- Lacking career development path
In the flatten BT structure, there is no title and no promotion. So it's really slow for people to develop within it (merit increase is 3%-5% at year end which is nothing as it hardly beats inflation rate). Higher management need to figure out a way to give people more motivation. You got the talented people and they are learning and contributing so much, you need to let them progress better than it is. Title does not matter but pay needs to reflect well of what people do. Sometimes you feel each person is doing 6 people's job(dev, qa, unix, dba, prod support, build & deploy) in a tradition IT world but they r not getting paid that well.
- Pay is 20%-30% less than outside
It's great for new graduate because they will be ok with low pay at the beginning and the strategy is to hire more new graduate/young people (60% of BT ,if not more, are in 20s). But if pay is not competitive with outside, Young smart people will leave in about 3 years.
- Lacking good business model to generate more revenue
Business needs to work hard to create new business model to generate better outcome for your customer which in return will generate more revenue to pay your talents inside. Otherwise it's not sustainable.
