To be guided by core values and yet open to what is new and challenging is the hallmark of successful companies. Ericsson's core values of professionalism, respect and perseverance define how we treat each other, our customers and our business partners. Ericsson is also a learning organization. As our business evolves in pace with a changing world, our employees need the right competence. The diversity of Ericsson's global organization powers innovation and learning, and strengthens the importance of the Group's core values.

Ericsson seeks to be the employer of choice in the more than 140 markets where it operates. Ericsson's strong culture is a key to successful attraction and retention of employees. In Sweden, where one third of all employees are based, Ericsson is consistently ranked as number one or two in Universum surveys of Swedish engineering and science graduates' ideal employers. Sony Ericsson often holds the other top ranking.

Employees at Ericsson are expected to have annual Individual Performance Management (IPM) discussions with their managers to align business targets with individual goals. These are followed up at least twice yearly. In 2006, 83 percent of employees had undergone IPM evaluations. As of 2007, there are quantified targets set to ensure that competence plans are formulated for each individual in the organization. The target for 2007 is to reach 90 percent of employees.

Employees' perception of Ericsson is tracked in an annual employee survey, Dialog, in which over 90 percent of employees responded in 2006. The survey captures valuable employee feedback on many aspects of operation, including corporate responsibility-related issues such as diversity.

Learning is seen as an important component of our corporate culture and can occur in many ways - structured and unstructured, formal and informal. Competence management is aligned with our business requirements as well as job profiles and roles, and supports talent management in order to prepare Ericsson's next-generation leaders and employees. An effective learning process enables people to grow and expand into new areas supporting our company vision.

In 2006, a global learning function was established under Group Human Resources and Organization with the objective to strengthen Ericsson's effectiveness as a learning environment.

A global network of approximately 40 competence managers was formalized in order to capture the needs of our units and deploy initiatives more efficiently. A strategic competence assessment was conducted with 80 percent of Ericsson's organizational units in 2006 to set specific targets around competence. Also in 2006, a competence development network was formed to help ensure an efficient process on the local level to identify knowledge gaps.

Ericsson also started to measure some critical aspects of learning through the Dialog Survey, such as management support of training and development, time dedicated to learning and IT learning support.

In 2007 Ericsson expects to launch new platforms for knowledge sharing, enhance training opportunities and more effectively distribute e-learning content.

Instructor-led training is handled both by external suppliers and Ericsson Education, which delivers most product- and technology-related training. In 2006, Ericsson Education delivered approximately 100,000 student days to our employees.

One of the most established programs managed by the global learning function is the Leadership Core Curriculum (LCC) that targets all first-time managers. LCC delivers a unified framework for people leadership for individuals that have line-manager responsibility. During 2006, LCC was delivered to approximately 900 managers within the Group.

In a rapidly changing world, Ericsson requires the right competence to ensure long-term growth. Success will depend on a combination of the right organizational processes, competence development and our people.