CWU KCOM Contract Update 14 th November 2011

Welcome and Introductions – including new faces Contract Performance & BTMSL Scorecard Organisation Update Resourcing Challenges Performance Management Engagement Agenda

Contract Performance SLA Performance YTDSLG Liabilities YTD

Scorecard

Iain Hill Head of NMO (Network Management Organisation) Mark Wrightson KCOM NMC Manager Alan Treen VM NMC Manager Tim Naylor NMO Back Office Manager Organisation Update Responsible for:- NMC Datafill & Provisioning Carrier Diagnostics KCOM Broadband, IP & Datacomms Support & FE Responsible for:- I-Services BB Carrier Ops Transformation Switch Support & FE IP Datacomms Transmission Support OSS Support Services I & M Engineering Power Engineering

Project Update All interface testing between KCOM and BT now signed off. This provides the capability to move KCOM tasks on WM. Work Manager tools configured for MSL working. Training plan on schedule with all ASC and MDF engineers now trained. Control teams trained. ASC team are now working off WM. MDF team now in pilot, with full rollout expected over the next 2 weeks. Cable and Jointing teams start training on 29 th November with pilot and rollout to follow KCOM I&M team to begin take up once Building a Better Business organisation design work is complete. Resourcing Challenges – Work Manager

– BAFO not received from preferred supplier – Final pricing against certain elements still in negotiation – Agreement on pricing anticipated w/e 25/11 – Expected transfer date Feb 2012 – Garage Team kept informed of slow progress Issue – TUPE Consultation Resourcing Challenges – Garage ITT

PERFORMANCE MANAGEMENT Q3 PLANS Our Culture Now Oppositional and Perfectionistic Our ideal culture Less Aggressive Less passive Increased focus on developing and encouraging people Increased expectation of self improvment

PERFORMANCE MANAGEMENT Q3 PLANS Over the next few months our focus will be on:- WhatWhy Objectives RefreshTo review all personal objectives to ensure they remain relevant and aligned to the overall business objectives Improve role clarity for our people Review of job standardsTo reinforce BT Approach to Performance Management it is critical that all our people understand what they need to personally do to help BT MSL deliver what our customers want. Job standards give managers and individuals an objective structure to for performance reviews. People need to understand how their role contributes to the overall strategy. This helps to deliver that strategy as everyone is aligned in their efforts.

PERFORMANCE MANAGEMENT Q3 PLANS Over the next few months our focus will be on:- WhatWhy 2 Way Deal Exercise1)To check understanding of the two way deal, 2)To identify how well we are doing at implementing the two way deal 3)To identify what we can do to better implement the two way deal 4)To involve our people in the development of a high performance culture Mock LevellingAs a follow on from 2-way performance deal activity - to overcome a number of common misconceptions regarding levelling and performance management

ENGAGEMENT Focus over the last quarter has been on:- Increasing visibility of senior leaders Improving communications about Building a Better Business Introducing regular channels of communication within the KCOM contract team Round Table events completed with Leadership Team & BT Wholesale CDD – ongoing commitment Trying get underneath issues of work life balance, and what makes people proud to work at BT

ENGAGEMENT – Q2 CARE Agile Results KCOM External Operations & Network Planning Network Management EEI3.62 (3.23)EEI3.32 (NA) PCI3.75 (3.50)PCI3.56 (NA) B &H 10% (21%)B &H 8% (NA)

Any Questions? 13