Lean Service Change Agent Briefing

1. Lean ServiceChange Agent Briefing Sheree Lacy Richard Foxall Paul Stokoe Thursday 18 August 2011

2. Agenda for today’s call • Lean Service • What is Lean Service? • Vision for Lean Service • Lean Service Pilot • High level execution plan and timeline for Lean Service pilot • Pilot scope and key role map • Change agent role • Your role as a successful change agent • What’s in it for you? • The commitments needed • Change agent training • Change agent pre-pilot training plan • Change agent bootcamp plan • Pre-work for change agents prior to the bootcamp • Training next steps • Q&A

3. What is Lean Service? • Lean Service is a different way of working  with the customer at the heart of everything we do.   It means efficient processes where work flows smoothly with no waiting, no queues, no waste or duplication.  People are involved in both managing and improving the processes they work on and the organisation supports this. • This is not a short term programme but a long term goal which requires that everyone, everyday, thinks and acts differently.   We find better ways to do things using proven methods and simple tools whilst making Operate a better place to work.

4. Making processes more efficient Managing our performance Our processes will be visible and accurate with no waste or defects. Everything should flow through the process so there’s no queuing or waiting. We meet our customers expectations because our processes are predictable and in control. We will be measuring ourselves against meeting our customer commitments and the business costs involved. We make sure our performance against expectation is visible to everyone and as a team, we decide on how we can improve the way we work. Listening to our customers Organising our people and developing their skills Having the right mindset Everyone improves how things work better by using problem-solving methods and tools. Every manager will spend time with their team to understand how things work and coach them in how to make things better. We‘ll organise and develop our people so they perform at their best. Lean Service vision Our customers will be at the heart of everything we do. All processes willstart and finish with the customer. And everyone will understand how their contribution helps us meet our customer expectations and make a profit. SOURCE: McKinsey

5. Lean Execution: High Level Plan Change Agents Selection for Pilot Free Change Agents for Pilot 30/08 Induction 26/08 Induction 05-09 Pilot Lean bootcamp Pilot (16wks) Wave 1 Rollout (16wks) Benefit Realisation (12wks) Base-lining DILOs and assessments (non pilot areas) Finalise Wave 1 Domains Select & Free Change Agents for Wave 1 Finalise Wave 1 Rollout Plan Wave 1 Lean Boot Camp (3wks)

6. What area have we chosen for the pilot?…the Private Circuit L2C Process PPC 20C Order (eCo / CRF) Order Submission on eCo Order Submission on COSMOSS ABDB15 Customer Agree costs and advise customer ADBD16 Openreach Fibre Planning Job Control(CMC) Openreach Access Delivery Initial planning Review Final BTO Planning Order Complete ABDB16 Routing Openreach Fit & Test Config Customer Order Handover ABDB16 Order Submission BTO Howard Ambrose Planning Phase BTO Martin Hull Routing Phase BTO Simon White Order Completion BTO Howard Ambrose Alex McGhee Planning Andy Leaver Planningv Bob Peck Planning Jay Patel Job Control Denis Rankin Job Control Martin Geraghty Job Control Peter Walter Routing Simon Warren Job Control Richard Ware Routing Gillian Calvert Routing

7. Pilot Approach As Is Implementation Sep 12th 2011 Dec 17th 2011 To Be Repeat every week per process (Process Owner plus managers involved in each process) Process Map(s) per flow developed Executed by operational teams, coached & supported by Change Agent(s) Sponsor Reviews (every 4 to 6 weeks) Routing By Walking About to capture what is actually happening in each process Standard work defined Review if 1st Target Condition met, take learning into setting 2nd Target Condition Value Stream Map created Initial improvement ideas captured, prioritised and owners assigned Ideal State Defined Identify & mobilise new improvement opportunities Problems verified and plan for improvement created Review Process Performance Gather process performance management approach New improvement opportunities & progress of existing ones New improvement opportunities & progress of existing ones By Process / Generic 1st Target Condition for each Process by Lens Improvement Log (per Process) By Team Repeat every week (via team meeting) Performance data Lean Maturity & Change Agent withdrawal assessment Gather organisation and management performance approach 1st Target Condition for each Team by Lens Standard work defined Identify & mobilise new improvement opportunities Standard procedures documented Review Team & Process Performance Review if 1st Target Condition met, take learning into setting 2nd Target Condition Executed by operational teams, coached & supported by Change Agent(s)

8. Lean change agents – the foundations of a good change agent Lean Change Agent Confident and willing to learn • Willing to make a contribution to improve the situation • Ambitious regarding his/her own career path • Displays confidence and courage; can defend own perspective and support it with data • Confident to challenge behaviour in sponsors and targets to impact the programme • Successful personal and organisational history • Comfortable with giving and receiving feedback Passionate • Able to implement improvement ideas • Tailors communication to the audience and builds consensus through fact based discussions and common goals • Completer/finisher • Enthusiastic about applying Lean techniques in different environments • Success and credibility with key sponsors • Trust with key targets Sensitiveto human aspects • Aware of the human challenges in every improvement project • Behaves professionally • Inspires (senior) line employees to create their own action plans and achieve results independently • Is comfortable with working within a team environment • Belief in the project • Ability to translate the Sponsors frame of reference (FOR) when talking to the targets Strong problem solver • Rigorous and clear in descriptions • Can independently structure, analyse and synthesise findings with minimum coaching • Pragmatic and action-oriented • Awareness of culture and subculture differences • Comfortable with some level of ambiguity • Trained in Lean and/or Work-Out Plus with some experience in implementing process improvement projects – not essential • Recognized as a leader and or coach in their area • Trained and • some • experience Knowledge-able • Knowledgeable about products and processes • Ability to recognise resistance and develop plans to manage this • Knowledge of the business unit and strategy 8

9. What’s In It For You as Change Agents? Lead the change Help build your team Learn new skills Work with new people Raise your profile Fix problems / get to the root cause Work in a different way Improve what we do for our customers As we move through the pilot, we want to involve you in defining our recognition approach for the change agent population

10. Your role as a successful change agent… • To lead, educate and support the implementation of each Lean Intervention: • Lead: Defining the milestone dates (in conjunction with the Targets), putting in place the controlling governance, encouraging and tracking progress and benefits of the Intervention and individual improvement projects. Working with the sponsor network to ensure obstacles are removed. Providing regular management updates. If necessary acting as the project manager. • Educate: Teach and coach the Targets the relevant tools and techniques. Often initially leading by example and then ensuring the teams are able to perform the tasks for themselves. Validating that they are correctly applying the relevant tools and techniques. Working with Targets and Sponsors to sustain the changes and ensure continuous improvement. • Support: Provide structure, challenge and assistance to help the Targets overcome the day to day problems encountered with implementing Operate 2014, until they are no longer reliant on the Change Agent. Surfacing and managing resistance effectively throughout the implementation. If necessary showing them the art of the possible.

11. Change Agent Commitments needed • Time and Logistics • This is a full time role between now and the end of December • Between now and the 12th September - Training / DILOs and assessments • There will be requirements for travel and occasional overnight stays, if you have restrictions, let us know so we can work with you to accommodate where possible • Your questions and answers so far: https://office.bt.com/sites/leanfoundation/SitePages/FAQs.aspx • Next Steps • Martin Murtagh martin.murtagh@bt.com will brief you on your role in completing the DILO and assessment activities next week • Mark Vickeragemark.vickerage@bt.com will send out our view of your availability between now and 23 December 2011 – please confirm it’s accurate and highlight any restrictions you may have regarding logistics • Any questions/problems, please email lean.service@bt.com and someone will call you back to discuss…

12. Change Agents Pre-Pilot Training Plan • Change Agent Induction (for all change agents) • Introduction to Lean service, pilot approach, roles and responsibilities • Wednesday 31 August 2011 • Leavesden • Introduction to Lean service, pilot approach, roles and responsibilities • Change Agent Facilitation Training (for operational change agents only) • Training to build your skills and capability in facilitation • Friday 26 August 2011 • Birmingham • Change Agent Boot Camp (for all change agents) • Lean tools training in advance of pilot commencement • Monday 5 – Friday 9 September 2011 • Adastral Park (new location being sourced) • Lean Service Pilot Kick-Off Event (for all change agents) • Pilot start • Monday 12 – Wednesday 14 September 2011 • Location tba

13. Change Agent Boot Camp 5 Day Agenda • Day 1 • 5 September 2011 • Introduction • Mark Whitley • What Is Lean? • Lean Behaviours • What is a Change agent? • -The role of the • Change Agent 1 • AIM • -Concepts & Tools • Who is our Customer? • -VOC, SIPOC • BI Methods • - PDCA, A3, DMAIC • Day 2 • 6 September 2011 • The Importance of Process Mapping • Brown Paper Exercise • IDEF Mapping to Level 1 • IDEF Mapping to Level 2 • Identifying Waste • Four Types of • Waste • RWBA • Day 3 • 7 September 2011 • Understanding Data • Data Collection • Understanding Variation • SPC • Lean Principles • Standard Work • Performance Boards • Performance Review • Project Managing • Day 4 • 8 September 2011 • Measures • Problem Solving • A3 Exercise • Priority Matrix • Governance • Day 5 • 9 September 2011 • One Minute Manager • Basic Understanding • Coaching for Performance • Role of the Change Agent 2 • Next Steps DRAFT

14. Recommended pre-work for Change Agents • If you’re new to Lean we would like you to complete some pre-work • This can be found on SharePoint – https://office.bt.com/sites/leanfoundation/SitePages/New%20to%20Lean.aspx • It includes: • BT Operate Strategy • What is Lean? • Change Implementation • Coaching • Project Management • Presentation Skills • Most subjects will be covered in more detail on the “Boot Camp”, however, you’ll find a head start very useful!

15. Training - What we need from you • We’ll send you an invitation to the Induction and Change Agent bootcamp + info about the pre-work required – please respond to all of the actions by return • Confirm attendance for bootcamp and training activities • Complete your change agent skills assessment by 26 August 2011 • Send in any further questions to our email inbox: lean.service@bt.com • Check the change agent Q&A on the sharepoint site for Lean Service: https://office.bt.com/sites/leanfoundation/SitePages/FAQs.aspx

16. Questions and Answerslean.service@bt.com