Harvard Case - Transforming Culture in the Kingdom: How Saudi Telecom Focused on People to Compete in the Digital Age
"Transforming Culture in the Kingdom: How Saudi Telecom Focused on People to Compete in the Digital Age" Harvard business case study is written by John Branch, Kim Cameron. It deals with the challenges in the field of Organizational Behavior. The case study is 18 page(s) long and it was first published on : Sep 19, 2019
At Fern Fort University, we recommend that Saudi Telecom (STC) continue its focus on transforming its organizational culture to be more agile, innovative, and customer-centric. This should be achieved through a multi-pronged approach that leverages leadership styles, organizational culture, team dynamics, motivation theories, and change management principles. This strategy will enable STC to effectively compete in the rapidly evolving digital landscape.
2. Background
This case study examines Saudi Telecom's (STC) journey to transform its organizational culture to adapt to the digital age. The company faced challenges in attracting and retaining talent, fostering innovation, and competing effectively in a dynamic market. STC's CEO, Khaled Biyari, recognized the need for a cultural shift to empower employees, encourage collaboration, and drive innovation.
The main protagonists of the case are:
- Khaled Biyari: CEO of STC, leading the cultural transformation.
- STC Employees: The target audience of the cultural shift, facing new challenges and opportunities.
- Competitors: Companies like Zain and Mobily, posing a threat to STC's market dominance.
3. Analysis of the Case Study
STC's cultural transformation can be analyzed through the lens of organizational behavior and change management frameworks.
Organizational Behavior:
- Leadership Styles: Biyari's transformational leadership style, characterized by empowering employees, inspiring vision, and fostering innovation, was crucial in driving the cultural shift.
- Organizational Culture: STC's initial culture was hierarchical and bureaucratic, hindering agility and innovation. The transformation aimed to shift towards a more employee-centric culture emphasizing collaboration, creativity, and customer focus.
- Team Dynamics: The introduction of cross-functional teams and employee empowerment fostered collaboration and improved decision-making processes.
- Motivation Theories: STC implemented employee motivation strategies like performance-based rewards, recognition programs, and career development opportunities to enhance employee engagement.
- Organizational Structure: The company restructured its organizational structure to flatten hierarchies, enabling faster decision-making and improved communication.
Change Management:
- Communication Patterns: Open and transparent communication was crucial in facilitating the cultural shift. Biyari actively engaged with employees, sharing the vision and addressing concerns.
- Resistance to Change: The company faced resistance from some employees who were accustomed to the old ways of working. STC addressed this through employee training, leadership development, and psychological safety initiatives.
- Organizational Learning: The company fostered a culture of continuous learning and improvement through feedback mechanisms, employee development programs, and knowledge sharing initiatives.
4. Recommendations
To further enhance its cultural transformation, STC should consider the following recommendations:
Strengthen Leadership Development: Implement comprehensive leadership development programs for all levels of management, focusing on transformational leadership principles, emotional intelligence, and cross-cultural management skills. This will ensure a consistent leadership style across the organization and empower managers to effectively lead the cultural change.
Foster Innovation and Creativity: Establish dedicated innovation hubs or centers to encourage experimentation, collaboration, and the development of new products and services. Implement employee empowerment programs to encourage employees to take ownership of their work and contribute innovative ideas.
Enhance Diversity and Inclusion: Promote diversity and inclusion initiatives to attract and retain a wider range of talent. This includes implementing diversity and inclusion training, creating inclusive work environments, and ensuring equitable opportunities for all employees.
Strengthen Employee Engagement: Implement a comprehensive employee engagement strategy that includes regular employee surveys, feedback mechanisms, and initiatives to address employee concerns. This will ensure that employees feel valued, heard, and motivated to contribute to the company's success.
Embrace Technology and Analytics: Leverage technology and analytics to optimize business processes, enhance customer service, and drive innovation. This includes investing in digital transformation initiatives, developing data-driven decision-making processes, and utilizing technology and analytics to improve employee performance management.
5. Basis of Recommendations
These recommendations align with STC's core competencies and mission to be a leading telecommunications provider in the region. They are also consistent with the company's strategic goals of attracting and retaining talent, fostering innovation, and providing exceptional customer service.
The recommendations consider the following factors:
- External Customers: The recommendations focus on enhancing customer experience through innovation, technology, and exceptional service.
- Internal Clients: The recommendations aim to empower employees, improve their engagement, and create a more fulfilling work environment.
- Competitors: The recommendations are designed to help STC stay ahead of the competition by fostering innovation, attracting talent, and leveraging technology.
- Attractiveness: The recommendations are expected to contribute to STC's financial performance by increasing revenue, improving efficiency, and reducing costs.
6. Conclusion
By focusing on its people, STC has made significant progress in transforming its organizational culture. The company has created a more agile, innovative, and customer-centric environment that is better positioned to compete in the digital age. Continuing to implement the recommendations outlined above will further strengthen STC's cultural transformation and solidify its position as a leader in the telecommunications industry.
7. Discussion
Other alternatives not selected include:
- Mergers and Acquisitions: While M&A can provide access to new markets and technologies, it can also be disruptive and challenging to integrate different cultures.
- Outsourcing: Outsourcing certain functions can reduce costs but may lead to a loss of control and expertise.
Key assumptions of the recommendations include:
- Leadership Commitment: The success of the cultural transformation relies on the continued commitment of STC's leadership team.
- Employee Buy-in: Employees must be willing to embrace the new culture and contribute to the change process.
- Technological Advancement: The recommendations rely on the continued development and adoption of new technologies.
8. Next Steps
To implement the recommendations, STC should:
- Develop a detailed implementation plan: This should include specific timelines, milestones, and resource allocation.
- Establish a dedicated change management team: This team will be responsible for overseeing the implementation of the recommendations.
- Communicate the changes effectively: STC should continue to communicate the vision for the cultural transformation to all employees.
- Monitor progress and make adjustments: Regularly assess the effectiveness of the recommendations and make necessary adjustments to ensure success.
By following these steps, STC can continue to transform its organizational culture and achieve its strategic goals in the digital age.
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Case Description
This case describes Saudi Telecom Co.'s (STC's) transition from a government-run entity to a business competing on the open market. Early in its transition phase, STC recognized it would need to transform its employee and company culture to succeed. Led by Dr. Khaled Biyari and his immediate predecessors, STC's cultural transformation was widely heralded as successful by 2018. But Biyari left the CEO role that year, leaving Nasser Bin Sulaiman Al Nasser to take over the position. The change at STC's helm represented a critical inflection point for a company that, as the incumbent provider of all telecommunications in the Kingdom of Saudi Arabia, was seen as critical to the success of the country as a whole. The case is intended to show how a management change might be handled during a firm's critical years. Could Al Nasser continue the cultural improvements of his predecessor? And how would he go about building on the legacy of Biyari, whose personal vision and leadership presence was seen as essential to STC's achievements? Could Al Nasser push STC to become the modern, digital company it would need to be to attract talent in the highly competitive technology pool?
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