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BT Performance Management: Background

3 April 2008

In February 2008, BT advised the CWU of the unilateral removal of the informal Performance Improvement Plan (PiP) from the Managing Under Performance procedure, starting with Operate from 1 April 2008.

This action was on the back of BT's decision to put in place a new Performance Management System that would bring a degree of consistency to the Annual Performance Review (APR) and performance process and completely automate it. Some aspects of the system have now gone live in BT Operate, Wholesale and most of Group, with the system becoming live for the whole company by April 2009.

The Union has major difficulties with BT on many aspects of their intended approach to Managing Performance, the impact on the Managing Performance Procedure and the impact on APRs. The difficulties with BT's approach are wide ranging and potentially very serious.

The Executive is concerned that the approach being adopted by BT is to both increase the number of 'managed exits' from the business and to pave the way for Performance Related Pay. As these issues are so serious, branch officers are meeting the head office team on Tuesday 15 April 2008.

Performance Management Issues

Removal of Informal PiPs

The key issue for the union is that although the informal PiP is an unpopular tool, and was in the past was abused by managers, informal PiPs rarely led to formal warnings and thus dismissals. Our concern is that without that informal process, our members will be placed straight onto a formal PiP and thus onto the formal warning procedure.

Abuse of 'Generally Satisfactory' Ratings

One of the reasons the Union was unable to make progress on the issue of the informal PiPs, is that the guidance made clear the company's intention that anyone receiving a Generally Satisfactory (GS) rating in their APR would automatically be placed on a formal PiP.

BT has clarified that the only acceptable performance is 'Good' performance or better. In our view 'Generally Satisfactory' means exactly that - that our members' performance is at an acceptable level and should not be responded to in a punitive manner.

We have pointed out to BT that in the best case scenario, that could mean someone being dismissed from BT within 24 weeks of receiving their APR rating, despite their performance being satisfactory.

Annual Performance Review Issues

1. QPRs/APRs: The union's primary concern is that managers will be obliged to enter a rating first but will then not necessarily be obliged to have a follow up discussion with the person being appraised.
2. Levelling: The union does not see the need or desirability for levelled ratings on a quarterly basis. Levelling should be an educational process for the manager and should not involve changing the members' markings.
3. Third party posting: The union does not see the necessity or desirability of facilitating third party postings on appraisal reviews that are not at the explicit request of either the manager or the member.
4. DPR / APR disputes: We accept and endorse the view that an informal approach is a precursor to formal grievance hearings. However, the union is seeking confirmation that when a formal grievance becomes appropriate / necessary, the grievance must be lodged with someone who is competent to deal with it.

Summary

The CWU believes strongly in a transparent, consistent, accessible and fair method of annual appraisal - we are concerned that the company's proposals will not assist us in making progress to that goal.