Simi Dubb Head of BT Group Talent Management June 2011 Building Future Leadership - delivering seamless career development and succession planning Simi Dubb Head of BT Group Talent Management June 2011

Principal Lines of Business BT Retail BT Wholesale BT Global Services BT Innovate & Design Openreach BT Operate Group Functions One of the world’s leading providers of communications solutions and services Principal activities include networked IT services; local, national and international telecommunications services; higher-value broadband and internet products and services and converged fixed/mobile products and services Annual turnover of about £20.2 billion A FTSE 20 company Over 100,000 employees Operating in 170 countries

Purposeful Deployment Retention & Engagement Talent Management BT Board very engaged around talent Concept of talent management well-understood Talent identification process well-embedded Talent integrated in business and HR practices Regular reporting and benchmarks Purpose is to: Develop business leaders for Leadership Team positions Drive diverse representation within the leadership population Increase retention of our high potential people Integrate talent practices into the way we do business Identification Purposeful Deployment Development Acquisition Retention & Engagement

BT’s Talent Pool structure OC and Group Functional Directors executive level direct reports Leadership Teams Potential Leadership Team Successors Group Talent Pool Rapid Higher Potential Emerging Talent Graduates Fast Track MBA’s Talent Entry Channels

Progress but more work to do…. All Leadership Team roles filled through the Group Talent management process -34% turn over in roles -17% promoted 81% of all appointments into Leadership Team roles were from the succession plan Improvements in gender and diversity mix Greater pull through of women at senior roles High cross fertilisation of role moves -17% of executives moved roles of which 41% moved cross LoB High engagement and low attrition -Talent Pool more engaged than BT population -Talent attrition at 4%, lower than external benchmark

Our talent is telling us… Career progression remains a priority Better sight of career opportunities, increased LoB moves and training and development will improve intent to stay Indicators demonstrate a correlation between career transparency, engagement, intent to stay and actual turnover Need to create more of a partnership with talent and business Need to listen more and respond proactively

Building foundations for change Talent management = career development Business drivers Develop capabilities in leaders who can deliver the business strategy today and tomorrow Culture where career development flourishes CEO led succession planning Career discussions LoB Senior management Career Review Forums Partnership between the individual and organisation Talent deal Transparency – clear alignment between talent pool, succession planning, senior appointments A network of career supports Talent engagement strategy Distributed accountability model Tools and Processes Appointments process Talent database Reporting

Below Executive vacancy Appointment process Long-list Short-list Executive vacancy Group Talent team identify candidates Candidate(s) approached Succession Executives Talent Pool Individual aspirations & Skills Role sizing Interviews and appointment Circulate to Talent Below Executive vacancy Identify as role for Talent Talent apply Role Vacancy provided to central team Hiring Manager promote role to FTs via weekly call FT and MBA vacancy Fast Track / MBA apply

Challenges Consistent approach without being centrally managed -discipline, decisions, communication Common understanding of roles and individuals -role sizing framework Buy-in from line management -endorsed by OC, quality matches, regular reporting, transparency Short term LoB needs vs long term organisation needs Global experience

Our focus Improve career brokering across the talent pool, slickness of movement, and transparency Improve understanding of roles cross LoB and talent experience gaps to match Increase international movement/experience Develop a global approach