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BT Global Services gets third CEO in 16 months

29th January 2010

The CWU is seeking reassurances that yet another change at the top of BT's troubled Global Services division won't herald major upheavals for the company's long-suffering workforce.

Ever since the dramatic departure of Francois Barrault in October 2008 - ousted after just 18 months in the job - employees have naturally felt uneasy about how they would be impacted by abrupt boardroom changes and a major restructuring.

The latest shock came earlier this month with the announcement that Global Services' current chief executive, Hanif Lalani, will leave in March after just 16 months in the role.

He will be replaced by Jeff Kelly, a US citizen which almost 25 years of IT services experience at the technology services firm, EDS.

Mr Kelly has been charged with building the ongoing overhaul of Global Services, which carries out major IT projects for large companies and organisations.

Prior to the division plunging into losses in recent years - triggering a series of financial write-downs totalling 1.6 billion - Global Services was seen as one of BT Group's major growth vehicles. Its plunge into losses, and the associated slashing of BT's dividend payments to shareholders, therefore rocked the confidence of investors and placed considerable pressure on BT Group's share price.

CWU assistant secretary Colin O'Callaghan stresses, however, that while members in Global Services are naturally concerned at the latest change at the top, things have moved on profoundly since the departure of Francois Barrault.

"The last transition was very worrying, but all the indicators we've seen so far suggest that Hanif Lalani has done a good job in steadying the ship. That said, people are naturally concerned when leaders change so suddenly, and will want to know why this has taken place.

"The CWU will be seeking reassurances, building on those we received last time round, that the direction of Global Services isn't going to dramatically change and that the change at the top won't negatively impact on CWU grades.

"Hanif Lalani is not going out with the same cloud over his head as Francois Barrault, but nonetheless it is a big surprise there has been this change."

Already Colin is hoping that a meeting can be held with the new CEO at a future European works council meeting.

Colin concludes: "Obviously the CWU very much wants to see Global Services continuing to turn the situation round and getting back on track. That's just as important to our members at it is to the senior management team - and the sooner that happens the better.

"Although Jeff Kelly is an unknown quantity to us at present, if he helps in that endeavour we'll be very pleased."