3 rd June 2013

The BT Way: Continuous Improvement & Lean
TSO Forum 3 rd June 2013
3

• The BT Way for Continuous Improvement is part of Organisational Health and is a zone within the
Leadership and Core Skills faculty of the ‘BT Academy’
• The approach has been developed with lessons learned from pilots undertaken during 2012/ 2013 and also various line of business (LoB) Lean initiatives
•
Group level, Union consultation for Organisational Health took place last year. At a group level consultation for the core messages and principles of Continuous Improvement, and at a local level consultation based on operational drivers. This engagement is on-going, with the next consultation with CWU and Prospect planned for early May at a group level
• LoB level Union engagement is currently underway, led by LoB Employee Relations managers supported by Group Heads of CI from the central CI team
• Local teams are leading Union engagement at a local level, supported by their respective Senior CI
Coaches as subject matter experts

Key Differences - BTO Lean Service to Continuous Improvement
Lean Service
Wave Mandate
(3 wks)
Mobilisation Planning
(8 wks)
Mobilisation
(3 wks)
Wave Execution
(16 wks)
Wave Benefits
(4 wks)
Post Wave
(On-going)
Continuous Improvement
Wave
Mandate
Mobilisation
4 weeks 4 weeks
Wave Execution
12 weeks
5
Implementation
Phase
Post Wave
8 weeks On-going

The bigger picture
Performance Health
- To embed a consistent Continuous Improvement culture based on Lean/Sigma principles across all of BT by coaching managers and their teams
- To change the management context for these teams to support Continuous Improvement by working with the leadership team and HR
- To drive Continuous Improvement across all of BT for the benefit of our customers
CI is co-sponsored by Transformation and Group Learning – delivered through the Academy and aligned to Organisational Health and the new BT
Values 6

3 objectives of Continuous Improvement
Customer
A better customer experience
We’ll get a better understanding of what our customers want through the Voice of the Customer dialogue. This will help us to deliver a better customer experience .
Customer
People
Improved employee engagement
Lean, Change and Six Sigma ways of working will engage our people, and will empower them to be involved in how we get better CI
People
Cost
Our financial goals
We'll be able to use Lean, Change and Six
Sigma methodology to help us meet our financial goals.
Time
This is about how we improve things in BT for our people, our customers and our business
Cost

What is a 12 week wave?
• The Wave is the 12 week deployment of Continuous Improvement
• In addition to this 12 weeks there are 8 weeks before and 8 weeks after the wave
• For the 12 weeks in blue below the teams involved will benefit from dedicated coaching
• This 12 weeks is split into 3 phases:
Wave
Mandate
4 weeks
12 weeks
Continuous Improvement Wave
Mobilisation
Establish customer focused performance dialogue and team based problem solving
Understand and drive value in the value stream
Manage capacity and implement enblers for implementation
Implementation
Phase
4 weeks 4 weeks 4 weeks 4 weeks 8 weeks
Post Wave
On-going
8

How do we deliver these objectives?
We understand how to use our resources to meet the customer’s requirements. We close the gap between demand and resource in time to meet our customer’s expectations without adding cost.
We improve continuously to get the most value out of our processes.
We know what good output is, and how to produce it.
Our manager helps us follow agreed best practice.
Managing
Capacity
Getting value from processes
Customer
Focussed
“BT Way”
Continuous
Improvement
We talk to the customer often to understand what they need.
Everyone in the team understands the customer’s needs, and we measure how well we meet them.
Empowered
People
We understand what is expected of us.
We have a plan in place to build any skills we need. We get to use all our talents. We manage our own work, and call on help from our manager when we need it.
Our manager is visible in the workplace. She reinforces strategy, designs brilliant processes, and coaches us on problem solving.
Performance
Dialogue
We always try to solve problems ourselves and as a team. We will pull on help when we need it. We use structured problem solving and are coached by an expert.
Solving problems as a team
We all understand how our work helps achieve the wider goals of the business.
We talk daily about how we’re doing and how we can do better. We never forget about the customer, we look at hard evidence and we do

The 12-Week wave - What can I expect to happen during each phase?
Empowered people
We will establish performance dialogue and team based problem solving for the benefit of our customers
4 weeks
We will create great performance dialogue
We will understand and drive value in the value stream
We understand today
4 weeks
We will be better at managing capacity and making improvements continously
4 weeks
As we understand our processes we review capacity planning
We will solve problems at all levels of the organisation
Customer
Focussed
Performance
Dialogue
Team Based
Problem
Solving and know where we want to be tomorrow and how we set job standards and objectives
Process
Value
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And prepare for longer term BAU
Managing
Capacity

Continuous Improvement – benefits expected from CI within TSO
Cost reduction
Quality of service improvements Continuous
Improvement maturity
(impacting on org health & engagement)
Additional opex cost benefits e.g. 3 rd party costs
Continuous Improvement will deliver benefits to our customers, our people and our TSO cost base in the following ways:
 Embedding Continuous Improvement across TSO for the on-going benefit of our customers, our people and the TSO cost base

Empowering TSO teams to drive Continuous Improvement through coaching them on tools and techniques that help them improve their ways of working in a sustained way, increasing levels of engagement and the health of the organisation
 Delivering TSO cost reductions through teams undertaking logical analysis of the ways of working and understanding their key processes, removing wasteful activity
 Improving TSO quality of service by understanding the voice of our customers and by putting the customer at the heart of all we do
 Quality of service improvements providing increased customer centric service, through understanding the Voice of the Customer (VoC) and empowering teams to continuously improve service through using CI tools on a daily basis
 Benefits to our people and organisational health through increased continuous improvement maturity. Teams work towards bronze accreditation with CI coaches helping them make Continuous
Improvement ‘the way we do things round here’. We will see the impact of this through an increase in key CARE measures and an uplift in organisational health
 Cost reduction through embedding CI a business unit will drive a reduction in TLR costs across the whole business unit through analysing their processes and ways of working, removing ‘wasteful’ activity and improving/ enhancing business critical processes
 Additional opex cost benefits e.g. 3 rd party contractor reductions through applying CI tools and techniques within BT’s operations or through coaching our 3 rd party partners in deploying CI tools
11 11

Wave 1a (15 th April)
1.1 Marc de Wit, Global Network Ops
(TNQ4) 129 FTE
1.2 Martin Greenan, Operational SD
(TAP11) Subcon
Wave 1a (22 th April)
1.3 Daryl Szebesta, Group CIO
(TM) 141FTE
Wave 1b (20 th May)
1.4 Mark Williamson
EIPB 600 FTE
1.5 Paul Holl
Field Services – 200 FTE
FTE Scope = 1070
FTE
Year 1
Wave 2a (5 th August)
2.1 Martin Greenan, ASM
(TAP) Subcon
2.2 Peter Scott
EUT & Security (c 200 FTE)
Wave 2b (2 nd September)
2.3 Sub Wave
EIPB
2.4 Paul Holl
Field Services (c 200 FTE)
2.5 Sub Wave
FTE Scope =
TBC
Wave 3a (25 th Nov)
3.1 Sub Wave
3.2 Sub Wave
Wave 3b (6 th Jan)
3.3 Sub Wave
EIPB
3.4 Paul Holl
Field Services (c 200 FTE)
3.5 Sub Wave
3.6 Sub Wave
FTE = TBC

Tools Explanation
Job Satisfaction Survey
The purpose of the Job Satisfaction survey is to gather ‘voice of the people’ data. As one of the objectives of CI is about empowering our people, we send the survey, which is totally anonymous, to everyone in scope, so we can base line what people feel about their jobs. The output is used at VSM week and more importantly redesign week. CI is not just about improving the day to day processes, it is also about supporting the people side – e.g.: an output may be equipping managers with coaching skills. The survey then would be replicated 2 weeks after the WAVE closure to see what impact has been made in relation to how people feel about their jobs post wave
Manager Activity Tracking ,
The purpose of this is for managers to record the activities and time taken to complete them, on a day to day basis for a sample period, then to think about if those activities add value to the process. The output gives managers the data to be able to challenge any non-value activity that takes them away from time with their teams / CI. We have found this useful on previous LEAN Waves, as sometime managers don’t realize the how much time some activities take.
Please note this is about the specific activity-process, not the individual who is carrying out the activity.
Data Capturing Mechanism ,
This is a simple excel spreadsheet which is used to capture process data to help understand the level of waste within the process. Please note this is about the specific activity-process, not the individual who is carrying out the activity.
Initial Data Collection,
The teams were asked to think about collecting volume data for the processes in scope, a simple spreadsheet was provided to help gather this data.
Virtual Performance Board
All teams have a performance board to enable daily conversations which help to understand how they can improve all aspects of the process, customer and employee experience. An example of a performance board in on the next page.
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Performance Board
Definition:
• Performance Boards are the dashboards for our business
• Our performance against our Customers needs should be visible & known by all
• We review these measures at the intervals at which we can control them and we do this in a consistent and disciplined way
• Boards can be both virtual and physical as suits the environment
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TSO Forum 3 rd June 2013

Leigh
Bennett
MD
David Butcher
Datacentres
TSA
Paul Weir
Chief Engineer &
Transmission
TSB
Tom Wyman
Power
TSC
Richard Tarboton
Energy and Carbon
TSD
Paul Holl
Field Services
TSF
Mark Williamson
Exchange Infrastructure
Plan and Build
TSE
Lisa Neale
Commercial and
Business Ops
TSG

…to work as a team with our customers to create and run an infrastructure environment on which excellent service is delivered
Pride with selfmotivated talented teams
Innovative in infrastructure technology & perceived to be
Reliability with operational excellence
Reduced power consumption year-on-year
Internationally benchmarked on cost, service
& quality
Operational Excellence, faultless delivery, lower input costs, less T+S
Contract management, planning & governance
Resource planning, operating model, capability development, good management
17

…to work as a team with our customers to create and run an infrastructure environment on which excellent service is delivered
Pride Innovation Reliability Energy Cost, service
& quality
Operational Excellence, faultless delivery, lower input costs, less T+S
innovation & best practice
50% incidents
30%
(£120m by
2020) less energy
Top
Resource planning, operating model, capability development, good management
18

•
•
BT-Sport
•
4G Licences
•
•
Economic profile of GIS
• “Prove it” Leaders stand-up
• Space to lead
•
•
IT Provision
•
Firewalls / Security
• Power
•
• Customer Experience
• Right first time (RFT)
•
Faults and Cycle Time
•
• Education and learning
• ALP’s
•
Accountability
•
Performance boards

• GIS strategy: telling the story & making the connection to individuals (obj cascade, team mtgs)
• Leadership visibility – 52 leadership visits/events since GIS began; seen >20% of employees
• Leadership site ownership & building GIS communities
• Active communication for Q1 kick off. – e.g., 50% DC team attending roadshow Apr/May
• Methods for open dialogue: IM hour, listening sessions, team mtg attendance
• Pride of Patch
• Meet a member of FS SMT (650 engineers meetings in the month) . GIS Engineering days (35 members of GIS SMT), FLM & SMT events
• Listening to the people – working groups on FE irritants
• Space to Lead reorganisation – building clarity back into roles, especially FLM
• Leadership journey – led from top, People manager ALP
• New ALP launch in Field Services (April), Datacentres (May), and Energy & Carbon (May) .
• Promotion of take-up across the patch since Jan .
• People manager capability ALP – pilot in Field Services starting May
• Pioneers programme for FLMs – pilot in Datacentres starting in June
• Reinforcement plan for Lean / Continuous Improvement, to continuously build on initial successes and embed changes in ways of working & leadership
• Space to Lead – Field Services & Datacentres. Organisations progressing to achieve greater clarity. DCs building empowerment into the design process – involvement & interaction
20

Chris Pollard GM, Field Services Operations, TSO
GIS Forum 3 rd June 2013

 During Jan
– Mar 2013 there were 5721 call outs (c.1900 a month)

Of the c.1000 engineers in the TSO Field Services Power and Internal Switch &
Transmission work streams, 804 were on call out lists and were asked to attend a call out.
 High burden being placed on a small number of engineers resulting in potential health
& wellbeing risks and breaches to the European Working Time Directive

A vast number of phone calls and escalations have to be made in securing volunteers, which is disruptive during unsociable hours for engineers and managers involved
 Feedback from the engineering forums is that this is unfair and they support spreading the demand across all engineers

 There have been many major service outages over the last 12 months that took longer than they should have to resolve due to call out difficulties.

Two attracted significant media attention and were brand damaging:
• London Pimlico – Aug 2012 (during Olympics)
•
Issue : Excessive heat in the exchange caused switch equipment to fail
• Impact : Loss of resilience – same issue could have caused loss of service.
•
Call Out : Call out lists exhausted through not available / no replies. Escalated to GM level. Eventually got an engineer out after over 5 hours.
• London Bayswater – Aug 2012 (during Olympics)
•
Issue : Excessive heat in the exchange caused switch equipment to fail
• Impact : 30,891 PSTN end users were affected for 4 hours 41 mins
•
Call Out : Call out lists exhausted through not available / no replies. Escalated to GM level. Eventually got an engineer out after c.4 hours.
• With the launch of BT Sport and supporting TV offerings, any delay in fault resolution will have a significant impact to the business .


29% of Team Members are currently on formal call-out ( 63 on formal contractual &184 formal voluntary) with varying degrees of attendance & commitment
 Propose to have to 23% of Team Members (196) on formal contractual arrangements with 1-4 week commitment
 Monthly allowance of £296 for all those on call

Ensures we are WTD compliant moving forward as call out will be more evenly shared.
 A key customer benefit is radical reduction in engineer response time on outages by cutting current 5-7 attempts to achieving call out at 1 st response.
 his proposal means we can effectively future proof risk to our business.

Breakdown by Region & Function SOM patch
Engineers on 1 week in 4 SOM Patch
Switch
Scotland & NE
Midlands Wales & NW
London & East Anglia
South
FT Requirement
Transmission
Scotland & NE
Midlands Wales & NW
London & East Anglia
South
FT Requirement
Power
Scotland & NE
Midlands Wales & NW
London & East Anglia
South
FT Requirement
Total FT Requirement
16
24
16
24
80
12
12
8
12
44
16
24
16
16
72
196

 Currently under review

Need further analysis of potential impact of Radio to Cab & 4G

Will comeback in due course with proposals which will be based on addressing any foreseeable risk by future proofing via contractual OOH proposals


Seek volunteers for 133 from existing 252 pool
 If insufficient volunteers open up opportunity to remainder of 640 workforce.
 Thereafter look outside of Field Services to bring in people willing to work contractual call out.
 Consult and engage employees week commencing 20 th May

New arrangements to be in place by 1 st July 2013 in preparation for BT Sport launch

TSO Forum 3 rd June 2013

What's the issue?
• Engineering Roles in Field Services are not clearly defined.
•
There are 5 job descriptions that outline expectations of a D1, C3, C1 and B2 with a separate document for Power C3
•
These job descriptions are not widely acknowledged. Instead, engineers tend to see their role as specific to the workstream they predominantly work on. For example, Switch & Transmission and Radio & Rigging.
• Inhibits flexibility – people don’t want to move onto other work, and there’s a lack of direction to up-skill + no clear career path
• leads to strong feelings of unfairness – people resent training people of a higher grade. People feel they are doing work that is of a higher grade than they are, but difficult to make a case for promotion
•
No clear peer group comparators for identifying role models, high performers or those requiring extra support
•
Every workstream has engineers of different grades. Just in the three workstreams in TSO there is B2, C1, C2, C3 and D1 graded engineers
• Set out below is a table showing grade distribution of staff in each workstream:

Goals of the grading review
GOALS
Clearly defined agile roles with logical career path(s) through the roles/grade levels
• All engineers appointed into one of the new roles
•
Maintain or improve flexibility of deployment of engineers onto jobs (reduce resistance to what is currently considered non-standard work)
•
Effective governance process for new work / technology and promotion to higher grades
ROOT CAUSE ANALYSIS
• It was identified that some team members in the same workstreams but at different grades are completing the same work
• Engineers are recruited into the team or workstream with no change to their grade due to the lack of planning, ad hoc decisions and potential costs
• New work is taken on and given to teams with little or no thought to whether it is appropriate to the grade, or in line with a longer term plan
• Things which are done temporarily e.g. additional resource on a type of work to meet increased demand, become permanent, and there are no periodic reviews of whether current work-role-grade is appropriate
• Career paths not seen as a priority
SUMMARY
• Establish the appropriate grades for the work performed across Field Services and address anomalies
•
Create a fit between New Grid grades and future skill demand in Field (e.g. multi-skilling)

Our Approach
1 . Review current field position and address anomalies in Internal & Power Units
2. Review more complex grading arrangements within Radio and Rigging to ensure alignment with similar roles across
Field Engineering
3. Future proof Grading of Field Member roles with a clear link to agile working, Skills Demand & Personal development
• Introduce a structured process for recruiting and promoting people
• Develop a career pathway for MAs and other new joiners as well as existing staff so we can stimulate and develop talent
• Introduce structured development plans within each workstream and/or across workstreams

Timeline
15 April
• Socialise the high level plan with CWU followed by high level comms to the Field
April/
May
• Data collection via workshops and ride-alongs
• Involvement of SMEs (team members & first line managers)
• Insight into future skills demand
Mid-May
• Update CWU on Progress to-date
Jun
• Proposal for grading structure be based collected data, suggestions from SMEs & future demand
• Share with CWU by end of June
Aug
•
Proposal socialised with CWU & Key Stakeholders
• Mapping people into new roles
End of
Sept
• Communicate individual impact & contract changes where necessary
• Communicate transparent process about career paths. recruitment, MA assimilation etc.

TSO Forum 3 rd June 2013

Engagement is key…..
We Make Change Happen…….
Doesn’t sound a lot in Field
Service terms but it’s a huge
Lessons
Learnt from the Past!
Team to make transformation happen
Create a High Performing Environment
Governance …..
Know your numbers
Insourcing ?
… to meet our Care targets
…. And celebrate
Our Successes !!!!
Projects shift left throughout
The year showing progress
Who is doing what and when…Accountability
Delivering a sustainable all
Involving transformation programme
Such as TV’s ..
WOW!
L2012 is over and we should all be proud of the success achieved on what was an incredible and challenging journey for TVMC. We used the planning phase to look at ways to improve the “as is” in order to deliver a flawless games for BT.
Has this triggered any new ideas or suggestions you have for a Good2Great improvement project? Email me at kirsty.kidd@bt.com
, or register your idea via our new ideas portal.
WHAT’S NEW?
Lean Preparation Project led by Jamie Olver and sponsored by
Jody Shaw: TVMC are scheduled to be part of Lean Wave 4 commencing around Q4 2012/2013 (Dates still to be confirmed by the central Lean team). This preparation project is to ensure that by the time the Lean Wave commences, TVMC is fully prepared to hit the ground running through having a clear and focused strategy and agenda, enabling the unit to realise the maximum benefit from day 1.
Field & EIPB
SLA Standardisation and customer reporting Project led by James
Cunningham and sponsored by Jim Harvey: Leading on from the
Trouble Ticketing Project, this project will review o ur contract obligations and look for commonality to reduce variations and improve reporting capability.
We’re looking closely at starting new projects to cover the
Olympic Legacy work and the 2 nd
Phase of the Carbon Footprint
Reduction Project. Are these projects a priority for you? Is there something we need to be addressing sooner? Contact me with
your thoughts.
WHAT’S ON?
Trouble Ticketing Project:
Technical Talent Pool:
Congratulations
In July an informal
Good2Great recognition lunch event was held at the BT
Tower. Please join me in congratulating the following teams on a job well done:
“Well done to the Project Pride team led by Paul Double and sponsored by Jane
Swift; Paul Cumber,
Jody Shaw, Chris Hislop and Pat O’Hara”
“Well done to the Lean
Pilot team led by Saileh
Varia a nd sponsored by Jane
Swift; Jody Shaw, Paul