Embedding Lean Ways of Working

1. Version Controlled – See Lean Service site for latest version. Embedding Lean Ways of Working

2. To help build Lean WoW we are focusing on 3 key areas • Variation has been identified in post-wave site-visits in the following areas: • Performance Dialogue • Process Confirmation • Problem Solving • To help resolve this we will: • Strengthen these three areas in wave 1 and pilot teams using standard work and single point lessons as an initial focus • Integrate standard work into wave 2 planning

3. In wave Support Operations Wave Change Team Reinforcing Process Confirmation Coaching and Mentoring Method 0 Week 16

4. Post wave - Embedding Lean Operations Lean Practice Reinforcing Process Confirmation Method 16 Lean Maturity

5. Standard Work for Performance Dialogues

6. Performance Dialogue Who Why How What When Theme A Director Measuring and understanding what is and what isn’t going well in order to set yourself up for success now and for the longer term for the customer Facilitate weekly GM dialogue Participate in MD dialogue Review of key measures and take action to resolve issues and improve Monthly GM Measuring and understanding what is and what isn’t going well in order to set yourself up for success now and for the longer term for the customer Facilitate weekly T2 dialogue Participate in weekly GM dialogue Review of key value stream measures and take action to resolve issues and improve Weekly Lean T2 Measuring and understanding what is and what isn’t going well in order to set yourself up for success now and for the longer term for the customer Facilitate weekly FLM dialogue Participate in weekly T2 dialogue Data-driven review of ‘how did we do last week?’ and ‘are we set up for next week?’ Takes actions to generate longer term problem solving Weekly FLM As above, and share best practice (the best way we know today), raise issues and ideas, and understand how I contribute to the process and to the customer Facilitate daily team dialogue Participate in weekly T2 dialogue Data-driven reviewof ‘how did we do yesterday?’ and ‘are we set up for success today?’ Takes actions to resolve immediate problems and generates longer term problem solving Weekly &Daily Team Member As above, and share best practice (the best way we know today), raise issues and ideas, and understand how I contribute to the process and to the customer Participate in daily team dialogue Data-driven review of ‘how did we do yesterday?’ and ‘are we set up for success today?’ Takes actions to resolve immediate problems and generates longer term problem solving Daily OCA As above: participate as a team member, and coach colleagues to achieve improved level of Lean maturity Coach daily team dialogue attend one dialogue per month in other FLM teams Coaches on problems/issues, provides feedback. Daily

7. How To Participate and Coach in a Performance Dialogue. Gather with the team – face to face, or using your virtual tools (see Virtual Working How To guide) around the performance board. You should make the dialogue the same time, every time. If it’s daily at 10am, it’s always at 10am. This is a team board – so performance dialogue should be designed and run by the team with coaching and support from the manager. The length of your dialogue will depend on it’s frequency, which is based on the management level. If it’s weekly, you may have more that needs to be discussed than if your dialogues are daily, performance dialogue will normally last between 10 and 60 minutes. Performance Dialogue • Discuss the following: • How did we do yesterday? • Are we set up for success today? If not – what actions need to be taken and what needs to be different today? • What are we improving for tomorrow (using structured Problem Solving)? • As a best practice, the message should be consistent across teams where applicable. It’s also a chance for you to rally the troops and pick up any issues that might be stopping them from being brilliant. • Actions will need to be taken when something cannot be closed off during the Performance Dialogue – these will need to be have owners assigned, updated and discussed in the following performance dialogue – even if there is no update it’s vital to make sure the teams know what is being worked on, by whom, and what remains on the ‘radar’. • Why should we talk about performance? • Performance needs to be measured and talked about at all levels, in an open and honest way. This will encourage problems and issues to be highlighted early, prompting structured problem solving to begin, and therefore ensure we are fully set up for success today. • What does it do? • Each manager, regardless of level, is responsible for coaching and attending Performance Dialogue Meetings. For example – a First Line Manager attends a T2 Performance Dialogue and coaches their team to run one. • Answers the fundamental questions of ‘how did we do yesterday?’ and ‘are we set up for success today?’ with the use of data. Takes actions to resolve immediate problems and generates longer term problem solving • Used as a method for communicating longer term strategy and top down messages. • A forum for escalating issues that cannot be solved at a local level. • Links your process directly to the customers – using the measures to show how well we’re doing against their expectations • Engages everyone at all levels to actively input into Problem Solving, daily action planning, and enabling future success. • TIPS • When attending a performance dialogue, there may be messages that need to be cascaded down to your team. It’s important to take notes if you need to. • This is not a forum for moaning – but a platform in which to discuss historic performance based on data and how we’re setting up for success for our future. • Check understanding – has anyone got any updates – and have they fully understood where we are and what we need to work on? • Invite your OCA to coach the dialogue – or if you’ve not got one, why not invite your peers – you boss – your GM – how are you doing? Did everyone understand the messages going out? How could our dialogue be more effective? Remember – the team own the dialogue. • Think about your favourite football teams – this can act as an energiser, an engaging, active session. No football team starts a game without a ‘scrum’ and a focus at the start! • If you’d like support for running these sessions, why not visit: http://martinfowler.com/articles/itsNotJustStandingUp.html

8. Performance Dialogue • Performance Dialogue: Do’s • Make your performance dialogues regular and structured. • Keep it to the point, do not make the dialogue last longer if you’ve covered everything you need to. • Keep it data focussed – talk in terms of what actually happened and not what we think happened. • Discuss previous performance – what prevented work moving smoothly or effected our ability to deliver? • Rally the troops, this is your opportunity to coach the team and get to know the inner workings of how we performed. Performance Dialogue not only finds reasons for poor performance, but reasons for good performance too – analyse why it happened and how we can replicate the behaviour. • Engage the team – ask their opinions, seek their input. • Take actions if needs be, review at following Performance Dialogues, and follow up - not everything will be solved during the Performance Dialogue. • Review how the performance dialogue went – seek feedback from your team members • Share the work load – get individuals updating metrics – not only will you increase the knowledge of your team members about how they effect performance, but also lightens the load. • Visit other teams performance dialogues, learn best practice and share, as well as providing them feedback. • Performance Dialogue: Don’ts • Make it adhoc – plan your dialogues in and stick to the schedule. • Feel the need to discuss over and above what’s needed – a performance dialogue doesn’t need to go on to last to meet minimum times. • Talk about how “we think” performance went previously, or talk vaguely about performance positives or negatives. • Just rely on the metrics for how performance has gone. Look at active problem solving documents, skills updates and resource requirements outside of team needs. • Disengage and talk ‘at’ the team. This includes body language and tone of voice. • Try to solve everything within the one Performance Dialogue – instead take and assign actions . • Ignore, forget or leave actions. There may be items during dialogue that cannot be picked up immediately, but can be taken to resolve later. • Try to do update everything yourself. Completing board updates in isolation can potentially lead to a lack of team understanding, and not visiting other areas causes loss of messages across teams. • Assume the way you deliver the Performance Dialogue is the only way. There are best practice ways to deliver Performance Dialogues, and hints and tips, but your colleagues may know a more effective way – freely share this best practice! • Other useful materials an internal documents can be found on the SharePoint

9. Performance Dialogue Coaching Tool For the full tool visit: https://office.bt.com/sites/operateleanservice/Lean Collateral/Post Wave/4. Other Useful Tools/Performance Board CoachingTool.xlsx

10. Standard Work for Process Confirmation

11. Process Confirmation Who Why How What When Director Ensure consistent quality of dialogues, ensure dialogues drive performance and effectively escalate and cascade info. Check adherence to processes Visit performance dialogues, feedback and coach. Check GM process confirmation schedule Track through performance board Performance dialogue confirmation at GM level and team level – check GM is doing process confirmation GM calls: monthly, FLM reviews: every 6 months GM Ensure consistent quality of dialogues, ensure dialogues drive performance and effectively escalate and cascade info. Check adherence to processes Site visits, ask constructive questions and share output. Check T2 process confirmation schedule Track through performance board Performance dialogue with T2s – dialogue confirmation T2: monthly, plus every FLM team quarterly T2 Ensure consistent quality of dialogues, ensure dialogues drive performance and effectively escalate and cascade info. Check adherence to processes Site visits, review FLM standard work check sheet. Visit customer/supplier. Track through performance board Performance dialogue confirmation at team member level. Check FLM is adhering to standard work. Provide feedback to FLMs. Every FLM team monthly, plus quarterly visits to customers/suppliers FLM As above, and ensure agreed standards are followed and best practice is always followed Sit with team members and check how they are working against standards, and check the standards are working Track through performance board Check team is following standard work by asking “show me what you do” Define frequency for each piece of standard work – at least every year Team Member As above, and ensure standards are being followed and best practice is always followed Flag anomalies and issues with standard work Flag changes/adhere to standards As they appear OCA As aboveActs as role model of standards, and to ensure comms lines are open Visit/review/audit site, be the ambassador of standard Visit FLM/T2 gemba, summarise changes and ensure standard practice, develop question asking Weekly - tombola

12. Once you know what you’re looking out for, do it, go-see! Have a look at the operation. Speak to the people working the process. Has anything changed? Do we have the skills we need, and if not, if there a plan to bridge the gap? Is effective performance dialogue taking place? How can I help with your problem solving? What’s stopping you from being brilliant? Listen to the operation – does the process flow in line with the best practice and along with the customer expectation? During your visit compile with the team a list of actions that need to have owners assigned. Make sure you follow up on these during your next site visit. All process confirmation visits should be tracked through the performance boards Process Confirmation • What is process confirmation? • Behind process confirmation is a basic principle – being visible, and present, active, and available in the place where the value is added – that could be where the phones are answered, where the data is managed, or where the direct interaction with the customer (internal or external) happens. • It’s also confirming that standard work is the best way we know today, and that it’s being followed across all levels. The standard of work also changes and evolves as the business needs it to. • Why are we doing it? • To ensure there isn’t variation in our processes through standard work not being adhered to. This then limits variation and provides a consistent standard to the customer. • What does it do? • Ensures all standard are being adhered to. • Makes sure performance dialogues are being used effectively. • Makes best practice obvious and highlights anomalies in best practice sharing. • Checks Management understanding of team performance – where are they against target, and what can they do to improve? • Provides opportunities for management coaching. • An opportunity to visit customers to ensure process is working as expected. • How To Complete Process Confirmation • Create a Process Confirmation schedule at each management level to confirm that work is standard against best practice, using your report’s standard work log. In a non-physical team, this will need to be arranged with the manager in advance for a telephone conversation, however you should aim to visit each of your managers or team members. • Compile a list of useful, constructive questions you could ask whilst visiting your manager depending on your sites maturity. Select a ‘theme’ for your walk – should it be quality, are you going to focus on the supplier to your process? Are you going to focus on your delivery metrics? (Additional questions can be found on the SharePoint) This isn’t to say that you ignore everything else in the area, but go with a focus that always keeps the customer at the heart of everything we do. • TIPS • Just being on site may prompt items to come up that are not on your schedule – that’s ok! Don’t ignore these issues just because they weren’t inline with your original focus – look at them as opportunities for improvementand log them on the relevant performance board • Remember we’re keeping the customer at the heart of everything we do – you should be able to see what the internal and external customers are expecting from the department (performance measures should clearly reflect this). • If there is a deviation from the standard find out why! Confirm that this is being managed through an effective change control process? • The questions should always be framed with a constructive point of view, and focus on coaching where gaps exist. • Process Confirmation has many different names – “Managing by walking about” – “Walk About Management” – “Gemba / Gemba Management”. More information can be found here: http://www.gembawalk.com/the-gemba-walk/ • Other useful materials an internal documents can be found on the SharePoint

13. Standard Work for Problem Solving

14. Problem Solving (Doing) Who Why How What When Director To provide a structured approach for dealing with issues that affect the process performance In team with other directors and multifunctional teams Strategic improvements/design – cross BT, cross functional As dictated by performance dialogue GM To provide a structured approach for dealing with issues that affect the process performance Across multiple T2s and stakeholders with other GM & Director input where required Cross Value Stream issues as highlighted by performance review Escalations from T2 level As dictated by performance dialogue T2 To provide a structured approach for dealing with issues that affect the process performance Work with other T2s and FLMs, and gain input from GM where required Cross Value Stream issues as highlighted by performance review Escalations from T1 level As dictated by performance dialogue FLM To provide a structured approach for dealing with issues that affect the process performance Work with other FLMs and team members, and gain input from T2 where required Cross FLM issues as highlighted by FLM performance review , Escalations from Team members As dictated by performance dialogue Team Member To provide a structured approach for dealing with issues that affect the process performance Team members to create A3 upon finding issue and work other Team Members and FLM as required Problem solve when processes are going wrong/going right & can be improved. Feed into wider site projects. Solve own raised improvements. As dictated by performance dialogue OCA To provide a structured approach for dealing with issues that affect the process performance Facilitate the operational team to participate in problem solving and encourage teams to coach each other and work across the business as well as leading own A3s Weekly and bi-weekly reviews SME for problem solving, expert in toolkit & challenging ways of working. Liase cross site to connect projects

15. How To Problem Solve. Agree your problem solving team – who agrees to let this work go ahead? Who’s help will you need? It’ll most likely be your direct manager, and some of your colleagues, but you may need more people involved, perhaps customers and suppliers of the process. BACKGROUND: Write down your problem statement. You should not even mention a solution at this point, instead you should be thinking about a desired future state, and shouldn’t make assumptions about what could be causing the problems. To write your problem statement, think about…: Who does / does not the problem or improvement effect? What does / does not the problem or improvement effect? Problem Solving • How does / does not the problem or improvement manifest and how do you know? • When does / does not the problem occur? • Where physically, digitally, or in the process does / does not the problem appear? • CURRENT CONDITION: Now you have a clear idea of the problem you’re trying to solve, measure it. How frequently does the issues appear – is it 1 in every 5 orders or 1 in every 500 orders, and are there higher priorities of problems that could be solved instead? What is the current quality of the work? How much does this cost us? Do these errors impact what we can deliver? Does the problem only occur on a Wednesday? In Quarter one? At 10am? The information in this box should be mostly graphical – a visual representation of the area with the data. • GOAL: Write your goal – what would you like to change or improve? What needs fixing? What effect will this have? Make sure your goals are S.M.A.R.T.! • ROOT CAUSE: What’s the direct cause? What’s the root cause? There’s a lot of really great tools that can be used to help you establish likely causes to your problem. Try to be unbiased – it is possible for what you thought might be causing the issue – might not be the underlying cause – it’s important to remain true to the data. • PROPOSED COUNTERMEASURE: Using your data, and your root cause analysis, propose a solution that solves your problem. If a long term fix cannot be implemented immediately (for example – if your problem is a system issuethat is likely to take time to implement) what can we do to contain the issue, and prevent more errors or issues occurring? • PLAN: Plan your improvement with realistic timescales. Agree this with the committee you set up in step 1, and get their help and support where it’s needed.You’ll also need to execute this plan to solve the problem, so make sure the timescales are realistic. • FOLLOW UP: Once you’ve put your improvement in place, follow it up with a check. Once your improvement is in place – in pilot or otherwise, you need to show how the improvement has been made – you’ll need to show the same data set you did in your “Current Condition” box. • Why Problem Solve & Continuously Improve? • To reactively solve issues and proactively improve existing processes. A3 should be the standard toolkit used to solve the problems where the solution to the problem is unknown, or where an improvement needs to be made and multiple solutions need to be evaluated. • What does A3 Problem Solving do? • Makes sure we use data to find solutions to our problems without making assumptions. • Clearly defines the problem or the scope of improvement. • Prevents time wasting – does the issue really exist – or are we speaking emotionally about the topic? • Includes a toolkit to analyse the problem – how, when, where does it exist and why is this causing the problem? • Points to improvements to be made, and can reveal bigger problems that can potentially solve multiple problems. • Finally, we check that we’ve made a difference – has the problem been solved long term and is the process back to being under control?

16. Problem Solving Tips • USEFUL LINKS • BACKGROUND: • Tips on writing a concise problem statement: http://www.shmula.com/lean-six-sigma-the-problem-statement/5112/ • CURRENT CONDITION: • How to decide on the best way to display your data: http://math.youngzones.org/stat_graph.html • GOAL: • How to set SMART Goals: http://topachievement.com/smart.html • ROOT AND DIRECT CAUSES: • Brain storming ideas: http://www.businessballs.com/brainstorming.htm • 5 Why’s: http://en.wikipedia.org/wiki/5_Whys • Fishbone diagram: http://en.wikipedia.org/wiki/Ishikawa_diagram • PROPOSED COUNTERMEASURE: • Effort / Impact Matrix: http://asq.org/healthcare-use/why-quality/impact-effort.html • PLAN: • Gantt Chart: http://en.wikipedia.org/wiki/Gantt_chart • FOLLOW UP: • Control Chart: http://en.wikipedia.org/wiki/Control_chart • TIPS • BACKGROUND: You may already know the answer to a problem – that’s fine. However by skipping the A3 and jumping straight into solving it, you will miss opportunities to create sustainable, long-term improvements, as well as the chance to solve the ‘root cause’ of an issueand prevent it from happening again. • BACKGROUND: Focus on solving only one issue per A3. Be really specific about the problem you’re going to solve. • BACKGROUND: Don’t worry if you retype problem statements multiple times – getting it right first time isn’t the aim – making it explicit and clear is key. • CURRENT STATE: “Direct and Root Cause” is a great way of thinking about long term sustainable process improvements. For example - if you go to the doctor with a cold, you want the problem to be treated, not the temperature, sore throat, and headache individually. Completing an A3 is a great way of ensuring your aware and treating the overall problem, not just a “symptom”. If you can’t fix the root cause, that’s OK too. If it’s something that’s effecting your colleagues as well, it’s fine to escalate this issue. • PLAN: It’s ok to run a pilot. If you’re changing a process it’s fine to pilot your findings before rolling them out to a wider audience. • FOLLOW UP: If you’re final box does not show an improvement – that’s fine, it just means you’ve not solved the whole problem. Using the Plan, Do, Check, Act, if your “check” shows nothing has changed, the “Act”, might be to re-run an A3 problem solver. • Other useful materials an internal documents can be found on the SharePoint

17. Problem Solving (Coaching) Who Why How What When Director Check strategic objectives are being delivered With navigator – 3 way meeting With Navigator, coach GM on A3s, check problems being resolved across teams As requested GM Check strategic objectives are being delivered With navigator – 3 way meeting With Navigator, coach T2 on A3s, check problems being resolved across teams As requested T2 To check A3s are following standard methodology, check progress is being made, check targets are being achieved Group discussion with all FLMs on their current A3s. Involve OCA With OCA, coach FLM on A3s, check problems being resolved across the teams Daily – define need at performance review. All A3s should have minimum one coaching session before being closed. Do with OCA. FLM To check A3s are following standard methodology, check progress is being made, check targets are being achieved Discussion with full team working on an A3 – with support from OCA With OCA, coach team members on A3s, check team issues are being resolved Weekly (plus when requested) Team Member To check A3s are following standard methodology, check progress is being made, check targets are being achieved Sit with them and go through A3 More experienced team members help less experienced team members with A3 through coaching 121 weekly on current A3 OCA To check A3s are following standard methodology, check progress is being made, check targets are being achieved Sit in on FLM/T2 A3 coaching sessions. Coach team members as required Support FLM/T2 to coach team members on A3s 121 on weekly current A3

18. How To Coach Problem Solving Coaching should be done with the OCA or Navigator as well as the responsible manager Understand what a ‘good’ A3 looks like, gather examples and learn from feedback given in accreditation. Build good rapport with the people your coaching, and always approach the A3 with respect. Always find positives with the A3s; appreciate the effort that has gone into the work already done. Schedule an hour slot per week to review the A3s. Ask the person you are coaching to talk through the problem they’re looking to resolve. Challenge some of the points using unbiased questioning, such as: Is the topic relevant to the objectives of the organisation? Are the facts of the situation clear, or are there just observations and opinions? Has sufficient data been collected to baseline the current performance? What, specifically, is to be accomplished? Is the analysis detailed enough and did it probe deeply enough on the right issues, is proven by data? Do all those who will need to collaborate in implementing the countermeasures agree on the cause/effect model reasoning and does the final root cause make common sense? Problem Solving Coaching • Why do we need to coach in Problem Solving? • To ensure consistent application of tools and methodology are applied to recognising and solving problems. • To make the problem solving skills robust enough to enable us to tackle bigger and more widespread problems. • What does it do? • Coaching ensures that everyone at every level is capable to successfully solve problems by development of the team • Allows sharing of expertise from problem solving and process experts to get problems fixed. • Have all the countermeasures been explored? • How will the effects of the countermeasures be verified? • Has a plan been defined? What’s being done, when & by who? • What remains to be accomplished? Does another A3 cycle need to be undertaken? • The output of the meeting should be a list out three positives, and three areas of improvement for the A3 that need to be worked on – what do they need to do more of or do differently? What did they do well? • TIPS • Not every A3 will result in an improvement first time– regardless of the outcome it is important to make sure you follow the Plan, Do, Check, Act cycle. In this case, the ‘Act’ might be to ‘seek another solution’. • Remember to show statistically if you’ve made a change • You are the coach, not the problem solver. Use your expertise and knowledge to enable others to actively and accurately solve problems.

19. The key to good use of A3s is good coaching Title: Mentor questions for A3 Version : xxx Author : xxx • Background • Is the topic relevant to the objectives of the organisation? • Is the project a priority to complete? • Is an A3 the right methodology to use? 5. Proposed Countermeasure Are there clear countermeasures steps identified? Have all the countermeasures been explored? Do the countermeasures link to the root cause of the problem? Are the countermeasures focused on the right areas? Will these action items prevent recurrence of the problem? Is the implementation order clear and reasonable? How will the effects of the countermeasures be verified? 2. Current Condition Is the current condition clearly defined and logically depicted in a visual manner? Could the current condition be made clearer for the audience? What is the actual problem in the current condition? Are the facts of the situation clear, or are there just observations and opinions? Has sufficient data been collected to baseline the current performance? Are there any potential measurement errors in the data collection? 6. Plan Has a plan been defined? What’s being done, when & by who? Is the plan aggressive enough to complete the project in the required timescales? 3. Goal Is there a clear goal or target statement that relates to the project objectives and current situation? What, specifically, is to be accomplished? How will this goal be measured or evaluated? What will improve, by how much, and when?? Is the goal / target and completion date realistic? 7. Follow up How will you measure the effectiveness of the countermeasures? Does the countermeasure align with the previous goal statement? Has actual performance moved in line with the goal statement? If performance has not improved, then why? What was missed? Is anything else necessary to prevent recurrence of the problem? What other parts of the organisation need to be informed of this result? How will this be standardised and communicated? Has the project been signed off by stakeholders What remains to be accomplished? Does another A3 cycle need to be undertaken? 4. Root Cause Analysis Have you visited the workplace where the process is being carried out?? Is the analysis detailed enough and did it probe deeply enough on the right issues, is proven by data? Is there evidence of proper five-whys thinking about the true cause? Has cause and effect been demonstrated or linked in some manner? Are all the relevant factors considered (human, machine, material, method, environment, measurement, etc)? Do all those who will need to collaborate in implementing the countermeasures agree on the cause/effect model reasoning and does the final root cause make common sense?

20. Next steps: Integrating the standard work into the wave implementation plan • This standard work must now be integrated into wave 2 plan • Use this as the basis for the wave implementation plan (LWoW element) • To help you do this we are developing a tracking tool to mark your progress in these areas. Each team will complete this weekly following redesign week • Nick Clark will follow-up on progress in his weekly process confirmation calls • Achieving the level of maturity will become part of the exit criteria for the wave and will be assessed between the post-wave navigator and the in-wave team • The practice team will book slots with each of the navigators to go through the detail this and next week