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ICL Pathway
Bringing
Technology Monthly
to Post Office Progress
Counters & Report
Benefit Payments ‘CL
FUJ00058181
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ICL Pathway Programme Monthly Report y Ref: PA/REP/037
fersion: 1.0
Date: 28/05/99
Document Title: ICL Pathway Monthly Report - April 1999
Associated Documents:
Reference Vers Date Title Source
{1] PM/PRO/002 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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Managing Director’s Summary
Systems Report
Commercial & Financial Report
Customer Requirements Report
Customer Service Report
Quality & Risk Report
Business Development Report
Implementation Report
Organisation & Personnel Report
Post Office Client Report
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Managing
Director’s
Summary
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ICL Pathway Managing Director's Monthly Report Ref: PA/REP/037
Version: 1.0
Date: 28/05/99
Managing Director’s Summary
PROGRAMME PROGRESS
© The migration of the Release 1c counters to NR2 began on schedule on
Sunday 11" April and completed on Thursday 22" April also on schedule
with a total of just under 200 Post Offices successfully migrated. One or two
Post Offices.came out of the programme, following normal business rules of
the Post Office.
e The conversion of the Data Centres from Release 1c to NR2 took place
successfully on schedule on the weekend.of 8" - 9"* May. In the event we
had good-support from POCL for both sets of-migration following some
hesitate in their decision making. However, the Benefits Agency continued
to frustrate progress although they were overruled in their request to defer
both activities.
e The operational experience or running NR2 has been very good in terms of
day to day operation of the system with most sub-postmasters finding the
system intuitive and easy to use and able therefore to input all their business
transactions across the counter through the new IT infrastructure.
© The major issue we face however is that they need to balance their cash
accounts every Wednesday evening and this part of the system has proved
very difficult for them to operate. Extra support activity has been put in
place to guide them through the process and this is enabling them to
complete their work.more or-less to, schedule. However the big issue
remains that such hand holding is not practicable during national roll-out
and therefore there is critical work to be done to make the system much
easier to use, much more reliable from the sub-postmaster’s point of view
and therefore requiring less.support.from POCL and Pathway. Although
there are no system errors as:such in the product delivered by Pathway, the
fact that it.has severe usability issues (it does fulfil the user requirements as
signed-off by us and POCL) this does not remove the need for us to take
urgent and effective action. -
© — Since completing the migration of the existing R1c Post Offices we have
successfully moved on to implement a further 50 Post Offices in week-
ending 21* May and these all completed on time and to schedule. A further
50 are due for completion by Friday 28"* May which will then give us a
population of 300 Post Offices which is seen by POCL to be a
Tepresentative cross sample of their entire estate and these then can now
move to live trial which will finally test their operational acceptability and
pave the way for national roll-out which remains:on schedule for late
August.
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ICL Pathway Managing Director's Monthly Report Ref: PA/REP/037
Version: 1.0
Date: 28/05/99
° Good progress has been made in Acceptance during the last period with 10
of the 11 Acceptance Trials closure reports now issued. These do cover the
entire Benefits Payment Card and Horizon Systems and following the
Treasury Reviéw decision now taken, will need to be readjusted with the
withdrawal of DSS from the contract. In addition we have completed 55 of
the 62 review packs which form the second part of Acceptance. Ironically
the reviews for the DSS services have.gone particularly well albeit they are
now withdrawn from the contract. Our target is to complete the final set of
reviews by mid June so that the period following this can be used for
clearing up outstanding issues and ensuring that Acceptance overall is
achieved. Again with. the revision of the contract we will need to watch
carefully the attitude of POCL and ensure that they remain positive towards
getting the right decision. So far there are 27 fully documented Acceptance
incidents raised which at this stage is considered to be a manageable number
and are being acted upon promptly.
e@ — With the withdrawal of DSS from the contract and the cancellation of the
Benefit Payment Card system we are now actively proposing transition plans
to BA whereby the 38,000 people using the card can be migrated back to
order books. This plan is now well developed and is now being discussed
between the parties. It should be possible to.remove cards within the next 8
weeks and as per the contract struck all costs for doing this will be charged
to DSS on a time and material basis. Details of this are currently being
negotiated with DSS.
COMPLETION OF THE TREASURY REVIEW
© The review has now formally completed with a decision by Government to
cancel the Payment Benefit Card element. A legally binding agreement has
been entered into which will lead on to a new POCL agreement fully
consolidated, which has the target dates for completion of 16 July 1999.
Ww
. They key features of the way forward are a revised contract which
fundamentally has a stage payment structure to build, deliver and operate’an
infrastructure programme for the Post Office. The PFI elements of
transaction fee income has been removed, the contract is much more
simplified and the risks are more manageable. Nevertheless, a substantial
provision has been taken in the ICL Group Accounts to cover for the
abortive costs of the Benefit Payment Card and recognising the need to
make prudent, provision for this:
e Looking ahead considerable work needs to be done to finalise the new
agreement, to:resolve outstanding issues with our major suppliers and to re-
focus the energies of.Pathway staff on to the contract we now have and dis-
engage on those areas where we now no longer have any responsibilities.
e We have in many ways drawn a line under the past and have a lot or work
to build a solid base line going forward. However the clarity now presented
does allow us to deal with these challenges and help construct a business for
the Post Office which is more manageable by ICL.
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ICL Pathway Systems Monthly Report Ref: PA/REP/037
Version: 1.0
Date: 28/05/99
Systems Report
MONTHLY SUMMARY
. The final release Authorisation Board (RAB) for NR2 Live Trial took place
7" April. Horizon, POCL and ICL Pathway supported entry into Live Trial
but the Benefits Agency did not. They believed that an additional Model
Office cycle was required but could not produce evidence to substantiate
this position. Consequently, POCL and ICL decided to go ahead and the
migration of the 1C counters commenced on the 12" April as planned. The
Data Centre migration from Wigan to Bootle:is planned to occur over the
8/9" May and will require. BA’s co-operation if it is to be successful.
e All the regression activities required to generate the confidence to
implement the NR2 hardware/software baseline was completed successfully.
Testing is underway on the next version of the software (LT2) which
contains important ‘Acceptance’ fixes. This will be intercepted in the live
environment 12" July shortly before the ‘observation period’ ends. NRO is
still scheduled to commence 23“ August 1999.
e The Benefits Agency commenced first cycle of the multi-benefit testing 12"
April as originally scheduled and completed a cut down test plan on 27"
April. The next cycle is due to start 6" June.
. Progress on new release 2+ continues with the development of KMS, VPN,
LFS and AP Smart and the enhancements to RDMC, Data Warehouse. and
EPOSS but the changes to BPS are proving difficult to keep to schedule
particularly ‘soft EVP’ which. has.not yet been approved by the Sponsors.
Mapping progress against milestones:is proving difficult in the absence of
any baseline dates agreed with the sponsors. The uncertainty created by the
‘Treasury Review’ and the proposed changes to the development life cycle
are the main factors’ preventing more detailed progress reporting.
° The transition to the new organisation of the Programmes and Systems
departments is now underway and the response from the team has been very
professional and supportive. ICL Pathway is now poised to déal more
effectively with the additional and diverse workload expected in the latter
half of 1999.
¢ The performance. of the team during the past 4/5 months has been.a credit
to them all. 99% of all dates have been met and the system installed as
planned. This has been achieved in spite of the enormous technical and
managerial difficulties they have faced and with a demotivating uncertainty
surrounding the Programme.
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ICL Pathway Systems Monthly Report Ref: PA/REP/037
Version: 1.0
Date: 28/05/99
PROGRESS
e The final release Authorisation Board (RAB) for.NR2 took place 7" April.
Although Horizon, POCL and ICL Pathway supported progression into Live
Trial, the.Benefits Agency did not. They. believed that an additional Model
Office cycle was required but could not produce factual evidence to
substantiate this position. Consequently, POCL and ICL decided to go
ahead and the migration of the 1C counters commenced on the 12" April as
planned. The data centre migration is planned to occur over the 8"/9"" May
and will require BA’s co-operation.
e The software build containing fixes to issues identified in the KPR and
found during live trial (LT2) is currently on the test rigs and undergoing
blitz testing. No major issues have been detected.
e A regression cycle of the data warehouse and MIS/SLAM/FRMS/CCS
systems has improved considerably and is now achieving a 95% success rate
and is on schedule to complete 16" May.
° The first cycle of multi-benefir testing with CAPS started 12" April.and
concluded 27" April. A number of planned tests were abandoned due to
data shortage from CAPS. This resulted in a 67% DSS success/coverage and
a 75% Horizon success/coverage. CAPS plan to take an updated live
snapshot for the next cycle which will also use live reference data. This is
due to start 6" June.
e — The CAPS.3.5 and on-line enquiry testing against NR2 is scheduled to
complete in the first week of May. Regression testing the fall-back option
i.e. CAPS 3.5 to Pathway release 1c is due to start 6™ May but will be
abandoned if the data centre migration weekend is successful.
« The BIT Regression run which completed immediately prior to'the start of
the data centre migration went very well, with fewer than 20 incidents
raised and many of these were build and/or configuration issues. BIT
regression will continue in parallel with the live trial. The next cycle is
planned to start 17 May and will exercise the LT2 build which. will be
intercepted in the live environment 12" July, shortly before the end of the
‘observation period’.
. The error clearance and regression activities associated with technical and
security testing have been very successful. From a.total of 750 test run only
8 failures occurred. This.generated the level of confidence required to
support the Data Centre migration exercise planned for 8"/9"" May.
COST DOWN
¢ No new cost down initiatives were identified this month.
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ICL Pathway Systems Monthly Report Ref: PA/REP/037
Version: 1.0
Date: 28/05/99
CURRENT CRITICAL PROBLEMS
None.
ISSUES
COSTS
We cannot meet the very tight time window for replacing a faulty PC in the
outlets. The SLA allows for 20 minutes and only 5 minutes for system re-
initialise activities. It is unlikely that we will be able to speed up the current
system functions, so penalties will be incurred unless we can negotiate a
change to the SLA.
BT and Energis have indicated that there will be approximately 100 outlets
with no land network connections possible. They are suggesting that we
should consider a satellite solution and this is being evaluated. If this is
unsatisfactory, we are facing the proposition that theseoutlets will continue
to operate manually or will be closed. Subsequent negotiations with POCL
are expected to be very difficult.
We are still trying hard to remove the need to install PSTN for certain
mobile configurations. If we can find a printer with the required footprint
and if Fujitsu are prepared to make a few changes to their laptop platform
we may be successful. Meetings with the suppliers and POCL have been
scheduled throughout May.
The future strategy regarding the desktop architecture for product
development must be resolved very shortly. It is dependant upon our
approach to International and Government Gateway opportunities and
Escher’s future aspirations.
Fibre channel on EMC is undergoing trials in the US and the UK. Progress
to date has been encouraging but further testing is required. This facility is
critical for our implementation of NUMA-Q and the EMC discfarm
approach.
The. Development Directorate is.currently recasting the 1999/2000 forecasts
to reflect the new organisational structure-and these will continue to be the
subject of regular financial reviews throughout the year. These are designed
to enable management to monitor the detailed expenditure on a monthly
basis.
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——
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Commercial &
Financial
Report
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ICL Pathway Commercial & Financial Monthly Report Ref: PA/REP/037
Version: 1.0
Date: 28/05/99
Commercial & Financial Report
MONTHLY SUMMARY
° No Input
CosTSs
e The Controller’s report follows.
APRIL ACTUALS 1999
KEY NUMBERS (£000’S)
Wonth of Apri 1688
Variance vs
Actual Forocast
Trading/Project Costs: Rovonus 25 «any
Project Costs betore Capitalisations 9,843 1424
Declared PBT Losses 113 (18)
Cash: ‘Business Operating Cash Flow (19.361) 4.948
End of Apel 1909
Variance vs.
Actual Forecast
Balance Shoot: Project WIP . 233,668 TAT
Not Fined Assats 47.884 3.406
Total Borrowings 251,814 5.263,
Headcount: Permanent 231 26
Non-Pormanent (ITs and Temporaries) " 2
(Memo): Freelancers procured through ICL IT Contractor Servicas 197 a
‘Summary:
Revenue and dectared PBT losses ware both slightly advers to foracast, due lo the lack of any accrued intoriational project revenues.
Project costs were woll batow forecast, the main savings coming from lower than foracast charges from A&TC rolatiig {6 Technical Centre activities,
and Oublin- based development and support charges. Other significant favourable varlances arose on markating expenditurn, where the forecast spond.
‘on public awareness has not yet been committed. The only major adverse variance was on interest costs. whoro intorast ewap arrangements prevented
us from taking full advantage of the current iow interest rates.
Recruitment lag resulted in tower than forecast headcount, which was parlly offsét by tho above-forecast use usa freelancers,
Borrowings were over £5m lower than forecast, due to a combination of lower than forecast projact costs and capital additions, plus working capital contol.
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Version: 1.0
Date: 28/05/99
APRIL ACTUALS 1999
PROJECT COST ANALYSIS (£000’S)
Wonth of Apri 1993
‘Vananca vs.
Actual Forecast
Revenue 25 an
Direct Cost of Sales 2.059 181
Gross Margin (Deficit) (2,034) 164
Opex:- Labour - Own Staff 897 124
Travel & Subsistence 48 19
Freelancers, 2.033 76
ICL Subdcontracts 534 1124
Other Subcontracts 416 (9)
Depreciation 1,526 102
Markating 48 285
Professional 172 30
Other opax 302 124
Gross Project Opox 5056 L765.
Interoat costs 1,753 (508)}
Costs before Capltaksations weas Taz
Dectared PBT Losses
Capitaltsed Into WIP during year
Comments:
UK project revenue was in ling with forecast, bul no intemational project revenue was accrued, This shortfaN was asto responsible for tha slightly adverse PBT.
UK project expenditure was well below forocast in most areas. Cost of sales gains arose from the lack of any forecast charges relating to migration activitios.
Labour related costs reflactad tho bolow-foracast permanent headcount position, and freelancer costs wore also slightly below foracast
The main gains arose in ICL Subcontract charges, whore almost half of the £1.1m underspend was on Technical Cent charges. Full details are not yat (o hand
from them, but the etfective charging period was doubly curtailod by last month's Involcing right up to the year-end, and by the Easter broak. Remaining variances
under this heading ware mainty due to the lack of charges from A&TC rotating to development and product support activilies. The overspend on other
subcontracts was maraly a timing variance, reversing last month's undarspand,
Marketing costs were far lower than forecast, due to there being none of the forecast expenditure relating lo public awareness and special interest groups.
Other opax savings were in the areas of communications costs and foreign exhange differences.
Interest costs were £0.5m worse than forecast during the month, dua to the high@r than oxpected quartarly charge arising from interast swap arrangements,
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HEADCOUNT
End et Apa 1909
Permanent Hoadcount F Variance ve
Actual Forecast
Systems 7 11] Recruitment activity
Implementation ST 15] remains nigh. but the
Customer Sendce 80 3 conversion Ino fined
All thar departments (UK Project) 50 10I positons's lapping
Total - UK Project 23 3] behind forecast
Intemational Sales 7 a)
Totals - Pormainent Stat 0 Ed
End ot Ap 1698
Non-Pormanont Headcount Variance ve
Actuat Forocast
Industrial Trainees and Temporary Stal in z
Freciancors (sourced through
ICL IT Contractor Services)
‘Systems 154 {5)} The use of freelancers
Imsplomantavon 4 1] tcoverthe short in
Customer Service 7 - permanent employees
All ether departneints 2 i]s acontnuing feature,
Total -UK Project 788 (} particulary tn tne Systems
International Sales a =I ares’ :
Totals - Higher Skills Froatancers ca fa) . .
Totala - Non-Permanent Staff 208 )
Geand Total - UK PFI Project 7 a
Geand Tota) International Sales 15 Q)
GRAND TOTALS ry Ed :
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Version: 1.0
Date: 28/05/99
APRIL ACTUALS 1999
CASH FLOW (£000’S)
Inflows/(Outflows)
‘Net Project Costs - capitalised into WIP
Projoct costs takon straight to P &
Depreciation
‘Movement in other Working Capital tems.
Fixed Assat Adgilons
Businoss Operating Cash Outflow
‘Opening Net Borrowings
‘Closing Net Borrowings
BALANCE SHEETS (£000’S)
Comments:
Borrowings wore more than £5m lowor than forecast at the
‘end of April, due mainly to the lower than forecast capltal
‘expenditure in both March and Ape, togther with tho eavings in
project costs,
The mix of borrowings was agaln quite different to forecast
The forecast had assumed a full drawdown of the Asset Company
££200m Joan facility, but the overall contractual situabon has
Prevented us from doing this. Intermediate funding from ICL.
Finance Limted is relieving pressure on ICL Group borrowings
facilities.
Nol Fired Assets
Project Work in Progross
(thor Working Capital
Totals
‘Share Capital
Rotained Earnings
Group Pooled Borrowings
{ntemat Loans
Extemal Loans
Total Borrowings
Totals
Month ot Apal 1658
Vanance vs
Actual Forecast
8.730) 1.437
(113)] (16)
1.526 (102)]
(a.579)I 3.218
(2.465) 409
(19.364)I Te
End of Apa 1995
Retual Forecast
47.864 51,270
233,088 235,959
(12,227) {11,900}
269,505 FIRE]
20,000 20,000
(2.289) (2.348)
19.694 87.077
59,000 .
473,120, 200,000
251.814 257,077
255.525 274728
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Customer
Requirements
Report
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ICL Pathway = Customer Requirements Monthly Report Ref: PA/REP/037
Version: 1.0
Date: 28/05/99
Customer Requirements Report
MONTHLY SUMMARY
. Handling Acceptance continues as virtually the only activity.
° There remain 22 approved Acceptance Specifications out of a total of 24.
For both of the others specifications are available for approval. The last of
11 Acceptance Trials Closure Reports will be. published this week. Excellent
progress has been made on Reviews, particularly ‘for the Benefit Payment
Service elements: We are now about half way through the Reviews
programme.
DETAILED PLAN ACTIVITIES
RELEASE NEW 2
° John P has continued to support the daily QFP PinICL meetings and
maintained control of new PinICLs from.the standpoint of Acceptance.
RELEASE NEW 2+
. Tony H has submitted the functional specification for Split Payment Payees
and Death Arrears Payees for internal and external review (follows CP1627
/ CR C0090b).
CCNS / CRS / CPS
° CCN25 1a, the Release Contents for NR2, for which the outstanding CCN
list was restated, is still not approved.
e Arguments in support of CCN 422 were produced. This removes the card
extension period and introduces Temporary Agents to deal with
housebound customers.
e CCNs.317b and 432a were reissued.
° CP 1799 remains on hold.
e A large number of EPOSS CCNs have been produced.
ACCEPTANCE SPECIFICATIONS
° There remain two specifications requiring.approval. That for.BES has been
available for approval since December 1998. A CCN to make some
Requirements double key to facilitate POCL approval was produced and is
with the Authorities. Horizon says it is taking other initiatives, which, if
successful, would obviate the need for a contract change.
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ersion:
Date: 28/05/99
¢ The specification for Service Boundaries has been revised by Pathway
following a successful way-ahead meetingand was also published for
approval. A version of the SADD Appendix B to support this Acceptance
was produced. :
e The Trials for BES and the Reviews for both are going forward regardless of
Acceptance:Specification sign-off.
ACCEPTANCE TRIALS
e Ten of the 11 Acceptance Trials Closure reports have now been issued.
Horizon has issued a proposal to validate six, principally POCL, Closure
Reports-and this activity is now in progress. The four BPS and the Audit
Closure Reports were based on witnessed tests and do not require further
validation. The last, POCL Infrastructure, Trials Closure Report is forecast
to be issued week ending 14/5.
ACCEPTANCE REVIEWS
© There are now only seven of the 62 Review Packs left to issue. Of the 65
Acceptance Review Meetings 27 have now been held. The PAS and
Customer Education have now completed their Reviews and excellent
progress has been made on the DSS Services, PAS, CMS and DSS Interface,
with only two Reviews left to do. Pam Barlow has also made excellent
progress on the three Implementation areas, with just four Reviews
remaining.
e The last Review proper is currently scheduled for 16/6. There are some
demonstrations beyond that date that depend on actual Live Trial
operation, the last currently scheduled for 7/7. Every attempt'is being made
to complete Reviews proper. by 16" June so as to leave the maximum time
for clearing up issues.
ACCEPTANCE INCIDENTS
. There are currently 27 fully-documented Acceptance Incidents (Als), mostly
raised by Pathway, plus 16 probable Als arising from the KPR entries for
NR2+ closure, most of which will materialise. In addition there are 57
possible Als that represent the KPR End of Live Trial closures. Of these only
a very few will materialise.
. Within the 27 there are only two Mediums, both from PAS Reviews, and
both Closed within Pathway.
. We have to ensure that any Medium (or High) Al encountered is dealt with
immediately.
NEW BUSINESS
. The POCL Disaster Recovery proposal was completed and issued.
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e — Simple Payment Module: Commercial discussions have continued
concerning price and some features being factored into Design.
‘OPTION B’ / MODERN GOVERNMENT
¢ —— Significant effort was put into the Modern Government initiative,
particularly for the use of the smart card and its basic architecture.
° We have worked with Mike Haynes and John Shipley of Financial Services
in reviewing the current Persona work and assessing: its potential for
meeting Pathway requirements. This has centred on the business model
developed by Nat West and understanding how its roles might be fulfilled
within a Pathway./ POCL context. We have.also discussed the nature of the
card itself,
. We also contributed to workshops developing the general ICL business
model for HMG business, including review of the recent White Paper.
OTHER TEAM ACTIVITIES
e Dave H chaired the Workflow standards meeting and received a recognition
award.
e John D attended Technical ‘Council dealing with the future of the IESE
standardised tool sets programme.
e Dave H attended the DE spring event on tool sets and organising DEs
wishing to join the FBCS scheme.
CURRENT CRITICAL PROBLEMS
. None.
ISSUES
° It is essential that:
e the rerun of the MIS Technical Tests is completed satisfactorily this
week - this is now the pacing item for all of Acceptance
° the Audit system build must be corrected, Acceptance Review has had
to be postponed one week
e the EOLT build wipes out the EOLT KPR entries
e we have a written plan in place to handle Royal Mail strikes
. the Business Continuity documentation is completed by about 20/5
. the PPDs are approved as soon as possible
. the Reports & Receipts document is approved as soon as possible
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woday
IIIAIIS
AMOS, ——
4)
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ICL Pathway Customer Service Monthly Report Ref: PA/REP/037
Version: 1.0
Date: 28/05/99
Customer Service Report
MONTHLY SUMMARY
° Despite BA refusing to authorise NR2.at the RAB, POCL supported
Pathway’s view that BA had not provided any credible reason to delay the
programme and so counter migration took place as planned.
. With effect from 10" May 1999 the Wigan Data Centre was successfully
migrated and ICL Pathway is now operating wholly on NR2.
RELEASE 1C VITAL STATISTICS
. Installed base: 203 Post Offices, 332 counters
° Number of Cards issued 49,772
° Number of Active Cards in use 37,847
e — Total number of BES Counter Transaction 1,181,749
. BES Counter Transactions in month 81,701
. Total value of Benefit Payments received £37.4
° Value of Benefit Payments received in month £2.9m
e Total value of Benefit Encashments made £36.4
e Value of Benefit Encashinents in month £2.8
e Total number of OBCS Transactions 7.7m
e Total number of books impounded 20,158
PROGRESS - NR2
OPERATIONS
° All attention has been focused on making ready for NR2 data centre
migration. This was scheduled for the weekend of 8/9" May and was very
successful. The following is extracted from a brief witness report written by
Rod Stocker of the Horizon team.
‘The weekend was successful and migration to NR2 was achieved some 5
hours later than planned. As with any:major exercise such as this, problems
were experienced during the course of the. weekend. This is intended as a very
brief summary of those problems. The exercise was marred by the
intransigent attitude taken by BA to sign off the weekend until a formal
report was written by Pathway. Even now, their sign off has caveats.
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There was a failure of one of the correspondence servers at Bootle which
resulted in using the one at Wigan in standby mode-whilst the fault is
investigated. The change over to standby working was achieved in 80
minutes.
At lunchtime on Saturday there were four offices that had not completed
their close down before the Maestro Scheduler initiated end of day
processing. Following analysis, it was concluded that this was not'significant.
During the weekend it was found that, following the migration rehearsal. last
weekend, the links to OBCS had not been reset correctly with the result that
information from thém had not been received. Alarms to warn about this
should have been given and the absence of these needs to be followed up. It
was decided however, that the information received during this last week
could be processed after the migration had been completed and this has now
been done.
With the introduction of the automatic update ofthe CAPS post office codes
file Pathway were advised by CAPS that post offices were open whereas they
are in fact closed. Operationally, this process needs to be clarified.
During the migration of the database a question arosé over the’ size of the file
and this resulted in some lost time whilst it-was investigated and validated.
Whilst undertaking the foreign encashment, an error occurred at the counter.
This is a known error (referred to as Mutex and is already in hand with
Pathway). The HFSO was instructed to reboot the counter and the
transaction was undertaken without further problems with this transaction.
The problem re-occurred when undertaking a Help Desk encashment and the
same process was applied and the problem overcome.
The EOD handling in NR2 differs from that under 1c. As a result the TPS
harvester has to undertake a catch up mode and it appears-that for three
offices.this resulted in problems. There is evidence however, that some offices
continued to transact business after EOD when they should have ceased
entering further transactions‘on the system. The decision was taken to
identify these transactions and to forward details to HAPS and TIP so that
they could ensure that transactions are not processed twice.
Despite attempts to agree the Service IDs and Sequence numbers, everyone
did not receive’ the agreed instructions and as‘a result, files with incorrect
Service IDs were sent to CAPS. Pathway was able to correct this and re-send
the files. Nevertheless there is a need to ensure that these are placed under
formal change control (OBC) since problems have been experienced with this
on every sirgle implementation exercise to date.
One file, claimed by Pathway to have been sent, was claimed by CAPS not to
have been received. This was eventually found to be an operational error by
EDS (CAPS) and in the interests of time the file was resent by Pathway.
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CAPS advised Pathway that the stop file received by them contained a
significant number of records of previously stopped transactions. This arose
from the PCHL anda change in the NR2 system that clears out all stops
rather than simply marking them. Much time was lost on this issue simply
because BA refused to provide a qualified sign.off and allow Pathway to
investigate this tomorrow even though they acknowledged that it would have
no impact on NR2. Even now the CAPS sign off is qualified.’
° From a POCL and Pathway perspective, the migration was a major success
and so far, no serious issues with the software or system have been
experienced.
BUSINESS SUPPORT
e The overall incident rate increased to 0.05% in April with 44 incidents
being received against 82k payments. .Of these, 29 were ‘Non committed’
transactions all due to the clerk voiding the transaction after paying the
* customer.
¢ The number of incomplete transactions was 7 (0.009%) 3 of which were
due to user log-out and 1 power failure.
¢ There were no SLA non-conformances and the BES stream continues to be
fully reconciled.
e Since migrating to NR2 Counters, there have been repeats of incomplete
transaction types experienced at R1c.
e 24 specific incident types have been passed to the Commercial Forum for.
ratification in relation to-liability. Upon ratification they will be included in
the Case Law database as precedents for future such incidents.
¢ The APS and EPOSS reconciliation panels have approved sign-off of the
incident handling processes.
BA & POCL SERVICES
. Service performance in April was-very good and no new problems with the
system were identified.
¢ The most serious issue is with the post masters’ performance of the Cash
Account process and rolling‘over into the next CA Period. The majority of
calls received on NR2 are linked with this problem and Horizon and
Pathway are jointly investigating the root cause.
¢ — Some problems have been reported with back-office printer set-up and cash
account report printing performance.
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CUSTOMER SATISFACTION
e Customer Satisfaction is being depressed due to the’ experience of having to
perform.an electronic cash account process each Wednesday. The process is
lengthy and complex and postmasters are naturally experiencing learning
difficulties.
SYSTEM SUPPORT
© The problems being dealt with by SSC have included:
e Failure by SMC to commit patches correctly, leading to failure to
migrate counters to NR2.
° Performance problems on the hybrid.system have led to a significant
increase in the timeout of transfers. This is being monitored and is
expected to diminish post Data Centre migration to NR2.
° A mutual exclusion (MUTEX) problem in the NR2 counters--
symptoms for the customer are sometimes a Dr Watson message and
sometimes a counter reboot. This problem is known to Development
and has been passed to Escher. (The problem could be in the
Microsoft code). ‘
e¢ Anumber of NR2 counters have been getting messages about virtual
memory problems.
CURRENT CRITICAL PROBLEMS
° None
ISSUES
e The continuing failure of the SMC to adequately filter calls to SSC was
escalated to Kevin Dowling (OSD Service Director). Kevin has promised an
improvement plan by mid May.
e The ability of postmasters to perform the cash account. process and its
impact on the Horizon Systems Helpdesk. An action plan is in place to
provide increased expert support on Wednesdays and involves Pathway,
Peritas and POCL staff. .
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Version: 1.0
Date: 28/05/99
Quality & Risk Report
MONTHLY SUMMARY
. FRM - CCN243a (EVP) rejected because of communication issues of BA
with POCL; CCN368a (design) to be rejected by BA for very minor reasons.
FRM testing for Release 2 continues; PinICLs are being cleared.
° Risk Management - CPs continue to be raised to deal with unauthorised
encashment scenarios. A CCN has been raised to remove the requirement
for PCHL authentication.
° System Security --Considerable work on acceptance - meetings and
completion of documentation. Potential solutions to the ‘follow the sun’
support and Belfast home working support issues have been found.
. Quality - Policies & Standards; Segment 3 and 4 acceptance'review packs
have been distributed. Preparations for the QMS walkthrough are being
scuppered by a lack of BA commitment. Disaster Recovery plans are being
reviewed and revised..
e Audit - The Acceptance Trials Closure report has raised requests from BA
on the status of closed PinICLs. Segment 1 of the reviews has been
completed successfully. Segment 2 has started with comprehensive reviews
of the invoicing process. Internal audits continue with Security policy
deployment, Change Management and Implementation. PCHL auditing and
invoice verification remain issues.
e Year 2000 Conformance - A PID to initiate Y2k contingency planning
activity has been issued; it identifies gaps in existing plans and activities -
these have been discussed with CS, Development and Implementation.
. Cost Down - A £100,000 reduction in the FRM contract for 1999 has been
agreed with Girobank.
PROGRESS
FRAUD RISK MANAGEMENT
GENERAL
° CCN 368a to introduce changes to the FRMS design document was issued.
BA have informed us that they will reject the.CCN as they want a minor
change made.
° Processes:
¢ E2E processes - BA are late - the delivery date for BA procedures has
been put back one month - to 30/5/99.
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RELEASE 1C
° One repudiated transaction was notified and information has been
forwarded to BA.
. A draft analysis of FRM Ric incidents and irregular encashment patterns
has been produced.
NEW RELEASE 2
e FRM testing - Further Blitz testing has revealed more problems with the
build of the client PC. It-has still not been possible to successfully test-an
FRM Client User profile on a live PC. All attempts to utilise the correct
login account result in failure. It is understood that this is a common
problem throughout the MIS clients. The outstanding FRM PinICLs raised
during MOT are being cleared steadily.
NEW RELEASE 2+
e ~~ EVP - CCN243a was rejected, The issue appeared to.be that negotiations
held in October 1998 to replace the 2™ line of Customer address with
Name and address (first line) of NPO were not communicated to POCL by
the BA. The upshot was a joint review of the document and minor changes
being agreed. There was.no change to the data items or functionality. A
complete waste of time.
RISK MANAGEMENT
e _ NRO Risk Register continues to be produced to time, however the updates
from POCL are less than useful and the.level of input from within Pathway
has reduced to a minimum due to the reorganisation of Implementation.
° Unauthorised Encashment - Three CPs were raised to deal with potential
dual encashment'scenarios.
¢ — PCHL Authentication - A CP and CCN has been issued to Horizon to
formalise the removal of this requirement.
SYSTEM SECURITY
NEW RELEASE 2
. Considerable support continues to be given to Acceptance activities
(Security and-Segment 2 Policies & Standards). A ‘BS7799 Statement of
Applicability’ is being produced to resolve category ‘b’ incidents in both
streams. Amendments to various security documentation is also required.
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° Horizon require a comprehensive threat assessment of the Bootle site as part
of Segment 3 of Security Acceptance. In addition, Wigan will be visited to
review the new palisade fence and the revised Security Guards operational
procedures and Lytham St. Anne’s will be visited to confirm the ‘hardening’
of the communications room in ‘J’ Block.
. Discussion with the: Departmental IT Security Group of the DSS on a
solution to control / audit Oracle “follow the sun” technical support from
outside the UK has resulted in a proposed solution - BRENT, a CESG
approved ISDN line encryption solution, from Cogent.
° Belfast home-working. A CESG approved PSTN-based encrypting modem
(SafeDial from Racal) has been identified. Test kit has been requested for
OSD to.-test.
¢ Pathway-specific technical penetration testing is being progressed with
Admiral and is expected to commence on 21° June on the NR2/LT2
baseline.
. Live NR2 Rambutan keys have been created and distributed.
e Physical security audits of all the Regional Offices have begun. The
deliverable will be a report containing a threat assessment and suggested
mitigations.
RELEASE 2+
* The Key Management Application front end has been further reviewed and
improved and default reports have been identified.
e A requirement for additional, specialist resource to-document manual key
processes has been agreed.
QUALITY
° Disaster Recovery Planning. Business Recovery, Incident Management and
Crisis Management Plans are undergoing review. Changes to the
presentation approach, to use.Deployed Flow Chart methodology have been
tecommended. SMH resource is now at Feltham regularly to update
quickly.
¢ Policies & Standards Acceptance Test
« Segment 3 and 4 review packs have been submitted.
. Problems during NWML retest have necessitated further tests. If these
tests are successful a report is expected w/b 17/5. Segment 5 review is
proposed for 16/6, based on this test / report schedule.
° Preparations for QMS review are in hand for 12/5, although there
appears to be a lack of firm commitment from:BA to provide qualified
reviewers for this date.
¢ The Implementation team has been supported in the development of a
process map and identification of gaps / priorities requiring definition.
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AUDIT
Acceptance.
° The draft of the Acceptance Trials Closure Report (ATCR) has been
sent to the Authorities for review. Inevitably BA required further
information on the status.of closed, PinICLs. I suspect that they will
want to conduct some retrospective review of the PinICLs to confirm
that they have been closed ‘correctly’.
© Segment 1 has been conducted successfully.
e Segment 2. Presentation and discussion of the invoicing process
involving Finance, Data Warehouse, RED, Reference Data were held.
Initial feedback suggests-no Als. The Authorities still need an interim
invoice to validate against transaction details held in the Data
Warehouse.
Internal audits:
e Customer Services Audit. A CAP has been agreed with CS.
e Security Policy Deployment Audit is progressing.
. Change Management Audit; initial report is due 7 May.
. Implementation Audit; has started although is hindered by the lack of
documented processes.
Invoice Verification. Discussions continue; it is accepted that it is an issue
and it is likely that the customer 'will.conduct-.a full audit as soon as possible
(i.e. after acceptance).
PCHL Auditing. BA will raise a Medium Acceptance Incident on this
problem despite any early assurances. PinICL 23739 has been raised and
placed on the KPR for LT2 fix. Unfortunatély this may not be possible.
Alternatives are being sought.
DLTs and Tape Silos. Alternative handling.is being considered.
YEAR 2000 CONFORMANCE
Y2k testing continues, with no major issues.
Pathway Contingency Planning. The draft PID to initiate the Y2K
contingency planning activity, which is largely dependent upon normal
contingency plans has been issued for comment. Our normal contingency
plans, and the inherent resilience / redundancy of the architecture,. mitigate
against many of the Y2K risks arising from failures of the National
Infrastructure. To-an extent Y2K contingency is a delta on that baseline.
Progress has been made by John Hobson on determining a compensation
package for working over the millennium weekend and responses received
from .most-areas; the planned staffing levels will are likely to change as we
drill down with the units involved and become more pro-active.
Third party-issues:
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e NT4 Service Pack 3. 18 previously undeclared faults have been
declared of which there is no plan to fix 6. A review of the faults
indicates there are no critical issues compelling us to move to Service
Pack 4; SPS.
e There is concern that some vendors are still changing theit compliance
status; monitoring is needed.
COST DOWN
«The cost of the Girobank FRM contract. for 1999 has been agreed at
£150,000 - a saving of £100,000.
ISSUES
¢ = NWML report: non-availability is impacting P&S Acceptance plans and
may impact.our schedule for weigh scale:connection during Live Trial.
e Supplier / sub-contractor staff security vetting arrangements require
clarification to support P&S Acceptance.
e — Audit Workstation has not been fully tested.
. Data WareHouse availability following DC migration, for acceptance of
invoicing.
° PCHL auditing.
° Getting formal sign off from our service providers, of their Y2k
readiness.
° Managing BA and POCL expectations of systems stability. during Q4
1999 and Q1 2000 in the context of the-SIP plan and NR2+ target
dates.
° Ensuring the Y2k readiness of external support organisations (Sequent,
SUN, HP, Microsoft, ORACLE, WTL, CISCO etc.) Ownership.seems
to be uncertain in some cases and overlapping in others.
e Ensuring the overall business continuity plan for Pathway provides
adequate mitigation against Y2k risks.
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Business
Development
Report
FUJ00058181
FUJ00058181
ICL Pathway Business Development Monthly Report Ref: PA/REP/037
Version: 1.0
Date: 28/05/99
Business Development Report
MONTHLY SUMMARY
BUSINESS DEVELOPMENT
NETWORK BANK
° POCL continue to block discussions between ourselves and their key client
development areas (e.g. Network Bank) pending outcome of Treasury
review negotiations.
° We are, however, starting to receive solid level of enquiries and interest
from UK Banks via the [CL Client Directors. This is encouraging from a
transaction volume and client commitment point of view, but presents some
client management challenges as POCL is still very defensive with regard to
ICL Pathway contacting its existing and potential clients, even when it is at
the client’s request.
SMART CARDS
° POCL are keen to include additional smartcard applications in New
Release 2+. This is positive from the transaction volume and client
commitment point of view, but presents commercial and programme
planning challenges fot-New Release 2+.
EFTPOS
° POCL have asked us to provide quotes for various technical options. As
there is no signed off specification.of these options, we have referred POCL
to their internal Horizon team, as this approach has caused significant
commercial problems for POCL in the past. We are happy to provide the
information, but only on a provisional basis until a signed off requirement is
freceived.
CUSTOMER EDUCATION & COMMUNICATIONS
EXTERNAL COMMUNICATIONS
° Communication activities for the completion of the HMG review have
iterated and are now at an advanced stage of readiness. They cover a
number of scenarios.and for a positive outcome require POCL co-operation.
As ever, achieving POCL engagement requires perseverance.
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POCL COMMUNICATION
Internal communications concerning the developments of Live Trial. within
POCL are very low key aid with a tendency to over negativity. Joint
working on the NFSP and CWU exhibition front is yielding results.
Doncaster was a success - the proof of the success of a joint approach will
become more obvious at Scarborough. Planning for Scarborough is
underway - relevant ICL Pathway managers have been-notified.
INTERNATIONAL
The Namibia project has been kicked off with the first task being a
definition of the requirements. This will lead to a formal assessment of the
overall task and a key milestone check. Our contract with Namibia is a Time
& Materials contract which will limit our exposure.
The development resource within the International team is now in the
process of transferring to the new Generics team led by Chris Humphries.
We are currently concentrating on re-focussing the team’s efforts on selling
high value added consultancy in the key areas of Pathway expertise,
security, fallback/resilience-and scalability.
The consultancy approach is being taken up by Deutsche Post and Austria
Post, and meetings are planned with both.
The Portugal Post contract has still not been signed by Escher or Siemens
We have had a very successful workshop with South Africa Post where again
they were impressed with our knowledge of the postal industry, especially
counters. They have since asked for another ‘paid’ workshop to be held in
the near future.
PROGRESS
Girobank have been provided with the AP TIS. This is the first stage in
preparing them for AP client migration, and has been very difficult to
achieve due to joint working being suspended between POCL and
Girobank.
POCL are keen to include additional smart card applications in New
Release 2+. This is positive from the transaction volume and client
commitment point of view, but presents commercial and programme
planning challenges for New Release 2+.
Work progressing internally with Customer Requirements, Architecture,
and Design on new prodiicts (e.g. Global Banking Product, & Generics).
Revenue Collection Services: This is the name used by Girobank when
selling POCL’s Automated Payment (AP) products. We have appointed.a
manager to lead our business development activities in this area, and to co-
ordinate ICL Pathway’s approach to meeting our transaction volume and
revenue targets for the AP products.
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e — Global Banking Product: This product will be used to satisfy the Network
Bank, Alliance & Leicester Giro, and National Savings requirements in the
UK, plus the banking requirements of overseas Postal Authorities. The
initial scope document is being enhanced by Richard Stockton to produce a
comprehensive:set of requirement documents. At this’ point we plan to
engage with POCL to obtain their buy-in.
© We still await the POCL appointment of a Managing Director for their
Network Bank business.
e All external communication activity - leaflets, marketing:suite, internet,
government relations, Charity policy and PR strategy - is on hold until the
HMG review completes: there are lots of ideas but clarity of direction is the
key.
. Doncaster Federation exhibition was a success with good co-working on the
panel messages and shared manning. Currently there is a lot of work liasing
with POCL.
¢ The proof of the success of a joint approach will become more obvious at
the NFSP Annual Conference in Scarborough. Planning for Scarborough is
underway - relevant ICL Pathway managers have been notified.
e Good progress on ICL Pathway internal communications; Brief EnCounters
was published this month-and a dress down day held which raised £130 for
charity.
e We need to do more on the-wider ICL communications front but again,
there is the issue,of the HMG review. An article has however been
submitted about Live Trial < this will be published in June.
* The ICL Pathway question time - rumour line is to be reinvigorated as part
of the implementation progress updates with Live Trial.
CRITICAL PROBLEMS
e A decision on the programme! The delay is now causing serious staff
demotivation.
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Implementation
Report
FUJ00058181
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ICL Pathway Implementation Ref: PA/REP/037
Version: 1.0
Monthly Report Date: 28/05/99
Implementation Report
MONTHLY SUMMARY
° The Pathway Implementation programme.continues to make good progress,
having achieved all planned programme milestones this month. There are
no unmanageable critical concerns in Implementation at this stage and the
project remains on target to commence National Rollout on 23 August
1999.
° Infrastructure activity in preparation for rollout has now amassed more than
3,000 outlets that are:ready for installation.and over 12,000 outlets that are
part way through the infrastructure process. The level of suspends from the
infrastructure programme remains high but it is expected this will reduce
following agreement with POCL on modification levels.
° — Migration of 1c outlets to NR2 for live trial was completed during the
month on schedule and 100 further NR2 outlets will enter the programme
before the end of May. At this point there will be 300 outlets live on NR2
which will participate:in live trial. This month training of Post Office staff
for the role of in-office migration began, with 64 staff now trained and
experienced in manual migration. Training of sub-postmasters and counter
assistants took place for those.new outlets entering the programme.
e Contract negotiations have proceeded with Implementation suppliers WTL,
Exel logistics and POCL. WT negotiations are practically complete and the
others are at an advanced stage.
PROGRESS
° Recruitment into the team made good progress during the month with the
majority of key positions being filled. The Implementation management
team and business operations structure are now complete and internal
control and reporting méchanisms have been enhanced as a result.
° The infrastructure rollout programme is continuing to make:stcady progress
(see weekly statistics below) although the level of office suspends is still
impacting the target beat rate. Visits to POCL Regional management teams
have been made with the aim of increasing their awareness of this issue.
Recent agreement on modification ceiling levels should result in reduced
numbers of suspended offices from.next month.
IMPLEMENTATION WEEKLY STATISTICS
(For week ending 14" May 99)
“Activity This Week Cumulative
RGM letters issued 281 12846
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Monthly Report vO ates 28/05/99
MIB events held 10 256
MIB Attendees 293 12300
Site surveys undertaken 300 9882
Site re-surveys required 118 3753
Site re-surveys undertaken 114 3341
Site modifications done 101 1792
Site preparations done 193 3773
Sites RFI 193 3773
Live NR2 Offices 2 198
¢ — This reporting period saw the commencement of outlet migrations from
Release 1c to NR2 in readiness for the start of live trial. A successful manual
office migration rehearsal was performed during Easter weekend and the
first manual office was migrated to Release NR2 on 11" April 1999.
During April and early May, a total of 196 outlets were successfully
migrated to release NR2. Of 204 outlets targeted, only 8 were suspended
from the programme and these were due to POCL resignations and
closures. A 100% success rate of migrations was therefore achieved.
° The service of performing outlet migrations has been let back to POCL and
is performed by their team of Horizon Field Support Officers (HFSO). This
was only possible following the successful running of HFSO training courses
run at the beginning of the reporting period during which 64 POCL HFSOs
were trained in.manual and ECCO office migration. Outlet migrations were
supported.by Pathway Transition Executives (migration tool specialists),
operating in the field for the first time during this month.
© Live trial requires the addition of 103 additional sites to have had the
Horizon system installed and. includes 25 outlets.currently operating thé
ECCO automation system. Over the late May bank holiday weekend an
ECCO migration rehearsal was successfully completed at Morpeth in North
East England in readiness for the migration of these 103 additional outlets.
On the 11" May the first two ECCO outlets were.migrated to the Horixon
NR2 system. There are currently 198 outlets live using Release NR2 and the
programme to install the remaining 101 outlets will commence on schedule
on 17" May 1999.
e In the training programme, a total-of 64 POCL HFSOs were trained during
the month to provide the migration service. Training also took place for
sub-postmasters and counter assistants for new outlets entering the
programme.
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Monthly R Version: 1.0
thly Report Date: 28/05/99
° In the first 4 weeks of live NR2 service, it has become evident-that
postmasters have been experiencing difficulty managing the change from a
manual balancing process to automated balancing. To address this concern
improvements in training have been made to put a greater emphasis on
practical experience in balancing. HFSOs, supporting first office balances,
have received a refresher course with the focus being on balancing. The Sub-
postmasters managers course has been extended to two days, with the extra
half day being used to provide additional time on the topic of balancing and
practical experience in the balancing process.
e In view of the concerns postmasters are having over the change in balancing
process, Implementation have been supporting.Customer service and their
support of live operations. Specialist trainers have been made available to
provide expert advise at the Horizon Systems Help desk and trainers have
also been despatched to specific outlets to support balancing where itis
envisaged there may be particular difficulties. It is also envisaged that
Transition Executives will be made available to support balancing in coming
weeks.
° The revised profile for the National Rollout installation programme will be
reviewed with POCL and the Benefits Agency during the next reporting
period. Initial indications are that there will be.no major issues and that
final preparations for rollout will continue.
CURRENT CRITICAL PROBLEMS
e None to report.
ISSUES
° Continuing high level of suspends in the infrastructure programme although
it is anticipated that this will improve following:agreements with POCL over
modification levels.
. Implementation teams in the regions are struggling to support the
infrastructure-and installation programmes in parallel, particularly with the
difficulties being experienced with balancing. Consideration is being given
to the.level of resource required to support these activities.
e There are outstanding contract re-negotiations with key suppliers claiming
increased costs for additional work. These are being addressed with the
support of the coinmercial team.
. Contract re-negotiations with key suppliers are continuing. Negotiations
with WT have been concluded and those with Exel are at an advanced stage.
¢ The following issues reported last month have been addressed and are
currently not considered to be of serious concern:
- 10 day training window for ECCO offices
- HFSO In Office Migration Service agreement
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- Completion of acceptance documentation
COsTS
e All. key appointments in the Implementation business operations team have
now béen made and a revised financial baseline is in preparation. This will
be reviewed on 13 May 1999.
° Contract re-negotiations with key suppliers are continuing. Negotiations
with WT have been concluded and. those with Exel are at an advanced stage.
A strong stance is being taken during the negotiation process to limit the
cost impact although some increases, attributable to changes in requirements
is unavoidable. Some, but’not.all, cost increases, will be recoverable from
our customer.
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Organisation
& Personnel
Report
FUJ00058181
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ICL Pathway Organisation & Personne! Ref: PA/REP/037
Version: 1.0
Monthly Report Date: 28/05/99
Organisation & Personnel Report
MONTHLY SUMMARY
° Recruitment activity continued at a high level, Progress was made in
securing space within FELO1 to accommodate these new employees. The
salary review'was completed and authorised; ready for implementation in
June and the Employee Opinion survey was distributed to employees.
PROGRESS
° Appointments in April:
External Recruits 8
Transfers 3
A&TC 5
Linkwise 0
Freelance 10
Temporary 0
Total: 26
° Known joiners:
External Recruits 3
Transfers 1
A&TC 1
Linkwise 1
Freelance 3
Total: 9
e Offers outstanding:
External Recruits 6
PROGRESS
¢ The number of registered permanent vacancies decreased from 46 at the end
of March to 44 at the end of April. 56 appointments have been made since
the beginning of the year (not including freelance contracts). The appointees
are a.mixture of external recruits new to ICL, transfers from other divisions,
secondees from A&TC and Linkwise. The flexible resourcing model is
working well, with A&TC responding quickly to fill a wide range of
resourcing requirements.
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° ICL Pathway attended the VISIT recruitment fair held at London Olympia.
This was a very successful event, with several thousand CV's being
presented. However, encouraging more recruiting managers to attend and
meet candidates face to face will increase the effectiveness of such events.
An open evening was held in the Feltham area to follow up on the
Recruitment Fair.
° Managers completed the 1999 salary review with support from the
personnel department. The work was completed in good time to meet the
salary timetable deadlines. Letters will be-issuéd, via mangers, in late May.
In addition all bonus claims for 1998 have now been processed.
. Significant work took place in the month to agree the bonus arrangements
for the current financial year. Letters and targets will be issued later in May.
¢ — The.new structure for Systems and the Programme office was agreed and
announced, with the creation of a Development Directorate, led by Terry
Austin. The ongoing programme of Organisation and Management Reviews
continued but with completion now planned for May.
e The 1999 Employee Opinion Survey was issued to all employees as planned.
e Approximately 66% of ICL Pathway employees:now have a current
appraisal logged with the Personnel department and on their personal files.
This is a significant increase on last year and members of the department
will be progress chasing outstanding appraisals to ensure maximum
compliance by the end of May.
° ICL Properties are implementing a plan to move a significant number of the
non ICL Pathway staff based at FELO1 to a new location in the Feltham
area. The objective is to achieve this by as close to the end of May as
possible. This will allow our-space requirements, based on current
manpower projections, to be-accommodated within FELO1.
CURRENT CRITICAL PROBLEMS
° None
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Post Office
Client
Report
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ICL Pathway _—‘ The Post Office - Client Director's Ref: PA/REP/037
Version 1.0
Monthly Report Date: 28/05/99
The Post Office - Client Director’s Report
MONTHLY SUMMARY .
e ‘The DTI/Treasury lobbying on Modernising. Government has continued as
input to the Treasury Review.
MODERN GOVERNMENT
e Intensive work completed to present Post Office’s case for a leading role in
delivering Modern Govt, utilising ICL Pathway services. Joint.paper and
meetings with DTI and HMTreasury.
1999 BUSINESS
° Revenues from Post Office overall were excellent in March, with £4.9m
business in the month, giving £10.5m in QS. The rush for PCs in March
foreshadows predictions of much reduced business in the new financial year
as capital budgets have been cut back everywhere to create a new
acquisitions fund for buying e.g. parcel companies.
. QS breakdown:
Div Rev Margin
MC (Desktop supply) £9.2m 900k
CE (Tech Resources) 160k 39k
OS (ALPS) 259k 146k
Pathway 881k 37k
CURRENT CONTRACTS
TECHNICAL RESOURCES SUPPLY CONTRACT
. This is still very slow in winning substantial business and we have put a
review in place, with ICL Govt who own the contract and with PO.
ONE STOP SHOP
° Business accelerated in March (PO year end), April figures awaited.
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Monthly Report Date: 28/05/99
NEW BIDS
SERVICE MANAGEMENT TOOLS
e — ICLis shortlisted together with IBM and DMR. The debate has moved on
in PO, with our encouragement, to look at services delivery issues including
Help.Desks and SMCs. The timescales are slipping - the selection of
preferred supplier by end-April has gone, June now earliest.
SPICE
. “Supporting Post Office in a Commercial Environment”: a broad ranging
invitation covering Customer Contact, Client Relationship Marketing and
data warehousing. Initial responses were submitted in March, we-await RFI.
Decision will not be until Jan 2000.
POCL INTERNET
e Hyperlink and POCL have missed the deadline of new service by 6" April.
REORGANISATION
* Under SGS (Shaping for Competitive Success) the IS/IT appointments.to the
new divisions are yet to be made, with the exception of RM International
where Doug McClure stays in post. The view in the IS community is that
the combination of setting up the new divisions and the Year2000
moratorium on new systems from October until March will slow everything
down.
COST DOWN
e No change.
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