Transforming Performance Team Member Workshops 1

How can our Team Member job standards support Service Delivery? Timing 2 Mins Introductions of presenters and check everyone knows each other House keeping Why we are here Key message – this is your session, make it useful to you

Agenda Our contribution to BTs Success in 2011/12 Why we need to improve our approach The two way performance deal Standard setting in Service Delivery Next steps Timing 2 min NOTE TO FACILITATOR: Please add the BU NAME for relevant group.

“ famous for delivering amazing service management” Simply…everything works, all the time our customers, their customers and BT can simply rely on us and trust us to be there, always We get better every day with fewer, highly skilled people doing exciting jobs on leading edge technology who are proud to say they work for BT “ famous for delivering amazing service management” “making it personal” “Our vision is to be our customers’ partner of choice. For BT Wholesale to achieve its ambitions for growth - we must focus on delivery for growth.” “Delivering tomorrow’s network of choice, together” 4

BTO 11/12 Objectives Cascade - Let’s hear from our sponsor…… http://youoperate.intra.bt.com/roel_transforming_performance.wmv

Transforming the way we manage our business Why Competition and commercial pressures Disconnect between unit scorecard and individual objectives How BTO wide initiative to transforming performance New approach to setting objectives Consistent, aligned , improved quality Team member KPI’s and measures in place What Clear line of sight to SD and BTO scorecard Translates individual performance to team and customer goals

Setting ourselves up for success in 2011/12   Setting ourselves up for success in 2011/12 IN CONFIDENCE The Goal: Creating role clarity and clear responsibilities for individuals Creating line of sight to the customer and the SD scorecard Aligning individual and business performance Give clarity and transparency on what is important Allow greater accountability on those closest to the work Align individual performance and business performance more closely, to achieve greater productivity and effectiveness Give you clear line of sight to what it is we need to achieve Involve you in the process earlier Help you understand the meaning of your contribution and why it matters Satisfied Customers Business Results Engaged Employees Improved Performance

Objectives and KPI cascade: How we are doing it MD Scorecard = + GM objectives Band 2 Manager objectives GM Band 2 Band 1 Business lead (Mark Williamson, or ANO from Leigh Bennett’s organisation) 10/11 approach... No formal process for how objectives were cascaded Process took too long Did not generate the required outputs Individuals often start the year without agreed objectives and/or poor quality objectives Targets are often set from the top down without bottom-up validation and agreement Poor vertical and horizontal alignment within and across teams May contribute to the disconnect between performance management outcomes and overall BTO performance 11/12 approach... Cascade process prioritised to ensure that it works effectively MD’s scorecards agreed and measures matrix developed Standardised, common metrics / KPIs should be agreed for those objectives under standard headings for all of Operate This same approach should be adopted by the DRs and their team all the way down to the FLMs All objectives must be on the system, by 20 May Benefits Will ensure vertical and horizontal alignment of objectives, targets and KPI job standards Some additional, more specific objectives, may also need to be added It will be key in gaining buy-in, clear accountability and ownership for objectives set It will also identify where shared accountability is required to deliver, and encourage collaboration between peers Team Member KPIs

Objectives and KPI cascade: What it looks like Operate board member Leadership team member General manager Level 2 manager Level 1 Manager Team member RFT 20% improvement against defined E2E measures 20% improvement against defined E2E measures RFT All of our actions aligned to deliver amazing service for BT’s customers OTD POM 1 &2 Job standard KPIs – Raise BTW Customer’s Orders on to COSMOSS within 1 working day. Reliability 20% improvement against defined E2E measures 20% improvement against defined E2E measures RFT SWG CFM 5 Delivering customer service for BT Service (basket) 5% of weeks green against specific customer targets. Business lead

The Two Way Performance Deal Setting clear expectations through job standards Understanding expectations of me through job standards Outcome: Differentiation based on performance against standards Timing 2 min Is everyone familiar with the performance deal? Is everyone familiar with the people manager job standards?

What do we mean by job standards? Job Standards are: Based on the role, not the individual Observable, specific indicators of success for the day job Meaningful, reasonable and attainable Expressed in terms of Quantity, Quality, Timeliness, Cost, Safety, or Outcomes Regulatory or legal requirements applicable to the role Typical components that should be reflected in a job standard How many or how much is needed? What are the results needed? How good is acceptable? Are there safety considerations? Are there legislative or regulatory requirements that require strict adherence? Are there behaviours that are expected in your business unit to promote teamwork, leadership, creativity, customer service etc? Timing 5 min Highlight job standards are about day job – this is what differentiates them from Personal Objectives (Reward Framework) In simple terms it’s about ensuring people understand what’s expected of them – this starts with a conversation It is NOT about mountains of documentation or locking everything down to the floor

In Summary, we need to focus on: What = my key purpose and job responsibilities plus any mandatory job standards e.g. safety, security, competition, people manager standards, performance deal How = behavioural expectations e.g. BT capabilities linked to Service Manufacturing Measures = Objectives for managers, KPIs for team members Skills = what else do we need to put in place to be fully effective in the role What is the purpose of my role What I will do to contribute to BT’s success How I will go about it in line with the BT capabilities What are the measures that will help me and my manager know how I am doing What skill development that will help me do the best job possible

Our Approach to Performance BT & BU Strategy Team Scored BT Strategy BU Strategy Team Scorecard Inputs Outputs Timing 5 min So how do job standards fit in? It’s all about articulating the expectations of the role – what kind of wedding cake do you want to end up with at the end of the year? What’s expected can change year on year given the BU and team objectives will change Line of sight helps people put what they do in context No surprises for our people at the end of the year, reviewing and assessing progress becomes quicker, we’re confident in the decisions we are making So let’s talk about what’s expected of our team in the year ahead Success

Break Out Session Aim: for everyone to generate ideas for applying standards to an individual role What are the objectives and KPIs for a First Line Manager? Think about what you do as a team member to support delivery of those objectives, answering these questions? Come back together to discuss: Do these measures and capabilities help me to be aligned? Am I clearer on my role and responsibilities? Do I have greater line of sight to the customer, to the business? How does my role contribute to SD business results? How can I make a real difference? What are the key measures of my role? What are the key capabilities and behaviours of my role?

Progress made and, more to do And finally BT is a far better business than last year.   The foundations are there to build a successful future. While things won’t change overnight, we have the resources, capability, people and attitude now to start winning and to create a much better future. The final message is a simple one. 2010 will be a lot better than 2009. BUT, 2010-11 is going to be better. The best is yet to come…. Transforming the way we manage our business – connecting to our scorecard