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POLB 04/61 - 04/85
Post Office Limited
(company no. 2154540)
Minutes of the meeting of the Board
held at 148 Old Street, London
on. September 1° 2004
Present:
Sir Michael
Hodgkinson Non-executive Chairman
David Mills Chief Executive
lan Anderson Human Resources Director
Peter Corbett Finance Director
Brian Goggin Chief Executive, Bank of Ireland
Graham Halliday Banking & Financial Services Director
David Miller Chief Operating Officer
Gordon Steele Sales & Marketing Director
Elmar Toime Executive Deputy Chairman, Royal Mail Holdings
In attendance:
Jonathan Evans Company Secretary
Neil Owen Notes
David Smith Delivery Director (Acting IT Director)
Simon Broome Programme Director, Crown Office Strategy (for POLB04/66)
Martin Gafsen Investment Director, Group Finance (for POLB04/71 —
POLB04/73)
David Kennedy Managing Director, First Rate Travel Services (for POLB04/68) t
Apologies:
Allan Leighton Chairman, Royal Mail Holdings
POLB04/61 APPOINTMENT OF DIRECTOR POLB(04)48
The Board noted that the Royal Mail Holdings Board of 4"
August 2004, had agreed to the nomination of Brian Goggin,
Group Chief Executive, Bank of Ireland, as non-Executive
Director of the Company and that consent had been obtained
from the Secretary of State. The Board unanimously agreed to
the appointment of Brian Goggin as non-Executive Director of
the Company, with effect from 1*' September 2004.
POLB04/62 MINUTES OF PREVIOUS MEETING POLB(04)5™
The Board approved the minutes of the Board meeting of 16"
June 2004,
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POLB04/65 CHIEF EXECUTIVE’S REPORT
David Mills reported the following matters to the Board:
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(vi) Call Centre: A visit to the Junction Call Centre had
revealed a very professional operation, which
stood in contrast to the Royal Mail Call Centre.
Several areas had been identified where the
relationship with Royal Mail Call Centre needed to
improve;
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POLB04/66 CROWN OFFICE STRATEGY UPDATE POLB(04)50
David Miller introduced Simon Broome to the Board. Simon
Broome circulated a presentation.
The Board noted the paper and presentation, and concluded
that, despite the risks that had been outlined, this continued to
be a manageable proposition.
The Board agreed that:
(i). the current programme of conversions and
closures should continue and be prioritised
Action: appropriately. A list of actions against various
David Miller headings would be produced for consideration at
the next Post Office Ltd Board;
(ii) the programme would tackle the 25 biggest loss
makers first;
(iii) re-sites would be related to property potential;
(iv) further closures would be considered in the light
of likely public and CWU reaction;
Action: . (v) an update would be provided at the next Board on
payiet Miller the outcome of the CWU negotiations;
ction: (vi) a risk assessment would be performed against
David Miller the list of headings set out in Annex A of the
Action: Crown Office Strategy Paper;
ane (vii) a contingency plan would be drawn up to contain
Pavid Miller the risk of Industrial Action; ;
(Peter Corbett) (viii) a final proposal would only be put forward to RMH
Board once the detail of the proposition had been
approved by the Post Office Ltd Board.
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POLBO04/67 RURAL NETWORK UPDATE POLB(04)51
David Miller circulated a presentation to update the Board on
the future of the Social Network Payment and the shape of the
rural network. The Board noted the presentation, and in
particular that:
(i) a two year roll-over had been agreed in principle
until 2008 on similar conditions. There would be
no change in current policy until 2006;
(ii) although. the financial position was secure until
2008, the fundamental rural cost and revenue
problems remained. The Social Network Payment
would need to be used to help deliver a credible
‘cost neutral’ rural network by 2008;
(iii) to date, stakeholder acceptability and concepts
had been tested, the modelling capability had
been developed and the strategy had been -
proven;
(iv) the next stage would be to pilot changes on the
ground and re-engineer solutions.
Action: The Board agreed that the question of regionalising the Social
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Network Payment would need to be discussed with DTI.
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Action:
David Miller
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CALL CENTRE STRATEGY POLB(04)54
David Miller presented the Call Centre Strategy paper to the
Board.
It was explained to the Board that Post Office Ltd currently
subcontracted two call centre campaigns to Royal Mail UK,
namely Post Office External Customer Helpline, and Post Office
Branch Support line. The relationship had proved difficult, and
although improvements had been made, further opportunities to
existed advance the productivity of the service by investigating
outsourcing opportunities.
The Board noted the paper and further noted that: forecasting
volumes had been exceptionally difficult because Government
had not been able to share the proper management
information.
The Board agreed that market testing should now take place,
and the results would be presented at the next Board meeting.
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POLB04/73 +1 SALES PROMPTS BUSINESS CASE POLB(04)57
Gordon Steele presented the +1 Sales Prompts Business Case
to the Board.
The proposal required modification to the Horizon system to
provide sales prompts for counter staff to increase. sales of
profitable products. As a secondary consideration, this prompts
facility would be used to address money laundering compliance
issues in Post Office Ltd’s counter operations
Action: Subject to concurrence from the Banking & Financial Services
Gordon Steele directorate, the Board approved the business case and agreed
to:
(i) development of the Horizon system to provide the
prompts capability;
(ii) deployment of the completed programme;
(iii) a total expenditure of £1.9m.
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POLB04/82 BANKING & FINANCIAL SERVICES REPORT POLB(04)67
The Board noted the report.
POLB04/83 IT REPORT POLB(04)68
The Board noted the report. The Board further noted:
(i) the Period 4 Delivery Plan Status Report circulated
by David Smith;
Action: (ii) that the Horizon IT Roadmap would be provided
David Smith . for consideration at the next Board meeting.
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POLBO04/85 ANY OTHER BUSINESS POLB(04)70
The Board agreed the revised list of authorised signatories,
namely Neil David Owen and Anna Louise Malley, to
authenticate the Company Seal, in addition to the Directors and
Company Secretary.
CLOSE
There being no further business, the meeting was closed.
} Sir Michael Hodgkinsot
10 H
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