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ICL Pathway
Bringing
Technology taba
to Post Office TOBTESS
Counters & Report .
Benefit Payments (CL
ML
June 1998 PO
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/026
Version: 1.0
Date: 10/07/98
Document Title: Pathway Monthly Report - June 1998
Associated Documents:
Reference Vers Date Title Source
1) PM/PRO/0002 1.0 26/09/96 Pathway Programme - Project
Planning, Reporting and Control
Approval Authorities:
Name Position Signature Date
J. H. Bennett Managing Director
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ICL Pathway Monthly Report
Contents:
Managing Director’s Summary
4)
Systems Report
Commercial and Financial Report
Customer Requirements Report
Customer Service Report
Quality and Risk Report
Business Development Report
International Sales Report
Organisation & Personnel Report
Post Office Client Report
\
i
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Managing
Director’s
Summary
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ICL Pathway Pathway Programme Monthly Report: Ref: PA/REP/026
Managing Director’s Report Wess LD
Date: 10/07/98
Managing Director’s Summary
MANAGING DIRECTOR’S SUMMARY
e = Work has continued with the two sponsors to find a joint Programme Plan
for the key events 1999 particularly for live trial and National Roll-out.
Some progress has been made in that POCL now have a plan for roll-out
starting in July 1999 and BA have modified their previous thoughts to
come round toa view that September 1999 might be possible. Both these
views however are still at a‘working level. The ICL Pathway position has
been maintained and documented in our version of our own programme
plans with roll-out starting in April 1999.
. The core of the programme activities centres around the testing of New
Release 2. This has progressed well in the areas of business intégration
tests, direct ‘interface testing-and BPS system testing. All of which have
progressed to forecast and all of which will enable the model office date of
the 10" August to be maintained.
. We continue to support the DSS CAPS Model Office Testing which. has
progressed throughout the last month to a satisfactory level from our point
of view. All data received from CAPS has been processed and.returned
without problem.
e The main stress point on NR2 testing continues to be with EPOSS system,
testing together with POCL. reference data. Resources have. been
reallocated within Pathway ’to bring more effort onto this area and extra
skills are being brought in from elsewhere in ICL. There is a large
backlog of software incidents and the plan is to tackle these aggressively
during July. ;
Notwithstanding the above the forecast date to begin the full Model Office
Test remains on schedule for the 10" August.
Whilst the focus of attention.remains on NR2:then the work needed for
NR2+ has suffered. Slow progress by both the two sponsors.on
completing their requirements definitions has also had an impact and we
are now looking carefully at.a process whereby we will issue a technical
maintenance release on the NR2 baseline as an interim step prior to issuing
the full NR2+ release. This latter, with sensible contingency,- would be
targeted for January 2000.
© The service performance of R1¢ live-in 204 Post Offices continues to run
well. We continue to outperform the service level requiréments of the
Benefits Agency in the-key-areas of reconciliation errors and their
clearance times.
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e — Considérable work has been done on the acceptance task with now 22 of
the 23 Acceptance Test Specification being progressed towards approval.
The sponsors are in less good shape with their slow response to comment
and sign off the specifications and then conduct their side of the test
activity: Overall acceptance:will be a long hard.fight.
HM TREASURY REVIEW
¢ The report from the Treasury Expert Panel has not yet been published.
We know a number of drafts have been produced. but clearly there is
difficulty with the wording for the final version. The Government
Working Party of senior officials has been very active this last few weeks
and they have the responsibility of producing their own report for
Ministers‘ which is-‘now also being drafted. This report-will use as input
material the Treasury Expert Panel report.
e Although the key Ministers were due to meet week beginning 6th July this
has-not happenedand is being reschedule we.are told for week beginning
the 13th July. A key meeting was held on Friday 3rd July with Frank
Field, the Minister for Welfare Reform and attended by Keith Todd and
John Bennett. This was a comprehensive disctission and allowed ICL to
put across its key arguments for the programme, the use of the payment
card, the move to banking services and the businéss-case position for ICL
in order that this programme can have our long term support. Although
the Minister did follow the Benefits Agency line he did explain that his
overiding objectives were to ensure bést value for money for the British
taxpayer, full support for the long term future of the Post Office and to
look after the business interests of ICL.
e As aconsequence of this meeting, Frank Field has requested a visit himself
to Feltham on the 16th July to have a complete demonstration of the
system we are developing and supporting in the field. This.is now
organised and wevare in discussion with who else will accompany the
Minister on this visit.
° There has been increased interest on all sides to understand how banking
facilities and financial services can be accelerated within the business
strategy of the Post Office. We have produced a number of discussion
papers which we have shared with Post Office, DTI and the HM ‘Treasury
which points the way forward as we see it. Thése have generally been well
received although with the lack-of dialogue -with the Post Office on. this
subject there is a danger that we are not fully joined up on this issue.
¢ — Post Office are reluctant to discuss Financial Services with us at this stage
since'they have not yet.completed their evaluation of the McKinsey’s
report and got internal sign-off to their strategy. Keith Todd will be
talking to John Roberts, Chief Executive of Post Office group to accelerate
and energise their commitment to banking and the absolute need to join in
constructive and urgent dialogue with ICL to make this happen.
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aging for's Report Date: 10/07/98
e — A substantive decision on behalf of Government is stil] anticipated by the
end of July.
ISSUES
¢ Reaching agreement on the programme plan with both sponsors covering
live trial and national roll-out.
e — Resolution of EPOSS/Reference data issues to allow Model Office to begin
on 10th August.
e Obtaining an acceptable way forward with Ministers following the HM :
Treasury. Review.
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/026
oF Version: 1.0
Systems Report Date: 10/07/98
Systems Report
MONTHLY SUMMARY
. A very eventful month for the Programme and one in which we performed
well in many:areas. The Benefits Agency Model Office activity ‘for Job
Seekers Allowance, the final phase of the Direct Interface Testing (DIT)
activity with POCL external systems and thé second cycle of Business
Integration Testing (BIT) all started on schedule. All three activities have
proceeded according to plan and it has not been necessary to utilise any of
the allotted schedule contingency.
° The weekly cash accounting: functionality in EPOSS has been a source of
concern. The probleris identified in product system testing are proving
very difficult and time-consuming to resolvé.
e Discussions surrounding the start date, scopé and duration of the Live
Trial and.subsequent start date and pace of National Roll-out continue to
take place-with the Sponsors. In the meantime, the programme forges
ahead on the basis that live trial will commence in January 1999.and Roll-
out in April 1999.
© — The development-team Was agaiti fully occupied fixing sofrware-errors and
resolving issues raised by the testing teams.and implementing approved
changes. The level of A and B priority issues raised during the later stages
of-system and. interface testing has created a large backlog of lesser priority
incidents. These must be addressed next month if we are to begin the
Horizon Model Office rehearsal activity planned for early August.
e The design.team remains dependent upon a few key staff with no backup
available. in-certain crucial areas. The recruitment campaign continues
unabated but with only limited success. Although the team has succeeded
in clearing a large number of PinICL’s during the month, they are still
faced with a significant number outstanding.
° The integration and tést teams.have had a Very successful month which is
some reward for all their hard work and commitment.
PROGRESS
e The menu hierarchy for the desktop has now been internally baselined
after applying sponsor review comments. It.is now being updated to
reflect the:changes. included in the recent delivéry of live reference data
from POCL. The Style Guide has also been updated following sponsor
comments but will not be reissued until the keyboard/screen button
inconsistencies have been resolved. Several other documents are being
updated to add more detail or-to reflect recent changes, but most of this
work is expected to be complete by the end of July.
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e There has been progress on several fronts associated with release 2+. The
second draft of the High Level Design (HLD) for Soft-EVP is being
reviewed, the HLD for CAPS online enquires has been issued and enables
development to commence and a number of reviews have been held to
determine the scope of changes to BPS. APS Smart: Design has progressed
slower than expected due to illness.
*° The development teams continue to be pre-occupied with clearing
PinICL’s and implementing approved.functional changes to NR2. A
number of product increments were released into integration testing , the
most significant being the new Reference Data management and
distribution systems. The counter development:team are not having much
success with reducing the EPOSS PinICL stack. Consequently, a number of
parallel initiatives have been instigated to provide more ‘bandwidth’
during the next few weeks.
e The testing and integration teams have been working hard to ensure that
the two externally visible testing:streams (i.e. JSA model office [Benefits
Agency] and DIT Cycle 2 [POCE] ) progressed to a satisfactory’ conclusion.
In addition, BIT Cycle 2 is nearing completion with very few incidents
raised. These activities prove that.the NR2 system is gradually stabilising
although we are still nervous about:the impact of changes in POCL
Reference data.
. Progress on the technical, performance, security and.systems management
aspects of the system has slowed down again. Detailed investigations are
being carried out to determine the exact cause.of the delays.
e — A new joint approach for the completion of the Process and Procedure
Documents (PPD’s)-and the production of the User Guides is progressing
well and we are confident that the appropriate.docuimentation will be
available for model office rehearsal.
CURRENT CRITICAL PROBLEMS
e The working group between Horizon, Pathway and POCL has met several
times: during June-in an attempt to fesolve-the ‘charging FAD code issue’.
A report proposing a way forward is currently in production. We are
hopeful that agreement will be reached within the:next 4/6 weeks.
e A serious performance issue has been-identified when attempting to deal
with temporary post office closures. This must-be resolved if we are to be
compliant with the current contractual requirement.
ISSUES
e There are.still issues outstanding regarding the delivery schedule for the
updated version (2:5) of the RODB system. This facility is required to
support the outlet installation activities during roll-out. It is now subject
to close management scrutiny.
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e The performance of the system and.our ability ro explicitly test certain
areas is causing concern. Some believe that-the hardware and time
available is insufficient to confirm the behaviour of the system when fully
loaded. There is also a concern that the sponsors will require ‘proof of
compliant-performance before giving ‘Acceptance’ rather than proof of
scalability.
° We have received updated versions of the Reference Data from POCL but
the quality is below that expected. Meetings have been arranged with
POCL in.an attempt to resolve these problems before the start of model
office rehearsals.
° There are still a few unresolved issues associated with the end to end
financial reconciliation requirement. The solution proposed to handle the
reconciliation of benefit payments*made by the help desk during loss of
service has undergone several iterations. The problem -has now been
escalated to senior management within POCL for urgent resolution.
e The facilities provided to enable the migration of data from manual and
semi-automatic(ECCO) outlets are-not behaving in a satisfactorily manner.
ICL Pathway has suggested to POCL ways in which the migration process
can be significantly improved but these require input and co-operation
from POCL Chesterfield. Discussions continue to take place and it is
hoped that agreement will be reached during ‘model office rehearsals.
¢ The volume of system incidents (PinICL’s) is perilously high. Clearance
plans are being devised for all products.
e A number of inconsistencies between the touch screen buttons and the
keyboard currently exist. We must:move quickly to ovércome'these
differences as the quantity of keyboards being assembled and stored is
rising steadily.
.© It is now clear that the interception of the Pentium 2 PC and the flat
screen will have'a beneficial impact on the ICL Pathway solution, in terms
of performance and presentation. It is therefore crucial that the delivery
and testing schedules fit neatly with the mode! office and roll-out plans.
¢ The current test strategy includes the concept:of ‘full case’ tests being run
in the Business Integration Test stream . This involves the amalgamation of
several product/system tests.e.g. benefit encashments, bill payments and
the sale-of stock items. This is now proving to be difficult to achieve but
certain parts-of ‘Acceptance’ depend upon this activity. Alternative
approaches are now being sought.
e — The current architecture for the TIP interface module-may not be capable
of supporting the entire network. The simulated tests suggest that it cannot
harvest the daily transactions generated by EPOSS and send them to POCL
in the overnight time slot available. Further work is being undertaken to
improve the performance characteristics of the current product while an
alternative architecture is' being proven in parallel.
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COSTS
© The budgets for the systems directorate continue to be refined and
regularly reviewed but’are now being used to monitor expenditure on a
monthly basis.
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Commercial & Financial Report Version: 1.0
: Date: 10/07/98
Commercial & Financial Report
MONTHLY SUMMARY
* The Treasury review:has remained centre stage and will continue that way
for some time yet. We have‘to hope that the process will result in a clear
and acceptable resolution before the summer recess.
© The review has focussed incteasingly on re-validating the direction of the
programme.in terms of the outputs which will deliver maximum benefit to
the DSS and the Post Office, and to HMG in general. That has involved
re-confirming the technical, ctistomer service and economic advantages of
the Payment Card as compared with ACT in the-medium term. 7
. Release 1c operation continues perform well generally, and this remains an
imperative.
° The full extent of CAPS difficulties is becoming more apparent, and with it
BA’s reluctance to support any significant roll out in 1999. The financial
impact of additional delays and work aggravates the Business Case deficit
pre renegotiation.
e POCL’s lack of apparent entrepreneurial drive with respect to its other
clients has raised questions about the realism of the transaction volumes
previously assumed in the Business Case. These have been reduced as a
result, with further implications for the bottom line.
e Our rate of CCN output with respect to both customer Change Requests
and Agreements to Agree has increased, The approval rate by BA/POCL
has improved slightly but-continues to lag, which is good with respect to
moral high ground but not so good in terms of establishing a clean. NR2
baseline. We still need to do better. Progress on Acceptance is at least
partly dependent on progress here.
e NR2+ progress remains painfully slow, delayed by lack.of signed off
specifications (and also, it has to be said, by effort being diverted on to
NR2).
e Some progress has:been made by the new Joint Programmes and
Commercial Forum with respect to NR2 RCD caveats, casual agents,
counter-space, migration and training. We need to work hard with POCL
to follow though on the initial promisé.
¢ Cost forecasts for the year have now stabilised.
PROGRESS
e Treasury Review
e Creation of Joint Programmes and Commercial Forum
° Working relationships remain generally good despite the pressures
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. CCNs and A2As getting better - but a lot still to do
e Flat screen solution ‘qualified in’ both technically and financially: this will
help significantly with the counter space problem.
EXTERNAL, WITH POCL AND BA
CNT
@ We have put on record that delay to the signing off of specifications (EVP,
CAPS:4 DIDVR, Smart card specifications and LFS specification) is now
causing day on day slippage to NR2 +.
e Further, given that the Authorities are causing NR2+ to slip, it is
unreasofiable for them to impose restrictions on the effective life of NR2
(the 4000 post office limit).
¢ The arbitration approach for counter space costs has stalled. Differences
remain over rights to appeal over a point of law, but the ball isin POCL’s
court to draft the agreement‘and lack of one is not yet holding up work on
the ground.
e Agreement of a new and up-to-date version of the contract has.moved
forward one notch, and I hope to report real progress next month: the
‘existing combination of originals plus‘CCNs is becoming unworkable. We
will need a clean base from which to work when we renegotiate terms post
Treasury Review.
Joint Programmes and Commercial Forum
* Topics in the frame remain: NR2 4000 limit, NR2+ functional baseline,
Counter infrastructure including :flat screens, Casual agents, FAD codes,
in-office migration, Turnover training, and Acceptance process.
Reconciliation has been added to the list.
e — POCL have accepted that the incremental costs of flat.screens will be
treated as‘‘y’ costs (which are the costs in dispute, to be settled by
arbitration). é
Finance.and Commercial Forums
«The BA Forum is dealing with a number of CCN related issues.
e The POCL Forum meets.again this week after a break of a numberof
weeks while POCL dealt with the specification backlog’and the Treasury
review.
Contract baselining and Acceptance
e €CN234: we have completed our actions on Requirements changes and
continue to wait for BA/POCL agreement. We will increase the pressure at
CNT tomorrow, citing unreasonable delay arid imposition of. risk.
° This risk extends to all contract controlled documents, A2As and CCNs
outstanding. As of now, there is still'too much scope: for mismatches and
therefore apparent faults which are not real.
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. The form of the Acceptance process is still exercising Sponsors. They have
yet to declare their proposals officially and there are likely to be issues
when they do.
. The pace of script validation by the Authorities has picked up slightly
under pressure from John Dicks’ team but the absence of Test Managers
raises concerns as to lack of ownership and hence ability to:sign off. Unless
addressed soon, this will become another cause of delay. Time to escalate
to CNT.
EXTERNAL, WITH SUPPLIERS
° Subject to confirmation, it looks as though we have settled the. man rate
issue with Oracle (saving around £800k this.year). However, we are likely
to face a new man rate issue with CFM. CFM have committed to supply
Oracle support to us at rates which are significantly lower than the newly
agreed corporate rates under the ICL/Oracle Frame Agreement. These-are
approximately 75% higher than we have been paying Oracle under out
own direct agreement.
e Internal charging within ICL is becoming less confused. Nevertheless we
had to take time out to face down an attempt from one part of ICL to
retrospectively increase charge rates for June. We happen to be that unit’s
largest customer by far and will spend close to £10m with them this year.
Disciplines:are still lacking and the lack of:a ‘valued customer’ ethos a
serious concern.
. More supplier tensions are probable over the summer as the likelihood of
yet further delays.becomes clearer. Some are getting-twitchy about the
press comments they read.
INTERNAL TO ICL PATHWAY
° Progress on A2A CCNSs has accelerated.
° Reconciliation (specifically around BES fallback) may have.moved forward
- a customer meeting this Thursday will determine whether we have
broken the back of it.
. The Forecast has stabilised but the recruitment lag continues,.saving
money buit delaying work.
e The new intercompany charge rates are factored into the Forecast for Q3
and Q4 only.
CURRENT CRITICAL PROBLEMS
e The lack of any solid planning base - in terms of roll out timescales in
particular (equipment and services supply)
e The continuing lack of definitive specification for NR2
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Baselining NR2 for Acceptance - CCN234 and A2A CCNs
The high level of change: on the one hand, essential to conform to
specification, on the other, destabilising and a serious management
overhead.
ISSUES
COSTS
Outcome of HMT review - prograrnme impact and commercial terms - the
time it will take'to finalise the details once the principles have been agreed
- uncertainty in the meantime.
Roll Our Timescales -. NR2 versus NR2+, the caveats, BA’s latest position
on end-to-end testing, Acceptance -delay, etc. --how to plan
Factoring the probable new timescales, business volumes and costs into the
Business Case has had a further damaging effect (although this has reduced
the Risk Register ‘overhang’).
The need to raise more funding this year: we.start meeting the banks.in
three weeks time, before the outcome of the Tréasury Review is likely to
be clear.
The Controller’s report follows.
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Customer Requirements Report
MONTHLY SUMMARY
e The team continued to drive the Acceptance task forward.
e There are now 22 of the 23 Acceptance Test Specifications (ATSs)
produced .and being progressed towards approval. The large EPOSS ATS
was output and the last ATS, for Audit, is due this period.
e The first ATSs have achieved recommendation signatures. Getting the full
approval signatures will be interesting test of customer will.
DETAILED PLAN ACTIVITIES
RELEASE NEW 2 / 2+
© Dave C has revised and re-issued for approval the APS Service Overview
and produced a proposal for linking to the HAPS contingency site. There
is a commercial issue over who should bear the cost of imprinters (zip-
zaps) used in AP fallback operation.
° There has been a minor panic concerning keyboard layouts. Design has
raised.a CP seeking various changes, changing some keys and adding new
ones. The key mappings were agreed with POCL in 1996.
e — Tony H and Dave H have continued to support the.joint
CAPS/PDA/Pathway reviews. These represent a good process for clearing
issues. All known NR2 issues have been resolved or documented for entry
in the RCD or KPR and the meetings’ focus is moving to NR2+. CAPS
have-issued new levels of interface specification (DIDVRs) for both-CAPS
Release 3 and CAPS Release 4.
e° Tony H has output definitive-versions of specifications for Post Office
Closures and Foreign Encashments. There are issues just below the surface
on encashment business rules as BA attempt to reinterpret:the rules to
extend requirements for newly recognised possibilities. Tony has also
produced a functional specification for CAPS Contingency.
e New drafts of the SADD for. NR2+ were produced.
CARS
e No CAR work this period.
A2AS
° Customer Requirements has no actions.
CCNS / CRS / CPS
e _CCNs 117 and 234 remain unapproved.
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. Dave H has engineered an agreement to resolve how the Requirements
and Solutions will be straightened out after their having been deranged by
the introduction of reusable Temporary Tokens. No discussion. took place
on Temporary Customer / Agent definition but it‘is‘apparent that DSS and
Horizon are accepting the Temporary Agent as a payee class with its own
specific encashment rules.
. Dave H produced CCNs for removing the clerk id from impound and nil
receipts and including Temporary Ageits in MIS encashment reports, and
a pre-CCN response for single:signature on BES continuation receipts.
. Dave H produced CPs for suppression of card re-otders, fundamental
checks of card security data, and improved handling of card re-issues after
impound.
ACCEPTANCE
© The.customer has not published the scoping study, which: is. supposed to.be
the basis for raising his game. Meetings are imminent to address issues of
process, boiler plate text etc. — all coming too late to be more than
irritants. The customer wants more trials than the contracts provide for.
¢ Our intent is to force out approval-level ATSs and put pressure on the
customer staff not to cause “unreasonable delay”.
. Implementation: Pam Barlow has achieved recommendation signatures on
two out of the three ATSs.
. Help Desks: Peter Burden has forced through a first round of response
résolutions. Change Control will be needed to match up agreed Solittions
with Requirements.
° MIS: Peter Robinson has secured agreement to all his responses.
. Customer Education: Anna Campopiano has drafted Change Control
material for the customer to allow the ATS to go forward for signatures.
e APS: The ATS was issued in final form and Dave C expects to get this
recommended within. days.
. OBCS: This is down to the last issue, the prevention of OBCS being
configured for Northern Ireland offices.
POCL Infrastructure: This.area required two sessions to go over all the
responses. The outstanding issues are the continued insistence on
performing technical assurance, essentially vetting our and our
suppliers’ designs and.developments, performance analysis and seeking
to redraw service/system boundaries.
° EPOSS: John P has achieved output of the large ATS. However, review
work is currently single-threaded through one petson in POCL. We are
pressing for the customer to put more people on the job.
e TIP: The official comments to the ATS, which was recast at their insistence
to be trials-oriented, were received and responded to.
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° Reference Data: No comments yet and now well overdue.
e John C and Dave J have successfully come to-grips with the.Bracknéll
based Acceptance activities and ICL and Customer personnel, JC taking
responsibility for Performance, Integrity, and Systems Management.and DJ
for Security.
e — The two related ATSs are Service Levels, which in fact means future
performance measurement and modelling, and Security, with significant
contributions to POCL Infrastructure.
e Security: The responses review meeting was completed with far fewer
issues than, had been expected. Only two issues remain: fulfilment of a
commitment to provide trials material baséd on delegated third party test
plans (CFM and.Girobank); and a demand to fold penetration testing into
Acceptance. This is not justified by the contract and will be refused.
e Service Levels: The ground is being prepared for this responses meeting,
which is expected to pose the same “assurance. quest” difficulties as that
for POCL Infrastructure.
° PAS and CMS: Tony H has progressed these:to‘the point where:all
responses were accepted.
° DSS Interface: Our responses to commients aré being digésted.
e All associated HLTPs have been revised to cover marginal required tests.
BES: A second late tranche of detailed comments on-BES was received
from DSS and'was responded to. The first-tranche responses were
reviewed. The major unresolved issues concern the treatment of split
requirements, cases where both BES and PAS elements form part of the
Solution, and testing BES recovery processing.
The comments just in on Reconciliation are extremé, and the interim
ones against the‘interim ATS for Audit are only slightly less so.
e® — Aninterim version of the Acceptance Test:database for NR2 has béen
constructed using Excel and a number of the ATSs have been populated
into it:
NEW BUSINESS SUPPORT
. LFS: The progress towards completion of the schedules was very slow.
Final drafts exist for the Service Definition and Service Levels Schedules -
we are awaiting the printed versions. POCL have actions to produce the
rest of the schedules.
e Some design work has progressed, but we are dependent on POCL
identifying people with whom our teams can work with:
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OTHER TEAM ACTIVITIES
° Discussions with CAPS on possible application of Hopewiser to generate
delivery point suffix data have not progressed; there may be a possibility
to run within CAS as an alternative.
e Dave H published.a Workflow paper in The Systems Journal.
« John D did three subpostmaster interviews in NE region.
CURRENT CRITICAL PROBLEMS
° None.
ISSUES
° None.
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Customer Service Report
MONTHLY SUMMARY
Service performance in June was generally very good marréd only by a file
system failure at Wigan.
We continue to beat the BA target of 0.1% for transaction.reconciliation
errors - lost transactions are currently the main cause of concern. Again we
achieved the target of 100% of reconciliation errors cleared within 5 days.
RELEASE 11C VITAL STATISTICS
Installed base : 204 Post Offices, 334 counters
Number of Cards issued 34,033
Number of Active Cards in use 28,958
Total number of BES Counter Transactions 361,022
BES Counter Transactions in June 74,007
Total value of Benefit Payments received £11.3m
Value of Benefit Payments received in June £2.1m
Total value of Benefit Encashments made £10.8m
Value of Bénefit Encashments in June £2.3m
Total number of OBCS Transactions 4.5m
Number of books impouiided 13,942
Potential fraud avoided £1.5m
PROGRESS
OPERATIONS
Release 1C has generally performed very well save for a series of problems
with the Sequent SE70 host file system at Wigan. Sequent did not perform
well, suffering problems ranging from ‘Wrong Part,In. Box’ to simple
human error. We have since held a réview and identified several remedial
actions to improve their quality of service. A full.report from Sequent is
expected identifying the reasons for the-unexpectédly high failure.rate and
their improvement plan. Throughout this problem the SSC received
excellent support.from Oracle to ensure the integrity of our data.
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We have experienced a single recurrence of the ‘Half screen’ problem. The
Release Management Forum decided to increase the frequency of the
workaround fix and send a reload instruction to the counters twice each
week: It is very important that the root cause of this and other Ric
problems is identified arid confirmed to be eliminated from.NR2.
Martin Riddell is to present, jointly with CAPS Support, to the CAPS
Board next month the results of the operational interface improvement
plan: The important point here is that progress has been made on all of the
concerns expressed earlier this year and that an agreed position has been
reached between ICL Pathway and CAPS Operations.
BUSINESS SUPPORT
The BSU is maintaining a good relationship with the BA and has now
achieved a ‘to the penny’ reconciliation every day for 2 complete months -
an excellent achievement !
In stark contrast, POCL have still failed to agree our proposed design of
the transaction fallback and recovery solution. This has created frustration
and uncertainty all round and’ consumed a large amount.of time and éffort,
which has had an adverse effect on the end-to-end process development.
BA & POCL SERVICES
RML have agreed to reconsider their'view on the process for RML/POCL
card package hand-over and are taking further action to understand ‘the
impact of the process.
There have been. further instances of “Freepost ICL Pathway” letters being
delivered by RML to the wrong location! RML are to issue a nation-wide
bulletin to address the issue.
No more benefit cards will be produced by De La Rue in 1998.
The programme of visits by HSH staff to Post Offices, to improve their
understanding: of life-in a Post Office, has.begun.
CUSTOMER SATISFACTION
The first visits on the Management Care Visit Programme have been
undertaken. I am delighted that all of the management team.has accepted
the invitation to participate in this important programme.
An analysis and commentary relating to service visit reply cards is
available. The percentage of'satisfied responses was 94.5%.
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SYSTEM SUPPORT
e We.have experienced a marked increase in-the number of network
problems for which Energis has provided inadequate or no explanation.
Work is being done to improve diagnostic information and Energis is
being asked to provide a formal report.
INFRASTRUCTURE SERVICES
(MIS / PROCESS ENGINEERING / PERFORMANCE / IT)
e¢ The long awaited Volumetric information from CAPS has been received.
The profiles are drastically different from current plan ratios and timetable
and will need to be carefully considered and extrapolated before we can
accept them.
. Work.is nearing completion on NR2 EPOSS benchmark transaction times
and is almost.complete on card issue times. NR2 BES, OBCS and APS
transaction times are with POCL for comment.
e¢ The IT infrastructure upgrade will be completed in early July. All dser data
whichis located on the-new server is now secure and backed up
automatically.
CURRENT CRITICAL PROBLEMS
. None
ISSUES
e ‘None
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Quality & Risk Report
MONTHLY SUMMARY
° FRM progress. FCMS progress made.in documenting procedures and
testing. A potential fraud issue has been identified, regarding card detail
checking at-the counter.
e Risk Management. The Programmes Risk Register for June shows a
reduction in-the overall score of 20%, largely as.a result of the replan.
Major risks still remain around the level of design gaps, and the potential
impact on Release 2. Acceptance risks are being identified, mainly in the
will / ability of POCL to sign off and resource’ the activity. NRO Risk
register has been issued with a Mitigation Action plan.
e — System Security. Significant progress has been made with development of
procedures-and preparation for Release*2. However, security-design
exposures have beén identified with passwords (consistency of length in
* the.system:and expiry at the counter) and SMC caller identifiaction.
° Audit. Progress is being made with developing standards and procedures
for Release 2. Design concérns have been raised about consistency of:time
through the system and data archiving / back up.
e Year 2000 Conformance. The changes to the timetable for Release 2 ( and
implications for 2+) may cause POCL to insist on 1c being compliant,
which needs to be vigorously resisted. Product issues continue to be
identified;.an approach for service providers has been developed..
° Cross Government Fraud. A Fraud component,model and expertise map
has been produced - the next.effort is to produce input for the Green
Paper.
PROGRESS
FRAUD RISK MANAGEMENT
RELEASE 1¢€
° During June no suspected fraud incidents were reported.
e The FRM.PC’s in Bootle currently cannot produce CD’s. Remedial action
to-restore.the PC’s to full operation is underway. In addition, all prévious
analysis performed by Girobank and stored on the PC was lost.
NEW RELEASE 2
e Issues regarding card detail checking at the counter have been identified.
This is under investigation to identify the full impact and solution.
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FCMS. The procedure to document FCMS administration has been
drafted and sent out for review. Testing of the FCMS is going well and
implementation of the system is being discussed.
Modelling of the Girobank Fraud Analyst'tasks has been completed.
Scenario analysis ‘is required.
The location of the Horizon Programme FCMS PC’s has been confirmed
as Quarry House in Leeds, and a CP raised to implement.
Comments were incorporated in Incident Categorisation and Information
Interchange procedures which were distributed for sign off.
RISK MANAGEMENT
Programme Risks. A-risk report for June has been completed and reviewed
by the management-team. The overall risk rating has decreased by 20%,
largely as a result of the replan. However the major risks for Release 2 are
still the continuing level of CPs, associated with identification of gaps in
the system design. There is also a high risk of significant impact.on Release
2+. Acceptance risks include primarily the will / ability of POCL to sign
off. Test Specifications and resource thé acceptance. activity.
NRO beat rate risk analysis. Version 3.1 has been issued together with the
Mitigation Action plan. Major risks include office modification and
acceptability, sub-postmaster availability and rescheduling, reference dara
mapping, migration processes, and training attendance. Progress will now
be' monitored against this baseline and exceptions.reported monthly
through the 300 Club Meetings.
SYSTEM SECURITY
RELEASE 1c.
A post implementation security review of the SSC and cryptographic key
generation facilities in Bracknell was undertaken with the Horizon FSG.
Similar visits to LSA, STE and Belfast are planned.
The fix to modify the password expiry parameter in the live post offices is
fundamentally flawed. If the password expiry manifests when a user
session is timed-out, the machine locks permanently and requires to be
swapped-out. Horizon is insisting that the 30 day parameter is
implemented in all live outlets by July 31st - CS are raising the Pin[CL
priority to ‘A’;
A CP was raised to introduce a list of excluded passwords throughout the
solution, to address a current PinICL and to intercept many potential
PinICL’s.
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NEW RELEASE 2
e — The Admiral Management Services Penetration Test & Scoping report has
been discussed with the Horizon FSG and joint testers. Their formal
responses are due 8th July.
° Meetings have been held with ICL-Commercial & Legal to arrarige an
export license for ‘Red Pike’ to the De La. Rue contingency site in Sittard,
Holland.
e All three meetings have now taken place with providers of managed
services to Pathway regarding their security testing. A test manager will
assume responsibility for the third parties.
° The first of:a series of reviews of the Access Control Policy was held with
members of the SSC to-ensure that the document reflects current practice.
e — Significant progress has been made with developing Security procedures
for R2:
¢ Draft. procedures for the creation of SecurID accounts and
deployment of tokens have been written and distributed internally for
review.
e The scope and responsibility for key expiry processes at the counter
have been agreed. Customer Service have responsibility as they are
viewed as normal Post Master housekeeping activities.
e A procedure for cryptographic key loading at.Huthwaite has been
drafted for comment prior to presentation to the Horizon.
e The agreed standard for user identifiers (userids) is seven characters: 5
alpha + 2 numerics. This information gets truncated to six characters by
CAPS and by certain, internal Oracle applications. Design are trying to firid
a way forward but will meet significant resistance from the Horizon FSG
who agreed the seven character length and expect it for TIP.
« There is a requirement for authenticating callers to the SMC using the One
Shot Password (OSP). This problem has been exacerbated because the OSP
facility has been nominated as the authentication solution for HFSO’s
during office migrations. A solution is being sought.
NEW RELEASE 2+
. A technical walkthrough of the VPN CCN was given to the Horizon FSG
and Technical Assurance team in order to facilitate. formal impacting.
. Meetings have continued througliout June to agree the design for the Key
Management Application and associated database for Release 2+.
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QUALITY
° An audit of WTL head office processes was conducted. Issues were raised
regarding processes for selecting competent 3rd party surveyors /
contractors, monitoring their performance and for handling complaints,
claims and H&S incidents. WTL’s reaction was that that Pathway are not
entitled to audit their activities to this degree. Subsequent review of the
WTL contract confirmed that Pathway has the right to audit WTL-and its
sub-contractors.
¢ Further support for Masons! A 11/95 Report of visits to Stroud POs was
forwarded to support their review of our pre-contract knowledge of the
condition of the PO estate.
e Analysis of monitor failures.indicates that an unacceptable failure rate still
remains following remedial actions. PPC is negotiating a trial with
Microtouch to determine whether recent product deliveries meet
specification:
e Acceptance: The ATS for TT1 has been redrafted to reflect R2 test strategy
and circulated for internal review / comment.
PROCESS MANAGEMENT
. The Common Charging System process has been reviewed and a draft of
the proceduré is in hand.
. Definition of the Asset Management.Process has raised issues regarding the
complexity of the system and options are being considered.
AUDIT
° Background information on R1¢ PinICLs-requiring R2 action and on the
operation of the Release Management Forum is being reviewed as a basis
for audit of:the process whereby R1c patches are implemented in R2.
° Reconciliation Exception Database audit-has been completed and discussed
with CS. Improvements have been agreed and are being implemented.
e —_NR2 Process Improvement Programme. The Corrective.Action Plan was
reviewed and agreed actions documented. It has béen formally issued to
the Management Team and actionees.
. Develop Audit Function. A matrix of ‘audit’ requirements to Acceptance
Specs and their supporting Business Threads and High Level Test Plans has
been provided to POCL and BA to aid their understanding: of Audit
acceptance. Progress has been made in developing standards and
procedures; including Audit Policy, Internal Audit Manual and. Horizon
System. Audit Manual for NR2.
e Audit Design. There are some concerns about system design implications
for audit which are being addressed:
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° Consistency of application of time through the system (also potential
implications for RACE)
* Tape'Silos and space requirements in the Data Centres
e Data Archive overlap with data backup requirements.
YEAR 2000 CONFORMANCE
RIC is not:specified to be a Year 2000 compliant release. However there is
a risk that, following the recent programme re-scheduling, POCL may
request that.it is made Year 2000 compliant.
3rd Party: products:
° NT4 Service Pack 4 has been delayed, and a recommendation has
been made to systems as to way ahead.
e — Tivoli sign off of target build baseliné for NR2 is still dragging .
. Sequent have advised us that the Unison compliance staternent is
wrong.and that we need to move to Version 5.2 for compliance
° SQL-Server v6.5 (used in Roll Out Data Base) has declared. defects;
one fix-will not be available until Q3/1998.
e The baselined version of the-Firewall! Design specifies Solaris 2.6; the
firewall software has not been tested on this release and is not yet on
the market. :
A questionnaire has been developed as a basis for discussing service
providers Year 2000 compliance programmes.
A Year 2000 Risk.assessment update has been circulated.
Release 2+. A review of APS specifications has revealed 2 issues: calendar
software is required to translate date formats, and compliance of current
POCL software (cards may be in circulation which afe not compliant).
CROSS GOVERNMENT FRAUD
A component model and matrix of available expertise (inside [CL and
partners) has been produced with TSC Local Government and Experian.
Effort is now directed to producing fraud input to the Green Paper
response.
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CURRENT CRITICAL PROBLEMS
ISSUES
° A number of operational issues-are arising as a result of system.defects,
correction of which is being deferred. This:impacts QRM, in that they
must be impacted and workarounds produced and operated. These
include:
° System time inconsistencies
° User password inconsistencies
. Card detail checking at the counter.
e Audie; archiving design.and extraction.
e Authentication of SMC callers using One Shot Password.
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Business Developement Report Gates 10/07/98
Businéss Development Report
MONTHLY SUMMARY
° We continue to keep Marketing Comms under very close attention. The
most active organisation this month has been Computing who ran one
article and may follow up again. This was focusing on the Treasury
review. The.agreed (between sponsors) approach is to, keep our head
down until after the review.
. Finalising our advertising approach is being kept on hold until post
Treasury review.
° A proposal on Government communications has been.circulated to
relevant. ICL personnel without any comments and therefore this strategy
is now being implemented.
° Prime focus on Business Development has been preparing presentations
and papers on Banking via the Post office.. These have been given to
Treasury and Dri and been shared with POCL. It continues to be utterly
frustrating that POCL want to keep us at arms length. One view is this is
to not annoy BA (as if they were not-annoyed now). The other is POCL
are trying to identify a potential way forward if the Treasury report came
out negative. ‘
e Work continues on LFS (Logistics Feeder Service). I have now had to
write yet again to POCL stressing they are missing yet another set of
agreed dates for submission of schedules for EFS. This continues to be a
grind and we must use these examples.as learning points for the future.
. While work has concentrated on Financial Services, we must not lose sight
of two other major thrusts for volume business in the future - Government
Services‘and Mails. Given the Escher'developments on Mails. I want to
te-focus our efforts and direct these towards, Royal.Mail rather than via
POCL although we will, of course, keep POCL informed.
° The marketing suite plan is prepared and ready to go. This will ensure we
have a full demonstration suite of products - current offerings, household
budgeting, mails, Internet services and kiosk offerings.
e Tam concerned that following the demise of the PDA Board as a top level
group, that top level of communication has now fallen to Dave Miller and
Mike Coombs. I think.we need to re-investigate a board-to-board level
group or at least a subset to take a‘wider view of life for mutual benefit.
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PROGRESS
* Customer Education Media & SIG roll-out. Activities in terms of planning
and pre-production work have started - the objective is to bring work
forward to accommodate'the time shift of the advertising (and to use
resource better) the problem js-that activities here.are also effected by the
Review and the Nile replan.
e Internal Comms - ICL Pathway: much progress - sterling work from
Chrissie. Excellent new corporate presentation and a. number of social
activities to maintain staff morale and raise.money for ‘our agreed charities.
° Sponsor internal Comms: Where we can influence communication we
make progress (in terms of us placing stories in internal publications).
Realistically good internal comms needs managerial support - managers
within the sponsor organisations need to say good things about this project
- we must continue to apply pressure.
e Treasury Review and Nile replan has caused all contractual
communication activities to stall - at least a two months delay on current
plans is envisaged in this area. Sponsors have been told that they:can no
longer afford to prevaricate. All advertising, proactive:media.and SIG
activities are therefore stalled. Despite the stall, sponsor approval is still
being sought-for the ideas currently on the table. This has caused a lot
more work than anticipated as POCL have changed their mind at the last
moment - causing additional costs of £1000 and time wasting.
. Future ICL Pathway media communications: ideas on how we should.do
this following the Review are coming together. Communicating will not
be difficult: agreeing the lines we take and messages we intend to use will
be - as will be managing the sponsor fall-out. I remain hopeful that POCL
and CAPS will partner us with positive communication of the Review
outcome. .
e The Future of European Postal Services conference in Brussels was
attended. A useful session concentrating on. Mails but giving a good view
of the directions of the different Postal Authorities.
. The.first Escher Riposte User Conference. took place'in Boston attended by
‘names’. Again a successful event in terms of networking, looking at
potential joint activity, learning about new Escher products and hearing
some new. ideas from MIT.
° Generics Progress: Analysis is underway to determine the proportion of
re-engineering requirements which can be satisfied by the four generic
functions which we have proposed - this is due to be completed by the end
of July. In addition, we are in the process of producing a detailed
requirement specification for Supplementary Details Capture - this is also
due to be completed by the end of July
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. The key business development activities are targeted at client retention, bill
payment and personal banking services. ‘However, looking to the future,
the opportunities we are keen to investigate include multi-channel
(expanding the infrastructure to support kiosks, web sites, digital TV sites,
and call centre) and ticketing (travel, hotels and leisure events).
2 Analysis is underway to determine the proportion of re-engineering
tequirements which can be satisfied by the 4 generic functions which we
have proposed - this is due to be completed by the end of July. In
addition, we are in the process of producing a detailed requirement
specification forSupplementary Details Capture - this is also due to be
completed by the end of July.
CRITICAL PROBLEMS
° Getting POCL to open up with the output from McKinseys and.taking us
into their confidence on how we can implement some of the new ideas.
. To progress. Generics we require input from the Design function. Design
do not have:the resource to support this activity.
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International. Sales Report
SUMMARY
PROGRESS
CURRENT CRITICAL PROBLEMS
ISSUE
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Organisation and Personnel
MONTHLY SUMMARY
e Another excellent month in terms of resourcing, but also some very useful
work completed on a remuneration survey
PROGRESS
e The heavy emphasis on resourcing continues with strong-overall success.in
recruiting permanent staff. This is demonstrated by the figures below, but
of particular significance is the.fact that 52 permanent staff have been
recruited this year. These have nearly all been individual campaigns.
Permanent appointments in June 16
Currently under offer 7
Appointment YTD . $2
Current requirements 19
86% of vacancies (in 1998) have. been filled within the benchmark target
of 3 months, and 64% within two months.
° The roadshow recruitment campaign to address difficult vacancies will
take place in September, timéd to coincide with the most buoyant time in
the recruitment market place. This campaign methodology is now being:
worked up with Hays IT recruitment. In particular we are aiming to make
in-roads into Development and Testing recruitment. There are also plans
to attend VISIT -.an IT recruitment fair - in London during the second
week in July, creating’a strong ICL Pathway presence on the generic ICL
stand.
° Due to earlier.success, [CL Pathway has committed to 11 industrial trainee
placements for the next academic year. Selection events at both
Southampton and Leeds Universities have been successful in identifying
appropriate people. Given the numbers of people to be employed on this-
basis, the scheme is being strengthened and will be coordinated by Sandra
Houghton.
e The salary survey has now béen completed and the data is being analysed.
The initial message is that We are well positioned within the market place
with competitive, if not high.end, packages. A full report will be made and
this will be central to decisions about [CL Pathway’s future remuneration
strategy. This has been a key piece of work.
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© The above work has.also enabled the mapping of all permanent roles in
ICL Pathway. This has enabled a first stage analysis of the likely shape of
moving staff into the Professional Community framework and we are
working with Group Personnel to identify the most appropriate way of
achieving this.
CURRENT CRITICAL PROBLEMS
. None.
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The Post Office:- Client Director’s
MONTHLY SUMMARY
Following final presentations to Post Office IT Services in Chesterfield ICL
has been invited to negotiate the contract for supply of technical skills
under a framework contract.
PROGRESS
TREASURY REVIEW
Following the completion and submission of the ICL Pathway input-papers
to the Treasury Panel in May/June, the feedback presentation from
Treasury was positive for ICL and the final written report has.been
submitted by the Panel to the cross-departmental working group - we
await sight of a copy. The ministers’ meeting to review the report has been
postponed until, we believe, week beginning 13 July. A new-presentation
was prepared for the meeting called by Frank Field with TKT and JHB 3
July, resulting in the Minister requesting a demonstration of the system,
now scheduled for 16th July. The BA position appears to have softened
very recently, possibly as they have found themselves a lone voice on some
issues.
It is now distinctly possible that the negotiation of whatever outcome is
agreed by ministers will stretch into. August.
DESKTOP
This Contract, won by ICL Multivendor Computing Division, now well
under way-with 500k pounds shipped in May and over 1m pounds in
June.
TECHNICAL CONSULTANCY
The bid to PO IT Services for supply of ad-hoc technical skills in
distributed systems, networks and database has been won subject to
contract. This bid has been run by {CL Government Services Supply Unit,
under Client Management direction from FELO1. Final presentations on
10th June with John Bell fronting resulted in an invitation to proceed to
negotiate a preferred supplier contract. Although this:is not large business
(less than £1m pa, shared) its importance lies in the access it will give to
the key technical IT managers across Post Office.
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POCL STRATEGY REVIEW
° The McKinsey-study is complete and CEC have made'their decisions.-
appointments are.now being made (but not announced) to run 60 day
implementation planning exercises for each of the identified programmes.
We expect these to include Financial Services, Government, SmartCard,
Organisation, Partnerships amongst others. The Government Programme
will become.a PO Group wide Programme once a Group level Director is
appointed - POCL are managing in the interim.
OTHER ACTIVITIES
e A further bid has been submitted for‘supply of Applications Development
and Maintenance, again the bid being run by the ICL Government SSU
under Client Management direction. ICL has been shortlisted for this
substantial framework contract, with individual contracts under the
framework expected to be valued between 200k and 20m. Applications
software.skills are a key element of the requirement: Owing to the
potential value, this bid will be reviewed at ICL Group level on 29 July,
prior to tender submission 3 August.
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