Lean – Journey So Far on Pilot & Teams in WAVE1 Lean Service Pilot Lean – Journey So Far on Pilot & Teams in WAVE1

Our commitment – 1st Target State & Improvements 7th October Careagile EEI Dec Survey – Greg Clark Overall -3.66 for PS’s team Pilot (6 teams) – 3.83 Ambers due to Very close to 39 FTEs – only 2 short, the January actual figures will give more confidence and we have 4 improvements due to deliver in March 168 improvements on log – so 36 new ones added since the start of the pilot 69 improvements closed so over 50% of the 132 agreed at redesign week OEB measures developed at the start of implementation with Mark W measures in development , Chris B working on Pete S measures cascade down from OEB VoC AHC held on 8th Dec after the lean assessment survey. With the plans Richard F as been working with Chris B – confident that this score should increase Multi skilling – end of dec will achieve 83% of the 60% planned…so confident will be able to complete in january Having the right mindset Organising our people and developing their skills Managing our performance Making processes more efficient Listening to our customers Cost to Serve (for product & for delivery) to enable 100% cost recovery 40% to 80% A1 measures VoC Driven Measures, Performance Boards Lean Diagnostic Measures – uplift by 1 Local Improvements – saving 170hrs/week Predicting 600+ hrs (Step Change) Lean Diagnostic Measures – uplift by 1 Mean Cycle Time - 3 day Reduction Standard KCIs Standardise Escalation Process Lean Maturity Measures – uplift by 1 Coach team to deliver agreed improvements 50% management time Role model behaviours Lean Diagnostic Measures – uplift by 1 Careagile Lean Behaviour Index uplift by 0.1 60% multiskilling Triage at front end 4 flows/Production Managers in place Lean Diagnostic Measures – uplift by 1

Listening to our customers What did we do - LWoW Created 9 FLM plans to implement LWoW across 5 lenses This has been a change to how the 157 people work differently with a lot of focus on what FLM teams do. Some very good examples of problem solving with team members supported by change agents (tails reduction in Manchester, £250K reduction for ASDH and PDH) – the team have learnt problem solving skills…basis for on-going continuous improvement They review their performance boards every day (including when their manager is not around) – taking it in turns to talk about different parts In Nov, the T2 were confident enough to run re-enforcement workshops…demonstrating that they believe in the change and want to ensure their teams are on board Skill matrix enabled the multi skillimg plan for flow/TC1 – so already used… Having the right mindset Organising our people and developing their skills Managing our performance Making processes more efficient Listening to our customers Created Team Performance Boards Introduced daily huddles to review Team Boards Coached and encouraged team members to own and present parts of their boards Reviewed progress on Improvements. Identified different ways of working and agreed a common way (SOPs developed) Worked on the improvements using A3s and problem solving techniques. Understood how to identify and realise benefits. Began to push back on non value add activities. Questioning why? Talked to customers & created an open dialogue with BTW Set up regular dialogue with MFUs (BTW & GS) & our teams Set up regular dialogue and review with internal customers Coaching by operational change agents Worked on improvements within teams Understood Lean Behaviours through workshops T2 led re-enforcement workshops and activities. (paper plane) Produced critical lean based roles defined to reflect in people’s JDs. Team members buy into the programme though engagement Produced our skills matrix as to who can do what and made it visible Identified training requirements Implemented a training plan with time lines. Coaching T1 and T2 to help them develop themselves and there DRs.

What effort did it take & what difference did it make? What difference has it made– Journey so far: Sense of ownership – fixed issues as they came up for TC1, people in teams driving the change People led problem solving (e.g.: Tail being managed – less than 10% in one team) People say pull way of working is a less stressful Team engaged – seeing more people engagement people & still a lot to do; Good buzz - teams doing things differently Cross working across all levels (T3s, T2s , T1s and across teams) £250k per quarter cost saving for using ASDH instead of PDH Positive impact in other areas (e.g.: reduced truck roll on OR, reduced jumping time in Field, reduced job control effort for voice) Shaped lean for other waves We are very proud as have done something tremendous…...

Next Steps in the Journey LWoW within all 9 FLM teams – further develop & consolidate learning; Implementing TC1 outstanding activities eg T2/T3 Performance boards, Governance, integrate other teams within pilot, etc. Continuing to work on improvements; VoC and developing customer driven measures; Building in re-enforcements & rewarding lean behaviours Developing a sense of pride as Wave 1 Teams visit us; Going for Bronze Accreditation for all teams in February; Planning, designing & implementing TC2; Making sure we understand cost per order across each flow; Integrating our key partners (Openreach) in lean way of working.

Job Satisfaction Survey End of Pilot Results – UK Data

Job Satisfaction Survey Key Measures – Post Pilot v Pre Pilot

Post Pilot Summary v Where We Started (only 16 weeks ago) 45% of the UK Data population completed the survey 32% of the population completed the survey 95% included their names and asked to be involved in the results 75% included their names and asked to be involved going forwards 96% have the opportunity to work with colleagues to solve problems 71% have the opportunity to work with colleagues to solve problems 93% responded positivity to getting a sense of achievement from their work 64% responded that it was only sometimes ( a sense of achievement ) 100% responded that they always or mostly had clear targets at work 52% responded that they always or mostly had clear targets at work Taking your job as a whole do you enjoy your work or not? – 100% responded I quite enjoy it or I enjoy it very much Taking your job as a whole do you enjoy your work or not? – 85% responded I quite enjoy it or I enjoy it very much 86% answered Very Well that they think their skills and knowledge are used in their present job, 60% answered Very Well that they think their skills and knowledge are used in their present job, 100% wanted opportunities to develop their skills and 86% said their skills were used very well 84% said they wanted the opportunity to make friends at work 93% said their manager spends time with me discussing my work 35% said their manager spends time with me discussing my work

Verbatim comments How could your job be made more satisfying and enjoyable REMOVE THE BEAN COUNTING AND ALLOW INDIVIDUALS TO WORK TO A TOP QUALITY STANDARD WITH CONTINUOUS IMPROVEMENT THAT HAVING THE TIME TO DO SO WOULD ALLOW IMPROVE THE QUALITY OF JOBS ARRIVING IN TO PLANNING FROM THE FRONT END OR OPENREACH EXTERNAL Less emphasis on widget count. I believe management do not want to understand the difficulties this causes. A real change in attitude from management to include and involve all rather than just discussing key issues with favourite people have the soul responsibility & be clearly measured against team targets to deliver an order or multiple orders/products through from start to finish without having to pass it on to someone else. Wider ownership of everything relating to the delivery of service to a customeer or project, along with the necessary budget control and influence ove the supporting platforms. Managers of teams need to manage their teams .They spend far to much time on other duties which detracts from help the team to grow and improve customer service.We need to stop the top down delegation that damages our business moving forward to success Suitable training-prior to needing it The relience on a base system connected to others to carry out planning, instead of the multitude of systems used at present... 21C has added a further 4 to the list !!!!! MORE RECOGNITION - I THINK FLMS ARE LARGELY OVERLOOKED AND TAKEN FOR GRANTED - VERY LONG HOURS AND LITTLE OR NO DIFFERENTIALS IN SALARY ETC. better training when taking on new roles and responsibillities such as job shadowing existing planners.

Verbatim Comments – Cont. What do you like most about your work Varied Role in Process and Operations Working over the whole job from start to finish people, and the desire to change things for the etter, and to enhance the long term prospects for the business Good teamwork a good work atmosphere and a chance to deliver service to the paying customer obtaining job satisfaction in delivering orders The challenge to think outside of the box & resolve issues. working with other people to do this. people i work with The people and the can do attitude as when asked they always do everything in their power to meet demands. So in short it is working with engaged people. Woring with people, sharing knowledge and experience, seeing service delivered. people, and the desire to change things for the etter, and to enhance the long term prospects for the business delivering a variety of products with some multiskilling end to end Variety and working with people in particular on Lean pilot - new & setting the theme. BEING ABLE TO DO THE WORK TO THE CORRECT QUALITY IF GIVEN ENOUGH TIME TO The ability to influence change for the good of the affected team or Business unit Meeting new people and being involved at the front of a big change - making a real difference Interaction with people and seeing a job completed through combined efforts

Verbatim Comments – Cont. What do you like least about your work Some people seem valued more or less than others having to continualy send in escalations due to activities not being completed on time Customer calls and lack of understanding from customer management restrictions HAVING TO CHASE UP OPENREACH EXTERNAL PLANNERS (MANY OF WHICH DO NOT EVEN PUT THEIR NAME ON COSMOSS) WHO HAVE PUT INSUFFICIENT NOTES ON COSMOSS OR FAILED TO DO THEIR JOB CORRECTLY - SUCH AS INS WORK + YCODES Employee reviews too frequent The targets we have do not reflect how we perform in the customers eyes.Also not being able to fix an issue due to BT internal politics.We need to step back and understand what is important to the customer and then build on this. Trying to work within an environment where the orgainsations within a business are not focussed on the same business goal, particularly when there is too much effort focussed on atificial internal business constraints. The politics sometimes. I do like to get things done. I do understand things need to be done in the right way, but sometimes change seems to take an eternity to happen having to make travel plans at short notice - I like to plan but saying that I can usually accommodate plans at short notice Nothing really. handing off a job i could be trained to do myself PERFORMANCE MANAGEMENT

Learning and comparison Real change has happened for this sample group we need to ensure that effort is rewarded and no “return to old habits” is tolerated Can we make the role more challenging with out adding lots of stress Make sure targets reflect customer purpose without excessive measurement Ensure gains made are sustained Ensure that team working becomes standard practise Future changes should reflect wanting a bigger sense of achievement More allowance for initiative and decision making Greater team working and getting involved in improving things Opportunity for more inter-team working Ensure people are involved in what happens next Sustainability is the biggest challenge – Accreditation opportunities should be swift and actionable