Strategy & Service Introduction

RoadshowOverview

The story so far

BT Tower pilot Bristol Birmingham [2]Adatstral [2] Edinburgh Faraday[2] Cardiff

Sevenoaks Leeds Adastral [2] Brentwood Newcastle Adastral [2] Baynard [2]

Helston Baynard [2]

MK

NovemberOctober JanuaryDecember

Seen 207 487 626 705

What key message did you take away from today?

We need a large change in the way we do things. There are positives that things may actually.

change for the best. Would be great. Sense of direction and empowerment. Don’t provide reams of evidence for

performance. Good discussion with Dave + senior team. We’re all involved in delivering the required

changes. A new direction, more customer focussed. A clear view of the issues facing us and I look

forward to how to make this happen. Change is needed. But needs to be done correctly Don’t accept continued working with broken

processes. Take responsibility, recognise your influence and

make a difference. S&SI values the opinions of people who work

here. We can all help make it a better place to work.

The Purpose of the Roadshows

The Purpose of the Roadshows

To ensure we all have same understanding of current position of BT and future strategy

To explain what this means for BTO How this impacts on us as a unit What this means for you What you think needs to change To seek your commitment to the journey ahead

Our Achievements

E2E Test ITT

74% reduction in

Test off-shore costs

Fibre Exchange strategy created

Renewed our ISO 9001 certificate

Introduction of PLSD

achieving 15% reuse in

first 6 months

We created the PSIM role

C2M pipeline 100%

underpinned with RFT and

P1 targets

We play a central role in

shaping Operate 2014

Better early life cycle

engagement Eg BPMS &

MEAS

We’ve had some great

Challenge Cup teams

Developed the OLAs to

support London 2012

Achieved 345 professional

accreditations

We run the Operate wide

CAPEX demand

assembly and Star Chamber

We’re Operate’s

business and architectural advisors on

21CN and 20C PSTN sustain

£11.8m opex savings, 5176

servers de-commissione

d and 54.8 Gwh/a energy

reduction

Helped Operate

complete its ‘unfinished business’

IT Capacity Driven

outages driven down

by 98%

90% reduction in

P1sMore than

200 contractors replaced by

BT CTC

40% reduction in

server provision

times

1000 FTE benefit

delivered across

Operate through PRE

and Automation

80% are Male20% are Female80% are Male

20% are Female

A changing organisation

Between us achieving 345 professional

accreditations over 3 years

Between us achieving 345 professional

accreditations over 3 years

With 179 home workers

With 179 home workers

And 17% Team Members

And 17% Team Members

We’re spread across 154 BT UK

Buildings

We’re spread across 154 BT UK

Buildings

83% Management(48% BB1, 45% BB2,

5% BB3)

83% Management(48% BB1, 45% BB2,

5% BB3)

Represented in 6 countries

Represented in 6 countries

45% of us are over 50

45% of us are over 50

But only 3 individuals are

under 25

But only 3 individuals are

under 25

There are 6 Doctors in SSI

There are 6 Doctors in SSI

And finally the most popular name is

David

And finally the most popular name is

David

FTE & extra bubbles

48 of us have given their time this year

on volunteering activity

48 of us have given their time this year

on volunteering activity

And over 200 of us are based in

Adastral

And over 200 of us are based in

Adastral

With an average Length of

Service of 24 years

With an average Length of

Service of 24 years

Where are we - 2011/12

You said

There’s too much paperwork to complete to

get anything done

We need more empowerment if we’re going to be agile and

entrepreneurial

We’re spending too much time driving broken processes

We wasted time waiting for McKinsey’s output

Everything we do is too complicated and political

No chance of contributing to core targets because we’ve been put

in roles/projects that don’t fit the norm

I feel empowered to make decisions

irrespective of my grade

I now have the tools required to do the job

I work in a supportive team where we all

respect and help each other

I have a great manager

Performance management gets in

the way of everythingI love working for BTToo much work, too

much pressure, stressed, frustrated

What our BT stakeholders have told us

I value the bid input you

deliver

Setting and aligning on priorities

Focus and drive to get better C2m process.

VDC the process is

tricky

Timely Introduction of new products and services

Drive more urgency in BT

overall is needed.

Front door in terms of aligning all resource elements. Again big

step up needed.

Testing. We need to step up (think of Accenture reports)

We need to improve is in

the VDC environment

Think E2E

ensure business process and operational

procedures are drafted .

Do what is right for BT and not (just) BTO/SSI.

include architectural documents in

process delivery.

Say No

Improve non functional

testing and test environments

Coordinate – Non functional releases through testing and

into deployment

Improve MDSO engagement

and ownership

Proactive engagement in requirements and

raising issues much in advance of the launch

Engage with the line operational folks impacted by your

work/delivery

what is SSI?

Alignment with BTID

I appreciate the willingness to

work together to solve problems

.

I value the rigour that BTO

bring to the testing process.

availability and performance of test environments has been the Achilles

heel

I would like to see now is strong programme

management in the execution

Close coordination of

large and complex releases

.

BT and Operate 2014

A

C

B

D

SSI is BT Operate’s Engine for Generating BTs Future Growth

• Understand future demand and match with capable resources

• Continuously improve the C2M process to exceed time to market expectations

• Architect lean processes that maximise customer value add and are waste free

• industry leader in test/unit cost • Rationalise our computing and

exchange estate • Go beyond the needs of our internal

clients • generate increased capacity to

insource future work.• Create a people agenda where SSI is

recognised for people excellence

Our priorities

Reduce Cycle time of our core processes by 50%

Improve our productivity and thereby reduce unit costs by 50%

Grow external customer satisfaction by 5 points

Make BT Operate the partner of choice for the MFUs thus halving external market share

Create a superior employee experience

…delivering services that delight our customers

…cutting out complex process making the way we work simpler and more straightforward

…making S&SI a great place to work[after all there are only 700 of us] working closer together, better line management, and pride in what we do

…becoming easier and straightforward to do business with

This means…

…reusing what works and automating the low value repetitive stuff

1. Become easier and straightforward to do business withMake BTO partner of choice for MFU’s thus halving external market share

Redefine how BTO manages complex bid delivery.

Commercialise customer management

Drive Prime contractor model

Test as an external Product

Making the Front door invisible

2. Delivering services that delight our customersGrow external customer satisfaction by 5 points

Drive technology strategy based on user operability

Get customer connected-“Go See” across the whole team

Communicate BT performance and customer complaints

Sample our internal client satisfaction with what we do

3. Cut out complex process and make the way we work simpler and more straightforward Reduce cycle time of S&SI core processes by 50%

Apply lean across the Unit processes

C2M lite and driving re-use

Re-shaping processes and automation of standard provision of IT

Models to drive demand to supply conversion of customer demand

4. Reuse what works and automate the low value repetitive stuffImprove S&SI productivity & thereby reduce unit costs by 50%

Operate great test factories E2E review of waste in C2M

delivery IT Provision automation

and tools Drive re-use of code and

processes Production Management

Automation

5. Make S&SI a great place to work and pride in what we doCreate a superior employee experience as measured by EEI>4

Creating a Professional Services orientation

Make sure you know what is expected of you

Manage ourselves and our people more effectively

Develop talent & maintain your focus on skills enhancement

Follow through on actions

The work we do is very similar to a Professional Services organisation and there are some things we can learn from them…

Minimal time spent on tasks that the end customer would not pay for

Differentiate ourselves from our competitors at all points in the journey

Right people, right roles, high standards, continuous self-development

Success based on customer outcomes

Lots of time spent on internal governance, rework, politics, reviews

Keep up with our competitors and cut costs/corners wherever possible

Make do with the team you have, 50% skills matching, job standards

Success based on internal measures not well-aligned to customer success

BT PS

BT PS

BT PS

BT PS

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10

1 2 3 4 5 6 7 8 9 10Our

Focus

Our Measures

Our Team

Our Standards

Lean Service Behaviours – an overview

Having the right mindset Organising our people and developing their skills

Managing our performanceMaking processes more efficient

•Using Lean Service tools to get rid of waste and make the process better .

•Assessing how we're performing

•Sharing what you know about how to get things done in the best way

•Getting better yourself too•Helped by senior leaders who make sure we have everything and everyone we need.

LISTENING TO OUR CUSTOMERS

•Always looking for better ways of doing things.

•Taking responsibility and feeling bold enough to try new things.

•Learning from mistakes and looking for feedback.

Ensuring we have set clear ways of doing things so that we know what's expected and everyone can measure how they're doing.

Understanding what the customer needs and making improvements to enhance their experience of BT.

Understanding what the customer needs and making improvements to enhance their experience of BT.

18

Next steps

• Turn our priorities into mile-stoned plans• Action feedback from today• Agree priority barriers WE need to overcome and how we

will do that• Improve communications on progress and plans• Your commitment

Strategy & Service Introduction

Questions?