EFQM Levels of Excellence
Recognised for Excellence
Submission Document
ERICSSON NIKOLA TESLA d.d.
p.p. 93 – 10002 Zagreb - Croatia
© 2001 EFQM
It is the EFQM’s intent to encourage the widespread use of this material within companies
and or organizations. However, no part of this publication may be reproduced, stored in a
retrieval system, or communicated in any form or by any means (be this electronically,
mechanically, through photocopy or recording, or otherwise) without the prior written
permission from the copyright owner.
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OVERVIEW: ORGANISATIONAL BACKGROUND AND ENVIRONMENT
NAME OF ORGANISATION:
ERICSSON NIKOLA TESLA d.d.
p.p. 93 – 10002 Zagreb - Croatia
ORGANISATIONAL STRUCTURE:
The joint stock company Ericsson Nikola Tesla (ETK) is a local Ericsson company in Croatia. The company
was founded in May 1995 when the Ericsson Corporation became the major shareholder. In the present
ownership structure, Ericsson owns 49,07% of shares, small shareholders own 47,61% and the Croatian
Privatization Fund 3,32% of shares. In the new ETK organization (April 2003) there are three core functions:
Sales; Operations; and Research and Development (R&D) Centre and four support functions: Business Support,
People and Culture (Human Resources), Communication and General Services. (See page 48)
LOCATION INFORMATION:
The headquarters, main operations and R&D Center (telecom software design) are located in the Croatian capital
Zagreb, Krapinska Street 45. In the town of Split, Poljička Street 39 the software designers are located (smaller
part of R&D Center)) who organizationally belong to the R&D Center in Zagreb.
TOTAL NUMBER OF EMPLOYEES:
ETK has 1080 employees. More than 80% of all employees hold a university degree (mostly electrical
engineers), 8% are Masters and Doctors of Science. ETK desires to attract, develop and retain the best
workforce. The age and gender structure also show improvement. The average age of employees is 39,7 years
and as many as 400 employees are under the age of 32, approximately 30% are female employees. All
employees work full-time. Four executives come from Sweden.
ORGANISATIONAL BACKGROUND:
HISTORY OF THE ORGANISATION
ETK continued its successful operations on the firm foundations laid by the Croatian enterprise "Nikola Tesla".
"Nikola Tesla" was founded in 1949 and it was the largest specialized manufacturer and exporter of
telecommunications systems and solutions in Central and Eastern Europe. The close collaboration with Ericsson
dates back to 1953. The Company manufactured, installed and put into operation three generations of exchange
systems. Considerable transformation took place in the last eight years after the company had joined the
Ericsson group. ETK switched over to software production and supply of total telecoms solutions and services
for the New Telecoms World (NTW) based on mobile Internet. The transformation of the Company is
manifested in a customer-oriented organization, expansion to regional and world markets and optimizing the
company as to the structure, competence and the number of employees.
During 2002 the company confirmed its standing as the expert centre for total communication solutions and services in
Central Europe, and in the new Ericsson organization it was assigned the status of one (out of three) centres of business
excellence in customer solutions and sales support in the entire EMEA market area. The Croatian Chamber of Commerce
granted to ETK «The Golden Marten» award as the best large company in the country in 2001.
THE ORGANISATION’S QUALITY JOURNEY (including self assessment)
ETK aims for an effective and efficient functioning of TQM system. In the period 1996-2003 ETK
accomplished a lot of significant quality improvements and some of them are:
- 1996: First Self-assessment against the EFQM EM by using the questionnaire approach
- 1997: ISO 9001 certificate granted by SIQ to our Research & Development Centre for software design.
- 1998: Research & Development Centre gets the 3rd Capability Maturity Level for software design.
- 1999 until 2001: Self-assessments against Ericsson Business Excellence Maturity model.
- 2000: ETK is certified according to the standard ISO 9001:1994 by Det Norske Veritas.
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- 2001: As part of the Ericsson Global certification BSI granted to ETK certificate ISO 14001.
- 2002: Integrated management system ISO 9001, ISO 14001 and OHSAS 18001 published on ETK Intranet.
- 2002: Self-assessment against EFQM EM, a questionnaire approach, performed by Top Management Team.
ORGANISATIONAL ENVIRONMENT
ETK is an important part, the expert center, in Ericsson's Market Unit Central Europe (Croatia, Slovenia, Bosnia
and Herzegovina, Hungary, Poland, Czech Republic and Slovakia) as well as in Ericsson's Market Area Europe,
Middle East and Africa (EMEA).
THE PRODUCTS & SERVICES OF THE ORGANISATION
Network Rollout (Node Implementation, Network Build, Network Migration), Customer Services (Hardware
Services, Network Support, Consulting Services), Ericsson Education (Consulting Services, Ericsson Online,
Competence Development Solution), System Integration (Mobility Solutions, Network Management & Service
Assurance, Customer Management, Business Consulting), Professional Services (Network Consulting, Managed
Services)
THE VISION, MISSION AND VALUES OF THE ORGANISATION
The commitment of ETK is to be the preferred business partner and software/ solutions/ services provider for the NTW in
Croatia and within the EMEA region. The mission of ETK is: To understand the customers’ needs, to create business
opportunities for them and to offer to them the NTW solutions by being faster and better than any competitor, and by
being the best partner for software and services within the Ericsson Group. In doing so ETK will generate profit and
growth for all its shareholders. The ETK’s culture is defined by following corporate values: the professionalism in
completion of everyday job, the respect for people which is manifested in top working conditions and partnership with
customers and the perseverance in the realization of the set goals.
THE ORGANISATION’S CUSTOMER BASE
ETK has three cornerstones of its operations: the Croatian market, foreign markets and Ericsson's internal
market. Within the corporation the company has the marketing and business responsibility for a number (70) of
countries in EMEA region. In 2002 the company realized 80% of its total sales on the export markets including
Ericsson's internal market. The main customers in domestic and export markets are incumbent telecom operators
for fixed and mobile telephony, emerging operators, Internet Services Providers and big companies.
THE STRATEGIC OBJECTIVES OF THE ORGANISATION
ETK is focused on the following: a) Strengthening the global and regional role in the NTW, b) Repositioning
from the solution provider to concept provider, c) Increase of the services content in the sales structure,
d) Excellence in Service Performance, e) Pro-active and inventive selling, f) Forming partnership with our
customers and other business partners, g) Profitability and cost control, h) Competence development & people
empowerment, i) Management planning, j) Strengthening Company's image, k) Positioning Company as the
leader in the New Economy in Croatia, l) Promotion of Company as an environmentally and socially responsible
company.
THE EXTERNAL ENVIRONMENT IN WHICH THE ORGANISATION FUNCTIONS
Ericsson Nikola Tesla is a company in Croatia. The Republic of Croatia gained its independence in 1990 and is
now a country in transition. By its cultural heritage Croatia is a Middle European country with 4,3 million
inhabitants, and it extends over an area of 57 000 square kilometres. The capital is Zagreb with almost one fifth
of the entire population residing there. The gross domestic product per capita is 5000 USD. By the level of
development of the telecommunications infrastructure and according to the number of inhabitants using fixed
and mobile telephony Croatia stands side by side with developed European countries.
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CRITERION 1 : LEADERSHIP
GENERAL INFORMATION
Definition: How leaders develop and facilitate the achievement of the mission and vision, develop values
required for long-term success and implement these via appropriate actions and behaviours, and are personally
involved in ensuring that the organisation’s management system is developed and implemented.
The Leadership criterion is concerned with HOW the organisation’s leaders are involved in:
• Developing the mission, vision and values and are role models of a culture of excellence
• Developing, implementing and reviewing management systems
• Involving themselves externally with customers, partners and society
• Reinforcing behaviour through motivation, support and recognition
Who the organisation sees as leaders (formal and informal) and the numbers of leaders at the differing
levels within it?
Leadership in ETK is seen as the power to inspire and motivate, the ability to imbue employees with the desire
to change the organization and to be the best. ETK leaders create the vision and the strategy and present it and
themselves in such a way that employees feel enthusiastic and excited by it. ETK sees team leaders and line
managers as leaders. At present, ETK has 60 line managers on 3 levels: Company President and 13 Unit
Directors on the first level of management, 35 managers on the second level and 11 managers on the third level.
Female managers are represented with 30% of the total number.
How leaders are involved in the management system of the organisation?
Leaders are involved in the management system of the organization through different kind of activities: creating
vision and mission, making SWOT analyses and planning improvement actions, communicating organization
needs for changes and leading changes (organization, approaches, technologies), setting goals and indicators,
communicating and cascading that goals from the top to the employees, motivating employees for achievement,
recognizing and rewarding people and teams (reviewing and setting new ways), recruiting the best, through
fostering communication and good relationships (outdoor work meetings, at least one day a year they associate
with all employees outside the company, regular weekly or monthly briefing), team building, cost analysis and
cost control; they take actions to improve cost effectiveness, promote organization, people and achievement
inside and outside the company, take part in professional events (organized by company or customers). Team
leaders (young, enthusiastic, full of energy and with passion to win) are engaged in leading important projects in
the company and in the market area.
HRMS (Human Resources Management System) tool is used for Organization Management, People
Management, Management Planning, Recruitment, Competence and Performance Planning, also other tools
developed in the company to increase work efficiency (TRAMP, WARP).
The organisation’s values and behaviours that create the culture e.g. against which leaders are assessed
ETK fosters three main values: Professionalism, Respect and Perseverance, which are observed by leaders in
everyday’s work. Leadership style, relationship, structural skills, participation and networking skills are
reviewed and measured every year through the COMPASS and DIALOG surveys and the results are compared
(benchmarked) with Ericsson Corporate, MUCE and external Best in Class. Also, the managers are assessed
against four Ericsson Manager Roles: The Business Developer, The Innovator, The Competence Developer and
The Relationship Builder. Development Plan for management planning candidates is set up for developing and
improving leadership skills for all management levels. The LCC (Leadership Core Curriculum) program that
started in 2000 is mandatory for all managers.
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CRITERION 1 : LEADERSHIP
Sub-Criterion 1A
Leaders develop the mission, vision and values and are role models of a culture of excellence.
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: The Strategic Planning Process
APPROACH - Description of one key approach.
The Strategic Planning Process includes 2 aspects: 1) how to develop the main direction and strategies for the
company and 2) how to secure an agile handling of new strategic options based on the market development. The
first aspect, the development of main direction and strategies, is handled in 2 steps; development of strategic
direction, and development of company strategies. The second aspect, securing an agile handling of new
strategic options, is handled in the strategic business development sub-process. A supporting strategic business
intelligence function is connected to the process. The company’s main direction (Ericsson Strategic Planning –
ESP) is a document where the company’s overall strategic and operational direction is stated.
The company direction includes:
• Our Mission and Vision and Values
• A SWOT analysis (not widely spread)
• Our Long-Term Objectives
• Our Main Strategies and Efforts.
The Main Strategies set the main guidelines on how the Long-Term Objectives should be achieved. The Top
Ten Activities in the booklet ESP 2000-2004 are: 1. Business for Mobiles, 2. Y2K Project for NTW, 3.
Competence Shift, 4. Financing project, 5. Trim by SAP R/3, 6. Rightsizing, 7. Company optimization, 8.
Management competence 9. ETK Image and 10. Sales support in Central and Eastern Europe.
DEPLOYMENT
The content of the company direction (Ericsson Strategic Planning) is communicated to all employees in a
booklet and over ETK Intranet.
ASSESSMENT & REVIEW
The company direction is periodically assessed & reviewed and if necessary updated once a year, based on the
feedback from the ongoing strategic work with the Ericsson Strategies as well as from the line organization. Our
actual situation and the signals we get through our Business Intelligence and Strategy Evaluation Projects are
also used as input when updating company direction.
Additional approaches applicable to this sub-criterion
Deployment
Effectiveness
measures & cross
reference to results
ESP Ericsson Strategic Planning - booklet
Intranet
ESP 2000-2004 ETK Strategic Plan 2000-2004 – booklet with Top
Ten Activities
Leadership, measured by DIALOG in 2002
Intranet
BSC and KPI in five
perspectives
% of accomplishment,
All employees
Goals, measured by DIALOG in 2002
Organisational efficiency, measured by DIALOG in 2002
All employees
All employees
Responsibility and initiative, measured by DIALOG in 2002
Empowerment, measured by DIALOG in 2002
All employees
All employees
ETK 73%, BinC 64%
(External benchmark);
Sub-Criterion 7A (2)
(3) (4)
ETK 71%, BinC 85%
ETK 63%, BinC 67%,
Sub- Criterion 7A (3)
ETK 61%, BinC 72%
ETK 35%, Average
23% (for IT, telecom
and Service
companies), SubCriterion 7a (1)
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CRITERION 1 : LEADERSHIP
Sub-Criterion 1B
Leaders are personally involved in ensuring the organisation’s management system is developed,
implemented and continuously improved.
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Management Planning (MP)
APPROACH - Description of one key approach.
To ensure that the organisation has the managers able to meet organisation needs or to fill new appointments,
ETK implemented the Management Planning Process, set up and recommended by Ericsson. High potential
people and good performers are identified and assessed against Individual Capacity feature (Intellectual Ability,
Self-Esteem, People Orientation, Perspective and Result Orientation) and against four Ericsson Manager Roles
(The Business Manager, The Innovator, The Competence Developer and The Relationship Builder). Selected
candidates are included in the Management Planning Process – Development Plan, Succession Planning, annual
review and appointments. They are grouped in 5 categories: Management Team, International Candidates, Local
Candidates, High Potential and Potential Managers. At present, there are 67 people in this pool and 50 of them
are included in the Management Development Plan for Y2003/2004.
ETK managers develop, implement and improve the ETK management system by implementing: Corporate
Operational Development directives (Appendices FIG. 5A-1), Risk Based Assessment (RBA – business oriented
application for internal management system auditing), Self-assessments against EFQM questionnaire
(Appendices FIG. IA1-1), teamwork, discussions in communities and external certification body reports.
DEPLOYMENT
The HR function as a whole has also been fully engaged in MP process. Throughout the year HR director holds
meetings with MP candidates’ superiors and they discuss development opportunities in terms of different roles
and projects. Once or twice a year MP candidates have a meeting with Top Management Team and MP
Candidates recognised as Corporate candidates. We are very pleased that one of our MP candidate is engaged as
a member of Ericsson’s Young Advisory Team - The Y@) for Y2003/2004. In all sectors the managers are
involved in RBA, Self-assessment and in improvement proposals implementation.
ASSESSMENT & REVIEW
The Management Planning process is assessed and reviewed periodically by ETK HR Director and the Top
Management Team and once a year by the Corporate Reviewer. The best candidates are selected for Ericsson’s
Next Generation or as Corporate Candidate. ETK has 3 Next Generation candidates and 1 Corporate candidate.
RBA is giving feedback of direct relevance for the operational management system of the organisation.
Additional approaches applicable to this sub-criterion
Deployment
Effectiveness
measures & cross
reference to results
Assessment and Development Centre – Program for assessment of
MP candidates. The Centre uses psychometric testing materials to
measure competence in verbal and numerical ability and a
personality questionnaire. In addition to that, business scenarios are
given to candidates to demonstrate competence on an individual and
group capacity. ETK ran 5 (five) Assessments and Development
Centres during Y2000/Y2003.
51 candidates
A systematic evaluation of all MP candidates is carried out with
HRMS Web Tool, which provides clear visibility to senior managers
of the managerial resources available to them with an emphasis on
their potential for further advancement and for nomination to
Ericsson Management Institute programmes
All managers
have access to
this tool
47,1 % of them got
recommendation for
managers positions,
27,5 % of them got
recommendation with
reservation and 25,5 %
of them are not
recommended
No. of MP candidates
in the pool/ No. of
recognised as
Corporate Candidates
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CRITERION 1 : LEADERSHIP
Leaders are involved with customers, partners and representatives of society.
Sub-Criterion 1C
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Leaders outside of company
APPROACH - Description of one key approach.
ETK Leaders promote and maintain good relationships with customers, partners and representatives, take part in
their activities, thus contributing to general social progress, participate in the activities of associations, join the
trade delegations on the state level visiting other countries (entrepreneurs), are represented in professional
bodies and associations (HUP – Croatian Association of Employers), organize events.
ETK has implemented lean KAM organization oriented towards customers to ensure:
• Business opportunity creation and responsibility for customers
• Short/Long-Term Account Plan (Sales plan for every customer), including sales of services
• Operative price management within reference price framework/rules
• Customer financing responsibility.
DEPLOYMENT
ETK leaders (especially KAM) spend a lot of their time with customers, partners and representatives of
community in all ETK markets. Some exhibitions and events have for years been organized at the same date
every year. ETK experts for support functions are very active in various professional societies and governmental
institutions. They share their high professional knowledge with the employees of other Croatian organisations
thus contributing to prosperity development.
ASSESSMENT & REVIEW
ETK was nominated and was the winner of «The Golden Marten» for the year 2002 in the category Best Big
Company - Croatia’s most prestigious business award given by the Croatian Chamber of Commerce.
Award for Business Woman of the Year – the winner was Gordana Kovačević, ETK Vice President and
Operations Director.
Organizational units regularly carry out Key Customer Surveys and hold regular meetings with Key Customers
(VIPnet, HT)
Share best practices
Number of articles published in various media. Customer Satisfaction Index, market share.
Additional approaches applicable to this sub-criterion
Deployment
Effectiveness
measures & cross
reference to results
Exhibitions and Events related to the New Telecom World inside and
outside ETK
e-government project for Croatian government
Partnerships with small Croatian companies
Home Market
Sub-Criterion 8A (3)
(4); questionnaires
Self-assessments against excellence models, since 1996
ISO 14001 certificate, OHSAS 18001 MS, lectures inside and
outside ETK in other companies and organisations
Customer training centre
Participation in Croatian professional bodies
Customer satisfaction measurements
Sponsorships, donations to non-profit organizations
Sectors, TMT
ETK,
community
All customers
All relevant
bodies in
Croatia
Key customers
Croatia
Leaders communicate with ETK customers, DIALOG 2002
All employees
Croatia
7 companies
No. of new
applications for Mobile
Internet
Appendices FIG IA 1-1
Internal and external
audits, inspections
Exam
No. of ETK employees
in professional bodies
See Criterion 6 (1)
Sub-Criterion 8A (1)
(2)
ETK86%,MUCE 80%,
Sub-Criterion 8A (3)
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CRITERION 1 : LEADERSHIP
Leaders motivate, support and recognise the organisation’s people.
Sub-Criterion 1D
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Human Resources Management System -HRMS
APPROACH - Description of one key approach.
HRMS is Ericsson's mandatory HR Management System, based on SAP R/3. The system should work as a
global database with employees data, inter-connected between companies and countries, with the functionality in
line with Ericsson's key processes. It is adapted for integration with other SAP R/3 modules, such as Finance
and Logistics.
HRMS is a tool that supports managers in all HR management activities. By using this tool managers are able to
see all data about employees, to set and follow up goals and indicators and to give feedback to employees, to
promote and reward (Performance Management), to define required profiles within Organization and Position
Competence (Competence Planning) and to compare them with Present Competence profile (analyse
Competence Gap and set Development Plan), to identify and assess potential managers (Management Planning),
to recruit talented people (Recruitment), to set and analyse organization structure (OM) and run reports, see
Criterion 3 General Information.
DEPLOYMENT
All managers have access to this tool and also a web interface to Recruitment, Management Planning and
PM/CP Management Modules. We have just deployed CP/PM Module to all managers and employees (70 % of
total number of employees attended the presentations).
ASSESSMENT & REVIEW
HR function monitors, follows up and animates managers and employees to use this tool.
An important segment in the HRMS implementation is improvement: managers measure and analyze the
employees’ results or actions.
This part is also important in using and improving the HRMS processes. To improve the processes in the
subsequent plan and performance evaluation (once a year), ETK managers assess all positive and all negative
variation in relation to the robust, committed or stretched objectives.
Additional approaches applicable to this sub-criterion
Deployment
Effectiveness
measures & cross
reference to results
President’s and managers’ letters to employees by e-mail, Intranet
site and publications
President’s All-Employee Award
All employees
Employees satisfaction
All employees
PD discussions, Performance Evaluation (PE)
Award granted to employee by direct manager after performance
evaluation
Employee’s achievement publishing
All employees
All employees
Objectives for Sales
and customer
satisfaction realization
Sub-Criterion 7B (4)
% of objectives
accomplishment
No. of articles
Clear and easily accessible mission, vision, policies, directives,
guidelines, objectives and targets
Leaders support the organisation’s people, DIALOG 2002
Motivated ETK employees, DIALOG in 2002
Leaders recognise the organisation’s people, DIALOG 2002
CRITERION 2 : POLICY & STRATEGY
Intranet, comp
newspaper
Corporate and
ETK Intranet
All employees
All employees
All employees
No. of questions to the
helpdesks
ETK83%, MUCE 79%
ETK 58%, BinC 72%
ETK64%, MUCE 63%
GENERAL INFORMATION
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Definition: How the organisation implements its mission and vision via a clear stakeholder focused strategy,
supported by relevant policies, plans, objectives, targets and processes.
The Policy & Strategy criterion is concerned with HOW the organisation:
• Uses a relevant range of external and internal information when developing and reviewing its
policies and strategies
• Develops those policies and strategies in practice
• Implements them through relevant processes and effective plans
• Communicates them to relevant audiences
Who the organisation sees as its key stakeholders?
ETK’s key stakeholders are: Customers, Employees, Suppliers, Shareholders, the Republic of Croatia as well as
the local Community. ETK generates profit and growth for all its stakeholders.
.
What are the key strategies of the organisation and how does the organisation use continuous learning /
benchmarking to inform strategy development?
In line with Ericsson Strategies Planning 2000-2004 (the goal of which is to secure a long-term development of
ETK operations) the MUCE and ETK strategies for 2003 are:
- to aggressively exploit selected business opportunities by creating added value for the customer and excellent
partnership.
- to capitalise on synergies by using the regional resources to create a cost-effective market unit.
- to develop and promote generic product offerings from the business units.
- to drive Services as a business on its own right.
- to be visible in order to be the No. 1 telecommunications supplier in the region and the partner of choice. To
build strategic partnership with selected customers.
- to build and maintain competence.
To compete in the New Telecom World, ETK needed (in 2000) and still needs a major competence shift from
the traditional telecommunications world towards The New Telecom World (NTW), meaning datacom and
infocom competencies. Candidates for intensive education within the company are defined and found; active
training within new areas is performed internally and externally. For that purpose ETK established partnerships
(co-operation agreements) with the Faculty of Electrical Engineering and Computing in Zagreb and Split and
also invested in a laboratory for NTW in Zagreb. Competence gap analysis, based on Ericsson Competence
Model, was accomplished and a program for Competence Shift towards NTW was developed. The existing
competences for NTW are periodically benchmarked with those in other MUCE companies. Competence
managers both at ETK level and in some large sectors were appointed.
What are the key processes and how is the ownership of processes decided?
The ETK key processes are:
1) ETK without R&D: Sales and Marketing Processes for Direct Distribution within the Operator Segment. This
applied process is compatible with generic Ericsson Business Process (EBP).
2) Research & Development:
- Process Support
- Corporate Processes
- Assignment Handling Processes
- Project Management Processes
- Product Realization Processes.
For generic Ericsson processes a process owner was appointed at corporate level. For processes applied at local
companies a process owner is appointed locally. Process Owner for processes stipulated by ISO management
system standards is the relevant company manager, e.g. Company Quality Manager for ISO 9001 processes.
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CRITERION 2 : POLICY & STRATEGY
Sub-Criterion 2A
Policy and strategy are based on the present and future needs and expectations of stakeholders.
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Business Development
APPROACH - Description of one key approach.
ETK is continuously monitoring and analysing the situation in the market(s). This monitoring is aimed at
understanding the business environment and ETK competitive position in order to utilise the full market
potential and capitalise on the market needs and identified business opportunities. ETK performs Business
Analysis by implementing a Market Analysis (Market potential, Market trends, Regional/Global aspects, Local
economy trends), and by considering Business Environment (“Power structure”, Liberalisation & deregulation,
Risk & contingency plans) and Business Intelligence (Industry analysis, Competitor analysis, Key players).
By anticipating possible (future) business scenarios ETK determines where it wants to be and works out
medium-/long-term business plans policies and strategies to get there.
These activities enable ETK to deliver the high quality forecasts, to link its strategies with actions, to monitor
the performance and to make strategic adjustments along the journey towards the wanted position.
DEPLOYMENT
ETK Mission, Vision, Values, Long-Term Objectives and Main Strategies are communicated to all ETK units
and employees via ETK web sites and booklets. Every year the deployment process is performed according to
the following scheme: 1) At MUCE and ETK level main strategies and objectives (planning) are defined and
aligned with those on the corporate level, 2) At managers meetings Key Success Factors are determined, 3) Unit
managers have to decide on units goals and targets and they have to align them with the company goals and
targets, 4) Key Performance Indicators (KPI) are selected for stipulated business perspectives (e.g. Financial,
Customers, Employees, etc) presented on BSC and 5) units and employees responsible for KPI prepare
standardised periodical reports on KPI for the purpose of informing and acting (corrective actions if necessary)
with BSC.
ASSESSMENT & REVIEW
The units and employees responsible measure and report monthly/quarterly on attained KPI levels for publishing
on ETK BSC. For each KPI robust, committed and stretched levels are determined. Actual achievements for all
stipulated business perspectives are published on ETK web sites (detailed data are password protected) and
general picture is accessible to all ETK employees. If BSC for some perspective and KPI indicates possible
future or already existing negative trend, respective unit manager has to assess and review all data and has to
take necessary actions (preventive or corrective). Company performance is continuously monitored and
regularly discussed (quarterly) in Business Review meetings held on top management level. Corrective actions
(if any) are agreed and monitored thereafter. In regularly held Managers Forum (ETK president and all ETK
managers) BSC results are also discussed and communicated.
Deployment
Effectiveness
measures & cross
reference to results
Intranet
Additional approaches applicable to this sub-criterion
Ericsson Strategic Planning (ESP 2000-2004)
Business Analysis
Business Planning
80%
90%
Sub-Criterion 9A (1)
(2) (3) (4)
% Of accomplishment
% Of accomplishment
Business Innovation
Business Consultancy
50%
50%
% Of accomplishment
% Of accomplishment
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CRITERION 2 : POLICY & STRATEGY
Sub-Criterion 2B
Policy and strategy are based on information from performance measurement, research, learning
and creativity related activities.
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Balanced Scorecard
APPROACH - Description of one key approach.
ETK outputs are promptly presented on web site by using BSC approach. (Appendices FIG. 2B-1) At the
beginning of the year stipulated KPI are distributed on the Strategy Tree for the following 5 areas (perspectives):
Financial, Customer, Internal Efficiency, Innovation and Employees. A cockpit communicator indicates the
achievement for each KPI graphically by positioning the needle (pointer) on one of several relevant positions:
Off Track, Warning, On Track, On Target or Excellent. This approach enables managers to identify easily and
quickly all divergences from clearly marked objectives and targets.
Based on ETK achievements (i.e. the knowledge of our strength) published on BSC and on systematically
analysed information supplied by our Business Development unit (e.g. information on market potential and
market trends; liberalisation and deregulation, risks, competitors, key players; technology innovations, routines
and strategies for partnering, end-user perspective, network development scenarios; value chain, strategies for
operators) the ETK management defines new strategies and revises the existing ones.
DEPLOYMENT
ETK objectives/ KPI and their values in current year for the levels robust, committed and stretched have been
published on ETK Intranet for 5+yrs. These objectives/KPI are used for determination of objectives for single
unit and for every employee as well. This approach enables an alignment of every employee’s performance plan
for actual year with corresponding unit or ETK plan.
ASSESSMENT & REVIEW
The information related to company performance is assessed and reviewed periodically (monthly/quarterly) by
the respective unit/function managers and/or ETK Management Team. Assessment and Review of results
published on ETK BSC are described in Sub-Criterion 2A.
Additional approaches applicable to this sub-criterion
Business Intelligence
Objective setting process
DIALOG, especially Empowerment, Management/Leadership
Customer satisfaction measurements
Deployment
Effectiveness
measures & cross
reference to results
30%
BIC - Corporate
Business Intelligence
Centre, Intranet, SubCriterion 6B (2)
BSC
Sub-Criterion 7A (1)
(2) (3) (4)
Sub-Criterion 6A (1),
6B (1) and (4) KAM is
internal customer
See Sub-Criterion 4E
% of improvement
proposals
accomplishment,
Appendices FIG. IA1-1
ETK 71%, BinC 85%
100%, 5+yrs
100%, 5+yrs
Key
customers,
5+yrs
All employees
Whole ETK,
5+yrs
Competence shift
Self-assessments
Familiarity with the goals, DIALOG 2002
All employees
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 11 of 52
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CRITERION 2 : POLICY & STRATEGY
Policy and strategy are developed, reviewed and updated.
Sub-Criterion 2C
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Development of policies and strategies
APPROACH - Description of one key approach.
Corporate policies are prepared after extensive consultation within Ericsson. It is not expected, however, that
these policies will provide full and absolute guidance; on the contrary, it is expected that the question of
interpretation and suggestions for improvements will arise. Corporate Policies are mandatory and must be
adhered to unless the appropriate Corporate Function approves a variation.
By taking into account the collective experience of the organization, the Corporate Functions are able to develop
and continually improve Ericsson Corporate Policies.
In line with corporate policies and strategies, ETK management develops more specific and possibly more
detailed policies and strategies by reviewing the long-term objectives and business framework (mission, vision,
values and scope of operation) on a yearly basis. Strategies to obtain the objectives are continuously worked
with.
DEPLOYMENT
A Corporate Policy is the framework established by the Chief Executive Officer within which the operations in
the entire Ericsson organization shall be carried out.
The website 'Inside Ericsson' is the main distribution point for the Corporate Policies. Only the versions listed on
that website are guaranteed to be the correct versions. Which means that the Chief Executive Officer approved
them and they have not been altered in any way since this approval. All policies are available on MUCE and
ETK website as well as Ericsson Intranet under “Work Support”.
ASSESSMENT & REVIEW
The ETK management periodically performs the assessment and review of ETK policies and strategies by
comparing the achievements with planned results. These assessments include regular Risk Based Assessment
(RBA), Management Reviews and Self-Assessment. Company units/functions continuously scan for, and
evaluate new business opportunities and threats and, if necessary, develop/modify/adjust policies, objectives and
strategies for the ETK to act on.
Additional approaches applicable to this sub-criterion
Corporate Policies
Corporate Directives
Corporate Guidance
SWOT Analysis
Corporate Business Intelligence
Critical Success Factors identification (ESP 2000-2004)
Customer satisfaction measurements
DIALOG, employees satisfaction measurements
Media appearances (articles about ETK published in public media)
Investor relations
Deployment
Effectiveness
measures & cross
reference to results
Intranet
Intranet
Intranet
All units
Intranet
Intranet, all
employees
Key customers
All ETK
employees
BSC
BSC, certificates
BSC
Action Points
All important
media in
Croatia
Investors
Criterion 2 General
Information (GI)
Sub-Criterion 6A (1)
Sub-Criterion 7A all,
7B (1) (2); Diagrams,
Scores
No. of articles about
ETK published in
media, Sub-Criterion
8A (1)
Sub-criterion 9A, 9B
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 12 of 52
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CRITERION 2 : POLICY & STRATEGY
Policy and strategy are deployed through a framework of key processes.
Sub-Criterion 2D
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Sales and Marketing Process for Direct Distribution within the Operator Segment
APPROACH - Description of one key approach.
The process flow is based on Customer Relationship Management (CRM) i.e. on Customer Satisfaction and it
represents the approach and activities that are in line with ETK Quality Policy (“…We provide products,
services and solutions that satisfy customer expectations”). The process flow starts with the very first continuous
processes of: Strategy Implementation Planning – the core of all activities, Marketing - preparing the market
and paving the way for any sales and Create Business Opportunities – the continuous search for business.
(Appendices FIG. 2D-1)
The purpose of sub-process Strategy Implementation Planning is to provide the basic platform for all Sales and
Marketing activities towards a customer. Based on Market Unit’s Market Plan the Account Plans outline the
strategies, objectives and action plans to create new and continued business.
The sales process is supported by the Core Three Concept, and based on Value Based Selling. The three
members of the Core Three Team (Account/Commercially Responsible, Total Solution Responsible and
Contract Fulfillment Responsible) cover permanently the full range of activities towards a customer and have
ultimate responsibility and authority within their respective scope of work.
DEPLOYMENT
The process is deployed in all ETK sales units and Operations and for all contracts.
ASSESSMENT & REVIEW
Core Three Reviews serve to secure the progress according to decisions taken and to provide the firm basis for
coming decisions. The Core Three team members meet, if possible together with other participants in the project
and specialists. Filled out checklist is the basic input for the meetings.
Sales Decision Points form the top of the hierarchy. They are built on the input from the Core Three finalization
Reviews.
The Sales Process is measured on Hit-rate in combination with a qualitative analysis. Hit-rate is based on
targeted business opportunities at Sales Decision Point - Pursue Business Opportunity and measure the rate of
signed contracts and number of offers/tenders. The qualitative analysis shall indicate the reasons for success or
loss.
Additional approaches applicable to this sub-criterion
ETK Market Plan
Account Plan
Core Three (teamwork)
Business Intelligence (Competitor Information)
Customer satisfaction
Investor relations
Risk Based Assessment-RBA, see criterion 5
Self-assessments (EFQM Excellence Model and Ericsson Model)
Deployment
Effectiveness
measures & cross
reference to results
All markets
All accounts
All customers
and all
contracts
Sub-Criterion 9A (3)
% of realization
Hit-rate Sub-Criterion
6B (1)
All major
customers,
5+yrs
Investors
All sectors, 2
yrs
ETK, 7 yrs
Sub-Criterion 6B (2)
CSI (Croatian mobile
operator VIPnet
CSI=100%)
ETK financial results
No. of improvement
proposals
Appendices FIG. IA1-1
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 13 of 52
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CRITERION 2 : POLICY & STRATEGY
Policy and strategy are communicated and implemented.
Sub-Criterion 2E
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Policy and Strategy communicating
APPROACH - Description of one key approach.
Corporate policies and strategies are published on the Corporate Intranet. Each Market Unit defines its policies
and strategies in line with corporate policies & strategies and communicates them on the Intranet sites. Local
companies, like ETK, adjust its policies & strategies with relevant MU’s policies & strategies and communicate
them in presentations, booklets, manager forums and Intranet sites. ETK’s Communication department issues
periodically booklets named “Ericsson in Croatia” and “Ericsson Strategic Planning” in electronic and hardcopy
version. These publications contain the mission, vision, policies, main strategies and objectives for the period of
5 years, as well as for the actual year. All objectives are adjusted to the relevant and actual policies. All ETK
units have their goals for the actual year, and targets for each month, if this is appropriate. According to the
unit’s goals, all ETK employees have their Performance Plan with individual work tasks. Every year the
responsible manager performs for his employees an overall rating of their Performance Plan accomplishment by
using ratings with meaning: outstanding, excellent, good, needs improvement and not acceptable. Employee’s
annual award in percent of annual salary depends on the rating of the Performance Plan for 3+years.
For each employee the annual award in percent of his/her annual salary depends on the rating of individual
Performance Plan, this approach has been used at ETK for 3+years.
DEPLOYMENT
Policies & strategies have been deployed 100% for 5+years on Corporate and ETK Intranet sites. Individual
Performance Plan is deployed 100%.
ASSESSMENT & REVIEW
Each unit manager prepares for the Company President a monthly report on the unit’s objectives
accomplishment. Company president and ETK Strategic Team periodically review actual strategies and
objectives realization and inform all ETK managers at the meeting of Manager Forum. The company managers
responsible periodically assess actual policies and prepare new proposals for the revisions. The president or top
management representative for the relevant area approves the new revisions of policies.
Additional approaches applicable to this sub-criterion
Deployment
Effectiveness
measures & cross
reference to results
Human Resources Management System, Competence Management
All employees
Competence profile,
Appendices FIG. IA2-1
Managers Forum (president’s periodical meeting with all managers)
Mr. E Competence shift
Performance Management in ETK
All managers
62%
Core
processes
Intranet
Intranet
Intranet
All sectors,
2yrs
ETK, 7yrs
Intranet
Policies & Forms, more than 37 (People and Culture department)
Work Support (Policies) on Corporate Intranet
Ericsson Direction (Main Strategies)
Risk Based Assessment-RBA
Self-assessments
ETK Operational Management System, see Appendices FIG. 5A-1
Targets are met
BSC - KPI
No. of IP, follow-up
and next RBA
Appendices FIG IA1-1
RBA-internal audits
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 14 of 52
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CRITERION 3 : PEOPLE
GENERAL INFORMATION
Definition: How the organisation manages, develops and releases the knowledge and full potential of its people
at an individual, team-based and organisation-wide level, and plans these activities in order to support its policy
and strategy and the effective operation of its processes.
The People criterion is concerned with HOW the organisation:
• Plans, manages and improves its people resources
• Identifies, develops and sustains its people’s knowledge and competencies
• Involves and empowers its people
• Communicates with its people
• Rewards, recognises and cares for its people
How the population of the organisation is made up. Include overall numbers, and any relevant
breakdowns, for example different grades, locations, part time, full time, agency, contract staff etc.
ETK has 1080 employees – 320 female and 760 male. All of them have a permanent job. The qualification
structure is as follows:
− University education – 803 employees, 6 of them with Doctor’s degree and 63 with Master’s of Science
− 2-year university education – 68 employees
− High school education – 169 employees
− Highly skilled workers – 8 employees
− Skilled workers – 12 employees
− Lower education – 20 employees
The average age of ETK employees is 40 years. 284 ETK employees are younger than 30, 538 employees are
between 30 and 50 years of age and 258 employees are 50 or older.
The average service record is 16 years. The structure is: 458 ETK employees have 10 end less years of service,
328 employees have between 11 and 25 years of service and 294 have 26 and more years of service.
What externally recognised systems standards, e.g. Investors in People, Excellence through People etc. the
organisation is applying in the management of its people?
ETK is applying the corporate Human Recourses Management System (HRMS) based on SAP/R3,
which supports and connects key HR processes in the local company, thereby enhancing the quality and
efficiency in HR processes and administrative work. The system works as a global database with
employees data, inter-connected between companies and countries, with the functionality in line with
Ericsson's key processes. HRMS consists of several functions (modules), all run in the same system
−
Basic Personnel Administration - personnel & organisational data from hiring to leaving,
statistical analyses available at any time
−
Recruitment - from open applications and vacancies to applicant pool or hire
−
Competence Management - analyzes organisational strategic competence, competence profiles,
Curriculum Vitae & Personal Development documentation, organisation & staffing, dimensioning
& forecasts
−
Management Planning - information about managers &management candidates – Curriculum
Vitae & Individual Performance, searches for candidates who match requirement profiles when
filling vacancies, statistical analyses
−
Performance Management – measuring, evaluating & following the individual performance
achievements according to defined individual plans.
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
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CRITERION 3 : PEOPLE
People resources are planned, managed and improved.
Sub-Criterion 3A
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Fairness in all terms of employment including equal opportunities
APPROACH - Description of one key approach.
ETK pays much attention to the recruitment of the best workforce and their development. ETK ensures equal
opportunity in employment, development, compensation and all other personnel activities without discrimination
due to race, religion, colour, nationality, sex or age. In order to achieve our main objectives “To dominate the
new fast growing Mobile Internet space” is it very important to change the culture and the values in the
company. In ETK today female managers achieve very good results and demonstrate excellent leadership skills.
ETK won the Equality Award for the year 2000 against tough competition with other Ericsson companies in
Europe. The Ericsson Equal Opportunities Award is a high profile activity within the company, stimulating
actions that support the work for equality between men and women within Ericsson.
EEEA enables competition between different Ericsson companies in Europe. It promotes the concept of equality
and encourages the companies to take the initiative to bring forward and to develop female resources. This is
valid on all levels of the company hierarchy. All Ericsson companies in Europe can use EEEA slogan and
logotype: a) in recruitment advertisements, b) on letters and envelopes, c) on the company's web-site and d) in
press releases concerning personnel recruitment and the improvement of working conditions for men and
women.
DEPLOYMENT
Ericsson strives for workforce diversity, and adheres to the principles of equal and non-discriminatory
employment opportunities. According to corporate policies and culture, from the year 1995 on ETK has ensured
equal opportunities for all its employees.
ASSESSMENT & REVIEW
People resources are planned, managed and improved in compliance with job requirements and present
competencies. Managers, together with employees, measure, plan and improve the competences of the
employees through Performance Management Process.
Additional approaches applicable to this sub-criterion
Corporate human resources policies and directives
Employees surveys related to benefit programs
Career Development Managing
Competence Management
Deployment
Intranet
Intranet
New managers
Intranet
Compensation & Benefits System
Intranet
HRMS
Competence shift
All employees
Intranet
ETK job catalogue (job descriptions)
ETK policies and forms
Working time, very flexible
All employees
Intranet
Intranet
Human Capital Index, DIALOG 2002
All employees
Effectiveness
measures & cross
reference to results
Internal efficiency
Sub-Criterion 7B (2)
(3)
Job position review
Competence status
review
Best practice/Policy
Improvements
See Sub-Criterion 1D
See Improvement
Action 2
Internal efficiency
Appendices FIG. 4C-1;
Sub-Criterion 7B (3)
ETK 670, BinC 730
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 16 of 52
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CRITERION 3 : PEOPLE
People’s knowledge and competencies are identified, developed and sustained.
Sub-Criterion 3B
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Aligning individual and team objectives with the organisation’s targets
APPROACH - Description of one key approach.
To align the performance of each employee to the objectives of his/her organization, according to corporate
rules, ETK has a Performance Management process.
The purpose of that process is to set a global framework to connect business objectives with team and individual
goals and to secure a qualitative feedback to foster a high performance culture driven by customer demands.
There is a clear link between the unit’s objectives and targets and the team and individual goals through
individual tasks plan. Each employee has his/her individual plan for current year and the employee and the
manager evaluate the performance of the employee at the end of the planning period.
DEPLOYMENT
Heads of Ericsson Units and Companies are responsible for implementing a local Performance Management
Process based on the Corporate Directive. In ETK that process has been implemented in the whole company
since the year 2000. Yearly ETK objectives and targets are cascaded from the ETK level to sectors’ level and
finally to each employee’s performance plan, i.e. deployment is 100%.
ASSESSMENT & REVIEW
HR role is to support and encourage the line management in these processes and to drive the connection of goal
setting and following-up towards both competence planning and remuneration.
Every manager in ETK is responsible for Performance Management within his or her own unit. All employees
are active in goal setting and responsible for their own competence development. Performance is evaluated and
considered as one element in the compensation process.
Additional approaches applicable to this sub-criterion
Ericsson Strategic Planning (ESP 2000-2004)
Reviewing and updating individual and team objectives
Appraising and helping people improve their performance
Competence Management
HRMS
Roles and Responsibilities in the Ericsson organisation
Ericsson Competence Model (competence profile development for
individual employee and organisation)
Competence shift, see sub-criterion 7B, See Improvement Action 2
Competence in 2002
Ericsson University (seminars on Ericsson Intranet)
Seminars for employees (Quality, Environment, Occupational Health
and Safety)
Human Capital Index , DIALOG 2002
Work towards clear goals, DIALOG 2002
Goals follow-up
Deployment
Effectiveness
measures & cross
reference to results
Intranet
100%
100%
All employees
Intranet
Intranet
Intranet
Sub-Criterion 1A
PM- PD&PE talk
PM- PD&PE talk
Sub-Criterion 7B (1)
See Sub-Criterion 1D
Intranet
Web Learn
Available to
all units,
Intranet
All employees
All employees
All employees
Competence gap,
Appendices FIG. IA2-1
ETK 80%, BinC 81%
Exam, certificate
Questionnaire,
certificate
ETK 670, BinC 730
ETK 77%, BinC 90%
ETK 81%, BinC 73%
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
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CRITERION 3 : PEOPLE
People are involved and empowered.
Sub-Criterion 3C
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Involvement and supporting innovative and creative behaviour
APPROACH - Description of one key approach.
In ETK employees are encouraged and supported in their individual and team-based participation in
improvement activities through their individual tasks that are planned together by the employee and the manager
for the current year. ETK calls for and supports innovative and creative behaviour through the award policy too.
For the purpose of additional motivation and evaluation of the creativity in the company, ETK has defined two
ways for rewarding proposed innovation solutions:
•
The innovation disclosure award
•
The patentable invention award
DEPLOYMENT
Involvement and supporting innovative and creative behaviour are a part of Performance Management process
in the whole company, especially in the unit Research & Development. ETK inherited from the ex-company the
Innovation Rule Book which has been in force since 1995. The invention award rules have been valid since
2000.
ASSESSMENT & REVIEW
The Innovation Management Group receives innovation proposals/solutions from the employees. The result of
their estimation can be a statement that the submitted innovation proposal provides
• possible business opportunity for ETK and further analyses are needed
• business opportunity for ETK or a patent application shall be submitted
Additional approaches applicable to this sub-criterion
Encouraging employees to work in teams
Deployment
In all ETK
units
ETK professional journal “Revija”
Publications in ETK newspaper “Komunikacije”
Empowerment Index, DIALOG 2002
Creativity and Speed, DIALOG 2002
In all ETK
units
Edition 5000
copies
All
employees
All
employees
Rule Book on the awards for creativity and inventiveness at work
Decision about rewarding the proposed innovation solutions in
company
International Assignments
All Employee Award 2003, ETK President’s Award introduced 2000
Units’ employees meetings outside ETK
Managers Forum (All managers’ meeting with ETK President in
ETK or outside ETK)
Effectiveness
measures & cross
reference to results
PM-Individual tasks
and evaluation
Number of copies
Internal satisfaction
measurements
ETK 35%, MUCE
28%; Sub-Criterion 7A
(1), positive trend 3yrs
ETK 66%, MUCE 59%
Intranet
Intranet
No. of rewards
No. of rewards
Intranet
Intranet
No. of assignments
Objectives and
achievement
BSC, DIALOG
BSC, Periodical
Reports
ETK units
Several
meetings per
year
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 18 of 52
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CRITERION 3 : PEOPLE
People and the organisation have a dialogue.
Sub-Criterion 3D
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Internal communication channels at ETK
APPROACH - Description of one key approach.
At ETK there are several permanent internal communication channels that comply with the corporate standards
and communication policy. The corporate policy is: " All of Ericsson's communications shall be planned,
executed and measured against the strategic objectives of our company and shall be designed to create the best
environment possible for Ericsson to do business. Communications shall always ensure that Ericsson treats its
communications on a non-selective basis and is in compliance with disclosure rules and requirements of
markets, stock exchanges and governments." The strategic orientation of ETK regarding the information and
informing is to secure the perception of Ericsson and confidence in the company through efficient internal and
external communication activities. Ericsson has to be perceived worldwide as one company. The responsibility
for internal and external informing has been given to the organizational unit Communications, and this
responsibility has also been incorporated in all management structures at ETK. Important communication
channels at ETK are: company paper “Komunikacije”, the Intranet and the Internet. "Komunikacije" is a
monthly that has been published regularly for 39 full years. Via the newspaper the employees are informed of
company agreements, business plans, policy and strategy of ETK, and they also obtain information about the
activities of the Labour Union. "Komunikacije", being the medium through which the management regularly
informs the employees, are entrusted with the task of developing the awareness that it is necessary to achieve the
corporate and company objectives, to increase the employees’ satisfaction and to enhance the loyalty to the
company.
DEPLOYMENT
In addition to the ETK Communications staff a number of associates/experts from all company units participate
in the publishing of "Komunikacije". This internal paper with the printing run of 5000 copies is intended for the
information of employees, retired employees, business partners, shareholders, state authorities, cultural and
educational institutions. The Internet and Intranet pages comply strictly with Ericsson corporate standards. They
are updated as required, daily, weekly or monthly, and this is taken care of by the specialists of ETK
Communications and by the responsible officers from every organizational unit. The mentioned channels are
used for the distribution of information from the management to the employees. Feedback information from the
employees is obtained at business meetings held in every organizational unit.
ASSESSMENT & REVIEW
All articles to be published in "Komunikacije" are read and revised by the Communications Director and by the
Editor-in-Chief.
The information on the intranet/Internet is also subject to evaluation on the part of the mentioned managers.
Once a year the readers of "Komunikacija" are interviewed via the web and their proposals are observed as
much as possible. The results of the survey are published in the paper and on the Intranet page.
Additional approaches applicable to this sub-criterion
Deployment
Effectiveness
measures & cross
reference to results
ETK’s newspaper “Komunikacije”
Inter/External
Internet/Intranet
Annual report on business performance of ETK
Inter/External
Stakeholders
ETK presentation booklet
Partners,
journalists
Costs, cost coverage
with advertisements
Costs, No of visitors
Costs, Sub-Criterion
8A (1)
Costs
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
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CRITERION 3 : PEOPLE
People are rewarded, recognised and cared for.
Sub-Criterion 3E
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Recognising people in order to sustain their involvement and empowerment
APPROACH - Description of one key approach.
Employees are recognised through their performance and behaviour (each employee has an individual tasks
plan) and are rewarded yearly and additionally in case they achieve some tasks or goals of extreme importance
for the Company whereby employee’s singular activity has contributed to the:
•
increase of income
•
increase of employee’s/customer’s satisfaction
•
boost/promote positive Ericsson image
Recognised employees are promoted in their career path in accordance with the promotion policy in the
company.
DEPLOYMENT
Employees are recognised and rewarded through the Performance Management process in the whole company.
This approach has been used in the company since 2000 and the coverage is 100%.
Performance Management is clearly communicated to everyone through different communication channels
(presentations, articles in the company newspaper, web pages).
ASSESSMENT & REVIEW
Performance Management is used as a tool to recognise and reward the best employees. The practice was
evaluated and the process was improved.
Additional approaches applicable to this sub-criterion
Deployment
Effectiveness
measures & cross
reference to results
Compensation & Benefits System (Salary & Compensation, Awards,
Benefits, Loan & Tax Privilege, Other payments to employees)
All units and
all employees
Extended health care program (benefit)
All managers
Restaurant and canteens (subsidy for catering policy)
All employees
Flexi-time
All employees
Birthday party
All employees
Jarun event-company day
All employees
Employee satisfaction
and performance
results, DIALOG
Employee satisfaction
surveys and
improvements in
accordance with the
results; Sub-Criterion
8B (1)
Employee satisfaction
surveys and
improvements in
accordance with the
results
Employee satisfaction
and performance
results; Sub-Criterion
7B (3), Appendices
FIG. 4C-1
No. of participants and
employee satisfaction
No. of participants and
employee satisfaction
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
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CRITERION 4 : PARTNERSHIPS AND RESOURCES
GENERAL INFORMATION
Definition: How the organisation plans and manages its external partnerships and internal resources in order to
support its policy and strategy and the effective operation of its processes.
The Partnerships & Resources criterion is concerned with HOW the organisation manages its external and
internal (non-people) resources in ways that are consistent with its overall aims and to align with its other
approaches.
Outline the implications of your overall Policy and Strategy on each of the subjects in this Criterion, e.g. does
your Policy and Strategy mean that you should seek to establish full partnerships with all of your suppliers, or
just with specific groups?
How are the partnership opportunities and management of the various resources (mentioned through 4a4e) supported by policy and strategy?
ETK policies and strategies do not explicitly require full partnerships with customers, suppliers and other
organisations, but such kind of partnership is implicitly contained in published strategies for 2003.
Our strategies published on the Intranet in presentation booklet ETK in 2003 are: 1) Dedication to customer
success 2) Value adding teamwork 3) Passion to win and 4) Fast creativity. ETK internal and external business
relations are strongly influenced by quality policy (“..World Class Quality in all areas of its business..”) and
strategies.
ETK‘s presence in the global telecommunications is founded on three cornerstones of its operations: the
Croatian market, foreign markets and Ericsson’s internal market. Operating within these three areas, the
company co-ordinates its business aspirations with its customers’ needs and implements its quality policy and
strategies. The company’s experts learn the customers’ business and persistently search for the new values for
customers and this all leads to partnerships with the customers on the company’s markets. ETK utilizes its
expertise in modern communications technologies and solutions to efficiently improve its customers’ success by
adding value in customers’ processes. On the home market, which represented 22% of its total business in 2002,
ETK has developed a good business partnership with the Croatian Telecom, VIPnet, with many users of its
business and special communications systems and with many small Internet service providers in Croatia.
For many decades ETK has successfully cooperated with the operator Croatian Telecom (HT) on the home
market. Together they have built the modern public fixed network of the country with 96 AXE exchanges
providing an overall capacity of 2,2 million telephone lines and the mobile network based on the NMT system
450 (Nordic Mobile Telecommunications) with an overall capacity of approximately 130 000 subscribers. The
companies continue to develop their good partner relations that leave open the possibility of collaborating in
other telecommunications areas.
ETK established an excellent strategic partnership with VIPnet, the first private mobile operator in Croatia,
which since its start in commercial operation in 1999 has attracted more than 900.000 users and has become the
main partner of ETK on the home market. As a result of the successful collaboration on the GSM network, in
2001, ETK delivered to VIPnet the GPRS system, which is the first commercial GPRS system in Croatia and in
the whole region of Central Europe. With it the company made a stride toward the area of the mobile Internet
and continues to supply the applications that use the GPRS access and collaborate in operations for the potential
introduction of UMTS in Croatia.
The company closely cooperates with a lot of small, mid-sized and large organisations and enterprises in Croatia
such as the Faculty of Electrical Engineering and Computing, public administration, the Croatian Railway, the
Croatian Electric-Power Supply, oil and gas industries (INA), the Croatian Television, outsourced companies
(earlier ETK sectors) and numerous hotels. According to the Ericsson Strategic Planning 2000-2004 the 3rd key
activity Competence Shift for the New Telecom World was recognized as crucial for the ETK future. A close
partnership with the Faculty of Electrical Engineering and Computing in Zagreb was developed, ETK invested
in faculty’s telecom equipments for the New Telecom World and hundreds of younger engineers went in waves
to the faculty to get the new knowledge.
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CRITERION 4 : PARTNERSHIPS AND RESOURCES
External partnerships are managed.
Sub-Criterion 4A
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Suppliers/Partners
APPROACH - Description of one key approach.
ETK commitment is to support long- and short-term profitability through efficient supply of technology,
materials, products and services.
In order to satisfy the operational requirements ETK is building long-term relations with the most important
suppliers. Secure sourcing is mandatory and dual sourcing is preferred whenever cost effective. External
sourcing is to be considered whenever competitive and in line with our core strategies.
In suppliers/partners relations ETK wants to achieve: short Time To Customer (TTC), low total costs, required
functionality, high quality, a limited number of suppliers. In co-operating with suppliers/partners ETK focuses
on supplier obligation to introduce and maintain ISO 9001 and ISO 14001 standards. Records of the supplier
evaluations are maintained.
All suppliers of products and services are registered in the program package SAP/R3.
Preferred suppliers/partners are: Companies registered in Ericcson’s Vendors databases (ELIZA), Companies
which signed General Purchasing Agreement (GPA), ISO certified companies have priority if other conditions
are the same.
Non-preferred suppliers supply products and services which do not influence the quality of products for
customers or are the subject of occasional purchases, or are of minor value (no need to sign agreement).
ETK has partnership agreements in sales and services segment and also in the Ericsson Mobility World.
Enterprise sales and service partners develop applications for the mobile Internet as service providers and they
have to prepare forecasts in money and equipment quarterly. ETK supports its partners with presentations,
service support (second line support) and in marketing activities through the marketing funds.
DEPLOYMENT
The suppliers/partners policy is deployed in all ETK (relevant) units.
Enterprise partners cover whole Croatian markets in sales and service segment.
ASSESSMENT & REVIEW
Companies registered in Ericcson’s Vendors databases were selected and audited by Ericsson Corporation
(Qualification of suppliers, manufacturers). Local supplier selection is based on commercial and financing
conditions assessment through BON1 and BON2 (a structured assessment of supplier's financial position);
assessment of level of implementation of Quality & Environmental system acc. to ISO 9001 and ISO 14001
implementation (certificates, ETK auditing of suppliers).
Review: Qualification of suppliers, manufacturers (corporate); Records of the supplier evaluation, GPA list, List
of ISO certified suppliers/partners.
Enterprise partners are selected and classified against their knowledge and competences.
Additional approaches applicable to this sub-criterion
Preferred Suppliers list
Suppliers relationship development
Enterprise- sales and services partners
Ericsson Mobility World – partners network
Applications & Partnering, BSC, Innovation
CRITERION 4 : PARTNERSHIPS AND RESOURCES
Deployment
Effectiveness
measures & cross
reference to results
All orders
All main
suppliers
All partners
Reviewed on web
Questionnaire and
Classification
Classification platinum, gold, silver
Launched applications;
Partnership/Mobile
World (KPIs)
On target
All partners
Key partners
Sub-Criterion 4B
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Finances are managed.
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: IAS – International Accounting Standards
APPROACH - Description of one key approach.
Financial statements are prepared for each financial year in accordance with International Financial Reporting
Standards issued by the International Accounting Standards Board, which give a true and fair view of the state
of affairs and results of the company. IASs were implemented in our company in 1993 and have been applied
since then.
All our financial policies and directives are based on IASs. Each version within the existing IASs or adoption of
new Accounting Standards is implemented in our company. Our procedures and processes are improved and
changed accordingly. By proceeding in this way the interests of all related parties are met, i.e. shareholders,
customers, vendors, etc.
DEPLOYMENT
All finance activities in the company are in compliance with policies and directives based on IASs and the
Accounting By-Law. As we are a part of Ericsson Corporation, our obligation is to send our reports to Ericsson
Corporate on the monthly basis. For each finance process we have description and process flow.
We also send quarterly reports to the Croatian authorities. We were the first company within the Ericsson Group
that implemented IAS 39 as a new standard for the year 2002.
ASSESSMENT & REVIEW
We have external audit of our financial statements performed on the annual basis and so far there have been no
major findings. Since 2000 the internal corporate audit has been performed in our company, until now with no
major remarks but only improvement proposal.
Our financial reports (including comparison with the previous reporting period) are prepared on the monthly,
quarterly and annual basis. We are using BSC approach for follow-up of major business and financial activities
through different KPIs.
We are constantly implementing new tools in analyzing financial results and in that way we are involved in the
process of permanent learning.
Additional approaches applicable to this sub-criterion
Deployment
Effectiveness
measures & cross
reference to results
External finance audit
Financial
activities
Auditors’ report, No
remarks
Internal Corporate audit
(Sales, purchase, travel processes)
Sales and
Financial units
No remarks –
Improvements
Tax authorities (all taxes including VAT)
100 %
Authorisation Policy for ETK (rights to sign agreements, to invest
and to have the right to authorise different types of costs to the
company).
Intranet
No remarks
Internal auditing
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CRITERION 4 : PARTNERSHIPS AND RESOURCES
Buildings, equipment and materials are managed.
Sub-Criterion 4C
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Risk and Security Management
APPROACH - Description of one key approach.
The security of persons and assets in ETK follows the highest standards in the area. Risk and Security
Management in the company as a system integrates technical and physical solutions and administrative and
organizational measures according to corporate policies and directives (Ericsson Security Directives) and
customer demands (processes owners). Also, applied solutions have to be coordinated with local regulations and
they have to follow contemporary achievements in developing the video surveillance system, counter-burglary
alarm and fire detection and prevention. For security services ETK has engaged Zvonimir Security k.d., the
leading provider of such services in Croatia.
The site security tends to be indiscernible but comprehensive and to enable tracking and logging all the events
that occur as a security breach in order to take action in minimizing the damage and for future system
improvements. Some of the data generated by security systems are used for business purposes, like visits log and
transactions on Access Control System.
.
DEPLOYMENT
Security systems cover all ETK sites, including leased plants and office space. Every person on the site;
employee, visitor, and business associate and engaged external services, are involved in security by handling the
equipment in proper way, education and following defined security measures.
These systems have functioned this way since 1997.
.
ASSESSMENT & REVIEW
The control over security is realised by corporate security audits (result is an improvement plan with action
points), through sustained internal security projects (improvement plan), annual inspections by competent state
authorities, by attending specialised exhibitions and seminars, through customer feedback and monthly reports
provided by respective security services and officers. (Appendices FIG. 4C-1)
Additional approaches applicable to this sub-criterion
Deployment
Effectiveness
measures & cross
reference to results
Energy Management (electrical energy, steam, gas, water). ETK has
energy monitoring system (central unit, terminals and basic stations)
All units,
5+yrs
Sub-Criterion 8B (4);
Consumption
monitoring, costs
reporting, costs cutting
programs
Sub-Criterion 8B (3);
Total waste in kg/year,
Total costs in local
currency /year
Total costs in local
currency /m2
% realization/plan
Sub-Criterion 8B (1)(2)
Cost reduction in waste management
All units,
whole loc.,
5+yrs
Facility Management
All units,
whole loc.,
5+yrs
All units,
5+yrs
Whole ETK
location
Occupational Health & Safety Management System (OHSAS 18001
certification in progress)
Environmental Management System (ISO 14001 certified)
Sub-Criterion 8B (3)(4)
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CRITERION 4 : PARTNERSHIPS AND RESOURCES
Technology is managed.
Sub-Criterion 4D
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Exploiting existing technology
APPROACH - Description of one key approach.
In telecom software design activities we are applying existing leading edge technology for product development
project – processes, methods and tools, developed by Ericsson organisation units responsible.
The technologies that determine the competitiveness of products in Ericsson business are the core technologies
and they have been developed and continually improved by Ericsson based on world class technology. In order
to be the first, it is necessary to have effective development processes, methods and frameworks to create new
applications and services in a controllable and rapid manner.
R&D management prepares and publishes the targets for current year as follows:
• Critical Success Factors
• Strategic targets, targets for actual year
• Market position, Customers
• Employees (competence shift to new technology, increase employee motivation)
• Technology & Innovation
• Financial and internal efficiency
DEPLOYMENT
Ericsson’s Core unit Core Network Development (CCND) is responsible for technology deployment.
CCND is a global organization with a few R&D Centers at several locations around the world. The deployment
and implementation is performed by CCND responsible people and ETK R&D local engineering support.
Deployment of changes and improvements is part of our daily life and it is incorporated in our management
system published on ETK Intranet sites and is ISO 9001:2000 certified
ASSESSMENT & REVIEW
Assessment is performed on project and line organisation level.
The executive ETK R&D management performs reviews to provide evidence and verification of the
effectiveness and efficiency of the applied technologies, and it is a part of our Management System, the
framework in which our operational activities are managed to achieve our business targets.
The ETK R&D management defines the annual Targets/Operational Plan (Key Performance Indicators - KPI
and Deployment) to support fulfillment of the organization’s performance. Key Performance Indicators are used
to measure progress towards the targets within Market, Customer, Employee, Technology& Innovation and
Financial & Internal Efficiency perspectives.
Performance of the organization is managed against the plan. Corrective actions are taken when the actual
results and performance deviate from the plan.
Additional approaches applicable to this sub-criterion
Deployment
Effectiveness
measures & cross
reference to results
Innovating technology
ETK as future oriented company (BSC Innovation)
ETK new strategic/generic solutions (BSC Innovation)
70%
Intern/Extern
100% Internal
3 G readiness
Internal and
External
Internal
New products
Sub-Criterion 8A (1)
Sub-Criterion 7B (1)
(4); BSC, Target, trend
Sub-Criterion 7B (1)
(4); Targets, events
On track (good)
ETK as an System Integrator
CRITERION 4 : PARTNERSHIPS AND RESOURCES
Sub-Criterion 4E
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Information and knowledge are managed.
Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Information and Knowledge Management
APPROACH - Description of one key approach.
ETK strategic decision is paperless office. In order to accomplish this decision ETK implemented LAN and
connected all ETK servers and users. This enables efficiency by sharing all necessary information and
knowledge between ETK employees using the same resources. Three key parameters must be met in such
approach: capacity, availability and security of the network and servers. ETK continuously measures these
parameters and implements necessary resources to keep them close to defined targets. Two common solutions
are used: 1) local web site sharing all public information and 2) web oriented applications and servers with data
and applications designated for specific groups of users and data and applications available to all ETK
employees. By using ECN (Ericsson Corporate Network) and modem connection all the resources are available
from any point in Ericsson or from any point around the world using dial up connection. In all cases
performance and security are under control. Full Central Help desk support is available between 7:00 and 18:00
and limited support is available practically around the clock improving the efficiency of all the users.
DEPLOYMENT
To ensure fast response to every user requirement ETK defined the standards for every workplace. Unique and
flexible network and other IT resources do this. The distribution of standard PC hardware and software, and
network implementation is centralised and deployed by IT functions PC and network support. Every installation
is tested on key performances and the results are recorded. The monitoring of performance is just one way of
infrastructure control. Other ways include feedback given by user satisfaction survey or Help desk. Every
company department or work group is responsible for own data and access rights. IT function is responsible for
administration, back up and control of security policy and the performance of IT resources. Necessary
knowledge, the general level or the specific one is recognised and planned in the course of Personal
Development (PD) discussion. Acquiring necessary knowledge is possible in internal courses, through our
partners or by using the web (Ericsson web learning accessible for all employees). In all cases results are
measured and registered.
ASSESSMENT & REVIEW
Although we monitored IT resources from the very beginning (in 1980) of using system tools, after joining
Ericsson (1995) we gradually and systematically implemented monitoring, and provided to our users better and
better service. We defined a lot of KPIs (Key Performance Indicators) that give us a clear picture of IT
resources. Among them are availability and usage of IT resources and the number of Help desk calls and time
needed for closing every problem. All this parameters are recorded, analysed and discussed in management
meetings and corrective actions are defined enabling continuous improvement.
Additional approaches applicable to this sub-criterion
Deployment
Competence development for the New Telecom World (NTW)
1999-2001
172
employees
Competence evolution 2002 - Competence development program
organised and executed by FER
Mr E – Web learning (ERICSSON)
Competence, DIALOG 2002
52
employees
932
employees
All employees
Learning, DIALOG 2002
All employees
CRITERION 5 : PROCESSES
Effectiveness
measures & cross
reference to results
15% of ETK
employees
5% of ETK employees
72% of ETK
employees
ETK 80%, BinC 81%,
Sub-Criterion 7B (1)
ETK70%, MUCE 63%
GENERAL INFORMATION
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Definition: How the organisation designs, manages and improves its processes in order to support its policy and
strategy and fully satisfy, and generate increasing value for, its customers and other stakeholders.
The Processes criterion is concerned with HOW the organisation’s:
• Processes are systematically designed and managed
• Processes are improved, as needed, using innovation in order to fully satisfy and generate increasing
value for customers and other stakeholders.
• Products and Services are designed and developed based on customer needs and expectations
• Products and Services are produced, delivered and serviced
• Customer relationships are managed and enhanced
Outline the organisation’s main customer groups/markets and the processes which interface
with them.
For many decades ETK has successfully cooperated with the operator Croatian Telecom (HT) on the home
market. Together they built the modern public fixed network of the country (96 AXE exchanges). ETK
established excellent business cooperation with VIPnet, the first private mobile operator in Croatia (GSM
network with more than 900.000 users). Within business communication systems, ETK closely cooperates with
and delivers communications solutions to many Croatian small, mid-sized and large enterprises. The share of the
home market accounts for about 20% of the company’s overall annual operation.
On the corporate level ETK has responsibility for export operations for over 35 countries of Central and Eastern
Europe and Africa (Bosnia and Herzegovina, Montenegro, Republika Srpska, Macedonia, Kosovo, Slovenia, the
Czech Republic, Slovakia and Albania, Russian Federation, Belarus, Ukraine, Moldova, Kazakhstan,
Uzbekistan, Kyrgyzstan, Georgia, Armenia, Azerbaijan, Tajikistan, Turkmenistan, also some twenty countries in
Africa). The share of export in total sales of ETK in 2002 was 60% and with the export of knowledge (telecom
software) and services to Ericsson Sweden and other Ericsson companies we can speak of 80% export share.
Outline the organisation’s products and services.
ETK offers to its customers the complete range if Ericsson products, solutions and services. The most important
examples are:
Service solutions are: Network Rollout, Customer Services, Ericsson Education, System Integration and
Professional Services. Incumbent operators, emerging operators, Internet Services providers: ATM Switching
Systems, Internet Protocol Routers, Internet Network Solutions, Next Generation Networks – Engine, AXE
Switching Systems, Intelligent Networks services; Access Networks – Narrowband and Broadband: Engine
Access Ramp, xDSL solutions, Transport Solutions: Microwave Systems – MINI LINK, Synchronous Digital
Hierarchy (SDH), WCDMA systems, GSM systems, EDGE solutions, GPRS systems; Business systems:
Switching Systems MD 110, BusinessPhone, Business Cordless Telephone System – DECT, Wireless LAN
Access; Special systems: EriTac – Ericsson Integrated Tactical Communication System (Military applications).
What externally recognised systems standards, e.g. ISO9000, ISO14000, etc. is the organisation applying
in process management? How are targets for processes actually set ?
Our approach to total quality is mainly based on customer-oriented organisation focused on core competencies;
steady and persistent processes improvements, teamwork, continuous competence development, leadership and
ISO certifications. ETK is certified against the standards ISO 9001:1994 (re-certification in June/July 2003),
ISO 14001 and the certification against OHSAS 18001 is in process.
The intention of these certifications is to enable us all at ETK to build a good platform for integrated
Operational Management System (OMS) and further TQM development.
ETK adopted the Ericsson Business Process consisting of well-defined and documented management processes,
core processes (at ETK Sales and Marketing Processes), and support processes. For each year, ETK
management decides on robust, committed and stretched objectives and Key Performance Indicators published
on ETK Intranet sites.
CRITERION 5 : PROCESSES
Processes are systematically designed and managed.
Sub-Criterion 5A
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Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: The Sales and Marketing Process, Appendices FIG. 2D-1
APPROACH - Description of one key approach.
The ETK Operational Management System (OMS) is based on the Ericsson Business Process (EBP).
(Appendices FIG. 5A-1) ETK OMS represents the ‘value flow’ of the Sales and Marketing Process, i.e. it
defines generic inputs, activities, management, support and outputs. These, together with relevant supporting
information, are presented and maintained by the corresponding process owner at corporate or ETK level. The
idea is to define and communicate good practice that can be cost effective and applied consistently throughout
the business. ETK adopted the Ericsson Victor concept (graphical definition and presentation of processes in
order to reduce textual documentation) providing a framework which:
• Defines management, core and support processes, together with the corresponding inputs/outputs.
• Identifies decision authorities and connects to relevant decision points.
• Defines and connects persons responsible, competence, tools, resources, legal and other requirements to
corresponding process activities.
• Serves as the ‘portal’ for accessing all information relevant to a defined process. Such information may
include documents, templates, etc.
• Provides performance objectives and corresponding measures for processes at the point of use.
DEPLOYMENT
The ETK OMS is based on a pragmatic view of visualizing what needs to be managed in the business. This
message is clearly communicated to everyone by ETK OMS presented and used via the intranet and focusing on
the management of the key processes of the business (3+yrs). Annual ETK objectives and targets are cascaded
from the ETK level to sectors’ level and finally to each employee’s performance plan, i.e. deployment is 100%.
ASSESSMENT & REVIEW
Instead of classical internal audits, ETK is implementing Risk Based Assessments (RBA, 2yrs)), and
Management Review. The overall objective of RBA is to determine the suitability, adequacy and effectiveness
of the MS in ensuring that the organisation meets its objectives. RBA is in particular: 1) Focussing on the most
vital aspects for successful operation of the organisation. 2) Planned and prepared according to a structured
method, involving both top management and operational personnel.3) Giving feedback of direct relevance for
the management of the organisation. 4) Assisting in combining the operational management system to the
business objectives. 5) Based on MS standards requirements too. Management Reviews are performed each
week, months, quarterly and yearly, depending on sector’s practice.
Additional approaches applicable to this sub-criterion
Balanced Scorecard (Customer and Financial Perspective)
Global Customer Satisfaction Survey
ETK Customer Satisfaction Measurement
Deployment
Effectiveness
measures & cross
reference to results
Intranet, all
employees
50%
KPIs; Criterion 7 and 9
Key customers
Inventory Turnover (ITO) management (important in Time To
Customer process)
ISO 9001 and ISO 14001certificate, OHSAS 18001 certification in
progress
Whole ETK
Whole ETK
VIPnet satisfaction in
2002 is 100%
Customers satisfaction,
Sub-Criterion 6A (1),
6B (3) (4) KAM is
internal customer
Sub-Criterion 9B (2)
Internal and external
audits
CRITERION 5 : PROCESSES
Sub-Criterion 5B
Processes are improved, as needed, using innovation in order to fully satisfy and generate
increasing value for customers and other stakeholders.
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Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: EMEA CS&SS Centres of Excellence
APPROACH - Description of one key approach.
The new network of the Market Area Europe, Middle East and Africa Customer Solutions and Sales Support
(EMEA CS & SS) is directed at enabling new ways of creating business opportunities through the utilization of
the synergies of the resources, competencies and other professional strengths within all fourteen Market Units in
EMEA and at lowering the operational costs. The new concept will function as a virtual networked entity. It is
constituted on the existence of three Centers of Excellence (CE). The new concept will help and facilitate to
bring Ericsson back on track and to success and to preserve top competencies despite the rightsizing of
resources. The benefits include sharing of knowledge and experiences, adopting the best practices, establishing
the centers of competence and resources that can be utilized more efficiently through making them available to
every KAM within EMEA. The Centres of Excellence are structured to participate in the entire sales chain, from
pre-sales to after-sales.
DEPLOYMENT
The new approach is deployed in all 14 EMEA Market Units. The Centers in MU Central Europe, MU North
West Europe and MU Italy function as drivers of business and each of them covers several Market Units within
EMEA. Common tools to be used are KSTool, MORE, SIO, HRMS, eOrder desk. There is also EMEA
Customer Solution and Sales Support Community opened in KSTool. MORE tool is used in co-operation with
Global Service organisation. SIO tool is utilised to support the sales forces- KAMs, account managers, Core
Three teams and other people that need customer information. HRMS is used for overall resource and
competence management. eOrder desk is used as a common registration Tender/Offers/Solutions desk and as
the Solution database (Customized Solutions List as well as Knowledge Source).
With the support and cooperation with KAM and the commitment from EMEA/Management team together with
the usage of Quick Win Strategy, simple and fast decision making process the potential for success is ensured.
ASSESSMENT & REVIEW
Distribution of responsibilities is clearly defined in the whole region and in programs of cooperation with the
business units. Results are assessed and reviewed monthly and presented in regular monthly reports. The System
of Measurement and Performance Indicators are simple, feasible and transparent to improvements. The System
provides relevant information about actual situation in the network and secures permanent monitoring and
improvement. The proposed key performance indicators indicate Network Quality, Network Rightsizing,
Network Business influence and Internal Structure Quality. Customer Solution & Sales Support within EMEA
Market Units have their own local business scorecards with key performance indicators adjusted for their local
needs. The above KPI’s are considered as key indicators on the EMEA CS&SS level and have to be mandatory.
Additional approaches applicable to this sub-criterion
Deployment
Effectiveness
measures & cross
reference to results
The Core Three Concept (Account/Commercially Responsible, Total
Solution Responsible and Contract Fulfilment Responsible)
Sales,
Solutions,
Service
Intranet,
Ericsson
University
All EMEA
companies
Decision PointsSolution data base,
Project System
Sub-Criterion 7B
(1)(2); KSTool,
HRMS, certificate,
EMEA Solution Key
Performance Indicators
Knowledge management (structured information as competence data
bases, knowledge data bases, solutions data base.)
The Performance Measurements system provides relevant
information about actual situation in the network and secures
permanent monitoring and improvement.
CRITERION 5 : PROCESSES
Sub-Criterion 5C
Products and Services are designed and developed based on customer needs and expectations.
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Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Customer Support Services
APPROACH - Description of one key approach.
By using intensive market research and according to the Ericsson and Market Unit strategy for new services
development, ETK offers and delivers System Support Service to maintain the highest possible quality of
service in operator’s telecommunication system. The people who designed, developed and built telecom system
in question provide this service. Signing a System Support contract with ETK means that operator can focus on
its customer’s needs for 100% network availability. Higher network performance generates more revenue and
customer can use its experts for more profitable activities.
The major part of the communication between the operator and Ericsson’s local support office (ELS) is intended
to take place on the web. That is why a web and remote connection is a necessity for the System Support.
Besides, during problem solving in an emergency situation and for new software deployment, ETK’s technicians
are able to establish an on-line connection to the operator’s system.
DEPLOYMENT
Customer Support Services are valid for the customers in wireless market: Belarus, Bosnia and Herzegovina,
Croatia (VIPnet and HT Mobile), Montenegro; and for the customers in wireline market: Belarus, Bosnia and
Herzegovina, Croatia, Kazakhstan, Kyrgyzstan, Georgia, Montenegro, Republika Srpska. The estimated
coverage of customer support services is slightly below 100%.
ASSESSMENT & REVIEW
Besides improving the level of security for the customers, customer support service helps operators track down
failures and also acts proactively to secure the network. It measures performance e.g. in run-time and failure
percentage, and compares it to the service level objectives. The quality of service (e.g. Customer Satisfaction,
Contract Fulfilment, Customer Evaluation) is measured periodically and reported by Balanced Scorecard for
assessment and review.
Additional approaches applicable to this sub-criterion
Front Office
Deployment
Effectiveness
measures & cross
reference to results
All customers
Sub-Criterion 6A (2);
ELS performance
indicators
ELS performance
indicators
Sub-Criterion 9B (3);
ELS performance
indicators
ELS performance
indicators
Sub-Criterion 6A (2)
(3)
ELS performance
indicators
Back Office Core Network Mobile
100%
Back Office Wireline Core
Back Office Service Network & Applications
100%
100%
Back Office Network Management
100%
Hardware Services
All customers
Services Delivery Management
100%
CRITERION 5 : PROCESSES
Products and Services are produced, delivered and serviced.
Sub-Criterion 5D
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Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: Customer Network Solution Verification/Customer Network Integration Process (CNSV/CNSI)
APPROACH - Description of one key approach.
Services CNSV/CNSI are performed in line with customer’s requirements, documented global processes and
documented local procedures. CNSV is one of the processes used in the GSD (Global Service Delivery)
organization. The CNSV and CNSI processes form together one process for verification and integration
activities on GSD Network Integration orders. The process CNSV is the process for: 1) Order Analysis of
Network Integration orders, 2) Customer requirement analysis and 3) Verification of Customer Network
Solutions (CNS) in “safe” environment. The process CNSI is the process for: 1) Integration of Customer
Network Solutions (CNS) in the Customer Network, 2) Follow up and Conclusion.
Ericsson Project Management methodology (PROPS) is implemented for activities planning in these processes.
Process CNSV is compiled from activities like: Order Assignment Acceptance, Order Analysis, Project
Planning, until Customer Acceptance and Project Conclusion.
DEPLOYMENT
Processes CNSV/CNSI are deployed globally. All Ericsson local companies have to implement global CNSV
and CNSI Process Description and more detailed local procedures and work instructions. On Ericsson Global
Services intranet sites there are descriptions of all global processes as well as for ETK local service activities on
sites for Global Service Delivery Centre. All customers’ relevant information is systematically documented and
appropriate contact channels (e.g. Call Centre) by using up-to-date IS/IT are established.
ASSESSMENT & REVIEW
Specified measurements and demonstrations have to be performed to demonstrate to the customer: 1) the
capabilities of the Customer Network Solution (CNS), 2) the migration procedure; and finally to receive a go
ahead to implement CNS into the customer’s network. These activities are performed according to initial
requirements as agreed upon during the Order Analysis.
The Customer Demonstration is done together with the customer. The tests are performed in accordance with the
test agreements signed by ETK and the customer. All deviations from the expected test results are documented
and commented in the Test Report.
Additional approaches applicable to this sub-criterion
Ericsson Project Management (PROPS)
Deployment
Intranet, all
major
projects
All
customers
ETK Customer Training Centre
Competence Evolution Program
The Core Three Concept (Commercially Responsible, Total Solution
Responsible and Contract Fulfilment Responsible)
Customer Project Efficiency, BSC Perspective - Innovation
In Service performance, BSC Perspective - Customer
CRITERION 5 : PROCESSES
Customer relationships are managed and enhanced.
88%
All contracts
All customers
Key customers
Effectiveness
measures & cross
reference to results
Tollgates (decisions),
Milestones (reports)
No. of courses, SubCriterion 6A (4); 7B
(1)
No. of certified courses
Decision PointsSolution data base,
Project System
2 yrs On target
Sub-Criterion 9B (3);
BSC
Sub-Criterion 5E
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Provide information in detail on one relevant approach to the sub-criterion, and briefly on other approaches and
additional information.
Title: System Support /Customer relationships
APPROACH - Description of one key approach.
System Support is a comprehensive package of basic and optional service components and a vital ingredient in
helping ETK’s customers attain and maintain peak performance of their system. Basic Service elements are:
1)Basic CSR Handling, 2) Emergency handling, 3) SW Updates 4) Remote Connection, 5) Remote FNI (First
Node Implementation). Optional service elements are: 1) Online Support, 2) FNI (First Node Implementation)
On-site, 3) Remote Problem Solving, 4) Emergency on-site, 5) Helpdesk, 6) Helpdesk 24/7 and 7) NetQB
(Network Quality Benchmarking). Depending on unique situation and customer needs the service elements are
packed together and offered with service levels that meet customer needs.
All CSRs are taken care of in the CSR handling process, providing a single interface for all kinds of operation
and maintenance requests – technical requests, consultation (helpdesk), emergency requests etc. All CSRs,
except for emergency requests, shall be assigned severity ‘High’, ‘Medium’ or ‘Low’. Emergencies are always
assigned severity ‘Emergency’.
Correct software maintenance is vital in keeping systems updated and running at peak performance. Software
updating - corrections of software - is also important for the continuous quality of customer’s network.
DEPLOYMENT
Deployment is performed 100% throughout Ericsson to all customers with signed service contract with ETK.
ASSESSMENT & REVIEW
To create a common understanding of procedures and responsibilities, a customer specific Procedures Manual
was developed as a part of the support contract. The Procedures Manual describes the daily working procedures
to be applied by both the customer and Ericsson. It covers areas such as processes, contact lists, escalation
flows, meetings and measurement procedures necessary for periodical assessments and reviews. It was
developed in cooperation with our customers.
To enhance the customer satisfaction level ETK measures, among other things, an important quality parameter:
CSR lead-times. These are e.g. for Emergency: Share 98 % Remedy 12 hours, Solution 72 hours. The Share
displays the number of CSRs that ETK will handle within the lead-times stated. A Remedy is defined as the
action(s) required to solve a problem by limiting its effects. The remedy may cause restrictions in system
performance. A Solution is defined as the action(s) required to prevent the re-occurrence of a problem and/or
any underlying causes of a problem. When a solution is implemented, the system is restored to the state it was in
before the problem occurred. The lead-times for severities High, Medium and Low are stipulated in the same
manner.
Additional approaches applicable to this sub-criterion
Deployment
Effectiveness
measures & cross
reference to results
System Support
All customers
Customer Service Request (CSR) Handling
All customers
Emergency Handling
Customer Satisfaction
Cost Control
All customers
Key customers
All customers
Sub-Criterion 6A (2);
Support Contracts
Sub-Criterion 6A (3);
Lead Time, contract
Lead Time, contract
Sub-Criterion 6A (1)
Costs cutting
programs; SAP
CRITERION 6 - 9 : RESULTS
GENERAL INFORMATION
Definition: What the organisation achieves.
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6.
7.
8.
9.
Customer Results - what the organisation is achieving in relation to it’s external customers.
People Results - what the organisation is achieving in relation to its people.
Society Results - what the organisation is achieving in relation to local, national and international society.
Key Performance Results - What the organisation is achieving in relation to its planned performance
General trends across the results
The overriding trend aligned with the objective of maximizing the value growth for its shareholders has been
firmly established at Ericsson Nikola Tesla. This objective is a touchstone for all we do. Our intent is to be
recognized as one of the best regional companies, constantly adapting our approach to a changing business
environment, while making our actions motivating for our shareholders, customers, employees and community
we are working in. Constant improvement of business processes, major achievements in management of our
financial assets as well as the wide recognition of the role we have in the local and the regional communities and
the perception of the company as a prime target employer have emphasized the importance of major inspiration
we all bear on mind, i.e. to enable the state of the art communication among people. All these challenging tasks
have been achieved by effective risk management, strong operating leverage and disciplined capital
management. Ericsson Nikola Tesla's main objective is to grow within the limits of the regional financial
capability. The long-term objective is to keep annual growth rate of 20% and this has been maintained despite
the extremely volatile circumstances on telecommunication market. Strong liquidity position and unprecedented
diversification and utilization of available financial instruments have led to further market expansion keeping net
sales and orders booked in line with the growth rate whereas operating expenses were significantly reduced. All
affirmative trends are continued and are recognizable in Q1 (Quarter 1) and Q2 2003 business results thus
contributing to our determination to keep them on track.
How the results are segmented
Ericsson Nikola Tesla has pioneered the introduction of Balanced Score Card (BSC) concept by introducing the
Strategy Tree. The model applied can be utilized twofold, at tactical, operational level but it can be developed to
meet long-term strategic goals. The process is established to define the Key Performance Indicators - KPIs,
grouped into different perspectives having links between them. The focus is on defining employee’s perspective
followed by innovation perspective. Mid part incorporates internal efficiency perspective branching to customer
perspective and finally defining the result through financial perspective. Each level is subject to elaborate an
analysis of elements and indicators to follow up and analyze at different authorization levels of decision-making.
Identify any key linkages between the Enabler criteria and the Results shown in later pages
Ericsson Nikola Tesla has created an open information environment for all key functions defined to meet any
particular information need required by either in-company or out -company participants in a business process.
The Intranet, the Internet, management meetings, management forums, team building events, time reporting etc.
for all authorization levels are at the disposal of all participants and all are encouraged to respond and supply
feedback, even anonymously if so preferred. Such practice enables the achievement of forecast goals and
facilitates any crisis management as well as restructuring demand.
Key linkages between the Enabler criteria and the results are:
• Clear policies, strategies, directives and objectives (robust, committed and stretched).
• Organization oriented towards customers (KAM, lean organization, Internet sites, Customers
satisfaction measurements, Brand management)
• ETK is an excellent employer (knowledge management, working environment, empowerment, people
satisfaction measurement – DIALOG, PD discussions, remuneration in relation with results).
• Strong orientation towards core processes, excellent processes documenting and publishing on the
Intranet, KPIs publishing on BSC in 5 perspectives (Financial, Customers, Internal efficiency,
Innovation, Employees).
CRITERION 6 : CUSTOMER RESULTS
Perception Measures
Sub-Criterion 6A
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CUSTOMER SATISFACTION INDEX
100
50
0
19
96
2
20
0
20
0
0
8
19
9
19
9
6
0
50
20
02
Value (%)
150
Global
100
20
00
Value (%)
Global
19
98
Local
SERVICE & SUPPORT
Local
Year
Goals: 2001-75%, 2002-80%, 2003-80%;
Goals: 2001-75%, 2002-80%, 2003-80%
The customer satisfaction Process/Measurement as a
part of the Sales &Marketing Process shows positive
trend. ETK enhances relationships with the customers
so that improvement actions can be taken on time and
in the right areas.
Service and support of the system include
measurement through: System availability, Response
time for hardware services and software support,
Response time and recovery in emergency situations,
etc. Significant improvement in customer satisfaction
with Service support is visible.
Training for customers
15
80
10
60
40
5
20
0
0
10000
8000
6000
4000
2000
0
CSR/Systems
Systems
CSR Statistics for Customer (VIP-Net)
100
50
0
1998
1999 2000 2001 2002 2003
Systems
200
150
1999
2000
No. of student-days
CSR/Systems
2001
2002
No. of courses
Goals/No. of courses: 2000/150, 2001/160, 2002/160
Consistent year by year improvement shown. Average
number of Customer Services Requests (CSR) per
systems is going down although the complexity of the
network (Number of different systems; VIPnet in this
particular case) is going up.
Further Results
Segmentation
The number of students slightly decreased due to
overall market situation in telecommunication
segment, and the number of courses increased, due to
development of training needs on the overall ETK
market.
Trends
Targets
Comparisons
Cooperating and communicating
with customers
Key Customers
Positive4+ years
Met last 3 years
MUCE
Designing solution to support &
increase customer future business
Key Customers
Positive4+ years
Met last 3 years
MUCE CS &SS
Complaint - claims
Deliveries
On track
Failed last year
N/A
CRITERION 6 : CUSTOMER RESULTS
Performance Indicators
Causes
New MU organization,
Process improvement
activity in Sub-Criterion
5C, 5D, 5E, Front
Office/Help Desk
New regional/global
organization, Process
improvement activity in
Sub-Criterion 5B
Suppliers
Sub-Criterion 6B
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500
400
300
200
100
0
CSI Value for
Broad performance
(%)
Hit rate per year
100
Tender/
Offer
Contract
50%
40%
30%
20%
10%
0%
Comparison with main competitor
Ericss
on
50
1999
2000
2001
2002
1999 2000 2001 2002
Year
Goals: 2001-35%, 2002-37%, 2003-40%
Hit rate as a measurement in Marketing & Sales and
Operations area shows continual progress in last 4
years. Tender Hit rate is defined as a percentage of
signed Contracts and number of Offers/Tenders/
Solutions.
Comparison of Ericsson (ETK) versus main
competitor in relevant segments like communication,
product performance, designing solutions, delivery &
installation and services. Consistent improvement over
the last 3 years.
Customer Satisfaction (Self-assessments'
KAM SATISFACTION (INTERNAL)
Value (rate on scale
1-5)
%
Sieme
ns
0
Hit rate
100
80
60
40
20
0
1996 1997 1998
2002
5,00
4,50
4,00
3,90
4,00
4,00
1999
2000
2001
4,30
4,50
3,50
2002
2003
Year
Year
Customer Satisfaction results (Self-assessments
against EFQM questionnaire, in 1999, 2000 and 2001
Self-assessments were performed against Ericsson
Business Excellence Model)
Further Results
Segmentation
Goals: 2001-4,0; 2002-4,1; 2003-4,1
Internal ETK KAM Customer Satisfaction
measurements with Customer Solution/Operations
area shows significant positive trend
Trends
Targets
Comparisons
Project efficiency
Projects
Positive 2 years
Met targets
MUCE
Delivery precision
Contract
fulfilment
Stable level
On target
N/A
e Order desk registration
Solutions
Met target
MUCE CS&SS
Orders booked
Contract
Met last 2 years
N/A
Awareness of customers’
satisfaction, DIALOG 2002
Awareness of customers’ quality
demand, DIALOG 2002
All employees
Positive
3+years
Positive
2+years
Positive 3 years
Met last 2 years
All employees
Positive 3 years
Met last 2 years
ETK 73%,
BinC 74%
ETK 79%,
BinC 83%
CRITERION 7 : PEOPLE RESULTS
Perception Measures
Causes
SAP project system,
Company Efficiency
programs
Suppliers, customers
Tool usefulness, process
simplicity
Customer focus deployed
through whole ETK
Customers’ satisfaction
published on Intranet
KAM organization
Sub-Criterion 7A
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LEADERSHIP INDEX
EMPOWERMENT INDEX
80%
40%
30%
ETK Total
60%
20%
MUCE Average
40%
10%
External Average
0%
2000
2001
0%
2000
2001
External
Average
2002
ETK Committed Goals: 2002-74%, 2003-73%
Leadership index in DIALOG survey shows the
employees’
perception/satisfaction
with
their
managers’ relationship, structural, participation and
networking skills.
ORGANIZATIONAL EFFICIENCY
80%
ERICSSON
Average
20%
2002
ETK Committed Goals: 2002-35%, 2003-35%
The DIALOG survey measures and focuses on
improving the overall capacity of our organization &
employees to create Value for our Customers. The
Empowerment index measured in the survey gives a
critical indication of ETK ability as an organization to
create this value.
ETK Total
CHANGE MANAGEMENT
80%
ETK Total
ETK Total
60%
60%
40%
ERICSSON
Average
40%
20%
0%
2000
2001
2002
External
Average
0%
2000
Goals: Best in Class
Organizational efficiency at ETK is high. The survey
shows that employees think the company is organized
in such a way that everyone knows who should do
what. Employees are satisfied with the tools for their
work and the way in which they divide work between
them. It makes it easier for them to achieve ETK
objectives.
2001
2002
Goals: Better than Ericsson average
New ideas are strongly encouraged and supported at
ETK. Employees are satisfied with the speed of
changes after the decisions are made. There is an
inspiring spirit and enthusiasm in the company. ETK
results are higher than the Ericsson average. No
comparison is available with external average because
of specific questions for Ericsson Group.
Trends
Targets
Responsibility & Initiative,
DIALOG 2002
Authority, DIALOG 2002
All employees
Positive 3yrs
All employees
Positive-3yrs
Stress, DIALOG 2002
All employees
Positive 4yrs
Motivation, DIALOG 2002, high
All employees
Positive 3yrs
To best in
MUCE
To be best in
MUCE
To best in
MUCE
To be best in
MUCE
Further Results
Segmentation
ERICSSON
Average
20%
CRITERION 7 : PEOPLE RESULTS
Performance Indicators
Comparisons
ETK 61%,
MUCE 61%
ETK 67%,
MUCE 64%
ETK 7%,
MUCE 10%,
ETK 58%,
MUCE 50%
Causes
Action plans and
improvements
Action plans and
improvements
Working environment,
lectures
Working environment,
leadership, awards
Sub-Criterion 7B
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COMPETENCE INDEX
100%
DIALOG RESPONSE RATE
ETK Total
2002
ERICSSON
Average
2001
80%
60%
40%
ETK Total
External
Average
20%
0%
ERICSSON
Average
2000
BinC
2000 2001 2002
70%
Goals: Best in Class (BinC)
Dialog survey shows that ETK employees assess their
professional competences as very high. ETK
employees are satisfied with their competences and
the way they deal with customers’ requirements and
complaints.
80%
20
Good
02
Acceptable
20
00
20
98
Excellent
%
maternity leave
19
Outstanding
40
sickness longer
than 42 days
96
19
PE DISTRIBUTION
60
sikness up to 42
days
0
Goals: 2000-10%, 2001-8%, 2002-6%, 2003-4%
2000
The main reason for such a low rate of absenteeism
and sickness are the benefits for all employees:
•
medical unit inside the company location
• extended health program for all employees
Further Results
100%
Goals: 2000-80%, 2001-85%, 2002-90%, 2003-95%
ETK employees are highly involved in the satisfaction
survey Dialog. With such involvement the survey
results are a reliable base for improvements in the
company (action plan).
ABSENTEEISM AND SICKNESS
14
12
10
8
% 6
4
2
0
90%
Segmentation
Co-operation & Process,
DIALOG 2002
All units
Human Investment
Whole ETK
3G Readiness (3G = Third
generation of mobile telecom)
Responsible
units
2001
2002
Goals: 2000-45%, 2001-48%, 2002-50%, 2003-52%
Outstanding and Excellent
The achievement of individual and unit/company
tasks/goals, measured by Performance Evaluation – PE, is
very high and in correlation with unit/company business
results.
•
Outstanding or excellent- achievements that are above
normal standards
• Good- all or majority of objectives are met on the level
expected from a competent employee.
Trends
Better than in
2000, worse
than in 2001
Better than in
2002
Positive
CRITERION 8 : SOCIETY RESULTS
Perception Measures
Targets
Comparisons
Causes
To be best in
MUCE
ETK 73%,
MUCE 67%
Action plans and
improvements
On target
Other MUCE
companies
Better than
other MUCE
companies
Action plans and
improvements
ESP 2000-2004
On committed
target
Sub-Criterion 8A
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period
1999.
2000.
2001.
target
actual
1999200020012002
sport
target
media
actual
actual
0
humanitarian
activities
science
target
500
environment
actual
1000
customer oriented
activ.
culture
faculty
target
appearences
1500
appeare
nces
target
appeare
nces
actual
media
target
media
70
60
50
40
30
20
10
0
2000
Number of sponsorships
45
40
35
30
25
20
15
10
5
0
actual
Performance 1999-2002
ETK appearances in media
education
health
2002.
Consistent year by year improvement shown. After a
relatively slow period over 1999 and 2000., in 2001.
were 1051, and in 2002. there were 1825 media
appearances related to Ericsson and ETK in the
Croatian daily paper, magazines, TV and on the web
sites. ETK is on the top of Croatian perception
ETK regularly sponsors and participates in different
areas: humanitarian and socially oriented actions,
students club and organisations, customer oriented
activities, culture, sport, environment, etc
INFO 2002 (INFO- International Information
Technology Fair – Zagreb) - The Award for the high
level of overall performance
Ericsson Nikola Tesla’s web pages among 10Best
corporate web sites. The competition for the best web
site was organized by magazine VIDI
Segmentation
Trends
Targets
Comparisons
Information accessibility
Medical check-ups
“Doctor in Your Workplace”
Annual reports
Intern/External
Intern/External
Company
All stakeholders
Positive - 5+yrs
Positive
Positive
Positive
Met last 5 years
Every year
Every year
Met last 5 years
Equal opportunities, EEEA
Award, sub-criterion 3A
Ericsson in
Europe
Positive
Other comp.
First in Croatia
First in Croatia
Other MUCE
companies
Ericsson
companies
Further Results
CRITERION 8 : SOCIETY RESULTS
Performance Indicators
Causes
ETK Intranet/Internet
ETK OH&S policy
ETK OH&S policy
Corporate directive
Corporate and ETK
policy
Sub-Criterion 8B
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Goals: 2000-600, 2001-700, 2002-750
TRAINING IN OH&S
20
Trained employees
Injuries
NUMBER OF INJURIES AT ETK
15
10
5
0
1996 1997 1998 1999 2000 2001 2002
year
1000
800
600
400
200
0
1998
1999
2000
2001
2002
year
Goals: 2000-2003: No injuries
As the number of dangerous jobs decreased over the
years and the occupational health and safety
management system was introduced the number of
injuries at work has been reduced to a minimum.
Every year training courses in occupational health
and safety are held (e.g. vocational training for the
authorized officials, for employees representatives,
administering first aid, safe work,…)
300
600
200
250
103 m3
Quantity (t)
3
ton, 10 kn
WATER CONSUMPTION
MUNICIPAL WASTE MANAGEMENT
800
400
Cost (1000
kn)
200
0
1998. 1999. 2000. 2001. 2002.
Year
1998.
Goals: 2000-550, 2001-500, 2002-300 (t)
Segmentation
Company
Certificate ISO 14001
Reduction of energy consumption
Global/ETK
ETK
External communication on
Social responsibility
& Environment
ETK/interested
parties
1999.
2000.
2001.
2002.
Year
Goals: 2000-100, 2001-50, 2002-40 x 103 m3
In 1996 ETK agreed on two goals concerning the
municipal waste management: to reduce the quantity
of municipal waste and to change the mode of
payment which meant that instead of paying for
municipal waste per square meter of business area we
would pay per quantity. Both goals were achieved.
ETK is the first company in Croatia that started the
new practice of payment.
Further Results
100
50
0
Certificate 18001
150
For ETK the continual goal is to reduce the water
consumption. ETK reached this goal through several
activities such as closing down activities, central
control of water supply system, and by increasing the
awareness of employees.
Trends
Targets
Comparisons
End of 2003
Positive 5+yrs
Met last 5 years
First in
Ericsson
Ericsson comp.
N/A
Positive 5+yrs
Met 3 years
N/A
CRITERION 9 : KEY PERFORMANCE RESULTS
Key Performance Outcomes
Causes
ETK OH&S policy
ETK program
Changing of core
activities
Proactive approach,
Social responsibility
Sub-Criterion 9A
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30%
25%
20%
KHRK
15%
10%
5%
0%
1998
1999
2000
2001
2002
1.800.000
1.600.000
1.400.000
1.200.000
1.000.000
800.000
600.000
400.000
200.000
0
1998
Actual result
1999
2000
2001
2002
Actual result
Target
Orders Booked
After slowdown on domestic market (Croatia) 2002
has brought more Orders booked from this market.
2002 target is met, even exceeded.
1.000.000
250.000
800.000
200.000
600.000
150.000
KHRK
KHRK
Sales General & Administrative expenses as % of
Net sales
Reporting and tight control of expenses resulted in
better decision making for reducing these costs.
Informatization of internal, mostly administrative,
processes has also had great impact on reducing
SG&A expenses. High level of employees’ awareness.
400.000
100.000
50.000
200.000
0
0
1998
1999
2000
2001
1999
2000
2002
Actual result
Target
Export sales
Huge increases in export sales are mainly due to
Customer financing program and taking over of new
markets responsibilities.
New responsibilities in Africa especially in 2002.
Targets are met in last 3 years.
Further Results
Net sales growth
Segmentation
EMEA
2001
2002
Actual result
Target
Income before taxes
Despite the world crisis, and considerable drop down
of dollar value that began at the end of 2001 with
terrorist attack on WTO in New York, Income before
taxes remained stable and in accordance with
planned values. The result is extremely positive which
is also evident from the benchmarking with corporate
Ericsson’s negative result. Targets have been met over
the years with average exceeding of 16%.
Trends
Positive3+years
CRITERION 9 : KEY PERFORMANCE RESULTS
Key Performance Indicators
Targets
Last 3 years
exceeded by
1% average
Comparisons
2 years better
than global
Indus. trends
Causes
New market
acquisitions
Sub-Criterion 9B
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140
100%
120
80%
100
days
60%
40%
80
60
40
20
20%
0
0%
1998
2000
2001
1999
2000
2001
2002
2002
Actual result
Actual result
Target
Target
Inventory Turnover
Consistent year-to-year improvement shown. From the
year 2000 on all targets have been met.
Change of core business from manufacturing to
service and sales oriented company effected a shift
from inventory to account receivable part of asset
management.
Better and better reporting and control system on
working capital have had impact on actual result.
45
40
35
30
25
20
15
10
5
0
600.000
500.000
400.000
KHRK
SDT min/exch/yearv
Utilization rate
Year- to- year we constantly keep the utilization of
resources on stable level, between 80% and 90%.
Each year targets are exceeded in all company
resource units, especially in the Research &
Development center (SW design), that also contribute
to exceed targets defined on Ericsson regional level
(Market Unit Central Europe).
300.000
200.000
100.000
0
1998
1999
2000
2001
1998
2002
1999
2000
2001
2002
Cash and cash equivalents
SDT Total
Target
In Service Performance (ISP)
SDT, System Down Time is the downtime when
traffic is inhibited, i.e. due to a CEF and/or the
downtime due to System restarts/reloads. SDT is
expressed in minutes/exchange/year.
Due to signed support contract with customers, and
preventive maintenance, each year SDT is better and
better.
Further Results
Future oriented company
Segmentation
ETK
Cash
Improved cash management resulted in increased
amount of cash and cash equivalents. Target- to have
positive cash flow- has been achieved. Even in 2001
when Consolidated Ericsson had problems with cash
flow, ETK had excellent results in comparison to
them.
Trends
Excellent
Targets
Met 2 years
Comparisons
MUCE
Causes
ESP 2000-2004
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
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Examples of Applicant’s Improvement Actions
(Please use the following pages to describe 3 of your improvement actions.)
Improvement Action 1
A
Title of Improvement
Action:
B
Owner of
the Action:
D
Priority
Ranking:
Self-assessment 2002 against EFQM Excellence Model
Company Quality
Manager
C
Date for
Full
Deployment:
October 2003
High
E
Model
Criterion:
5: Processes
F
Current Status as of
the submission date:
90% completed
Description of Improvement Action
G
•
•
•
•
H
•
•
•
•
•
APPROACH (Describe the improvement action and rationale for selection)
ETK has carried out self-assessments since 1996: against EFQM Excellence Model in 1996,
1997, 1998, 2002 (questionnaire approach) and against Ericsson Excellence Model in 1999,
2000 and 2001.
This approach enables ETK managers to better understand present ETK strengths and
weaknesses, areas for improvement and current position on a scale of business excellence.
According to the self-assessment results, ETK has accomplished significant improvements
since 1996 (from 370 scores in 1996 up to 690 scores in 2002), Appendices FIG. IA1-1.
Each self-assessment indicated areas for improvement and accordingly each time an
improvement plan with action points was prepared (Activity, Responsibility, Due date,
Follow-up).
DEPLOYMENT (How is the approach being implemented?)
Until 2002 self-assessments had been implemented on units level; all units involved prepared
their own improvement plan. In 2002 ETK the Top Management Team performed selfassessment on ETK level. The results were statistically analyzed and interpreted.
Self-assessment results were presented in a relevant report and presentation and discussed at
a Top Management Team meeting. After the presentation, the President appointed an EFQM
team and defined the following tasks: 1) Selection of the most important improvement
proposals (IP) between 16 possible improvements revealed after the self-assessment, 2) Coordination of all activities during 2003 necessary for certification to “Recognized for
Excellence”, i.e. to the second EFQM level of excellence.
During several meetings EFQM team decided on criteria for IPs condensation and selection
(possible due to some correlations) and defined 5 general IPs for 2003. These IPs were
deployed to all ETK units and explained in detail at Quality Coordinators meeting.
Each ETK unit prepared its improvement plan by selecting all IPs relevant to that unit.
Company Quality Manager performs the follow-up of units’ improvement plans.
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 42 of 52
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Improvement Action 1 (continued)
A
Title of Improvement
Action:
B
Owner of
the Action:
D
Priority
Ranking:
Self-assessment 2002 against EFQM Excellence Model
Company Quality
Manager
C
Date for
Full
Deployment:
October 2003
High
E
Model
Criterion:
5: Processes
F
Current
Status as of the
submission date:
90% completed
Description of Improvement Action
I
Comments
RESULTS (Deployment
Measurement)
Has the improvement action been deployed within
the time scales described in the Improvement
Plan?
•
The units’ improvement plans were deployed
and implemented according to schedule.
Has the improvement action been deployed to its
full potential as described in the Improvement
Plan?
•
Planned improvements by units in 2003 are
to be implemented (70%) by June 03. The
rest will be implemented until December
2003.
Company Quality Manager performs the
follow-up after Q103 and Q203. An
intermediate follow-up in May is
implemented to secure higher % of
improvement plan accomplishment by
units.
Beside the Corporate Global Customer
Satisfaction measurement program, a local,
own-developed customer satisfaction
measurement program is implemented.
Due to reorganizations and achieved
improvements, the web sites of ETK units
published on the Internet and Intranet were
revised and updated.
Information on company and units’
objectives for 2003 is published on ETK
Intranet and is easily accessible to all
employees responsible.
J
ASSESSMENT AND REVIEW
Monthly or weekly update, could include;
• learning points, issues for resolution
• revisions to the described approach and why
• revisions to the deployment plan and why,
etc
•
•
•
•
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 43 of 52
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Improvement Action 2
A
Title of Improvement
Action:
B
Owner of
the Action:
D
Priority
Ranking:
Competence Shift (CS)
Robert Lakovnik
(Vesna Franjic)
High
F
Current Status as of
the submission date:
C
Date for
Full
Deployment:
2004
E
Model
Criterion:
3: People
70% completed
Description of Improvement Action
APPROACH (Describe the improvement action and rationale for selection)
In line with Ericsson Strategic Planning (ESP) the ETK Management Team determined strategic
objectives for period 2000-2004 with focus on top 10 activities. Among the key factors for
Ericsson success ETK Management determined as key activities Competence Shift. (CS 2004) –
project for competence development with focus on new area the New Telecom World (NTW).
Project started in 1999 and as sponsors were nominated ETK President Åke Enell and Deputy
Rajko Pfaff.
Objectives of project: to increase the number of NTW experts in % of total ETK employees (in
1999 – 7%, in 2000 - 14%, in 2001-28%).
Main activities in the project:
o to make competence gap analysis for ETK key positions, (Appendices FIG. IA2-1)
o to define development program (list of training courses, internal and external,
project plan)
o to define candidates for active training
o to follow up the accomplishment
o reporting and reviewing during the year
• In order to stress competence required for NTW, in 2002 the subproject Competence Evolution
Program (CEP 2002) was formed. ETK Competence Manager is responsible for following up the
training program and improving the relations with FER.
Competence development is also achieved within the postgraduate studies. If Competence Gap
Analysis outlines a unit’s need for postgraduate competencies, Unit Competence manager will
determine the need for new competences, required knowledge and competences for each job (under
guidance of Unit’s Director) and recommend in written form the candidates for defined post graduate
studies in current year. Competence manager is responsible for finding and offering university
postgraduate programs. HR Director finally approves every application for postgraduate studies. HR
unit is responsible for monitoring and following up the accomplishment
H
DEPLOYMENT (How is the approach being implemented?)
• Postgraduate education as a continuous long-term process was implemented in all ETK units
with great results. In 2003 at ETK there are 175 active postgraduate students. The rate of
finished studies is very high. For instance, in the time period 1990 to 2001, 25 employees
attended postgraduate courses, and only one did not finish this study (96 % achievement).
• Competence Shift was also implemented in all ETK units. In the period from 1999 till 2003
through CS 2004 project and CEP 2002 training programs, 224 employees finished FER
university development program (20 % of ETK employees).
G
•
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 44 of 52
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Improvement Action 2 (continued)
A
Title of Improvement
Action:
B
Owner of
the Action:
D
Priority
Ranking:
Competence Shift
Robert Lakovnik
(Vesna Franjic)
High
F
Current
Status as of the
submission date:
C
Date for
Full
Deployment:
2004
E
Model
Criterion:
3: People
70% completed
Description of Improvement Action
I
Comments
RESULTS (Deployment
Measurement)
Has the improvement action been deployed within
the time scales described in the Improvement Plan
•
•
Has the improvement action been deployed to its
full potential as described in the Improvement
Plan
•
•
•
J
ASSESSMENT AND REVIEW
Monthly or weekly update, could include;
• learning points, issues for resolution
• revisions to the described approach and why
• revisions to the deployment plan and why,
etc
•
•
•
The competence development plan –
FER education was followed up through
“5 waves” (from 1999-2001) and in
2002 the CEP 2002 started.
Postgraduate study: the majority of
students finished education according to
the plan (96%)
FER education for NTW in year 2001172 certificated employees (61% of
planned attendees)
Postgraduate study (from 1999 till
2003) included 200 employees (18% of
ETK employees)
Web learning Mr E - 935 certificated
employees (72% of ETK employees)
Line Manager and Competence
Manager perform monitoring of realised
and planned training, throughout the
year.
Early each year, during the PD
discussion between the Line Manager
and employees an evaluation is made of
performed training and defined
competence gap (difference between
present and required competencies).
In accordance to both individual and
company plans a new development plan
will be compiled containing continuous
activities for improving and reaching
required competence level.
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 45 of 52
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Improvement Action 3
A
Title of Improvement
Action:
B
Owner of
the Action:
D
Priority
Ranking:
Application TRAMP
M. Staresincic
B. Kranic
High
F
Current Status as of
the submission date:
C
Date for
Full
Deployment:
January
2001
E
Model
Criterion:
5:Processes
100% completed
Description of Improvement Action
G
-
H
-
-
APPROACH (Describe the improvement action and rationale for selection)
For years ETK has had a few thousands of business trips a year. These travels, and especially
the travel expenses, were difficult to track, so ETK decided to introduce a new, modern and
efficient tool for travel tracking. Significant savings were expected.
During the year 2000 in-house design and development implementation of the Travel
Management Project (TRAMP) started, with a goal to develop a web-based application for
travel management. At the end of the year 2000 the first release of the TRAMP application
was introduced, and now ETK has a complete overview of travel expenses, travel plans and
expenses are automatically posted to SAP/R3. Recently TRAMP has been revised to
introduce possible improvements revealed during the two-year implementation.
It appeared that the business processes should be analysed and changed if necessary
according to the principles of targeted goal.
DEPLOYMENT (How is the approach being implemented?)
In spring 2000 ETK formed the TRAMP project team; they held many interviews with
managers, travel department staff and the people who travel very often. In autumn 2000 the
first release of TRAMP, a web-based interactive application, was on disposal to ETK
employees.
There were many organizational changes in business processes but the project team was
strongly supported by top management and the project was finished successfully.
Almost all ETK employees were trained in workshops held by TRAMP coordinators.
From 2000 to 2003 a lot of improvements were implemented with the goal to get closer to
traveller needs. Possibilities include:
Creation of travel plan (more than one destination per order, proper cost object addressing
with formal control in the central business information system)
Automatic request for flight and/or hotel room reservation (with a possibility for direct
sending of orders to travel agencies)
Automatic visa request (for destinations where needed)
Electronic way of plan approval
Automatic information to travellers and administrators about plan approval, rejection or
sending to revision
Connecting all bills with the proper travel plan (administrator - for those received by the
company; traveller - for those received by him/her) including automatic cost calculation
Controlling function
Electronic way of travel cost calculation approval
Data prepared for postings to the central business information system.
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 46 of 52
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Improvement Action 3 (continued)
A
Title of Improvement
Action:
B
Owner of
the Action:
D
Priority
Ranking:
Application TRAMP
High
F
Current
Status as of the
submission date:
C
Date for
Full
Deployment:
January
2001
E
Model
Criterion:
5:Processes
100% completed
Description of Improvement Action
I
Comments
RESULTS (Deployment
Measurement)
Has the improvement action been deployed within
the time scales described in the Improvement Plan
•
Has the improvement action been deployed to its
full potential as described in the Improvement
Plan
Improvement action resulted in substantial
savings, i.e.:
• In addition to process changes, a
significant reduction of engaged assets
through advances and reduced cash
circulation through the company.
• A significantly reduced number of
process participants.
• Paper savings.
• Significant timesavings achieved by ecommunication.
• Savings resulting from awareness of
travel costs by both authorised
signatories and travellers.
• Each of the savings achieved can have
different effects in different companies.
According to the analyses, estimation is
that the company having three thousand
travels a year can return its investment
within one year period of time.
• Travel department staff collects all
traveller’s comments and, if needed,
order specific improvement from IS
support department.
• There are many reports generated by
TRAMP which are useful for reviewing
travel matters, and performed regularly
and on request
J
ASSESSMENT AND REVIEW
Monthly or weekly update, could include;
• learning points, issues for resolution
• revisions to the described approach and why
• revisions to the deployment plan and why,
etc
All plans were deployed and
implemented according to the schedule.
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 47 of 52
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Ericsson Nikola Tesla d.d. , Zagreb, Croatia
Organisation Chart
LM Ericsson
PRODACT&SOLUTION DIMENSION
MARKET&CUSTOMER DIMENSION
Market Area
Europe, Middle East and Africa
Market Unit Central Europe
(MUCE)
ETK
ERICSSON NIKOLA TESLA
ETK Strategic Team
ETK Top Team
R&D Centre
Operations
Marketing & Sales
KAM HT
Business Support
KAM VIPNet
KAM Enterprise
People&Culture
KAM BiH,
Montenegro
Communication
KAM Special
Project
General Services
Business
Development
KAM e-systems
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 48 of 52
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Appendices
Page 1
On Track
On Track
Warning
Off Track
3
2
4
1
Warning
On target
5
3
2
1
Excellent Off Track
Off Track
Excellent
Customer
On Track
On Track
3
2
On target
5
Financial
Warning
4
4
1
Warning
On target
5
3
2
4
1
Excellent Off Track
On target
5
Excellent
Innovation
Employee
On Track
Warnin
FIG. 2B-1 ETK
Balanced Scorecard
Off Track
3
2
4
On target
1
5
Excellent
Internal efficiency
CRM, Customer Relationship Management
Customer Satisfaction
Ericsson Planning
SDP 1
Create
Sales
opportunities
Customer
Buy-in
SDP 2
Preparation
of
proposal
SDP 3
Get
acceptance
Negotiation
SDP 4
Contract
handshake
Contract
execution
Final accept
and
payment
Supply
Define
Market
Opportunity
Define
Business
Solution or
SP/PP content
Marketing
communication
Design
Market
Offer
Market
offer
maintenance
Phase-out
Business
Solution
or SP/PP
Provisioning
FIG. 2D-1 Sales and Marketing Process for Direct Distribution within the Operator Segment
Appendices
Page 2
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 49 of 52
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Access Control
Daily Activities by Registration
14
12
10
%
8
6
4
2
0
1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hour
1999
2000
2001
2002
2003
FIG. 4C-1 Some ETK employees are comming into ETK premises very early and stay very late
FIG. 5A-1 ETK Operational Management System (OMS)
Appendices
Page 3
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 50 of 52
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EFQM Self-assessments Results
80
69
60
56
50
37
40
20
0
1996
1997
1998
2002
% Achievement of ETK
FIG. IA1-1 In 1999, 2000 and 2002 ETK have performed Self-assessment against Ericsson Business Excellence
Model and obtained results are not comparable with EFQM Excellence Model
Average competence gap for:
Datacom experts
Network integration (standards, scenerios,
concepts…)
5,00
NTW Solutions (products, services…)
Customer orientation
4,00
3,00
Overall business awareness
Technology (protocols, OS, RDBMS, …)
2,00
1,00
Ericsson (processes, products)
Market situation (competitors…)
0,00
English (Russian…)
NTW - strategic development
Written and oral communication
Teamwork
Approach to change
Planned
Actual
FIG. IA2-1 Competence gap analysis for datacom experts
LIST OF ABBREVIATIONS
ATM
AXE
BinC
Asynchronous Transfer Mode
Digital Public Exchange
Best in Class (External benchmarks: IT,
telecom and Service companies)
KSTool
LAN
N/A
Knowledge Sharing Tool
Local Area Network
Not Applicable
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 51 of 52
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NTW
MORE
CEP
CRM
Balanced Scorecard
Employees satisfaction measurement
tool (older version)
Competence Evolution Program
Customer Relationship Management
CSI
CSR
Customer Satisfaction Index
Customer Service Request
OH&S
OMS
CS&SS
DECT
PC
PD
PE
Performance Evaluation
EDGE
ELS
Customer Solutions & Sales Support
Digital Enhanced Communication
Technology
Dialog is Ericsson's employee survey
that is used since 1999 worldwide.
Enhanced Data for Global Evolution
Ericsson Local Services
New Telecoms World
Managing Opportunities and Resources
for Ericsson
Management System
Market Unit Central Europe (local
Ericsson companies in Poland, Czech
Republic, Slovak Republic, Hungary,
Croatia, Bosnia-Herzegovina and
Slovenia
Occupational Health & Safety
Operational Management System
(Integrated Quality, Environmental and
OH&S Management System)
Personal Computer
Personal Development
PM
PMPD&PE
ESP
Ericsson Strategic Planning
PROPS
EMEA
Market Area Europe Middle East and
Africa, see Organisation Chart
Ericsson Nikola Tesla d.d., Zagreb
Faculty for electrical and computing
sciences, Zagreb
General Purchasing Agreement
General Packet Radio Service
Global System for Mobile
Telecommunication
Human Resources
Percent of accepted tenders
1 EUR = 7,56 HRK or kn (Croatian
currency)
Human Resources Management System
RBA
Performance Management
Performance Management –
Performance Development &
Performance Evaluation
Project management approach with
stipulated milestones and tollgates in
each project phase
Risk based Assessment (business
oriented internal auditing)
Research & Development
Business management software
BSC
COMPAS
DIALOG
ETK
FER
GPA
GPRS
GSM
HR
Hit rate
HRK
HRMS
HT
IAS
IP
IT
ITO
KAM
KPI
Croatian telecom operator
International Accounting Standards
Improvement Proposal (after RBA or
audits)
Information technology
Inventory Turnover
Key Account Manager
Key Performance Indicator
MS
MUCE
R&D
SAP/R3
SIO
SIQ
SWOT
TMT
TRAMP
TQM
UMTS
VIPnet
WARP
WCDM
Sales Information Organiser
Slovenian Institute for Quality
Strengths, Weaknesses, Opportunities
and Threats analysis
Top Management Team
Travel management tool
Total Quality Management
Universal Mobile Telecommunications
System
Croatian mobile operator
Web based authorization program
Wideband Code Division Multiple
Access
_____________________________________________________________________________________________________
Recognised for Excellence
Submission Document 2002
Page 52 of 52
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