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Challenges Faced by the Multinational Companies- Leadership Dimensions continued (part 4 of 4)

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© 2017 Martin Zafirov, PhD Student, New Bulgarian University (F29144)

Edited by: Yara Mohamed, Mona Timor Shehata

Published by: Ahmed Mohamed Hassan

The necessity of comparative studies of management in the different cultures sets new areas of interest in the analysis of the intercultural business environment and its impact on the organisation. Cultural differences – knowing them, assessing them and taking them into account, are extremely important in achieving effective management of the human capital. The main problems which arise in organisations with different cultural discourse are related to overcoming ethnocentrism (the tendency and mindset to assess a culture only based on the standards of your own culture) and the reaction to the culture shock.

The conditions in the multinational companies and especially the specific characteristics and requirements of the human capital make the issue of the leadership in these companies one of the most important ones for them. It is not possible to build an effective leadership which would lead to effective management of the human capital in a multinational company if the leaders rely only on getting to know the cultural values, stereotypes and cultural trends in this company. It is necessary to apply this knowledge in the actual operation of the company by using different management models and methods for employee motivation for achieving optimal efficiency in the work process. The following table shows in a summarised form the main management tools, approaches and models depending on the reference boundaries of the cultural dimensions based on the Geert Hofstede’s model[1].

 

Table 1: Main management tools, approaches and models for the different boundaries of the cultural dimensions according to Hofstede

Dimensions Low values High values
Power distance – Flat organisational structure

– Most-effective management approaches are used in team activities;

– Efficiency is achieved by adding more persons to the decision making process

– The organisational structure is most efficient when there is a centralised power and clear hierarchy;

– Management from position of power;

– Answers and responsibility are to be found at the high organisational levels.

Individualism versus Collectivism – Harmonious relationships are valued more than honesty;

– Age, traditions and wisdom should be respected;

– Implementation of changes should be done slowly;

– Feelings and emotions are repressed in order to preserve harmonious relationships.

– Punctuality and personal freedom are highly valued;

– Challenges and remunerations for a job well done are a strong form of motivation;

– One of the effective management tools for revealing of potential is encouraging discussions and expression of original ideas as well as acknowledgement of the achievements.

Masculinity versus Femininity – Effective management depends on the equality between men and women;

– Women are capable of doing anything men can do;

– Positions and work relations are organised in a way as to not discriminate against any of the two genders.

– There is an inclination to separate into male and female roles;

– Effective management is achieved based on this;

– Behaviour should comply with the stereotype: Analytical attitude and reservedness by the men, emotionality and expressiveness for the women;

Avoiding Insecurity – Informal business relations;

– Inclination towards changes;

– Effective management is a management which does not create structures and rules unnecessarily;

– Control of the emotions, self-restraint;

– Variety is valued.

– Effective management is based on precise and clear expectation parameters;

– Planning is an important part of the management tools;

– Frequent communication and detailed plans;

– Focus on the tactical part of the project;

– Emotions are expressed through gestures and intonation;

– Structure is desirable and expected;

– Formal business relations, requirements and procedures.

Long Term Orientation versus

Short Term Orientation

– The successful management strategy acknowledges the equality of all;

– It stimulates creativity and individualism;

– Mutual respect;

– Adaptivity towards changes;

– Setting short term goals.

– The family and the family type relationships form the base of society;

– Successful management is based on the traditional positions;

– Acknowledgement and reward for loyalty, stubbornness and dedication;

– Frivolous and extravagant behaviour is not tolerated.

The dynamic world with all the changes happening in it lead to the rise of a new generation of leaders. The main characteristics of this type of manager are presented in Johnson and Oberwise’s article “Your #1 Leadership Challenge: Human Capital Maturity”[2]. According to the authors, it is about the rise of a new type of manager in the big companies (especially the multinational ones), whose experience is totally different from the one of the leaders of the previous years. The claim of the authors about the rise of this type of new leaders mostly in multinational companies seem completely logical, because this is exactly where there are many cultural and value differences regarding the human capital which require the most effective and adequate management.

If we look for the main difference between the new generation of leaders and the ones from the past, undeniably it is that leaders nowadays work in an environment quite different from the one in the past. The main reason for the change in environment is the accelerated globalisation which causes the need for global leadership. The authors of the article claim that most of the managers have to deal very early in their career with the necessity of working with teams whose members are located very far from their homes. So in order to be effective leaders should quickly become aware of and master a concept which is still unknown for the vast majority of current managers, namely human capital maturity.

Human capital maturity may be related to the employees possessing three important attributes (qualities): savvy (rational) understanding of the business, high emotional intelligence and a strong aptitude for continued learning. Even though it may be summarised this way, it should not be forgotten that the concept of human capital maturity may appear in different forms depending on the conditions in which it is applied. Studies show that there are stable differences in the work forces between some economies, relating to how the work force works productively in organizational settings.

This it is extremely important for management based on this concept to clearly take into account the existing stable differences. The existence of stable differences, which was mentioned by Johnson and Oberwise, should be explored not only in the context of the individual countries, but also in the context of the intercultural (cross-cultural) differences which exist between the human capital in multinational companies. In relation to that, in the future the new generation of leaders and managers will be expected to achieve high results and high quality performance no matter where their workplace is located. It is necessary to get to know the many existing variations of human capital maturity and this has nothing to do with the claim that a large part of the employees in some economies are psychologically immature. In some areas of business activity the maturity model is related only with taking into account the fact that the abilities of the employees are built gradually over time, step by step.

Actually, it is possible to make a wrong read too (to reach a wrong understanding) about the strong sides of the maturity concept in each of the mentioned areas. For example, the authors mention cases in which employees may be unusually empathetic and communicate clearly and even eloquently, but at the same time they are so used to showing respect for their bosses and for traditional methods that they are averse to learning new ways of doing things.

According to the author of this paper, even though nowadays the human capital maturity concept is gaining in popularity it still has not reached the necessary level of development and awareness. If the education and development programs should be evaluated on a global scale this evaluation will show that they are not at the required level which would give the leaders enough training on how to evaluate human capital maturity. This conclusion is exactly what gives a reason to formulate one necessary direction for future improvement of the management activity at multinational companies.  During the current stage as a step in this direction may be pointed out that even just the action of becoming aware of the existence in differences in human capital leads to significant changes in the management process.

Johnson and Oberwise give two more pointers for successful work at multinational companies, which in my opinion are useful to the leaders and respectively lead to increased efficiency of the business activity in these companies. The first advice is based on the specific characteristics which become apparent in the process of working in a team made of members from different countries and respectively different cultures. In order to optimise the work process it is not enough to just get in touch (meaning establishing a way to communicate – with or without a translator). It is also crucial to understand cultural nuances which impact the quality of the human capital and its capability of working as a team within a multinational company.

In this case, in my opinion, it is not always necessary to use the services of a professional translator, if it is even necessary to use such for performing the communication. Regardless, a good approach would be to use an associate who knows well the cultural specifics of the region where the affiliate of the multinational company is located and respectively the human capital used by it. This is the only possible way of overcoming the differences which arise when combining human capital with different cultural specifics. This would lead to a significantly easier performance of the duties of a leader and an improvement of the end results of the business activity of the company.

The second advice is partly intended to reduce the negative impact of conducting inefficient communication i.e. a discrepancy between expectations and reality. When there is a difference between what the employees should be able to do based on their experience and expertise and what they actually do, it is a clear signal for the manager that it is necessary for some time to be spend on finding the causes which lead to this discrepancy. According to the authors, there are quite a few leaders who believe that these differences are due to a lack of sufficient communication on the part of the employees or a lack of quality communication between the manager and the employees. But it turns out that these are only a few of all the possible causes for the creation of this difference. In my opinion, if we have to look for another reason for this occurrence, it is undeniably related to the fact that the companies in question are multinational ones in which in almost all cases there are cross-cultural differences present in regards to human capital.

If the issues regarding human capital maturity as a leadership concept are explored from another point of view, and the results show that nowadays in order for organisations to develop their leadership they should make an effort to also include this concept as a base for improving the qualification and expanding the qualities of the managers working in a time of globalisation and an increasing number of multinational companies. Global leaders with a more realistic understanding of what to expect from their employees in the different environments will be much better prepared to improve their efficiency and respectively the efficiency of the company.

The thoughts presented so far show that successfully identifying, developing and maintaining the talent of the managers has a decisive impact on the long term success of every organisation, including multinational companies. This is why many of them, especially the largest ones, depend on “talented management” during the whole work process. This means hiring such managers who possess leadership qualities which will lead to a successful coordination of their actions with the actions of the departments responsible for the human resources of the company.

In his article “You Can’t Delegate Talent Management to the HR Department”, Ron Ashkenas explores the need for these so-called “talented leaders” or “talent management leaders”. According to Tomas Chamorro-Premuzic, talent concerns the abilities, skills, and expertise that determine what a person can do. These talents enable those managers among the company’s roster who manage to implement processes thanks to which they are able to receive a direct assessment of the quality of the human capital and the possibilities for its improvements and at the same time to improve the concept of increasing the talent of the leaders themselves.

The author of this report accepts Ashkenas’s claim with no hesitation whatsoever because it is not possible and it is also inappropriate to demand development of the human capital in a multinational company without at the same time seeking a way to increase the efficiency of the system which manages and coordinates the actions of the company’s employees.

The article mentioned above also presents another important question which is an integral part of the explored question. As mentioned above, “having a talented leader” becomes a strategic advantage for every multinational company (and also for the other types of companies). Because of this, a decision to organise a company in such a way that the managerial decisions are made by a centralised body consisting of such talented leaders may be considered to be a successful one. The centralised function allows for an in-depth and objective look at the talent of the company’s employees and makes it easier to implement the decisions which had been made.

Investments in building a centralised managerial structure based on talented managers have lead to mixed results. According to a CEB survey from 2013 “in only one out of four organisations there is a successful integration of the talented managers practice when executing the strategic goals of the company.” A survey conducted by EY in 2012 reached the conclusion that almost 600 of the global business managers think that the functions of the talented management are limited to only measuring “easy indicators” like employee turnover. At the same time, such important factors for the organisation as whether the right persons possessing the necessary skills works at the correct (suitable) position remain outside the main focus.

My personal opinion is in agreement with the stated conclusion since it is quite possible for the lack of accurate human resource management (meaning accurate assessment of their qualities and capabilities and based on that wrong selection of a work position) to lead to much worse results than the high employee turnover.

 

List of References:

  • Hofstede, G., (2006) Cultures and Organisations, Sofia, KlasikaiStil, 2001
  • Johnson, B. and R. Oberwise, Your #1 Leadership Challenge: Human Capital Maturity, published on: 26 January 2012, available at: https://hbr.org/2012/01/your-1-leadership-challenge-hu
  • Chamorro-Premuzic, Т., Talent Matters Even More than People Think, published on: 4 October 2016, available at: https://hbr.org/2016/10/talent-matters-even-more-than-people-think
  • [1]Geert Hofstede., Cultures and Organisations, Sofia, KlasikaiStil, 2001
  • [2] Johnson, B. and R. Oberwise, Your #1 Leadership Challenge: Human Capital Maturity, published on: 26 January 2012, available at: https://hbr.org/2012/01/your-1-leadership-challenge-hu

Articles

Stevie Awards Winners’ Articles Series – Boehringer Ingelheim

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“We are powered by people, we share a common purpose that drives everything we do, we serve mankind by improving the health of humans and animals, we believe in building a healthier future for millions of patients and bring innovative solutions with future thinking” Boehringer Ingelheim

Winner Name: Bariş Torun & Ufuk Balcı

Winner Title: Barış Torun-National Sales Manager & Ufuk Balcı-Digital Engagement Manager

Winning Organization: Boehringer Ingelheim

Nomination: The Grand Stevie for Organization of the Year.  The pharmaceutical giant’s six Gold, two Silver, and one Bronze Stevie wins are tops in the 2020 competition

Boehringer Ingelheim’s vision can summed up in a few words; Value through Innovation. We’ve adopted this approach to ensure that we can take care of our people, patients and partners, now and in the future. The overarching objective is to build sustainable, all-round growth that benefits everybody. In order to achieve this goal, we continually develop new, effective treatments alongside our established products and encourage our people to move forward. And while we do this, we treat everyone with care and provide a sense of responsibility. Together, we’re dedicated to improving human and animal health.

Brief Biography about the Winner:

International experience on marketing and digital transformation of customer engagement. Launched award-winning websites, mobileapps and omni-channel projects with patient and customer focus in pharmaceutical industry. Explores opportunities for integrating innovation and digital technologies into healthcare marketing &commercial side.

Stevie Award Winning Case Study:

AcTFast Mobile App – Saving Lives of People Having Stroke

Every 30 minutes a stroke patient who could have been saved, dies or is permanently disabled, because he was treated in the wrong hospital. Stroke patients have only 4.5 hours to reach thrombolytic treatment! Basically, an ambulance will dispatch their patients to the nearest health centre, but the necessary stroke treatment can only be administered at specialized stroke centres. This leads to the loss of treatment time, which is already very limited. Furthermore, delays in diagnosing these patients during pre-hospital or in the hospital can lead to risking patients’ life.

The ‘AcTFast’ Application was developed to address this type of issues exactly. With AcTFast, ambulance staff (paramedic) will be able to identify the stroke patient, take the patient to the right treatment centre without any delay and inform the stroke team with pre-notifications. With this tool both the pre-hospital phase and the in-hospital phase time will be minimized. The potential use and benefits of this application to address the need for speed when treating stroke patients was presented to all stakeholders, such as stroke societies and  the Ministry of Health. As a result, the Turkey Ministry of Health decided to install this app in all ambulances in Turkey. AcTFast is currently available on Apple Store.

The use of this app is mandatory for the 8,000+ ambulance staff and 30.000+ Ministry of Health employees, who will be trained on stroke management via this app. With this application, the biggest problem in the treatment of stroke will be solved by ensuring that the patients in the whole country are transported to the right centre within the right time frame, to ensure they benefit from the required treatment. The European Cardiology Society selected AcTFast as one of the 10 most creative projects in the world and upon their invitation, AcTFast has been presented at ESC 2019 congress in Paris this year.

Digital Transformation in Customer Engagement | Boehringer Ingelheim Turkey

  • Boehringer Ingelheim’s ambition is to establish a customer engagement model, which sets the industry benchmark.
  • In Turkey, big international Pharma companies have been doing multi-channel activities with a big volume in the last 4-5 years.  Since technology advancement is no longer marked by linear progression but by an exponential rate of change, it was harder to catch our competitors with unstructured activities and programs, while putting the customer at the heart of everything we do.

Integrated Customer Engagement Roadmap

  • At the beginning of 2019, Boehringer Ingelheim Turkey took a further step towards achieving this goal: Customer Engagement Implementation Roadmap including new channel deployment, content excellence, data analytics and change management. It centres on exceeding the customers’ expectations.

New Digital Platforms [# customer service, product design & development]

  • Boehringerone.com/TR – HCP (Health Care Professional / Medical Doctor) website including key info about our products and HCP education on related fields ( Website is only for HCP’s with restricted login)
  • Automated Email Platform – Head Office e-mail platform
  • Veeva Approved Emails – From sales representative to doctors email channel
  • According to market research results, HCPs trust pharma activities and resources when there is a collaboration with independent HCP associations. With this insight, KOL webinars organized with the biggest HCP associations in related areas. To promote those activities, 3rd party channels have been utilized in addition to owned channels:
  • Live Broadcasting Platform
  • Facebook – Event promotion posts on HCP association Facebook Pages
  • 3rd Party SMS and Email – Event promotion from HCP associations to their HCP database
  • To deliver exceptional Customer Experience with the optimal mix of​ Content, Services and Solutions, all of the channels mentioned above should have created consistent customer experience (omni-channel); rather than independent one-off touchpoints (multi-channel).

Leveraging Data & Insights

  • To leverage Data and Insights to continuously enhance our Customer Engagement Model, targeted e-mails sent to different HCPs according to their previous open / non-open status. It enabled us to give our customers more meaningful messages.
  • In parallel to above point, brand teams put themselves into customers’ shoes, all Approved email subject titles and designs were updated to meet customer expectations and mobile UI / UX trends.
  • To measure the success of the campaigns, first ever Analytics Tracker developed. Which shows our Customer Engagement per channel per brand per customer.

Change Management [# employee development]

  • Internal trainings were organized to both Field Force, Marketing and Medical teams.
  • Field Force Training on how to coordinate the engagement with the HCPs, while integrating new marketing channels around F2F and website.
  • Digital Marketing Fundamentals Training to marketers and medical colleagues to give basic understanding of content creation dynamicsdigital terminology and creating sustainable experiences to our customers.
  • To create awareness on these projects, internal newsletters were published to all colleagues in Turkey.

Impact on Human Health [# corporate social responsibility]

  • Increasing the quality of interactions with HCPs helps us to deliver right treatment to right patients. In addition to branded activities and content, we created the first ever non-branded HCP email newsletter.
  • Respiratory newsletter included useful content to be more patient focused via educating HCPs on soft skills.
  • For brands without any sales rep support, digital-only promotion plans executed throughout the year.

Impact on Business (Outcomes)

  • More than 25% increase in the digital channel activities.
  • Market leadership in two major therapeutic areas for launch brands.
  • 5,000+ unique HCPs visited our login-required website in 8 months, which makes more than 75% of our total universe. According to IPSOS market research, Boehringerone.com/tr website reached higher coverage than our main competitors did in 8 months of launch.
  • Avg. email open rate has tripled industry benchmarks. (40%+)

We are powered by people, we share a common purpose that drives everything we do, we serve mankind by improving the health of humans and animals, we believe in building a healthier future for millions of patients and bring innovative solutions with future thinking. We believe that, if we have talented and ambitious people who are passionate about innovation and bring move value to the healthcare community, there’s no limit to what we can achieve. .

Boehringer Ingelheim is a global family owned business with more than 50,000 employees in 103 countries, Boehringer Ingelheim is one of the world’s top 20 pharmaceutical companies, we act in the spirit of a global family that holds together and cares for one another – but also inspires and motivates each other.

THANK YOU

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Stevie Awards Winners’ Articles Series – Eng. Abeer Mahmoud Ramadna

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“Continuous Learning, adopting innovation & creativity and teamwork are among the guiding principles of success and excellence in the government sector” Eng. Abeer Mahmoud Ramadna

Winner Name: Eng.  Abeer Mahmoud Ramadna

Winner Title: Director Assistance for Control & Inspection for Economic Activities at Ministry of Industry & Trade in Jordan

Winning categories:

  1. The Gold Stevie Winner in the category “the most innovative Communications Professional of the year “
  2. The Silver Stevie Winner in the category “Innovation in Community Relations or public Services Communications”
  3. The Bronze Stevie Winner in the category “Innovative Management in Government – Organizations with 100 or more employees”
Brief Biography about the Winner:

Abeer Ramadna is the Director assistant of control and inspection unit at the Ministry of Industry, Trade, and Supply (MIT) in Jordan, she has a Master Degree in Industrial Engineering- Engineering Administration / University of Jordan with “excellent degree”. Abeer has 20 years of experience in private and public sectors, and is a focal point for UNIDO at MIT in Jordan. Abeer is a certified Management development Expert from ITC/ Vienna in 2005, a certified Export Consultant to EU from CBI/Netherland in 2007, certified Lead Auditor for Quality Management ISO 9001:2015, a certified Engineer Expert in Quality and Environmental Management systems in 2018 and a certified EFQM Assessor from EFQM in 2019. Eng. Abeer has a wide professional expertise in many fields that allow her to provide consultations to the organizations in various fields including Quality Management, Environmental Management, preparing industrial polices, strategies and plans, Inspection polices, Monitoring & Evaluation systems, implementing the ISO9001, ISO14001 ISO14040s standards, and conducting technical industrial sectors studies.

Eng. Abeer won three Stevie Awards from three different categories after participation in Middle East Stevie Awards in 2020, these are:

  1. Gold Stevie Winner in a category:” The Most Innovative Communications Professional of the Year”. These categories honor the most innovation in communications practice, management, and use of technology.
  2. Silver Stevie Winner in a category: “Award for Innovation in Community Relations or Public Service Communications”. These categories honor innovation in communications practice, management, and use of technology in the public sector.
  3. Bronze Stevie Winner in a category: “Award for Innovative Management in Government “. These categories honor innovation in executive management including the Award for Innovative Management in a number of industry sectors.

Abeer has been published scientific papers in one of the world accredited journals in E-government. Titled “Barriers to E-Government Adoption in Jordanian Organizations from Users’ and Employees’ Perspectives” in 2017, the link is:

https://www.igi-global.com/article/barriers-to-e-government-adoption-in-jordanian-organizations-from-users-and-employees-perspectives/181280

and published another scientific paper titled: “SEM approach to determine factors affecting e-government success in Jordan”,  the link is:

https://www.researchgate.net/publication/333488499_SEM_approach _to_determine_factors_affecting_e-government_success_in_Jordan

She was selected as a Judge at the Best Jordanian chemical product Award in all three cycles of it during 2015 to 2020, Judge in the 2019 management & entrepreneur Awards categories judging committee Stevie Awards, and Judge at the best industrial engineering project for the Jordanian universities in 2019. She participated in several national and International conferences, meetings and presented papers, as a representative of the MIT / Jordan.

https://www.facebook.com/abeer.ramadna

http://linkedin.com/in/abeer-ramadna-msc-ie-pe-cbi-em-itc-mde-66928170

https://stevieawards.com/ar/mena/eng-abeer-ramadna-2

http://jordanembassyus.org/news/jordanian-engineer-wins-three-middle-east-stevie-awards?fbclid=IwAR2iBj4P8uHERE_Q2Yf-hatk2yJ-bGeq1g8MaYPIz_HJ42HqUyA6UCPehdM

Stevie Award winning Case Study:

  • Developing action plans of inspection development to governmental institutions (Inspectorates) work in fields of health, Environment, labor, safety for economic sectors in Jordan.
  • Supervision of developing Electronic Inspection System for governmental inspectorates.
  •  Conduct many awareness workshops for governmental inspectorates and for private sector institutions.
  • Conduct many workshops and training sessions as A National trainer of trainers in the shaping of future studies.
  • Secretariat of higher committee for Inspection development of Economic Activates that consists from high level management in governmental inspectorates.
  • Abeer is trusted as a competent team leader and confident expert in Quality management & Inspection systems
  • Abeer conducted in 2018 a study titled the Industrial engineering in the government sector in Jordan, current situation and future opportunities and present it in the 2nd International Conference on Industrial Systems & Manufacturing Engineering (ISME’19) Nov, 11-12, 2019 in Amman.
  • Abeer was chosen after a series of selection process as one of the National participants in the Civil Service Development Program in Jordan and attended all phases including the leadership and developing high performance teams at the Royal Military Academy Sandhurst UK during 2019.

Eng. Abeer Mahmoud Ramadna “Continuing to contribute achievements and make positive impacts are goals that are achievable with the presence of strong & positive attitude, self-motivated character & determination.”

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Articles

Stevie Awards Winners’ Articles Series – Asiacell

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“Winning such an award requires hard work and we encourage other companies to focus on their customers and local communities in order to excel”

Winning Organization: Asiacell

Nomination: Award for Excellence in Innovation in Technology Industries (including Telecom)

Brief about the Organization:

Asiacell is a leading provider of telecommunications and data services in Iraq. As part of international telecommunications company Ooredoo Group, Asiacell was Iraq’s first mobile telecommunications provider to achieve nationwide coverage. Asiacell is also a leading internet provider with its 3.9G data services, offering the best network coverage in all of Iraq since January 2015.

Stevie Award Winning Case Study:

As part of its commitment to expand network coverage in Iraq, Asiacell has continued to support the redevelopment of the country’s infrastructure and economy and the provision of high-quality connectivity solutions. It has enhanced its “Hot Zone” restoration strategy by putting 200 sites on air and connecting over 500 sites to 3G.

Focused on improving the quality of life for communities, Asiacell’s CSR initiatives are focused on key areas, such as health, education and culture. Asiacell has equipped several higher education institutions with computer labs and supported the renovation of schools, with the aim of providing quality education infrastructure. It also partnered with the Chibayish Environmental Tourism Organization to build the first Iraqi Marshlands heritage museum in Ahwar as part of its efforts to revive Iraq’s Marshland, while generating a positive effect on tourism and jobs creation. 

Recognising that its people are its key asset, Asiacell continues to roll out initiatives focused on engaging and empowering employees. It has invested heavily in digital transformation, including digital upskilling for employees, and streamlining of various internal processes in order to nurture a digital-first culture that embraces innovation.

We are so glad to be recognized as a successful and innovative telecommunication company in Iraq with a Stevie Award for “Excellence in Innovation in Technology Industries”. Recognition from the Stevie Awards means a lot to us and motivates Asiacell to continue to serve the community with professionalism. Winning such an award requires hard work and we encourage other companies to focus on their customers and local communities in order to excel.

THANK YOU

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