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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

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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 ?

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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

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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

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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

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Viettel Group is currently the dominant network operator with the largest market share in Vietnamese telecommunications services market

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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

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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

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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

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2014

2000 - 2014 Mr. Hoang Anh Xuan

2014 - 2018 Mr. Nguyen Manh Hung

8 CORE VALUES

2006

2018

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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

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2

Overview of organizational culture Viettel’s organizational culture.

ORGANIZATIONAL CULTURE

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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CHANGING AN ORGANIZATIONAL CULTURE

3

Culture change management Recommendation

WEAKNESS IN EACH STAGE

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CHANGING AN ORGANIZATIONAL CULTURE

Changes in leadership OR Mergers and acquisitions OR

Change itself in advance

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Actions of founders and leaders

Culturally consistent rewards

Aligning artifacts

Selecting and socializing employees

CHANGING AN ORGANIZATIONAL CULTURE

CHANGING ORGANIZATIONAL CULTURE

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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

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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.

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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

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.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.

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.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

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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

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VIETTEL PRESENT

From 2018 – 2020

Viettel’s 4.0 organizational culture

I

C

A

D

O

Be leader to create a digital society 