Transcript 13BOB016 t119 BT TSO

Important Note – please read
Lean is a long-term approach to change and by focusing on 5 diverse lenses (Customer at the
centre, People, Performance, Mindset and Process) aims to improve customer satisfaction and
increase people’s engagement whilst make our processes more efficient (reducing costs as a
result).
In a number of instances, “FTE cost savings” is mentioned as one of our commitments. This is only
in relation to one of the Lean Lenses (Process) where FTE is BT’s currency of choice to track
benefits achieved through the Lean Process improvements.
It is important to stress that the use of the words “FTE cost savings” does not necessarily equal to
BT job losses. The ISDT management team is committed to protect BT’s people jobs whenever
possible and target existing job vacancies and contractor work in the first instance as well as redeployment of efficiencies to authorised growth areas.
Why Lean, Why now?
Challenging business environment
Play the video
Play the video
It’s a challenging market:
•
•
•
Fierce competition
Bandwidth requirements are increasing
Our customers want more for less
So...
We need to offer excellent customer
experience, consistently.
We need to deliver the right things
efficiently, at the right price for our
customers.
To respond to this we need to:
•
•
•
Deliver competitive, high quality and
secure services
Work with our customers to better
understand what they want
Stop doing the things which our customers
don’t value.
So...
that we can get better at what we do and
make our people’s lives easier.
And at the same time, play our part in
helping BT grow.
Executive Summary Slide
Our commitment to Charter Objectives
(33 FTE and 5 FTE cost avoidance vs. 29 FTE in charter, CE Improvements
and LWOW Maturity)
Deep-Dive on Inbound Contact Global
Benchmarking analysis
Cost and Revenue
Future State Vision
As-Is vs. TC1 analysis
See Notes slide – FTE is the currency used
to measure process improvements but
does not necessarily equal to BT Job
reductions. There’s a number of ways of
achieving this goal whilst minimising
impact to our people (e.g. targeting
vacancies and contractors)
Our TC1 commitments on People, Performance and Mindset
Our TC1 commitments on CE & Financials
By focusing on 5 diverse lenses
(Customer, People, Performance,
Mindset and Process) Lean aims to
improve the way we deal with our
customers and with our people whilst
making BT more cost efficient
COMMITMENT PRESENTATION
REDESIGN AND TC1
LEAN WAVE 3 ICSD
MISCELLANEOUS PRODUCTS
Inbound Contact Global Operator
Rankings
This slide is specific to Inbound Voice. You
can find your process specific commitment
slides Here
8
BT
7
Verizon
(Scale 0 - 10)
Reach
6
Orange
5
T-Systems
4
3
2
2.50
Cable & Wireless
AT&T
Telefonica
3.00
3.50
4.00
4.50
Execution
(Scale 0-10)
Source Data provided by OVUM
5.00
5.50
6.00
6.50
7.00
7.50
Inbound Contact Global competitive story
This slide is specific to Inbound
Voice. You can find your process
specific commitment slides Here
BT
Inbound Network
Capacity
Largest global
network
Inbound Service
Surround
Best in market
Inbound Pricing
Orange
Verizon
Fairly large network
on limited set of routes.
Focused on low end of
market except for Spain
Fairly large network
on limited set of routes.
Focused on low end of
market except for Spain
Service Issues
on some routes
Good service Spain
Service has suffered
over recent years
Priced at a premium
to competition
No consistency
in pricing
Tends to ‘buy’ business
Strong when
combined with
domestic US
Inbound Reports
& Controls &
Analytics
Automatic reporting
with ‘call traffic’
reporter’ tool. Allows
customer plan changes
Limited reporting
capability. Good
customer control of
Routing options
Specialised reports for
larger customers. Allow
customers to change
switched terminations on
the fly
Limited reporting
capability. Good customer
control for US / iTFS
applications
Bundles
Best-in-class in some
cases. Specifically when
bundled with IVR or MCC.
Features are included in
Pricing
Strength when bundled
with
data transport
Limited bundling
Strong when bundle with
domestic
service offerings
Feature
Functionality
Greatest reach of all
competitors. Most
robust functionality when
combined with Interactive
Voice Response (IVR ) and
Multimedia Contact
Centre (MCC)
Varied. BT
functionality better at high
end. Missing reach of CCS.
Adding an MCC
like platform
Limited ability better at
high end. Missing
reach of CCS
Varied. Missing reach of
CCSI. However, better
functionality for
domestic services
Source Data provided by OVUM
Large network coverage.
Recently expanded using Mobil
sites for access. Issues with
VoIP.
C&W
Good service on
limited routes
Best in class
Weakness
Strength
Neutral
Inbound Contact Global As Is Waterfall
This slide is specific to Inbound
Voice. You can find your process
specific commitment slides Here
Overtime
Standard Allowances
Unavailable Time
9 FTE
40 FTE
Waste
1.5 FTE
5 FTE
45 FTE
45 FTE
27
FTE
See Notes slide – FTE is BT’s
currency of choice when
measuring process
efficiency, hence the reason
why it is used in the chart,
along with hours
equivalent.
17 FTE
Future State
Inbound Contact Global Process redesign overview
Key changes
This slide is specific to Inbound Voice.
You can find your process specific
commitment slides Here
1. Replace current manual Data Capture Form (DCF) & provide means for electronic data entry into VLP by account team.
2. Remove manual intervention for design template. Auto-populates.
3. Significantly reduce PTT dwell time by creating pre-built inventory of International access services. (Wait time in BT control)
4. Enable partial self provisioning to the customer for endpoints & routing features. Access retained within BT entity.
5. Auto generation of BT dial plan to support customers & automated billing population.
6. System generated notification of order closure to the customer via VLP. (Voice Logical Provisioning)
Future State – Process
Direct Sales Entry
via Portal
1
Design Template
Auto-populates
from Portal
2
Indicates standard order flow approx 75%
Prebuilt
Ownership of
INT Access
3
Customer self
Provisioning
capability
4
System
Generated
Customer
Inventory
5
System
Generated
Notification of
Order Closure
6
Indicates support required for complex orders equating to approx 25%
Performance benefits
1. Simplified on-line ordering service with built in validation checks to reduce errors and improve customer experience.
2. Auto populated configuration template with critical data including built in validation, reduces touch time and ELF’s
3.
Reduce PTT dwell time from an average of 64 days to 1 working day ultimately improving overall cycle time and Customer Experience.
4. Increasing customer control of their call features and routing with self provisioning capability, ultimately reducing cost of delivery.
5. Provides real time inventory capability, reduces touch points and improves customer access to their own inventory.
6. Replaces manual notification and multiple touch points removes cost, and reduces delays in order process.
Target Condition 1
Inbound Contact Global Process
redesign overview
This slide is specific to Inbound Voice.
You can find your process specific
commitment slides Here
Key changes
1. Produce new order template to reduce re-work issues identified in “As is” process.
2. Create PTT inventory database in order to own complete E2E delivery for access ordering.
3. Re-design Telephony Server B number analysis to incorporate generic command line as opposed to single entry
4. Introduce bulk upload capability within configuration management function to support increasing order volumes .
5. Graduated reduction in dual platform builds as Firebird migration progresses.
6. IPMS re-design improvement. Introduction of mandatory fields to prevent re-work on network DDI allocation and bulk change functionality.
Sales Order
Handling
(Other LOB)
Order
Submitted
Order Access
Delivery of
Service
Rework –
Missing or
incorrect data
Configuration
Signoff &
Maintenance
(Other LOB)
25% Cost reduction
End-End Delivery
Performance benefits
1. Remove waste in re-work at both order and configuration stages preventing errors and improving RFT, ELF’s and Customer Experience.
2. IFF PTT dwell time reduction from an average of 64 days to 1 day for fast track requests, improving Customer Experience. (VOC)
3. Cycle time improved by 4 min’s per service delivered by redesigning command line entries into Telephony Servers.
4. Reduction in processing time by 6 min’s/service with the introduction of bulk upload capability of command line data into GUI interface.
5. Firebird Project will have achieved migration of just over 70K services by the end of TC1 reducing the need for double keying.
6. Prevents dual allocation of network DDI’s, removing waste and improving process flow and Customer Experience.
VERTICAL LENSES
DENNIS GREEN
Managing our Performance
Key Issues Current State:
 People want to do the best jobs but the processes hinder them (ABRB Q3
Care Report).
 Team measures are not clearly aligned to the Voice of the Customer (Lean
Maturity baseline & vertical data collection).
 Teams feel process discussions are top-down rather than bottom up or
two-way (ABRB Q3 Care Report & Lean Maturity baseline).
Future
State
TC1
Lean Ways of
Working are part of
my team’s DNA.
AS IS
The processes hinder
my performance.
I understand and deploy standard work and engage
proactively with my manager during process
confirmation. I work with colleagues who do the job
to shape standard work.
TC1
What will we do?
How are we going to do it?
How will we know it’s worked?
Deploy standard work and
process confirmation.
Managers use performance dialogue to identify tasks appropriate
for standard work; those who do the work to shape the standard
work. Managers do process confirmation weekly.
• Lean Maturity weekly self-assessment.
• Documented standard work.
• Managers agree with teams daily standard work.
Performance Board and
huddles operating as BAU.
Set up Performance Boards at each level of the organisation with
cascade up and down. Standard work for managing the
Performance Board and daily huddles.
• Lean Maturity weekly self-assessment: Bronze level achieved.
• Positive feedback from the team. Improvement ideas managed at
the appropriate level and contribute towards the future state.
Improve the % of orders
we receive into our
processes right first time.
Managers commit to identifying their clean order % and to working
with upstream partners on root cause analysis to identify reasons
for unclean orders.
• Improved % of clean orders (baseline dependent on A3 current
condition).
Organising our people and
developing their skills
Key Issues Current State:
 People feel their skills are not fully utilised and they lack opportunities to learn new
skills (Lean Maturity baseline & Job Satisfaction Survey).
 Job roles, gradings and working practices are not directly aligned to the Voice of the
Customer (proven vertical hypothesis & HR data collection).
 Some teams are dispersed across many locations in the UK and abroad, making it
harder to share learning about how best to deliver for our customers (Trade 28b
vertical data collection).
Future
State
TC1
My team’s skills matrix is constantly
updated and visible, and fully
aligned to VOC. Every team member
has a tailored development plan
aligned to this.
AS IS
I feel my skills are not
fully utilised and I want
to develop new skills.
I will use the skills matrix to work
with my manager to develop a quality
PDP aligned to meet future demand.
TC1
What will we do?
How are we going to do it?
How will we know it’s worked?
Skills Matrices deployed.
All teams to have up-to-date skills matrices which are visible and
discussed at performance dialogue.
• Lean Maturity weekly self-assessment.
• Standard work agreed by teams to review and refresh their skills
matrices to ensure alignment to their Voice of the Customer.
Process level
multi-skilling started.
Managers use the team skills matrix as part of performance
dialogue. Managers work with their teams to identify multiskilling requirements aligned to their Voice of the Customer.
• Multi-skilling training commenced to impacted personnel.
Document handover
procedures between
teams in Miscellaneous
Products.
Nominated representatives from each trade to work jointly on an
A3. Required output is an agreed approach and template to
summarise key handover information.
• Completed A3 and delivered handover document.
• Standard work deployed for completion.
• Reduction in handover issues between trades (baseline TBA as part of
A3).
Having the right mind-set
Key Issues Current State:
 Managers spend too much time on non value-add activities rather than coaching their teams
and “going to gemba” (vertical data collection, Manager Time Analysis).
 We fire-fight rather than use a structured approach to problem solving (ABRB Q3 Care Report,
Lean Maturity baseline, Team member feedback).
 Teams are not fully clear on their purpose and its alignment to VOC (proven vertical hypothesis,
Lean Maturity baseline & VOC data collection)
 Teams are concerned about the impact of Lean on their jobs (ABRB Q3 Care Report).
Future
State
TC1
My manager is a great coach, who
spends 50% of his/her time with the
team, helping us to stretch our
capabilities.
AS IS
My manager
doesn’t spend
enough quality time
with me coaching at
the coalface.
I understand and use problem
solving techniques and my
manager coaches me on them.
TC1
What will we do?
How are we going to do it?
How will we know it’s worked?
Managers spend 50% of their time with
the team.
All managers complete A3s on how they spend their time
and then complete a STOP/START/CONTINUE exercise to
identify and remove non-value add activities from their
diaries.
• Completed Manager Time Analysis tracker at week 15 to
gauge % of time spent coaching the team.
• Improvement in Job Satisfaction Survey questions: “Does
your manager spend quality time with you discussing your
work?”; “Do you have the opportunity to work with your
team to solve problems?”
Coaching on structured problem solving
(A3) is BAU.
Equip managers and team members with structured
problem solving skills which we will actively use at all levels.
Managers deploy coaching Kata to upskill teams on A3
methodology.
• Lean Maturity weekly self-assessment.
• Clear evidence we are resolving root causes rather than
symptoms.
• Observation at performance boards to ensure A3 approach
being used.
Target Condition 1
Effort Waterfall – TC1 Commitment
See Notes slide – FTE is BT’s
currency of choice when
measuring process efficiency,
hence the reason why it is used in
the chart, along with hours
equivalent.
7 FTE
converting
productive
time to FTE
1 FTE saving
through LWOW
6.5 FTE
5 FTE
7.2 FTE
Saving
Process re-engineering
(productive time)
25
LWOW
1
Standard allowances
equivalence
7
Total
33
TC1 Commitment
Overtime
Standard Allowances
Remaining Waste
Outside Diagnostics
6000.00
1.5 FTE
Saving Summary
5000.00
23 FTE
7.9 FTE
4000.00
146
FTE
1+ 3
FTE
138
FTE
FTEsaving
saving
125FTE
1
FTE
saving
through
process
through LWOW
through
LWOW
re-engineering
12.9 FTE
7.4 FTE
3000.00
50 FTE
115
FTE
2000.00
115
FTE
0.1 FTE
3.6 FTE
1000.00
36 FTE
0.00
Total within Subwave
-1000.00
Outside diagnostics &
Extrapolation
Standard
allowances
outside
diagnostic
Standard Allowances inside
Diagnostic
Total
available
within
diagnostic
Nonprocessing
time
Total Processing time
Processing Value demand
Processing
Failure
Demand
NVA Rework
NVA (Other)
VA activities
NNVA
Activities
TC1 Efficiencies Summary
See Notes slide – FTE is the currency used to measure
process improvements but does not necessarily equal
to BT Job reductions. There’s a number of ways of
achieving this goal whilst minimising impact to BT
people (e.g. targeting vacancies and contractors)
Process
Name
Trade 12
•
•
•
•
•
Trade 6
•
•
•
•
Trade 28B
TOTAL
•
•
•
CTQ Requirements
Percentage of
Population in
Scope
VA %
(within
the
process
flow)
Number of
FTE
TC1 Efficiencies
Specific detail on escalations
Quicker Cycle Time (E2E)
Quicker Cycle Time (with our
suppliers)
RFT Delivery
39% FTE
39%
57 FTE
Voice Outbound = 6 FTE
Voice Inbound = 5 FTE + 5 FTE Cost Avoidance
LWOW = 1 FTE
71 FTE
LAN = 9 FTE
IPT = 3 FTE
AVAYA = 5 FTE
DST = 1.5 FTE
10 FTE
IPLC = 2.5 FTE
138 (out of
146 in
scope)
33 FTE efficiencies + 5 FTE CA
(23% of 146 in-scope)
Flexible response to in-production
changes
Quicker Cycle Time
RFT Delivery
49% FTE
Quicker quotes
Handover pack accuracy with circuit
and contact details
Specific detail on escalations
Quicker Cycle Time
RFT Delivery
7% FTE
95% (plus
managers)
24%
8%
Target Condition 1
Commitment Summary
By focusing on 5 diverse lenses (Customer, People,
Performance, Mindset and Process) Lean aims to
improve the way we deal with our customers and with
our people whilst making BT more cost efficient
Making processes more efficient
• Reduced cycle time (specific targets vary by process)
• Saving 33 FTE (23%) due to process re-engineering activities
enabled by;
As per Notes slide, FTE does not necessarily
o Creating Flow
equal to BT job reductions, there are a
o Controlling Flow
number of ways to achieve these targets
o Managing Demand
whilst minimising the impact to BT people
Listening to our
Customers
Having the right mindset
• Reduced end to end cycle time
• Already very good RFT service
levels maintained or improved
• Improved escalation and KCI
process
• Local CE metrics tracked via
Performance Boards
• All managers will complete A3s on how they spend their
time and do a STOP/START/CONTINUE exercise to
remove non-value-add activities from their diaries. They
will spend more of their time where the work takes place
coaching their teams.
• We will equip managers and team members with
structured problem solving skills which we will use at all
levels. Managers will deploy coaching Kata to upskill
teams on A3 methodology to make structured problem
solving BAU.
Managing our performance
• We will work with our teams to identify and shape
standard work for key tasks; managers will undertake
process confirmation.
• Performance boards and performance huddles will be
BAU at all levels of the organisation.
• We will work with our upstream partners to identify
and rectify the root causes of unclean orders entering
our processes. We will establish a robust ‘as is’ picture
first before planning and deploying improvements.
Organising our people and developing their skills
• All teams will have visible, up-to-date skills
matrices which align to VOC, and are reviewed
during performance dialogues.
• Multi-skilling training will be rolled out based on
forecast demand and team skills matrices.
• Handover procedures between teams in
Miscellaneous Products will be developed and
documented, underpinned by standard work.
BACK UP SLIDES
See Notes slide – FTE is the currency used to measure
process improvements but does not necessarily equal
to BT Job reductions. There a number of ways of
achieving our process goals whilst minimising impact to
BT people (e.g. targeting vacancies and contractors)
As Is Summary
Process
Name
CTQ Requirements
Percentage of Population
in Scope
VA %
(within the process flow)
Number of FTE
Trade 12
• Specific detail on escalations
• Quicker Cycle Time (E2E)
• Quicker Cycle Time (with our
suppliers)
• RFT Delivery
39% FTE
39%
57 FTE
Trade 6
Trade 28B
TOTAL
• Flexible response to inproduction changes
• Quicker Cycle Time
• RFT Delivery
• Quicker quotes
• Handover pack accuracy with
circuit and contact details
• Specific detail on escalations
• Quicker Cycle Time
• RFT Delivery
49% FTE
7% FTE
95% (plus managers)
24%
8%
71 FTE
10 FTE
138 (out of 146 in
scope)
Taking re-design to the teams
3) Show rework, and
explain this is where
some of the
improvements come
from
1) Show Team
members the 4FM
2) Explain waste,
and why a step is
NVA etc.
30%
Step 1
Step 2
Show list of
Improvements,
and how they fit
into the
process.
Step 3
Step 4
Explain TC1,
and what
impact that
has on the
process
Explain the tools and techniques that they will
learn to help complete the improvements – A3
masterclass