Lean Service Redesign Week- SMEAS

1. Lean Service Redesign Week- SMEAS

2. What happened in Redesign week ? All the data you collected was put together to create galleries to show the current as is process. We heard from our Voice of the customer, what was important to them. We reviewed the improvement logs and built a priority Matrix. We used all the information to help us shape our Target Condition 1 and True North statements. We presented our commitment to Mark Whitley of the Effort Related Benefits we can achieve.

3. What did our data identify ? It allowed us to see all the hard work that goes into delivering service for the business and the customer. That each operational team knows the issues and interruptions that stop them from delivering. That we have the experience and knowledge within the team to identify and implement improvements That we have lots of opportunity to improve : • how we currently manage our orders • our customer experience • how we reduce waste • how we are organised • how we work

4. What does 2 weeks of data look like ? Dilo Voice of the Customer The MEAS delivery is valued by the MNOs and seen as a managed service Lead time is important, but predictability is more important and there is a perception that delivery is unpredictable MEAS is part of a customer 4 month build process and MNOs want BT to deliver MEAS just in time, but there are also dependencies along the way that the customer needs to be kept informed of Better use could be made of the ‘SURV & PERM’ process to predict cycle time more accurately and ensure clean orders are received Ask to be more flexible to handle short notice requests, but equally appreciation from the customer that good forecasting is necessary for regular orders and for predictable annual events Where our time is spent: Our maturity per lens: Voice of the Business There is significant competitive pressure in this market place, in particular from Virgin Media Competitors are seen as competing on better price and better service Financial interlock process between BTO and BTW is seen as an issue by both parties Impression that cost transformation is being placed before Service Internal measures are seen to be driving the wrong behaviours, in particularly the focus on completions rather than completing the orders that are needed by the customer “Contract led change” is required to help BTO become more efficient Routing by walking about Analysis • Productive time v CT is low, • resulting in low process • efficiency • NVA time amounts to 77% • of productive time SOURCE: McKnsey

5. People Improvement Ideas • Organisation and Skill • Mindset and behaviours Total of 173 Improvement Ideas or Issues generated. 101 In scope within 12 weeks. (Based on Priority Matrix)

6. Lean lens Process Efficiency Managing Performance Voice of the Customer Organisation and Skills Mindsets and behaviours Target Condition 1 • SURV/PERM – process understood and operating (CATs 1 – 4) • Proposal to BTW on Suspend/Delay Data Cleanse • Create a commercial understanding amongst all teams – ‘Delays don’t Deliver’ • Using SPC & SFN capture MEAS process steps • Derive synthetics for CAT 1,2,3,4 EAD – will enable better understanding on actuals delivered • CBA management overhead Vs amnesty cancellations • Change measured week to Sat – Fri • YCODE CMC self allocation on Sync order • RCA – Error Action Items • Agreed and standard procedure for scheduled (SFMAN) fallouts • Data Cleanse • Derive Kanban process to manage correct WIP • Review MSD ‘System’ to ensure fit for purpose (migration/SURV etc. Shift Left) Our processes have no waste or defects. Everything keeps moving as there is no queuing or waiting. Our Cycle Times are predictable and in control which means we meet our customer commitments. We measure ourselves against our customer commitments and the business cost involved in delivering it. We make sure how we are doing is visible to everyone involved and as a team we decide on the action we take to improve how we work. All processes begin and end with the customer and everyone understands how their contribution enables BT to profitably meet customer expectations. • Be the partner of choice for delivery of Mobile Broadband for our customers by growing our portfolio and capability to meet changing needs Lean Lean • Our customers success is our success • We are the exemplar role model for lean methodology • Call it Out • Establish performance boards, implement and make them bau • Educate all on the commercial model for Mobile Flow • Deliver LWOW Workshops by w/e March 1st 2012 • Create local slogans to ‘motivate’ our people • Utilise and count Lean problem solving techniques • People’s mindset linking directly to order progression – feeling the value of the order Everyone gets involved in improving how things work by using problem solving methods and tools. Every manager spends time with their team understanding how things really work and coaching them on making things better. • Adaptable, flexible and highly motivated workforce in the strategic locations We develop and organise our people to enable them to perform at their best.

7. Managing our performance Making processes more efficient Listening to our customers Having the right mindset Organising our people and developing their skills Vision/Challenge – True North • Have E2E operational control with zero waste • Predictable delivery against customer requirements • All customer agreed measures are met, transparent and timely • All value add activities are captured and charged as contracted • Meet contract obligation 100% in: • Revenue • Margin • Quality • Zero defects and delays • Be the partner of choice for delivery of Mobile Broadband for our customers by growing our portfolio and capability to meet changing needs • Our customers success is our success • We are the exemplar role model for lean methodology • Adaptable, flexible and highly motivated workforce in the strategic locations

8. The Lean Service Behaviours underpin this change • Listening to our Customers (Customer Connected) • You understand what customers really want (not just your part in delivering the process). • You know and understand how what you do fits in the process, from start to finish. • You suggest ideas to make things better for the customer. • You speak clearly and simply in a way that customers understand, knowing the part you play in giving a great service to our customers • Making Processes more Efficient (Straightforward) • You understand the different types of waste there are in the process, how they affect business, and how we can work differently to reduce them. • You use the Lean Service tools to work out where the waste is and what's causing it and work to fix local problems • You work with everyone else to help make sure the process that they're working on is better. • You make sure other people know when to ask for any help - and where to find it. • You communicate clearly so things are simple to understand. • Managing our Performance (Drive for Results and Trustworthy) • You understand your role and what you have to do to hit your targets right from the start of the process through to the end. • You're always looking for ways to improve what you do by keeping up with your learning and development. • You follow the standard process but where it doesn't make sense to do that, you help to fix it as quickly as possible. • You share good ideas • You deliver on what you have promised to do and are trusted to do the right thing for the business and our customers • Having the Right Mindset (Heart) • You give things a go • You ask questions to find out about lean service and use the supporting materials • You coach your team mate to help them improve what they do and you share what you know about the best way of doing things e.g. taking time to explain concepts and tools to your work mates who might need some support. • You ask for feedback so you can perform better yourself and respond to all feedback by taking the right action to improve the way you work. • You work with everyone in the process as one big team • You give feedback to both work mates and managers • Organising our People and Developing their skills (Helpful and Bottom Line) • You take ownership for learning new things, developing your lean skills and using them at work • You share what you know about what works best.

9. What’s the plan for the next 11 weeks? Using the improvement ideas you came up with and the lean tools we will start to implement the changes. Training and coaching will be given on the LWOW and Lean tools, Working in collaboration not only with your own team but teams across the SMEAS order journey to understand how what we do can improve the efficiency of the order journey both up and down stream, as well as within our own team. In our team we will look at the improvement ideas that we specifically identified and we will encourage the generation of even more, ensuring that Lean is a journey of continuous improvement. Manager, and senior managers starting to behave in different ways by supporting, demonstrating and encouraging the Lean Service behaviours. Even if you don't touch the SMEAS journey we still want you to generate improvements and begin to use the LWOW Lean becomes BAU and is incorporated in all areas of the team.

10. What can you expect ? • Regular briefings on Lean – so that you understand what Lean means for you • Your manager spending 50% of their time with the team empowering you to to solve problems to make your job easier to do • That when we implement change we capture best practise and share it with everyone • Team performance boards daily dialogue/huddles are meaningful for the team by looking at what is important to our team and look at how you can improve how we work together • That it is a culture and mindset change for all of us, and some people will get there sooner than others and this includes the managers. • Coaching is on going and at all levels • That mistakes will be made and we will learn from them.

11. What’s the plan for our team for the next 11 weeks? this slides will need to be completed by each FLM with their team specific activities 6

12. What Support do we have ? Change Agent Line Management Team All Levels of management are behind lean from Mark Whitley to your FLM Each team has Operational change agents chosen from their team Each team has a Central Change Agent Coaching is happening at all levels and is a 2 way communication. Lean web site and wave sharepoint So if you don't see Lean behaviour, or you are struggling with implementing or even understanding LEAN there is always support .

13. Put the customer at the heart of what we do. This will make sure that our improvements are the right things for our customers and importantly they are what our customers want. Improve your job and make it easier to do. The things identified will help to cut out inefficiencies, help to remove duplication and remove unnecessary handoffs. Improve the way we work together within our teams and across BT Create a better place to work because we will all be focussed on working together delivering the right things for our customers and the business Help us all to build a better business and to allow us to take on new business, helping BT Operate and BT grow by having the right number of people, with the right skills and experiences in the right places to meet the demand as it comes in Why is this important to Bt and to you ? 7

14. Thanks for listening, now it’s over to you…. Got a comment or question? From your phone dial 1 (star one) Or click on Q&A type your question in the text box click on ‘Ask’ 10