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ICL Pathway
Bringing Monthly
Technology Progress
to Post Office Report
Counters /)
(CL
September1999 VMN MN
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ICL Pathway Programme Monthly Report Ref: PA/REP/042
Version: 1.0
Date: 21/10/99
Document Title: ICL Pathway Monthly Report - September 1999
Associated Documents:
Reference Vers Date Title Source
{4] — 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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ICL Pathway Monthly Progress Report
Contents:
a Managing Director’s Summary
_~
ee Development Report
= Commercial & Financial Report
4 Customer Requirements Report
S Customer Service Report
fer Quality & Risk Report
Business Development Report
ts} Implementation Report
= Organisation & Personnel Report
Post Office Client Report
=
el
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Managing
Director’s
Summary
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ICL Pathway Managing Director's Monthly Report Ref: PA/REP/042
Version: 1.0
-Date: 21/10/99
Managing Director’s Summary
PROGRAMME PROGRESS
* Acceptance was achieved on 24 September triggering the 1999 element of
National Roll-out. The Roll-out ramp up has progressed better than expected
given the potential impact of compressed time for the processes and the start
stop nature of decision making resulting from the difficulties experienced during
the Acceptance Process. As at the 10 October 978 offices had been installed and
migrated in total with 199 installations being completed the previous week.
*. The level of suspensions ‘and aborts from the Roll-out installation process is
falling towards the level predicted. Given they remain at that level by
completion of the 1999 element of National Roll-out, the number of offices that
will be installed and migrated is predicted to be:-
Best case 1782
Worst case 1623
¢ A new Programme.Plan (Version.9) has been’ produced to reflect additional
work resulting from the. Acceptance Resolution plan. The effect is to move the
plan date for the CSR+ RAB to 25 August 2000 from 26 May 2000. A joint
POCL/ICL Pathway activity has started to identify if the effects of the slip can be
mitigated by re-phasing element of CSR+, optimising POCL user testing and
introduction of CSR+ products into the live estate.
ACCEPTANCE
¢ Acceptance was achieved on 24 September and the resultant invoice for £68m
delivered on 27 September for payment within 30 days.
e A Second Supplemental Agreement resulted from Acceptance and introduces an
optional 1600 milestone for National Roll-out prior to Christmas. This yields a
£80m payment, with £10m held over-to the next milestone (May), but we
would still get the full £90m in December if we were to achieve 1800. In
addition this Agreement introduced an Acceptance Resolution Timetable into
the contract.
e The Acceptance Resolution Timetable contains some 300 activities and events
that are pacing items for the-restart of National Roll-out on 24 January 2000.
e Amongst these are performance measures relating to Acceptance Incident 298
(System Stability), 376 (Accounting Integrity) and 468 (Help Desk) which will
be monitored during October and the first half of November and reviewed to
see if the criteria have been achieved on 24 November.
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Date: 21/10/99
e The other key item in the plan is the development of a new Reconciliation
Module that has to be introduced into Live Service by the end of 1999 anda
successful parallel run with existing processes completed by 14 January 2000.
ADDITIONAL POST OFFICE BUSINESS
© The SMPP (Service Management Productivity Programme) contract was signed
by A&TC with the Post Office on 1 October. The initial order is for the design
of the Royal Mail East Anglian Network Management worth an estimated
£500k. The contract has the potential to delivery £5m over three years.
COST DOWN
e Girobank have settled for an amount well within that provided for in March.
e The Business Plan is being updated to reflect events since the letter agreement in
May: Favourable BPS settlements with Girobank and De'La Rue (Forecast)
together with underspending this year will not be enough to offset adverse
impacts resulting from Acceptance Incident resolution andthe moderation of
previous "optimism" on operational cost down.
e® A number of negotiations with sub-contractors require completion, to reflect
changes to the project following the signing of the Second Supplemental
Agreement and the associated CCN's. These include:-
KNOWLEDGEPOOL
e Inclusion of Pre-entry event and improvements required within AI218
Acceptance Resolution Plan and changes to training requirements incurred as a
consequence of revisions to the roll-out profile for the Christmas 1999 period.
CELESTICA
e Changes to build requirements incurred as a consequence of revisions to the
roll-out profile for the Christmas 1999 period, changes to the software build
plans and adjusting Celestica build plans for the installation programme tail in
2001.
EXEL
e Revisions tothe installation programme over the Christmas 1999 period and
adjustments to the installation plans during the tail in 2001.
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Version: 1.0
Date: 21/10/99
e Timetables for concluding these negotiations are in place such that all are
complete by the end of December.
ISSUES
¢ The performance criteria in the Second.Supplemental Agreement will not.be
easy to achieve. Achievement of-these for AI298 and AI376 depend on actions
already being put in place by ICL Pathway having their desired effect and no
new unexpected issues arising.
e Failure to achieve all the performance measures associated with Al408 had led
to OSD being placed on Corporate Red Alert. This is intended to ensure the
correct level of resource, support and management attention is in place to
deliver ICL Pathway's contracted level of service to POCL - specifically over the
six week'monitoring period.
¢ Issues with Software and Reference Data Distribution still exist both in terms‘of
technical issues, which are being pursued, and the performance of the SMC, *
which has been.escalated through Red Alert and direct discussion with OSD *
management
e The issue with Workplace Technology (WT) reporting Post Offices as being *
"Ready for Installation" when quality issues exist has persisted. WT have been
acquired by NTL and a meeting has taken place with NTL to get them to =
commit to actions needed to put WT’s subcontract activities back on track.
Progress will be monitored closely.
e Although National Roll-out rates have risen to 200 Post Offices per week, the
level of issues occurring on installation day and the level of training scheduling
failures puts achievement of the 300 offices per week roll-out rate required in
2000 at risk. Knowledgepool are introducing new scheduling software and a
plan of activity to remove/reduce the causes of the other issues is being put in
place for the November to January break in National Roll-out.
e Live performance monitoring has identified a problem with capacity of the
ISDN Network and CISCO router configuration. Options to improve the
throughput capability are currently being evaluated.
e There has been little improvement in POCL's willingness to enter into
discussions with us concerning the new business development plan and future
programmes.
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ICL Pathway Development Monthly Report Ref: PA/REP/042
Version: 1.0
Date: 21/10/99
Development Report
MONTHLY SUMMARY
° Once again the development team struggled to maintain progress on CSR+
whilst.supporting the demands of the CSR ‘Acceptance’ process. Although
acceptance was achieved.on 24" September, the emerging rectification plan
included additional development, which has impacted the delivery of SIP16
and CSR+.
¢ The NUMA interception is still on target for early October. The equipment
will be installed at each Data Centre on different weekends.
¢ The SIP16 release, which comprises of enhancements to the cash account and
reference data elements, has been rescheduled for release mid November.
e The Technical Integration and Business & Technical Conformance teams
continue to make good progress but issues regarding the speed of rig building
and the level of change in CSR require management attention.
© Progress on all other products in CSR + is in line with expectations. APS, LFS
and AP Client migration system testing has not identified any serious problems
and the concern surrounding the readiness of British Gas and SAPADS for
direct interface testing has receded. The resource pressures in the EPOSS team
are still present but actions are in hand to address this.
e The Data Warehouse, RDMS, TPS, migration tools, the RoDB, Estate
Management, KMS, VPN, FTMS, message broadcast, auto-configuration,
Audit, Maestro, Tivoli and training mode are all keeping to schedule but there
is no room for complacency. Problems and issues are arising but close
management monitoring is ensuring that they are dealt with promptly and
effectively.
PROGRESS
e The additional development required to support the ‘acceptance rectification
plan’ as caused the delivery schedule for SIP16 and CSR+ to be replanned.
Version 9 of the plan, which includes a new incremental.release on CSR in
December, has been submitted to POCL for approval. Work onthe EPOSS
reconciliation modules has started and will need to be managed very ‘carefully
if the aggressive dates are to be met.
e All of the POCL Infrastructure products i.e. EPOSS, MiECCO, MiMan,
Reference Data and TPS have now entered system test and.no major problems
have been encountered so far. Business integration testing of SIP16 has
commenced and is now planned to be released mid November.
e Revised plans for the KMS and VPN deliveries have recently been agreed
internally. These are designed co address problems and issues which have
occurred at the detailed level.
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e System test main pass cycle 1 of the Data Warehouse/MIS has commenced.on
both rigs and we are currently experiencing a high pass rate on the test scripts.
e Progress on Pearce RoDBv2.5 and 2.6 and estate management (OCMS)
continues in accordance with the plan with no significant issues being
reported,
e Scripting and integration testing in B&TC is:going well but there is concern
regarding the speed of rig.building and the level of change.impacting CSR.
These are being addressed. Additional regression testing of CSR is being
carried out by B&TC to supplement the usual PinICL testing conducted by
Customer Services.
COST DOWN
e There were no new initiatives in September.
CURRENT CRITICAL PROBLEMS ——- eee —-—.
e None
ISSUES
* The KMS product currently limits the outlet distribution population to circa
600 per week. This places an unacceptable:constraint on the implementation
of CSR+, consequently design reviews are being held.to resolve the issue.
e BT and Energis have indicated that there will be approximately 85 - 100
outlets with no land network connections possible. They are suggesting that
we should consider a satellite solution and this is being evaluated.
« A proposal for the lightweight mobile configuration required to operate in a
variety of locations throughout the UK, will be submitted to POCL shortly. It
does not include a receipt printer and. will only be connected to the Data
Centres from the home base i.e. it will be free standing when operating in the
remote locations.
e The live performance monitoring activity has identified a problem with the
capacity of the ISDN Network and CISCO router configuration. Options to
improve the throughput capability are currently being evaluated.
¢ POCL expect under the terms of the new agreement i.e. time and materials, to
closely monitor our resource consumption during the design and development
of any new product or service. Their expectations could put a huge burden on
the administration resources within our Programme office.
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COSTS
e The 1999/2000 forecasts demonstrate that costs are under tight control and
subject to regular financial reviews throughout the year.
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ICL Pathway Commercial & Financial Report Ref: PA/REP/042
Version: 1.0
Date: 21/10/99
Commercial & Financial Report
MONTHLY SUMMARY
e The highlight was Acceptance on 24th September, on schedule, and the
resulting invoice for £68m delivered on 27th September for payment within
30 days.
* The Sécond Supplemental Agreement has committed us to satisfying a number
of Acceptance Incident related performance measures and other actions prior
to the.restart of roll out in January. It also introduced an optional 1600
milestone for roll out prior to Christmas. This yields a £80m.payment, with
£10m held over to the next milestone (May), but we still get the full £90m in
December if we achieve 1800.
e September was also a ‘cost down’ month, with Girobank settled for an amount
well within that provided for in March,
e The margin on the revenue and the release of provision enabled ICL Pathway
to post a profit of £16m in the month. There is still a long way to go to
recoup the £180m lost last year, but this is a good start.
e The Business Plan is being updated to take account of events since the Letter
Agreement in May. Favourable BPS settlements with Girobank and De La Rue
(forecast) together with under-spending this year are not enough to offset the
adverse impacts of Acceptance Incident resolution and the moderation of
previous optimism on operational cost down, Overall, there is more rather
than less pressure on the P&L.
¢ Consideration is being given to business development scenarios té enable
Pathway ‘to close the profit gap. The downside of the ‘lower risk’ milestone
style contract.is that the upside of transaction based revenues has been lost
from the current contract.
e A limited number of specific risk scenarios are also being considered. These
could easily wipe out any upside gains from new business and are identified so
that avoiding action is taken.
¢ The Joint Change Control Board set up under the Codified Agreement is
beginning to reduce CCN lead times and to provide and escalation route
although there is still plenty of scope for:improvement.
e A number of important supplier discussions are going on, aimed at:a
combination of better performance and cost reduction. These include Fujitsu
Siemens Corporation on PC price reductions and buffer stocks, De La Rue on
the BPS settlement, OSD on the Corporate Red Alert and the pricing of
systems service, Work Place Technologies on performance, and Oracle on
extending the scope of the POCL software licence.
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—... KEY LEGAL.ISSUES Lee
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ICL Pathway Commercial & Financial Report Ref: PA/REP/042
Version: 1.0
Date: 21/10/99
PROGRESS
¢ Acceptance completed, albeit with hurdles still to:cross before roll out
recommences in January.
e CCNs and A2As are in much better shape then they were, with almost all key
CSR+ agreements now in place including the infamous Reports and Receipts
(although there are still notable exceptions such as AP reconciliation).
e Girobank have settled. De La Rue are talking in reasonable terms.
« We have drawn up the BPS transition invoice. This is ready to go once the
DSS indicate that it is acceptable. At just £2m, it reflects the rapid close down
of the BPS and a faster shedding of cost than was anticipated.
e Roll out is underway and going well with one thousand offices now installed
(despite some difficult product / operational problems of the ‘learning
experience’ kind).
* Looking back co where we were immediately before the Codified Agreement,
significant progress has been.made.
ACCEPTANCE
e None - Acceptance is unconditional
e We do have hurdles to jump,.on Al 298, 376 and 408 in particular
RELIANCE.ON DSS REQUIREMENTS
e On closer inspection, there were:just three specific areas to address in the
Codified Agreement, and this was done.
‘WHAT ARE WE BUYING?’
e Dealt with satisfactorily in a series of non-contractual reviews.
RATE OF ROLL OUT
© Dealt with. CCN 561 requires both parties to use reasonable endeavours to
smooth peaks and troughs, which is very much in both parties’ interests. Initial
signs are encouraging. POCL have agreed to constrain postmaster choice with
regard to day of installation.
DISPUTED REQUIREMENTS
e None remaining
HOW TO TREAT POCL REQUIREMENTS NOT IN CSR+
* The CSR+ RCD has been signed off under CCN.
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« Only those features which are listed as:specified additions to CSR are
committed: all other features are held over to later releases and are subject to
T&M charges to be agreed.
CONFORMANCE OF CCDS
¢ CCDs which relate directly to CSR have been dealt with.
e Many other CCDs have been withdrawn because they related specifically to
the BPS.
e All others must conformed to the néw contract as soon as possible. The
principle of doing this at the same time as checking for updates has been
agreed.
CCNS AND A2AS YET TO BE AGREED
e The number of outstanding CCNs has continued to fall steadily-and the
general status if much more current than it was. However, there has been a
recent increase in ‘fail rate’ and the JCCB has adopted a set of corrective
actions which will need to be monitored closely.
e Very few of the original A2As remain. Most are subject to CCN. Some work
will still be required to finish these-off by yearend, which is the target set in
the Codified Agreement.
e The Supplemental Agreements introduce a handful of new A2As. The most
significant are:
e Agree under CCN561 new procedures to smooth roll out within week and By
between Area Implementation Programmes (including early warning of
aborts such as to enable resource balancing) and, under the rectification
plan timetable, the actual roll out plan for 2000;
e Agree how to apply the new testing policy initiatives (derived from lessons
learned on AI298) to the introduction of both CSR+ and the AI376
Integration check facility;
e Agree new procedures to deal with reconciliation incidents (AI376 and
CCNS562);
e Agree new methods for using ad hoc enquiry facilities (AI412);
e Bring in under CCN (ie. it needs to be agreed as a CCD) the ‘Pathway
Generalised API for OPS/TMS’ document to enable POCL (or PONU) to
invite tenders for applications from software houses (AI314): note that this
does not extend to agent or host'systems.
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e Not explicitly stated as an A2A is the need to agree the effect on CSR+
introduction of the latest testing ideas. POCL favour a ‘live trial’ in a subset of
the rolled out estate and appear to want to shorten the various BIT etc. test
cycles first dictated by the DSS but adopted by POCL for Acceptance. Model
office has already given way to ‘User Trials’, and even these are being
questioned as being too late in the cycle to be useful. The fact-that CSR+ jis
subject to Release Authorisation only (ie. not Acceptance per se) could-help
remove some constraints and enable time to be put to better use.
OTHER ISSUES ARISING LATER IN THE PROCESS (‘GAPS” IN THE LETTER
AGREEMENT)
e No new issues.
e The Supplemental Agreements (and related CCNs) deal mostly with specific
short term matters and have limited applicability over time. However, two
elements will endure:
* thé revised roll out Schedule; _- _— — -- = —.
© introduction of pre-training events (AI218), new SLAs for help desk (A1408),
system stability targets (AI298), new SLAs for accounting errors and
compensation payments
BUSINESS CASE
¢ ‘The Business Case is under active review. Account is being taken of the
additional Acceptance work and operational commitments and of actual data
from live operations and roll out. These are being matched against prior
modelling assumptions.
e Opportunities for additional business are being itemised and catibrated by
Business Development.and Finance jointly according to different strategy
options. Options are limited under the ‘cost plus’ regime of the current
contract.
e Opportunities for ‘cost down’ are being actively progressed as a matter of
course, but the current view is that there is slightly more risk than opportunity
in the plan.
e A number of risk scenarios are being overlaid on top of the new base case.
These have the capacity to outweigh the opportunities if the right skills are
not brought to bear in timely fashion.
e To better the £50m loss position at Pathway level (better at'Group), a realistic
and sustainable ‘break-out’ approach will be required, one which addresses
successfully the Key Issue highlighted below..
RISKS
e Arrange of risks has been identified, mostly focused on various delay
scenarios and on increased operational costs.
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© None of the risks is as acute under the new contract as when we had to
deliver transactions to carn revenue, but delay and poor operations metrics
can both still have a serious impact.
ISSUES
e The customer’s attitude towards us, in particular the.stance that we should
deal with delivery issues while the Post Office talk to others about new
requirements. That mould of distrust and continuing resentment has to be
broken if we-are to stand any chance of building on the core contract.
e Assuming we can crack the attitude problem, identifying who will call the
shots in the new Post Office organisation.
FINANCIAL. PERFORMANCE
e Profit was £16m, £10m better than forecast and Business Plan.
¢ Net cash at £180m borrowings was £5m better than forecast and.£11m better
than Business Plan.
e The Controller’s report follows.
COSTS
Key Measures Fy w
(amounts in £m) % #
Month of September Cum./Month End
Var. from Var. from
Actual Forecast Actual Forecast
Revenue: 69.7 (2.3) 713 (1.8)
Declared Profit / (Loss) 16.0 10.0 15.6 10.0)
External Borrowings: 158.4 (3.0)
Total Project-Borrowings: 180.0 5.0
Headcount:
Permanents 231 10
ITs/Temps 17 (6)
Freelancers 219 (40)
ICL Contractors 131 46
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COMMENTS
e Acceptance achieved and invoiced! Revenue from BA Transition activities are
nowexpected to be lower than forecast.
e In addition to £6m declared profit from the UK project, a partial release of
£10m has been made from the Supplier Compensation Provision set up in the
March '99 books.
e Pathway cash is £3m less than forecast, but only because we have paid all
intercompany liabilities ourselves, rather than call upon Group resources whilst
waiting for acceptance cash.
¢ Overall project borrowings remain well below forecast, due to lower working
capital and lower fixed asset additions.
¢ Overall headcount is within forecast levels, but following the transfer of
contracts of a number of freelancers formerly on the books of A&TC ES there
are large offsetting variances between the freelancer and ICL Contractor
categories.
Project Costs
(amounts in £m)
Month of September Year to Date
Var. from Var: from
Actual Forecast Actual Forecast
Direct Costs 1.9 0.0 10.7 0.4
Opex:
Staff Costs and Freelancers 2.9 0.2 17.7 0.5
ICL Contractors 1.2 0.4 8.7 (0.1)
Other Subcontract Costs 0.2 1.5 (0.1)
Professional Fees 0.3 (0.2) 3.0 (0.5)
Government Contribution (6.0)
Other Opex 0.3 0.2 2.8 0.2
Total "Cash" Opex 4.9 0.6 27.7 0.0
COMMENTS
e Lower OSD costs have allowed us to absorb extra costs relating to acceptance.
e Freelancer savings.
e Cumulative now virtually on track with forecast.
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e Extra acceptance related cost accruals re. Masons, plus SG fee from last month.
e Various Opex savings.
"Capital" Expenditure
(amounts in £m)
Month of September Cum.
Var. from I Var. from
Actual Aug F'cast {I Aug F'cast
Tangible Assets:
Counter Equipment:
PCs 2.8 0.1 0.1
Component Cost Clawback (1.4) 0.8
CTX Monitors (1.0) 1.9 0.1
Other Counter Equipment 0.3 (0.1) 0.1
Network Implementation 0.2 0.1 z
OUDPE/Support Kit 0.3 (0.1)
Total - Tangible Items 1.2 1.8 1.2
Intangibles: .
&
Site Preparation/Modification:
WT plc 1.8 (0.2) 0.7
Pearce 0.9 (0.2) (0.1)
Training (Knowledgepool) 1.1 0.1
Hangaring/Distribution 0.3 0.4
Total - Intangible Items 3.8 (0.1) Li
Total - "Capital" Spend 5.0 1,7 2.3
COMMENTS
e Cumulative gain from Fujitsu back-dating of clawback of advance component
purchases September reversal of CTX’s August invoicing shambles.
¢ "Intangible Asset" costs are recorded as current expenditure, but are directly
related to the Rollout assets and form part of the asset financing of Asset Co.
¢ Slow invoicing from suppliers
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Balance Sheets
(amounts in £m)
September (Total) Analysis of Actuals
Actual Forecast OpCo AssetCo
Tangible Fixed Assets 39.6 40.7 2.4 37.2
Project WIP 133.2 133.3 25.8 107.4
Other Working Capital 48.1 51.9 32.1 16.0
March 99 Provisions (57.7) (67.7) (57.7)
163.2 ~ 158.2 2.6 160.6
Share Capital 151.7 151.7 151.7
Retained Earnings oo (168.5) ~ (178.5) ~*~ (168.5) ~~]
Bank.Loans 173.1 173.1 173.1
Cash at Bank (14.7) (17.7) (2.2) (12.5)
External Borrowings 158.4 155.4 (2.2) 160.6
Group Payment Terms 21.6 29.6 21.6
Total Borrowings 180.0 185.0] 19.4 160.6
163.2 158.2 2.6 160.6
COMMENTS
Lower additions.
Higher accruals, lower receivables.
Release of Supplier Compensation provision.
Higher profit declaration.
No intercompany payments made by Group on Pathway's behalf
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—_—
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== Requirements
Report
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Version: 1.0
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Customer Requirements Report
SUMMARY
* With formal CSR Acceptance now achieved, the team has regrouped around
the actions within the Acceptance Resolution Timetable. This contains
individual action plans for 13 former Acceptance Incidents (Als). These are
the pacing items for restarting rollout in January 2000. Some Requirements
activities have restarted.
DETAILED PLAN ACTIVITIES
ACCEPTANCE RESOLUTION TIMETABLE
e The Acceptance Resolution Timetable forms part of the Contract, as a result
of the Second Supplemental Agreement, and contains some 300 activities and
events that.are pacing items for the restart of rollout on 28 January 2000.
These.are grouped principally under"13 former. Acceptance Incident headings.
© (Pat C): The activities are being reviewed weekly. Joint activities are being
split where possible to show the contribution of POCL and Pathway so that
documentary evidence.may be available in the future in the event of POCL
non-performance.
e There aré two further groups of former Als: those where there is a
disagreement as to severity - None (Pathway)-and Low (POCL) - and
Low/Low items. There are now two or three of the former for arbitration
(232, 242 and possibly 379) and 55 of the latter, for which one-line resolution
plans are required by 31/10. Of these 55, 16 are against Security and those
that are Business Continuity related will only close when we have a settled
estate.
« Atpresent the purpose is to keep the timetable activities absolutely stable and
to force demonstrable completion of Pathway responsibilities. In places
POCL are redefining and rescheduling their activities but Pathway
contributors are under remit to disregard this.
The 13 former Als are reported in Timetable order:
211: (John P) This is now resolved and in monitoring until 31/10.
342: (John P) This is now resolved, monitoring is complete and formal
Closure has been requested.
e 390: (Dave C) A change to AP counter is due for distribution 30/11. It is in
test.
e 376: (John P) This area is of particular concern. The six-week observation
period has started. The work is in three parts: fixes yielding a target stability
figure of merit of a maximum 0.6% of Cash Accounts in error (approximately
42); additional reconciliation facilities, and new Operational Business Change
(OBC) procedures. Although all fixes are implemented, problems arising from
Pathway Reference Data handling were encountered and are proving difficult
to solve without letting through Cash.Accounts in error. The definition work
for additional reconciliation is on plan and design is in progress. All the OBC
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procedure work is completed. The POCL Acceptance Test Manager has left
the project and several new people are now involved and are not yet
familiarised.
378: (John P) A “diagnostic” fix is in place to find, and if necessary repair and
report, a problem not previously defined. We do not expect to find such a
problem, believing it to have been an isolated incident whose true cause was
not originally reported and is no longer present.
369: (John C) The actions in this group are largely the responsibility of
POCL. All formal Pathway actions are complete. The underlying issue is a
commercial one between POCL and DSS for the introduction to service of
OBCS (outlets are banned from using it). We have successfully rebutted all
attempts at implicating the bar-code scanner performance. ICL Pathway,
POCL and BA mounted a four-day monitoring exercise. This provisionally
showed that'there is a print quality issue with some of the benefit books: This
will be confirmed shortly when six impounded books have been
independently analysed by PIRA (Printing Industry Research Association).
372: (Dave H) A first report on the distribution.of Riposte 5.4.10 and EPOSS
roll-up release package has been produced for review and will be issued to
POCL (target 15/10). DLL corruption.monitoring is not yet fully in place: CP
2116 is being worked on.
298: (Tony H and Dave H) The four week observation period will start on
21/10. (CCNSSS has been raised to make the observation Cash Account
Week integral.) All fixes are available and a tracking document to record
progress.set up. On the cut off date of 1/10 the.test sample was established as
782 eligible rolled-out outlets representing 1777 eligible counters. The target
is a figure of merit of four units per counter. per year, a unit being an
authorised reboot or various numbers of workaround. The CAP 28 figure
result was around five units on a very good trend. For CAP29 the result rose
to around seven units because of 376-type issues (see above), new offices not
being brought up to current software revision levels immediately before first
use and some offices not yet equipped with fixes for printer incidents.
218: (Dave J) The Pre-Entry Event actions have progressed well, now paced
by CCN 543a approval. Trainer Quality Monitoring-actions have been
completed such that actual monitoring is in progress. The new PSA Process is
with POCL for approval. Post Training Consolidation actions are all Joint or
POCL. The Performance Measures on which the eventual closure will be
based were due to be finalised 8/10.
391; (Dave J) Physical security of Wigan and Bootle, All actions to date are
complete or on target.
314: (Tony H) The technical authors have started work on the manual
required, with first delivery by 23/11 and Appendices by 28/12.
408: (Dave C) All early actions are complete and the main one to recruit and
train the required complement of Help Desk staff is progressing to plan.
412: (Dave C) Ad hoc service reports, The remaining actions are paper-based
ones for completion by 28/10 and are on track.
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CSR
¢ The CCN to introduce new Inland Revenue order books into OBCS was
raised. From 05/10/99 these books are processed as a simple EPOSS product.
Following CCN sign off POCL will advise the go live date to change
processing to OBCS.
CSR+
e Preparation of SADD Version 5.2, describing CSR and CSR+, has restarted.
The Associated Document and CCN tables have been brought up to date.
Appendix B is being rewritten to remove DSS-related material (CMS/PAS/BES)
and to add material on Service boundaries between EPOSS and other counter
applications.
e Security Documentation: (Dave J) The Security Functional Specification and
Access Control Policy require reissue to strip out DSS content and simplify.
© AP (Dave C): POCL has sought to add an unjustified level of detail into APS
Reconciliation: reports. ICL Pathway's formal position.has been documented
based on correspondence. We believe that POCL will agree to the current
level being baselined, but are seeking contractual guidance as to how their ~ _
"extras" should be managed. We have provided POCL with a requirements ES
specification for PISCES (Smart Token) that describes ICL Pathway’'s ‘s
understanding‘and identifiés the areas where POCL must supply more
information. We assisted CS in preparing a Token Service specification.
POCL withdrew the CR and will provide a complete Service Description. x
e We have had a first meeting to define the pseudo-acceptance activities for x
CSR-+ that will inform the RAB (currently scheduled for August 2000). Much
is predictable (Acceptance Criteria, Al, KPR and PinICL resolutions hung over
from CSR) but there is pressure to re-prove somé Acceptance Criteria
particularly in the performance and security areas.
OTHER ACTIVITIES
© Dave H has provided some assistance to Utilities Branch for the Centrica
workflow bid, similar to that provided for the Post Office IWIM bid.
e DOORS - We have obtained a licence extension and converted the new
Requirements schedule (Codified Agreement Schedule A15) into DOORS
format. The next logical steps are to extend this to top level contract
document (Solutions / Service Definition Schedules / SADD) and, decide how
to interface would be with other tools and processes particularly PVCS and
the existing CCN / CR/ CP procedures
CURRENT CRITICAL PROBLEMS
e [tis essential that the estate software revision levels are complete and
operations stabilised, such that 376 and 218-type incidents are minimised.
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ISSUES
e None.
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Customer Service Report
MONTHLY SUMMARY
VITAL
September SLA performance figures to date indicate we have not achieved the
minimum acceptable level for APS data delivery; TIPS data delivery (day D)
and OBCS file delivery.
The most significant operational problem of the month was the reporting of
Index corruption on correspondence servers and counters Riposte 5.4.10.1
will be implemented as soon as operational testing can be completed.
The NUMA-Q was installed at Wigan, replacing the SE70.
The workload pressure on SSC has intensified through September with high
volumes of calls being received.-SSC are struggling to contain the workload:
the WIP is in three figures. A major factor in this is the overall performance of
the SMC.
MSU are receiving EPOSS incidents directly from POCL TP and are managing
to resolve all in an acceptable time scale (RED report within 48 hours),
The number of outlets not returning transaction details to TP, due to ISDN
problems or powered down, is increasing.
STATISTICS
Installed Base: 749 Post Offices, 1819 counters
Total number of OBCS transactions to date 13.4m
Total number of OBCS transactions-in September 1.6m
Number of books impounded 28,030
No. of EPOSS Transactions to date 9.3m
No. of EPOSS Transactions in September 2.8m
Value of EPOSS Transactions to date £365m
Value of EPOSS Transactions in September £85m
No. of APS Transactions to date 1.3m
No. of APS Transactions in September 417,299
Value of APS Transactions to date £32.4m
Value of APS Transactions in September £10.0m
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PROGRESS
OPERATIONS
AVAILABILITY MANAGEMENT
Final figures are not yet available for September SLA performance. Figures to date
indicate we have not achieved minimum acceptable level for APS data delivery; TIP
data delivery (day D) and OBCS file delivery. We will be carrying out a complete
analysis of the figures to ascertain reliability of SLAM output and root causes and
solutions for each of the incidents leading to SLA non-conformances.
The most significant operational problem of the month was the Riposte Index
corruption on correspondence servers and counters. Riposte archiving has now
been switched off at the correspondence.servers. This circumvents the problem and
Riposte 5.4.10.1 will be implemented as soon as operational testing can be
completed. Testing is underway of a fix to address the more serious problem of
index corruption on the counters. . 7 :
Another problem, which occurred at the same-time, was disk time-outs being
reported on the Wigan Correspondence,Server. This is suspected as a hardware
fault and is being investigated as such.
In line with the SIP14 plan, the NUMA-Q was installed at Wigan, replacing the
SE70.
The number of non-polled Post Offices has been increasing in-line with rollout. The
task in managing these is increasing and we need to improve the process:and root
cause analysis before we have a significant increase in the numbers.
Dave Tanner and Mark Jarosz are still analysing high ISDN charges. Progress is
slower than anticipated.
CHANGE MANAGEMENT
SOFTWARE DISTRIBUTION
In order to ensure no ‘regression incidents’ were reported during the 6-week ;
observation period a decision was made to make all fixes to the counter ‘immediate’
rather than ‘catch-up’. Over the weekend all fixes, with the exception of
Riposte_Signed_3_1 were repackaged as immediate fixes and are now distributed to
new counters as part of auto-configuration.
There are still more than 100 counters that require residual fixes applied. The
reason for the high number of suspended counters during software distribution is
under investigation by Dave Tanner.
Although reasonable progress was made over the weekend by SMC in the
distribution of fixes, this is being accomplished under direct management of CS
rather than any proactive management by the SMC. This has been escalated
through Red Alert and direct discussions with OSD Service Director.
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REFERENCE DATA
¢ Major operational problems were experienced with Rem In/Rem Out, Stock-unit
Transfers and scales. On.Friday 1 October a number of outlets experienced
problems Rem’ ing in and out, transferring stock between stock units and scales
functionality. This was diagnosed as the office details having a change in the
Reference Data pipeline that caused a previous change to be released with an end
date on the data when the.actual change containing this end date had not been
released. Although the Rem and scales problems were resolved, the stock transfer
amendments were not made until Monday, which resulted in the number of outlet
calls raised on that day. A-resolution plan is in place to ensure there will be no cash
account balance problems on Wednesday.
e A total of 66 reference data changes were released into the live service last week.
The total number of PinICLs has reduced to 30.
SLA MANAGEMENT
APS
e Although there are some issues regarding the Reconciliation report document under
discussion between Design-and MSU, all issues preventing sign-off are-now s a
resolved. : ok
e POCL believe that the terms by which the Al was:signed off are not being met, with
issues around late polling and day 1 reporting. These issues have been addressed,
through the MSU and the report is now back on track. .
CTO
e@ We have had criticisms from the OSG manager re the quality of service and
personnel supporting the service within Pathway. We are asking for more details
for a full analysis of the customers concerns but suspect this is being driven by
motives other than legitimate concerns about the quality of the service.
AP CLIENT MIGRATION
e POCL have changed the original plans for us to be involved in the practice sessions
of the presentation by Account Managers to POCL clients. There is a POCL team
meeting on 7th October where they are reviewing their strategy.
TIP
* A steering meeting has been held with the customer and progress is now being:made
towards the establishment'of OLAs and a disaster recovery ‘strategy.
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SUPPORT SERVICES
SYSTEM SUPPORT CENTRE
¢ The workload pressure on SSC has intensified through September with high
volumes of calls being received. SSC are struggling to contain the workload: the
WIP is in three figures. Also a number of additional tasks were undertaken to
support the resolution of Acceptance Incidents. SSC had-significant involvement in
the management and resolution activities for the Correspondence Server index
corruption problems that occurred over the last week-of the month. A major factor
in this is the overall performance of the SMC. A pre-scan function is being’put in
place to ensure that calls get the appropriate level of attention, but a tougher stance
will be taken on “invalid” calls passed across by SMC. A RAR has been raised to
recruit additional resource.
© The responsibility for the management of HSH and SMC within OSD has‘moved to
Multi-National Operations. MNO are experienced in helpdesk operations and HSH
should benefit. Doubts, however, remain about the extent to which the full range of
SMC’s operation will benefit. A review has been held with MNO management and
areas of concern reiterated — a further get-well plan has been promised. The OTI
link between PowerHelp-and PinICL remains problematic. Anew OTI is forecast
but precise plans are‘not.yet.forthcoming.from OSD. The matter has been escalated
to.the OSD Service Manager.
e A meeting has been held involving Development and A&TC to push forward
A&TC proposals for the take-on of Host Applications support in the medium to
long term. Out-of-hours support.for APS is not in place within A&TC. A further
response from Terry Anderson is due early October.
© The SSC disaster recovery PCs have been delivered to FELO1 and.a successful pilot
access has been achieved.
METRICS.
August September
e — Total Calls raised through SSC 536 815
° Total Cails closed through SSC 529 737
OPERATIONAL TEST TEAM
¢ There has been constant pressure on OTT during the month, especially in relation
to handling the fixes related to Acceptance Incidents.
e Additionally, OTT staff have undertaken OBCS bar-code scanning exercises with
POCL in connection with Acceptance Incident 369 - this has involved visits to a
number of Post Offices in the Northeast. No issues with Horizon equipment were
noted.
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e The number of CSR changes (including PinICL fixes and CPs) remains very high
and priorities for testing and release have to be assessed. The key criteria are AI-
related, operational need or ¥2K. A detailed testing and release schedule covering
the short term CSR changes in the pipeline has been published.
e SMC’s performance in catching up on delivering outstanding fixes to newly-
installed counters and to replacement counters is unsatisfactory and this is likely to
cause problems during the Acceptance monitoring period. Proposals-are therefore
being worked on to install all fixes'to such counters at.the time of their
installation/replacement.
INFRASTRUCTURE SERVICES
BUSINESS PROCESS ENGINEERING
¢ Joint Pathway/POCL Service Management Frameworks and Generic Processes
progressing to plan. Incident Management, Problem Management, Business
Continuity Management, Change Management and Generic Service Management
Process Definition draft documents circulated within POCL and Pathway for
comment. No adverse comments received.
e A new process issue, HSH Call Coding, is being progressed. Two workshops ha’ e
held. Pathway and OSD are working together to identify the best process for
defining, communicating and managing changes to call coding.
MANAGEMENT SUPPORT
BUSINESS / RECONCILIATION INCIDENT MANAGEMENT
e APS continues to reconcile daily.
¢ Weare receiving EPOSS incidents directly from POCL TP and are managing to
resolve all in an acceptable time scale (RED report within 48 hours). The first
incident review of CSR is scheduled for 15/10 where we will clear up any remaining
confusion over the RED reporting process.
e The expansion of the live estate has meant that the number of outlets not returning
transaction details to TP, due to ISDN problems or simply that the terminal is
powered down, has increased. This is becoming a job in itself to track and resolve.
We are obliged under the rectification plan for AI376 to raise an incident on each
office that hasn’t polled. This is time consuming and probably pointless for those
offices only down for 24 hours. Richard Brunskill is due to talk to the customer
(with the Requirements team) to try and find a more efficient way of tackling this
problem. .
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e Avery busy month in the incident management and MIS areas. We have been
dealing with a large number of ‘non polled’ Post Offices as the live estate has’rolled
out, causing a bottleneck of incidents which We-are only now beginning to clear. As
more offices have become live, the demands on the MIS team have increased, as
there is a need to monitor the performance of the system for the acceptance
rectification plan. There has also been a significant amount of time spent re-
working SLAs to portray the accurate values for the SRB.
e AI298: Monitoring work is taking place for AI298. Martin Johnston is running with
this in close co-operation with POCL. This is a time consuming job that takes up
Martin’s entire day although I believe we have now developed a ‘system’ that is
consistent and accurate. We are now monitoring a base of 750 offices.
DESKTOP LT.
¢ WP2000 rollout has been suspended - no ICL Group budgets available.
e Y2K audits have taken place in BRAO1, KIDO1 and FELO1. FELO1 is now being
made compliant. All users will be on MS Office 97 and using either MS Outlook 97
or 98. This project is expected to finish at the end of October.
e As users migrate to MS Exchange Tim Patteson is assisting in closing down the
users’ TeamOffice mailboxes. It is expected that TeamOffice will be switched off at
the beginning of December.
STRATEGIC SERVICES:
¢ OSD is now on Corporate Red Alert. The Red Alert will enable them to ensure they
have the correct levels of resource and support in place to deliver ICL Pathway’s
contracted level of service to POCL — specifically over the 6 week monitoring
period.
¢ The performance of delivering reference data is cause for concern. The impact of
reference data-failure has been evident over the past two weeks where recent
failures have had-a major impact at the Post Office counter. Given an estate of
20,000 Post Office outlets any reference data failure will cause enormous problems
for the postmaster, the HSH and support teams. The end-to-end reference data
system needs to be fault tolerant — at present it is not.
© Good progress has been made this month with regard to cash account scripts. The
latest review was held with POCL last week. Clear targets have been agreed
established for the completion of the scripts, which will enable us to finalise the
baseline. Script use will be closely monitored by POCL and there will be an on-site
audit of script use by the HSH on 13/14 October.
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Quality & Risk Report
MONTHLY SUMMARY
¢ Security Acceptance incident. The rectification plan was:agreed and actions aré
on schedule.
e Security. An approach for Penetration testing needs to be developed. The
continued lack of an agreed implementation of anti virus software for the
system is an ever increasing risk.
« Risk Management. The Predict! Tool implementation continues; processes and
reporting are being developed. A business risk analysis has identified and
quantified 5 risk scenarios against the business case.
© Quality. Audits of Post Office installations have highlighted the poor site
preparation quality of WTplc. These will continue on a sample basis to provide
input into the process improvement exercise over the NRO break.
e Continuity planning. A Working Group has been established to address
readiness of plans, in particular. for Y2k, and test scenarios are being developed.
« Audit. The development audit is well underway; report is due by the end of
October. Audit server issues with OSD are still not resolved. Customer Service
and Implementation audits are being followed up.
© Release Management. A project manager to implement the process has still not
been appointed.
e Y2k compliance. The major risk-now is the level of change to be introduced to
the system over the millenium period and Pathway’s plans to mitigate risk.
¢ Mobilising Knowledge. The opportunity-to transfer knowledge, experience
from Pathway into other parts of ICL is being considered. The Customs and
Excise PFI will be used as a trial.
PROGRESS
RISK MANAGEMENT
¢ Programme risks: Risk identification workshops with Development Directorate
have continued and are scheduled to complete during October. Quantification
and reporting within the Directorate have been agreed. Implementation risks
have been entered into the Predict! Tool. The Risk Management Process is
being modified. Bugs in the tool are being addressed.
¢ In conjunction with revision of the business plan, a business risk scenario
analysis has been conducted, which identified and quantified 5 high level risks:
* A 3 month delay to NRO
Further slip to CSR+
Instability of EPOSS code
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e Inability to maintain the roll out beat rate
¢ Operational costs higher than currently budgeted
SYSTEM SECURITY
GENERAL
¢ AJ391, Site security improvements at Bootle and Wigan have been agreed with
A&L. The rectification plan was agreed with Horizon and the first major
milestone has been met.
Masons have produced an analysis of the implication for Pathway, POCL and
the DSS of the new Data Protection Act 1998. The analysis has been reviewed
with ICL Group Legal & Commercial and the picture remains unclear. It'is
important that the three parties engage soon to establish each group’s status
under the Act: Data Controller, Data Processor or None. Slaughter & May’s
interpretation of the Act is at-odds with that of Masons.
CSR
A threat assessment has begun to identify the business risks that may be
introduced by the inauguration of the Ro!lOut DataBase Replication Server:
* A continuity plan for the security administration workstations is in first draft.
CSR+
¢ Review of KMS:development programme. This:identified additional
requirement for definition of crypto processes for CSR and CSR+. This
amounts to about 6 man of A&TC work and a CP is being raised.
¢ Technical Penetration testing. A meeting is planed before the end of October to
agree an approach with Horizon.
QUALITY
¢ A programme of audits of the installation of Post Offices is underway, reporting
ongoing to Implementation. The main issues remain with WTple performance.
Issues are also being identified with the time to fix errors and responsiveness
and knowledge of the Exel Help Desk.
Disaster Recovery plans. SMH plans continue to be progressed. LDRPS
software has been purchased and training of QRM staff in hand.
Business Continuity Working group has been set up to ensure that plans are co-
ordinated and completed. The target of end 1999 is being used as a driver, and
Y2k scenarios are being developed to test the plans.
AUDIT
Internal audits:
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Implementation Audit. Agreement of the Corrective Action Plan is being
progressed.
Customer Services Audit. CAP progress is being reviewed.
CSR+ development audit. A very broad range of interviews has been
conducted. Initial findings suggest that there have been improvements, but are
variable. A draft report is:scheduled for w/e 15/10/99.
POCL continue to attempt to get fraud investigation data from the audit route.
This is not a.contracwual requirement and is being resisted.
Requests for data from SSC continue. This is potential usé of audit data, and it
is time consuming, requiring the ‘building’ of a correspondence server for each
request.
¢ Commercial Audit Trail. The process for invoicing POCL, determining and
recovering penalties is being discussed. The RODB data is being proposed for
evidence that Pathway has achieved milestones. Penalty / remedy payment
calculations are dispersed and need to be.collated.
There are still significant issues with issues with operating the audit solution,
which OSD appear unable to address or resolve. This is being escalated.
YEAR 2000 CONFORMANCE “s
¢ Contingency Plans are being progressed. The major gap is now in Development.
e The major remaining issue is the planed amount of change to the end of 1999.
This gives rise to considerable concern.as to the likely stability, in particular at
the outlets. SIP16/C12 has slipped to December for roll out to counters, and"
EPOSS reconciliation amendments will be introduced no later than 31/12/99.
This requires high level of assurance of the software changes and of the
distribution capability. The latter is:vulnerable to defects in our systems,
inappropriate actions in outlets (eg switching off pc’s) and failures in the
national infrastructure. We must ensure that a high level of support readiness is
in place over the Millenium period.
GENERAL
* Mobilising Knowledge. Initial contact has been made with Elizabeth Lank, to
explore the opportunity to transfer knowledge, experience from Pathway into
other parts of ICL. The Customs and Excise PFI will be used as a trial.
CURRENT CRITICAL PROBLEMS
System changes to be introduced over the Christmas period and support
readiness.
ISSUES
¢ There is still no agreed implementation of anti virus software in the live estate.
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We are still dogged with workstation build problems — the SecurID
Administration workstation has been out of service since 20th September.
e DQAs of installations have highlighted the poor site preparation quality of
WTple.
e Audit server issues with OSD
© Release Management. A project manager to implement the process has still not
been appointed.
e Ensuring the overall business continuity plan for Pathway provides adequate
mitigation against risks, in particular Y2k.
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ICL Pathway Business Development Monthly Report
Business Development Report
SUMMARY
°° A number of Horizon business development opportunities are emerging,
however the key focus over the next few months has to be putting in place.a
manageable and effective way of working with.the Post Office. There is no
agreement within the Post Office Network team as to how they wish to work
with us. We are actively facilitating discussions with the various parties to
improve the situation.
° The contribution to the business plan is being worked on currently. Emphasis
on safeguarding identified revenue and avoiding penalties and on identification
of real opportunities to improve the bottom line.
¢ The latest Post Office organisation charts are now being finalised and put onto
our network for access by all staff. We are in the process of developing an
executive relationship plan that will involve all directors. The first version will
be presented to the management team on 17th October.
e We have just received a letter of intent from Deutsche Post. This is good news
and although the maximum value is £200k, this should lead to much higher
spend by them over the coming years. This is also the first example of business
from international based on the revised approach of selling high value
consultancy-rather than trying to play in the product arena.
e We have started discussions with Post Office Network regarding the
development of-a single Help Desk to handle all first line calls from offices.
This-would be run by Post Office and have obvious impacts on both our HSH
help desk and SLA's. We have involved Kainos in this work as they have core
skills in this area, Again, we will undertake some scoping work with a view that
any future work will be on a chargeable basis.
e¢ PITCOM are due to visit ICL Pathway Jater on 26th-October. Post Office have
been alerted to this and invited to attend.
e We are:about to embark on another round of post office visits. The main aim is
to get feedback direct from officesmanagers and to maintain high level contact
with the territories.
PROGRESS
BUSINESS DEVELOPMENT:
e DVLA: We have presented Horizon to the Post Office's client director for
DVLA. This was very well received causing him to consider a number of ideas
for exploitation of the system. This-should also help position ICL to’be a
partner with Post Office for the DVLA re-bid. It will also lead to anumber of
re-engineering opportunities being fed through the Post Office network team
for fulfilment by ICL Pathway
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e AP Client Migration: Post Office Network.Banking client managers.are starting
to take ownership of this activity. We have created a slide set and a script for
them to use and this was presented to them in a recent visit to Feltham. They
used this for a team meeting:as well as the Pathway input session. This is a
formula that-we can re-use with other teams. The approach with the AP client
teams is to ensure that they are selling the generic technical interface rather
than accepting the specifics of the client requirements which historically they
have been doing, thus leading to multiple different interfaces and consequent
re-work,
© The initial Network/Pathway meeting to discuss service’ development was
cancelled by PON as they have not yet agreed internally how they wish to:
¢ Manage requirements capture and prioritise them within the business and
e Manage future activities with Pathway.
e Discussions continue to re-arrange.
MARKETING COMMUNICATIONS:
¢ Internal Communications in ICL Pathway
e Acceptance was communicated within ICL Pathway and ICL; this involved a
number of audiences — EMC, SMT (ICL Pathway), ICL Pathway staff, ICL
staff via CASCADE, CafeVIK and an article in MSMS.
¢ National roll-out communication is now a priority. We must ensure our own
staff and the wider [CL community understand the size of the task that is
being achieved.
« Another dress down day has been held - always a sticceésful staff motivator as
well as a valuable contribution to charity.
EXTERNAL COMMUNICATION
¢ Marcomms support and future planning:is being provided to the Post-Office
Virtual Account Team. Work includes the design and build of an Intranet such
that information is captured, shared, distributed and co-ordinated and that
messages are consistent.
¢ Chrissie Kennedy has attended a number of ICL Marketing meetings in order to
grow ICL Pathways reputation and to keep in touch with ICL corporate
comms. teams.
POCL COMMUNICATIONS.
¢ POCL review meetings are on going — pleasant but fruitless, although we hope
to be involved in the Horizon relaunch activities.
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e NFSP Exhibition takes places 9th & 10th October at the NEC. ICL Pathway
does not have a stand at this event on the request of the Post Office. We do
however, have an Horizon demonstration plus presenter on the Post Office
stand. KnowledgePool is supplying this, and an invoice is in the post.to the
Post Office to cover this cost.
GOVERNMENT COMMUNICATIONS
¢ PITCOM invitations have been sent. To date approx. 15 favourable replies
have been received. Date is 26th October, FELO1.
MARKETING COMMUNICATION TEAM
¢ Work is being-done on the function, staff and responsibilities of the Marketing
Communication team. I do-not intend to replace. Anna ‘in the short'term,
rather split the activities between Chrissie & Stacey with my support:and the
support of Group comms.
FUJITSU TEAM:
¢ Greg continues to do sterling work with the FJ team both socially and work
related. :
INTERNATIONAL:
¢ Deutsche Post have given a letter of intent for consultancy work. This work, iit
the first instance, will be undertaken by Alan Ward and his team. The first task
will be in the area of security. ca
© Portugal Post (CTT) wish to spend two days with us later:in October. Their
prime interest is to identify areas of skill and experience where we can help
them, much similar to Deutsche Post. Although CTT will use Siemens as their
prime SI, there exists an opportunity for profitable low risk revenue over the
life of their contract.
¢ The Namibia Post implementation continues to progress well. The change of
focus co limiting our exposure while still delivering a working solution is
proving successful, ICL Namibia will provide the on-going support of the
system with back-up from Pathway if needed.
CRITICAL PROBLEMS
* None
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PA/REP/042
1.0
21/10/99
ICL Pathway Implementation
Monthly Report
Implementation Report
MONTHLY SUMMARY
e All Implementation programme milestones were achieved during the reporting
period and the project remains on target to achieve to achieve the first rollout
programme milestone (1600 live outlets by Sth November).
© Satisfactory progress is being made on the only Implementation-related
Acceptance Incident resolution plan (218), and-activities are on track to
complete on schedule. Work to implement the rollout implications of the
Second Supplemental Agreement and the associated CCN 561, is on track arid
making good progress.
e Particular concerns within Implementation this reporting period are the level of
issues on installation day requiring attention to ensure installations are
achieved. This is taking a considerable amount of effort.and unless the causes
are addressed this will result in the need for additional staff. Action is currently
being taken to resolve the causes. Another particular concern is in the level of
training scheduling failures, which has arisen through the need for a more
capable training scheduling system. Further details on these issues are included
later in this report.
PROGRESS
e Recruitment.against the agreed Implementation headcount profile remains on
track. Only one position remains to be filled — Financial Assistant to the
Financial Controller. Three additional temporary staff were recruited during
the reporting period to cope with the current high level of issues being
experienced at the front end of the installation programme. This includes a
Project Léader in IP2 region for one month and two help desk operatives for a
period of two months only (see Issues section for more information).
e The infrastructure programme, preparing outlets for installation, continues to
make good progress and all outlets currently entering the programme are being
sourced from outlets released from suspension. In terms of the quantity of
outlets completing the infrastructure programme, good progress is being made
although the level of infrastructure issues being experienced in the installation
programme is a concern (see Issues).
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e National Rollout installations are making very good progress with almost 800
outlets live as of Friday 8th October 1999. The project remains on target to
achieve the programme milestone of 1600 outlets by Sth November 1999. The
level of suspensions and aborts from the installation programme has now fallen
to the predicted level, despite initial high levels. The installation programme
and achievement of the first National Rollout programme milestone remains
the highest priority for Implementation. Contingency measures to ensure
achievement of these milestones are working well and have proved invaluable.
e Progress has been made on implementing the rollout aspects of the Second
Supplemental Agreement and the associated CCN $61. A workshop to agree
amendments to rollout processes for CCN 561 was held on Tuesday Sth
October. A capping proposal for National Rollout has been forwarded to
POCL and a second workshop is planned for 20th October 1999.
~ > @ Implementation has continued to make“progress on the resolution plan for
Acceptance Incident 218. The main element of the resolution plan is:the Pre-
Entry Everit. This has now been fully specified and a dry run has been
performed for POCL and has been given their approval. AI218 resolution plan
remains-on track to complete within the allocated time scale.
¢ The:concern with Workplace Technolgies quality of continues although
improvements are being made slowly.
IMPLEMENTATION STATISTICS (TO 8™! OCTOBER 1999)
Activity Cumulative
INFRASTRUCTURE PROGRAMME
IRGM letters issued 17395
Site surveys undertaken 15794
Site re-surveys required 6164
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Site re-surveys undertaken 5620
Site modifications done 3959
Site preparations done 8533
Sites RFI 7570
INSTALLATION PROGRAMME
ISDN lines installed 1628
Sites installed 785
Sites migrated and Live 779 “
Counters Live 1772
CURRENT CRITICAL PROBLEMS
e One critical concern persists from last month. It relates to the number of sites
reported by Workplace Technologies (WT) as “Ready For Installation” which
may’still be incomplete despite their reported status.
e WT continued, throughout September, to-make progress against the action plan
imposed on them by Pathway in June, however progress was still slow. WT
were acquired by NTL during October and an introductory meeting has been
held with the Parent Company to appraise them of the concerns relating to this
sub-contract. NTL have been requested to commit to a number of demands in
order to put WT’s sub-contract responsibilities back on track. POCL have
recently indicated their awareness of issues in the completeness of infrastructure
activity in a letter to the Implementation.team. It is anticipated that this
concern can be managed and that sufficient.contingency actions are in place to
ensure the POCL concerns can be addressed.
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¢ The level of issues requiring attention at individual sites during installation to
ensure installation is completed is currently concerning and is putting a
considerable strain on the regional implementation teams and the rollout
helpdesk. In IP2 region, which is currently operating at full beat rate compared
to the three lesser stressed regions, an additional temporary Programme
Manager has been recruited from within A and TC in order to cope with the
current level of issues. It is anticipated that, by addressing the causes of these
issues, this resource can be released after the 1999 rollout completes on Sth
November 1999. If these causes are not addressed and the current level of
issues persists when all regions move to full beat rate next year, then additional
resources will be required in each region. A programme of activity to address
and reduce the causes of these issues is currently being planned for the
Christmas break between November and January.
¢ There is currently a serious issue relating to the scheduling of training events
within the Implementation programme. The training scheduling system of
Pathway’s training sub-contractor, Knowlédgepool, has been struggling to cope
during the early part of national rollout, although a planned system
replacement was imminent. During September the training scheduling system
crashed resulting in a loss ‘of data and some data corruption. The new system
was introduced over the weekend 2/3 October, with some teething troubles.
Recent training scheduling failures (late training invites or no training prior to
installation in a small number of cases) were caused from the data loss and data
corruption of the original system. Manual checks have been implemented to
minimise further disruption and the benefits of the superior replacement system
will be available for future’ training scheduling, although the main benefits will
only be seen after the Xmas break.
ISSUES
e (Including progress on issues reported last. month)
e Although good progress has been made in the installation programme, and the
rate of dropout from this programme has now settled to the levels predicted,
there is a significant number of issues at installation sites occurring on a daily
basis. Of particular concern are failures inthe scheduling of training, the
volume of ISDN line faults not being discovered until installation day and
discrepancies in the quantity of counters to be installed at individual outlets. In
each of these cases action has-been taken to resolve the cause of the issues and
temporary action has been taken to alleviate the level of issues until the causes
have been fully resolved.
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Version: 1.0
eI
Monthly Report Date: 21/10/99
COSTS
POCL’s release of suspended outlets into 'the.Infrastructure programme has
continued and has further eased pressure on the scheduliig for the
infrastructure phase. However there is still a need to continue this release in
both introductions to infrastructure, and outlets in process.
The Rollout database still has a number of software bugs in the current live
version 2.5. Progress is being made with these issues although this has been
delayed due to acceptance resolution priorities. With a large amount of issues
outstanding and the imminent implementation of the Pearce software release
and the Secure Managed Environment, considerable work is still required to
ensure deficiencies in the RODB capability do not impact the installation
programme. A considerable amount of fmanual effort has been required to
manage the RODB data integrity whilst software bugs are resolved and planned
releases become available.
Progress on reducing the backlog of outstanding calls logged at the.rollout help
desk has been hindered this period by the high level of issues reporting during
the initial weeks of national rollout. Two temporary staff have been recruite
to assist in reducing the backlog of calls. us <1
With the trolley solution design having been agreed with POCL, site surveys.for ae
trolley sites have commenced and installation planning for these sites is now.
underway.
Following the delays to installation of Powerhelp help desk systems with
Implementation suppliers and regional teams, considerable progress has been
made in this reporting period. All Implementation service providers now have
Powerhelp systems installed and have received appropriate training. The final
parties to receive Powerhelp will be Pathway regional teams and their
installations will be completed during October.
Progress has been made in determining the design solution for non-ISDN sites
and mobile system sites. The communications solution for non-ISDN sites is
likely to change from frame relay to satellite, subject to conclusive feasibility
analysis. The solution for-mobile system sites is likely to be a bespoke system
build by Celestica, again.subject to conclusive feasibility analysis.
A number of negotiations with sub-contractors require completion, to reflect
changes to the project following the signing of the Second Supplemental
Agreement and the associated CCNs. These include:
COMME!
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¢ Knowledgepool Inclusion of Pre-entry event and:improvements
required within AI218 acceptance resolution plan and changes to training
requirements incurred as a consequence of- revisions to the rollout profile for
the Christmas ’99 period.
e Celestica Changes to build requirements incurred as a consequence of
revisions to the rollout profile for the Christmas 99 period, changes to the
software build plans and adjusting Celestica build plans for the installation
programme tail in 2001.
e Exel Revisions to the installation programme over the Christmas ’99 period
and. adjustments to the installation plans during the tail in 2001.
e Timetables for concluding these negotiations are in place such that all are
complete-by the-end of December. : —_— eee
¢ A baseline budget cost for the Implementation project was presented at the
business monthly financial review on 13th October. The baseline figure of
£203.3M will be the project’s target cost within which the budget will be
managed (Implementation).
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Organisation
& Personnel
Report
ICL Pathway
Organisation & Personnel
Monthly Report
FUJ00058186
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Ref: PA/REP/042
Version: 1.0
Date: 21/10/99
Organisation & Personnel Report
MONTHLY SUMMARY
Recruitment activity was still ata high level, both to fill the remaining
vacancies within Implementation, to deal with specific skill shortages’ within
Development and to replace leavers. There was a strong emphasis on
reducing the cost base by replacing Freelancers with ICL employees and by
working, with A&TC to ensure that wherever possible vacancies are filled by
A&TC people.
PROGRESS
Appointments in, July:
External Recruits
Transfers
A&TC
Linkwise
Freelance
Temporary
Total:
Known joiners:
External Recruits
Transfers
A&TC
Linkwise
Freelance
Total:
Offers outstanding:
External Recruits
Leavers in. September:
Permanent
Freelance
Temporary
Transfers
Total:
10
we
21
ow zs
uw
we
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Version: 1.0
Monthly Report Date: 21/10/99
The number of authorised vacancies, 15 in total, confirmed at month end is
relatively low in comparison to previous months. Of these, only 2 are new
positions. The rest are replacements for leavers.
A key success is having filled eight outstanding vacancies within
Implementation in the month
Objectives for Professional Variable Pay were still not returned by managers
as quickly as required and therefore the personnel department spent time
progress chasing to ensure that the objective of 100% compliance is reached.
Directors and managers are supplied with regular reports to help them
monitor their progress towards this objective.
Significant progress has been made in holding down costs by tight control of
rate increases to freelancers whose contracts are up for renewal. In general
managers have held a zero increase position. Where increases have been
needed to retain key people, we have in three cases been able to negotiate
rates that are significantly below the market rate.
We are working closely with A&TC to replace Fréélancers with ICL
employees and are starting to have some success. However, in the month we
still had to extend more freelancers than we were able to replace with people
from A&TC. We have taken a number of actions which will hopefully
improve our success in this area:
e We have emphasised to our managers the importance of a swift response
to CV’s sent to them by A&TC. Suitable candidates are in demand
across the company and we have to move quickly to secure them.
« We have improved the:screening of candidates by A&TC to ensure that
managers only see candidates with the right skills.
e We have emphasised to managers that they cannot expect a 100% skills
match in all cases and they should expect a period of induction training
before an individual is upto speed. A sensible handover period between
an outgoing freelancer and an incoming A&TC employee is allowable so
that this can take place.
There has been a significant increase in the numbers-of employees required
to work non-standard hours. This includes shift work and on call
arrangements to provide support. The staff concerned are being paid the
appropriate allowances.
The transfer of the Freelancers supplied to us via Enterprise Systems was
completed successfully with no major problems. This group of people are
now supplied directly to ICL Pathway by ITCS with a consequent cost saving
to the project.
The move of the Implementation team was successfully completed. The next
step is the clearing and re-desking of the remainder of D-block and work is
in hand to complete this.
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e As ICL Pathway’s involvement in the Namibian contract draws to a close,
the employces working on it are being progressively transferred into other
parts of the company. Three transferred in September.
ISSUES
e A large number of our skill requirements are for testers and this is not a
community represented within A&TC to any significant degree. This limits
the ability-of A&TC to supply ICL. Pathway with employees with the.right
skills in this area so that freelancers can be replaced. ‘To remédy this situation,
which has wider implications than purely for ICL Pathway, it is necessary for a
cost/benefit analysis to be undertaken to decide whether the creation of a pool
of people with these skills would be worthwhile. As.a first step ICL Pathway
will initiate discussions with A&TC.
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Version: 1.0
Monthly Report Date: 21/10/99
The Post Office - Client Director’s Report
MONTHLY SUMMARY
e The SMPP contract has been signed, initial order value £500k, with potential
to deliver £5m over 3 years.
SERVICE MANAGEMENT PRODUCTIVITY PROGRAMME
* This contract was signed by A+TC with PO.on 1st October, with the initial
order for design of the Royal Mail East Anglia network. management worth an
estimated £500k. This follows an 18-month sales campaign involving two sets
of ITT and the usual presentations, reference visits and negotiations.
Competition for this final phase was IBM and DMR. Good work by Chris
Mitchell A+TC’sales and Tony Gale, Chief Architect.
MODERN GOVERNMENT
e The general pace-of development-across government remains painfully slow
and Post Office are buried in the-implications of setting up the.new business
units: Government Gateway does not appear to be a priority.
COMMERCE
e Following a series of meetings with Electronic Services Business Unit, run by
Jim Pang, and Graham Marriner in PORG, we are working with EBS to
develop a case for PO moving ahead with ICL.
CORPORATE CLIENTS
¢ Following my meeting with Ken Wright, MD Corporate Clients, we have had
two meetings with the PO Client Director for DVLA, facilitating discussions
with Anne Ware.ICL Client Director for DETR, regarding the current Vehicle
Inspectorate (MoT) bid and the future rebid of DVLA.
KNOWLEDGE CLUB
e [have arranged for Post office to join Elizabeth Lank’s new ICL-led
“Knowledge Club: A Consortium of Companies Intending to Thrive in the
Knowledge Society.” First meeting held Oct 6th.
¢ Other founder members are:
e Bank of Scotland
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y Report Date: 21/10/99
e Centrica
e Department of Trade and Industry
e ICL
e Kingfisher
e Leeds City Council
CURRENT CONTRACTS - TECHNICAL RESOURCES SUPPLY/ ICL ONSITE
CONTRACT
e The troublesome Onsite contract will, by agreement with the Post Office, be
wound down in its current form as it-is not delivering what either party
expected.
« The Technical Resources (bodyshop) contract continues successfully with
revenues now increasing. Government Division have, with our
encouragement, submitted new pricing based on higher rates for ICL
professional consultancy and project management - these have been accepted.
NEW BID - HELP DESK
e From a long list of eleven suppliers we expect to be shortlisted for the ITT,
now due for issue 7 Nov (one month slip). It has taken substantial effort from
John Bell to get OSD to treat this professionally. Competition expected from +
IBM, Andersens, Sema, PwC, Dun & Bradstreet.
1999 BUSINESS
e MC business has held up well, but will be severely impacted from now until
February by PO’s Year2000 moratorium. In September Pathway delivered a
substantial profit (but Sep figures not yet.available).
e Latest available figures April-August 1999:
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DIV REV
GM
MC 8,291k 877k
Govt 926k 133k
OSD 331k 258k
Pathway 1,541k 49k
TOTALS 11,090k 1,317k
COST DOWN
~ ~~ e No change. ~ -
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