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IT&C Transformation Programme
Programme Board Update
16/04/12
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Meeting Details °
+ Date: 16th Apri :00 — 13:00, Location: Room 201
+ Dial in Details }
* Chaircode: I
* Participant co
Attendees
* Lesley Sewell — Programme Sponsor
* Chris Day — Chief Financial Officer
+ Fay Healey — Head of HR
+ Nicholas Kennett — Financial Services Director
* Brian Deveney — Head of Managed Services and Sourcing
+ Peter Goodman — Head of Finance Operations (deputy for for Chris Day)
* Neil Lecky-Thompson — Head of Programmes and Planning
+ lain Patterson — IT&C Transformation Director
* Dave Tansley — Lead Deloitte Partner
+ Bhavesh Morar — Deputy IT&C Transformation Programme Director
Apologies
*NA
Tentative
+ Hugh Flemington — Head of Legal
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Agenda °
Ref. Item Owner I Time (Mins)
1 Programme Board Terms of Reference (Agree Purpose) IP 10
2 Summary of actions outstanding from previous meetings IP 0
3 Programme Summary Status IP 15
4 Programme Milestone Overview IP 10
Programme Financials & Resourcing
+ Programme Financials - Initial Overview
+ Programme Financials - Final Overview
+ Programme Resourcing
6 Decisions for review and validation IP 0
7 AOB IP 5
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Programme Board — Terms of Reference
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Meeting Name: Programme Board Frequency: Monthly
Agenda: Duration: 1 hour
+ Ensure that the IT&C Transformation programme delivers in line Chair: Lesley Sewell
with the overall business strategy
Attendance:
Provide a progress summary of the IT&C Transformation
programme, with a specific focus on benefits realisation as agreed
in the business case
To advise on any changes to the strategic direction and subsequent
impacts on the programme
Ensure the interests and requirements of the business are
represented
Escalate issues, request decisions or seek support where required
from the Executive Board members
Approval for additional funding and major changes to baseline
programme timescales before submission to the Post Office
Governance Boards.
Review and approve/reject escalated change requests.
Scope:
Accountability for ensuring the programme is aligned to the overall
business strategy and delivers the intended benefits.
+ Nick Kennett (Financial Services Director)
* Chris Day (Chief Financial Officer)
+ Hugh Flemington (Head of Legal)
+ Fay Healy (Head of HR)
+ Neil Lecky-Thompson (Head of Programmes & Planning &
Business Engagement Lead)
+ Brian Deveney (Head of Managed Services)
+ Dave Tansley (Lead Deloitte Partner)
+ lain Patterson (IT&C Transformation Programme Director)
+ Bhavesh Morar (Deputy IT&C Transformation Programme
Director)
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Actions from previous meeting (05/03/2012) °
Date ID Action Raised Action Delivery Updates/Progress Open/
Raised By Owner Date Closed
05/03/12 I APO2 To ensure that the LK/NLT 21/02 — full plan to be Closed
communications plan is circulated at next board
walked through at the next 19/03 — Communication to
Programme Board staff complete, action can
be closed
05/03/12 I APO6 To provide a briefing of DT Market engagement day Closed
DVLA and other similar successfully held 29/03.
procurements approach to Action can be closed
market engagement days.
05/03/12 I APO3 To circulate proposed BD Market engagement day Closed
agenda for 20 February successfully held 29/03.
2012 market engagement Action can be closed
day planning meeting with
RMG. This should include
RMG requirements for the
meeting and ensure that
sharing of the RMG plan
occurs. Due: 10 February
2012
05/03/12 I AP11 LS to drive the importance LS ET meeting took place Closed
of obtaining Board 06/03. Action can be
approval at the ET meeting closed.
scheduled for 6th March
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IT&C Transformation Programme Weekly Update (13/04/2012) °
Decisions / Escalations Required Due Date
1. None
Last This. Fore-
Week I Week I cast
Overall On plan with risk of delay under control. ITT for IT products issued. Resource challenges are currently being
managed, although there is a risk that if this continues, delivery could be impacted.
IT&C Transformation Programme Comments
Budget Budget profile being revised to include increase in scope. Budget management to be done at project level by project
managers and by PMO at programme level going forward.
Last This Fore-
Week I Week I cast
IT Frameworks Procurement On plan. IT Consultancy ITT Responses received. IT Products ITT issued. IT Solutions Delivery ITT advanced draft
released to review group on 12/04. IT Consultancy scorecard updated and ready for evaluation w/c 16/04.
Projects Comments
IT Supplier Procurement On plan. SI/SD OJEU and PQQ ready for issue on 13/04. Three new team members on-boarded. Feedback from Market
Engagement Day (MED) collated and shared. MED material made available to suppliers. Towers ISOS development is 4
weeks behind plan — recruitment underway to resource the activity.
IT&C Operating Model On plan. Continued work on the draft of key accountabilities of the SI and hand offs with different functions within IT&C.
Various key meetings held to discuss current environment and improvement opportunities.
Incumbent Supplier Behind plan. lain organising a session with Chris Taylor, Chris Barretto, new contractors and programme leadership for
Management wic 16/04 in order to bring all up to speed. Various options which need exploring and discussing will help focus the
incumbent supplier management stream appropriately. Contracts review in progress.
Transition Planning On plan. Transition planning team fully mobilised. Transition planning to understand impact of delivering FOoG and
NIA managing our current in-flight projects underway.
Current Lag Focus for Next Week Key Risks and Issues
+ SI/SD & Towers + Finalise communications toolkit to be issued by 18/04. + Accommodation for the IT&C Transformation programme team poses a risk to
ITT development + Finalise process flows and tracking tools with Finance. the effective functioning of the team. As the team grows, the office space
+ Draft noting paper for Sourcing Council regarding downselect decisions for IT is becoming a major issue.
Products and IT Solutions Delivery. + Potentially high volume of bidders for ITT will pose a significant drain on BAU
+ Towers OJEU and PQQ to be presented to Delivery Board for approval on and programme resource during the evaluation process. This is being managed
19/04 by sharing the BAU requirements up-front with the BAU functions.
+ Towers sourcing plan to be presented to Sourcing Council on 17/04. * The Transition Planning project is developing our options for Horizon. We need
+ Baseline “as-is landscape plan” for Transition Planning. to understand our options and implications before we release the Towers OJEU
+ Hold sessions with IT&C Lead team to share IT&C Transformation plan. at the end of April to ensure we manage the risk of going out to market without
fully understanding the scope of services that we wish to procure.
+ Concern raised about the level of technical and process detail in order to
respond to SI/SD OJEU and PQQ.
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Programme Milestone 4 week outlook (as at 13/04/2012)
Upcoming Milestones Project — Planned Date Forecast Date RAG Comments
ITT for IT Products published IT Frameworks 22/03/2012 12/04/2012
Procurement Completed.
ITT for IT Solutions Delivery published IT Frameworks 23/03/2012 18/04/2012 Planned date moved due to additional
Procurement business engagement review
incorporated within re-baselined plan
Engagement strategy agreed for incumbent Incumbent Supplier 30/03/2012 30/04/2012 Resource recruited, plan in place to
IT suppliers recover timeframes.
IT Consultancy ITT Responses Received IT Frameworks 30/03/2012 10/04/2012
Pp Completed.
rocurement
OJEU and PQQ issued for SI/SD IT Supplier 13/04/2012 13/04/2012 OJEU released on 13/04. PQQ to
Procurement follow on 16/04
Post Office Sourcing Council sign off for IT Supplier 17/04/2012 17/04/2012 On track
Towers Procurement n trac
IT Solutions Delivery ITT Responses IT Frameworks 23/04/2012 24/05/2012 Planned date moved due to delay to
Received Procurement the issue of ITT
IT Products ITT Responses Received IT Frameworks 25/04/2012 21/05/2012 Planned date moved due to delay to
Procurement the issue of ITT
Organisation Design structures tested and IT&C Operating Model 29/04/2012 11/05/2012 .
Date moved due to replanning.
validated.
Organisation Design structures signed off at IT&C Operating Model 30/04/2012 15/06/2012 Dat d due t anni
Programme Board. ate moved due to replanning.
Towers OJEU and PQQ issued. IT Supplier 30/04/2012 30/04/2012
On track
Procurement
IT Consultancy supplier downselect from 10 IT Frameworks 04/05/2012 16/05/2012 Plan re-baselined to accommodate
to 6-8. Procurement lengthier approval process and
inclusion of additional security & DPA
requirements.
Brand Identity developed IT&C Operating Model 13/05/2012 13/05/2012 On track
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Top Programme Risks (as at 13/04/2012)
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Programme
Impact
Date Raised I RAG* Risk Description
Mitigation
Accommodation for the IT&C
Transformation programme team poses
Ali Haskell has been contacted regarding
the office space for the IT&C
Programme wide 30/03/2012 a risk to the effective functioning of the Transformation programme team and the
team. As the team grows, lack of office I desk requirements have been provided to
space is becoming a major issue her.
There is currently lack of clarity on the lain Patterson to work with Nick
Programme wide 30/03/2012 ownership of financial reporting for the Sambridge in order to determine and
programme confirm financial accountability
: : The Transition Planning project has been
Our new supply chain should effectively put in place and Stephane Laffly is
Programme wide I 30/03/2012 allow for transitioning of services to our I I. ding it, This will be focussed on
9 clients into our operating model without ng It. ae
- creating a transition strategy for the
impacting service. ~
business.
Workshops undertaken to establish
There is a risk that incumbent suppliers I detailed analysis of supplier profile
Programme wide 23/03/2012 will be reluctant to exit or transition against towers, and to establish an
relevant data.
understanding of the current landscape of
contractual obligations.
*The RAG status is on a scale of 0-25 (where 0 = low and 25 = critical impact).
Impact and likelihood of the risk are factored in when calculating the RAG status
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Top Programme Issues (as at 13/04/2012)
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Programme
Impact
Date Raised I RAG*
Issue Description
Mitigation
BAU resources are not fully in place to
support the procurements and the
BAU resource requirements have been
Programme wide 03/04/2012 migration plan for BAU resources to the I identified and the migration plan needs to
IT&C Transformation programme has be drawn up
not been completed
The Fujitsu landscape needs to be
manages Te lack of understanding Relevant discussions to take place at
. on gagem« Programme Board level to onboard an ME
Programme wide 12/04/2012 the supplier side are causing issues to . .
and start engaging more with the supplier.
the successful management of the Discussion to start w/e 18/04
procurement process for the IT&C
Transformation programme
F The need for this issue to be dealt with
Legal have yet to provide a full has been identified and resolution is in
Programme wide 12/04/2012 assessment of all supplier contract
conditions
progress — contracts review is in progress
and due to complete by end April
*The RAG status is on a scale of 0-5 (where 0 = low and 5 = critical impact)
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FY12 Programme Financials Initial Overview (as at 31/03/2012)
Below is an initial comparison of the signed off budget against the actual spend as of 31/03/2012.
Initial comparison is presented to demonstrate the challenges faced whilst calculating actual spend,
the final figures are presented on the next slide.
Cost Category Total Approved Budget I Total Approved Total Approved Actual Spend — Variance — FY12
(until Oct 2015) Budget — FY13 Budget — FY12 RYI2 (Actual - Approved)
Consultancy £3,841,000 £2,200,000 £870,000 £1,271,230
Consultancy Sunk £473,696 £0 £473,696 £0
Skills Group £1,891,565 £878,000 £346,550 £313,050
Skills Group Sunk £202,968 £0 £202,968 £0
Contractor £1,826,000 £1,127,000 £47,000 £0
Legal £2,487,300 £1,162,000 £278,500 £105,550
Legal Sunk £39,860 £0 £39,860 £0
Redundancy £802,000 £0 £0 £0
Alignment £1,681,000 £680,000 £0 £0
Training £699,000 £233,000 £0 £0
Other (inc MED costs) £347,000 £69,000 £0 £10,160
Total £14,291,389 £6,349,000 £2,258,574 £1,699,990 -£558,584
Please note:
+ Above figures extracted from FY12 (31/03/2012) Finance Report (SAP).
+ Further investigation was carried out which brought to light that sunk costs were not accounted for in the above report.
+ Working with Nick Sambridge to establish accurate project and programme financial reporting.
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FY12 Programme Financials Final Overview (as at 31/03/2012)
Below is the final comparison of the signed off budget against the actual spend as of 31/03/2012.
Cost Category Total Approved Budget I Total Approved Total Approved I Actual Spend — Variance — FY12
(until Oct 2015) Budget — FY13 Budget — FY12 FY12 (Actual - Approved)
Consultancy £3,841,000 £2,200,000 £870,000 £1,106,800
Consultancy Sunk £473,696 £0 £473,696 £464,430
Skills Group* £1,891,565 £878,000 £346,550 £313,050
Skills Group Sunk £202,968 £0 £202,968 £202,968
Contractor £1,826,000 £1,127,000 £47,000 £0
Legal £2,487,300 £1,162,000 £278,500 £138,990
Legal Sunk £39,860 £0 £39,860 £39,860
Redundancy £802,000 £0 £0 £0
Alignment £1,681,000 £680,000 £0 £0
Training £699,000 £233,000 £0 £0
Other (inc MED costs) £347,000 £69,000 £0 £10,160
Total £14,291,389 £6,349,000 £2,258,574 £2,276,258 £17,684
Please note:
* The figures presented above are inclusive of committed spend / accrual as obtained from the finance team and solicitors (Beechcroft).
+ Project and programme level budget tracking will be done by the project managers and PMO on the programme going forward. This would
then enable us to provide a view of the actual spend, committed spend / accrual and forecast breakdowns in future reports.
* Total approved Budget is divided into:
G-056 IT Frameworks Procurement (Sep 2011 — Jul 2012): £914,389
G-219 IT Transformation Programme (Jan 2012 — Oct 2015): £13,377,000
+ 4Skills Group costs above also include contractor costs for IT Frameworks Procurement as there is no distinction between skills group
and contractor costs in the signed off budget for IT Frameworks Procurement.
+ AConsultancy spend mainly consists of spend on Deloitte Workpackage value £1.7m Feb 12 — Jun 12, inclusive of VAT.
+ “44Costs include those incurred for Market Engagement Day which was not included in the approved budget for FY12.
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Programme Resourcing
Below provides a view of the resource requirements by month until Aug 2013
Project Jan-12 I Feb-12 I Mar-12 I Apr-12 IMay-12] Jun-12 I Jul-12 I Aug-12I Sep-12 I Oct-12 I Nov-12 I Dec-12 I Jan-13 I Feb-13 I Mar-13 I Apr-13 IMay-13] Jun-13 I Jul-13 I Aug-13
Programme Management 3 7 R 2i 20 19 19 19 ig 19 19 19 19 19 19 19 19 19 19 19
IT Frameworks Procurement 5 5 8 7 9 7 2 0 0 0 0 0 0 0 0 0 0 0 0 0
IT Supplier Procurement 2 7 10 18 14 14 5 B B 16 16 24 a1 21 20 20 i 19 i 7
IT&C Operating Model 3 3 5 8 R 9 9 4 2 2 6 2 2 2 2 05 0 0 0 0
Transition Planning 0 0 0 3 3 3 3 0 0 0 0 0 0 0 0 0 0 0 0
Incumbent IT Supplier ManagementI 0. 0 0 2 2 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
Total Resources Required B 22 35 59 60 56 52 40 38 41 45 37 46 46 45 45 a 42 34 30
Total Resources Assigned 1 20 30 34
Resource Re-Forecast (Estimate) 40 50 46 a2 30 28 31 35 27 36 36 35 33.5 32 32 24 20
70 IT&C Transformation Programme Resource Profile (FTE)
Resources Required
6 9 §° 56 Resources Assigned
. 52 —— Re-Forecast Estimate
46
50 at 45 : 4g 45 435 a2 2
40 35
30
10 it
Feb-12 Mar-12 Jun-12 — Jul-12 Oct-12 Nov-12 Dec-12 Jan-13
Jan-12 Apr-12 May-12 Aug-12— Sep-12
Please note:
Feb-13
Mar-13
Apr-13
May-13
‘é
Jun-13
+ Overall we have continued to deliver against our plan although we have had to use some of the contingency within the plan.
+ A resource reforecast exercise will be conducted wi/c 16/04 to establish Post Office resource take-up and take into account transition activities.
+ The reforecast will re-assess the BAU effort needed given the original requirements have not been achievable so far.
* The figures above include requirements for both dedicated programme resources and Post Office BAU resources supporting the programme.
+ Programme Management resource requirements above include enabling workstreams which are: PMO, People & Change,
Business Engagement, Communications, Design Authority, Quality Assurance & Standards, Security and Legal.
+ There is a risk of delay to delivery due to resource shortages, this is currently being mitigated as follows:
+ Recruitment is underway through MS&S.
+ Additional Post Office BAU support is being leveraged in order to keep delivery on track.
Jul-13
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Decisions for review and validation (4 week outlook) °
The following deliverables have already been reviewed by the respective Boards as listed below:
Board)
Project Deliverable Review Board Date of Review
IT Supplier Procurement SISD OJEU and PQQ Delivery Board 05/03/2012
IT Frameworks Procurement vonewons Delivery PQQ downselected list of Sourcing Council 15/03/2012
Surgery
IT Supplier Procurement Towers Council Paper (Now Delivery 27/03/2012
The following deliverables are due to be reviewed by the respective Boards as listed below in the coming
weeks:
Project Deliverable
Review Board
Date of Review
IT Supplier Procurement Towers Sourcing Plan
Sourcing Council
17/04/2012
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