SA Reorganisation –Building a new organisation

CWU Executive Briefing10th March 2011

1

Why is this needed? – our Vision

Competitive - An organisation that helps us to deliver the cost to serve and quality of service that enables the MFUs to compete effectively

Converged Operations – maintain operational convergence between IT and networks

Transparent - Creating visibility and transparency in our resources and processes, so that we can continuously improve, make the right kind of business and service level support investment decisions, and demonstrate value for money

Authority to deliver for the customer - increased customer focus, with clear ownership around the interfaces, supported by a RACI; enabling executives to lead with greater focus, and delegated authority to the lowest level, to ensure a better delivery to our customers.

Accountability – span of control enabling faster, more aligned decision making, and accountability

Design Principles Customer Focus

Demonstrating greater alignment and execution to support the MFU’s.

Visible changes around the high volume, primary transactions they have with us

MDSO relationship maintained and enhanced.

Minimising hand offs

Key processes streamlined and simplified

reducing the number of interfaces between the customer and getting something resolved

Protect investment in transformation

a good transformational plan for SA, blueprint and roadmap

Deliver on the defined vision for Service Assurance

Don’t break service Do not create any new gaps in processes and resolve existing ones, to

ensure non customer impacting.

Implementation Consideration Change and refine

Move some building blocks with possible additional moves transitioning over 1 or 2 quarters

General Principles applying to both units

Customer Centric Services• Develop a cultural shift in our ways of working

that predicts and pre-empts, driven by a proactive behaviour focused on maximising the availability of our services to customers.

• All products/services to meet operational and CE criteria

• Use scorecards to align vertically into the customer layer and horizontally across SA functions to achieve common execution and operational goals

• Define OM roadmap to move from today to target, and ensure all risks to CE are 100% mitigated

• Overall design of 99.9% availability minimum• Clarify accountability for delivery to customers

Culture and Organisation• The organisational build is consistent with the

Operating Model design, optimised and flat• Must be supportable to ITIL/ISO methods and

standards• Focus people development around the service

culture with true personal accountability – customer and service driven

• Shift in resources from reactive to proactive/pre-emptive.

Process & Performance• Standardised processes with full and predictive

management controls– Single data model relating service and technology– Leverage reuse of existing capabilities– Use new converged processes and strategic systems to rationalise

systems– Reuse of components and infrastructure capability is prime

requirement

• Reduce number of hand-offs in large volume interactions e.g. client communication on MSO, forecasting new requirements

• Shift process outcome to 70% proactive, 30% pre-emptive

– Provide reduction major incidents and reductions in reactive incidents for standard services

– Provide brenchmarkable value for money– Eradicate non productive work being issued

• Clear view of performance by service/customer– CE, RFT and CT targets are key outcomes

• Simplify the trading model (cost allocation for shared services and direct costs to LOBs)

• Designed to be scalable,

4

What is the focus of each unit?

• Provides mass market, customised and bespoke support for end user services

– Services BTs portfolio, providing customer segmented operations to meet the CE and dynamic performance needs

– Provides 2nd line for products and service based applications

• Availability and reliability sufficient to support a content and TV world

• Specific capabilities for specific MFU market segments (Voice, Broadband TV, SME ICT, WIFI, etc.).

• Technical capabilities and support for new-generation products (Super Fast Broadband, Ethernet, etc.).

• Clean introduction of new services and contracts with a low cost of operability.

• Owns and operates BT’s Business and network infrastructure.

– BTs IT, Global networks and operational infrastructure.

– Manages the oss platforms and componants that provides BT’s and industry with the infrastructure to manage the complex set of layered telco services that flow over, integration and consume shared technical services.

– Defined with in a set of catalogued services along with a set of defined shared service capabilities.

• A global network operation, with particular focus on UK• Focus on prevention and not cure• Availability and reliability sufficient to support a content

and TV world• Robust forecasting and capacity management• Operational excellence, in particular for 21CN, through a

high-performance, collaborative and customer-centric culture.

Services Infrastructure

Service Infrastructure

BT Service Management

Operating Model Review (What is the potential split?)

Service Assurance

BTGS SO (433)TV & Media (240)

Net Infrastructure (947 inc Voip)

DC Infrastructure (1581)

MFU SD’s (3)

Service Managem

ent Maj

or In

cide

nt M

anag

emen

t

Change Managem

ent

6

Inve

ntor

yCo

mpo

nent

& S

ervi

ce

Transformation (63)

Business Managem

ent (16)

CSOCs Incl SM (687)

Major Incident (54)

Change Mgt (34)

Asset Mgt (19)

Olympics (21)

Joint Transition

Centre (138)

El Segundo CEMC (73)

* Note FTE Numbers are indicative only

ASG (3254)

Production management

Business Managem

ent (16)

20C IP networks Camb + Adhara (122) A2T (1)

Service Management org – 1/4/11

Dana Crandall

AU Service Mgmt& Production

Mgmt

CSOCs, incl Service, Change Mgmt

Dougie

Andersonc915 people

AUA

TV & Media

Joe BarryC240 people

AUB

BTGS SO

Marc De Wit

c560 people

AUC

Retail Service

Jim Dempsey

AUE

Wholesale Service

John Gleeson

AUE

Group/Openreach

Service

tba

AUE

Sam BoothFinance

Nick ClarkTransformation

c63 people

AUD

Sean RobinsonEmployee/Internal

Comms

Andy WhaleBusiness Intelligence

c30 peopleARB

Gareth WilliamsHR

Service Infrastructure org – 1/4/11

Leigh Bennett

AR

Service Infrastructure

DC Infrastructure

Tony Jamieson

c1581 people

ARE

Net Infrastructure,El Seg CEMC,

20C IPnetworks

Paul Weirc1150 people

ARF

Olympics

Kevin Murphyc21 people

AROO

ASG

Martin Greenan

c3254 people

ARQ

A2T

Paul Excell

ARL

Major Incident,Exec Ops,& Asset

Mgmt

Keith Lawtonc60 people

ARI

Sam BoothFinance

Nick ClarkTransformation

c63 people

Sean RobinsonEmployee/Internal

Comms

Andy WhaleBusiness Intelligence

c30 peopleARB

Gareth WilliamsHR

BT Operate

© British Telecommunications plc9

What you can expect from our Leadership Teams in Service Management & Service Infrastructure:– Keep you informed - regular updates– Be honest and tell you as it is– Work as quickly as we can– Continue to develop further our detailed plans– Keep people informed on progress

Managing change…togetherIn Strictest Confidence

BT Operate

© British Telecommunications plc10

What happens next

Next steps:

• 15 March onwards ongoing engagement with CWU on roll out of SI methodology

• End of May arrange Exec Briefings with Leigh B & Dana C to review progress on embedding SI & SM businesses

• End of June provide quarterly MD business unit briefings to CWU Executive

• Arrange ad hoc meetings as and when required

In Strictest Confidence