with the largest market share in Vietnamese telecommunications services market
TABLE OF CONTENT
TABLE OF CONTENT
Viettel Telecom is currently the dominant network operator with the largest market share in Vietnamese telecommunications services market
Viettel at a glance
1
Viettel Group is currently the dominant network operator with the largest market share in Vietnamese telecommunications services market
Journey
of
more
than
30
years,
Viettel Group is currently the dominant network operator with the largest market share in Vietnamese telecommunications services market
Viettel has grown into an international business and the most valuable brand in Vietnam
2019
Significant presence in 11 countries with 90 million accesses
More than Revenue in 2019: 251,000+ billion VND
Most Valuable Brand in Southeast Asia 2019 Top 30 Most Valuable Telecom brands in the world
Significant presence in 12 countries
More than 90 million accesses
More than 110 million customers
Asia
Africa
America
OUTSTANDING FIGURES AND ACHIEVEMENT
Vietnam
Peru
Tanzania
2014 - now Mr. Nguyen Manh Hung
2000 - 2014 Mr. Hoang Anh Xuan
2014
2000 - 2014 Mr. Hoang Anh Xuan
2014 - 2018 Mr. Nguyen Manh Hung
8 CORE VALUES
2006
2018
8 CORE VALUES
1 Practicing is a standard to test truth Thực tiễn
2 Learning and growing through challenges and mistakes Thách thức
3 Quick adaptation is competitive strength Thích ứng
4 Creativity is the vitality of Viettel Sáng tạo
8 Viettel is a home Ngôi nhà chung Viettel
7 Tradition and how to making as a soldier Người lính
6 Combining East and West Kết hợp Đông - Tây
5 System thinking Tư duy hệ thống
2
Overview of organizational culture Viettel’s organizational culture.
ORGANIZATIONAL CULTURE
8 GIÁ TRỊ CỐT LÕI
ORGANIZATIONAL CULTURE
“
”
The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about and reacts to its various environments - Edgar Schein, 1996
The ways things are done around here
CHARACTERISTICS OF AN ORGANIZATION’S CULTURE
ORGANIZATIONAL CULTURE ORGANIZATIONAL IDENTITY SOCIAL SYSTEM STABILITY COLLECTIVE COMMITMENT SENSE-MAKING DEVICE Olive members an organizational identity Promote social system stability Shape behavior by helping members make sense of their surroundings Facilitate collective commitment
FUNCTIONS OF ORGANIZATIONAL CULTURE
ORGANIZATIONAL CULTURE ENHANCED CONTROL IMPROVED DECISION MAKING ENHANCED COOPERATION SHARED PERCEPTION ENHANCED COMMITMENT IMPROVED COMMUNICATION JUSTIFICATION OF BEHAVIOR
A culture that places a high value on attention to detail expects its employees to perform their work with precision. A culture that places a low value on this characteristic does not.
CHARACTERISTICS OF AN ORGANIZATION’S CULTURE
DIMENSIONS OF CULTURE
ORGANIZATIONAL CULTURE PROFILE
INNOVATIVE
AGGRESSIVE
OUTCOME ORIENTATED
STABLE
PEOPLE ORIENTED
TEAM ORIENTED
DETAIL ORIENTED
Companies with an aggressive culture place a high value on competitiveness and outperforming the competition at all costs.
A company that instructs its sales force to do whatever it takes to get sales orders has a culture that places a high value on the emphasis on outcome characteristics.
Types of companies typically provide consistent and predictable levels of output and operate best in non-changing market conditions.
For these companies, it is important to treat their employees with respect and dignity. Add by Value impression
People who work for these types of companies tend to have a positive relationship with their coworkers and managers.
CHARACTERISTICS OF AN ORGANIZATION’S CULTURE
DIMENSIONS OF CULTURE
INNOVATIVE
Companies with cultures that place a high value on innovation encourage their employees to take risks and innovate in the performance of their jobs.
Companies with an aggressive culture place a high value on competitiveness and outperforming the competition at all costs.
OUTCOME ORIENTATED
A company that instructs its sales force to do whatever it takes to get sales orders has a culture that places a high value on the emphasis on outcome characteristics.
AGGRESSIVE
Types of companies typically provide consistent and predictable levels of output and operate best in non-changing market conditions.
PEOPLE ORIENTED
For these companies, it is important to treat their employees with respect and dignity. Add by Value impression
People who work for these types of companies tend to have a positive relationship with their coworkers and managers.
DETAIL ORIENTED
A culture that places a high value on attention to detail expects its employees to perform their work with precision. A culture that places a low value on this characteristic does not.
STABLE
TEAM ORIENTED
ORGANIZATIONAL CULTURE PROFILE
2000 - 2014 Mr. Hoang Anh Xuan
CHARACTERISTICS OF AN ORGANIZATION’S CULTURE
2000 - 2014 Mr. Hoang Anh Xuan
4 MAJOR CULTURE TYPES CULTURE
ADHOCRACY A creative orientation Successful leaders are viewed as innovators, entrepreneur and visionary Underlying theory of effectiveness is “innovativeness, vision, and new resources" HIERARCHY A controlling orientation Successful leaders are viewed as organizers, coordination and monitors Underlying theory of effectiveness "Control and efficiency with capable processes" MARKET A competing orientation Successful leaders are hard driving, competitor and producer Underlying theory of effectiveness in a market culture is "Aggressively competing and customer focus" CLAN A collaborative orientation Successful leaders are viewed as facilitators, mentors and team builders Underlying theory of effectiveness is "Human development and participation
Stake out and mature period of Viettel The Number 1 ICT Enterprise in Vietnam Investing into 10 countries with approximately 35 million users Top 30 telecommunication operator in 2016 according to quantity of users
CHARACTERISTICS OF AN ORGANIZATION’S CULTURE
2000 - 2014 Mr. Hoang Anh Xuan
The embryonic and growth period of Viettel Accessing into telecommunication market with VoIP 178 and launching internet and mobile service. Facing with two State Owned Enterprises competitors, Vinaphone and Mobiphone
2014 - now Mr. Nguyen Manh Hung
OVERVIEW ABOUT TWO STAGES OF VIETTEL
CHARACTERISTICS OF AN ORGANIZATION’S CULTURE
Stake out and mature period of Viettel The Number 1 ICT Enterprise in Vietnam Investing into 10 countries with approximately 35 million users Top 30 telecommunication operator in 2016 according to quantity of users
2000 - 2014 Mr. Hoang Anh Xuan
The embryonic and growth period of Viettel Accessing into telecommunication market with VoIP 178 and launching internet and mobile service. Facing with two State Owned Enterprises competitors, Vinaphone and Mobiphone
2014 - 2018 Mr. Nguyen Manh Hung
WEAKNESS IN EACH STAGE
Characteristics
Innovation and risk taking
Outcome Orientation
Aggressiveness
Team Orientation
People Orientation
Attention to detail
Viettel 2000-2014
Viettel 2014-2018
OVERVIEW ABOUT TWO STAGES OF VIETTEL
CHARACTERISTICS OF AN ORGANIZATION’S CULTURE
Stake out and mature period of Viettel The Number 1 ICT Enterprise in Vietnam Investing into 10 countries with approximately 35 million users Top 30 telecommunication operator in 2016 according to quantity of users
2014 - now Mr. Nguyen Manh Hung
strong strong strong strong strong strong strong
CHANGING AN ORGANIZATIONAL CULTURE
WEAKNESS IN EACH STAGE
OVERVIEW ABOUT TWO STAGES OF VIETTEL
Viettel 2000-2014
Viettel 2014-2018
Huge influence from leader Hoàng Anh Xuân No clear division of work and responsibilities between leader and manager
No breakthrough, no flexibility in decisions Emotionalism when investing into oversea market
CHANGING AN ORGANIZATIONAL CULTURE
3
Culture change management Recommendation
WEAKNESS IN EACH STAGE
CHANGING AN ORGANIZATIONAL CULTURE
Changes in leadership OR Mergers and acquisitions OR
Change itself in advance
Actions of founders and leaders
Culturally consistent rewards
Aligning artifacts
Selecting and socializing employees
CHANGING AN ORGANIZATIONAL CULTURE
CHANGING ORGANIZATIONAL CULTURE
CHANGING AN ORGANIZATIONAL CULTURE
5 - PHASE APPROACH
Identify the Values and Behaviors Your Culture Should Embody
Craft a Communication Plan So Employees Understand What Is Expected of Them
Use New Offices or Locations as Opportunities to Jump-Start the New Culture
Operationalize New Culture Values by Incorporating Them in Key Talent Programs
Ensure Your Leaders "Walk the Walk"
1
2
3
4
5
10 TIPS FOR DRIVING A CULTURAL CHANGE
CHANGING AN ORGANIZATIONAL CULTURE
1. Define desired values and behaviors. 2. Align culture with strategy and processes. 3. Connect culture and accountability. 4. Have visible proponents. 5. Define the non-negotiables.
6. Align your culture with your brand. 7. Measure your efforts. 8. Don’t rush it. 9. Invest now. 10. Be bold and lead.
CHANGING AN ORGANIZATIONAL CULTURE
PERFORMANCE focus, fidelity, engagement 1
DECISION-MAKING process, framework 2
ATMOSPHERE context, professionalism, equality 3
TEAM APPROACH inclusion, collaboration 4
STRUCTURE Hierarchy, fluidity, feedback 5
clarity, preference, patterns COMMUNICATION STYLE 6
Identify the Values and Behaviors Your Culture Should Embody
.J:.IÄ
1# HAVING A PURPOSE BEYOND PROFIT
2# CREATE A SHARED VISION AND COMMON DIRECTION
Connecting people to a purpose feel good about Viettel company is an important way of helping them. A very high correlation between the way your employees feel about the company and the way your customers do
Communicate vision, mission, strategy, values Boarding card: Communicate vision, mission, strategy and values – Coaching
3# COMMUNICATE TARGETS IN A SIMPLE WAY
4# SHARE NUMBERS
By organizing discussions throughout the organization, spreads the company‘s common directions so that individuals and teams can accurately align their own activities with the company‘s new overall direction.
By sharing numbers with employees, Viettel can increase employees’ sense of ownership. Focus on additional metrics besides the financial ones. Employees who are not in the financial world will be able to relate better to the results and will feel more included in the process
VIETTEL PRESENT
From 2018 – 2020
VIETTEL HAS INVESTED IN SOME NEWS AREAS
5# DEVELOP THE COMPANY -> NEW AREA
Because Viettel is the biggest telecommunication of Viet Nam, and the author already emphasis that Viettellers have no motivate in working so by developping the new areas Viettel will create a huge impact on organization culture. It need lot of effort and strong culture about close unity.
.J:.IÄ
1# HAVING A PURPOSE BEYOND PROFIT
2# CREATE A SHARED VISION AND COMMON DIRECTION
Connecting people to a purpose feel good about Viettel company is an important way of helping them. A very high correlation between the way your employees feel about the company and the way your customers do
Communicate vision, mission, strategy, values Boarding card: Communicate vision, mission, strategy and values – Coaching
3# COMMUNICATE TARGETS IN A SIMPLE WAY
4# SHARE NUMBERS
By organizing discussions throughout the organization, spreads the company‘s common directions so that individuals and teams can accurately align their own activities with the company‘s new overall direction.
By sharing numbers with employees, Viettel can increase employees’ sense of ownership. Focus on additional metrics besides the financial ones. Employees who are not in the financial world will be able to relate better to the results and will feel more included in the process
VIETTEL PRESENT
From 2018 – 2020
VIETTEL HAS INVESTED IN SOME NEWS AREAS
SOLUTION:
Be leader to create a digital society
VIETTEL PRESENT
From 2018 – 2020
Viettel’s 4.0 organizational culture
I
nnovation
C
ustomer centric
A
gility
D
igital – first mindset
O
pen c ulture
VIETTEL PRESENT
From 2018 – 2020
Viettel’s 4.0 organizational culture
I
C
A
D
O
Be leader to create a digital society
THANK YOU!