1. In Strictest Confidence Flexible Resource Unit (FRU)

2. © British Telecommunications plc In Strictest Confidence Content Overview Objectives Current Status Key Operating Principles Overview of the New Model Structure & Workflow of the Flexible Resource Unit

3. Objectives of Flexible Resource Unit Service Management Engineering Change Consultancy & Advisory Servises Objectives To establish flexible resource units in specific skill areas to; Support variability in resource demands across the business Avoid unnecessary short term 3rd party spend Utilise redeployee resource more effectively To establish hubs in response to business need in specific locations across the UK e.g. London Retail Contact Centre, AS&M, Engineering Flexible resource units established for specific skills and, where relevant specific locations

4. Current Status Flexible Resource Units - Current Status  An initial 80 people, currently on BTTC secondments have been identified, (based on performance and job family) will be moved into the flexible resource units early November  Initially the flexible units will be: Change Consultancy & Advisory Services (Business Improvement, Transformation, Project & Programme Mgmt.) but we will also establish a Service Management pool (Contact Centre, Sales, Client Mgmt.) and, potentially, an Engineering Services pool  We are putting in place a new management structure, with a head for each skill group.  We have a selection and assessment process established in conjunction with key professional community leads and will assess the current and future joiners to the flexible units  More effective performance management of people in the pool will be established with a more formal interface between the pool managers and end users  Where there is excess demand for resource which cannot be supported by individuals currently in the flexible units or redeployees, we will use the internal recruitment team to attract and identify new resource from the general BT population and create backfill opportunities for redeployees  We will formally launch with support tools and communications  We will continue to work with Prospect and CWU to develop the model

5. Key Operating Principles 5 To establish a permanent flexible resource unit to manage variability in resource demands across the business, avoiding unnecessary short term 3rd party spend Managed on a commercial /professional basis, the unit Head will be a commercial / business person, practice mangers within the unit will be domain experts Unit management will identify, manage and develop demand for opportunities, including; Current pipeline for insourcing including all agency spend Historic landscape for secondment resource from the BTTC Internal recruitment process, via dedicated team Comms and proactive marketing to encourage the LoBs to utilise, Governance to ensure conformity. The flexible resource population will be selected from; Existing BTTC population, including those on secondment Future surplus General BT population, Talent (prompting “double shuffles”) Key purpose 1 Expertise 2 Commercials Generating demand 5 Skills matching 3 4 Initial units will be Change Consultancy & Advisory Services ( Business Transformation, Business Improvement, Project/Programme Management, Strategy) and Service Management (Sales. Contact Centres & Client Management) Skill sets within Unit 6 Each activity will be scoped with clear performance objectives and standards set. Continuous review by the practice managers and direct feedback from customers of the FRU in the LoBs. Performance management 7 Appropriate costing models will be established e.g. Rate card process - utilisation target (typically 80% +), resource will be charged out to the LoBs CPA on transfer Central funding for management structure

6. 6 No entry for people involved in formal BT performance process Flexible Resource Units First units - Change Consultancy & Advisory Services & Service Management Flexible resource pool for temporary requests for resource Manpower model, with links to contracting/procurement Each project scoped, with clear performance management Commercial domain experts Deployed in change/critical project instead of external consultants Redeployment Focus on finding new permanent role Supported by ‘search’ consultants Clear performance management Intake selection process New matching capability SeeMore, Linked in Internal Recruitment Team Working as a recruitment agency 2 way proactive matching to current and future BT skills requirements Assessment Development Paths & Training Skills Profiling Interview Existing and future redeployees Career and development moves of general BT population Talent Fast Trackers Graduates Ex Apprentices MBAs etc. Overview of New Model BT People All BT jobs BT Internal Vacancies (BAU) Intake Criteria Selection Tools

7. © British Telecommunications plc In Strictest Confidence Flexible Resource Unit – Structure & Workflow Flexible Resourcing Practice Manager/s Responsible for the scoping and allocation of tasks and management of resource Flexible Resource Head Responsibility for the FRU to include; strategy, achievement of key objectives e.g. utilisation of FRU Assessment Development Paths & Training Interviews Skills Profiling Internal Recruitment Team Responsible for advertising demand across BT, matching and placing resource into Units and roles Current and future redeployee applicants (To include MCC and other priority candidates) BT internal applicants Selection process Internal demand for resource Head of Internal Resource & Deployment Accountable for internal deployment of resource i.e. redeployment of redundant skills to the acquisition of skills required to deliver BT’s strategy and growth plans Candidate attraction/identification Change Consultancy & Advisory Services (Business Improvement, Transformation, Project & Programme Mgmt.) Change Consultancy & Advisory Services (Business Improvement, Transformation, Project & Programme Mgmt.) Service Management (Contact Centre, Sales, Client Mgmt.) Engineering Phase 2