Change Management in Mobinil Essays

Change Management in Mobinil Essays Change Management in Mobinil Essay Change Management in Mobinil Essay The aim of this project is to present and analyze Organization development that take place in Mobinil 3 years ago First, We will start with an introduction about Mobinil on which we will describe Mobinil mission and vision as well as Mobinil’s 5 brand values (seek excellence – friendly – dynamic simple -human)ending by the Mobinil code of conduct. In the second part, will describe why the organization needs change. While in the third part , we will describe the planned model of change starting by entering and contracting with one of the famous consulting group in the work â€Å"capgemini† , then the practitioners start to make the environmental analysis for Mobinil as a company before making a SWOT analysis for the HR department describing the main strength, weakness, opportunities and threats for the HR in Mobinil, then making the diagnosis for the HR department on which we will focus on the coming pages. The consultant then put the proposal for how the HR department should be. we will discuss Mobinil Hr department in terms of: Mobinil HR mission Mobinil HR commitment Mobinil HR strategies Mobinil HR role and objectives Mobinil HR organization chart Mobinil HR activities guidelines And finally ending by evaluating the current change. 2-INTRODUCTION Since its inception in May 1998, Mobinil has strived to maintain its position as the leading Mobile service operator in Egypt. Honoring the trust of more than 25 million customers, Mobinil is committed to being the leading Mobile service provider in Egypt, providing the best quality service for our customers, the best working environment for our employees, top value for our shareholders, and proudly contributing to the development of the community. Mobinil shareholders, Orange and Orascom Telecom Holding are international leaders in the realm of telecommunication. Mobinil has benefited from years of experience in an international context to become the largest wireless service provider in the Middle East. Over the past ten years, Mobinil has delivered on its promise to millions of customers, whose confidence in the reliability of our services has reinforced this solid leadership position. This confidence was reaffirmed in a recent nationwide survey by the National Telecommunications Regulatory Authority [NTRA], where Mobinil customers reported over 97% satisfaction rate in the products, services, and customer service levels offered during 2007 Mobinil is committed to provide the best working environment for over 2000 employees. Mobinil offers an open, challenging and dynamic environment with opportunities of growth not to be found by any other employer in the region. When you are reaching for excellence, you have to build a foundation of excellence. Mobinil’s well-trained and highly skilled employees experience the challenge of working in the most dynamic global industry mobile communications. Vision â€Å"To be part of peoples daily lives by providing reliable and simple products and services that help people interact and communicate better† Mission To maintain our position as the leading mobile service provider in Egypt, providing the best quality service to our customers, the best working environment for our employees, top value for our shareholders and proudly contributing to the development of our community â€Å" Mobinil 5 brand values Mobinil is a reflection of our desire to be part of peoples daily lives. The way we do things internally impacts our services and customers. Mobinil val ues do not only reflect Mobinil identity, but also shape our corporate culture. Seek Excellence Our passion to excel makes our customers at the heart of our business, offering them the best services and the best value for money. We work professionally, push for quality, value loyalty and never settle for anything less. We adopt the highest standards of service to each and every customer, internally or externally. We continuously advance our professional knowledge and capabilities to maintain the competence required to provide top-quality results. Friendly We enjoy working and succeeding together by building good working relationships in a friendly and positive work environment. We enjoy serving our customers and we are delighted when we make them happy and satisfied. We treat everyone with the respect and dignity we desire for ourselves. Dynamic We are passionate about our business and we are committed to meeting the changing needs of our customers. We are trend-setters in everything we do and we work passionately to bring the future to the hands of our customers in a fast-moving, high-tech telecommunications market Simple We communicate with clarity and simplicity. We are always straightforward and easy to understand. We satisfy our customers in the most simple and convenient style. We are committed to ensuring utmost efficiency in all our processes, to ensure we work smoothly and effectively. We say simply and clearly what we do and we ensure that we do what we say Human We genuinely believe in our role to help create a brighter reality for our community. We are proud to be a responsible corporate citizen caring for the public good. The aim of our Corporate Social Responsibility programs is to give back to our community, provide a sense of hope, and bring out our humane side We have a responsibility to balance the needs of our stakeholders as well as meeting our social, ethical and environmental obligations. Corporate responsibility is an integral part of our strategic planning and daily activities. Code of conduct The code of conducts outlines the share set of values that should guide each and every Mobinil employees at any level, from the most junior to the most senior, in their day-to-day work and conduct. This set of values should be adopted individually by employees and collectively by teams, departments, and the company as a whole, Mobinil values are based on human values as devotion to service , honesty, trust cooperation, transparency, respect and tolerance . See appendix (1) for more Details 3- WHY THE COMPANY NEEDED CHANGE In the latest quarter reviews, top management realized that revenues are decreasing and that they are rapidly losing market share to the competition. Competition was found to be greater innovators and having a faster new product to market cycle. In addition, NTRA, the governmental authority controlling the telecom market is putting more pressure on the telecom operators. And finally they realized that the demand of the clients is becoming more sophisticated, and traditional ways of doing business will not allow the company to move further with the same previous rates of growth and success. Accordingly Naguib Sawiris decided that serious change is required. In the general meeting he publicly announced that radical and fundamental change needs to take place. He encouraged all management to Participate In the change process, and at the same time delivered a subtle threatening message to those whom will not get on board the wagon. Mobinil contacted everal OD consultants, and after thorough analysis of the proposals received they decided to go ahead with two reputable OD practitioners: 1- CAPGEMINI 2- Blue Sky We will describe the action taken by the first one focusing on the HR department 4-ENTERING AND CONTRACTING Mobinil has set different criteria to choose the company with which they will do this major step, and they have asked for a technical, financ ial bedding to choose upon the main provider or external OD practitioner. The main intervention was meant in the HR management including a Techno structural Interventions After many meetings, presentation and discussions Capgemini was chosen by Mobinil , they sat with the Mobinil top management to define the main objectives of the change and they agreed that the main objective of the change is turning Mobinil into a competitive advantage in order to compete and generate more revenue to achieve the main vision and mission for the company . They put a time limit of 6 months in order to finish the evaluation of the current status then to discuss it with the top management. Capgemini will get in return about I Million US$ after finishing and implementing the change process. 5-DIAGNOSIS Capgemini started the diagnosis with 2 steps: * First : PESTAL or environment analysis for the forces affecting Mobinil operation * Second: understanding how Mobinil is currently functioning and providing the information necessary to design change interventions focusing on the HR Department A- PESTAL Analysis On the PESTAL analysis, we will describe all environmental forces affecting Mobinil operations as a leading mobile network Competitive Forces : Currently Vodafone and Etisalat represent the major competitors for Mobinil in the mobile operator services. Vodafone is one of the world’s leading Operator Companies, offering an extensive range of service, including voice and data. Established in 2000 in Egypt with a very good network efficiency perception, Vodafone always reacts towards its competitors in terms of offers and services, rarely though does it make its own offers, yet when it does make its own offers they are usually very attractive. Etisalat is the newest operator in the Egyptian market, with a perception of changing the market competition. In addition, it’s the first operator in Egypt providing 3G network with all its application from high data speed and video calling. It seems that no other major competitors will appear in the future; in spite of the existance of telecom Egypt (fixed phone), different internet providers and main mobile retails could be to some extent competitors but each in its own market. * Economic Forces : Egypt is considered one of the developing countries. Egyptian economic indicators are as below -Gross Domestic Product = $142. 8billion GDP per capital = $ 1,870 Real GDP Growth (%) = 3. 2 Share of Private Sector in GDP= 62. 5 billion Unemployment (%) = 10. 6 Inflation rate = 23 % These indicators will drive all mobile operators working in Egypt to offer the lowest price in order to match with the bad economic conditions as most of Egyptian population are pessimistic although mobiles represents one of the luxury and Self-actualization needs. Most of the Egyptian population has a week buying power meanwhile; they have a high spending pattern for mobiles * political forces From 1981, there wasn’t any change in the political environment except some fluctuations between the opposition parties, but with no obvious effect on the political life in Egypt Egypt is currently overhauling its political and democratic systems with the purpose of deepening democracy, promoting freedoms, upholding law and advocating respect of human rights * legal and regulatory forces Pursuant to Law No. 0/2003, the NTRA (National Telecom Regulatory Authority) is in charge of monitoring and protecting competition policy in the Telecom market. Accordingly the NTRA sets the limits for free competition, which if exceeded will result in the occurrence of monopolistic practices in any of the fields regulated by Law. A general framework for free competition policy is issued by NTRA to determine the policy to be followed to ensure a free competitive a nd liberalized environment. * Technological forces Due to the high technological development, mobile technology has developed during the last decade from 2G to 2. G and currently all operators are using the 3G technology with all its parents 3. 5 and 3. 75. Moreover, all operators are now using different software programs in order to have a CRM System. * Socio-Cultural forces With a population exceeding 80 Millions, living on 1 Million square kilometers; Egyptian population is distributed between 43% urban and 57% rural. Egyptian population is divided into different segments in terms of demographical aspects. Demographic indicators show that 58% of the population is under 25, allowing for a better opportunity for consumption. On the other hand, indictors show that adult literacy rate is 57%. Over the years, studies have proven that the Egyptian society is a consumption-driven more than being a production-driven society. For millennia, Egypt maintained a strikingly complex and stable culture. B-Understanding the HR Department CAPgemini made a one to one interview with every staff member, supervisor, manager, and even department head in order to know the daily operations, current process, and provide suggestions for change . After gathering data for over 3 months, they found the below points:- * Lack of alignment within the different departments, and lack of buy-in of the department heads and accordingly with the associates for the overall vision of the company * Telecom industry is a very dynamic field that needs a fast track HR management to bring onboard the best in class employees to enable the growth of the company. This vision was not there in Mobinil as the HR lacked focus, and activities ended up being handled by one person. Lack of clear HR objectives that meet the employee’s expectations; hence employee satisfaction was low, causing a high turnover rate. * Recruitment was influenced by personal relations, creating frustration and lack of trust among employees. These personal relations also spilled over into the evaluation and compensation systems. * From the above, the promotion and bonus criteria and metrics were not clearly stated nor communicated to employees, creating high frustratio n and low morale. * Lack of planning and job forecasting for the full time employees needed on the short and long term basis. No benchmark for the salaries and compensations between Mobinil and the market, creating a large gap between the pay in Mobinil and its competitors. * All training taking place in Mobinil was ad-hoc, with no clear planning or career path development goals. 6- PLANNING AND IMPLEMENTING CHANGE after finishing the diagnosis, Capgemini suggested that the HR department must have a clear mission and objectives. On the next few papers, we will elaborate all the suggestion about HR department in Mobinil done by capgemini HR Mission To foster a challenging, productive, fair, firm and ethical work environment, in which all employee thrive, by offering the best human resources service possible â€Å" HR Commitment to Mobinil employees Mobinil believes that their employees are the most valued asset. Mobinil ability to succeed depends on the integrity, knowledge, skills, diversity, and teamwork of their employees. They are shaping a challenging, fair, firm, and productive work environment, which emphasizes mutual respect and teamwork. They strive to reward high performance and we promise to be responsive to the needs of their employees. The company is committed to providing equitable compensation, excellent working conditions, and a fair atmosphere with great opportunities for professional growth. Equal employment opportunity Mobinil is an equal opportunity employer and we pride ourselves with the Equal Employment Opportunity policy (EEO). All employment applications are considered without regard to age, gender, religion, disability, or marital status. Tolerance and Diversity Mobinil respect others; tolerate differences; and believe in the power of diversity. They strive to create a culture where tolerance and respect exist between employees. The diversity of people brings strength to Mobinil team. Regardless of their differences in backgrounds, roles, age, gender, religion, or physical ability, they all bring value to the company through our work. They shall tolerate and respect our diversity and differences and treat each other fairly. Respect for people They should respect each and every person we interact with during our business dealings including customers, employees, suppliers, and all parties that have a business relationship with the company. They should consistently treat others with the respect and dignity which we desire for ourselves. The company operates a defined contribution pension plan for its employees, in addition to the statutory insurance scheme required by law. Employees who choose to subscribe to this plan pay 3% of their basis salary into the plan. The company will contributes an amount equal to 10 % of the employee’s basic salary to the plan The company has no liabilities or commitment to the plan beyond its defined contribution . employee who leaves through resignation or retirement receive their entitlements for the pension plan according to its terms based on year of services 4- Performance evaluation management: In order to Maintain and enhance growth and development of Mobinil employees. The performance of every employee is measured through setting performance objectives â€Å"What Formsâ€Å" and development of competencies â€Å"how Forms â€Å" What Form: responsible for measuring individual objectives as well as department objectives and its impact on the yearly profit share. KPI’s are set by the head of each department to be approved by HR How Form: responsible for measuring the individual development and its impact on the annual increase of the basic salary. KPI’s are set by HR department 7-EVALUATION AND INSTITULIZATION OF MOBINIL HR DEPARTMENT The evaluation was done in 2 steps: First: Evaluation analysis done by capgemini after the intervention Second: employees online survey to asses the new change of HR First: Evaluation analysis * Strength a well known mission and strategy for the HR department * appropriate management style giving employees a chance to express their point of view * appropriate organizational structure that facilitates k nowledge * a powerful training program * good motivation tools * weakness * late promotion due to setting a maximum of 8% annually of Mobinil staff to be promoted * no formal declaration for the dividends distribution * doesn’t put into its plan the development of second line responsible * no replacements for the people who resign * Depending on a lot of contactors especially in sales and customer services. * the severe intervention in every single detail, even in the operations * opportunities * very good opportunities for growth * very good reputation in the market, which facilitate the recruitment for caliber and a lot of fresh graduates * threats the appearance of Etisalat with its strategies for hunting the calibers in Mobinil * the existing of a lot of old staff whom transfered from Egypt telecom with minor management skills * incapable to compete with the new packages in the telecommunication market * Weak retention plan for resigned staff. * the composition of the compensation committee with 2 members only without putting any solution in case of conflict Second: Employees survey After the announcement of the new change and the importance of it in order to increase Mobinil performance and efficiency; a survey was uploaded on Mobinil intranet to ask people about their perception of the change . The results were unexpected as it showed the following: the new change increased the staff moral as they feel that the company can compete in the new market which affected their productivity and loyalty * they showed understanding for the need of change and gave full support, and they felt that this change was made not only for the shareholder but for the sake of all Mobinil members and stake holders * the change increased the companies transparency in terms of hiring, promotion, compensation package and profit share distribution * the change lead to increase in market share becoming the lea ding company in Egypt and helped increase the staff moral which was reflected in their productivity and efficiency. the survey showed that the new job descriptions helped to minimize the time for searching who is responsible for what as it contained clear responsibilities and authorities for every one working in the HR department * creating the new mission and commitment for HR department helped to achieve the companies over all mission and vision * A new culture has been created among all departments that the HR department has changed for their benefit not against them, as the previous culture before the change, and it increased inter and intra departmental communication 8-Conclusion After all of the above mentioned steps and details of the project that has been implemented, it was very clear that the change was really needed and felt in the organization. Despite the fact that many of the old stuff were very much resisting to the change especially that those people was with the owner hand in hand to build this giant organization, yet the top management was clear enough from the beginning and cascade the message clear that this change should happen and everyone should adhere to the recommendation done by the consultancy. As Mobinil noticed the importance of such a step, they were very cautious in choosing the OD practitioners , they set a clear criteria to chose among them. And they have set a good budget to be invested in such a step. Later on a clear contract and agreement with the OD practitioner was made that serves to make sure that both parties was clear in terms of expectations, resources, time and outcome of the project. That was a core stone to smooth on the whole process later on. The diagnostic phase which was a critical one took 30% of the time where the OD practitioner has meet with almost all the HR staff and the top management to make sure that they have got all the need information, unbiased and direct to serve the purpose of the project. Along with the analysis of the data collected was taken care by the company and they have came to the recommendation to the top management. Here the role of the communication was clear to cascade it to the key stakeholders, they buy in was critical and in manay cases they threaten them. The intervention was partially general standard models and part was tailored for Mobinil and it was focusing on the HR management and the technostrutural interventions. After the implementation majority of the stakeholders and people affected by the project, which happen to be almost all the employees has really touched the importance of taking such an important step and it is really affecting positively their lives and their day to day life. Now we can say that they major initiative has helped Mobinil to maintain its leadership position in the market, it has decreased the turnover of the employees from more than 27% to now less than 10% after the implementation by 8 months. Now the HR is one of the successful departments in the organization and it is well known in the market to be one of the very effective departments in the whole market. That is really the role of the big giant company to educate the market and here is Mobinil playing this role and taking advantage of being the first mover. End of document