BT 2006 Annual Report Download - page 19

relationship between BT as a supplier and the UK Government
as customer has been on a normal customer and supplier basis.
We can, however, be required by law to do certain things
and provide certain services for the UK Government. General
conditions made under the Communications Act require all
providers of public telephone networks and/or publicly available
telephone services, including BT, at the request of and in
consultation with the authorities, to make, and if necessary
implement, plans for the provision or restoration of services in
connection with disasters. The Civil Contingencies Act 2004
contains provisions enabling obligations to be imposed on
providers of public electronic communications networks,
including BT, in connection with civil contingency planning. In
addition, the Secretary of State has statutory powers to require
us to take certain actions in the interest of national security and
international relations.
LEGAL PROCEEDINGS
BT does not believe that there are any pending legal
proceedings which would have a material adverse effect on the
financial position or operations of the group.
There have been criminal proceedings in Italy against 21
defendants, including a former BT employee, in connection with
the Italian UMTS (universal mobile telecommunications system)
auction. Blu, in which BT held a minority interest, participated
in that auction process. On 20 July 2005, the former BT
employee was found not culpable of the fraud charge brought
by the Rome Public Prosecutor. All the other defendants were
also acquitted. The Public Prosecutor is in the process of
appealing the court’s decision. If the appeal is successful, BT
could be held liable, with others, for any damages. The
company has concluded that it would not be appropriate to
make a provision in respect of any such claim.
RESOURCES
Corporate reputation and brand strength
BT has a strong, integrated brand that is widely recognised
both in the UK and around the world.
Our brand helps to shape our relationships with all our
stakeholders, including shareholders, customers, suppliers and
employees. It is vital that they all have a clear understanding of
what BT stands for, and that all their interactions with us
contribute to a consistently positive image of BT.
As a vital asset, the BT brand needs to be developed,
protected and managed with the same rigour that we bring to
other assets, both tangible and intangible. And as the world and
the markets in which we operate change, so our brand needs to
reflect this, becoming more confident, dynamic and forward
looking.
Towards the end of the 2006 financial year, we completed a
thorough review of our brand, as a result of which we developed
a new vision and mission.
Our vision for BT is to be dedicated to helping customers
thrive in a changing world.
Our mission is to be the leader in delivering converged
networked services. By ensuring that the services we offer
customers are consistently focused on meeting their needs,
straightforward and easy to use, we will help those customers
succeed in their business and personal lives.
The review concluded that the BT brand values remained fit
for purpose. Consequently, they are unchanged:
strustworthy – we do what we say we will
shelpful – we work as one team
sinspiring – we create new possibilities
sstraightforward – we make things clear
sheart – we believe in what we do.
During the 2007 financial year, we will be delivering a
comprehensive communications plan to ensure that all
stakeholders understand the implications of our new vision,
mission and brand positioning.
Motivating our people and living the BT values
Our commitment to meeting our customers’ needs presents the
104,400 people employed by BT at 31 March 2006 with
opportunities to develop innovative solutions, generate new
business, drive efficiencies and experience personal growth.
Our aim is to create a team of high-performing, engaged
and motivated people who can make a difference for customers,
shareholders, the company and themselves. Only by living our
values will we deliver our strategy, keep our promises to our
customers, seize new opportunities in new markets and
maximise the return from our traditional business.
Motivating leaders
The quality of leadership in BT is key to the successful delivery
of our strategy for transformation and growth. We are focused
on ensuring that leaders at all levels understand what is
expected of them, have access to appropriate development
opportunities and are able to benchmark their performance
against that of their peers. We have, for example, rigorously
defined the capabilities we expect our leaders to exhibit and
have introduced a 360 degree feedback tool to help them
measure their performance.
Engaging and motivating our people
Our annual employee attitude survey was conducted most
recently in February 2006 and attracted a more than 75%
response rate (80,000 responses). The survey generates around
5,000 feedback reports for managers and their teams across
the business, helping to promote effective team working.
Employees are kept informed about our business through a
wide range of communications channels, including our online
news service, bi-monthly newspaper, regular e-mail bulletins
and senior management webchats and webcast briefings.
We have a record of stable industrial relations and enjoy
generally constructive relationships with recognised unions in
the UK and works councils elsewhere in Europe. In the UK, we
recognise two main trade unions – the Communication Workers
Union and Connect. We hold regular meetings between
management, employee trade union representatives and other
groups of employees in order to ensure that their views are
taken into account in any decisions affecting employees’
interests. We also operate a pan-European works council (the
BTECC). Our Chief Executive and other senior executives have
regular meetings with the BTECC and other employee
representatives.
Rewarding and recognising achievement
We continued to provide our employees with opportunities to
acquire a stake in the company. Under the BT Employee Share
Investment Plan (ESIP), BT can provide free shares to
employees and employees can buy shares in BT from their
pre-tax salaries.
In the 2006 financial year, £22 million was allocated to
provide free shares to employees under the ESIP. Employees
outside the UK receive a cash payment equivalent to the value
of the shares. This allocation of profits was linked to the
achievement of corporate performance measures determined by
the Board. In addition, employees can buy shares at a discount
under our savings-related share option plan.
Operating and financial review BT Group plc Annual Report and Form 20-F 2006 17