BTID Transformation Briefing to BTID Transformation Briefing to CWU ExecutiveCWU Executive

© British Telecommunications plc

Agenda

• Welcome • BTID transformation journey• Right people - resourcing• Right place - collocation• Next Steps• Managing change together • Questions

© British Telecommunications plc

BTID Transformation plan

• We have a significant gap (30%-40%) to our competitors in terms of headcount and as a result cost.

• Over the last 3 years we have made significant progress but so has the competition.

• The gap has closed but there is still a lot to do.

• We have five elements in our plan, designed to deliver change at pace:

Our transformation plan:

1. Doing the right thing

2. With the right people

3. On the right platforms

4. With the right partners

5. In the right places

In Q4 we plan to focus on people and places…

• Making good progress against plan• Major focus on displacing agency/subcontractor resource with

direct labour• Additional focus in Q4 – paid leavers scheme*

*(business case for additional paid leavers being reviewed)

BTD 2010/11 Resource Plan – P8 Actuals

Planned Acquisitions

Full Year P8

Total External Gains 262 137

• Graduates/MBA 10 10• Skills Acquisition 252

127

Forecast Exits

Full Year P8

Total External Exits 888 387

Paid Leavers 395 108Other Losses 493 279

FTE 31/03/10 FTE 31/03/11 P8 (ytd)Direct Labour 8,558 7,904 8,224Agency 283 140 207Sub-Contractor 8,897 7,348 8,297Total 17,738 15,394 16,728

FTE 31/0310 adjusted for org moves, 31/03/11 latest QRF3

The right people - resourcing

Why do we need the BTID Transition Centre?What does it do?

• The transition centre is about meeting BTID’s resourcing challenge as it changes to meet future demand.

• The size of the resourcing challenge makes it more important than ever for us to pull together across BT to resolve redeployment cases quickly and effectively.

• The BT Transition Centre (BTTC) is the place where BT people find new jobs and learn new skills if, for whatever reason, their old role comes to an end and within BTID we have a great track record of finding people new jobs.

• Performance to date

09/10• 660 moved to BTID TC• 26 remaining at end of fiscal year• Average resolution time 68 days• 80% resolved in 28 days

10/11• 443 to date• 239 resolved• 128 active• Average resolution time 77 days• 80 % resolved in 43 days

BTTC Resolution highlights

• 127 resolved within BTID• 77 resolved to other

LoBs• 25 paid leavers

• Speed Matching• Software Development

Centre• Subcon/agency

displacement• Upskilling programme• Paid leavers

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• A key enabler to improving quality, time to market and cost effectiveness is increased collaboration across our teams.

• Through collocation we plan to create effective working environments to harness the skills of all colleagues and encourage increased collaboration.

Benefits for BT• Delivering a world class global service for our customers• Driving greater ROI from investment in GDCs• Making the most out of our accommodation and maximising value of fixed costs• Improvements in cycle time and increased accuracy have been tracked by teams working in

GDC environments - this all helps us improve customer service

Benefits for our customers• Improved RFT & CT• E2E problem resolution• Improved facilities to use on-site and easier to work with our teams

Benefits for our people• More opportunities to connect with your team, manager and colleagues• Enables team capabilities to be built more quickly and strongly• Solving problems more quickly• Processes and relationships become simpler when teams are collocated• Address feelings of isolation among our colleagues

In the right places - collocation

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Principles for collocation

• Site by Site, role-based approach to collocation - agile working and collaboration

– Identify in scope people and the roles they perform

– Agree relevant location with each programme - by business need

– Work with resource management to map roles to locations

• Options available to support people through the change where appropriate:

– Relocation

– Re-training

– Redeployment - Transition Centre

• Future recruiting only to relevant site• Incorporate lessons learnt from Operate & Openreach similar

schemes and from our own Global Platforms GDC roll out• Two-way communication and involvement throughout

Who, when, where...

7

• All BTID UK employees - excluding ICT and location dependent Network staff who are subject to separate consideration.

• In scope currently 7028 UK staff in 200 locations. 4707 excluding ICT and location-dependent Network staff.

• Collocation to our 27 strategic locations

• Of the 4,707 UK employees in scope; 1,183 are in a top 4 site; of the remaining 3,524, 743 are within 20miles:

NB The site list is subject to review as part of bau BT property strategy

City 3 months 6 months 9 months

Belfast      Glasgow      Ipswich      Cardiff      

Edinburgh      Sevenoaks      

Milton Keynes      Swindon      Bristol      Exeter      

Leavesden      Newcastle      

Leeds      Bolton      

Liverpool      Macclesfield      

Leicester      Wolverhampton      Harmondsworth      

Southampton      Reigate      

Brentwood      Colchester      

Fleet      Shrewsbury      

Sheffield      

London      

Define GDC based roles

Define GDC sites to be used

Is the role one to be based in a GDC?

Is the person within reasonable travel distance of

a GDC site?

If HW give 3 months notice of move

If OHW or office based, move immediately

Is there a valid business case for removal of home i.e.

critical skills or talentCan we do a swap?

Resolve surplus via BTTCIdentify backfill at GDC & resolve

surplus via BTTC

Is individual prepared to move?

Identify backfill at GDC and resolve surplus

Move

Yes

Yes

No

Yes

No

No Yes

NoYes

Collocation decision tree

Managing change together

• What you can expect from me and my team

– Working in collaboration with Prospect & CWU

– Be honest and tell you as it is

– Continue to develop further our detailed plans

– Keep you informed - regular updates

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Questions?