CWU strategic review slides

1. CWU strategic review slides

2. Agenda • FE Performance 10/11 • Resourcing profile • Growth • Service • 11/12 plans • B&H concerns • People plan • Summary

3. Field Engineering Scorecard 2010-11

4. Resourcing The Growth goal is aiming to create additional roles to minimise the FTE reduction which is not reflected in this chart

5. Growth/ Agile Resourcing Why do we seek to grow? • Maintain scale to ensure we deliver great service and drive efficiency • Give our team confidence about the future, with a secure, growing workstack Where has the new work come from in 2010/11? • Majority of the additional work has been projects rather than recurring product volumes: mainly 21C, Build (WBC & EvoTAM), and specialists in Radio and Power • Product volumes were soft but are firming up in Q4 • FE has led majority of Group’s Agile Resourcing & insourcing activity, thanks to cost & service improvements: 400+ FTEs across 21C Build, CPE, Power • Lessons learned about how to support our people as the workstack changes Major Agile Resourcing Projects 2010/11 Prospects for 2011/12? • Objective: to maintain capacity and grow – c400 • Product volumes likely to be flat; increased project work • Supporting MFU campaigns, esp. BTB & GS • Insourcing: sustain build portfolio, focus on CPE (E250/E500) • Olympics: deliver trials and prepare for 2012 How can CWU help? • Flexiblity/ agility, to meet growing service levels, and beat external competition • Support multi-skilling across workstreams to improve efficiency

6. Customer Service Trends • Internal Core Network Products • Original Act-Com type dwell measures (WLR3; BB Repair; PCR) have consistently performed at high levels close to 98% • New RFT measures introduced for WLR; PCR and CP L2C during 2009/10. Lower performance reflects impact of multiple tasks per job and repeat faults. Service Harmonisation with reduced response times introduced on WLR3 in Q1 2010. • Recent months performance on WLR3 and BB T2R indicating need for more resourcing and control intervention to maintain success. • Key requirements needed to sustain high levels of service delivery: • flexibility and willingness to respond to changing customer and business requirements • changing demand profiles will require more dynamic changes in roles, responsibilities & skills • continuous multi-skilling across related work streams • attendance patterns matched to demand arrival and customer requirements across the working week • Customer Switch (E250/500) • Customer Switch RFT L2C and T2R have improved considerably since 2008 but have plateaued in 2010/11. • Performance variation in recent months reflects the need for more agile resourcing and increased utilisation as resource level requirement reduces. • E-E measures with significant proportion of upstream related failures particularly for L2C (70%) and T2R (50%). • HITS & Vision • HITS & Vision T2R available as new measures since 2009. Recent performance marginally down but adversely impacted by high Vision volumes consistently running above forecast and repeat faults. • Vision L2C is low volume but has improved considerably since 2008. Recent variation again reflects the need for more agile resourcing and increased utilisation with reducing resource requirement. HITS L2C also low volume but differences in process delivering marginally better results than Vision.

7. 11/12 Change Architecture BT Goals Health & Safety Growth People Customer Commercial FE Goals Putting people at the heart of delivering an enhanced customer experience Reduce our cost base to ensure Field Engineering is competitive Generate new work for Field Engineering Deliver an excellent customer experience Create healthy and safe place to work FE Goal Statement • Reduce GMC by £9.9m to £149.9m • Generate £15.5m revenue 70% of targets met week in week out + 400 FTE of new work EEI 3.59 PCI 3.92 RTC 111.11 Sick absence 2.36% FE Targets • Utilisation • Efficiency • Transformation • Discretionary spend • Reporting, forecasting and decision making • Revenue Generation • Customer Excellence • Making it personal • Aligned Inter-Working at Patch Level • Tail Management • Exploit the Full Benefits of SPC • Respond to MFU Demand • Create Demand (“Go To Market”) • Build Field Capabilities • Field Product Management • Better Led • Right people, Right skills, Right Place, Right Time • Agile & Efficient • A different way of working • Core Health & Safety plan • Mental Health & Well Being • Behavioural Safety • Power Estate Safety FE National Initiatives Finish delivery of system changes (deliver our Blueprint) Optimise & add value to existing processes (waste free processes where engineers add value) Production Planning & logistics (setting up for success) Transformation Management Control & Reporting System (taking real time control of our business) Service Manufacturing (continually improving how we do things) Positive Working Environment (making Field a better place to work)

8. Independent review of bullying & harassment: What it found & what we’re doing...... • Consistently high B&H results • Nature of feedback from our people gave cause for concern • Outside in view to give us a fresh and new perspective Why? Approach • 26 1:1 interviews, Interviews with Mark & all FELT • 2 Focus Groups, Team meetings, CARE panel meeting • Analysis of varying data • There is a problem we need to address • Levels of B&H as traditionally defined are not dissimilar to those in other organisations • Approaches to Performance & Change Management are similar to those found in other organisations • Our leaders struggle to both lead people & manage change • We need to support FLMs to develop a more sophisticated approach to management • Our managers have a lack of self awareness about how they impact the people they lead • At a more senior level this manifests itself in more covert behaviours. • Leaders overtly follow best practices but use personal influence and emphasis on potential negative consequences as a route to driving rather than leading improvement and change • Across Field we need compassionate leadership to support the change. • We need a step change in the emotional engagement with our people & up skilling of the leadership population to understand, value & role model compassionate leadership Findings from the report • Spending first half of FLM Q4 engagement events increasing awareness of covert behaviours & impact on others • Working with engagement forum to define what a positive working environment is for Field – creating positive pull • Supporting first line manager development through modular development programme: inc. leading through change, using data effectively • Working with leadership team to develop compassionate leadership • Aligning existing activities which will impact perceptions of bullying & harassment: feedback loops; you said, we listened; change management What we are doing

9. People Goal Right People, Right Skills, Right Place, Right Time Better Led Agile & Efficient A Different Way of Working Develop, Attract and Deploy Talent Change Management Embed OD Agile Working (Multi-skilling) Legacy and future (if changes made) (including replacer pool for engineers) Bullying & Harassment IR & ER Leadership Capability Training Plan : Aligned to Multi-skilling Added 22-Dec following MW review Embed FLM DCs Review RBL/T2 capability (Review attendance patterns; grading review) Communication Strategy story and channels Exploit the Basics March 2012 Compliance AND quality Resourcing impacts Creating a Listening Organisation In terms of targets – year end target + 50% of best in class Service Manufacturing

10. Summary • FE is continuing to source growth opportunities in order to do this we need to provide high quality service to our customers at lowest cost • To achieve this we need to: • Multi-skill our people • Be able to flex resource quickly and effectively • Be available when our customers need us at no extra cost • However at the same time we want to create a place where our people want to work