ICL Pathway
Bringing
Technology
to Post Office
Counters
May 2000
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Monthly
Progress
Report
(CL
SO
FUJ00058191
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ICL Pathway Monthly Progress Report
Contents:
Managing Director’s Summary
F— 4
ze Development Report
= Commercial & Financial Report
ae Customer Requirements Report
Ss Customer Service Report
= Quality & Risk Report
ys .
e/a Business Development Report
Implementation Report
Organisation & Personnel Report
Post Office Client Report
a
il
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Managing
Director’s
Summary
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ICL Pathway Programme Monthly Report Ref: PA/REP/OS0
Version: 1.0
Date: 07/06/2000
Document Title: ICL Pathway Monthly Report— May 2000
Associated Documents:
Reference “Vers Date ‘Title : Source
an) PM/PRO/002 1.0 26/09/96 Pathway Programme - Project
Planning, Reporting and Gontrol
Approval Authorities:
Name . - Position Signature Date
M. Stares : Managing Director
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ICL Pathway Managing Director's Report Ref: PA/REP/OSO
. Version; . 1.0
Date: 07/06/2000
Managing Director’s Summary
June 2000
PROGRESS AND ISS
SINCE LAST MONTH
As reported last month, generally good progress is being made, although there are still
significant pressure points as we approach crunch time on CSR+ and as we stress our
systems and processes with the ever increasing number of live Post Offices.
Tough Budgets have now been set at line unit level which reflect the requirements of
the Business Plan at this stage. These include a large cost down clement and
incremental business growth, as well as very significant risk management.
Rollout is on track. We have now migrated 7600 post offices and are achieving in
excess of 320 implementations per week. We are now ahead of plan. We have trained
in excess of 26000 Post Office staff. This performance is recognised. by PO and
relationships are developing positively. Training scheduling remains a problem area but
urgent corrective action has been taken to respond to complaints from PO Directors.
The Pathway team is now also working with the PFI projects to manage other rollout
programs.
Weekly service performance is a key issue and recent problems with Help Desk service
have significantly dented PO confidence. March and April were disastrous months on
OSD service levels, driven by major resource issucs (staffing levels) on the Horizon
System Help Desk. Nearly all of the SLA’s have beeri missed and significant penalties
incurred. This is an own goal and should have been prevented. As reported last month,
it is on Red Alert and OSD have reacted decisively and professionally to implement
corrective action. Their management has been changed and over 40 new help desk staff
recruited along with a plan to recruit at a pace to handle the weekly increase in Post
Offices and to cover for attrition. This has driven a dramatic improvement and this
weck we are now back on target with 7 of the 10 key SLA’s. The sensitivity of this
situation cannot be overstated. It is highly visible and has brought firm reaction from
PO Directors. It will take week on weck, month on month good performance to
recover our position.
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ICL Pathway Managing Director's Report Ref: PA/REP/OSO
Version: 1.0
Date: 07/06/2000 ___
C13/VPN has been rolled out successfully. CSR +-is behind where we would like it to be
and is being tightly managed through this critical phase. This is a major end to end
software release with big functionality additions such as Smart Card and_ stock
replenishment. Latest B&TC test results show that we are on a knife-edge. PO
decision to proceed with user confidence test (UCT) is planned for 16th June. This is a
6-week program leading to CSR+ pilot, which is currently scheduled for 14th August
in 300 offices. PO decision on roll out is planned for 6th September. We will delay the
product rather than risk significant service issues.
Headcount management remains a big issue and is getting considerable attention. A lot
of progress has been. made in retaining kcy staff. We have now entered a vulnerable
phase where we are highly dependent on kcy skills and motivation but at the same time
need to manage the start of a heavy cost down program, particularly amongst freelance
staff. We are also in a rapidly developing.scenario regarding new business opportunities
including Network Banking, EFTPOS, Project ERA and Clicnt Reengincering. These ,;
opportunities will demand a range of skills and resources. Forward projection shows .
significant TDA, Development and Testing resource peaks over the next two years and
"* we dre now working very closely with Clive Fentons Major Projects unit to try and
smooth these issues.
and we know that its imminent release. is causing considerable last minute debate in
Government. Indications are that it will support implementation of ce
Government services from. Post Offices to replace some of the £400M revenue stream
_ being lost through,ACT. This should provide'us with additional-opportunities.
i The long awaited PIU report on the future of the Post Office network is due out shortly
{
t
4
NEW BUSINESS
As indicated above, we are engaged in joint working groups/discussions on Network
Banking, EFTPOS, ERA and Client Reéngincering. There are serious issucs of
managing the required resource profile and securing the ‘required commercial
commitments from PO. However we remain resolute on this and are now on the verge
of securing consultancy contracts worth in excess of £1M.
We await the decision on the Government Gateway bid.
Progress on significant e-commerce initiatives proves difficult with lack of momentum
in the PO. We have now met with Whceclhouse and Dykes/Sweetman. They all
acknowledge the need for fast co-ordinated action but are awaiting the initial
recommendation from the two newly appointed MD’s before committing to any real
action. We continue to promote Crimson,
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ICL Pathway Managing Director's Report Ref: PA/REP/OSO
Version: 1.0
Date: 07/06/2000
We held a further joint Director team planning day with PONU, which resulted in
good relationship development and a number of key actions for jointly progressing
business development.
NETWORK BANKING
ICL FS has been shortlisted for the backend ITT (5 suppliers in total) which is due out
this month. Pathway is the nominated contractor for the Counter and we are evaluating
technical options with PONU and PO Network Banking Unit. We hope to secure a
£500K feasibility study imminently. There are considerable tensions between the two
PO units and we are treading a delicate line in the middle. We have signed
confidentiality agreements, which introduce Chinese Walls between Pathway and FS
and will need careful management.
It is clear that the political environment has reinforced the climate for a Social Bank.
PO current view is that this will be a JV partly owned by PO, available after 2002.
RE-ENGINEERING/ERA
As with Network Banking, joint activities have been proceeding at a pace and Post
Office seem keen to move this forward with us. Initial scoping suggests a £20M plus
opportunity for Pathway, in,a 2001/02:.timeframe. This would underpin Release 4 in
the Business Plan. However, there are: some difficult decisions facing PO as they
balance cost reduction requirements with the investment needs of ERA‘ Their’ Junc
Investment Board has authorised the next phase of this project to March 2001.
EFTPOS
Indications are positive that this will get the go ahead soon. We are currently scoping
this development.
NATIONAL AUDIT REPORT
Latest NAO draft report is in much better shape and is acceptable to us. We would
expect a formal copy to be issued to Keith Todd for comment within the next few days.
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ICL Pathway Managing Director’s Report Ref: PA/REP/OSO
“ Version: 1.0
Date: 07/06/2000
PRESS/INTERNAL IMAGE
A new initiative has been kicked off to rapidly improve the internal and external image
and promotion of Horizon. We are already seeing morc positive préss comment and
PONU are supportive of raising the image within Post Office. We arc also looking at
how we can promote Horizon in an e-business context. We are secking PO Director
level agreement to a joint press‘release in October.
FINANCE/COMMERCIAL/BUSINESS PLAN
Please see separate report.
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ICL Pathway Development Report Ref: PA/REP/OS0
Version: 1.0
Date: 07/06/2000.
Development Report
MONTHLY SUMMARY
e We encountered several incidents in the live system regarding the imbalance of
receipts and payments which are proving very difficult to isolate. We are obligated
to use best endeavours to resolve these quickly and satisfactorily and although there
are no penalties associated with our performance, their presence does undermine
our credibility with respect to maintaining the financial integrity of the system.
e The correspondence server upgrade in the data centres designed to provide extra
capacity is progressing according to plan, several ctitical stages have been completed
but the exercise is not scheduled to be finished until the end of July.
he fourth, “oydle of the Business and Technical Conformance testing completed on
the 10% May and the fifth cycle is now in progress. The fourth cycle achieved a pass
rate of 93% against 21101 scripts, which equates to an 86% coverage. The fifth
cycle’ will be longer than originally planned to enable the software baseline to
stabilise before.entering the User Confidence Test on 23” June. The sixth and final
cycle (the ‘audit’ pass) will now run in parallel with UCT but is still planned to be
completed I before the customer UCT2 decision point on 14" July.
Horizon completed the second and third cycles of their end to end testing in May as
planned. A target test to demonstrate a few important fixes is scheduled to take 5
“place betweéii 7-12" June followed by the full User Confidence Test 23" June -
21" July. *
¢ . We. are experiencing-a number of difficultics with the CSR to CSR+ migration
. process on the counter software baseline. In addition, the number of fixes being
“delivered into the UCT baseline is causing some destabilisation in the test
environments.
e We have been very successful in retaining many of our key staff for the immediate
future but the-issue will return within the next few months if there is no new
development work.
1
PROGRESS
e The fourth B&TC testing cycle exercised 86% of the scripts and achicved a 93%
success rate. The tests deferred were related to the Quantum and SPM smart cards
and the special 20 counter rig which repeats certain test scripts against a very large
message store. The latter was caused by environmental difficulties not application
faults. Horizon have told us informally that the Quantum and SPM smarts cards
will not be included in. the live pilot due to the problems with their ‘back-end’
systems. We expect formal written confirmation of this during June.
° The fifth B&TC cycle started on the 12" May and has been extended until 19"
June. The final audit pass is now scheduled to occur between 20" June and the 11"
July and will provide additional input to the UCT2 decision 14" July.
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Version: 1.0
Date: 07/06/2000
¢ The functional elements, which we were monitoring very carefully, have performed
well. Audit has only experienced a few minor problems, the Fix State of the Data
Warehouse has moved on considerably and we expect a major improvement in
cycle five. We have seen very significant performance improvements in the EPOSS
stock unit rollover and cash flow reports and believe we have isolated the problem
with the adjust stock function. There are still a few issucs remaining but we arc
confident that we will be able to resolve them. Although the AP Host suite has
improved, we are still encountering too many niggling issucs.
¢ The Customer PET cycles are now complete and a target test phase enabling
essential fixes to be applied prior to the User Confidence Test (23" June - 21% July)
has been scheduled for 7 — 12" June. Horizon will determine whether it is
necessary to lunch a further run of the UCT on 14" July. If after reviewing all the
test results they insist on this second run, it will take place between 7 August — 1“
September and delay the release of CSR+ from 11" September to 16" October.
e The CSR (C13) to CSR+ (C4) migration process is complex and time consuming
and therefore carries high risk and is consequently receiving considerable
management attention. Recent technical issues have forced us to review the current
upgrade plan which may take longer than originally anticipated. The full impact of
this has yet to be established.
© Progress on the mobile and satellite technical solutions continues according to plan
but the contractual and commercial arrangements with our suppliers and the
customer as yet to be finalised.
* Asset of management and corrective action plans have been produced in preparation
for the 1509001 accreditation by September 2000.
COST DOWN
* No new initiatives have emerged this month.
CURRENT CRITICAL PROBLEMS
¢ The mechanism for upgrading Microsoft Explorer remotely has seriously impacted
the CSR to CSR+ upgrade plan. The size of the data/software package to be
distributed has been increased significantly and three extra reboots are required.
This will impinge on all other activitics planned to occur before Christmas c.g.
Infrastructure update.
e ‘The target test may not be successful resulting in the need to rerun certain scripts
and delay the start of UCT.
¢ The number of unresolved incidents reported from our final audit pass may causc
the customer to insist upon a further run of UCT ic. UCT2
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Version; 1.0
Date: 07/06/2000
e We arc struggling to mect the deadlines associated with delivering the automated
Tivoli migration process. This was planned to occtir in the carly stages of the UCT
but further testing is required. An alternative approach is being discussed with
Horizon Management.
e We must ensure that the results from the Performance and Integration testing are
positive and available before the 14" July UCT2 decision.
ISSUES
e The delivery plans and financial forecasts for 2000/01 are currently under review to
establish the impact of introducing a number of new devclopments e.g. network
banking, re-cnginecring, EFTPOS etc. The existing forecast assumes a significant
reduction in staff during the next few months. Discussions with Horizon, PONU
_ and. NBU. continue.
° The ISDN element of the OBCS foreign response time is non-compliant with the:
contracted requirement. The solution has been defined and the changes are being
scheduled into the future release plan:
® The Operational Change Management System (OCMS) “which supports Customer
Services in responding to Post Office changes (e.g. closed & new outlets) which may
‘occur in the live network during and after rollout is running late. It has been subject
to several delays.caused by the work required on the RODB and SME-and we have~
how: encountered a major functional shortfall. The schedule and cost implications: *
of the options available to address this issue are currently being evaluated. In the»)
tneantime, CS continues to provide this service via manual procésses but this will be
unsustainable ji in the not too distant future.
¢- When a-Post Office is temporary closed for more than 3 weeks, we have difficult)” :
reinstating the business because much of the relevant data has been archived.
Fortunately, this has not yet occurred but we are certain that it will before rollout
finishes: Workshops have been held to determine the best way forward and a
change proposal is being impacted.
COSTS
The development activities continue to progress in accordance with the forecasts and
remain under tight control.and subject to regular financial reviews.
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ICL Pathway Commercial & Financial Report Ref: PA/REP/OSO
Version: 1.0
Date: _ 07/06/2000
Commercial & Financial Report
MONTHLY SUMMARY
. Financial results continue better than Forecast and Budget. The second milestone
payment was received from POCL on 31st May, the due date, and one day earlier
than Budget. As a result, the month end cash position was some £110m better
than Budget.
. Departmental Budgets were finalised as planned last month. There is generally a
good match between the ‘negotiated’ bottom up forecasts and the Business Plan.
° Best judgement forecast positions for each of Network Banking, Project ERA and
Client re-engineering including EFTPOS add to some £4.5m of revenue this
financial year. The Budget is de-risked to £2.9m. Uncertainty remains high and
supply/demand matching extremely difficult to predict and manage. There was a
key Post Office ISC meeting on 7" June and we hope to learn more at the team
_ away day on.{2" June.
¢ — POCL have decided they want to go ahead with the Proof of Concept for the web
browser approach, with Escher leading on the web browser. The concern is that
. expectations: will be too high. Ts and Cs have still to be finalised, as docs,
agreement tothe'price, which will be in the region of £700k (of which £400k is
Escher). We still:nced.to get ourselves completely aligned with Escher on work
share, mindset and delivery.
. POCL have deferred: the AIS:,work until after the selection of the Network
Banking Engihé'supplier.. This is likely to add significant risk to the programme.
. Project ERA has been given the go-ahead, but on a slower work plan than the
PID. Resource: demand ° is. likely to fall more on Development than on
Requirements.
° POCL are shaping. ur
‘o hit us on.SLAs and Training. This was predicted for
s:that, in the case of help desk metrics, we will have failed
to meet all criteria for. three ‘successive quarters. That gives POCL the right to
terminate the contract. We don’t expect them to want to do that, but they can be
expected to use the ‘default’ as a lever to force us to do better and make
concessions.
¢ In addition, we have operational/contractual issues on repair file transfers to ‘FIP
and (still) on individual transaction times. The ball is in POCL’s court on both.
. On CSR+, AP clicnts and Siemens are running late, and CCNs for satellite and
mobiles have still to be signed off. This, taken together with the SLA/Training
issucs, all amounts to risk around holding timescales for implementation. We also
need to assure ourselves as to performance and migration.
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Version: 1.0
Dare: 07/06/2000 ___
° The new Shared Services. Oracle suite including Project Accounting is now being
implemented in Pathway. There :is still some confusion over RTR implementation,
in relation to whethera Propel intercept is'viable without undue delay. The view
is probably not: There is also uncertainty over the RTR/OPA link, but Propel FSS
have committed to take our requirement seriously.
PROGRESS
e- Continuing excellent progress on roll out.
. Mostly good progress on CSR+.
° Project ERA sign off: a predictable workflow should now be achievable:
. ISC go ahead given for the Network Banking ITT and. the Proof of Concept,
although the CCN remains to be signed off, the sequence of work commitments is
all wrong and it is far from clear that web browser approach is right for Network
Banking.
° In addition to Network Banking, the PIU is likely to propose a pilot in 2001 of
Better Government over the counter.
¢ Ts and Cs for the new work are close to being finalised.
RISKS
° POCL perception of SLAs and Training, and also of our commercial attitude to
risk taking on new business: all negative as cpitomised by the recent Dave:Miller
letter. Hopefully the away day will.improve that perception: Risk remains that
POCL will extract commercial concessions out of us (mcaning unbudgeted cost).
° Network Banking expectations and lack of best practice (CSLC/Macroscope)
approach to programme delivery on the part of POCL. Control of Escher.
° Resource supply/demand matching, planning and hence resource management.
° Because of delays to new business, the CSR+/ new business bathtub now looks
deeper than it did a couple of months ago. That implics a shift cowards Option A
and rebuilding according to new demand, rather than rollover. That will require
very adroit management.
e — Ability of A&TC, OSD and KnowledgePool to support the necessary resourcing
and performance levels. Stil] an issue (OSD on Red Alert re. help desk).
ISSUES
As risks above.
FINANCIAL PERFORMANCE
The Controller’s report follows.
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Version: 1.0
Date: 07/06/2000
TCi Pathway
Division
ICL Monthly
‘Report - May
}2000
=m Actual
[Current Month [1D a” Haif [Current Half Year
Actual Budget B/W) Budget [Actual Budget BAW) Budget [Feast Budget B/W)
Total Revenue 22.2 21.7 0.5 48.9 48.4 10.5 132.6 132.2 0.4
Revenue Growth i a ~ a I
(Ongoing Operating Profit/ I2.3 23 0.2 5.4 5.4 a 44.0 14.0 I
PBT
[Ongoing Operating Profit % I10.5% I10.5% 10.5% 10.5% 10.5% 10.5% ~
Net Borrowings / (Cash) 25.4 135.6 110.2 [25-4 135.6 2110.2 427.9 123.6 (4.3)
Net Inventories 27.6 31.0 3.4 27.6 (31.0 3.4 13.3 3.4 Ot I
Net Receivables 0.4 104.4 104.4 0.4 204.4 104.4 0.6 oe -
[Total Trade Creditors /10.0 10.3 0.3 10.0 10.3 0.3 17 24 0.4
1
I I ; : I
Employees 205 [ea2 7 l205 [212 7 219 219 I
: = I
Non-permanent Staff 9 {10 Fy iS 20 ft 10 10 - I
a I I L 4 — I
Total Headcount lana (222 is i214 222 8 [229 229
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ICL Pathway Commercial & Financial Report Ref: PA/REP/OSO
Version: 1.0
Date: 07/06/2000
Comments on Current Month Actual
Revenue growth / decrease: Revenue was £0.5m better than budget due to the
continuing favourable rollout performance. The 7,013 post offices installed as at the
last Friday of the month was 30 offices ahead of budget; each office is currently worth
£17.4k in revenue recognition terms.
Gross Margin: see PBT
Operating Expenses: Headcount related costs were slightly favourable to budget,
reflecting the lower than budgeted headcount levels. Other contract-related
expenditure tracked the beat-rate of the implementation and growing operational base
of post offices; but. pre-installation survey and modification costs were lower than
budgeted because of a change in the sub-contractual arrangements. This is merely a
timing issue.
PBT: Profit recognition at 10.5% (within the average of 11% budgeted for the year as
a whole) produced. a small. favourable PBT variance, which tracked the revenue
performance.
Borrowings: The huge £110.2im favourable borrowings variance was mainly due to
having received the £104m.payment from POCL for the latest milestone achievement
on 31st May instead of the budgeted 1st June. The balance of the favourable variance
was caused principally by the. forecast having underestimated the accruals position at
the end of the month.
Increase / Decrease in Employees: Reported permanent headcount of 205 was 7 lower
than forecast. Overall resource utilisation on the Pathway project - including
Freelancers and cApplications Contractors was 580, which was a total of 13 heads
lower than forecast. ‘The matching of available skills to demand continues to place
demands on managers across the company.
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== Customer
ih,
Ninn
—
——_—,
- == Requirements
Report
* Other ‘business:
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ICL Pathway Customer Requirements Report Ref: PA/REP/OS0
Version: 1.0
Date: 07/06/2000
Customer Requirements Report
MONTHLY SUMMARY
Progress on both Network Banking and ERA has stopped this month, awaiting
resolution of funding issues. The first Network Banking deliverable - the working draft
Interface Specification - has, in fact, been completed and awaits delivery to the
customer. Resolution of a first funding tranche for Network Banking is now imminent
with prospects of progress resuming during June.
Progress has continued on the EFTPOS front with the debit card usage report
completed and passed to PONU, whose review is awaited.
. A start has been made on Propel with initial training on Macroscope started and
further training on Propel Engineering tools planned for June.
as continued as per normal, with increased emphasis emiphasis this
month on re: olution, of PINICLs.
_.NEW BUSINESS REQUIREMENTS
Network Bahking
Tony H and Daye H produced the initial working draft Pathway/Network Banking
Engine Interface Specification. The document has not yet been handed over to POCL,,
and work has been suspended, awaiting a signed CCN from POCL. The initial CCN
relating to the activity has been reworked at POCL request to reduce the immediate
commitments.
The Terms of Reference for producing the interface specification have now been split ©
into two parts. The first CCN will be for 10mandays providing consultancy’ to POCL:
supporting the production of their Network Banking Requirements and Solutions
document. It is intended to follow this initial work with the production of a draft
Network Banking interface specification, which will require close consultation with
POCL and the short-listed banks. The CCN for this is in preparation. Any potential
support for the POCL procurement of the Network Banking Engine, for example
consultancy to deal with bidder’s questions, remains to be identified / agreed.
Various drafts of the POCL ‘Requirements and Solution’ document have becn
reviewed to minimise any divergence between the Pathway and POCL approaches.
Various comments were fed back, including a new Entity Relationship diagram from
Joan T. POCL have now started technical discussions with the.banks and there will be
a need to factor these considerations into the requirements, solution and subsequent
design. The possibility for direct Pathway involvement in such discussions may emerge,
which would provide improved understanding of the required end-to-end design.
Internal discussions have continued, including a Pathway review of the potential use of
the Escher browser based desktop.
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ERA
Funding for this activity is still not agreed and progress is effectively stalled pro tem.
Mike C and Alan P are continuing familiarisation activities, including attendance at an
in-house Postmaster’s training course.
Service Development Plan
There has been little. activity on this from POCL. Dave C supported POCL at an event
for DVLA, which from an observers point of view, highlighted the lack of urgency and
vision that major clients might have expected.
EFTPOS —
“John C completed tie: document covering requirements and outline costs for EFTPOS
itive ‘Method of Payinient. Following review-and authorisation it has been
Pe cr Moroney, the consultant hired by PONU. His review report was
~ Gross-selling “Quick Win’. 8 PONU' MIS
As anticipated, these have both gone quiet duc to Tim Thorpe moving on — this will
need Tesurrecting via Business Development.
ACCEPTANCE LOOSE ENDS
Als
/AI314°— POCL ate requesting that the TMS and OPS Technical Architecture
Specifications are brought up to the CSR+ level, prior to formal closure. This is
progressing within Development.
Reference Data Business Rules
Version 0.8 has just been received for review incorporating Pathway earlicr comments;
it is almost finalised but a few drafting notes remain to be resolved. Geoff Darby is to
finalise and issuc.
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CSR / CSR+
Difficult issues
Mobiles: Progress continues and resolution is now near. Following constructive
comments from POCL, the baseline document was re-issued and a new version ofthe
CCN, referencing it, will follow. The one outstanding issue (for the CCN) is the
relationship between mobiles and the existing SLAs for counter performance and data
file / reference data delivery deadlines, A review on this specific aspect between POCL
(Liz Tuddenham) and Peter Robinson is to be arranged.
Satellite: POCL comments on the CCN have been reviewed and a new version of the
CCN is in preparation with generic service description replacing the reference to
Hughes / Olivetti. Most POCL comments are relatively minor-and relate to consistency
in replicating the documentation changes in across the various affected contract
schedules and other CCDs. The question of contingency approach to primary satellite
failure remains outstanding and once this is resolved (expected at, or immediately
following, the BT/Energis meeting of 8" Junc) the CCN will be resubmitted.
Main CCD Updates
SADD Version 5.3, was published as planned on 12/S. .
APS . .
The AP Client Migration plan continues with AP Client Specs now being prepared i
approx. every other week. Knowsley BC, Hampshire and Mid Kent are now approved,
with Girobank issued for review, and Oxfordshire SS and Yorkshire Electricity due for
issue this week.
Our FTMS solution is being extended with a user friendly front end for DVLNI and an
FTP interface for Girobank. These could become available for other Clients as
required.
POCGL's discussions with BT on client migration are still not going smoothly. BT
basically don’t want any change from existing interfaces and procedur
The AP Client Disaster Recovery proposal document (in response to CR) is now
prepared and issued to POCL for review.
POCL have now withdrawn their revised CR for token verification and are planning to
revert fo our original specification, issued October last year.
POCL have advised that there are delays with both British Gas’s (SPM) and Sicmens's
(Quantum) host developments. They have.advised that the current testing programmes
can continue and they believe that they now have agreements for both services to be
implemented as part of day one CSR+. ‘The Pathway Risk manager (Nigel Kermode)
has been briefed, and a more formal statement from POCL is expected next week.
Parcel Traffic
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CCN 631 was re-issued as CCN 631a, as a cheaper cut down version of the original
proposal; POCL have signed this.
TIP Disaster Recovery Interface
The DR interface proposal is now accepted and POCL's DR site has been announced as
in Isleworth Middx. Michacl Fiore is project managing this for Pathway. A
specification document formalising all of this has been prepared and is under review,
prior to issue as a CCD ina few
TIP Interface - Repair Files
This issue continues to run. We are taking a very firm line, through John P, that our :
solution complics with the AIS. There was a second failure last week (in which about :
1400 records:were dropped) for which we sent.a repair file, which they have of cours -
formally rejected.
Reference Data Interface
© Within, the introduction of the new AIS version, PONU aré attempting to change the
volumes sct'out in the AIS (as part of the many changes in new, version). John P ‘is
trying to ensure we don't accept any commitment to higher volumes without
appropriate compensation. .
Business Assurance Matrix (BAM)
All remaining APS issues have been answered.
PROPEL ACTIVITIES
The Requirements group is gearing up to introduce Macroscopé, and Propel
engineering methods for new business opportunitics. Network Banking has been
identified as a ‘Pathfinder’ project. All staff have attended internal briefings on
Macroscope / Propel.
Three staff have started the formal Macroscope training programme for the business
consultant stream with completion of the three day course and entry into the
subsequent self learning stage.
Training on DOORS, the prescribed Propel requirements capture and management
tool, has been arranged. for 5 staff during June, with July earmarked for courses for
remaining staff.
This will provide adequate coverage for the introduction of I Macroscope on the
Network Banking and, when appropriate, ERA projects.
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OTHER ACTIVITIES
PINICLs
The pace on CSR+ has increased over the month and a significant amount of time has
been spent on PINICL clearance. This has also afforded the opportunity for service
familiarisation to recent joiners, particularly Mike C and Alan P.
Training
An Outlet Managers course was arranged for the whole requirements team, excluding
one person absent on holiday. This was particularly beneficial for recent joiners.
ISO 9001
John C has reviewed the, BRD process and reported on this to the 1509000 programme
board. Essentially the project is moving to a new sales driven phase where new
processes will be needed, largely driven by the Customer Solution Lifecycle (CSLC).
Several PA/PRO/xxx: document were reviewed, having been updated by David Groom
as part of the ongoing preparation for audit of the project.
Other
John C has reviewed the:-BRD processiaridireported on this to the 1509000 programme
board. Essentially the’ project is: moving to a new sales driven phase where -new
processes will be needed, largely driven by the Customer Solution Lifecycle (CSLC).
Several PA/PRO/xxx document: were reviewed, having been updated by David Groom
as part of the ongoing preparation for audit of the project.
CURRENT CRITICAL PROBLEMS
The lack of an overall solution design -authority for Network Banking will make
progression of the AIS problematic. Clearly a properly focussed top down approach —
business requirements, solution definition, high level design, interfaces, etc — would
make for a more effective Pathway contribution.
The need to achicve an acceptable solution for the TIP repair facility persists.
ISSUES
None.
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Customer Service Report
MONTHLY SUMMARY
1. Data Centre performance has been very good and there has been maximum
availability of the systems during the reporting period but there have been major
issues with the Audit Servers, which have now been resolved.
2. The War Room sect up to address the issue of non-polled offices has been successful
in removing all FADs that were not polled for over 10 days and the effort is now
geared to get those over 5 days removed.
3. The problem with Northern Ireland Electricity Reference Data has finally been
resolved with successful token transactions completed on 24" May.
4. The Performance Management system implementation project is now underway. A
PID and an outline plan are in preparation.
wn
A further analysis of transactions and message stores across the whole cstate has
confirmed that the barcode-scanning problem is confined to two Outlets.
6. The upgrade of RDS by PONU has caused problem with Reference Data and has
prevented some Cl_3-2 activities taking place as planned.
7. MSU are still receiving Receipts & Payment misbalances in respect of previously
migrated Outlets. Currently a number of system incidents, where software errors
are deemed to have caused the problem, are being tracked with Development.
There is concern that at this stage in the rollout programme these incidents arc still
occurring, when we have given assurances to POCL that all software problems have
been eradicated.
8. Pathway is currently unable to agree the March Manual Error Report charges with
POCL. The contention surrounds the incidents that occurred following the Ref.
Data ‘PLU’ anomaly that allowed the selection of 8 products, which could not be
mapped to the Cash Account.
9. To 24" May, 50 complaints were logged by NBSC, 31 of which concerned the
HSH. They are taking positive steps to climinate the root causes of these complaints
in conjunction with their Red Alert activities.
10. 1t has now been proved that the problems at Guiseley are duc to interference on the
power supply caused by poor earthing. An isolation transformer is to be produced
to filter out the noise.
VITAL STATISTICS
This data is now available on the Customer Service web site at the following location:
hrtp://iclpathway.bra01icl.co.uk/weekly%20report/titlepage. htm
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PROGRESS
OPERATIONS
Availability Management
1. Data Centre performance has been very good and there has been maximum
availability of all the systems during the reporting period. The index corruption
issues with the Audit Servers have been resolved and work is underway and work is
underway to recover the file indices for hoard instances between 15" March and
26" April.
2. An operational test of the Host fail-over from Bootle to Wigan successfully took
place on Friday 12" May at 05:30 with a successful fail-back at 05:30 on Sunday
14" May.
3. There was one major Network incident, during the reporting period when the
Energis process to convert telephone numbers in accordance with BT changes,
failed for Northern Ircland Post Offices. Energis have provided an explanation of
the incident to Stephen Muchow.
4. The first review with SMC following their management changes was held with
Chris Banfield and Peter Burden on 23" May.
Reference Data
1. The major difficulty that has arisen in the reporting period centres on PONU RDS
and its upgrade to produce CSR+ format files. A number of problems were
encountered and at one stage PONU considered regressing their database to the
state as at the end of 12" May. However a decision was made to go forward. Thus
the first stage of CSR+ migration, production of CSR+ format data from the live
PONU RDS system, has not been successful and has impacted some planned CI_3.2
activities.
2. The problem with Northern Ireland Electricity Reference Data has finally been
resolved with a fix delivered to the test Counters on 23 May and successful token
transactions completed on 24" May. A correct test file was delivered to POCL on
25"" May.
SLA Management
1. The War Room sct up to address the issue of non-polled offices has been successful
in removing all FADs that were not polled for over 10 days and the effort is now
geared to get those over 5 days removed.
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2. Despite assurances from TIP that OpTIP would not impact on Pathway, a problem
has arisen now they are parallel running OpTIP with iTIP. The problem is being
managed and contained. A Disaster Recovery site is still to be agreed by POCL but
they have now agreed with the solution and the process for the ordering of the kit
etc. can now begin.
3. Julia Bowes left on 19" May, having handed responsibility for APCM to Anne
Cooper. Klaus Loffler joined CS on 16" May to work alongside Anne, with a brief
to take over APCM at the end of June. The CCN for changing the CTS.file delivery
deadlines has been rejected. The schedule times are currchtly béing examined to
establish how an acceptable timetable can be achieved. POCL. are likely to escalate
this internally as an important business issue.
Performance Management
The Pérformance ; Managemenit system implementation project is now underway. A PID,
and an ‘outline ‘plan are in préparation. An initial training course is scheduled for the
week commencing se June although there are still issues associated with security and
the tise of Tivoli to bé resolved.
VICES
General
1. A test procedure has been proposed by Welch-Allyn to check that none of the stock ot
of bar code scanners awaiting installation suffers from faulty ASIC ‘chips. A meeting Dit
is to be held this weck with Implementation to determine the plan for implementing:
this test procedure. In the meantime a further transaction analysis has been carried
out on the live estate and no further problems have been identified.
2N
The initial mecting of the Joint Release Review Forum has been held with PONU. “¢ -
¢ The Joint Release Review Forum JRRF) is a joint PONU and ICL Pathway forum
that provides PONU with the opportunity to review and agree release. activitics.
3. A BSI pre-assessment has been carried out on OTT. Two non-conformances were
identified relating to the need for additional procedures. These non-conformances
arc being addressed
4. The new management appointments in the SMC have now had the opportunity to
get up to speed with SMC's:issucs and CS reviews with the new manageinent team
are being put in place.
5. TcamWARE has now vacated the East Side of the 6th floor at BRAOI and it is
anticipated that the additional SSC staff recently recruited will be able to begin to
relocate at the end of this week.
6. The quarterly SSC Business Continuity walk-through has taken place - some minor
documentation updates were required.
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Major Release Implementation
1. VPN migration is:still continuing and is still missing a handful of Outlets. The
remaining Outlets arc being investigated and re-addressed.
2. The Cl_3-2 implementation plan is virtually complete bur as time goes by a few
additional issues are being found and addressed. The upgrade of RDS by PONU has
caused problem with Reference Data and has. prevented some Cl_3-2 upgrade
activities taking place as planned. Input is awaited from PONU regarding a date
when they expect to be ready.
3. CI_4 implementation planning is under way via a number of forums. There are
currently three.forums to discuss Cl_4 implementation planning - Data Centre,
Counter and KMS. The issues around the Counter migration were discussed on
Tuesday 30" May.
ming, through and VPN migration is now all but complete (3 Counters
upgraded). 61 Release Notes have been raised over the reporting
6 have becn authorised for live. 6 Release Notes have been withdrawn
ime period and 4 rejected.
the extension of the use of TIVOLI is still in progress.
4. Faliowiig ih ther review of responsibilities we are actively secking another Release
Controller and administration support for Release Management.
ISSUES
ae On-going support for: TeamWARE Crypto is still not tied down. This issue is being
. pursued ‘with TeamWARE Group.
METRICS 4
For the month of May 2000.
Release Notes cleared by OTT 34
Total Calls raised through SSC 1595
Total Calls closed through SSC * 1668
Of the total calls closed, 552 were in categories (c.g. Advice and Guidance,
Published Known Error) which should have been closed by SMC.
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INFRASTRUCTURE SERVICES
MANAGEMENT SUPPORT UNIT
Business Incident Management
1.
MSU are still receiving Reccipts & Payment misbalanccs in respect of previously
migrated Outlets. We are currently tracking a number of system incidents with
Development where software errors are déemed to have caused the problem. There
is concern that at this.stage in the rollout programme these incidents are still
occurring, when we have given assurances to POCL that all software problems have
been eradicated. The trend seems to show“'new' problems occurring following the
distribution of a particular fix to the Outlets, which may not have been tested
thoroughly. The system incidents generated reflect this position.
MSU are currently involved in the PET testing of both the Cl_4 APS and EPOSS
reconciliation reports. Full end to end testing is taking place with POCL
involvement, which includes the raising of dummy incidents in respect of errors:
generated. Testing is currently thought to be progressing well. ‘
Pathway is-currently unable to agree the March Manual Error Report charges with
POCL. The main area of contention surrounds the incidents that occurred ‘
following the Ref. Data 'PLU' anomaly that allowed thé sclection of 8 products, ;
which could not be mapped to the Cash Account. POCL argue that the system,
behaved inconsistently as these products could not be accessed from the ICON but
only from the PLU. Pathway argue that the products, which were.invalid, should
not have been included within the Reference Data. All incidents will now be
escalated to the Contract Admin, Board for agreement in accordance with the
established procedure.
Following the non-polling exercise conducted with the involvement of key areas
within Pathway, MSU are now using the revised processes to. initiate the resolution
of problems causing Outlets to fail to poll. Early indications show that the number
of non-polled Outlets appearing on the non-polling report in excess.of 5 days is
now reducing.
MSU have now completed a review of all outstanding BIMS cases and forwarded
updates to PONU where these are available. This should now avoid any criticism
from PONU re our performance against SLA. We are however, still experiencing
difficulty in getting a quick response from Development against outstanding
pinICLs raised by MSU in respect of System Incidents. This is causing some concern
within PONU, as we need to advise the cause of an error and when it will be fixed.
This has now been escalated within ICL Pathway via the Management Team for a
speedy response to outstanding incidents.
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6. Asim Mushtaq has joined MSU in his primary role of Information Analyst.
However, he will be receiving full training on all aspects of Business Incident
Management to provide cover on this function during absence. Ilka Khoeler-Wain
joined the team on 30 May as the new Business Incident Administrator.
MIS
1. The weekly report has now evolved into a useful tool, which is being used by many
areas of the business. Internal procedures within MSU, are now in place to ensure
the report is produced in a timely manner with the minimum of pain! It is
disappointing however that little feedback is received as to the quality and content
of the information contained therein.
2. Ad hoc queries received from POCL, although now more complicated and detailed
in nature, continue to be turned around within the required time scales. Some of
the querics now being answered require a good deal of investigative work via the
data warehouse in order to obtain the results required by POCL.
IT SUPPORT (FELTHAM)
No major issues.
BUSINESS EFFECTIVENESS
BET Activities
All work performed by the BET is sponsored by a member of the CS Management
Team and supported by a business justification. Work is progressed in accordance with
the business priority. 15 different ‘projects’ were addressed during May.
Business Process Engineering and Quality Management
1. Major changes in the way CS defines service policy and service management
processes were implemented during May. The revised approach removes
duplication, simplifies documentation, reduces the overhead associated with
documentation maintenance and prepares CS for the future BSI audit. The date of
the BSI audit is not yet fixed. However, for planning purposes it has been assumed
thar the audit will not be before the 23" July. More detailed planning will be
carried out when the audit date is confirmed.
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2. The new approach introduces a new CS Policy Manual and a new CS Process
Manual. In addition, all existing process documentation is being reviewed with the
objective of withdrawing documents that arc no longer part of the “new maintained
documentation set” and simplifying others so that information is only recorded
once. The existing CS Operations Manuals continue as before and reflect the CS
organisational structure. However, process definitions will be removed before the
BSI audit and cross-references made, where applicable, to the “new maintained
documentation set”.
Framework Steering Group
The reformed FSG focuses on service management policy. It is expected that in the
future it will also lead joint quality audits. The FSG is a joint ICL Pathway CS and
PONU working group with equal authority. The chair rotates. The inaugural mecting
during May re-cstablishedi the working relationship the existed during 1999. Both
organisations have agreed‘to seck satification of the new Terms of Reference, by the
Horizon Service Review Forum, by end of June / early July. The reformed FSG is
already providing benefit'to both organisations but the planned BSI audit is creating
more urgency on the ICL: Pathway CS side. As a result the BET has volunteered to re-
write and consolidate the current,Service Management Framework documents into a
single, joint’ policy, reference document by the end of June. Both organisations will
approve the re-written policy.document.
ICL Pathway / OSD Process Validation Group
There is an ongoing, need/: to’ vali ate he: key ICL Pathway. End-to-end Service
Management Processes’ with OSD’ process authoritiés.’ Ongoing changes in OSD
organisations have in the past.made it difficult to track the “OSD process authoritics”
and operational issues:lave,tended to create an environment that focuses on the short
term. The joint Process Validation Group will address this weakness and enable both
organisations to be more proactive in. optimising the underlying service management
processes. A preliminary meeting: held.in.May enabled an exchange of views and the
establishment of draft TOR. TOR will{be agreed during June and routine monthly
meetings will be established!”
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Alignment with Propel and Macroscope
ICL has announced that Macroscope replaces ICL’s earlier methodologies. In effect
this means that the “ICL Pathway-CS Process Engineering Method” is now superseded.
In the short term this'will cause no embarrassment because the approach used within
the BET is built on.robust gencral principles. However, it needs to be recognised that
the BET'team works very closely with PONU and will have:significant interactions with
PONU clients in the coming months as direct APS links are established. Therefore it is
planned to align the BET work with Propel and Macroscope initiatives ASAP and
appropriate training for the BET staff will be sought as a high priority. ICL Pathway
CS has an opportunity to become a showcase for the new initiatives. There are also
opportunitics for CS to work closer with other Pathway Directorates to make the
whole of Pathway a showcase.
STRATEGIC SERVICES UNIT
Business As Usual
1. OSD Red Alert
The last three weeks have sccn. an improvement in the performance of the
telephone answering SLAs - still someway to go though. There have also been
improvements across al] other SLAs.
2. Horizon Service Review Forum
For the second month running POCL did not feedback questions to the revicw
book. It came out later that'this was because-the service was so. poor. Paul Westfield
pre-empted this by presenting the weekly results with details of actions taken - this
gave the information they needed to present into POCL.
3. Help Desk Forum
a.At May's HSH/NBSC review, in response to the -revaluation exercise, it was
decided that a subgroup would be formed to define a cohesive approach to
managing change.
b.The Miscellaneous Transactions Report was introduced this month and despite
instructions in Counter News, large numbers of calls were placed by postmasters
apparently unaware of the new report. This issue is. currently under review with
PONU BSM. The key concern for SSU is PONU's proposal to use distance
learning for the Cl_4 backfill training.
4. Interactive Voice Response (IVR)
The first week's results are very encouraging. ‘Uhe baseline survey showed that 76%
of postmasters were satisfied (or better) with the service. On ICL Pathway's results
this: improved to 87% last week.
5. CSR+ (CI_4)
Work is underway with HSH and SMC Incident Management to ensure their
preparedness for Cl_4.
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Complaints
1. To 24" May, 50 complaints were logged by NBSC, 31 of which concerned the
HSH (typically, unable to get through; no call back; poor advice; time to
resolution). The remainder were related to system functionality.
2. HSH are taking positive steps to climinate the root causes of these complaints in
conjunction with their Alert activitics. Additionally, Strategic Services are working
with CS Opcrations and CS Support to address system-rclated issues as appropriate.
3. There is also ongoing activity with NBSC to more clearly define what constitutes a
complaint.
High
1. Guisley
ility sites
It has now been proved that the problems at Guiseley are duc to interference on the
power supply caused by poor earthing. POCL have requested that Pathway provide
the solution to the problem. The Outlet currently has two resistive and two ‘normal’
screens with the new poor carthing firmware reported last month. These have
shown a stable operating performance over the last month. Hearsley EMC is
conducting environmental tests on 2" June at PONU's request to measure power
supply levels. Once this is established, an isolation transformer will be produced to
filter out the noise.
2.. Dyke Road
Whilst the pure hardware faults have been rectificd, there is still an ongoing
requirement to identify the root cause of the ‘phantom’ transactions. Strategic
Services Unit is working with PONU BSM to arrange a period of observation that
will be intrusive to the Outlet in their day to day work.
3. Gospel Lane
Over the last few weeks, much work has been conducted to find the root cause of
the problems reported by this Outlet. So far, no evidence has been found to
support a system-related fault. Currently, this is suggesting user-related issucs and
to this end a PLM is attending site (1% June) to try to climinate this linc of enquiry.
OCMS
The target date for delivery remains 27" June. A resource is to be assigned to run the UCT of
OCMS on 13" June. Preparation of the detailed implementation plan by Mike Woolgar and
Sharon Tushingham is in progress.
Operational Business Change
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The following firm orders have been raised for changes up to the end of July.
1. Opening/Relocation/Refurbishment (Outlets)
Month Total Actual Deliveries Actual Deliveries
Deliveries I Allowed Within Additional to Contract
t Contract
May 36 8.58 27.42
Month I Total Forecast Deliveries Forecast Deliveries
. Allowed Within Additional to Contract
Orders
Contract
June 42 10.22 31.78
July 12 (12.20 0
2. Closures (Outlets)
Month I Total ‘Actual Deliveries Actual Deliveries
Deliveries Allowed Within Additional to Contract
-Contract
}
May [60° - . {5.36." 0.64
Month I Total:Orders. «I, Forecast Deliveries Forecast Deliveries:
. II Allowed Within Additional to Contract
: ‘Contract
\
June I ‘648 0
July 3 7.62
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a,
Quality
& Risk
Report
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~ margin, and, staffing *issues.-Progres
“Quality”
- 1IS09001. A draft CAP has been submitted to BSi. The Development’ Directorate CAPs
Date: 07/06/2000
Quality & Risk Report
MONTHLY SUMMARY
Security
Continued progress with the KMS. Implementation plan. User documentation is being
progressed. - Technical User Guide Testing has been delayed by build problems;
considerable involvement of QRM is required. The demand for kcys for testing
increases.
_ Risk Management
e risks now reflect new business revenue and
Management. The ‘major business.
‘continues on Disaster Recovery procedures and ,
implementation.”
are now complete. Initial views show that the September target for achievemetit of .. I
1SO9001 is high’tisk. Other’ Direcorate process ‘documentation is making good
progress. QRM now owns the intranet site and the original developer has return to’
bring up to date and develop documentation for maintaining the site.
Audit
New staff (Manager and Auditor) are rapidly coming up to speed. An audit plan has
been produced to support the [509001 programme. Progress continucs to be made on
audits and CAPs. Significant lack of progress in CAPs actions are being transferred to
the Risk Register. The major issue is still the audit solution — problems continue to
plague it’ with the result that large chunks of data cannot be extracted and are having to
be reconstructed.
PROGRESS
RISK MANAGEMENT
e Risk process. Agrced the outline and commenced the documentation of the
Risk Management and Monitoring Process for the purpose of ISO 9001.
e -The Business Case Risk Register. The major risks are now associated with:
@ New Business (weighted, £6.7mn) - margin and volume shortfalls and
our ability to recover costs associated with new business and change.
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© Staff (weighted, £6.6mn) - loss of core staff, ability to recruit to fulfil
new business commitments and meeting the headcount cost down targets.
¢ Implementation risks are reducing as we make successful progress
through the plan, although a new risk has arisen - that of overspend on
training due to underoccupancy of training courses. QRM_ staff are
supporting activity to understand the risk.
¢ Development risks (associated with CSR+) remain stable, the programme
although on schedule is tight and there is a risk of slippage, although with
small! impact on the business case if contained to this year.
e Disaster Recovery Planning:
« An approach for raising awarencss throughout Pathway about DR,
including the production of an incident credit card and campaign
literature, has been agrecd.
* Incident and Crisis Management flowcharts have been revised
(simplified) and defining DR tasks and procedures has started.
SYSTEM SECURITY
CSR
e The draft continuity plan for the security administration workstations is
progressing.
¢ Work continues on a security awareness programme for new and existing
Pathway staff. A new presentation has been base-lined and input to the
induction event is being scoped.
CSR+
© Cryptographic Key material continues to be provided on for test purposes.
e The KMS User Guide has been completed in time for the imminent
Technical User Guide Test (TUGT) which is being scripted. Additional
authors have been engaged to complete the necessary screenshots during
TUGT and the forthcoming Service Operational Readiness Test (SORT)
¢ KMS Implementation. Timescales are being refined and increased granularity
included in the project plan. The fortnightly service introduction workshops
are running in parallel with the Cl4 readiness forum and requirements and
dependencies continue to be identified and mapped. ITC resources are
producing the KMS supporting documentation and scripts required for
SORT. The CP raised for additional hardware and secure storage of
cryptographic key material has been approved and ordering/delivery of
required items is being co-ordinated with accommodation/ facilitics
managers.
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e The impact of OTT requirements for testing automated keys is being
assessed and a solution devised. Any resolution will increase demands on the
limited number of Certification Authority Workstations.
e SME for RODB has been delayed well beyond agreed timescales. A risk
analysis will be required to give some assurance that existing procedures
provide sufficient'security to mitigate the risk until SME isin place.
e Network Sccurity tools. Work has been augmented by the demonstration of
a Pathway developed compliance tool. litroduction will be the subject of an
imminent CP.
QUALITY
1S09001 Programme
© Ascries of Directorate process reviews have been held (Development, HR,
CS) to monitor progress.
e HR.and C&F procedures are being authored by A&TC resource.
e Revision of Quality Procedures has becn progressed including Supplier
Assessment, Continuous Improvement, Supplier Evaluation, Self
Assessment.
e An Action Plan responding to BSi pre-assessment Observations has been *
drafted and circulated to actionces for comment. The Draft Plan has been
forwarded to BSi by required date (28/5) with caveat that revisions may be
required prior to formal issuc.
e The Development Directorate CAPs arc now being finalised — 5 in all.
There is now a very high risk of not achieving the September: target for
1SQ9001.
© Ownership of the intranet has been agreed as with QRM. The site will be
the medium for staff to access the QMS; original documents will reside in
pycs. The original developer has been retained to implement required
changes and new processes, and develop documentation in order to
maintain the site.
© Policies & Standards Acceptance Test. Als 406 and 333 were reviewed
with POCL. We agree that POCL input is required for Al 333 to be
progres The history / status of Al 406 has been agreed and closure of
this Al proposed.
© Q1 2000 Packaging Return (Cardboard / Paper and Plastic usage) has
been calculated and submitted to Group Environmental Affairs.
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AUDIT
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* Lorraine Vaughan has joined as Auditor. An comprehensive audit plan to
support ISO9001 has been produced.
¢ Internal audits:
* Audits arc being defined to support the Development CAPs.
« Resource Management/Personnel. Terms of Reference agreed; audit to
take place 6-9 June.
¢ CSR+ Development. The CAP has been issued. All actions outstanding
have been transferred to the Risk Register.
* Technical Integration. ‘The CAP has been issued; 6 points identified for
follow-up.
* Horizon System HelpDesk. The CAP has been issued; 9 points identified
for follow-up.
© QRM. The CAP has been issued; 12 points identifted for follow-up.
« Change Management. The CAP has been issued; no actions outstanding
© Customer Services Management Processes . The CAP has been issued;
points identified for follow-up.
« Implementation. The CAP has been issued; no actions outstanding.
ISSUES
Start of TUGT has been delayed because of problems in obtaining the required
build release. Presence of the Security Manager and Deputy throughout TUGT
and SORT will place increased demands on the ability to maintain the general
security function.
Readiness for ISO9001 assessment continues to be a major risk.
9
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1.0
07/06/2000
ICL Pathway Business Development Report
Business Development Report
MONTHLY SUMMARY
New Business discussions continue. Progress as follows:
Network Banking:
Last month I reported that the joint working group had identified three specific work
packages that were required from ICL Pathway. These were:
. Proof of concept for the counter interface solution, including adding
“browser” capabilities to Horizon. Escher have now demonstrated a
‘potential’ architecture solution to Network Banking and successfully
whetted the appetites such that the proof of concept has a new life. This is
being evaluated at present, terms of reference are being agreed and the next
step is to estimate the scale of the work nceded and look for approval from
Post Office to proceed. There are significant risks in this approach that are
currently being evaluated.
. Developing a Pathway-preferred interface specification with the banking
hub. This work will now follow the requirements/ solution work.
¢ Joint PO/Pathway work on developing and clarifying requirements and
solutions, and adding further detail to outline solutions to firm up feasibility
and timescales. A CCN has now been raised for 10 days work to move this
exercise.
¢ The Network Banking Engine ITT is planned to be issued by end June.
There is still insufficient clarity about the detail of the ITT.
ERA:
John Hunt is now engaged on the early work on ERA. I understand that there will
shortly be a request for further resource but as yet no action on this.
Service Development Plan
Progress is painfully slow. There appears to be no great onus on che Post Office
Network staff to identify potential enhancements/re-engincering opportunities. We are
proposing a number of changes to them to attempt to prompt them into action. We
need to get closer to their business case process to help them put value added cases
together.
Communications
Slow progress with Post Office. They continue to find reasons not to do things rather
than have a positive approach that might help both businesses.
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PROGRESS
Business Development
EFTPOS: A review of the market and options for automation has now been presented
to Dave Miller by Peter Moroncy. I am lead to believe that this approach proposed
developing EFTPOS on the Horizon platform.
MARKETING COMMUNICATIONS
Internal Communications in ICL Pathway
e¢ Communicated ICL's annual results internally via email and notice boards. ICL
Pathway was requested to attend the actual day and show on a plasma screen the
number of post offices installed at the close of play the previous evening. During
the day, as new. post offices installations completed, the number on the screen was
incremented. This proved to be a great success, thanks to the work of Tony
Southwell and team. , .
e We are now comimunicating CAC and Employee Option Survey, to all employecs,
via email, CafeVIK andinotice boards.
* A very successful SMT (Senior Management Team) event has just taken place on:7"
June 2000 at the “Madjeski Stadium, Reading, with over 70 people attending. The
event covered a.review of the year, feedback from Prague including a session from
Nigel Hartnell, a session from Eric. Logan of the Post Office and some team
building. Feedback has'been: extremely favourable. A’ full evaluation report will be
produced once all’ feedback ist; and will be distributed to the Management Team.
e Weekly emails continue to be sent with automation figures on.
¢ Discussions have started with Post Office regional staff on key messages that we can
relate internally.
ICL Communications
e Discussions have taken place with ICL, for the opportunity to include Horizon
within Future Focus; information has been forwarded and investigations have
started into the likelihood of providing of demonstration system.
¢ Rolling demo has proved a huge success within ICL. Because of its success, we are
updating and having it redesigned by the ‘Design Studio’ in BRAO1, such that we
can distribute it to a wider field.
External Communication
¢ Attended the NFSP Annual Conference in Eastbourne. Speeches of interest
regarding Horizon were by Alan Johnson, MP Minister for Competitiveness and
Don Grey, Post Office - with both speaking positively about Horizon. General view
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from Postmasters was also fairly positive although as expected, Training and
Helpdesks were ‘slated’.
e The Post Office requested two Horizon demonstration systems for the Stamp Show
2000, which took place at Earls Court, 19" - 28" May. The systems ran without
problems all week - the Post Office have since said that they were delighted by the
service,
e The Post Office also requested three Horizon demonstration systems for a show in
Glasgow, 3 - 9" June. Despite the short notice, this has been achieved.
¢ Horizon features have been ‘sold’ into Computing, Computer Weekly, Retail
Technology and Training Strategies for Tomorrow.
Post Office Network comms.
e The next PR meeting between ICL Pathway and the Post Office Network is taking
place on 9" June. The meeting is a continuation on how 'WE' can jointly take this
activity forward. Issues being covered are:
© 10,000" outlet going live
© update from the Post Office on progress towards external PR for Horizon, and
ideas for joint PR activities
© anticipation and planning for issues surrounding forthcoming events, such as the
publication of the PIU and NAO reports.
e A proposal has been written regarding a Horizon “user satisfaction" survey and
forwarded to the Post Office for review.
International
Still some work continuing with Germany.
CRITICAL PROBLEMS
None
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ICL Pathway Implementation Report Ref: PA/REP/OS0
Version: 1.0
Date: 07/06/2000.
Implementation Report
SUMMARY
Since the re-commencement of National Rollout on January 24", twenty wecks of
activity in the rollout programme have been completed to date. The maximum beat
rate of 306 installations is now well established and proven as a repeatable
achicvement. The total number of installed outlets, as of 9" June 2000,was 7,603,
representing 42% of the current number of open Post Office outlets.
Weekly installation achievements continue to be above the target of 306 every week
putting the programme on track to achieve the next payment milestone ahead of the t*
November deadline. The infrastructure programme, in which outlets are made ready
for installation, is now well into the tail end with a well stocked buffer to ensure the
installation programme can continue at its current pace for the foreseeable future.
There are.no new critical concérns within the Implementation scope of work, although
training scheduling continues to be a critical concern for the customer. This is
discussed further under the heading Critical Concerns. The customer has also
expressed concern over the level of ISDN line failures occurring on installation day and
that there have been cases of installation teams not arriving at their scheduled second
installation of a day. Neither of these are considered serious but are described further
under the heading Issues.
The establishment of a Rollout Services group to utilize the experience and skills
amassed by Pathway’s Implementation team on other ICL programmes is continuing.
The team is managing the rollouts of the HMCE and Libra programmes, as well as
Pathway. Itis envisaged that the Rollout Services group will eventually become part of
ICL’s new Large Projects Division.
PROGRESS
The infrastructure programme is into its final stages with approximatcly 2,000 Post
Office outlets remaining which require their preparation activity to be completed. It is
anticipated that the all infrastructure activity will be complete by the end of September
All remaining surveys and preparations in the tail will be completed by Pearce
Securitics following their successful competitive tender for this work. The ntl: contract
will cnd on 30" June although nel: will still be concluding incomplete sites, quality
audits of prepared sites and, until the end of the installation programme, providing a
quick response team on installation day to protect against quality issucs.
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Surveys and preparations for sites requiring the mobile or satellite solutions arc
scheduled for completion during the second half of this year.
Installation programme fallout rates during the 16-weck installation lifecycle and the
installation week remain lower than planned and are generally improving as the
programme moves forward. The main causes of aborted installations continue to be
ISDN line failures and infrastructure programme issucs. The need for outlet capping
(forcible removal from the install schedule due to lack of available HFSO resource)
remains low and is often zero.
The latest version of the Installation Programme Plan, IPP16, was published this month
for review. IPP 16 introduces the requirement to sweep through the country, by RNM
cluster, for a second time commencing in August. It also reflects the predicted
installation dates for mobiles and satellites and includes greater definition of the
installation tail.
Plans for the CSR+ live pilot remain on track.
CSR+ training development is on schedule to meet the dates in the Pathway Level 2
plans although it remains to be resolved whether an extended 2 day Counter Manager’s
course will be implemented rather than compressing the new content into the original
one and a half day course. PONU have accepted that course compression is higher risk
and are currently considering a proposal from the Pathway training team to introduce
the extended course. The course content was agreed at a successful dry ‘run on 12"
May. The software training build for training counters is duc for imminent release
although it is at risk of delay due to issues in UCT testing. It is currently envisaged that
these can be resolved without impacting the critical path.
Release 2.6 of the Rollout Database (RODB) software was introduced on 15" May
2000. This introduces a number of new features and automates a number of manual
elements in the scheduling process. The remaining programme for RODB includes the
replication server in carly June, release 2.6+, scheduled for carly August and the Secure
Managed Environment, now duc in October. The need for the SME at this stage of the
programme is also being reviewed.
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ACTIVITY CHANGE CUMULATIVE
Number of Open Post Office Outlets -19 18,233
INFRASTRUCTURE PROGRAMME
RGM Letters Issued 0 17,563
Site Surveys Undertaken 37 17,639
Site Preparations Done 387 15,573
INSTALLATION PROGRAMME
Sites Migrated and Live _ 1,571 7,603
Counters Live “ 3,331 17,082
CURRENT CRITICAL PROBLEMS
Training scheduling is still a concern and focus has been on the timeliness of training
invitations being received by postmasters. It is perceived, and highlighted by PONU
telephoning questioning of a 10% sample of postmasters, that the required period of
notice is not being achieved. KnowledgePool records are not aligned with this
although it has been identified that issues with data transfers from the RODB to
KnowledgePool may have led to delays in the dispatch of UAE invites. This is not
necessarily a KnowledgePool performance issuc. An end to end audit is underway to
identify and resolve the causes. In the meantime data tracking and manual processes
are in place to resolve the issue. PONU and Pathway have also agreed on changes to
the content of the telephone questioning and the timing which may have caused some
inaccuracies in the results.
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Although the focus has been on training invitation timeliness, it is considered that the
real issues with training scheduling may be to do with invitation errors, postmasters
having to travel more than the required distance to training and dissatisfaction with the
scheduling operation. The scale of this is thought to be on a small scale since the
evidence remains anecdotal. The situation is under review and -additional resources
have been added to the training management team to assist and speed up the review
process. In the meantime, no installations have been aborted as a result of training
issues and postmasters are generally very pleased with the course content and quality of
training staff.
ISSUES
ISDN line failures on the day of installation continue to run at between 1 and 2 % of
planned installations, although.in one recent week they peaked at 2.7%. Although this
is perceived ‘as ‘an issue by the Post Office, it should be noted that the failure rate is
lower than most other major ISDN installation programmes. Since it is the most
significant cause: of installation aborts it is being addressed such that the size of the
issue is reduced. There is no underlying cause behind the failures but a small number
of causes collectively making up the issue. The situation has recently been addressed
with Energis and they have committed to a more rigorous review policy to identify and
resolve root causes. A further supplier review is duc.on 20" June.
Training course occupancy levels are now achieving satisfactory levels but due to the
low levels of occupancy at the beginning of: the programme last year it is likely that
there will be a net deficit of courses by the end of the programme. This results from
poor initial occupancy caused by the éarly low volume profile for-rollout, required to
achieve acceptance, failures in training scheduling and the difficulties in ensuring
postmasters accept the available training dates. It is therefore considered that
responsibility for any net deficit should be shared between Pathway, PONU and
KnowledgePool. A modcl of past and predicted occupancy levels is under construction
to enable the situation to be. monitored. .A joint action plan of measures to improve
course occupancy is underway in order to address the issue. It is currently perceived to
have a risk value of £500K, although it is anticipated that responsibility for this would
be shared between the three parties.
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PONU have recently expressed concern that Exel installation teams have in a number
of cases failed to attend the second planned installation for the day, resulting in 3-4
additional installation aborts per weck. Although this is the case it happened following
the planned withdrawal of additional install teams, which had been used to ensure the
achievement of the last payment milestone. This of additional install teams, which had
been used to ensure the achievement of the last payment milestone. This required
considerable investment and it was judged that, given the install plan continues to
exceed the planned number of installs cach week, it was no longer necessary. Install
levels remain above plan even after the removal of the additional teams and it is not
considered necessary to re-introduce them.
Following the introduction of the network upgrade to the Kidsgrove environment, a
significant improvement of the Powerhelp situation has been observed at the Rollout
Helpdesk and remote stations. This has resulted in a steady reduction in the helpdesk
backlog and the ability to respond to installation day issues much faster.
COSTS
A proposal for an extended Counter Manager’s course for CSR-+ training is being
prepared for PONU. The revenue value to ICL for this is £158K.
This month’s forecast from Implementation remains on track and in line with the
agreed budget for the current financial year. This includes a cost improvement target
of £1.5M.
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Organisation &
Personnel
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Version: 1.0
Date: 07/06/2000.
Organisation & Personnel Report
MONTHLY SUMMARY
There was again a high level of recruitment activity required to fill vacancies. This was
successful with 21 joiners in May. However, there is still a substantial amount of
ongoing work required in this area.
PROGRESS
Appointments in May:
External Recruits 0
Transfers In 3
E-Apps 1
LINKwise 0
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL: 21
Known Joiners
External Recruits 0
Transfers In 0
c-Apps 1
LINKwise 1
Freelance 0
Fixed Term Contracts 2
Adecco Temps 1
TOTAL: 5
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May Leavers:
Permanent Staff 0
Freelance 3
Transfers Out 3
Linkwise assignee 0
c-Apps 2
Fixed term Contracts 0
Adecco Temps 0
TOTAL: 8
90% of completed appraisals have now been received and logged on the personnel
database. Managers who have appraisals outstanding have committed to have
completed them by the end of the first weck in June.
Details of the 2000/2001 EIP and PVP schemes have just been released. The process of
agreeing objectives for this financial year will now commence.
A constructive meeting took place to discuss the transition plan for members of the
Roll Out Team. Members of the e-Apps and Pathway HR departments, the e-Apps
Transition Manager and the management of the Roll-Out team attended and actions to
implement the first stages of the plan were agreed.
All immediate staffing requirements for the new business opportunitics have been
resourced. The next stage of the plan will be agreed as soon as requirements have been
crystallised between Pathway and the customer.
21 people joined ICL Pathway in May. The number of vacant requirements has
reduced from 38 at the end of April to 33 at the end of the month. Better progress was
made in May on the replacement of Freelancers with e-Apps people, with 5 slots being
filled.
The first of the space savings identified in the Accommodation Plan will be put into
effect in June. This is the move of the Implementation IP4 Team from Hertford to
FELO1. This will allow the Hertford office to be released. The people transferring to
Feltham will be accommodated by making more efficient use of existing space in
FELO1. Members of the Personnel Team were involved in managing the associated
relocation issues with the cffected cmployees. In general the move will be a positive
one for our employees, with shorter travelling distances. In one case there will be a
substantially increased commuting distance and members of the department are
supporting the individual to arrive at the best possible solution.
A review of Health and Safety in the Pathway labs at BRAQ1 was instigated, with
support from ICL Health and Safety department. This is to ensure all Health and Safety
guidelines are complied with and any remedial action is taken, following concerns
raised by a member of staff.
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Approval was given for the 2000/2001 Pathway pay plan and letters informing
employees of their personal review have been produced. They will be given to
employces by their managers in the first week in June.
Work on documenting Pathway specific HR procedures for audit as part of the ISO
9001 accreditation process is now almost complete and an audit of the department is to
take place in June.
The employee Opinion Survcy is shortly to be launched and the department has
ensured that all employees are aware of are were encouraged to complete the survey. A
number of employees expressed concern about the confidentiality of completing the
survey clectronically, but in most cases were reassured after discussions with members
of the department.
Planning for the Pathway Senior Management Team mecting was progressed. This will
bring together the Management Team of ICL Pathway and their key managers. Topics
to be covered include the messages from Prague, ICL’s plans for floatation and E-
Business strategy; as well as a workshop on how to improve our performance as a
business by improving:the performance of our people.
x
P
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Version: 1.0
_ Date: 07/06/2000
The Post Office - Client Director’s Report
MONTHLY SUMMARY
Decision awaited on the Government Gateway bid.
eGovernment
The Govt Gateway bid, led by EDS with ICL and PO as subcontractors was submitted
May 5" - invitation for Best & Finals is expected mid-June, decision end-Junc.
Since introducing govWorks to PO, they have been independently approached by
Rothschilds who apparently consider govWorks a good venture capital bet provided
they have PO’s brand name. ] await Govt Division’s decision.
PO have also declared an intention to reach a parnering agreement with ICL for Govt
Business - this is now with Govt Div. Something of a breakthrough.
EBusiness
Dick Wheelhouse reports that his strategy paper (not published) has been approved by
PO Board: he is now submitting a funding paper. Meanwhile we have been asked to
present Crimson to Dave Miller, Paul Rich and John Chiswell the newly appointed MD
e-Infrastructure. As a result of his good work with SMPP (see below) Tony Gale has
been retained by PO to act as architecture -facilitator for their group planning the
architecture required to support eBusiness. The alternative advisers of IBM and
Microsoft were both scen as non-independent.
e-Infrastructure
Ideas beginning to emerge which take the desktop (W2K), servers (rationalisation),
Lotus Notes/Exchange and promotes ICL. as the integrator. We have met with
Microsoft and EMC to discuss tactics. An e-Infrastructure planning day has been fixed
with Mike Raynor and his marketing team to establish how ICL’s strategy can be used
in PO - at the Ieast this could develop an ICL/MS Exchange exercise positioning
Exchange alongside and complementary to Lotus Notes.
SMPP
The Service Management Productivity Programme is being compicted in its current
form - the Work Packages are now compicte from a delivery perspective however, we
are awaiting formal sign off from the customer. This is being hampered by discussions
around ownership of IPR.
Discussions continue on how to extend/relaunch this programme.
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EBPP
Reference visit to Transpoint in Seattle 16 May went well. ITT expected late June,
review of FS position reveals work to be donc.
Network Banking
ITT expected mid June. More work needed by FS on the offer and competitive pitch.
Meeting fixed with Microsoft to review their “FS infrastructure”.
Smartcard
As part of his PO assignment Mike Jenkins has delivered a briefing note 4 pager for
submission to Cabinet Office PIU. This note has also been edited by PO and submitted
to the Smart Card Club for publication in their journal.
Opportunities are now emerging for the DfEE Youth Card (in OJEC); for Newcastle
region Gard;.for Glasgow. Citycard; and for Transys travelcard. Discussions opened
with Graham Taylor (newly in charge of Smartcard group) to get the necessary focus
on these opportunities. Government’ Div appear to have limited interest.
Account Team
Marcel Bonfrer has replaced iChris Mitchell in A& TC sales and a new KnowledgePool
contact established (Mark: Collin) uw, Owen has joined OSD sales as trainee
salesman. Account team'review: held: major. outcome is that more ground needs to be
covered to identify and‘qualify potential opportunities early.
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