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Post Office Limited
Minutes of the Network Transformation Programme Board
Present:
Kevin Gilliland
Hugh Flemington
Mark R Davies
Mervyn H Jones
Nick Kennett
Lesley J Sewell
Neil Ennis
Tracy Marshall
Sue Barton
Sharon Bull
Jeremy Woodrow
Alasdair Mcgregor
Richard Weaver
Apologies:
Chris M Day
Susan Crichton
Piers Virik
Martin Moran
To Note:
Room 107 — 21** November 2012
Network and Sales Director
Legal - For Susan Crichton
Communications Director
Network & Commercial Director NFSP
Financial Services Director
Chief Information Officer
Programme Manager
Deputy Programme Manager
Strategy Director
Finance — For Chris Day
Commercial — for Martin Moran
The Berkeley Partnership
Internal Communications
Chief Financial Officer
HR & Corporate Services Director
Strategic PMO Manager
Commercial Director
Board papers are not for wider circulation.
Papers relating to Policies may be circulated once the policy has been
defined and agreed, in accordance with the Policy.
1. Programme Progress to date
(a)
(b)
c)
Neil explained to the Board that the delivery of programme targets for this
year remained at significant risk however the NTP team and supporting
teams remained fully focused on the task in hand. He explained that to
date, 370 conversion to new models had already been delivered with 830
still required.
Neil explained our assumptions around delivery of the remaining 830
activities - 260 delivered through multiple partners, 100 through off site
conversions and 470 through independent agents.
In terms of multiple partners, Neil explained that we were fairly confident
on 130 of the required activities, less confident on 100 and unsure on the
remaining 30. Conversations at strategic and operational level are on-
going with many of our multiple partners with a view to obtaining
permissions to proceed as quickly as possible. Martin McColls and One
Stop continue to be our focus, with potential to deliver 80-100 and 55-60
conversions respectively.
Kevin then explained that the Coop have expressed an interest in
converting all of their branches to the local or main model however the
timing of these conversions will need to fit into Coops branch
refurbishment programme. These conversions have not yet been hard
wired into our plan however this could deliver up to an extra 60 this year.
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g)
Neil explained that in terms of offsite conversions, 500 opportunities had
now been advertised on our website. Interest in the new models has been
very high with only one branch attracting no applicants at all. Around 180
opportunities had attracted only one applicant at this stage and for these
branches, we are able to progress quickly, conducting the recruitment
process at the same time as public consultation. To date, 80 branches are
already moving to consultation.
To achieve the number of independent conversions required, we need
between 600 — 700 financial assessments submitted with 429 received to
date. It was noted that a lot of work had already been undertaken with the
Finance team to create greater flexibility and that this approach was
supported by Kevin Gilliland and Chris Day.
Kevin mentioned that a stretch target of 60 financial assessments
received per week was in place and that we have been consistently hitting
the minimum required number of 40 assessments per week with 55
received last week. He explained that these were encouraging signs
however there was much work still to be done.
Moving on to ‘beat rate’ tracker, Neil explained how key metrics were
continuing to be reviewed every morning. He focused attention on two key
metrics — financial assessments returned and contract signed and it was
noted that work was on-going to improve the rate of returns in both these
critical areas.
2. Scoret
card
¢)
Neil explained that the programme was underspent year to date and was
forecast to be underspent for the full year. The board noted that this was
due to lower than anticipated staff costs and IT Project costs and a focus
on on-site conversions.
The positive branch performance statistics were noted by the Board
particularly the over 100% cumulative increase in opening hours versus a
target of 40%. It was also noted that customer satisfaction continues to be
very high at over 90% for both models.
The board noted that Operator satisfaction was also high at 75%. Nick
enquired as to why the remaining 25% were dissatisfied and Neil
explained that this largely due to the removal of fixed remuneration, the
loss of some products for local branches and in some occasions, the
requirement to offer PO products during the same hours as the retail
business.
In addition to the positive customer and operator research, Mark
highlighted the fact that externally, the programme appeared to be gaining
momentum with many positive messages coming through and greater
advocacy for the new models,
3. Fujitsu Field Engineering Service Options
(a)
b)
c)
Neil took the Board through the various proposals and asked for feedback
Neil clarified that the £350k - £400k was the total additional costs for
Fujitsu support on an annual basis.
The Board took the decision to proceed with option 4 — to extend the
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Action 051
Neil Ennis
Action 052
Neil Ennis
Action 053
Neil Ennis
existing support service up to 20.00 hours on Monday to Friday whilst also
implementing a Saturday service from 08.00 — 17.00/18.00.
Implementation of the above approach was dependent upon confirmation
being received that POL could cease or amend these new requirements
with Fujitsu with a months’ notice.
Prior to implementing the service extension confirm that POL can
cease or amend its requirements to Fujitsu with one months’ notice.
To confirm that the £350k - £400k is a fixed annual cost and is not
subject to change when the number of main and local branches
grows materially.
Action Update: Confirmation received that this is a fixed cost
Obtain metrics on how many Horizon issues currently occur, on
what days (especially out of hours) and how many issues are dealt
with without Fujitsu support intervention.
4, POEX
Support Centre Opening Hours
Action 054
Neil Ennis
(a)
b)
Neil took the Board through the various proposals and asked for feedback
The proposal to run a 4 week trial at an additional cost of £15k was
rejected by the Board on the basis that this would not generate robust data
on demand for services as customers would not know that the extended
service was available. The Board agreed that 6 months was a more
acceptable trial period.
Additional data is required before a decision can be made. Jeremy
suggested an analysis of IVR and this was supported by the Board. It was
agreed that following analysis of demand, an updated proposal would be
taken to the Programme Board.
Sue Barton challenged whether any additional costs incurred here should
be picked up from the Programme budget or from BAU. Lesley clarified
the agreed position; that first year costs be picked up by the Programme,
with on-going costs picked up as BAU.
Explore possibility of analysing IVR in order to determine demand
for POEX support services out of hours.
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5. Forward communications plan
Action 055
Kevin/Mark
Action 056
Richard/Mervy
n
(a)
Mark explained to the Board that Network Transformation was the top
priority for the Communications team. He explained that with a new team
now in place, there was a focus on increased advertising in local press but
that discussions were also on going to broaden the marketing campaign.
Richard took the Board through the various activities planned for the
coming months including a series of Road show events in January. The
Board noted that there would be a draw on people's diaries during this
time as Exco and senior leaders within the business would be required to
provide support.
The Board also noted the various communication channels being used to
spread positive messages about the Programme including social
networking sites such as Twitter; and Subspace online. Richard explained
how Subspace was often targeted by a group of ‘hostile’ Sub postmasters,
expressing negative comments about the Programme. Alternative
channels for Subpostmasters to air their views were therefore being
explored such as web chats, with a view to establishing such alternatives
before closing down subspace online.
To discuss the possibilities of broadening the marketing approach for
Network Transformation
To discuss alternative options for Subspace Online.
To Note:
rvyn Jones to be sent to:
NEXT PROGRAMME BOARD - Thursday 13" December, 11.00-12.00
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