CWU KCOM Contract Update 14th November 2011

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

Agenda

Contract Performance

Current Month Summary

KCOMLiability £30,000.00

SL's Failed this month 1

Potential Liabilities to date £451,000

Last 3 Month Total SLA Fails 6

Last 3 month Score 2

Same 3 Month SLA Fails Last year 4

Same 3 Month Score Last year 1

Sep-11

Key Threshold Target Stretch

Score Q1 Q2 Q3 Q4 Yr Forecast

KCOM 4 2 3

SLA Performance YTD SLG Liabilities YTD

Q1 Q2 Q3 Q412 15 18 21

£15,000.00 £60,000.00

£97,000.00 £96,000.00£153,000.00 £30,000.00£451,000.00

ScorecardWeight Threshold Target Stretch

% 50% 100% 200% Q2 target Q2 actual

Full Year Forecast

Position (or actual if quarterly banked)

FY ForecastOverall

(excluding BTO Shared )

Overall(including BTO

Shared )

1) Deliver MSL Gross Managed Costs (£m)

Measure: Measured at 31/3/12 from the BTO reported financial result with adjustments agreed by BT Group finance - reported in Millions (includes leaver costs)

20.0% Target + 7.5%Budget £56.4m Target - 10% £28.5m £29.76m Threshold 10.0%

2) Profititability - Contract Revenues

Measure: Contract Revenues

10.0% Target - 7.5%Budget

£265.8mTarget + 10%

£117.673m (TRF1)

£118.985m Below Threshold 0.0%

3) Profitability - MSL EBITDA

Measure: MSL EBITDA

10.0% Target - 7.5%Budget £8.82m

Target + 10% £5.517m £4.666m Stretch 20.0%

4) Service Delivery Measure: Contractual Measure met SLA 25.0%

26 previously 93.65%

24 previously

95.14%

18 previously

98.12%

24 Previous

92.2%

33 Previous

92.2%Threshold 12.5%

5) Transformation - MSL Operating Model

Measure: Transformation milestones met 10.0%

90% Milestones met

95% milestones

met

100% milestones

met95%

Between Threshold &

Target

Between Threshold &

Target7.5%

6) Transformation - Cost Transformation Projects

Measure: Cost transformation projects

10.0%90% Milestones

met95%

milestones met

100% milestones

met

95%Below

ThresholdThreshold 5.0%

7) Customer Satisfaction

Measure: Overall MSL CSAT Score

5.0% 76.7% 78.2% 79.7% 78.2% 80.03% Target/ Stretch 7.5%

8) Delivery of improvements in MSL (Unit) People Engagement and Performance Management Practices with significant focus on

Measure:6a) People Enagement improvement measure (% improvement in EEI)

6b) Delivery of team benefits from 'Transforming

10%a) 10/11 outturn

b) 95% Achievement

a) 10/11 outturn plus

0.1b) 100%

Achievement

a) 10/11 outturn plus

0.2b) 105%

Achievement

10/11 outturn plus 0.1

Below Threshold

Threshold & Target

7.5%

70% 70%

Q2 Results FY Forecast

Measure Measure Definition

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 29th 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

Microsoft Office Excel Worksheet

– 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 MANAGEMENTQ3 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 MANAGEMENTQ3 PLANS

Over the next few months our focus will be on:-

What Why

Objectives Refresh To review all personal objectives to ensure they remain relevant and aligned to the overall business objectivesImprove role clarity for our people

Review of job standards To 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 MANAGEMENTQ3 PLANS

Over the next few months our focus will be on:-

What Why

2 Way Deal Exercise 1) 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 Levelling As a follow on from 2-way performance deal activity - to overcome a number of common misconceptions regarding levelling and performance management

ENGAGEMENTFocus 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

EEI 3.62 (3.23) EEI 3.32 (NA)

PCI 3.75 (3.50) PCI 3.56 (NA)

B &H 10% (21%) B &H 8% (NA)

Any Questions?

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