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ICL Pathway
Bringing Monthly
Technology Progress
to Post Office Report
Counters iCL
December 2000 ME
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ICL Pathway Monthly Progress Report
Managing Director’s Summary
Development Report
Commercial & Financial Report
Business Development Report
Customer Service Report
Quality & Risk Report
Implementation Report
im
\
Organisation & Personnel Report
Post Office Client Report
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ICL Pathway Programme Monthly Report Ref: PA/REP/OS7
Versio 1.0
Date: 11/01/2001
Document Title: ICL Pathway Monthly Report — December 2000
Associated Documents:
Reference Vers Date Title Source
reo) PM/PRO/002 1.0 26/09/96 Pathway Programme - Project
Planning, Reporting and Control
Approval Authorities:
Name Position Signature Date
M. Stares Managing Director
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Managing
Director’s
Summary
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ICL Pathway Commercial & Financial Report Ref: PA/REP/OS7
Version: 1.0
Date: 11/01/2001
Managing Director’s Summary
1 PROGRESS AND ISSUES
1.1 BUSINESS PLAN
We are ahead of plan on revenue, costs, ‘profit and cash. Forecasts for full year
revenue, costs, profit, cash and headcount are all either on or. ahead of budget. Risks
are well understood. We are on schedule for the next £90M milestone in March 01.
2000 was:a highly successful year for Pathway.
CSR+ counter migration has been largely completed. Acceptance of CSR+ has
triggered payment of the first £60M retention starting in January 2001 at £1.25M
per month. The quality of CSR+ appears robust (as evidenced by help desk calls).
Work is underway to crystallise and achieve the requirements for the second £60M
retention in Q2 of 2001/02.
The Business Plan has been revised in line with this years experience of costs and
progress and a lower risk plan produced with a reduced new business requirement
(£41M vs £62M) and a lower unallocated task £12M vs £18M). It includes a clear
set of metrics (revenue; cost, task, risk etc) for next year and draft budgets have
already gone through a second iteration with the line units to underpin the task and
cost down requirements.
We have:secured a key strategic decision to base future developments of Horizon on
Web Browser technology using Web Riposte from Escher. This will be the
foundation for Network Banking, EFTPOS, Government General Practitioner and
ERA.
1.2 PROGRESS AND ISSUES
Good progress is still being made. CSR+ migration has been achieved with only 40
(out of 15,200) still to go. Product quality is acceptable although we are receiving
feedback on performance issues that will need to be resolved as a priority. M1
testing is progressing to plan and will be issued to the estate in February/March.
Rollout is on track and has commenced again following the Christmas break. We
have migrated over 15200 post offices (>85% of the estate), about a week ahead of
plan. We. have trained in excess of 50000 Post Office staff. Solutions for Satellite and
Mobile rechnology have now been agreed with PO, tested and the implementation of
Satellite ourlets has started.
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ICL Pathway Commercial & Financial Report Ref: PA/REP/O57
Version: 1.0
Date: 11/01/2001
Although we are demonstrating consistent and good quality operational performance
we are missing some of the very challenging SLA’s and as expected PO have placed
us in formal Breach of Contract (they can do this‘if we miss any three-quarters in 24
months). We are trying to negotiate a reduced SLA breach trigger for the future that
also sweeps up the training occupancy issue. A proposal is currently being considered by
the Post Office and we appear to be homing in on a mutually acceptable solution.
Headcount management remains a critical success factor. We have reduced by over
70 heads in the last three months and we will finish the financial year with 150 less
people and a slimmer management structure than when we started. We have now
entered a difficult phase where we are making excellent progress with regard to new
business and are dependent on key skills and motivation, but at the same time we are
in a heavy cost down program, particularly amongst freelance staff. Freelance
headcount will reduce by over 100 in the year and 95 e-Apps staff (of 130) who are
currently assigned to Pathway will be transferred in as permanent Pathway
employees in February. This.is will result in a more stable and motivated workforce.
1.3 NEW BUSINESS
The outlook for this years incremental revenue target (£3M) has improved. We have
achieved a £1M order for 12 consultants to be dedicated to ERA through: until
February. This will help to pump prime this strategic business for the future. We are
engaged in joint working groups on Network Banking and EFTPOS and have
secured an order for Web Riposte as the strategic base for future developments. This
is an important decision as it improves the strategic credibility of Horizon at a
stroke. However it also increases the dependency on Escher and we are taking steps
to’strengthen this relationship.
On a wider ICL front, we were unsuccessful in our bid to be short-listed for the six
e-Business work package areas, as were IBM, Andersens, CapGemini, Microsoft and
PWC! However PO have made it clear that e-Business work around existing
contracts will be done by the existing contractors (e.g. Pathway for Horizon). We
have declined to bid for the.PC contract renewal.
Post Office has selected CGEY as their preferred supplier of Government General
Practitioner (GGP) and we are now engaging with PO to develop the plan to utilise
Horizon, probably post pilot.
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ICL Pathway Commercial & Financial Report Ref: PA/REP/O37
Version: 1,0
Date: 11/01/2001
1.3.1 NETWORK BANKING
Post Office has been struggling with its business case and with conflicting pressures
from government, the banks and their own objectives. We are now engaged.in 11
chargeable work packages to provide a level of detail on the requirements and
Horizon implications. Negotiations with. PO and Escher have been concluded and a>
firm decision on a web approach has been taken. We expect to take contracts for the
development and implementation of the Horizon banking system and also EFTPOS
over the next few months for pilot implementation in 2002. Negotiations have been
concluded between DTI, Treasury, Banks and the PO and the Universal Bank has
been given the,go-ahead.
EFTPOS
PO wants to fast track this development to enable Debit card usage across the
counter and have a preference for an increased operating fee to pay for it. Revenue
estimate is circa £3M.
1.3.2 RE-ENGINEERING/ERA 7
This initiative has run into some difficulty as Post Office plan their priorities. Theré”
are difficult decisions facing PO as-they balance cost.reduction requirements with the
investment. needs of ERA. They have authorised further spend (£1M) to extend the
Pathway consultancy contract that places us. atthe heart of this initiative. The next
PO investment committee is in.March.
1.4 NATIONAL AUDIT OFFICE
PAC will review the Benefit Card/Horizon history in January and we have been
asked to attend.
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ICL Pathway Commercial & Financial Report Ref: PA/REP/OS7
Version: 1.0
Date: 11/01/2001
Development Report
1 MONTHLY SUMMARY
Input not available at time of report production.
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Commercial &
Financial
Report
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ICL Pathway Commercial & Financial Report Ref: PA/REP/057
Version: 1.0
Date: 11/01/2001
Commercial & Financial Report
1 MONTHLY SUMMARY
° Financial performance to end December has continued to track better than
Plan, Budget and forecast on all key performance indicators.
° There has been convergence in negotiations with POCL on the issues
associated with the SLA performance. breach condition but important
differences remain with respect to the 100% Day D target.
. There has been convergence with POCL on APS/TIP reconciliation and TIP
file delivery but issues remain here also.
. Actions to minimise the training overspend have all been agreed with POCL.
We are continuing to pursue Energis and KPL for recompense for their
failures in roll out which have impacted training course occupancy.
° We have agreed in principle the contractual interpretation of the criteria we
need to meet to secure the’second £60m retention. These are based on TRT
targets and not the more stringent MAT targets which are the basis of the
SLA problem.
° Departmental Budgets for 2001/02 continue to converge on where they need
to be for next year. Task has all but been eliminated for 2001/02 and
teduced to £12m overall. CS and Implementation are virtually on target and
the ZBB submission from Development has brought the bottoms up view
close to target on the basis that the e-Apps people are transferred in.
° Risk has generally been reduced with successful CSR+ roll out. However,
two risks have gone the wrong way. Slow running of counters poses a threat
to counter transaction time SLAs: POCL have the fight, in the event-there are
significant reported deviations from benchmark times, to demand that actual
times be measured and used as the basis of LD measurement. Secondly,
GEMPLUS’ supply of security smart cards has been delayed by component
shortages: this could stop rollout although contingency plans should prevent
such extreme impact.
° The ‘new business’ revenue plan for next year remains de-risked to £7m.
Although current indications following the WebRiposte decision are of
strengthening demand, POCL remain strapped for cash and have yer to
commission real delivery work. Also, it is far from clear how they would deal
with multiple projects running in parallel.
° 2000/01 profit recognition has been held at 11% pending resolution of the
SLA and TIP issues and the risks identified above. The Budget for 2001/02
assumes 13,5% on the basis that these issues will be dealt with.
. The interim RTR/AMS and Oracle/Access solutions are now well advanced.
These will plug the gap before Propel aid OPA/ Oracle. Gold Build become
available towards the end of 2001. An end to end RTR/Oracle feed is now
working and producing input and output reports. This will enable us to use
time recording data to produce invoicing for CCNs. We remain actively
involved in trying to shape the long term solutions.
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ICL Pathway Commercial & Financial Report _ Ref: PA/REP/OS7
Version: 1.0
Date: 11/01/2001
° Work on the DTI audit of the £8m interim government funding of April/May
last year is underway.
. The PAC’s investigation into the cancellation of the Benefit Payment Card is
to be held on 22™ January.
2 PROGRESS
° The WebRiposte decision is strategically very important. With Horizon e-
enabled, the ‘buy-in’ from marker facing units, and investment, can now be
expected to increase. Both are key to extending the Pathway franchise
beyond 2005. We just need to understand and manage the risks tightly.
° New business demand is picking up but is not under good control. within
POCL. Business prioritisation, clear requirements, realistic expectations and
project management capability are all at a premium. ‘Bump’ between the
market facing units and PON remains.a big issue for us although Liam is
making some headway with NBU.
. POCL probably lack the funds to go forward with all their projects and we
should expect more requests to finance the development work with payback
timed to coincide with business benefits. This has been put forward by POCL
for both ERA and EFTPOS. The Business Plan for next year assumes just
£1m deferred.
. Some convergence, as above, on the SLA package.
3 RISKS
e The SLA and TIP issues remain to be closed down and will require more
work.
° The GEMPLUS and slow counter issues need to be dealt with quickly.
° The Web Riposte decision (Network Banking) as above.
° Forecast POCL demand for design work will outstrip our supply capability
unless we act fast: there is a.significant risk that we will take on commitments
we will.not then be able to fulfil or manage.
4 ISSUES
° As risks above.
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ICL Pathway Commercial & Financial Report Ref: PA/RED/0S7
Version: 1.0
Date: 11/01/2001 -
5 FINANCIAL PERFORMANCE
ICL Pathway
Selected Permutations of Profit Risk and Opportunity (Year 2000/01)
(not exhaustive)
Forecast
New Business Revenue Shortfall £0.5m v I
New Business Revenue Shortfall £0.25m v
New Business Revenue on Forecast v v v
Rollout Shortfalt: 250 outlets v
Rollout Voiume on Forecast v v
Rollout Excess: 75 outlets v
Implementation Revenue on Forecast v v v
Implementation Revenue Excess of £0.25m Jf i wo
Profit Recognition Percentage: 10.0% v .
Profit Recognition Percentage: 10.5% v ,
Profit Recognition Percentage as Forecast: (11.0%) v v “
Profit Recognition Percentage: 12.0% v
Base Profit Forecast - (January 2001 Submission) 22.98) 22.98) 22.98] 22.98] 22.98)
Impact of Risks/Opportunities
New Business Revenue ) ( (0.06)} (0.03)
Rollout Variance )@11% Profit ( (0.67)) (0.33) 0.10)
Implementation Revenue ) ( 0.03 0.03)
Variance
Impact of Profit Recognition Variance (2.02)I (1.03) 2.10]
Total of Risks and Opportunities (2.75)I__ (1.39) 0.03) 2.23}
Profit Forecast after Risks and Opportunities 20.23) 21.59 22.98; 23.01) 25.21
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Business
Development
Report
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ICL Pathway Customer Requirements Report Ref: PA/REP/OS7
Version: 1.0
Date: 11/01/2001
Business Development Report
1. MONTHLY SUMMARY
. A month of significant progress. Things are starting to move at long last. Post
Office have now committed over £3million new business revenue to ICL
Pathway. The major challenge is now to resource the new work at the front
end. We are also getting closer to the Network Banking team and relationships
are building well.
Network Banking:
e A contract has been agreed for the introduction of Web Riposte. This is a
major strategic move that will not only facilitate the introduction of
Network Banking but also GGP and will in time allow the introduction of
new products in a faster timescale. We have now committed our future
strategy to Riposte and we need to continue to expand the working
relationships with Escher.
e Work continues on the work packages. Pressure is now on to complete that
work. Post Office need to take the output to their executive programme
board on 1* February.
e IBM have now been signed up for the software licences but not any
hardware as-yet.
e Ownership of the Network Banking Programme within Post Office remains
unclear. We have now met with Basil Larkins and Graham-Halliday to stress
the importance of a top level programme board and a top notch programme
director.
e Basil Shall is now on side and is in regular communications with us. He is
currently organising with us a trip for senior Post Office staff to Escher in
Boston. There will also be a visit to ‘a’ Canadian bank who have implemented
the IBM application.
e The key task is to get a joined up agreed programme plan in place, to
complete the current work packages: and to have Post Office authorise the
next tranches of work.
e Our people (11) continue to undertake valuable work on the ERA project.
The plan remains to complete this: phase in time for the investment board in
April.
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ICL Pathway Customer Requirements Report Ref: PA/REP/OS7
Version: 1.0
Date: 11/01/2001
e The decision to go Web Riposte now needs to be encompassed by the. ERA
team. There has already been a move to transfer the work on the generic
product set to the Network Banking project. My view is that Basil Shall will
not allow this to happen. We must ensure that we are influencing this area as
much as possible.
¢ A Web Riposte update-session is being planned for the ERA team.
Government Gateway:
e We have been asked by Post Office Network (PON) to assess the feasibility
of getting some implementation of GGP on the Horizon platform in time for
a pilot in July! Basically, this is a re-opening of the proposals we.submitted in
November about which nothing has been heard since.
e The Web Riposte decision is of benefit here and we need to consider
carefully how we respond to this latest request.
¢ Meeting with the GGP people directly is an imperative.
e See further detail below.
NAO Report:
e A Public Accounts Committee(PAC) hearing is now scheduled for 22"
January. We have agreed that Tony O. will front the ICL Pathway
representation.
2. PROGRESS
Business Development:
« EFTPOS: Requirements work continues while at the same time, PON want
us to commit to a 2001 delivery. We have insisted that until the
requirements are firmly buttoned down, we cannot commit to a firm date for
delivery. This has also been made somewhat more complex in terms of dates
by the Web Riposte decision. A New Requirements Board on Monday 15"
should help to sort out priorities.
e Mails: No progress since last month due to over-riding priorities from
Network Banking.
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ICL Pathway Customer Requirements Report Ref: PA/REP/OS7
Version: 1.0
Date: 11/01/2001 ”
© Service Improvements: Some evidence of progress but slowly. Unless there is
a clear business case for some of these minor improvements to the system,
then, there is no appetite to progress. We are taking some initiatives now
rather than wait for Change Requests from Post Office. A proposed change
to the method of linking to AP clients will be the first one of these
unsolicited proposals.
e Talexus: Requitements work on this smart key product for electricity
companies is nearing completion. We will then need to assess the
programme impact and look to instal this year. This will involve not just new
software but an additional piece of hardware linked into the Horizon
counter system. There is probably an initial requirement for 1,300 of such
boxes.
e GGP: Subjects requested for consideration are:
e Distribution of form templates to outlets and form printing, selected
from pick-list or by form id, via the A4 printer (a 2” A4 printer is
intended for use in the counter areas of branch offices)
¢ Development and deployment of kiosk hardware/software for customer
facing use - initially information browsing via a secure POCL web portal
ot local kiosk cache
e Integration of kiosks into the Horizon system, including systems
management, support and (longer term) potential data/transaction feeds
to/from the outlet Counter environment for linked transactions ee
hE
This, in effect, represents most of the outlet related work included in our “'
own (unsuccessful) GGP proposal, apparently leaving EYCG to concentrate
on central content management and business process re-engineering.
Specifications of design requirements are promised from mid Jan in draft,
and finalised at-end Jan.
¢ Non-polled offices and Day D: John Pope continues his work with Customer
Service and Development to identify the key issues affecting these areas and
helping to identify solutions such that we can achieve our contractual $LA’s.
e Alternative Collection Point: Discussions are in progress with Post Office to
look at the indicative options for this. It is anticipated that a CR will be
raised by the P.O. early next week so that we can start moving this forward.
This will cater for rural post offices being used as an alternative delivery
point for parcels. This is part of the e-business initiative proving the Post
Office as an end-to-end channel for Internet business.
e Asylum Seekers: Discussions are in progress with Post Office regarding the
automation of this transaction. This is a high profile political hot potato
which is highly prone to fraud.
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ICL Pachway Customer Requirements Report Ref: PARED/OS7
Version: 1.0
Date: 11/01/2001
e Merger of BRD process/ Template and Standard documents: We have
decided to review these documents in alignment with CSLC to ensure that
all areas are covered.
Horizon Communications
e Fujitsu - Re-edited the MIB video for Fujitsu to use in an exhibition in Japan
- similar to ‘Future Focus @ DTI’.
e Brief EnCounters written and distributed via Alex. Next issue due out: in
February 2001.
e Working with Simon Henrick (PR giy helping Financial Services) on a press
release regarding mobiles for distribution towards the end of January.
e Still working with The Post Office regarding the TV 'soaps' - Coronation
Street are still very interested but are still to confirm. Horizon featured on
the Archers in the past week.
3. ISSUES
None
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Service
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ICL’ Pathway Customer Service Report Ref: PA/REP/OS7
Version: 1.0
Date: 11/01/2001
Customer Service Report
1 MONTHLY SUMMARY
. Initial figures indicate Day B and Day C data delivery SLAs were met despite
weather problems affecting BT and System Service and staffing problems
affecting SMC. There were no SLA-affecting data centre issues.
° There were no major network incidents. ISDN availability was 99.88% - all
other SLAs were met.
° Work on current APCM activities is progressing to schedule however we will
not receive approval for the BT, TVL and DVLNI CCNs in the tirnescales
required for the APCM plan.
° PON Business Continuity .has expressed concerns about a campus failover
happening on the same weekend as the migration of the first 2 AP Clients but
we have mitigated the risks as-much as possible.
° CSR+ migration - We are down to less than 40 outstanding Outlets at Cl_3.
The target of less than 100 by the end of the year was met. A number of CI_4
Outlets are reporting a variety of aspects of perceived slow running. Two fixes,
designed to make some improvements in this area, are on their way through the
test and release process.
° APS reconciliation still remains a problem and is receiving priority action within
the Business Support Unit..A joint Pathway / PON reconciliation forum is being
set up in order to progress and resolve APS issues.
e Service Review Book for December SLA conformance was completed and sent
out to PON in accordance with agreed timescales.
° We delivered 72 Operational Business Changes in December and there are a
further 262 Business Change Orders confirmed for the’first 3 months of 2001.
. We have responded to 40 NBSC complaints - 27 justified and 13 not justified.
Still high this period are complaints regarding the CI_4 upgrade and the Cl_4
team has been alerted. There are currently 10 complaints outstanding awaiting
responses, none are currently with the Field Service Managers.
° To 24" December, 135 FSM site visits were completed. Concern continues over
the response of Energis and BT to line faults, particularly intermittent ones, and
the ability of the system to deal with this situation.
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ICL Pathway Customer Service Report Ref: PA/REP/OS7
Version: 1.0
Date: 11/01/2001
1.1 VITAL STATISTICS
Live Base as at 31" December '00: 15,142 Post Offices, 33,369 Counters
Cumulative Data is from 1“ December 99 to 31* December 2000
inclusive
Monthly Data is from 1* December '00 to 31" December '00 inclusive
OBCS
Total number of transactions to date 307,394,333
Total number of transactions in December 43,938,277
Total value of payments to date £23,706,117,092
Total. value of payments in December £ 3,615,078,672
EPOSS
Total number of receipts to date 445,402,742
Total number of:payments to date 95,403,531
Total number of zero value transactions to date 34,778,791
Total number of receipts in December 78,999,643
Total number of payments in December 9,897,509
Total number of zero-value transactions in 5,650,392
December
Total value of receipts to date £ 23,845,522,814
Total value of payments to date £ 9,163,830,229
Total value of receipts in December £ 3,453,519,822
Total value of payments in December £ 1,066,897,112
APS
Total number of transactions to date 137,487,632
Total number of transactions in December 18,807,316
Total value of receipts to date £ 3,670,925,471
Total value of receipts in December £ 497,641,862
NOTES:
e OBCS zero-value transactions include - issue of books, change of address etc.
e¢ Cumulative Data from May 1999 will be published once analysis of archived
Data Warehouse-data is complete.
e¢ Weekly data is now available on the Customer Service web site.
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ICL Pathway Customer Service Report Ref: PA/REP/0S7
Version: 1.0
Date: 11/01/2001
2 PROGRESS
2.1 OPERATIONS
2.1.1 SUMMARY
Initial figures indicate Day Band Day C data delivery SLAs met despite weather
problems affecting BT and System Service and staffing problems affecting SMC.
There were no SLA-affecting data centre issues.
2.1.2 DATA DELIVERY RECTIFICATION PLAN.
e In progress. CP2840 (Outlet Communication Monitoring) design work in
progress. Plan for test and pilot of BT Satelan solution now produced and
work initiated.
¢ Report from Mark Jarosz identifying network issues affecting non-polled
expected shortly. One issue identified is a significant number of eod markers
arrive late rather than not at. all. TDA are looking at how this can be
resolved. .
e TDA have proposed a number of interim measures, which should assist’ in
resolution of non-polled incidents.
© Meeting to discuss LFS SLAs scheduled for w/b 15 Jan.
2.1.3 SYSTEMS OPERATE .. 5
No major operational issues in December.
2.1.4 SYSTEMS MANAGEMENT
No major issues. I will be discussing with Chris Wannell the handover of
development responsibility from CS to development.
2.1.5 NETWORKS
e No major network incidents. ISDN availability was 99.88% - all other SLAs
met.
e Progress is being made in the off-contract invoicing.
2.1.6 BUSINESS CONTINUITY
Host’and campus failover test scheduled for January. PON Business Continuity
has expressed concerns of campus failover happening on same weekend as
APCM migration of first 2 clients but we have mitigated risks as much as
possible.
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ICL Pathway Customer Service Report Ref: PA/REP/057
Version: 1.0
Date: 11/01/2001
2.1.7 PERFORMANCE MANAGEMENT
Acquire is now on the Correspondence Servers and is monitoring all boxes.
2.1.8 REFERENCE DATA
© Quality of reference data remains an issue. Insufficient progress is being
made: by POCL.in this area and has been escalated to BSM.
© CP is in progress to establish basic functionality for pseudo-live capability.
PON has’ produced an initial statement of requirements for up to 70
counters.
e Menu Hierarchy OBC impacts on benchmarking - agreement hopefully now
reached between Pathway and PON and should be ratified at next. contract
admin board.
2.1.9 POCL INTERFACES
e A-number of operational issues around APS file delivery now resolved with a
number of:fixes targeted for M1. HAPS OLA midnight:deadline now moved
to 01:00 to cater for increased volumes.
e Final draft version of generic AP client OLA will be produced beginning of
January.
e Still awaiting Statement of Requirements from PON for CSR+ CTO process.
Token validation for new clients will not be possible for a migrated client
until this is implemented. Critical deadline is Giro migration. Escalated to
John Bruce.
e John Pope still leading on TIP repair file issues.
e TIP have raise concerns on whether current reconciliation process suitable
for Client Migration. Meeting in January to discuss with PON.
e¢ No progress on OLA and service reviews with TIP.
e LFS service ok but slow progress by PON in setting up procedures at NBSC
to handle support calls.
e Discussion with PON re LFS SLAs scheduled for Mid-Jan when Liz
Tuddenham is back from holiday.
2.1.10 AP CLIENT MIGRATION
«* Work on current activities progressing to schedule however we will not
receive approval for the BT, TVL and DVLNI CCNs in the timescales
required for the APCM plan. This will be assessed when the CCNs aré
approved.
¢ PON seems have called an APCM RAB for Tuesday 9" Jan. There. will be an
internal pre-meeting on Monday.
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ICL Pathway Customer Service Report Ref: PA/REP/OS7
Version: 1.0
Date: 11/01/2001
2:4.11 PROBLEM MANAGEMENT
Currently about 42 problems logged
2.1.12 NEW BUSINESS
Our. initial paper on Work Package 2 (Co-location) is required to be complete
ready for customer issue on 15" January. View of TDA is that there are still a
number of fundamental information requirements, which have not yet been
received making this an ambitious target.
2.1.13 FORECAST
Finance review to be held with ISD in January the 2000 reconciliation of
CFM001.
2.1.14 STAFFING.
OMAR preparation underway.
2.2 SUPPORT SERVICES
2.2.1 GENERAL
2 The code fix to resolve the “lost transactions” problem has completed testing
and has entered the.release process.
e A number of CI_4 Outlets are reporting a variety of aspects of perceived
slow running: Two fixes, designed to make some improvements in this area,
are on their way through the test.and release process.
«© There were no significant problems requiring SSC support over the
Christmas period.
© Support Services participated in the BRAO1 Disaster Recovery Walk-through
held in December. A few minor observations were recorded.
e A number of Network Banking Workshops have been attended and SSC
personnel have now been identified for this area.
e The Alert on the problem of failures on the OTI link from PinICL to
PowerHelp (and from Dispatch 1 to PowerHelp) has been closed.
2.2.2 MAJOR RELEASE IMPLEMENTATION
e CSR+ migration —- We are down to less than 40 outstanding Outlets at CI_3.
The target of less than 100 by the end of the year was met. The next target
of all Outlets at CSR+ by Monday 15° January is looking at-risk but
discussions are under way to try and ensure the target is met. Several
single-Counter Outlets have been upgraded via Counter replacement and
several two-Counter Outlets are scheduled for upgrade in this way.
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e M1 migration — Planning for this.is well under way both internally and with
PON. There are a large number of pre-requisites to be completed before M1
can be implemented; all of which have planned dates. The wing server and
the Secure NT upgrade are both at risk at the moment but are being actively
managed to bring them back on target.
2.2.3 METRICS
Totals for the month of December 2000.
Release Notes raised by Release Management 60
Release Notes applied to live 54
Release Notes withdrawn . 14
Release Notes cleared by OTT 60
Total Calls received by SSC 812
Total Calls closed by SSC * 884
© Of the total calls closed, 383 were in categories (e.g. Advice and Guidance,
Published Known Error) which should have been closed by 2 line support.
2.3 INFRASTRUCTURE SERVICES
‘2.3.1 MANAGEMENT SUPPORT UNIT
e APS reconciliation is ongoing with regards to the progress that is being
made, whereby Pathway & PON are still working jointly to resolve the
scenario. A daily APS reconciliation is being carried out that is being used in
conjunction with the daily APS reporting suite. This is being used in order
to bring the accounting’ dates between the two systems into line. A joint
Pathway / PON reconciliation forum is being set up in order'to progress and
resolve APS issues. The first meeting is being held in January in order to
consider existing problems and look at ways of taking steps forward to
ensure APS reconciliation is met.
¢ The Business Incident SLA for this inonth is 96.3%. Due to tackling new
bugs at CI_4, resolution of some incidents is taking longér to resolve and
provide the reconciliation data to PON, as these problems have not been
encountered previously.
e The non-polled Outlets continue to be high for this period. A new resource
has now been drafted in to aid with the Non-Polled Outlets that will input
further into the investigation and resolution of these offices.
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Version: 1.0
Date:._ 11/01/2001
e Service Review Book for December SLA conformance was completed. and
sent out to PON in accordance with agreed timescales. As the period covered
Christmas, there was a marked drop in calls received by the HSH (54,703
compared to a November figure of 82,331). Generally there was an
improvement in SLA performance, however, due to a few failed calls, System
Service Priority A Local & Remote missed SLA.
e Remedial invoices for Q3 2000 have now been issued to PON for
agreement.
2.3.2 STRATEGIC SERVICES UNIT
2.3.2.1
OPERATIONAL BUSINESS CHANGE
° The following tables show actual deliveries for December and firm orders for
changes up to the end of March 2001.
Opening/Relocation/Refurbishment (Outlets)
Month Total Actual Deliveries Actual Déliveries
Deliveries I Allowed Within Additional to Contract
Contract
December 51 20.05 30.95
Month Total I Forecast Deliveries Forecast Deliveries
Orders Allowed Within Additional to Contract
Contract
January 130 21.07 108.93
February 76 22.53 53.47
March 42 23.60 18.40
Closures (Outlets)
Month Total Actual Deliveries Actual Deliveries
Deliveries I Allowed Within Additional to Contract
Contract
December 21 12.53 8.47
Month Total I Forecast Deliveries Forecast Deliveries
Orders Allowed Within Additional to Contract
Contract
January 13 13.17 Not yet exceeded contract
February 1 14,08 Not yet exceeded contract
March 0 14.75 Not yet exceeded contract
ae
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2.3.2.2 CUSTOMER COMPLAINTS
° We have responded to 55 NBSC complaints - 37 justified and 18 not justified
during December. During the month there was a high number of complaints
regarding the CI_4 upgrade and the CI_4 team was alerted to these. Currently
there are 10 complaints outstanding waiting for responses, none of which are
with the Field Service Managers.
2.3.3. BUSINESS EFFECTIVENESS
. Version 1.0 of the CS Process Manual is awaiting sign-off but will be subject to
ongoing maintenance during 2001 as the CS business continues to évolve and
the CS top-level process view contained in the CS Process Model changes.
° A first draft of the integrated and re-written joint Pathway / PON SMF was
completed and sent to Nick Embling (PON joint author) for comment.
2.3.4 FIELD SERVICE MANAGEMENT
° To 24 December 135 site visits have been completed. This was less than
anticipated, as many Postmasters asked not to be visited prior to Christmas.
. Concern continues about the retention of Implementation documentation, and
moves are now being made to retain this locally for use by the FSMs.
° PON have approved an Environmental Assessment service, and the first use’ of
this will be at Frensham Way in early January:
. PON have begun using a Service Improvement Process, taking suggestions from
Postmasters. Previously, PON had indicated that FSMs could be involved in this
process, and this will now be explored.
° During December, a number of single-position sites experienced data loss due to
a combination of events. A fix has been identified and a solution is being tested.
FSMs have assisted at these sites to represent ICL and to support the Postmaster
and Area manager in the recovery of the data. It is believed that no financial
accounting data has ultimately been lost.
. Concern continues over the response of Energis and BT to line faults,
particularly intermittent ones, and the ability of the system to deal with this
situation. A PinICL has been raised in connection with this and is with the
TDA.
. An office has complained of repeated “phantom transactions” on the Horizon
system. The FSM visit determined that the source of this was the Postmaster’s
dog, which was in the habit of jumping up and putting his paws on the
keyboard.
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° An office in Loughborough was experiencing frequent screen freezes. Previous
investigation has shown that these can be caused by electrical interference. An
FSM visit noted a background “hum” in the Post Office — caused by the large air
conditioning plant and refrigeration equipment in the Chinese restaurant
sharing the building with the Post Office. Replacing the monitors with latest
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ICL Pathway Quality & Risk Report Ref: PA/REP/O5S7
Version: 1.0
Date: _ 11/01/2001
Quality & Risk Report
1. MONTHLY SUMMARY
° Security. Key management support for migration continued. A project manager
for implementing the anti virus approach is now in place. A proposal is being
made for compliance / vulnerability software. The level and complexity of data
extractions is increasing and causing concern — will be discussed with POCL.
° Quality. IS09001. A Corrective Action Plan has been issued to BSI. Preparation
for the formal assessment (starting 5/2/01) continues. Process documentation is
generally in a good state. The state of Pathway documentation in general was
escalated and is now receiving urgent attention. The bMS site is now developed
and is being maintained.
° Audit. The programme for Q1-Q2 2001 has been agreed. TORs are being
developed and agreed for the first 2 audits.
° Disaster Recovery. Plans are being updated to reflect the organisation changes.
2 PROGRESS
2.1 SYSTEM SECURITY
2.1.1 GENERAL
© CP2292 et al (Anti-Virus software on the Live-Estate). A forecast CP for a
dedicated Project Manager was approved. The agreed solution for the
delivery of anti-virus software to Datacentre boxes, remote FTMS gateway
PCs and various standalone machines will now be taken forward under
formalised project management and implementation is targeted. for May/June
2001.
« Work has been completed on the evaluation of various compliance toolkits
to facilitate remote checking of security policy compliance across the live
estate. Implementation will now be progressed via a CP.
e DPA. The existing Subject Access Request procedure is being amended to
reflect Pathway's agreed data ownership responsibilities in respect of
Knowledgepool and HSH. The issue of ownership of other data processed
by the Horizon system has been raised again with PONU and the importance
of urgent resolution has been stressed.
e Security and Audit Trai! documentation continues to be reviewed as part of
the ISO 9001 plan. Only a few documents now remain to be baselined.
Work is also underway on incorporating measures for process improvement.
© Work was completed on four Audit Data Extractions in response to PONU
requests. The number and complexity of data extractions is increasing and jis
giving cause for concern ~ will be discussed at the review meeting with
POCL on 10/01/01.
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2.1.2 CSR+
e The Key Manager successfully processed all key requests received this
month. Significant effort was expended in helping to achieve the agreed
target of only 100 migrations outstanding by December 9". In addition to
the scheduled rollouts, there were numerous requests for the manual
opening of migration doors and for checking the status of keys.
e° The KMS Key Manager continues to consolidate knowledge of the KMS
system and is performing a daily analysis of migration/rollout activities to
inform the programme. The KMS User Guide.is being baselined prior to M1.
2.2 QUALITY
e 1809001 Programme.
e The BSI Pre-assessment Action Plan (IA/CAP/020) was submitted to BSi
on 15/12/00.
e Document Control is being addressed as a matter of urgency by all
Directorates, and significant progress is being made. QM _ has
established a listing, which is being reviewed weekly. Outstanding
documentation has been reduced by well over 50%.
e QMS Documentation. Pathway process Management Process
(PA/PRO/038) has been updated for review; Intranet management
processes have been developed and approved. Other documentation
is being progressed and will be approved during January.
e Process Review Forums for each directorate continue regularly, to
review process development, records, implementation of measures.
Good progress has been made. The major outstanding area is now
TDA — a corrective action plan is being reviewed.
e The Business Management System (BMS) intranet site is now fully
established and being maintained.
e The new version of 1S09001 (2000) was approved in December.
Pathway will have to be certified against this within 12 months of gaining
initial certification against the 1994 version. The major changes and
work needed will be determined after the formal assessment in February.
2.3 AUDIT
¢ Internal Audit Plan for 2000 has been documented.
e Internal Audit Plan : 2001 (Q1 & Q2) has been approved. Work is now
underway on defining TORs for the first 2 audits — Implementation tail
management and supplier management.
e An Internal Audit Committee meeting was held on 11/12/00, which
discussed and agreed the approach to audits during 2001.
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2.4
e Audit Manual ~ the document (LA/MAN/003) has been updated substantially
and is now awaiting approval at issue 2.0
e Joint Audit preparation. POCL have requested audits of invoicing,
reconciliation and OBCS processes during Q4 of 2000/01. These will be
discussed at the liaison meeting on 10/01/01.
e@ CAP Monitoring. Some CAPS have been open for over six months.
Approximately 50% of CAP actions are still open and increased effort will
be required to get the issues resolved and actions closed. A weekly list of the
high priority open CAPS will be circulated to the actionees and their
management to ensure attention remains focused until resolution is:achieved.
e Audit Documentation. The audit documentation is now in a reasonable state.
The key audit planning documents are in the process of being approved and
the outstanding CAP documents have been moved to Version Complete
which brings them to a formal status while allowing work on them to be
progressed.
DISASTER RECOVERY
¢ DR plans are being updated to reflect changes in the organisation. This will
be completed during February. 8,
e A ‘message link’ has:been established which will énable Pathway staff to call
to listen to a pre-recorded message in the event of a disaster. The telephone
number and location of the Guardian Disaster Recovery site will be printed
on white ‘credit cards’ for staff distribution with revised plans. "i
ISSUES
Requests for audit-extractions continue to place a high demand on resources and
the Audit Servers. Requests for PACE witness statements have begun and initial
signs suggest this may increase. Problems have arisen from potential misuse of
the ad-hoc request procedure operated by MSU. An imminent meeting with
PONU will discuss these and associated issues.
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ICL Pathway Implementation Report Ref: PA/REP/O57
Version: 1.0
Date: 11/01/2001
Implementation Report
1 MONTHLY SUMMARY
A total of 15,291 Post Office outlets have had the Horizon system installed, as at close
of business 15 December 2000. This represents 85% of the current.agreed number of
open outlets (17,998). It is now anticipated that this will fall to less than ‘17,950
outlets by the end of rollout. :
Rollout is on schedule to achieve the next payment milestone (reduced to 17,134
outlets by 9 March 2001 due to an increase in the number of suspended and closed
outlets) with headroom of 300 outlets available beyond that. We are also on target to
achieve the current. outlet revenue forecast of 17,650 outlets by 30" March 2001.
Recent commercial negotiations with PONU have successfully reset the payment
milestone target to the lower figure above to take account of attrition over which
Pathway has no control. The target for the rollout payment milestone is reassessed
each month, in accordance with approved CCN 65Sa, to take allowance of PON
suspended or outlets closed during the previous month.
Significant rescheduling has taken place for all rollout weeks in 2001 to allow for
higher expected rates of attrition. Rollout volumes have also been increased to allow
for the lower level of achievement of late. It is therefore anticipated that rollout we
return to a trend of achieving target levels when we recommence on the 8" January
2001.
Implementation closedown plans continue to be implemented with a small number of
staff having left the team at the end of December. A further 8-10 staff are planned to
be released at the end of February, in accordance with close down planning. Back to
back plans with Pathway Customer Services are in. place and , from 8" January 2001
CS will take over responsibility for new infrastructure activity. Implementation will
conclude existing infrastructure activity during January/February and will hand-over
installations to CS from mid-May 2001.
2 PROGRESS
Infrastructure Preparation
All outlets being released into the programme from suspension for completion of
infrastructure activity are now under the management of Pathway Customer Services.
Pathway Implementation is completing all infrastructure activity already underway but
will not accept any further outlets for entry into the infrastructure programme. The
only exception to this will be the expected request to prepare and install Head Office
Counter positions. All other new infrastructure activity must be passed to Customer
Services.
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There are now less than 100 infrastructure activities remaining to be completed under
Implementation management. This includes a combination of surveys, modifications,
preparations, snagging items and mobile surveys and preparations. In addition to this
they were, as of 2 January 2001, approximately 75 sites classified as Can’t Do/Won’t
Do requiring Post Office attention.
In addition to the above planned activity, Pathway has received a request from the Post
Office to prepare and install head office counter positions at 46 new geographic
locations. This is currently being processed and will be undertaken by Implementation
to ensure that OBC resources are not over-stretched. Consequently, it is anticipated
that the Implementation infrastructure team and our supplier Pearce will remain in
place to the end of February to complete the work.
The Implementation infrastructure team will be disbanded following the completion of
existing work and will transfer to Large Projects Division.
Installation Activity
Having achieved the third rollout milestone in November, the remaining goals are:
e To achieve the final rollout payment milestone in March (99% of Rollout Part A).
This has a value.of £90M.
e To achieve and exceed the target of 17,650 outlets installed by 30! March 2001
thereby meeting budget expectations for revenue and profit for 2000/2001.
e To complete Rollout Part B, less 40 CS. outlets, by mid-May 2001 and close down
the Implementation team.
Rollout was suspended on 15" December 2000 to prevent impact to Post Office
business during the busy Christmas period. The cumulative number of installed and
migrated outlets at the end of the year 2000 was 15, 291, representing 85% of the toral
number of open Post Office outlets. Rollout réstarted on 8" Janitary 2001 with a
target beat rate of 290 outlets for the first week.
Considerable activity and checks have been undertaken during the Christmas cessation
of installations to ensure that target beat rates are achieved. Consequently it is
anticipated that the trend of under-achievement against. the target which occurred in
the latter part of 2000 will not be repeated in the 5 final months of rollout. However,
there are still some remaining legacy issues with satellite planning permission not
having been progressed expediently and we will continue to see some suspensions in
this area but to a lesser extent than last year. Similar sites suspended last year will
however be rescheduled and it is therefore hoped that any suspensions in the coming
weeks will be filled by the rescheduled outlets as they obtain satellite planning
permission. Additional checks have also been introduced for ISDN serviceability and
configuration and it is anticipated this will result in fewer on-the-day install issues.
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Date: 11/01/2001
Looking ahead to the week of 22" January, suspensions have accounted for a larger
than normal reduction in available outlets and as a consequence it is unlikely that the
target beat rate of 280 outlets will be achieved. A revised total of 265 installs is
forecast although efforts are being made to reduce the number of suspensions in this
week and to reschedule outlets being released from suspension into this week to make
up the shortfall. It is anticipated however that the target beat rate will.be achieved in all
other weeks.
Production of the mobile systems is underway and on track to commence rollout to
mobile outlets from 29" January 2001. A pilot installation is planned for install on 18"
January. The programme to achieve this is very tight and dependant on completing
EMC testing and timely parts delivery from Canada.
Implementation Closedown
Preparation for the hand-over of Implementation activity to Pathway Customer
Services is making good progress. The document, Implementation Hand-over to
Customer Services, IM/REQ/074, has been reviewed and agreed by all parties and is
ready for approval.. The scope of the document covers the hand-over of infrastructure
preparation. The hand-over of Installation activity is covered in IM/PLA/024, ‘
Implementation Close Down Plan which is currently at draft status. a
Peter Goodwin has confirmed that CS infrastructure process preparations are complete .
and that they are ready to accept released outlets into the programme under their ca
management. CS and Implementation will hold a formal review with PONU to agree
the final outlets to be released into the infrastructure programme in the week
commencing 8 January 2001. Of the 93 outlets remaining, it is understood
approximately 45 will be released, 30 will close and 20 will be released but are not yet
available. All of these outlets will have their preparations completed under CS
management. In parallel with this activity, the Implementation team will complete
outstanding infrastructure activity under their management, which includes a total of
just fewer than 100 remaining activities.
The installation programme will be handed over to CS in mid-may of this year and will
continue to be managed by Implementation until that time. Preparations for the hand-
over of installation activity are in progress and on track to achieve the hand-over date.
In accordance with the Implementation Close Down Plan, the IP teams in IP1 and IP3
will be disbanded at the end of February 2001. The responsibilities of these two teams
will be passed to the teams in IP2 and IP4 réspectively. In preparation for this
amalgamation of IP regions and transfer of responsibilities, the Implementation Field
manager has begun drafting plans to manage the transfer and communication of the
change in management. Written communication briefings will be produced in advance
of the transfer to ensure all parties are aware of and understand the changes including
revised points of contact and telephone numbers.
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Version: 1.0
Date: 11/01/2001
Summary of Rollout Status
ACTIVITY ANGE ULATIVE
Number of Open Post Office Outlets “45 17,998
INFRASTRUCTURE PROGRAMME
Sites Entered Into the Programme -43 17,994
Sites Remaining:to be Surveyed -306 12
Sites Remaining to be Prepared -369 67
INSTALLATION PROGRAMME
Sites Migrated and Live +9 15,291
Percentage of Open Sites Live . 85%
Counters Live 34,735
3 CURRENT CRITICAL PROBLEMS
No new critical issues have arisen.
The invoice dispute with ntl: has been resolved satisfactorily in favour of ICL. An offer
has been accepted which represents a cost saving against the forecast of £550K.
A settlement for the projected shortfall in training courses against the contracted
number, arising from low course occupancy levels, has been agreed with the. Post
Office. As part of a package to achieve relaxations against existing service SLAs,
Pathway will pay the first £1M of the training shortfall. Beyond this PON and
Pathway will share the shortfall equally. Measures to improve occupancy levels have
been implemented and consequently reductions in the estimated shortfall have been
achieved in each of the last three months. Initial occupancy levels in January are also
favourable. The cost of the projected shortfall has therefore fallen from £1.3M to
£1M. Efforts continue to improve this with the aim of reducing Pathway’s
contribution. This improvement however represents a £300K saving compared to last
month’s financial forecast.
4 ISSUES
Concerns over Energis poor performance in the ordering and installation of ISDN lines
and satellite communications continue. During December there were signs of
improvement but the achievement overall remained inadequate. A further meeting
with the UK MD of Energis, Bob Taylor was therefore held on 19° December 2000.
At the meeting, Pathway pursued our claim for compensation and expressed our
continuing concern and need for urgent action to improve performance and specifically
address programme management issues. Since that meeting Energis have accepted that
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their programme management of satellite communication sites has been inadequate and
have demonstrated improvements in this area. As a result, the quality of information
regarding their programme status has been better and a small improvement in the
number of completed ISDN and satellite installations has been observed. ‘It may
however be another 6 weeks before the quantity of satellite installation delays reduces
to an acceptable level owing to the process lead-time for installation planning
permission. In the meantime, every effort is being made to achieve rollout targets
through rescheduling of outlets previously suspended. An improved offer of
compensation is also expected.
Rollout plans assume up to 14 Horizon installations using satellite communications
may be installed concurrently although currently there is a small risk that no greater
than four can be achieved at the same time. It is believed that when four or more sites
are installed concurrently that the software synchronisation is much slower resulting in
significant delays. Since installation teams install up to 3 sites per day, such delays
could lead to the second and third sites being aborted if this is not addressed: Loss of
these sites, combined with other rollout risks, could pose a small threat to achievement
of the forecast installation revenue target. Testing of various quantities of simulated
concurrent satellite installations is underway to determine whether design changes or
increased satellite bandwidth are required to support the rollout plans. Contingency
plans to reduce the peak levels of concurrency are also being prepared. This may Also
pose a threat to future software distribution to the live estate and hence the testing is
being progressed as a high priority. ; .
5 COSTS — Z
The Implementation forecast remains within budget and is on track to achieve the task
and revenue targets for the year.
Following a lengthy negotiation with ntl:, a favourable offer to settle the dispute over
payment for “weekly shortfall charges” was received and accepted by Pathway in mid-
December. This has enabled an overall improvement in the forecast of £550K with
other savings also achieved by offsetting associated costs within the Joint Infrastructure
budget with PONU.
In early December, Pathway implemented with PONU the last of a package of measures
designed to improve training course occupancy. In the last three months, following the
introduction of these improvements, course occupancy levels have been steadily rising
relative to predicted levels. Consequently, the forecast total cost of additional training
arising from poor course occupancy has dropped from £1.3M to £1M. It is hoped that
this will continue to fall in the coming months, particularly since, in order to secure
required relaxation’s in customer service, Pathway have agreed to pay for the first.£1M
of additional training costs.
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Version: 1.0
Date: 11/01/2001
Management of business risk within Implementation continues to make good. progress
with all identified risks reducing in terms of probability and potential impact.
Contingency funding in this area is therefore.being. gradually reduced. With the
imminent conclusion of outlet preparation activity, infrastructure contingency funding
to the value of £280K has also been released.
A demand for compensation from KnowledePool for training scheduling failure and
the additional costs arising from this has.been prepared. The decision to progress this
must be balanced with the need for flexibility from KnowledgePool in rescheduling.
Their co-operation-is critical to the high level of rescheduling necessary to ensure outlet
installation forecasts for this year, including the associated revenue and’ profit targets,
are achieved.
Additional training revenue of up to-£97K has been added to the forecast based on an
increased customer requirement for incidental training courses.
Negotiations with Energis for compensation relating to failure to install ISDN lines as
required by the contract remains ongoing. An offer of £50K has been received and
rejected on the basis that it is a significant under-estimation by Energis of the costs
incurred.
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Organisation
& Personnel
Report
ICL Pathway
FUJ00058197
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Organisation & Personnel Report Ref; PA/REP/OS7
Version: 1.0
Date: 11/01/2001
1 MONTHLY SUMMARY
Organisation & Personnel Report
Good progress continued to be made on both replacing freelancers with permanent
employees and on reducing their total numbers.
The Implementation Transition Plan was brought up to date in the light of some
changes to the route by which Pathway employees can transfer to P&PS and a
communications plan has been put in place to minimise the impact of these changes.
The final list of people who will transfer from P&PS to Pathway was agreed.
2
PROGRESS
Appointments'in December:
External Recruits
Transfers In
P&PS
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
Known Joiners
External Recruits
Transfers In
P&PS
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
December Leavers:
Permanent Staff
Freelance
Transfers Out
Linkwise assignee
P&PS
Fixed term Contracts
Adecco Temps
TOTAL:
1 (3 month assignment)
1 ow
an
18
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Date: 11/01/2001
° Known Leavers:
Permanent Staff 6
Freelance 1
Transfers Out -
Linkwise assignee -
P&PS 5
Fixed term Contracts :
Adecco Temps -
TOTAL: 12
° 7 people came to the end of their roles on the Implementation programme in
December and all permanent employees were redeployed within the Company.
Employees on assignment returned to the P&PS, some people took up roles in
Roll-Out Services and one transferred to Pathway Customer Service.
All employees were briefed on their current expected end date with the project
in order to help them to plan to find new roles. The Pathway Human Resources
Department is co-ordinating this process and all vacancies within Pathway are
first being advertised internally.
e The planned people moves to consolidate space in Bracknell took place in
December. There were some issues that arose as a result of the move and these
were dealt with at the time.
° 5 relatively junior ICL permanent staff have resigned and are due to leave
imminently. Exit interviews are indicating that whilst they:all are very: positive
about their time at ICL, they are generally leaving for higher salaries, a base
increase of 50% in some cases.
New Business
° ERA, No change or additional requirements reported. There is an expectation
that ERA will require 8 additional high level designers in May/June timeframe.
A decision will be needed by the end February latest if we are to have a
reasonable chance'to supply.
. Network Banking, See Note Below
e Eftpos, GGP and Service Delivery, See Note.Below
The resources required for Network Banking and Eftpos etc are not yet specified
again the above will apply. The market for resources is still tight and the longer
advance warning provided the better the chances of delivering.
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Dare: 11/01/2001
In terms of. Resources all businesses with ICL are chasing VB, C++, Unix and
NT skills at-all levels. So it is important to ensure thar all the managers realise
that forward planning is essential.
Transfer of Resources from e-Applications to Pathway
° 91 people have been identified for transfer to Pathway. Work is currently
underway which will ensure that the employees will transfer into Pathway early
in 2001.
Freelancer Reduction and replacement
Update 02-Jan-01
Summary No of Heads
Freelancers in Pathway 01/12/00 142
Freelancers in Pathway 31/12/00 140
Freelancers in Pathway 02/01/00 134
Current FC of Freelancers in Pathway on 01/04/01 “80
Current FC of Freelancers in Pathway on 31/02/02 53 * ed
Of the 8 Freelancers to leave by the end of December 2000, 4 were planned i.e. had
reached the end of the role. In addition we had 2 Freelancers who went 1 month and-3
months earlier than planned, as a result of the ZBB activity within the DU. There were
then 2 unplanned. resignations within the Programme Office and we were. able to fill
one of those roles from P&PS, with one vacancy. So all in all a good month.
By the 1* February we will have reduced the total number of Freelaricers by a further 8
heads to 126, these are definites i.e. they are at the end of their role within the project
By the 1* March we will have reduced the total number of Freelancers by a further 11
heads to 115, these are definites i.e. they are at the end of their-role within the project.
All these roles come from the BTC Unit. Only risk would be a slippage in M1.
By the 1* April we will have reduced the total number of Freelancers by a further 31
heads to 84, 26 of these are definites i.e. they are at the end of their role within the
project. 5 are at risk because we have to find replacements, so although they will go
they could slip by a month.
The Task for 2001/2 is to reduce the Current FC of 53 Freelancers in the business to
approximately 30.
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ICL Pathway Organisation & Personne! Report
3 ISSUES
There is no longer a direct route for Pathway employees to transfer directly
from Pathway to the Technical Centre. This particularly impacts employees in
the Implementation team and may affect their morale. A communications
process was started iri December and will continue in the New Year. This will
explain the new process.and the support that the Human Resources team will be
giving to help as many people as possible to find new roles. Hopefully the
impact-on morale will therefore be minimised.
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ICL Pathway Post Office Client Report Ref: PA/REP/OS7
Version: 1.0
Date: 11/01/2001
The Post Office - Client Director’s Report
1 MONTHLY SUMMARY
ICL has been confirmed as a Strategic Supplier to Consignia plc.
2 PROGRESS
Strategic Supplier. Les Graney has confirmed ‘that ICL has been selected as one of
eight IS/IT suppliers who will be accorded a monthly review/planning meeting with his
department (Technology and IS Strategy). The eight-and their T&IS “sponsors” are:
ICL; SAP; Siebel: Wendy Powney +
Microsoft; I Compaq: Gerald Burnett
BT David Lacey
HP; IBM: Alan Shepherd
This will be a welcome opportunity to gain and maintain a clearer insight into the
developing directions and plans for Post Office IS/IT.
Qne Stop Shop (MC).. Contractually ICL MC’s contract finishes in April 2001 and the
ComputerCenter contract finishes April 2002. The replacement “desktop sourcing”
could well include the PO people (300 Regional Support staff?) and might include the
maintenance Given the one year procurement cycle, the re-bid will start this March.
We have alerted ISD to this potential.
Service Delivery Options (Confidential — not for discussion with PO staff)
All internal services units within Post Office Services Group are being reviewed with
two significant questions being asked in relationship to internal or external supply
options:-
. Is ita viable.internal service?
° What would change if this were external?
The options plan is divided into "Tranches":-
Tranche 1 (underway): Incliided ROMEC (who are seeking’a partner to join a JV).
As this is similar to WTL, there is no ICL interest.
An Employee Health Programme is also being considered for a managed service.
Tranche 2 (under review): This includes the David Ferguson’s Business Systems Group.
Group IS/IT ((Les Graney) are NOT part of this review , leading to speculation they
could be identified as potential contract’ managers for any managed service/outsource.
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All 2,500 staff in Business Systems are potentially under review, as there is a view in
PO that Business Systems “have not-stepped up to the challenge".
Tranche 3 (being planned) Will include other POSG services (legal, purchasing: ctc)
SMPP/ e-infrastructure. Tony Gale with John Bell met with Lee Laver in Chesterfield
in order to understand how he might take forward some of the principles described in
Tony's previous work - which Chesterfield have always been slow to adopt. Specifically
on the Platform 2000 rollout, Steve Reay has discussed our joint concerns with
Microsoft and confirms that there is now a small contract in place with PO for us to
validate W2K design.
SMPP/ Peregrine. An action plan was agreed by ISD-GIO with Post Office before
Christmas which detailed the conclusion of weekly testing and a move ‘to the
production server. The drop dead date is 12 Jan for live running in order to assist with
budget setting...but there seems to be little contingency. The ISD consultant continues
onsite.
A new plan will be developed to supply two-month rolling resources in order to
provide. support and skills transfer.
e-Business. The continuing non-announcement of tender decisions (compounded by
the omission from shortlist of seven large current PO suppliers IBM, CapGemini,
Microsoft, Andersens, PwC, SAP, ICL) has caused much debate within PO. The
Business Systems unit responsible for delivering eBUS systems complain they were not
involved in the procurement process. This has all the signs of turning into another
“parked” procurement exercise. We hold onto the statement “existing contracts can of
course be used for eBusiness where appropriate”.
GGP. We are pleased to see that the infrastructure ideas and proposals to support
GGP that we put to D Waltho and team are now emerging from PON as requirements
on Pathway — Liam has therefore picked up this activity.
Consultancy Framework Initial OJEC response submitted 13 October for a wide
range of {T consultancy services in 13 categories. ITT has slipped to February.
SmartCard Detailed planning under way for the PO-wide Smartcard seminar February
20/21, supported by ICL and Microsoft. The agreed clear intention is to promote the
business benefits of smartcards within and without PO, using ICL skills and services.
PO will pay ICL £20k for seminar services including’a tailored SmartCity demo. With
potential for smartcard services for Banking, Travel and Citizen applications within
Post Office this will be a strong platform on which to gain visibility.
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Date: 11/01/2001
3 CURRENT CRITICAL PROBLEMS
Peregrine
Andy Luckett of ISD is due to conclude this work imminently (see above).
WDM ParcelForce Worldwide Despatch Manager - is being downgraded from Red
Alert to ISD Divisional Alert following 2 weeks good performance. Next review (called
by Imanishi-san and Nagai-san) early Feb.
ATT eet
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