1 Union framework

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 The story so far…

3 Key Differences - BTO Lean Service to Continuous Improvement Mobilisation Planning (8 wks) Mobilisation (3 wks) Wave Execution (16 wks) Wave Execution (16 wks) Wave Benefits (4 wks) Wave Mandate (3 wks) Wave Execution 12 weeks Wave Mandate Wave Mandate Mobilisation Post Wave Implementation Phase Implementation Phase 8 weeksOn-going4 weeks Continuous Improvement Lean Service Post Wave (On-going)

4 The bigger picture?? -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 Performance Health CI is co-sponsored by Transformation and Group Learning – delivered through the Academy and aligned to Organisational Health and the new BT Values

Time Customer Cost 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 Cost Our financial goals We'll be able to use Lean, Change and Six Sigma methodology to help us meet our financial goals. 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 3 objectives of Continuous Improvement: This is about how we improve things in BT for our people, our customers and our business

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. 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. 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. 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. 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 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. 6 How do we deliver these objectives? 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. 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. “BT Way” Continuous Improvement Customer Focussed Empowered People Solving problems as a team Getting value from processes Performance Dialogue Managing Capacity 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 what it takes to improve. 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 what it takes to improve.

7 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: Establish customer focused performance dialogue and team based problem solving Establish customer focused performance dialogue and team based problem solving Understand and drive value in the value stream Understand and drive value in the value stream Manage capacity and implement enblers for implementation Manage capacity and implement enblers for implementation 12 weeks Wave Mandate Wave Mandate Mobilisation Post Wave Implementation Phase Implementation Phase 8 weeksOn-going4 weeks Continuous Improvement Wave 4 weeks

Customer Focussed Performance Dialogue 8 We will establish performance dialogue and team based problem solving for the benefit of our customers We will establish performance dialogue and team based problem solving for the benefit of our customers We will understand and drive value in the value stream We will understand and drive value in the value stream 4 weeks We will be better at managing capacity and making improvements continously We will be better at managing capacity and making improvements continously 4 weeks We will create great performance dialogue We understand today and know where we want to be tomorrowWe will solve problems at all levels of the organisation As we understand our processes we review capacity planning and how we set job standards and objectives And prepare for longer term BAU Empowered people Team Based Problem Solving Process Value Managing Capacity The 12-Week wave - What can I expect to happen during each phase?

9 Questions