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Sparrow
Weekly Steering Group
3" September 2013
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Agenda &
1. Specific Agenda items
1. Review vision of PO future
2. Programme update:
2. Work streams highlights
3. Budget (no updates since last meeting)
4. Risks (not updates since last meeting)
3. Next Meeting will be on Wednesday 11" September at 1pm.
Decisions for this meeting
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Public Commitments
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- work stream updates
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Initial Complaint
Review and e
Mediation Scheme
(Complete Cases)
Adjudication of :
future cases
Branch User .
forum
Panel of advisors nearly complete. Shoosmiths still to be confirmed, Green
dependant on whether they will meet demands on costs/approach.
Planning for the 5" Sept briefing/training day for independent advisors
and mediators. The goal of this session is to give the Advisor Panel
good back ground on the scheme, familiarisation of PO
systems/processes and a case study to help them understand what is
expected of them.
Agreed with SS to cap monthly costs.
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 Party and JFSA disagree — this will be finalised by the next
Steering group meeting.
5 potential candidates. A JD and briefing to be sent to Paul to review.
Once on board the Independent Chair will review the future process
post March 14-this work stream will then be re-planned.
Initial meeting held to define how we manage contract breaches
including precautionary suspension, termination and appeal process.
The scope has broadened wider than hearing appeals outside of the
line. This milestone will now be completed by 16th September.
TOR Approved at previous Steering Board. Green
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Other work stream updates
See slide 5-6. Completion of initial case reviews on hold until QC
Legal (criminal oe
cases) e The issues that we want Brian Altman QC to advice on were agreed,
final sign off of review process; options re appointment of independent
expert witness (paper to follow); advice on prosecutions going forward.
» Current plan will be reviewed following QC steer.
Improvements & ° ellis board scheduled for 4"" Sept to review quick wins to take Green
Culture change
Communications e No updates since last week. Green
Technology e Meeting with Fujitsu to review/confirm 5 changes scheduled for 9" Green
September.
NFSP sign-off on Horizon communications will now be on 5"
September.
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Legal Update — Case Review &
Statistics Fully Disclosure Comments
as at Reviewed I recommend
14/8/2013 ed
To date 155 The cases of J Patel, Brown, Wylie and
Knight have been terminated.
Samra has yet to be terminated.
Remaining 70 16 It is 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 Northern Ireland.
It is 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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Mediation - Independent Advisors
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Name (& Company)
Bill CLEGHORN (Aver)
Emma PORTER (Aver)
Denise BARNETT (Protiviti)
Grishma PATEL (Protiviti)
Bally ARK
Steve REDHEAD
Richard FORTH
Paul KEYTON
Profession
Chartered Accountant
Chartered Accountant
Chartered Accountant
Chartered Accountant
Chartered Accountant
Chartered Accountant
Chartered Accountant
Chartered Accountant
Robert HOLLAND (James Cowper)Chartered Accountant
Jay YORK (James Cowper)
Steve DARLINGTON (Howe)
Stuart COWEN
Philip De NAHLIK
Chartered Accountant
Chartered Accountant
Chartered Accountant
Chartered Accountant
Location
Edinburgh
Edinburgh
Berkshire
London
Birmingham
Manchester
Leeds
Surrey
South & London
South & London
London
South West
London
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Mediation - Independent Advisors G2)
Name (& Company) Profession Location
Martin HOWE (Howe) Solicitor London
Kieran O'ROURKE (Howe) Solicitor London
John WALKER (Howe) Solicitor London
Dipti HIRANI (Howe) Solicitor London
Priti MARU-SINGH (Howe) Solicitor North West
TBC dependant on fees/approach to cases
Shoosmiths Lawyers All
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Appendices &
¢ High level milestones
* Public commitments — slide 10
¢ Legal — slide 11
¢ Improvement — slide 12
* Communications — slide 13
* Technology — slide 14
« Budget
* Overview — slide 15
¢ Actual to August 2013 — slide 16
¢ Planned to Mar 2014 — slide 17
« Risk
e Risk map and descriptions — slides 19 to 20
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Public Commitments- High level Plan
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Work Stream 2013 2014
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Mediation Scheme A\22/07 JA meeting to agree investigation stope and approach
(Collaboratively AX 25/07 Firs} Working Party Workshop to define Ways of Workin
complete cases) x
Z\ 15/DB Working Party sign off ways of workihg, mediation pack and
Angela VDB f . F
Angela VDB nomination —_ col bed io 20/09 New ways of workingIfully implemented
BD and Paralegal 22/08 Mediator(s) appginted
Second Sight II 24/08 TOR for Monthly Working Grpup
Hae ey Aj 30/10 complete first cas¢
A 18/11 All applicatigns submitte
Mohthly Working Group Boatds A- A A A A A A A
Adjudication of future II 22/08/Define process for appealing cases outside the ling
cases
Angela VDB
‘A 10/09
point an independent fi
to adjudicate in dis
uted cases jj
gure to determine how anI
n the future
independent safety net might be intro‘
jluced
Susan Crichton A 15/08 Independent review cornmences
y A 19/10 Independent review pes recommendations
A I 25/10 Post Office Implements recommendations
Branch User Forum A 12108 Create Draft TOR
Angela VDB Z\ 19/08 Start engagement with stakeholdets
Lesley Sewell 5
estey Sewe I, 06/09 corf{plete engagement with sthkeholders,
; A 13//9 Issue final/TOR and send out invitations to first
ls ‘A (95//10 First Branch User Forum
Branth User Forum meets regularly & A A A A A
(frequéncy agreed in TJOR))
Notes: - a Version 007 20130815
I Tasks added/amended since last version in red. I
Aon Track Z\Achieved Milestone A Original Date (not achieved) \\ Delayed (no impact) At Risk/ Delayed A Issue / Delayed \10)
{-__] Names of critical resources
> Dependency
(potential impact)
(material impact)
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Legal - High level Plan
Work Stream 2013 2014
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Legal a
/\05/07 Tactical ways) gf working inhplemented, jall cases reyiewed individually
Susan Crichton 1\26/07 Agree Response to Criminal cabes review commission
Hugh Flemington fe ey
Rodric Williams i:
BD Support A\ 01108 Dente route for prosecuted ¢ases post disclosure
17/07 Initial Siftjof cases completed and {disclosure provided to defence, up tb January 2010 by CK (cartwrightkinig)
I—/\ 80/08 CK initial review of cases complete
L\I28/08 prepare paper for ARC on progress to dat¢ with input from QC
@ 19/09 Hresent papey to ARC
£\30/07 Appi int QC to adyise POL on Strategy and process for reviewing past/current ¢riminal
prosecutions given the findings of the Second Sight interim Ireport dated
2\02/08 Initjal findings from QC shared with Post Office
A\ 09/08 jnitial findings from QC discussed with CK
[1A 09/09 te. for full QC report agfeed
__A3p/09 Full QC}report complete
A A A A A A A A A
Monthly Reporting to Programme Board
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Achieved Milestone
in Track riginal Date (not achieved) /Delayed (no impact)
Z
> Dependency (potential impact) impact)
{-__] Names of critical resources
\t Risk/ Delayed Agsue / Delayed (material
Improvements - High level Plan
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Work Stream 2013 2014
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
All Streams Be .
A\I 24/07 Agrep Terms of Reference with Sponsor (Angela)
A\ 06/08 Agree approach to mapping as-is proceqs, scope, ani how it will be documented
Z\08/08 Agree TermaIof Referencé with steering group
A 09/08 Identify r¢source fromIeach area toIsupport the mapping of the "as-is"
A\ 98108 Identify process for capturing quick wins
N 30/08 StartIto identify quick wins (frgm the mappjng exercise!
II 05/09 IIAgree which] quick wins should be implemented with Programme Board
A 06/ Begin implementing quick wins
30/09 Complete "as-is"Isubpostmaster journey/ekperience with POL
30/09 Complete "as-is"ICrown colleague r journey/experience with POL
30/09 Complete "as-is”Imultiple partner r journey/experience with POL
A 95/10 All “Quick Wing” Implemented
A I20/10 Complete “to-be" Lee journey/experience with POL
A I20/10 Complete " to-be "ICrown colleague r journey/experience with POL
A I20/10 Complete " to-be” multiple partner r journeyfexperience with POL
A 15/11 Funding for proposal approved
A111 Commehce implemehtation projects
15/4 implement mechanism fo ensure all processes ale regularly A
reviewed and continue to be fit for purpose
Culture Change , . is . .
huilding questionsiinto reviews. steps
I Notes:
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I Version 007 20130815
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{-__] Names of critical resources
Z\Achieved Milestone A Original Date (not achieved) _/\ Delayed (no impact)
> Dependency
AAt
(potential impact)
Risk/ Delayed Alssue /D
lelayed
(material impact)
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Communications - High level Plan G2)
Work Stream 2013 2014
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Communications and 222107 Agree Apprgagh with JA
MP engagement pee!
ZL\ JA) JESA, POL and SS to communicate process to MP$ and SPMRs
Angela VDB Ph
werk Davies A Prpactive laungh Mediation process (pre$s release)
Second Sight Reactive toIMedia”” IAs cases are mediated press and public affairs team to be updated (for proactive
management)
yi 01/09 Post Office start e)gagement with MPs — individually expjaining mediation process)
11/09 Alice P andA meeting
i ; A °1/10 Start taking Ms through thpir actual cages
31/10 JointIMP update meeting (follow on from JA meeting)
Date TBC A
Engagement
with MPs for 25
investigation
cases complete
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I Unclear if JA has communicated the process to MPs
Aon Track Z\Achieved Milestone A Original Date (not achieved) \\ Delayed (no impact) At Risk/ Delayed A Issue / Delayed Uy
[-_] Names of critical resources > Dependency (potential impact) (material impact)
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Technology improvements- High level Plan C2)
Work Stream 2013 2014
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Technology :
sidered Z\30/07 Draft improved Suljpostmaster guidance for Horizon communication line failure
A\ 15/08IReview guidance with NFBP
I. A 30/08 Issue guidanceIto branches
impovcrents A. 09/09 Agree contentsIfor Horizon felease 10
30/09 Commercials agreed for Horizoh release 10 A15/03 release 10 five
Reporting N : 4
improvements IZ\ 02/08 ae CR with Fujitsu A.15/03 new re}
a) . ‘ oe port:
Hae 30/09 Agree}Icommercial ferms with Fujitsu availhble
Improvements delivered A 30/07 Defines changes iy
through ref data I __A 3}1/10 Deliver ghanges (release 9 dependant)
I Notes: Version 007 20130815 I
I Draft status. ian
Aon Track Z\Achieved Milestone A Original Date (not achieved) \\ Delayed (no impact) At Risk/ Delayed A Issue / Delayed YY)
{-__] Names of critical resources
> Dependency (potential impact) (material impact)
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Budget - Summary G2)
i 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. All 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 42 50 Cost for quick wins and gap analysis
Technology 50 60 Funding anticipated beyond the £100k Fujitsu funded costs
Total 1388 1665
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 1%t August) &
2012/13 Invoices received
Total 163.98 Total 14.00 ‘Total 183.98}
[Month Invoice amount _ I [Month Invoice amount I [Month Invoice cmon I
July 65 12.00 Jan 12566/900772 3.7 Jan 811 2.4
Aug 66 14.00 Nov 12141 7.2 April 842 2.4
sep 67 11.00 July 13000/900772 3.1 July 874 1.2
oct 69 6.00
Nov 72 17.40
Dec 73 25.00
Jan 74 26.88
feb 75 25.90
mar 76 25.80
2013/14 Invoiced to 1st August 2013
Total 119.59 Total 3.10 Total 126.29)
[Month Invoice amount I [Month Invoice amount I [Month Invoice _ amount I
April 77 25.39 July 13000/900772 3.1 April 842 2.4
May 78 26.35 July 874 1.2
June 80 24.97
July 81 42.88
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Budget — Forecast (Aug 2013 — March 2014)
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Complete Cases (using Mediation) Assumed number of cases: 75
Second Sight 125 Second Sight at 25k per month (Aug-December) 100 ~—-150
Back fill for internal resources & 90 15k per month, 6 months
external assistance
Mediator(s) 225 Assumed 3k per case - will use a national company
Mediator Expenses 50 travel, meeting rooms, training etc
Legal support case preparation - BD 56 £750 per case assume all cases
Legal support - case advice 28 £400 per case. assume all cases. £400is their estimate for
simple cases, but if we assume some will drop out this
should average out.
Legal support - mediation meeting 150 £2k per case - assume all cases - could recruit internal
staff to reduce costs?
Independent advisor for 238 Per case: £1.5k case prep + £1k mediation meeting.
Subpostmasters Plus £50k contingency for more complex cases 350 sso
Total: Complete Cases (using Mediation) 962 450 700)
Legal and Governance
General External Legal Advice-BD 120 Advice on: preparing and agreeing mediation process and
packs of information for SPMRs. Engaging and briefing
mediators, attending working group meetings (ie.
advising on rejecting cases; revising mediation process).
Advising on Fujitsu related matters. £15K per month
Case Review - CK 175 Includes QC, Bond Dickinson and Cartwright King 100 300}
Kay Linnell/ Alan Bates 14 £2k per month (up to)
Independant Chair 25 i) 10)
Total Legal and Governance 334 100 310)
Improvement project
Back Fill for Gayle Peacock and Ann 42 Back fill for S people to conduct the gap analysis across 200 200)
Allaker the business groups
Contact Centre i) assumed this can be done with current resources 40 40
FSC i} assumed this can be done with current resources 100 100]
Total: Improvement project 42 340 340)
‘Technology
Horizon improvements 50 Funding needed beyond the £100k Fujitsu funded costs 0 t
Total: Technology 50. i} iy
Total 1388 890] 1350
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Risk map Q
£50m
Impact if Risk Realised
£10m
Low
Unlikely Possible Probable
Likelihood of Risk Realising
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Risks
ee Risk description
Co Risk description —
Risk description
2. Risk that subsequent cases could question the I Kia) The mediation process is independent and may 1 » Risk that there are more cases in the pipeline
validity and reliability of computer _ make decisions wo which we are uncomfortable ce ne : i
system/processes i “ .
x i 5 Risk that the integrity of the brand is damaged
6 Making decisions outside of policy 4 Risk that resolution not achievable pocause and clients/customer trust damaged
stakeholder interests in conflict with POL 4
objectives 8 Risk that we are not co-ordinated in our oli
te Risk that relationship with BIS is party: 2 » to subpostmasters ete te
affecting future funding 9 Risk the relationship with Fujitsu is damaged
es ae i Ce 5 10 Loss of confidence with existing/future cane
20 Risk that potential franchisees lack confidence in : a
system and are reluctant to engage in CTR 141 Risk of compensation claims or re-opening of old . axyerutu e
Soe : cases 13. Adverse impact to the relationship with NFSP-
26 _ Risk of media ‘bandwagon’ on ; : i : :
8 na We Risk of dissatisfied stakeholders even at the end
of process 14 Risk that MPs may call for further action e.g.
public inquiry
15 Key person reliance “ - 6
ie isk that court can overturn previous cases
46 Risk of increased fraud/theft- : “ 7 —
Sat ee t : 21 Risk that POL can't afford fo complete this
f a process (conflict with cost savings agenda)
18 Risk that engagement for NTP is lower i
23 Risk that customers question frensaction ioe in
i Piaen
19 Risk that general engagement of employees is :
damaged and results in people leaving : 24 ck of santilenceI in SPMRS that POL
me ome ae ste commitment to sort out issues
22 Risk that ancillary systems & processes have r
related or similar issues as yet unquantified 25 Risk that problems are exaggerated before
- _ fesearching them :
27. Risk of increased bad debt/write-off 2 5 5 : 5 :
: : eeu = ae 28 Risk that SPMRs with unexplained losses will
: refuse to provide service until investigation
N complete
ote : . . . th "29 Risk of pressure on network support teams
These will be updated following a session booked for 9"" Sept. ee : ne
This will document how we will monitor and mitigate these risks. 30 _Risk that weaknesses in ‘as is” processes leads
Key risks will be tracked and presented at the weekly steering
board.
to increased pressure/cost on network
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