ICL Pathway
Bringing
Technology
to Post Office
Counters
October1999
FUJ00058187
'UJ00058187
Monthly
Progress
Report
POH-402D
FUJ00058187
FUJ00058187
ICL Pathway Programme Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
Document Title: ICL Pathway Monthly Report - October 1999
Associated Documents:
Reference Vers Date Title Source:
[1] I PM/PRO/O02 1.0 26/09/96 Pathway Programme - Project
Planning, Reporting and Control
‘Approval Authorities:
Name Position Signature Date
J. H. Bennett Managing Director
COMMERCIAL IN CONFIDENCE Page 1 of 41
4
FUJ00058187
FUJ00058187
ICL Pathway Monthly Progress Report
Contents:
¢ Managing Director’s Summary
-
Fe Development Report
=_ . 5 .
= Commercial & Financial Report
4 Customer Requirements Report
S Customer Service Report
& Quality & Risk Report
=. .
Es 3 Business Development Report
Implementation Report
Organisation & Personnel Report
Post Office Client Report
FUJ00058187
FUJ00058187_
Arevuruins
§ 10199I1q
SsuIseUurWI
in
FUJ00058187
FUJ00058187
ICL Pathway Managing Director’s Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
Managing Director’s Summary
PROGRAMME PROGRESS
© As of 5 November 1999, 1811 Post:Offices had been installed and migrated to
the Horizon system achieving the programme milestone target of 1800 live
outlets. This was a major achievement forthe programme and has resulted from
the hard work and.co-operation of all parties, both in ICL, POCL and our key
suppliers.
e Payment was received on 22 October for the £68m Acceptance milestone, and
the invoice has been submitted for the £90m Implementation milestone which is
due.for payment within 30 days of 5 November.
e Discussions with suppliers concerning productivity improvements and revised
roll-out activities are now taking place and a review plan.has been created to
learn and respond to the lessons learnt. All this is being conducted such that we
can make improvements in preparation for the re-start of roll-out in late January
2000.
e A programme of demonstrations and assurances for POCL and our ability to
provide the capability, robustness and contingency for the training schedule and
the-administration systems’is.in hand. This will address recént POCL concerns
over training scheduling giving them positive feedback against their roll-out
criteria.
* Over 16,000 outlets are now properly scheduled into the infrastructure
programme with the remaining 2,000 or so not yet released from POCL. We
are reviewing with.POCL the process for releasing the suspended outlets so that
we can complete the infrastructure programme on a timely basis.
* Discussions with the Horizon team regarding the 2000 Delivery Plan is now
‘making good progress. Thereis:now broad agreement that CSR+ should be
delivered as one release and not broken into multiple phases. Also we are
working to an approach which will reduce the user confidence testing and gain
time in the end programme release date. Release authorisation for CSR+ now
looks likely to be available during September 2000 for release to the live estate.
¢ Too many Reference Data errors are being distributed to the live estate which
has been causing major problems with reconciliation and cash account
production. We are pressing for a full end-to-end review across Horizon as well
as Pathway such that solutions can be found and implemented prior to a roll-out
restart in January 2000.
e¢ Members of the Parliamentary IT Committee, both House of Lords and House
of Commons had a successful visit to Feltham on 26 October. POCL joined us
and shared the presentations which were well received.
© National Audit Office (NAO) have continued with their-information gathering
on the cancellation of the BA Payment Card.
COMMERCIAL IN CONFIDENCE Page 3 of 41
FUJ00058187
FUJ00058187
ICL Pathway Managing Director's Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
© POCL’s Network Banking business have issued an ITT for an ATM service. The
contract is aimed at high street banks, but there are opportunities here for ICL.
We are working with Financial Services who will lead:the bid
ACCEPTANCE
e Careful attention has been given to progressing the Acceptance Resolution
Timetable plans for all outstanding former Acceptance Incidents. A number of
review points are in hand during November such that we can reach the major
Acceptance Review on 24 November with these actions satisfactorily completed.
e The monitoring of the three big Acceptance Incidents (AI298, AI376 and AI408)
have all. rin into difficulties in varying degrees with the common theme being
the potentially unsafe state of operation of Reference Data’ within the end-to-
end model. As mentioned already the end-to-end workshop is the critical
process for finding an acceptable resolution to this complex area.
ISSUES
e Managing the Acceptance Resolution Plan during the balance of 1999 will be
critical to our clean start in year 2000. Within this the Reference Data.end-to-
end concerns are the most important and do require a positive joint attitude
from POCL.as well as careful planning and defensive mechanisms from within
ICL Pathway:
e Help Desk performance.has-improved against most SLA targets. The expert
domain to handle complex POCL business rules around.office balancing remains
difficult, will not be easy to improve substantially and is.a source of criticism
from POCL.
e Energis/BT have just informed us that there are many more Post Offices which
cannot be connected to the ISDN network despite all their previous work over
the last-three years. We are now pressing hard to get a clearer understanding of
the issue and to work out what a resolution plan would need to be.
e We suffered a serious operational outage during the month, due to a
catastrophic failure within the Energis network which although it.did not bring
our system down did cause a large number of NT errors requiring system re-
load.
e The ISDN communications protocol on the EICON card has a communications
fault which is delaying software distribution to our counters and must be fixed
during the winter review period.
° As we approach the millennium we are increasing our vigilance on business
continuity planning and are looking hard at all testing scenarios concerning Y2k.
COMMERCIAL IN CONFIDENCE Page 4 of 41
——
——
——
NA
hr
——__—~
FUJ00058187
FUJ00058187
Development
Report
FUJ00058187
FUJ00058187
ICL Pathway Development Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
Development Report
MONTHLY SUMMARY
e The level of effort required to support the ‘Acceptance Rectification Plan’
reduced considerably during October. One or two incidents did occur which
required intensive activity, fortunately only a few development people were
impacted, enabling the majority of the team to focus on the future releases.
© The.Sequent SE70’s which ran the host.and warehouse applications have now
been successfully replaced by NUMA-Q configurations. The future of the spare
NUMA configurations is now being actively pursued.
° The SIP16 release, which comprises of enhancements to the cash account and
reference data elements is in the final stages of testing and is expected to be
delivery into the live service in. late November as planned, provided POCL can
supply the appropriate reference data. The EPOSS reconciliation facility has
been handed over to B&TC who have commenced ‘blitz’ testing. This is due to
be distributed to the existing estate before Christmas.
e The discussions with Horizon regarding the year 2000 delivery plan have been
progressing well. The review team is scheduled to present their findings and
proposals to Horizon/POCL/ICL Pathway Management on 3rd November. They
have accepted Pathways assertion that it would be too complex and risky to
divide or phase‘in the CSR+ functionality and have also concluded that their
business case for doing so is not convincing. We anticipate an approach which
shortens the ‘user confidence test’ stage and introduces.a live pilot activity
lasting 3 to 4 weeks. This would result in CSR+ gaining ‘release authorisation’
for the live estate in early September ‘2000.
¢ The Technical Integration and Business & Technical Conformance teams
continue to make good progress, particularly with the SIP16 release. The issues
regarding the speed and accuracy of rig building and the level of internal change
remain the main challenges for the development management team.
e Progress on CSR+ is broadly in line with version 9 of the plan and the slippages
which have occurred are measuréd in days and actions are in place to recover
the lost time.
e The performance and capacity of the existing CSR system has become a source
of concern and is receiving considerable attention..An detailed action plan-and
delivery schedule is currently being: developed which will ensure that these
problems are overcome before roll-out recommences in late January 2000.
© The recent revelation from Energis/BT that there are many more postal outlets
that cannot be connected tothe ISDN network has come as an unwelcome
surprise. Energis have been requested to respond formally, stating their
recommendations for resolving-the issue.
COMMERCIAL IN CONFIDENCE Page 5S of 41
FUJ00058187
FUJ00058187
ICL Pathway Development Monthly Report Ref: .PA/REP/043
Version: 1.0
Date: 15/11/99
PROGRESS
e The Main APS test rig is continuing to experience problems’with building the
software configuration. Daily reviews are being held between the various parties
to overcome the issues-and recover any lost'time. Horizon has now confirmed
in writing that British Gas (SPM) wil! not take part in interface testing in
November. The full.implications of this are still being evaluated but.it may mean
that SPM slips beyond CSR+ and into the AP client. migration programme. The
HAPS and Quantum interface. testing remains on schedule although Siemens are
expected to raise change requests against the baseline AIS.
¢ Rig building problems have also hindered the LFS testing but these have now
been largely overcome.
e The EPOSS Reconciliation enhancement for CSR has been handed over to
B&TC who have commenced blitz testing. Development for CSR+ is underway
but has run into problems with version 2.2.3 of the desktop. These are being
investigated.
e The final witnessed testing phase of SIP16 is progressing well with very few
incidents being raised. The main concern lies with POCL who are having
difficulty satisfying the agreed interface-specification. If this cannot be resolved
it will seriously impact the ICL Pathway delivery scheduled 1999 and 2000.
* The system infrastructure activities (e.g. autoconfiguration, tivoli, audit, FTMS
etc) are progressing to plan but here to we are-experiencing problems with
building cohesive software configurations. Actions have been takén to'resolve
the issues.
e Progress with system testing the ‘secure builds’ is going well and after a difficult
start withVPN testing, it too is now gathering momentum. Data Warehouse
testing is progressing with high pass rates and the activities associated with the
RODB and OCMS systems are currently on schedule.
¢ Test analysis and scripting work related to CSR+ increments 3 and 4 proceeds
to plan while test execution of SIP16 and the EPOSS reconciliation upgrade
continues in parallel. B&¢TC are struggling to keep up with the level of internal
change proposals and this is being addressed.
COST DOWN
¢ There were no new initiatives in October although the team continues to
exercise very tight control. with manpower resources.
COMMERCIAL IN CONFIDENCE Page 6 of 41
FUJ00058187
FUJ00058187
ICL Pathway Development Monthly Report : Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
CURRENT CRITICAL PROBLEMS
e A fault has been identified in the EICON card which supports the ISDN
communications protocol. This is seriously impacting our ability to distribute
software updates to the counters in an efficient manner. It is also responsible for
generating many unnecessary and long calls resulting in additional network
charges. We have been in contact with the European Service Organisation and
EICON support in Montreal to help resolve the problem quickly.
e An unexpected and as yet unexplained fault in NT resulting from a
communication ‘power down’ caused a large number of ‘blue screen’ incidents
in the outlets to count against Acceptance Incident 298 during the formal
monitoring period:
e Too many reference data errors are being distributed to the counter. End to end
design reviews are being held to establish what action can be taken swiftly to
prevent thesé occurring in the future. These are having a major impact on
Acceptance Incident 376. In addition, the performance of the data distribution
process is inadequate and must be improved before roll-out commences in late
January 2000.
© The Pathway testing team is questioning the quality of the ‘Reference Data’ *
being supplied by POCL during the. final stages of testing SIP16. If this cannot
be rectified satisfactorily, it will delay the implementation of this upgrade arid
have a knock-on impact onto subsequent releases. cd ie
ISSUES
e The speed and accuracy of the rig building process is not meeting the planning
assumptions. The Development Management Team is seeking ways of
improving this process and recovering any schedule slippage that has occurred.
e BT and.Energis have indicated that there will be a significantly greater number
of outlets not:able to connect to ISDN than first thought. The model used by BT
to establish ISDN feasibility would appear to.have been flawed. They are
suggesting that we should consider a satellite solution and this is being
evaluated. We are.also asking them to respond to us formally stating the precise
position and recommending a way forward.
e A proposal for the lightweight mobile configuration required to operate in a
variety of locations throughout thé UK, has been submitted to POCL. It does
not include a receipt printer and will only be connected to the Data Centres
from the home base ize. it will be free’standing when operating in the remote
locations.
e The.live: performance monitoring activity has:identified a problem with the
capacity of the ISDN Network and CISCO router configuration. An action plan
has been produced which will resolve the problem and this will be presented to
the Management Team within the next 2 weeks.
COMMERCIAL IN CONFIDENCE Page 7 of 41
FUJ00058187
FUJ00058187
ICL Pathway Development Monthly Report y Ref: ebcadha
ersion: 1.
Date: 15/11/99
e It is becoming increasingly certain that we must intercept Riposte 6.0 for CSR+.
This has exacerbated the problem associated with testing Riposte 5.5 in that
there is more functionality included which requires specific testing. Previous
indications suggested that saturated usage would be sufficient testing.
e POCL expect under the terms of the new agreement i.e. time and materials, to
closely monitor our resource consumption during the design and development
of any new product or service. Their expectations could put a huge burden on
the administration. resources within our Programme office.
COSTS
© The 1999/2000 development forecasts demonstrate that even with the
additional development resulting from the rectification plans costs remain under
tight control and subject to regular financial reviews throughout the year.
COMMERCIAL IN CONFIDENCE . Page 8 of 41
FUJ00058187
FUJ00058187
yoda
jeourny =
99 [elDJowUIO’T
lI
I
I
tll
I
i
\
FUJ00058187
FUJ00058187
ICL Pathway Commercial & Financial Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
Commercial & Financial Report
MONTHLY SUMMARY
¢ Following invoicing for Acceptance at £68m in September, payment was
received by wire transfer on 22nd October, two days ahead of thé due date of
24th (a Sunday).
e The ‘upside’ roll out target-of 1800 post offices was achieved on. Sth November,
enabling:us to invoice the higlier figure of £90m. rather than the alternative of
£80m for 1600 post offices. An.invoice for £105,162,500 including VAT was
couriered to POCL on Monday 8th November and POCL’s confirmation of
receipt was received on 9th Noveinber. Payment is due on Sth Decémber, which
is another Sunday.
e As doubtless reported elsewhere by my colleagues, there has been. intense
activity on the post Acceptance/ pre January roll out decision front, and this will
intensify further in the run up to 24th November and beyond. Reference data is
the big issue. Some resolutions must be found before roll out can safely restart
on 24th January. As a measure of the exposure, we face a claim from POCL
(which we are disputing on the grounds that they authorised it) of some £300k
in respect of just one reference.data error.
e An up-to-date Forecast, a Budget'and.a Five Year Plan have all been submitted
to Group during the past:month. The Forecast assumed that the 1600 roll out
milestone would be achieved, consistent with Second Supplementary Agreement,
but that the original 1800 milestone would not. Hence Forecast revenue, profit
and cash should all be over-achieved this quarter. More on the Pathway Business
Case below.
e There has been continuing progress on CCNs, with the JCCB providing a focus
for action. More progress is still required for this to be wholly satisfactory, but
the tide is gradually turning in our favour.
© There has been significant activity on the subcontractor front (Workplace
Technologies, Energis, OSD, Fujitsu) aimed at both cost down and quality of
service.
e. ICL Treasury have agreed.in outline.new terms with the Pathway’s lenders (DKB
and BOTM). These réschedulé the debt repayments to.reflect the new Pathway
/POCL contract phasing and also provide more flexibility for ‘second’ draw-
downs. The downsides aré that the banks’ margins'go up significantly and we
will need to take the new arrangements to POCL for their agreement.
PROGRESS
e Acceptance payment of £79.9m including VAT received on time.
© Roll Out of 1800 achieved and invoiced.
COMMERCIAL IN CONFIDENCE Page 9 of 41
FUJ00058187
FUJ00058187
ICL Pathway Commercial & Financial Report Ref: I PA/REP/043
Version: 1.0
Date: 15/11/99
e First level cross-checks of Pathway financial projections have been completed
between Actuals, Forecast, Budget and Business Case; year by year.
¢ Banking arrangements.
KEY LEGAL ISSUES
e None.
BUSINESS CASE
© The Business Case model has been substantially:modified. It now calculates
every line item on a monthly basis through to the end of the contract, and had
all cost parameters and algorithms recalibrated to reflect fully the Codified
Agreement and its two Supplements. It also now presents the costs for each of
‘Devélopment, Implementation, Customer Services aiid HQ iia way which ~
matches Actuals and Forecast and which will enable each Unit Directorate to
review and take ownership of its part of the plan to March 2005. Up to March
2001, it feeds off the same Headcount and manpower cost database as does the
Forecast.
e Balance Sheet reconciliation has been carried out line by line between the
Actuals, Forecast, Budget and the Business Case. Changes have been made to
each of the Forecast, Budget and Business Case as a result. Some.small
differences remain and these are being worked on for the next Forecast due in
next Friday. A first level reconciliation has also been made at the individual cost
item level: more work is needed with the help of Business Unit Controllers to
eliminate remaining differences.
e The new model is being audited by Grant Thornton.
© Two versions of the Business Case have been considered and will be presnted to
the Management team next week, Option A assumes limited incremental
revenue over the life of the contract (some £15m) and an outsourcing./ sweat
the-assets / cost down approach. Option B assumes much greater success.in
developing the Post Office account and-consequently some £50im of additional
revenue (not counting any non-Horizon business and before any contract
extension). 7
e In programme terms, Option A assumes one more release (part maintenance,
part functional) after CSR+, whereas Option B assumes two full releases, one in
2002 and one in 2004. These logically would address Network Banking, client
re-engineering at large and Modern Government. The Development
organisation would continue as a core competency for Pathway throughout the
term of the contract, as would sales and consultancy functions. Under Option A,
all functions.get consolidated into Customer Services-except. for the rump
Development group who would, it is assumed, transfer into another part of ICL
who would undertake fourth line support for Pathway.
COMMERCIAL IN CONFIDENCE Page 10 of 41
FUJ00058187
FUJ00058187
ICL Pathway Commercial & Financial Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
¢ Option B assumes a positive relationship with the Post Office which opens up
opportunities for other Post Office business and contract extension. Option A
does not.
e The headline P&L and cash position for Option.A over the term to March 2005
appears better than those for Option B but not by much, and with less
opportunity to improve. Each option has a different risk profile, and these will
be explored at the Management team away day next week.
e The projected Option B project loss:at the Pathway Limited level remains at
£50m, and that at Group level at £15m. However, these figures aré.net of:a
number of overs and unders relative to the May Business Case. They include
both risk and task. A track will be presented next week, along witha description
of the perceived risks to be controlled and the opportunities to be explored.
e Cost reduction trigger points begin to occur during 2000/01, so decisions.as
between Options A and B will be required during the year.
RISKS
e A high level view will be presented for discussion at the Management Team
away day next week. It will be derived by consideration of Business Case drivers
and sensitivities and will need to be matched to the Risk Register view of risks
by programme element: This is planned as.a ‘next step’ between the two units to
improve the way the Risk Register and the Business Case get linked and cross-
refer from a baseline standpoint. :
© Major risks are, first, operational costs and LDs and, second, delay (to CSR+ o
and to roll out).
ISSUES
© Reference data end-to-end processes and controls. The concerns are that.POCL
have not taken the matter sufficiently seriously to date (although that-appears to
be. changing) and. that further system enhancements are called for to safeguard
Pathway’s financial position before-resumption of roll out.
« We were unable to convince POCL of our case over reference data without
resorting to what POCL regarded as undue escalation. That went down.badly
and caused a negative reaction, The right actions now appear to be underway
but we need to establish new conduits for better day to day communication and
‘step-by-step escalation’. The actions have Operations leading, with Programmes
in support: this is a significant change which calls for changes in the ways we do
things internally as well as between ourselves and POCL.
COMMERCIAL IN CONFIDENCE Page 11 of 41
ICL Pathway Commercial & Financial Report
FUJ00058187
FUJ00058187
Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
e Option B depends on the PONU and Post Office client facing units jointly
commissioning us to provide enhanced facilities. There is no sign yet that PONU
has.found a-way to attract-the attention of its internal customers. Network
Banking-are showing. all the:signs of doing their own thing (internet, banking
without regard to the Horizon:infrastructure).
FINANCIAL PERFORMANCE
e The-Controller’s report.follows.
COSTS
October 1999 Finance Comments
Headline Numbers:
Revenue
Project Costs before Capitalisations
Declared PBT Profits/(Losses)
Variance vs.
Actual Forecast
Project WIP 145,004 2,442
Net Fixed Assets 39,753 1,122
Total Borrowings 114,963 1,712
Headcount: Permanent 236 i?
Non-Permanent (ITs:and Temporaries) il (2)
(Memo): Freelancers procured through ICL IT Contractor Services 204 22
A&TC Scheduling Centre/ES resources used on project 130 16
COMMENTS
Month of October 1999 Cum. April - Oct 1999
Variance vs; Variance vs.
Actual Forecast Actual Forecast
216 6 71,558 6
11,979 2,466 78,485 2,466
(ql) 29 15,629 29
End of October 1999
e October was a quiet month - at least as far‘as revenue is concerned - sandwiched
between the acceptance and first milestone invoicing. Revenue related to
accrued income for.RFLinvoicing and CCN work on Euro symbol updating.
COMMERCIAL IN CONFIDENCE
Page 12 of 41
FUJ00058187
FUJ00058187
ICL Pathway Commercial & Financial Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
e On the cost front, there were widespread gains totalling £2.47m, but most of
these-related to lower levels of invoiced costs on site preparations, operational
support and training; these gains should reverse themselves-in the coming
months. Many subcontractors do:not appéar to be-matching the pace of change
in the roll out-rate and the level of support provided.to our growing live
operations base. Whilst this is good news on the short-term cash front, it also
makes it difficult to track progress on cost levels incurred, versus forecast.
© Of the "real" gains that arose in the month, £0.18m related to lower headcount
resource costs:and £0.16m to lower’IT support costs.
¢ In addition to the lower than forecast subcontract invoice. levels, there was also a
low level of deliveries in October from Fujitsu of PC units for the counter
equipment roll out. This was the main component behind the £1.1m variance
against forecast:in the levels of fixed assets.at the end of the-month.
e Borrowings:at the-end:of the month were:a relatively low £115m, which was .
£1.71m better than forecast. POCL paid the acceptance:invoice on time and ”
internal ICL bridging finance has now:been repaid. The VAT element of both
the acceptance and milestone invoices does not have to be paid over until 31st
December (total £27.6m). ”
COMMERCIAL IN CONFIDENCE Page 13 of 41
FUJ00058187
FUJ00058187
yIoday
sjuowolnbsay
Iwoisny Sz
FUJ00058187
FUJ00058187
ICL Pathway Customer Requirements Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
Customer Requirements Report
SUMMARY
e With formal CSR Acceptance now achieved, the team has regrouped around
the actions within the Acceptance Resolution Timetable. This contains
individual action plans for 13 former Acceptance Incidents (Als). These are
the pacing items for restarting rollout in January 2000. Some Requirements
activities have restarted.
DETAILED PLAN ACTIVITIES
ACCEPTANCE RESOLUTION TIMETABLE
e The Acceptance Resolution Timetable forms part of the Contract, as a result
of the Second Supplemental Agreement, and contains some 300 activities and
events that are pacing items for the restart of rollout on 28 January 2000.
These are grouped principally under 13 former Acceptance Incident headings.
e (Pat C): The activities are being reviewed weekly. Joint activities are being
split where possible to show the contribution of POCL and Pathway so that
documentary evidence may be available in the future in the event of POCL
non-performance.
e There are two further groups of former Als: those where there is a
disagreement-as to severity - None (Pathway) and Low (POCL)- and Low/Low
items. There-are now two or three of the former for arbitration (232, 242
and possibly 379) and 55 of the latter, for which one-line-resolution plans are
required by 31/10. Of these 55, 16 are against Security and those that are
Business Continuity related will only-close when we have a settled estate.
e At present the purpose-is to keep the timetable activities absolutely stable and
to force demonstrable completion of Pathway responsibilities. In places
POGL are redefining and rescheduling their activities but Pathway
contributors are under remit to disregard this.
© The 13 former Als are reported in Timetable order:
211: (John P) This.is now resolved and in monitoring until 31/10.
342: (Johin.P) This is now resolved, monitoring.is complete and formal
Closure has been requested.
e 390: (Dave C) A change to AP counter is due for distribution 30/11. It is in
test.
© 376: (John P) This area is of particular concern. The six-week observation
period has started. The work is in three parts: fixes yielding a target stability
figure of merit of a maximum 0.6% of Cash Accounts in error (approximately
42); additional reconciliation facilities; and new Operational Business Change
(OBC) procedures. Although all fixes.are implemented, problems arising from
Pathway Reference Data handling were encountered and are proving difficult
to-solve without letting through Cash Accounts in error. The definition work
for additional reconciliation is on plan and design is in progress. All the OBC
procedure work is completed. The POCL Acceptance Test Manager has left
COMMERCIAL IN CONFIDENCE Page 14 of 41
FUJ00058187
FUJ00058187
ICL Pathway Customer Requirements Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
the project and several new people are now involved and are not yet
familiarised.
e 378: (John P) A “diagnostic” fix is in place to find, and if necessary repair and
report, a problem not previously defined, We do not expect:to find such a
problem, believing it to have been an isolated incident whose:true cause was
not originally reported and is no longer present.
© 369: (John C) The actions in this group are largely the responsibility of
POCL. All formal Pathway actions are complete. The underlying issue is a
commercial one between POCL and DSS for the introduction to service of
OBCS (outlets are banned from using it). We have successfully rebutted all
attempts at implicating the bar-code scanner performance. ICL Pathway,
POCL.and BA mounted a four-day monitoring exercise. This provisionally
showed that there-is-a print quality issue with some of the benefit books. This
will be confirmed shortly when six. impounded books have been
independently analysed by PIRA (Printing Industry Research. Association).
¢ 372: (Dave H) A first report on the distribution.of Riposte.5.4.10 and EPOSS
‘roll-up release package has been produced for review and will be issued to =e
POCL (target 15/10). DLL corruption monitoring is not yet fully in place: CP
2116 is being worked on.
e 298: (Tony H and Dave H) The four week observation period will start on
21/10. (CCNSS5S has been raised to make the observation Cash Account
Week integral.) All fixes are available and a tracking document to record
progress set up. On the cut off date of 1/10 the test’sample was established as
782 eligible rolled-out outlets representing 1777 eligible counters. The target
is a figure of merit of four units per counter per year, a unit being an
authorised reboot or various numbers of workaround. The CAP 28 figure
result was‘around five units on a very good trerid. For‘CAP29 the result'rose
to around seven units because-of 376-type issues (see above), new offices not
being brought up to current software revision levels immediately before first
use and some offices not yet equipped with fixes for printer incidents.
e 218: (Dave J) The Pre-Entry Event actions have progressed well, now paced
by CCN 543a approval. Trainer Quality Monitoring actions have been
completed such that actual monitoring is in progress. The new PSA Process is
with POCL for approval. Post Training Consolidation actions are all Joint or
POCL. The Performance Measures on which the:eventual closure will be
based were due to be finalised 8/10.
* 391: (Dave J) Physical security of Wigan and Bootle. All actions to date are
complete or on target.
© 314: (Tony H) The’technical authors have started'work.on the manual
required, with first delivery by 23/11 and Appendices by 28/12.
e 408: (Dave C) All early actions are complete and the main one to recruit and
train the required complement of Help Desk staff is progressing to plan. _
e 412: (Dave C) Ad hoc service reports. The remaining actions are paper-based
ones for completion by 28/10.and are on track.
COMMERCIAL IN CONFIDENCE Page 15 of 41
FUJ00058187
FUJ00058187
ICL Pathway Customer Requirements Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
CSR
CSR+
The CEN to introduce new:Inland Revenue order books.into OBCS was
raised, From 05/10/99 these books are processed as a.simple‘EPOSS product.
Following CCN sign off POCL will advise the go live date to change
processing to OBCS.
Preparation.of SADD Version 5.2, describing CSR and CSR+, has restarted.
The Associated Document and CCN tables have been brought up to date.
Appendix B is being rewritten to remove DSS-related material (CMS/PAS/BES)
and to add material on Service boundaries between EPOSS and other counter
applications.
Sécurity Documentation: (Dave J) The Security Functional Specification and
Access Control Policy require reissue to strip out DSS content and simplify.
AP (Dave C): POCL has sought to add an unjustified level of detail into. APS
Reconciliation: reports. ICL Pathway's formal position has been documented
based on correspondence. We believe that POCL will agree to the current.
level being basélined, but,are seeking contractual guidance as to how their’ 4.
"extras" should be managed. We have provided POCL with a requirements Se
specification-for PISCES (Smart.Token) that describes ICL Pathway's a *y
understanding and identifies the areas where POCL must supply more a,
information. We assisted CS in preparing a Token Service specification.
POCL withdrew the CR and will provide a complete Service Description.
We have had a first.meeting,to define the pseudo-acceptance activities for.
CSR+ that will inform the RAB (currently scheduled for August 2000). Much
is predictable (Acceptance Criteria, Al, KPR and PinICL resolutions hung over
from CSR) but there is pressure to re-prove some Acceptance Criteria
particularly in the performance and security areas.
God
ho
OTHER ACTIVITIES
Dave H has provided some assistance to Utilities Branch for the Centrica
workflow bid, similar to that provided for the Post Office IWIM bid.
DOORS - We have obtained a licence extension and converted the new
Requirements schedule (Codified Agreement Schedule A15) into DOORS
format. The next logical steps are to extend this to top level contract
document (Solutions / Service Definition Schedules / SADD) and, decide how
to interface would be with other tools and processes particularly PVCS and
the existing CCN / CR / CP procedures. °
COMMERCIAL IN CONFIDENCE Page:16 of 41
FUJ00058187
FUJ00058187
ICL Pathway Customer Requirements Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
CURRENT CRITICAL PROBLEMS
¢ Itis essential that the estate software revision levels are complete and
operations stabilised, such that 376 and 218-type incidents are minimised.
ISSUES
e None.
COMMERCIAL IN CONFIDENCE Page 17 of 41
FUJ00058187
FUJ00058187
JIoday
sADS =
JawoIsny S=:
I
jitny
"My
FUJ00058187
FUJ00058187
ICL Pathway Customer Service Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
Customer Service Report
MONTHLY SUMMARY
e Although final figures are not yet available for October’s SLA performance,
there is a strong indication that we have achieved the minimum acceptable level.
¢ The SSC remains under enormous workload pressure. The number of calls
received in October was 1123 (compared with 815 in September and 536 in
August). Poor filtration at SMC is a major contributor to this problem and that
aspect is part of the current OSD Red Alert. A number of management and
working level meetings have been held with OSD and although a plan to address
the SMC failings is expected imminently from OSD its appearance seems slow.
As a temporary measure overtime arrangements are being put in place within the
SSC to help handle the extra load.
e The SLA workshop held with POCL on 27 October was successful in achieving
the goals documented within the AI408 rectification plan.
VITAL STATISTICS
At 31 October 1999
Installed Base: 1596 Post Offices, 3558 counters
e Total number of OBCS transactions to date 164m
e Total number of OBCS transactions in September 3.0m
. Number of books impounded 30,513
° No. of EPOSS Transactions to date 16.0m
¢ No. of EPOSS Transactions in September 7.0m
. Value of EPOSS Transactions to date £484m
© — Value of EPOSS Transactions in September £119m
¢ No. of APS Transactions to date 2.6m
¢ No. of APS Transactions in September 1.3m
. Value of APS Transactions to date £60m
° Value of APS Transactions in September £28m
COMMERCIAL IN CONFIDENCE Page 18 of 41
FUJ00058187
FUJ00058187
ICL-Pathway Customer Service Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
PROGRESS
OPERATIONS
AVAILABILITY MANAGEMENT
e Although final figures are not yet available for October SLA performance, there
is a strong indication are that we-may have achieved the minimum acceptable
level.
¢ A technical review of the Riposte index corruption on correspondence servers
and counters was held with POCL on 27 October. Questions raised by POCL
were-answered at the review. The responses will be:detailed in a follow up
memo. A fix is.currently being tested.
© A power failure on the Energis network switch at Kearsley triggered a successful
network fail over to the backup switch at Birmingham, Serious network
congestion. was experienced as a result of this failure and it coincided with arash
of ‘Blue Screen’ problems requiring counter re-boots. Energis have already
issued an-interim report.on the failure and a full report is expected from them
by close of.business on Friday Sth November.
© The NUMA-Qs, replacing the SE70s, in the Data Centres became fully
operational during October.
CHANGE MANAGEMENT
SOFTWARE DISTRIBUTION
e The software distribution mechanismi.is increasingly.suffering from a persistent
but varying tail of post offices that fail.to receive software. fixes on the first pass.
Daily statistics are being prepared on counters that consistently fail software
distribution and investigations are continuing to focus on these counters. The
flow of Acceptance Incident fixes is now much reduced although the overall
volumes remain high.
© Workload on Release Management remains high but should be alleviated when
the new Release Controller is up to speed.
Reference Data
e The quality of POCL supplied Reference:Data is being discussed within Pathway
and POCL. Pathway are considering what actions can be taken, both by
Pathway and POCL, to improve the quality of the supplied data and reduce the
risks of incorrect data being supplied to the live estate counters.
¢ The.initial.incremental update to Reference. Data for SIP16 was delivered to
Pathway last week, however: there have been a number of issues with this data
and a.meeting has been arranged to discuss and agree the way forward.
COMMERCIAL IN CONFIDENCE Page 19 of 41
FUJ00058187
FUJ00058187
ICL Pathway Customer Service Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
¢ A total of 483 reference data changes were released into the live service since the
last report. The total number of PinICLs on POCL with respect to Reference
Data is reduced to 25.
e An unfortunate misuse of the Operational Business Change process by POCL led
to changes to buttons for Girobank operations moving to new screen locations
before counter staff were informed that the change was to occur. The Counter
News for this change was still in preparation at the time that the buttons moved.
Pathway is reviewing, with POCL, possible modifications to the procedure to
avoid such problems in the future.
SLA.MANAGEMENT
APS
e A meeting was held with POCL to deal with the Polling Exception Report-and
the Late Polling Report issues. Pathway explained to OSG how the report is
generated and showed ir.to be correct and OSG accepted the explanations.
POCL have also agreed that Incidents need_not be raised for offices not polled
for a single day. POCL BSM has.agreed to phone those offices to check that. “=
they have not turned off the equipment and to emphasise the reasons why they
should. not turn off equipment.
CTO
e At POCL’s request, 4 additional CTO schedule cycles have been introduced into
the timetable, to enable POCL to add in extra tokens outside the regular
schedules. A plan for the introduction of a CTO schedule'to go live in January
2000 has been produced which POCL have agreed to but the charging structure
has yet to be finalised.
AP Client Migration
TIP
e Although good progress is being made regarding migration activities, visiting the
Clients and establishing AIS/TIS requirements is lagging behind the planned
schedule. The first AP Client is not to be visited until w/e 5/11/99. This presents
potential for increased risk to the project since Pathway cannot detail the work
to be undertaken within Development and Implementation without first
establishing the AIS/TIS requirements.
° A steering meeting was held with the customer and progress is now being made
on the agreement of OLAs. However, POCL have made no progress yet-on
specifying their requirements for an interim Disaster Recovery (DR)
contingency, or their proposals for the long term DR solution.
COMMERCIAL IN CONFIDENCE Page.20 of 41
*
FUJ00058187
FUJ00058187
ICL Pathway Customer Service Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
SUPPORT SERVICES
SYSTEM SUPPORT CENTRE
e The SSC remains under enormous workload pressure. The number of calls
received in October was 1123 (compared with 815 in September and 536 in
August). Poor filtration at SMC is a major contributor to this problem and that
aspect is part of the current OSD Red Alert. A number of management and
working level meetings have been held with OSD and although a plan to address
the SMC failings is expected imminently from OSD its appearance seems slow.
As a temporary measure overtime arrangements are being put in place within the
SSC to help handle the extra load.
e Asenior SSC member of staff spent time-early in the month at the SMC to
review the event management activity. The subsequent report.and
recommendations have been reviewed with OSD management and.a resulting
action plan is expected. _
¢ The number of special. Acceptance Incident-related reports that the SSC has had
to produce has reducéd somewhat this month. However, the administrative
overhead of handling calls raised, as a result of the Non-polled Offices Report,
remained significant.
° A response was provided to the set of queries-raised by Jeremy Folkes (POCL)
concerning the implementation of message store corrections undértaken by
Pathway to resolve the Transfer problems caused by a référence data error.
e As part of a wider CS/OSD review of the CFM001 contract (now to be termed
the ICLO001 contract), a set of detailed changes to the definition of those 4th line
support services provided under the auspices of the contract-has been:drawn up.
e An initial list of out-of-hours.contacts from Pathway Development has been
provided.
e A&TC have been briefed on the requirements to fill five SSC slots but just one
candidate (who then withdrew) has so far been offered. The.recruitment net is
thus likely to have to be widened.
_ SSC Issues
¢ Out-of-hours support for APS not in place within A&TC. This matter has been
escalated to Nigel Forbes who has agreed to assist.
e Although PowerHelp:is.now upgraded to a Y2K compliant version and PinICL
has also been tested for Y2K compliance, no test between the two systems over
the OTI link has been carried out. This issue has been escalated to Dave Riglar
(OSD’s Service Manager for Pathway)
COMMERCIAL IN CONFIDENCE Page 21 of 41
FUJ00058187
FUJ00058187
ICL Pathway Customer Service Monthly Report Ref: PA/REP/043
. Version: 1.0
Date: 15/11/99
Metrics.
Aug. Sep. — October.
Total Calls raised through SSC 536-815 1123
Total Calls closed through SSC 529 737 1070
Total Calls passed to Development 332
(Of the total calls closed 639 were in categories (e.g: Advice and Guidance,
Published. Known Error) which should have been closed by SMC).
Operational Test Team
e The flow of changes to the live estate continues at a high rate. Acceptance
Incident-related changes featured significantly through the month, though it is
hoped that these will soon slow somewhat and OTT can test some other changes t
(e.g. in relation to RODB Pearce) which have been awaiting a testing slot. .
e A number of issues of the Release Schedule have:been produced. This.schedule -
itemises CSR changes, including PinICL fixes.and CPs, and.targets their release
in relation to.key events, e.g. SIP16, Y2K, restart of National Rollout, etc.
In preparation for CSR+ members of OTT (and SSC) have attended workshops 2
on VPN. : :
e Release introduction management activities arenow tightly focussed on SIP16.
OTT Issues
e Large CP developments are being delivered without sufficient integration testing
by Development, leading to problems in OTT testing. This issue is being raised
with Development.
INFRASTRUCTURE SERVICES
Business Process Engineering
e Plan for resolving HSH/SMC procedural weaknesses
COMMERCIAL IN CONFIDENCE Page 22 of 41
FUJ00058187
FUJ00058187
ICL Pathway Customer Service Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
e The procedures for the HSH/SMC are critical to the success of the end-to-end
incident management process. Bob Davis has:met twice with Brendan Nugent
and some of:his'staff to discuss the current position relating to procedures. This
confirmed. that (a) there are current procedural shortfalls and (b) additional
working interfaces with HSH and SMC are required to make sure that Pathway
and OSD work together more effectively. Bob plans to introduce new joint
working activities. Firstly, current procedural weaknesses will be contained and
then optimum business effectiveness will be achieved.
-e Plan for improving process/procédural issue management in Pathway CS
e Earlier this year Bob Davis presented ideas on.process and procedural issue
management to the CS. Management Team and obtained approval to implement.
The time is now right to evolve the original ideas to make it easier for anybody
in Pathway CS to raise process or procedural issues. Management of the issues
by his team and joint working will ensure that business effectiveness is
optimised.
Management Support ~ : rs
e The team has-been involved in all of the major Acceptance Incident rectification
plans with a good deal of work completed for Al408, AI376, Al412 and AI298.
They have. iad success.in resolving the non-polling issue, although Pathway does
need to take a grip of this problem, as whilst we do not have to raise incidents
on all occurrences, we do neéd to identify at source why this is happening so
frequently.
Business / Reconciliation Incident Management
e Received the go ahead for the development of the new RED database. There
remains an issue over RED report distribution, which will be:tackled jointly by
Development and MSU - perhaps using the same process as is used for the
Problem Management database.
e Still awaiting the introduction of the automated non-polling report. This is
currently being tested within OTT 8 there have been a few minor glitches
identified. It is hoped that this will be available mid November.
e Management Information:
¢ Notable success in delivering the September SRB within the 5 working day time
scale.
© The SLA workshop held with POCL on 27 October was successful in achieving
~ the goal documented within the AI408 rectification plan. MSU presented the
end to end SLA process from transaction capture within the DWH to the
reporting of SLA information via SLAM. MSU also presented an analysis of
September's HSH SLA calculations, which have been re-worked following
incorrect housekeeping processes at the HSH. POCL have accepted that our
procedures for this re-working are sound, however they have:requested some
further examples of re-worked HSH calls from the Al408 monitoring period to
check for consistency of approach.
‘COMMERCIAL IN CONFIDENCE ° Page 23 of 41
FUJ00058187
FUJ00058187
ICL Pathway Customer Service Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
Desktop I.T.
e The majority, if not all, staff in Fel01 now have MS exchange accounts.
e The fileservers are becoming full. One-in particular is cause for concern and
MSU have raised this with OSD. They have produced a plan for resolving the
problem.
Strategic Services
© The following is:a list of the top.5 Postmaster issues collated by discussion with
the PLMs; BSM,.and reviews of Service-Visit Reply Cards and call records.
* HSH
- Not getting through
- Not getting a quick resolution
- Failure to call back
- Failure to get a consistent answer
- Calls passed between helpdesks
e Printer problems
© Slow system response times at some sites
e Suspense account training inadequate ie
© Pre installation - Too many visitors.
Each of these issues will be thoroughly looked into.
¢ In order to ensure that POCL share ICL Pathway’s confidence in the robustness 2
and flexibility of the tools and processés used.in HSH Resource planning, ICL
Pathway has held a workshop with POCL to cover this topic in more detail.
The objectives of the event being: -
© To enable POCL to.gain understanding:and. have confidence‘in the overall
philosophy of the call volume*model and. it’s relationship to the resource
planning model.
e To discuss and explain the factors and logic that-apply to the modelling of call
types and call profiles
° To explain the iterative management processes that are supported by the model
e To review the impact of Cash Account related calls on service levels
Action no’s 6 & 7 (below) of the SLA Rectification are now complete.
6. I Train and introduce additional HSH staff ¥ 26.10.99
in light of monthly updates to Call Volume/HSH Model.
7. I Review of staffing model at the end of October. Date Y 26.10.99
agreed for 26/10/99.
COMMERCIAL IN CONFIDENCE Page 24 of 41
FUJ00058187
FUJ00058187
ICL Pathway Customer Service Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
* First meeting between. ICL.and POCL took place on 3 November to agree:the
way forward for the scoping study of the electronic, interface-between the HSH
and the NBSC. The content'scope and the format of the Kainos;report were
agreed. Bob Davis will now’be involved with OSD to ensure:
e We meet our obligations ii getting information to Kainos and
e To open the door for Bob in getting to and uriderstanding their processes and
procedures.
COMMERCIAL 1N CONFIDENCE Page 25 of 41
FUJ00058187
FUJ00058187
FUJ00058187
FUJ00058187
ICL Pathway Quality & Risk Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
Quality & Risk Report
MONTHLY SUMMARY
e Security Acceptance incident. Actions are progressing to plan.
e Security. SEM definition and refining continues. Issues regarding the provision
of audit data to POCL for security investigations need resolution. The KMS
programme continues to be reviewed.and the production of user documentation
is underway.
e Risk Management. Development Directorate risks against vn9 of the plan have
been identified. The risk process is being updated.
© Quality. Audits of Post Office installations have highlighted the poor site
preparation quality of WTplc. Process improvements are being recommended.
e Continuity planning. Reviews of completeness of continuity plans are underway,
driven by Y2k. Communication and testing of plans have begun.
e Audit. The-development audit is complete and report.issued. Audit solution
issues are now being addressed by OSD.
e Release Management. A project manager to implement the process has still not
been appointed.
e Y2k compliance. The major risk now is the level of change to be introduced to
the system over the millenium period and Pathway’s plans to mitigate risk. End
to end plans are being reviewed.
PROGRESS
RISK MANAGEMENT
© Programme risks. Development Directorate risks against vn9 of the plan have
been identified. Major risks raised include:
© Time to.build test rigs
© Quality of POCL Reference data for testing of SIP16
e Level of change putting pressure on CSR+ schedule
e Resource constraints and potential skill pool shortage in A&¢TC
¢ Migration to CSR+; a number of issues
© Network migration testing
© British Gas Y2k policy of no new kit over the critical period interfering
with DIT schedule.
¢ The risk process is being revised and will include links to the Change
Management process.
COMMERCIAL IN CONFIDENCE Page 26 of 41
FUJ00058187
FUJ00058187
ICL Pathway Quality & Risk Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
e A conference'on the Turnbull report was attended in. order to understand
businéss implications of risk.reporting.
SYSTEM SECURITY
GENERAL
e Graham Hooper joined during October as Security Manager to replace Barry
Procter who has moved into ICL Group.
© AI391. Site security improvements at Bootle and Wigan continue to plan.
e DPA. PONU need to engage with DSS in order to establish what DSS require to
fulfil irs‘obligations under the act. A procedure has been defined for CS to
tespond to Subject Access Requests..
CSR
e A draft threat assessment has been produced for the RollOut. Database
Replication Server. Relevant system managers have been made aware and will be
interviewed to establish what.controls exist to mitigate identified risks. The
residual risks can then be identified and action taken to propose any additional
controls.
e SEM monitoring/refinement is continuing and procedures updated.
Completeness of event identification is being checked.
e The draft continuity plan for the security administration workstations is being
finalised.
e Security Review of Celestica Manufacturing Process has been completed. A first
draft report has been produced and some remaining ‘issues are being clarified.
CSR+
e Review of KMS development programme. A second technical author has been
engaged to progress the KMS user documentation.
e Scope, resourcing, timescales and responsibilities haye been defined for technical
penetration testing.
¢ Section 69 of PACE (concerning the provision of integrity statements in respect
of computer systems and evidential output) has been repealed by the new Youth
Justice and Criminal Evidence Act. Implications for the contract and A1370 to be
pursued. 5
¢ POCL continue to request audit information to support prosecutions. Urgent
meeting is required to resolve issue.
COMMERCIAL IN CONFIDENCE Page 27 of 41
FUJ00058187
FUJ00058187
ICL Pathway Quality & Risk Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
QUALITY
e A programme of audits of the installation of Post Offices has been conducted.
The main issues identified have been with the infrastructure.and a wide variety
of process improvement opportunities have been identified.
¢ Disaster Recovery plans. SMH plans continue to be progressed. LDRPS software
has been installed.
e Business Continuity Two working group meetings have been held to review
completeness of plans. A framework for Business Continuity for Pathway has
been: produced. Actions are underway to communicate and test the plans.
e Policies & Standards Acceptance Test. 1 Acceptance Incident closed, leaving 3
outstanding.
AUDIT
e Internal audits:
e CSR+ development audit. The final report-has been issued. There has been an
overall improvement in the application of process, review and standards to,the
CSR+ prodicts. Issues that have arisen include:
e Inconsistent:documentation. : ”
¢ Review of documentation is of inconsistent quality and coverage.
e No underpinning standards for C or VB code and reviews.
¢ Variable approaches to unit and link testing.
e A project manager has not yet-been appointed to implement.and deploy the
Release Management Process.
© Audit Solution. The major issue is contractual compliance - full. mutuality of
audit data between the two Data Centres. A direct threat to place a red alert
on OSD if issues were not addressed. This threat resulted in focused
management attention being applied to the problem. As a result'we are seeing
steady progress in eliminating most of the problems.
YEAR 2000 CONFORMANCE
© Contingency Plans are being reviewed.
¢ CS are on track and moving forward with main stream disaster recovery. Plans
to verify the operation of the liye’estate’ with OSD are being developed; not yet
clear what is happening with SSC, OTT and Ref Data nor with critical service
providers.
e CM - have updated and re-issued their Continuity Plan.
. © Development. PI have re-issued their Y2K health check plan but not their
disaster recovery plan.
e Implementation- still at an early stage.
COMMERCIAL IN CONFIDENCE Page 28 of 41
FUJ00058187
FUJ00058187
ICL Pathway Quality & Risk Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
e QRM. Continuity plans are being produced for the security administration
workstations.
¢ A draft PID for a Pathway Millennium Co-ordination Centre , to operate over
the Millennium Holiday period and link Pathway to the Group and other
Businésses.on Y2K issues, has been drafted, and issued for comment. All of the
détdiled plans will be incorporated into a single plan to give an overall picture.
ISSUES
° Ensuring the overall, business.continuity plan.for Pathway provides adequate
mitigation against the risks:and that Y2K specifics are délta’d on top and
adequately resourced.
e DQAs of installations have highlighted the poor site preparation quality of
WTple.
e Release Management. A project manager to.implement the process has still not
- -- -- - been-appointed: -—-- - == SS =a =
COMMERCIAL IN‘CONFIDENCE Page 29 of 41
FUJ00058187
FUJ00058187
——
—
;}—
2=Z Business
—— a
——
————
Development
Report
FUJ00058187
FUJ00058187
ICL Pathway Business Development Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
Business Development Report
MONTHLY SUMMARY
e As last month, there is still no.clear picture of how the’new Post Office Network
team wishes to work with us. The new organisation under Shaping for.
Competitive Success is taking time to settle. There are many internal (to Post
Office) issues:to be sorted, especially in sorting out how they work with each
other. Network Banking is a key example.- see below. We must continue to
search for every avenue to further working relationships if we are to commence
requirements capture activities this year. Left to their own timescales it is likely
to be March next year before PON agree how we will work together.
¢ Kainos have started a scoping exercise with PON looking at the formation of a
single help desk for all 1st line calls: This exercise will take 5/6 weeks and will
scope out the actual work that needs to be undertaken to achieve the end game.
In parallel, we need to start examining the possible commercial outcomes, e.g.
effect on revenues/costs, effect on SLA's, etc.
e The first stage of the Deutsche Post consultancy contract has taken place with
three people spending time in Germany.
e PITCOM came to Feltham on 26th October. This was a very successful visit
judging by the reaction on the day and the feedback since.
e The National Federation of Sub-postmasters (NFSP) has started a campaign to
publicise the impact of benefit payment moving from post offices to banks. The
campaign was kicked off last week in Scotland and will move further over the
coming months.
e Following the first two sets of post office visits, there is a marked change from
the last-visits where most of the attention was on the system and the difficulties
in balancing. There'is now less emphasis on the system problems and more on
the people-issues. We have always stressed the.size of the change programme but
this has not been sufficiently picked up by POCL. There:is now a realisation that
support of the people is vital and the are a number of programmes set up in
PON to examine these issues. meetings have taken place with Eric Logan &
John Main, Territory General Managers to discuss the visit outcomes.
¢ We have effected an introduction of Eric Logan, General Manager for Network
North and Scott McGlinchey, Director, ICL Scotland. Each party is undertaking
work in Scotland around Modern Government and Financial/Social Inclusion.
There is likely to be a Board-to-Board session in February. We have also
presented the Horizon picture to the new ICL Scotland advisory board.
COMMERCIAL IN CONFIDENCE Page 30 of 41
FUJ00058187
FUJ00058187
ICL Pathway Business Development Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
PROGRESS
Business Development:
¢ Service Development: Initial PON / ICL Pathway service development
workshop cancelled by PON has still not been-re-arranged as they have not yet
agreed internally how they wish to:
i. manage requirements capture and priority'within the Post Office.
ii. manage future work activities with ICL Pathway.
¢ Both issues need to be decided at Director level within PON (Dave Smith, Alan
Barrie, Tim Thorpe). Our experience to date is that none of their staff feel
empowered to engage on either of the above areas until they have been given
more detailed direction from above. This is causing delay to new revenues and
needs to be the key focus of our activities until it is resolved.
e .A-useful first meeting was-held with.Alan Barrie.to. begin to.put.in.place.the. __.
process.
© Network Banking: A number of meetings have taken place with Johin Meagher
& Jeremy Folkes of the Horizon team. This has been in response to a Basil Shall
initiative where he is aiming to set-up a web based banking service for the
Network. This is a technology led move with.no clear picture of the business
requirements. Basil is aiming to produce an RFI within weeks which he will send
to the market.
¢ Post Office have-also asked [CL to sign a confidentiality agreement in advance of
a tender for 3,000 ATM's. ICL's Financial Services team will lead on this with
our support.
© PO Corporate Clients: The Horizon service was presented to the Post Office’s
client directors for Utilities and Government clients. This was well received
with the client directors highlighting a number of internal issues which they
would lead on, including activities to find a resolution to the issue of how
requirements are. defined and channelled through to ICL Pathway.
e EMU: Work has taken place with PON to deliver the first specification and
Terms of Reference for non-contractual work. This will be a paid study to
investigate the options for integrating EMU functionality into Horizon. The
feasibility study will probably be for £100k+. A Change Request should arrive
in November.
« SAP: A follow-up session has taken place with SAP’s Post-Office account team.
No short term wins, but.a number of significant medium term opportunities for
joint working and influencing.
COMMERCIAL IN CONFIDENCE Page 31 of 41
FUJ00058187
FUJ00058187
ICL Pathway Business Development Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
e National Savings: Admiral Management Services are undertaking a scoping
exercise for NS and Siemens looking at the potential for re-engineering. Admiral
have not been allowed to speak directly to Pathway and find Post Office to be
serious blockers in identifying new opportunities. We have a separate line into
Admiral so we can influence their thinking.
Marketing Communication:
e Internal Communications in ICL Pathway
e The key milestone of 1,600 migration was communicated within ICL Pathway
and ICL; this involved a number of audiences- EMC, ICL Pathway staff, ICL
staff via CASCADE and CafeVIK.
¢ Anarticle on ICL Pathway can be found in the latest edition of the ICL
Magazine, which has received good response.
¢ External Communication
e ICL Pathway now has a page on the ICL Internet page- icl.com
e Staff have attended a number of ICL Marketing meetings in order to grow
ICL Pathways reputation.
© Chrissie is working closely with ICL Press Office (and PR company Firefly) to
build on their knowledge of ICL Pathway such that we can start working out
ideas for press release for next year. This is proving to be a touch difficult as
ICL wish to get press releases issued now, and the Post Office wish us to wait.
¢ POCL Communications
« PON review meetings on going. We have met with Keith Hardie, PON's new
Communications manager with whom we agreed to start working together on
joint press articles for next year. A meeting is being held on 1st December,
between ICL and PON to get this off the ground.
e NFSP Exhibition took place on 9th & 10th October at the NEC. ICL Pathway
provided the Post Office stand with a Horizon demonstration plus presenter,
which was supplied by KnowledgePool. There were a couple of issues; the
main one being what the demonstration was placed in the middle of the stand
and no one could see us!
© Government communications
© PITCOM event was held on 26th October. It proved to be a very successful
session, with approx. 20 of the team attending.
© Working with PON, we are now setting up additional visits for Government
departments.
* The Governments Performance and Innovation Unit plan to visit Feltham on
25th November - we are working with Post Office Network on this visit.
COMMERCIAL IN CONFIDENCE Page 32 of 41
FU.
ICL Pathway Business Development Monthly Report Ref: PA/REP/043
Version: 1.0
Date: 15/11/99
FUJ00058187
1J00058187
e Alan Johnson, MP (junior minister responsible for the Post Office) is visiting
on 6th December.
e David Drew, MP (Stroud, Labour), visits on the 7th December.
Fujitsu Team:
¢ Greg continues to support the work of the Fujitsu team. Current focus is on
managing the delivery of the ICL Pathway element of a Fujitsu web based
project-information system initiative (Project Web). This involves working
along side the Fujitsu team.and a team of web designers from the ICL PFI team.
International:
e Work has started on the Deutsche Post project. This has involved Alan Ward,
Geoffrey Vane & Tom Parker spending three days with Deutsche Post looking
at Applications architecture and Security threat analysis.
© CTT, the Portuguese Post Office is visiting Pathway on 9/10 November. They
will also visit a live post office while here.
e The Namibia Post system continues to be developed. Costs are now fully under
control and our involvement is beginning to taper off.
CRITICAL PROBLEMS
e None
COMMERCIAL IN CONFIDENCE Page 33 of 41
FUJ00058187
FUJ00058187
ody =
-—_—_—
e— —
SS
=— —
—- —
= —_ —
FUJ00058187
FUJ00058187
ICL Pathway Implementation Ref: PA/REP/043
Version: 1.0
Monthly Report Date:_ 15/11/99
Implementation Report
MONTHLY SUMMARY
National Roll Out
¢ The rollout programme is approaching the Christmas break period and
installations will cease from 12th November and rollout will resume from 24th
January 2000. During this period Pathway will be undertaking a number of.
measures to review and fine-tune the activities and processes surrounding
rollout. Running concurrently with this will be the RNM clusters and Major
offices ‘paid study’ looking at revisions to the implementation plan. Following
receipt of a further CR, the study will now be extended to include ALPS offices.
Work on the study is ready to commence following. POCL approval of the CCN.
The first part of the study encompasses activities based around the RODB and
secondly the feasibility study will address the detail of the rollout profile.
e Activity to implement CCN 561 (side agreement to the Second Supplemental
Agreement) has been completed with all the obligations having been
implemented through documentation and process changes. It-is understood that
POCL are still awaiting written confirmation from the National Federation of
Sub-postmasters of acceptance of the single installation date, although it is
believed this is a formality.
e Pathway and POCL Implementation management met on the Sth November
1999 to review installation dropout rates and lessons learned from National
Rollout to date. It was agreed that installation dropout levels are as expected
and still falling. Further reductions in the levels of installation suspensions and
aborts are anticipated from process improvements made recently and process
reviews currently being undertaken by Pathway’s Implementation team.
e Progress continues to be made to recover the scheduling gap created by the 2-
week approval process during acceptance. It is anticipated that all new
installation units entering the installation process from early December will be
able to follow the full 16-week cycle. To minimise impact, joint agreement was
reached to delay one UAE event in November by one week to maximise the
notice period for postmasters.
Infrastructure Programme
¢ Surveys for trolleys are continuing, but there are a small percentage of offices
that need minor re-work to enable the trolleys to fit.
COMMERCIAL IN CONFIDENCE Page 34 of 41
FUJ00058187
FUJ00058187
ICL Pathway Implementation Ref: PA/REP/043
Version: 1.0
Monthly Report . Date: 15/11/99
¢ The infrastructure programme has now scheduled nearly all the outlets we
currently have available. There are some 2000 outlets not yet released from
POCL that needs to be reviewed in order to complete infrastructure programme.
A meeting was held on Sth November to review the process and current. status
of releasing suspended outlets into the infrastructure programme. With the
greater understanding of the.information shared at this meeting it is expected
that improvements in the process will be achieved.
Installation Programme
e As of the Sth November 1999, 1811 outlets had been installed and migrated to
the Horizon system, achieving the programme milestone target of 1800 live
outlets. This was:a major achievement for the programme and has resulted from
the hard work and co-operation of all the parties involved. Staff in Pathway and
POCL managing the installation process centrally and in the regions should be
congratulated on this achievement.
e An implementation plan for outlets requiring frame relay communications has
been produced and is being reviewed by-all concerned.
e Discussions continue with suppliers over productivity, improvements and the
revised rollout plan for next year. A review plan has been created for
implementation to take all lessons learnt to date, from Pathway and suppliers,
and. make improvements in preparation for the new'start date in January 2000.
USER IMPLEMENTATION AND MIGRATION
Training Scheduling
e Pathway is currently planning a demonstration for POCL Implementation to
provide assurances of the capability, robustness and contingency available from
the training scheduling and administration systems. This will complete the
activity planned to address the recent concerns over training scheduling and
provide positive feedback against the rollout criteria for this item.
e A further 120 training systems have been built in order to satisfy the
requirements of the first phase of NRO in January 2000. A further 148 systems
will be built during the Christmas closure.
e The Pre-Entry event was signed off this week, but will require POCL make some
amendments to the contents-of their section of the course. It is understood the
POCL input will be reviewed at a dry run on 9th November 1999.
COMMERCIAL IN CONFIDENCE Page 35 of 41
FUJ00058187
FUJ00058187
ICL Pathway Implementation Ref: PA/REP/043
Version: 1.0
Monthly Report Date: 15/11/99
¢ The amended PSA process was put in place this week and a trainer briefing
session was held, covering the changes and how they will be applied to the
courses. It is intended that POCL and Pathway Training teams will be
observing the second day of one of the training courses.
e An End-to End workshop to run through training scheduling scenarios,
processes and issues will be run next week in order to review and plan
improvements for the training plans for NRO.
« Acceptance Incident AI 218
ICL Pathway has completed the vast majority of its actions on the Rectification
Plan for AI218, although some POCL actions are outstanding. This was
reviewed with POCL on Sth November 1999.
Implementation Statistics (To 29" November 1999)
- Implementation Weekly Statistics
Activity Previous I Actual this Cumulative Comments
report total period
INFRASTRUCTURE
PROG.
IRGM letters issued 17421 19 17440
Site surveys undertaken 16265 299 16564
\Site re-surveys required 6385 87 6472
Site re-surveys 5862 282 6144
jundertaken
Site modifications done 4154 180 4334
Site preparations done 9021 551 9572
Sites RFT 8058 836 8894
INSTALLATION PROG,
IRGM Phase 2 Letters 2570 ) 2570 {tbe
Issued
ISDN lines installed 1730 173 1903
[Sites installed 1195 413 1608
\Offices live 1181 415 1596
(Counters Live 2640 928 3568
COMMERCIAL IN CONFIDENCE
Page 36 of 41
FUJ00058187
FUJ00058187
Organisation
& Personnel
Report
FUJ00058187
FUJ00058187
ICL Pathway Organisation & Personnel Ref: PA/REP/043
Monthly Ri Version: 1.0
cee eee Date: 15/11/99
Organisation & Personnel Report
MONTHLY SUMMARY
© Recruitment activity continiied, mostly on a replacement basis though with
some new positions authorised for Customer Sérvice and also to support the
Programme Plan for CSR+. Work continueéd,on staff related cost down
initiatives, focussing on ways of réplacing freelancers with permanent ICL
employees provided by A&TC
PROGRESS
e¢ — Appointments in July:
External Recruits 4
Transfers 2
A&TC 3
Linkwise 1
Freelance 2
Temporary 0
Total: 12
. Known joiners;
External Recruits 0
Transfers 1
A&TC 0
Linkwise 0
Freelance 1
Total: 2
° Offers outstanding:
External Recruits 0
° Leavers in September:
Permanent
Freelance 18
Temporary
Transfers 2
Total: 26
COMMERCIAL IN CONFIDENCE Page 37 of 41
FUJ00058187
FUJ00058187
ICL Pathway Organisation & Personnel Ref: PA/REP/043
Version: 1.0
Monthly Report Date: 15/11/99
© Two meetings took place in October to review the Health and Safety
arrangements associated with the Roll-Out Programme. Louise Parker, the ICL
Pathway Health and Safety advisor explained the legal requirements and
reviewed the ICL documentation which exists to ensure compliance with best
practice in this area. It was agreed. that Louise would conduct a Health and
Safety compliance audit of the Roll-Out Programme and make
recommendations should any rectification action be-required. The audit will
take place early in November.
¢ Work continues on the refurbishment of D Block. We are currently working on
the-accommodation plan which will be organised in stages to minimise
disruption. These moves will allow us to substantially achieve our objective of
ensuring all employees’ office accommodation is of a good standard.
e In.Development, as part of the Cost Down programme, we have identified
areas where ICL has permanent employeés with thé skills to replace some of
our Freelancer community. As these employees are based in KIDO1 and
_... MAN27 we need to investigate the possibility of remote working and have —
initiated a feasibility study. Assuming this is positive, then significant pieces of
Development work will be moved to thése teams in Enterprise Solutions. This
will allow the release of Freelancers, with a consequent cost saving.
¢ In conjunction with the PFI unit, work took place to investigate the
costs/benefits of creating a core team of Testing Skills. A paper will be
submitted for consideration in early November.
e Objectives for Professional Variable Pay have still not been returned for all
employees, although there was good progress‘in the month. The Personnel
Department again invested a significant amount of time progress chasing the
missing objectives.
e Acomplete list of employees required to work or provide on-call cover.over the
end of the year was produced in conjunction with line managers. Following
review and approval in early November all the affected employees will be
written to confirm the days on which they aré needed and the rates of pay
which will apply.
e A meeting was held with Roger Ashbrook and Ron Palmer, representing the
ICL Project Management Community to review the provisional assessments of
Project Managers within ICL Pathway. This was extremely successful with most
people being confirmed as members of the Community-and an action plan
being agreed for the remainder. There will be another meeting when the
remainder of those who need to be assessed have completed their application
forms.
e The number of authorised vacancies is now 28, an increase over the previous
months total. Most of this increase is due to the replacement of leavers. A good
proportion of these leavers are freelancers who are wherever possible replaced
with permanent ICL employees on secondment from A&TC.
COMMERCIAL IN CONFIDENCE Page 38 of 41
FUJ00058187
FUJ00058187
ICL Pathway Organisation & Personnel Ref: PA/REP/043
Version: 1.0
Monthly Report Date: 15/11/99
e Some additional positions were authorised. There is.a planned increase in
Technical, Support Product Specialists in Customer Service. ‘This. isto allow
support to be given to'the estate as it increases in size as a result of the Roll-Out
programme. It has also been necessary to authorise 4 additional positions for
Integration Engineers as a result of the Programme. Plan for CSR+.
ISSUES
© There is a continuing problem with some ICL Pathway managers failing to fulfil
their obligation to:respond quickly to CV’s sent by A&TC. It is likely
¢andidates will have more than-one project to chose from and therefore we
must act quickly to secure.the employees we consider suitable.
Mik
COMMERCIAL IN CONFIDENCE Page 39 of 41
FUJ00058187
FUJ00058187
yodsay
yuo)
291JO 180g
\
mm
Vane!
\
FUJ00058187
FUJ00058187
ICL Pathway The Post Office - Client Director's Ref: PA/REP/043
Version: 1.0
Monthly Report Date: 15/11/99
The Post Office - Client Director’s Report
MONTHLY SUMMARY
© A néw initiative for eBusiness is ready for discussion’ with Post Office.
eBusiness
e A new initiative has been developed which we are planning to float with Post
Office during November. There is considerable interest in this business area
across PO but as yet no committed plans. There are clearly identified potential
blockers: we are working to avoid these.
Service Management Productivity Programme
e This is led by A&TC; discussions are opening on which software tools are
required; there may be potential here for ICL to supply software under the
consultancy contract.
Modern Government
e The general pace of development across government remains painfully slow and
Post Office:remain buried in the implications of setting up the new business.
units: Government Gateway does not appear to be a priority.
Smartcards
e Ownership of the smartcard opportunity within Post Office is still not.settled.
Jerry Cope is said to be deciding between Network Banking, Government
Gateway and Electronic Services. Meanwhile we are in dialogue with PO
Research group who have a mandate to procure smartcard systems for all
200,000 Post Office employees for internal use.
Corporate Clients
e Following my meeting with Ken Wright, MD Corporate Clients, we have
entertained the PO group of new Client Directors responsible for DVLA, IR,
Centrica, Telewest and Cable & Wireless. The key task is to find common
Opportunities.
Microsoft
¢ MC are bidding against Computacenter to win an Enterprise Agreement for
supply of all Microsoft products. Microsoft are pushing to conclude the
negotiations and have recommended ICL.
COMMERCIAL IN CONFIDENCE Page 40 of 41
FUJ00058187
FUJ00058187
ICL Pathway The Post Office - Client Director's Ref: PA/REP/043
Version: 1.0
Monthly Report Date: 15/11/99
New bid - Help Desk
e [CL confirmed now on the short list with the RFP further delayed until mid-
November - response due in by 10 Jan..After reference visits etc, decision target
date is end March.
1999 Business.
¢ MC business now showing the Y2K effect.as PO cease purchases until Feb. In
September Pathway delivered a substantial profit; OSD figures also represent
substantial Pathway revenues.
Latest available figures April-Sep 1999:
REVENUE: Qi Q2 year to date Margin Division
MC ~ ~ ~"$,536k 9,024k © re oe
Govt 271k 649k
OSD 170k 9,308k
Pathway 1,045k —71,288k
TOTALS 7,022k 90,268k 8,427k
COST DOWN
* No change.
COMMERCIAL IN CONFIDENCE . “Page 41 of 41