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The Story of MTC-Vodafone
Written by MEPI Business Internship Program alumna Nouf AL SOWAIDI from Bahrain

MEPI Business Internship Program alumna, Nouf AL SOWAIDI, has recently been promoted within the company she works, MTC-Vodafone. The following is a summary of a recent presentation she delivered to a panel of HR professionals. Nouf aspires to become the Chief HR Officer at MTC-Vodafone. You can read her full alumna update on the Alumnae Updates page. Congratulations Nouf, keep up the hard work!

The Story of MTC-Vodafone

In this world of high competition, MTC-Vodafone has shocked the world with its ground-breaking and unconventional methods of doing business. Breaking unprecedented records with its speed of building operators from scratch, MTC-Vodafone has become the talk of the town with a reputation spanning the four corners of the world.

How it all started

Mobile Telecommunications Company (MTC) was established in 1983 in The State of Kuwait as a government entity, the first of its kind in the Middle East. At the time cellular phones were at their early stages using analog technology. In 1994, MTC introduced GSM (Global System for Mobile communications) in Kuwait, again another precedent in the region, and in 1999 it was the first to introduce prepaid services. In the year 2000, the Kuwaiti mobile market opened up to competition and as a result, a new operator, National Mobile Telecommunications Company (NMTC) entered the market. A year later the government reduced its stake in MTC to 25% starting a trend of privatization throughout The State of Kuwait.

MTC is led by former General Manager and now the managing Director and Deputy Chairman, Dr. Saad Al Barrak, a visionary ahead of his peers and former General Manager of International Turnkey Systems (ITS) in Kuwait. His vision to “make MTC the sweat heart of the world” is embodied in his 3 x 3 x 3 Vision.

 

3 x 3 x 3 Vision

The 3 x 3 x 3 Vision of MTC is a vision by Dr. Saad Al Barrak to become a global company in 3 stages that last 3 years each. In the first 3 years, MTC hopes to become a regional company and become a reputable company in Middle East. In the next 3 years, MTC would like to have operators outside the Middle East and build a number of operators around the world. In the last 3 years, MTC would like to go global, with Mobile operators all over the world and a huge following.

MTC’s Operators

In 2002, MTC signed a dual branding agreement with Vodafone which allowed it to add the Vodafone brand to its logo. That started a streak of acquisitions that began with buying 96% of Fastlink’s shares in Jordan, then moved on to winning the GSM license in Bahrain resulting in the establishment of MTC-Vodafone, Bahrain. The next license was awarded to MTC in Iraq which resulted in the birth of Atheer and after that came the wining of management contract for the one of two operators owned by the State in Lebanon of LibanCell in Lebanon, now called MTC Touch. Our greatest achievement thus far, though, is going beyond the first 3 in the 3 x 3 x 3 strategy and penetrating the African market by acquiring Celltel, a Dutch company that owns 13 operators throughout the South Eastern part of Africa.

 

MTC-Vodafone, Bahrain

MTC-Vodafone, Bahrain has been set up to become the model for a mobile telecommunications company for the rest of the MTC operators. Our leadership has sought to break many records while building the company including launching our services within 7 months which included building our infrastructure, recruiting suitable people and setting up operations. Our commitment to our national obligations resulted in exceeding the 75% Bahraini workforce constraint imposed by our government by 9% and doing it 1 year ahead of schedule plus exceeding our targeted 80,000 customers within our first year of operations by 20%.
The main competitive advantage sought by our leadership was not in the infrastructure or technology, but in our people and organizational culture.

Why Culture?

In such a competitive environment, MTC-Vodafone, Bahrain thought of a way to gain a competitive advantage that is unprecedented in the region. Our leadership found no better asset to compete with than their people. Our people first attitude and our commitment to develop a culture that would enable them as future leaders have become our competitive advantage.

Our decision to have our unique culture become our competitive advantage is derived from the following reasons:

  • To build a capacity for doing things in a different way
  • To ensure that we achieve our targets and bring our vision to reality
  • Defining our values will drive our behavior in dealing with customers, employees and business partners
  • To prepare ourselves for the new challenges of the telecommunications market presented by aggressive competition, increased customer expectation and rapid technological advancements.

How We Arrived at This Culture (Methodology)

After a long process of sitting with the leaders of MTC-Vodafone, Bahrain and interviewing them thoroughly to arrive at the desired set of values on which we will build our culture, we conducted a series of basic culture awareness sessions in order to educate people of all ranks on our culture and what is expected of each one of us to keep it alive. We then conducted a culture survey to assess where we are in terms of our desired target and then we worked on implementing the action plans that have come out as a result of the survey.

Our Set of Values

The set of values at which we have arrived are:

  • Relentless focus on excellence, value addition and customer focus.
  • Open communication in all directions.
  • True and full adoption of empowerment.
  • Ownership, leadership all over.
  • Teamwork, tolerance, respect and trust.
  • Recognize achievers with focus on fairness but not equality.

The 5F Philosophy

MTC-Vodafone, Bahrain has adopted a unique philosophy in its HR practices made up of 5 elements:

  • Fitness: This refers to fitness of the mind and job fit. Ensuring the right skills are provided for the right position. And to insure staff fitness in all aspects (professionally, psychologically, financially and socially).
  • Future: We like to think that MTC-Vodafone, Bahrain is an incubator for talent in which people come and gain a high market value. Whether they decide to stay with us or branch out and experience other companies, we like develop our people to become future leaders with a high market value for their talent.
  • Fortune: In our efforts to ensure a high level of satisfaction among our employees, we have made sure that our compensation and benefits compete with those in the region. Not only that, our benefits will include stock options in the future to adopt the true meaning of the word “fortune”.
  • Freedom: At MTC-Vodafone, we truly believe in freedom of expression, and freedom of the style in which one completes the task. We don’t enforce strict policies that stifle a person’s creativity; each and every one of us is free to deliver however we feel is most suitable to our style.
  • Fun: Fun is a vital factor in how we conduct our business. We work hard but we try to make our jobs more fun, and it is HR’s responsibility to make the workplace fun for everyone.

The Influence Behind the Culture

Dr. Saad Al Barrak, always in search of great insights and new paradigms in management has always placed great emphasis on human resources. That is why the Human Resources function at all MTC operators is always placed under great scrutiny in order to ensure quality of service to our internal customers.

He is mostly influenced by Peter Drucker who, generations ahead of his time, stated: “The most valuable assets of a 20th century company were its production equipment. The most valuable asset of a 21st century institution, whether business or non-business, will be its knowledge workers and their productivity.”

Another influence comes from Stephen Covey’s “The 8th Habit” where Dr. Al Barrak found his ideas and beliefs very clearly articulated. The book talks about the whole person paradigm. It preaches that the 8th habit is about “finding your voice and inspiring others to find theirs… It encompasses the soul of the organization that will survive and impact the future of the world.”

The assumption is that a whole person needs to be treated kindly, paid fairly and used creatively to ultimately leave a legacy. A whole person has a heart, body and mind which, if fulfilled, the ultimate spirit is fed.

The better the above is implemented the higher up the choices ladder a person goes. If treated badly, a person would either rebel or quit and as treatment gets better, he/she goes up the ladder until the stage of creative excitement is reached and you get an outstanding, loyal employee.

MTC-Vodafone, Bahrain’s HR Model

The model has been created to serve the ultimate goal of the HR department and it’s most important value: leadership all over.

Our aim is to either develop leaders from within or attract people with leadership potential from the market and provide them with the right environment to nurture that leadership. The right environment includes an open, empowering culture, flexible policies and clear and concise procedures.


MTC-Vodafone, Bahrain Strategic Initiatives

  • Appointment of Culture Specialist: when the idea of a unique culture materialized, our leadership thought that the best way to implement it is to dedicate a person to become its driver. With the help of consultants, we were able to build a solid program to deliver and instill the desired culture within the ranks of the company. The Culture Specialist’s job is mainly to ensure a healthy, work conducive environment, communicate and instill the culture and values and open and enhance vertical and horizontal communication.
  • Empowerment Program: at the very beginning of our operations, we decided that in order for leaders to emerge, we need to teach our existing leaders how to empower their people to take decisions that are in alignment with what is expected. Therefore, a company wide empowerment workshop was conducted that combined role playing and theory.
  • Extraordinary Leadership Program: also in line with our leadership motif, we have adopted the Zenger-Faulkner model of leadership that scientifically proves that leadership built from good to great can have exponential differences in their results. The tool assesses a potential leader through a 360° evaluation and builds on existing strengths rather than work on correcting weaknesses.
  • Team Building Program: This program was designed to enhance the team spirit within cross-functional groups and help them improve their communication to achieve their purposes.
  • Employee Satisfaction Survey: The first of an annual survey was conducted recently covering 7 themes including job, compensation, communication, career management, supervision and management style, physical environment and company comparison. The results are currently being discussed with individual departments and action plans have been put in place to take corrective action.
  • Developing and redesigning policies to fit the desired culture: Here at MTC we have done the opposite of what is conventionally done. Rather than build policies from the time of inception and impose them on people, we waited until we were a year into operation and then designed our policies to fit our culture.

We pride ourselves in being a young company that has served its community by recruiting a majority of locals and one that has created a sense of camaraderie within its ranks. We have continuous social events to enhance the interaction between our people and recognition programs far beyond those of our peers in the region. We’ve tailored our HR services to suit the individual and created policies that impact the masses but also give enough leeway to deal with exceptions.

The story of MTC-Vodafone, Bahrain as a model for a successful telecommunications company is indeed a ground shaker in terms of the strategic initiatives and the precedents it has set. It has certainly opened the eyes of the world at this seemingly small company that, in only 3 years of existence as a non-government entity, has bought off or built new operators on 2 continents and 18 different countries; next on the agenda: THE WORLD.