POL00139111 - Post Office Presentation re Sparrow - Weekly Steering Group

Evidence on official site

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Sparrow
Weekly Steering Group
29% August 2013

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Agenda

1. Specific Agenda items
1. Branch User Forum
2. Programme update:
4. Work streams highlights
2. Budget (no updates for this meeting)
3. Risks

3. Next Meeting will be on Tuesday 3" September at 4pm.

Decisions for this meeting
1. Agree Branch User forum TOR

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Public Commitments - work stream updates

[Work stream IUpdate Status

Initial Complaint
Review and
Mediation
Scheme
(Complete Cases)

Adjudication of
future cases

Branch User
forum

* Mediation Pack agreed by Working Group
+ The Working Group have agreed to extend the submission date to 18°

November as the date for launch has been pushed back, so that
'SPMRs have enough time to submit their applications.

‘The pack was distributed to via JFSA, Shoosmiths and MPs.

Finding and agreeing a panel of independent advisors continues so that
we can provide a mix of legal and accounting support for SPMRs with
good geographical coverage.

Planning for the 5* Sept training day for independent advisors and
mediators is progressing.

Mediators agreed and appointed (CEDR)

‘Common agreement reached on majority of Working Party TOR, the
only exception is that SS believe they should have a voting right on the
Working Perty and JFSA disagree - Susan is managing resolution of

thi

issue.

We currently have 6 potential candidates for the independent chair.
‘AD and briefing pack will be created this week for Paula to review.
‘Once on board the Independent Chair will review the future process:
post March 14- therefore this work stream will be re-planned.

Updated TOR submitted for Steering approval.

Green

Amber

Green

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Other work stream updates

exer I _

Legal (criminal
cases)

+ Planning meeting with Brian Altman QC. The QC will provide an initial
steer on the process for existing cases. This session will be the first
step in helping us define a process for future cases.

* Current plan will be reviewed following QC steer.
+ Weare urgently working with our external firms to identify an

Improvements &
Culture change

Communications

Technology

independent expert to provide evidence on the Horizon system.
See slide 5-6. Completion of initial case reviews on hold until QC
meeting.

See slide 7-9

See slide 10

See slide 11
2 Ref data changes moved into release 9 test cycle.

Amber

Green

Green

Green

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Legal Update — Case Review

Statistics Fully
as at Reviewed
14/8/2013

To date

Remaining 70 16

Disclosure
recommend
ed

Discon
tinued

Comments.

The cases of J Patel, Brown, Wylie and
Knight have been terminated.
‘Samra has yet to be terminated.

Itis estimated that there are
approximately 70 sift reviews left.

This includes 37 RMG files from
archive, yet to be received and in the
region of 15 files from Northem Ireland
Itis not yet clear how many cases will
be cases will be received from Scotland

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Active cases @

Currently there are no active cases

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Improvement work stream — progress to date

+ Mapping of the “as-is” and identification of “quick-wins” and improvement
opportunities has started. A consistent survey is being used and engagement
sessions have been held with the following teams.

+ Finance Service Centre —ATM team

+ Finance Service Centre — Santander Team

+ Finance Service Centre — Mails and Stock Team

+ Regional Sales Managers

+ National Contract Managers.

* Contract Policy Team

+ Restrictions Manager

+ Retail Cash Team

+ Contract Team — Agents Application Process Team
* Contract Team — Crown Transformation Recruitment process
+ Contract Team — Franchise Support

+ Engagement sessions will continue with the following teams w/c 26" August:
+ National Federation of Subpostmasters
+ Regional Manager and Field Team Leaders — South
+ Security
+ NBSC
* Customer Care and POEX

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Improvement work stream - Emerging gaps and issues @

+ The mapping of the “as-is” process also includes capturing the emerging gaps and
issues. The results captured so far have identified some common themes:

An individual issue has also been identified during the initial discussions with Finance
Service Centre regarding the contract with Santander. Whilst they are contractually

obliged to resolve discrepancies within 3 weeks, they are in arrears and are currently
resolving errors in Week 53. These errors are largely credits which are owed back to

branch.

Lack of awareness of the branch network by the people engaging with our
branches

Inconsistency of what information is captured during a branch contact

Lack of quality measures within teams to measure the experience of the
branch during the contact

Inconsistency or training provided to teams dealing with branches, including
lack of documentation to capture what they are supposed to be doing

Lack of awareness of the role they play in the overall experience of the
branch with Post Office

Lack of communication with other teams, especially in resolving issues
Activity with a branch is often re-active and is a result of a problem rather
than being proactive to offer support to prevent re-occurring problems
Inconsistency in the level of ownership between teams when trying to support
branches with issues

(8)

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Improvement work stream - Plans for September @

+ Attend improvement session with Fujitsu on the 9!" September

+ Continue engaging with the remaining Post Office stakeholders to map the “as-is”
process

+ Engage with subpostmasters via the Quarterly Business Up-date events during
September

+ Agree the “quick-wins” at the next Programme Board — provisionally being held for
Tuesday 3 September

+  Start/continue deploying the quick wins

+ Support individual case review process by communicating learnings from discussions
with key stakeholders

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Communications update (2)

27* August 2013 (Mediation Announcement Day)
+ Press release issued at 10am
+ MPs—

+ All MPs that raised a case (via POL or BIS) were emailed and called. They were
provided with the mediation pack and letter for SPMRs as well as being offered a
meeting with POL

* — Internal Communications

* Memoview announcing mediation process issued at 8.00am

* Email to SLT

+ Email to all managers (Focus Online Special)

* News item on Subspaceonline

+ Brief and Q&As to NBSC/POEX

* Details in next issue of Branch Focus

Feedback

+ MPs - offices were happy with approach, no meetings requested as of yet.

+ Press — limited pick up so far broadcast coverage on BBC South and BBC Wales. All
coverage includes key messages.

+ — Internal — no feedback as of yet.

‘Onn

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Technology Change @
+ 5 Changes identified at this stage
Improvement
1. Branch Ordering of Stock Enhancement Improve navigation process and reduce
time spent by the branch when ordering
stock.
2. Certificate of Posting for multiple items Reduced transaction time and printing costs
3. Postcode look up Improved functionality
4. Passport Duplicates Speeds up the process
5. Remittance Out button Adding this to the end of day process to

streamline activities.

+ Workshop planned to review Fujitsu analysis and options for delivery.
+ Angela to sign-off on improvements.

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Appendices

High level milestones
+ Public commitments — slide 13
+ Legal -— slide 14
+ Improvement — slide 15
+ Communications — slide 16
* Technology — slide 17
Budget
* Overview — slide 18
+ Actual to August 2013 — slide 19
+ Planned to Mar 2014 — slide 20
Risk
+ Risk map and descriptions — slides 21 to 22

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Public Commitments- High level Plan @

Work Stream 2013 2014
Mediation Scheme ‘A22117 A tretind @ aahos imfostigstion dope and eppfoach
Colaberivey, 1A] 2501 Fist Working ary Workshop fo define Wayp of Working
At Working Party sign off ways of workitg, mediation pack and comms:
a VOB cn J ‘fs New wayp of working uly Implemrted
Sone reog 22s Mediators) appapnted
Second St “1, “2408 TOR fr Months] Werking Grup

‘Al 30/10 complete first case
‘A. 18/11 All applications submitt

Mcpthly Workinp Gropp Boatds Ay a a a a a aia
‘Adjudication of future TD 2408 Deline prpcess for appealing eased outside the tne

a ‘A. 10109 Appoint an inflependent figure to detenhine how an Independent pafety net might be introdjced
angea VOB 0 adiicate in disfuted cases ip the future

Susan Crehion at review confmences

0 Independent review makes reconfmendations:
25110 Post Office impletnents recommendations

Branch User Forum ‘Ay saree ereateloran for
[Angela VOB A 19/08 Start engagement witt) stakeholder
Lesley Sewell

{A 06/09 complete engagement with st4keholders,

A. 131199 Issue finalfTOR and senfé out invitatipns to first forum
‘A. 05/10 Flrst Branch Uber Forum

orp recta roguferty a I a a alia
oes rewuake axel De

Notes:
Tasks addediamended since last version in red.

Version 007 20130815

‘ontrack Achieved Mistone origina! Date not achieved) /\ Delayed (noimpact) AL ALRIsN Delayed A Issue / Delayed 3)

[1 Names of ertical resources => Dependency {potential impact) (material impact)

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Legal - High level Plan

“30/08 CI

A opi08 joitiat

‘4]28008 prepate paper for
I 19109 Hresent pape} to ARC

Work Stream 2013 2014
wa cr oo [ot Nov De en Feo wer her
Legal
Aosio7 Tackical vias of working inplemented, il cases reviewed individually
Sem Graton ‘A.}ei07 Apree Response tolcriminal cages review e}mmission
Pgh Perington
Roce Wise
Spc A 01/09 Detiheroutefor prosecuted dases post dlclosure

Ax1717 initial Sift bf casesIconppleted and disclosure pfovided to dgfence, up tol January 2040 by Ck (cartwrightking}

30107 Appont ac td aise POL on ftrategy andIproe
given the findings of th¢ Second Sight interim report dated

/\.02/08 Initjal findings from QC shat

infial review of cases complete

‘on progress to datelwith input fom QC

with Post office
jdings from QC discussed with CK

TR tor ul AF repor agrded
‘450/09 Full Q¢ report complete

‘Mortthly Reportitg to Programme Board

38 for Feviewing pasticurrent ctiminal pros¢cutions

a a a a a

Notes:
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‘ontrack —__Apeieved Milestone Arigna! Date not achieved) \ Delayed (noimpact) A AtRisW Delayed A Issue Delayed G4)

[] Names of critical resources -~=-> Dependency

{potential impact) (material impact)

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Improvements _- High level Plan @
Work Stream 2013 2014

Sieteams TermsIof Reference witt] Sponsor (Apgela)

ree approach to mappinglas-is proces, scope, and how it will He documentad
ree Termsfof Reference with steering group
Identity rebource from bach area to hupport the rapping of tHe “as-is”

IA, 03)08 identity pfocess for eqpturing quick wins

30/08 Btartho identify quick wins (from the mapping exercise)
‘A 05109 Agree whichiquick wins should be implemented with Programmp Board

‘A. p6/09 Begin implémenting quitk wins
‘4 30109 Complete "as-is" bubpostmaster journeylesperience with POL
30109 Complete “as-is" frown colledgue r journey/experience with POL

‘A. 05/10 All “Quick Wing” implementtd
‘A [20/10 Complete “to-be” slibpostmastey journeylexperience withIPOL
‘A I20/10 Complete“ to-be" Frown colleague r journefiexperience with POL
‘A I20/10 Comphbte *to-be” rhultipte partrer r journeyifxperience with POL,

}11 Funding for proposal hpproved

111 Ce pl fon projegts

494 implemen{ mechanismfo ensure allfprocesses afe regularly
reviewpd and contifue to be fit fr purpose

Culture Change

Note Milestones tq be provided by Gayle/Angela by 15/08

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Tasks added since last version in red.

®
ontrack Achieved milestone Original Date (not achieved) /\ Delayed (no impact) A At Risk’ Delayed A Issue / Delayed Ww
[[ ] Nemes of critical resources -- (potential impact) (material impact)

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Communications - High level Plan @
Work Stream 2013 2014
‘Communications and 202107 Agree Abpr with A
MP engagement
LJAJJFSA, POL dnd SS to confmunicate prfcess to MPsland SPMRs

Targa VOB

Mark Davies A. laundh Mediation process (preds release)

[sete Eo Reactive to MediaI” Aq cases are mbdiated presq and public qfairs team td be updated {for proactivg management)

‘Al01109 Post Grice start engagement with MPs — Indipidually explining mediatjon process.
‘A 11104 alice P ana ba meeting
IA.01/10 Sth taking Mes through thgir actual casbs
4.31/10 Joint MP update meeting (follow on from JA jneeting)

DatpTBC A
Endagement
with MPs for 25,
invgatigetion
casbs complete

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Unclear if JA has communicated the process to MPS

‘ontrack Achieved Milestone Arigna Date (not achieved) /\ Delayed (no impact) AL AL Risk Delayed A. Issue / Delayed Ge)
[] Nemes of critical resources --~-} Dependency (potential impact) (material impact)

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Technology improvements- High level Plan @

Work Stream 2013 2014
my ies Se Oat tor Bee Ten Feb Wer ier
Technology
Improved Afso107 pratt improves Suby luidance for orzon comrpunication line fallure
oer ‘A\15108\Review guidance with NFBP

IssueIguidance to branches

ness 10 Agreq contents for]Horizon relefise 10
roverents} TL 4). 30108 Comnjercials agredd for Horizoy release 10 4.15/04 release 10 Ive
Reporting
30/09 AgreeIcommercial ferms with Fijitsu ‘avalpble
Improves delvere Ajsovo7

‘trough ref dal A 3}110 Deliver ghanges (relepse 9 dependant)

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Draft status.
‘ontrack Aaetieved Milestone Arigna! Date not achieved) \ Delayed (noimpact) A At Risk/ Delayed A Issue Delnyed G7)
‘povrtal pect) fmt pect

[] Names of critical resources -~=-> Dependency

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Budget - Summary @

Budgeting assumptions/notes

1. Does not include cost for Post Office employees, unless backfill is required

2. Does not include any compensation costs, which is a potential outcome of mediation

3. Mediation costs are sensitive to the number of cases. Budgeting assumption is 75 cases

4. Does not include the £310k spent from April 2012-July 2013 (incl VAT)

5. VAT costs are at 20%

6. Alll actuals include VAT

7. Does not include the cost of implementing the recommendations of the improvements projects

Programme Forecast August 2013 - March 2014

Item £k incl VAT Comments
[Complete Cases (using Mediation) 962 1154 Costs associated with completing the cases. Assumption = 75 cases

Legal and Governance 334 401 _ Legal costs not specific to mediation, & governance costs (eg working party)
Improvement project 2 50 Cost for quick wins and gap analysis

lechnology 50 60___ Funding anticipated beyond the £100k Fujitsu funded costs

[Total 13881665,

Total Project costs April 2012 - March 2014 (incl VAT)

[2012/13 April-March Actual 184]
[2013/14 April - July Actual 126I
[2013/14 Aug-March Forecast 1,665]
[Total 1,976]

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Budget — Costs to Date (last FY and this FY to 1st August)

2012/13 Invoices received

=

Total 163.98 Total 14.00 Total 6
[Month invoice amount I [Month Invoice amount I [Month Invoice amount I
July 6 1200 Jan 12566/900772 37 Jan ail 24
Aug 65 1400 Nov a2ua1 72 April 842 24
sep 67 11.00 July —_13000/900772 31 July 874 42
oct 69 600
Nov 72 17.40
Dec 73 25.00
Jan 74 2688
feb 75 25.90
mar 76 2580

2013/14 Invoiced to 1st August 2013

3.6 126.29]

Total 119.59 Total 3.10 Total
[Month Invoice amount_] [Month Invoice amount I [Month Invoice _amount_]
April 72539 July 13000/900772 3.1 April a2 24
May 78 26.35 July ema 12
June 80 24.97
July 814288

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Budget — Forecast (Aug 2013 — March 2014)

[complete Canes sing Mediation) Tesimed amber of eae rs
Second St 1 Second Sght ot 25 per month (Aug-Decombe) 10d
Bacilforinteral resources & «9 15961 mont, Gmonthe
Mediators) 25 ‘Assumed parce - wil use a ations comeany
Mediator ere Fy travel, meting ooms, traning
Legal sunportcate reparation “BD 36 750" ase assume a eacs
Lega sunport- case advice Fy ‘400 per cate. asume al ces. EACDsthelrestimate for

simple cases, but we assume sme wil dropout this
‘oud average out
Lngslsuppor-medition mesting 150 {Bkperease- anu all cases: ould recital
staf to reduce cot?
Independent advisor for 2 Percate: £1.Skcae prep Elk mediation mestng
Subpostmasers Plas £50 conngenc for more complex ates aol sd
hota: compete Cases ssng Metion) 11st 07a)

[egal and Goverance
Genera Eterna Legs Advice-BD 120 'dvis on repring and agresing mdation process and

pacis of information for SPM. Engaging nd rifng

meat, tending working group meting

‘dvsng on electing canes; revising medi avon process)

/Advisingon Fujtsurelted matters E15K per month
Cae Review CK rr Includes QC, Bond Dickinson and Cartwright King 10
Kay inne Al Bates Fa 2e per mont upto)
Independant Car 2s °

[Total tngl and Governance 1 10 30)

improvement profeet
Gack forGalePeacockandAmn 2 Gack forSpeope to conduct the gap ans cons ao 2
Alaker te business oune
Contact Conte ° esr is em be Cina witicarart mous » a
fsc ° assumed ths en be done with arent resources 10x

[ot mproverant react so a0 3a]

fechntogy
Hotzon improvements Fy Funding needed beyond te £100Fujitsu funded costs °

[otal Technology oo °

Fer ies 16 a]

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Risk map @

£100m F7R20f
High
250m

Med

10m

Impact if Risk Realised

Low

Unlikely Possible Probable

Likelihood of Risk Realising @)—I

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Risks

‘sk thal resolution not achievable becauee
siakeholder interests in confit with POL
objectives

20 Risk that potential franchisees lack confidence
in system and are reluctant to engage in CTP.

18 Risk that engagement for NTP is ower

22 Risk hat ancillary systems & processes have
related or similar issues as yet unquaritieg

——aas
Note :

These will be updated following a session booked for 9'" Sept.
This will document how we will monitor and mitigate these risks.
Key risks will be tracked and presented at the weekly steering
board.

5 Risk thatthe integrity of te brand is damaged

‘and clentsleustomer rust damaged

10 Loss of confidence with existing/uture cents

14 Risk that MPs may cal for further action &g,
public inquiry

21 Risk hat POL cant alford to complete this
‘rocess (confit with cost savings agends)

24 Lack of confidence in SPMRS tat POL
commitment lo sort oul sues

28 Risk hat SPMRG with unexplained losses wal
‘fuse to provide service unt investigation
ete

30 Risk hat woaknesses in “as is" processes.
leads to increased pressureicost on network

@

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