Lean Service Change Agent Briefing Sheree Lacy Richard Foxall Paul Stokoe Thursday 18 August 2011

Agenda for today’s call Lean Service What is Lean Service? Vision for Lean Service Lean Service Pilot High level execution plan and timeline for Lean Service pilot Pilot scope and key role map Change agent role Your role as a successful change agent What’s in it for you? The commitments needed Change agent training Change agent pre-pilot training plan Change agent bootcamp plan Pre-work for change agents prior to the bootcamp Training next steps Q&A

What is Lean Service? Lean Service is a different way of working  with the customer at the heart of everything we do.   It means efficient processes where work flows smoothly with no waiting, no queues, no waste or duplication.  People are involved in both managing and improving the processes they work on and the organisation supports this. This is not a short term programme but a long term goal which requires that everyone, everyday, thinks and acts differently.   We find better ways to do things using proven methods and simple tools whilst making Operate a better place to work.

Listening to our customers Lean Service vision Having the right mindset Organising our people and developing their skills Managing our performance Making processes more efficient Our processes will be visible and accurate with no waste or defects. Everything should flow through the process so there’s no queuing or waiting. We meet our customers expectations because our processes are predictable and in control. We‘ll organise and develop our people so they perform at their best. Listening to our customers Everyone improves how things work better by using problem-solving methods and tools. Every manager will spend time with their team to understand how things work and coach them in how to make things better. We will be measuring ourselves against meeting our customer commitments and the business costs involved. We make sure our performance against expectation is visible to everyone and as a team, we decide on how we can improve the way we work. Our customers will be at the heart of everything we do. All processes will start and finish with the customer. And everyone will understand how their contribution helps us meet our customer expectations and make a profit. SOURCE: McKinsey

Lean Execution: High Level Plan w/c 1 Aug 8 15 22 Aug 30 5 Sept 12 Sept 26 Sept 10 Oct 17 Oct 28 Nov 19 Dec 16 Jan 30 April 23 July Change Agents Selection for Pilot Free Change Agents for Pilot 26/08 Induction 30/08 Induction 05-09 Pilot Lean bootcamp Pilot (16wks) Wave 1 Rollout (16wks) Benefit Realisation (12wks) Base-lining DILOs and assessments (non pilot areas) Finalise Wave 1 Domains Finalise Wave 1 Rollout Plan Select & Free Change Agents for Wave 1 Wave 1 Lean Boot Camp (3wks) Pilot Rollout

Order Submission on COSMOSS What area have we chosen for the pilot? …the Private Circuit L2C Process PPC 20C Order (eCo / CRF) Order Submission on eCo Order Submission on COSMOSS ABDB15 Customer Agree costs and advise customer ADBD16 Openreach Fibre Planning Job Control(CMC) Openreach Access Delivery Initial planning Review Final BTO Planning Routing Openreach Fit & Test Config Order Complete ABDB16 Customer Order Handover ABDB16 Order Submission BTO Howard Ambrose Planning Phase BTO Martin Hull Routing Phase BTO Simon White Order Completion BTO Howard Ambrose Denis Rankin Job Control Simon Warren Job Control Jay Patel Job Control Martin Geraghty Job Control Andy Leaver Planningv Alex McGhee Planning Bob Peck Planning Richard Ware Routing Gillian Calvert Routing Peter Walter Routing Rationale: Best E2E flow currently within any area in SD Strong sponsorship from Pete Stewart & team Opportunity to take out quite a lot of waste from our processes

Pilot Approach As Is Implementation To Be Sep 12th 2011 Dec 17th 2011 To Be Process Map(s) per flow developed Repeat every week per process (Process Owner plus managers involved in each process) Executed by operational teams, coached & supported by Change Agent(s) Sponsor Reviews (every 4 to 6 weeks) Routing By Walking About to capture what is actually happening in each process Standard work defined Review if 1st Target Condition met, take learning into setting 2nd Target Condition Value Stream Map created Initial improvement ideas captured, prioritised and owners assigned Ideal State Defined Identify & mobilise new improvement opportunities Problems verified and plan for improvement created Review Process Performance Gather process performance management approach New improvement opportunities & progress of existing ones New improvement opportunities & progress of existing ones By Process / Generic 1st Target Condition for each Process by Lens Improvement Log (per Process) By Team Performance data Repeat every week (via team meeting) Lean Maturity & Change Agent withdrawal assessment Gather organisation and management performance approach 1st Target Condition for each Team by Lens Standard work defined Standard procedures documented Identify & mobilise new improvement opportunities Review Team & Process Performance Review if 1st Target Condition met, take learning into setting 2nd Target Condition Executed by operational teams, coached & supported by Change Agent(s)

Lean change agents – the foundations of a good change agent Confident and willing to learn Willing to make a contribution to improve the situation Ambitious regarding his/her own career path Displays confidence and courage; can defend own perspective and support it with data Confident to challenge behaviour in sponsors and targets to impact the programme Successful personal and organisational history Comfortable with giving and receiving feedback Passionate Able to implement improvement ideas Tailors communication to the audience and builds consensus through fact based discussions and common goals Completer/finisher Enthusiastic about applying Lean techniques in different environments Success and credibility with key sponsors Trust with key targets Sensitive to human aspects Aware of the human challenges in every improvement project Behaves professionally Inspires (senior) line employees to create their own action plans and achieve results independently Is comfortable with working within a team environment Belief in the project Ability to translate the Sponsors frame of reference (FOR) when talking to the targets Strong problem solver Rigorous and clear in descriptions Can independently structure, analyse and synthesise findings with minimum coaching Pragmatic and action-oriented Awareness of culture and subculture differences Comfortable with some level of ambiguity Trained and some experience Trained in Lean and/or Work-Out Plus with some experience in implementing process improvement projects – not essential Recognized as a leader and or coach in their area Knowledge-able Knowledgeable about products and processes Ability to recognise resistance and develop plans to manage this Knowledge of the business unit and strategy 8

What’s In It For You as Change Agents? Lead the change Help build your team Learn new skills Work with new people Raise your profile Fix problems / get to the root cause Work in a different way Improve what we do for our customers As we move through the pilot, we want to involve you in defining our recognition approach for the change agent population

Your role as a successful change agent… To lead, educate and support the implementation of each Lean Intervention: Lead: Defining the milestone dates (in conjunction with the Targets), putting in place the controlling governance, encouraging and tracking progress and benefits of the Intervention and individual improvement projects. Working with the sponsor network to ensure obstacles are removed. Providing regular management updates. If necessary acting as the project manager. Educate: Teach and coach the Targets the relevant tools and techniques. Often initially leading by example and then ensuring the teams are able to perform the tasks for themselves. Validating that they are correctly applying the relevant tools and techniques. Working with Targets and Sponsors to sustain the changes and ensure continuous improvement. Support: Provide structure, challenge and assistance to help the Targets overcome the day to day problems encountered with implementing Operate 2014, until they are no longer reliant on the Change Agent. Surfacing and managing resistance effectively throughout the implementation. If necessary showing them the art of the possible.

Change Agent Commitments needed Time and Logistics This is a full time role between now and the end of December Between now and the 12th September - Training / DILOs and assessments There will be requirements for travel and occasional overnight stays, if you have restrictions, let us know so we can work with you to accommodate where possible Your questions and answers so far: https://office.bt.com/sites/leanfoundation/SitePages/FAQs.aspx Next Steps Martin Murtagh martin.murtagh@bt.com will brief you on your role in completing the DILO and assessment activities next week Mark Vickerage mark.vickerage@bt.com will send out our view of your availability between now and 23 December 2011 – please confirm it’s accurate and highlight any restrictions you may have regarding logistics Any questions/problems, please email lean.service@bt.com and someone will call you back to discuss… Before we start rolling out lean across BT Operate, we need to get a better understanding of how much waste we have in our processes at the moment and how far we are currently using lean approaches. We’ve got a small group of assessors visiting teams and observing the way our provisioning and repair processes work in Service Delivery, Service Infrastructure and Service Management. The assessors are spending part of the day with managers and team members working through a number of survey questions that help us to map how lean we are. They’re spending the rest of the day observing the work that team members do, to build up a ‘Day In The Life of’ (DILO) picture that shows what people are spending their time on, including anything that doesn’t add value for our customers – known as ‘waste’. Roel Louwhoff will be assessing in Oswestry next week, and other OEB members are scheduled to also do some assessing. We aim to complete 100 assessments by 9th September, and we need you to be part of this team to undertake assessment over the course of the next 3 weeks. This is a great opportunity in meeting our people and seeing at first hand how we really work. Shadowing can be arranged if required as well as briefing. Martin Murtagh will be in contact with you, so please give him your full support.

Change Agents Pre-Pilot Training Plan Change Agent Induction (for all change agents) Introduction to Lean service, pilot approach, roles and responsibilities Wednesday 31 August 2011 Leavesden Change Agent Facilitation Training (for operational change agents only) Training to build your skills and capability in facilitation Friday 26 August 2011 Birmingham Change Agent Boot Camp (for all change agents) Lean tools training in advance of pilot commencement Monday 5 – Friday 9 September 2011 Adastral Park (new location being sourced) Lean Service Pilot Kick-Off Event (for all change agents) Pilot start Monday 12 – Wednesday 14 September 2011 Location tba

DRAFT Change Agent Boot Camp 5 Day Agenda Day 1 Day 2 5 September 2011 Introduction Mark Whitley What Is Lean? Lean Behaviours What is a Change agent? -The role of the Change Agent 1 AIM -Concepts & Tools Who is our Customer? -VOC, SIPOC BI Methods - PDCA, A3, DMAIC Day 2 6 September 2011 The Importance of Process Mapping Brown Paper Exercise IDEF Mapping to Level 1 IDEF Mapping to Level 2 Identifying Waste Four Types of Waste RWBA Day 3 7 September 2011 Understanding Data Data Collection Understanding Variation SPC Lean Principles Standard Work Performance Boards Performance Review Project Managing Day 4 8 September 2011 Measures Problem Solving A3 Exercise Priority Matrix Governance Day 5 9 September 2011 One Minute Manager Basic Understanding Coaching for Performance Role of the Change Agent 2 Next Steps DRAFT

Recommended pre-work for Change Agents If you’re new to Lean we would like you to complete some pre-work This can be found on SharePoint – https://office.bt.com/sites/leanfoundation/SitePages/New%20to%20Lean.aspx It includes: BT Operate Strategy What is Lean? Change Implementation Coaching Project Management Presentation Skills Most subjects will be covered in more detail on the “Boot Camp”, however, you’ll find a head start very useful!

Training - What we need from you We’ll send you an invitation to the Induction and Change Agent bootcamp + info about the pre-work required – please respond to all of the actions by return Confirm attendance for bootcamp and training activities Complete your change agent skills assessment by 26 August 2011 Send in any further questions to our email inbox: lean.service@bt.com Check the change agent Q&A on the sharepoint site for Lean Service: https://office.bt.com/sites/leanfoundation/SitePages/FAQs.aspx

Questions and Answers lean.service@bt.com