Build a Better Business KCOM Externals proposed organisational changes

1. Build a Better Business KCOM Externals proposed organisational changes In strictest commercial confidence

2. Proposals • This pack sets out the proposed organisational changes across the KCOM External organisation. • Existing skill sets and team members will migrate into four functional teams existing in the Externals organisation. • The MDF team will move across to join the Construction team led by Steve Phoenix • 5 layer 1 management posts will be lapsed and incumbents will undertake operational supervisory support roles to support the creation or larger managed teams which will balance the ratio of engineers to Line Managers in line with our People Engagement commitments.

3. Background & Rationale • In December 2012 BT MSL moved from a contract silo’d organisation into a shared service model. • Movement to the shared service model was carried out on the understanding that additional changes would need to be made once some of the more complex areas had come together and ‘To be’ models developed. • Current confusion reference roles and responsibilities of the People Manager vs Team Leader which is causing lack of engagement and a reluctance to embrace and manage performance in line with BT’s 2 way deal .. • Move to a leaner and flatter management structure thus improving decision making, communication and simplifying management reporting . This will simplify roles and responsibilities and improve working relationships across the teams • Elimination of duplicated activities and ‘hand offs’ , reducing complexity and providing a more responsive service to customers • Additional resources moved back ‘on the tools’ to cope with growing demand of NGA rollout and relinquish people manager responsibilities

4. People Impact of Change • All team members have a position in the new organisation and all moves to be managed on a ‘lift and shift’ basis, with no changes to T&Cs • Rebalancing of resources across the functional units within the externals organisation which should enable greater stability for the teams. • Overall reduction of 5 management posts and improved manager to team member ratios: • Five team leaders will revert to required technical engineering roles based on preference expressed and current skill sets. • Where there is multiple interest in supervisory roles then informal selection interviews to take place

5. Next Steps and Communications • Share proposals with CWU • 1-1 discussions take place between impacted Managers and current Line Managers and preferences discussed on team supervisory opportunities • Informal selection into posts where appropriate • Communication to Externals team and MSL functions • Organisation and CPA changes to be in place for 1st September

6. KCOM Externals Organisation changes

7. As Is structure

8. Proposed structure