BT 2015 Annual Report Download - page 25

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Overview
The Strategic Report
Purpose and strategy Delivering our strategy 0ur lines of business Group performance Governance Financial statements Additional information
Transform our costs
e run lare and cople cost transforation proraes which are
led b a tea of internal consultants. he are  people. his aes
sense because the now our business better than anone.
heir approach is based on a ethodolo honed over ten ears and
underpinned b forensic data analsis stron overnance and the support
of senior anaeent to ae chane happen uicl and sustainabl.
his ear our underlin operatin costs ecludin transit were down
 reectin an  reduction in net labour costs and lower paents
to other telecounications operators. hese were partl oset b
increased prorae rihts chares reectin a full ear of  port.
e reduced our operatin costs b around 00 this ear. ver the
last si ears we have reduced our operatin costs and capital ependiture
b around .bn.
ur larest cost transforation activities are driven top-down. he
iht be end-to-end proraes spannin ultiple lines of business or
cople chanes contained within a sinle line of business. ontinuous
proveent  provides a copleentar botto-up approach.
aes sall but iportant chanes to how we do thins ever da
and has the added benefit of iprovin eploee enaeent.
o strenthen cost transforation  and its application throuhout
the business we have an in-house  cade. he  cade is
responsible for the continued developent of our chane professionals.
his ear alone it has trained and coached ore than 100 people.
 is the onl UK oranisation currentl licensed b the ritish ualit
oundation to certif ualifications to the ost advanced levels in ean
i ia and hane anaeent ethodoloies on such a scale.
roraes this ear included
 tain tried-and-tested ethods fro the UK and usin the
overseas to reduce cost of failure iprove ecienc strealine
oranisational structure and et better value for one fro suppliers
 identifin how we can iprove the utilisation of our enineerin
teas and standardise the wa the wor. e can reduce the nuber
of enineers reuired at a particular location b investin in their
trainin to ae sure the are ulti-silled. his prorae has
identified opportunities to reduce costs while shortenin deliver
ties on core products lie thernet
 tihtenin up our contact centre operations b closin down sall
inecient centres standardisin technolo and processes and
rebalancin and reprioritisin activities between the UK and overseas.
etter tools trainin and utilisation of our service colleagues have
ade the ore productive and helped the answer enuiries fro
custoers ore eectivel
 reducin the cost of failure across the lifeccle of our  sstes.
desinin and developin the better the fail less often
iprovin service and reducin cost and
 launchin our new roup-wide entral usiness ervices capabilit
eectivel a shared service centre to support contract anaeent
and accountin procureent financial services and . his
siplifies the wa we wor and eans we can share best practice
toiprove ecienc and service.
ooin ahead we are focused on a nuber of areas includin
 reviewin the eectiveness of our sales teas to reduce
adinistrative eort and focus people on what reall atters  sellin
to custoers ensurin we have the riht people with the riht sills
alined to the best opportunities in the aret and b revisin our
incentive schees to better alin with desired outcoes
 lare end-to-end proraes specificall focused on iprovin
custoer eperience in a nuber of deliver and repair ournes
throuh reducin waste in the process and ain it easier for our
custoers to interact with us
 rationalisin and standardisin our products networs applications
and platfors to reove copleit and reduce the cost of failure
and
 reviewin the eectiveness and ecienc of the bac-oce teas
that support our custoer-facin people.
e benchar what it costs us to do business aainst other lare
telecounications copanies. e eep ain proress but we
can still see ore that we can do. e also loo beond the world of
counications to see what lessons we can learn fro other industries.
e are confident that there are plent of opportunities to reduce
costsfurther.
ou can read about cost transforation within our lines of business fro
pae . nd the roups perforance on operatin costs is described
on pae .
Cost transformation within
our lines of business from page
53
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