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ICL Pathway
Bringing Monthly
Technology Progress
to Post Office Report
Counters 4
July 2000 TED
ICL Pathway Monthly Progress Report
Contents:
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Managing Director’s Summary
Development Report
Commercial & Financial Report
Customer Requirements Report
Customer Service Report
Quality & Risk Report
Business Development Report
Implementation Report
Organisation & Personnel Report
Post Office Client Report
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ICL Pathway Programme Monthly Report Ref: PA/REP/OS2
Versior 1.0
Date: 09/08/2000
Document Title: ICL Pathway Monthly Report — July 2000
Associated Documents:
Reference Vers Date Title Source
1) PM/PRO/002 1.0 26/09/96 Pathway Programme - Project
Planning, Reporting and Control
Approval Authorities:
Name Position Signature Date
M. Stares Managing Director
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ICL Pathway Managing Director's Report Ref: PA/REP/OS2
Version: 1.0
Date: 09/08/2000
Maniaging Director’s Suminary
1 PROGRESS .AND ISSUES
Generally good progress is being made, although there are still significant pressure points. We
are now at crunch'time on CSR+. Our systems and processes are currently holding up well as
we continue to increase the number of live Post Offices.
Rollout is on track. We have now migrated over 9000 post offices (50% of the estate) and are
achieving 'in excess of 310 implementations per week. We are about a week ahead of plan. We
have trained in excess of 30000 Post Office staff. This performance is recognised by PO and
relationships are developing positively although there are still significant scars.
Weekly service performance is a key issue and recent problems with Help Desk service have
significantly dented,PO confidence. However, I am pleased to report that OSD service levels
are now much improved and we are back on track with reasonable SLA performance. The poor
service in QI has cost ICL over £200K in penalties. It is intended to remove the Red Alert by
end July once we have demonstrated consistent performance. It will take week on week, month
on month good performance to fully recover thé confidence of PO Directors.
CSR+ quality 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.
Latest test.results show that we are on a knife-edge. PO User Confidence Trial (UCT) has been
successfully passed as a result of their decision not to request a second UCT. However, there
are a large number of Pinicls outstanding from our own testing cycles and it would be. foolish
to move to Pilot phase unless we are confident of performance. Pilot is currently scheduled for
14th August in 300 offices. However it also includes a significant upgrade of the central
software which will impact the whole of the 9000+ live estate. PO decision on full roll out of
CSR+ is planned for 6th September assuming we proceed with Pilot.
Headcount management remains a big issue and is getting considerable attention. We have now
entered a vulnerable phase where we are highly dependent on key 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 that will demand a large variable profile of skills and resources.
1.1 PIU REPORT
The long awaited.PIU report on the future of the Post Office Network has been released. It is
directly critical of PO for not moving quickly enough into new business streams. It is also very
supportive of Banking including the Social Bank and of using the post offices as e-gateways into
Government services. The report acknowledges the.investment in Horizon as a'platform for
developing PO business and should assist us in our quest for incremental business.
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ICL Pathivay Managing Director's Report Ref: PAREROS2
Version: 1
Dare: 09/08/2000
1.2 NEW BUSINESS
We are.now engaged in joint working groups/discussions on Network Banking, EFTPOS and
ERA (targeted at reengineering PONU processes and systems to save 20% of the total PONU
costbase).
Progress on significant e-commerce initiatives proves difficult with lack of momentum in the
PO. We have now met with Messrs. Wheelhouse 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 are trying to gain
commitment to an SEP in a Q3 timescale.
1.2.1 NETWORK BANKING
Pathway is the nominated contractor for the Counter and we are evaluating technical options
with PONU and PO'Network Banking Unit. In conjunction with Escher, we have secured a
£620K feasibility study (Network Banking Proof of Concept) for the production and evaluation
of an e-enabled counter banking approach. This could lead to considerable additional. business.
1.2.2 RE-ENGINEERING/ERA
As with Network Banking, joint activities have been proceeding at a pace. Initial scoping
suggests 'a £20M plus opportunity for Pathway in a 2002 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 June Investment
Board has authorised the next phase of this project to March 2001. We have secured a £400K
consultancy contract that places us at the-heart of this initiative, together: with Sema and
Deloitte Touche.
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ICL Pathway Managing Director's Report Ref: PA/REP/OS2
Version: 1.0
Date: 09/08/2000
1.3 NATIONAL AUDIT REPORT
A formal draft copy has been issued to Keith’ Todd and others.for quick comment with a view
to NAOissuing the report.before the summer recess. The final document is probably as good.as
we could have hoped for:
1.4 PRESS/INTERNAL IMAGE
There is evidence.of an:improved internal and external:image of Horizon. We are already
seeing more positive press comment and PONU are supportive of raising the image-within Post
Office. We-are seeking PO Director level agreementto a joint press release to mark the 10000"
post office and the release of CSR+.
1.5 FINANCE/COMMERCIAL/BUSINESS PLAN
Please see separate Finance Director’s report.
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ICL Pathway Development Report Ref: PA/REP/OS2
Version: 1.0
Dare: 09/08/2000
Development Report
1 MONTHLY SUMMARY
e The maintenance and support load on the development team continues to reduce with CSR
becoming very stable. We anticipate this stability being réversed for the first few months of
running-CSR + live.
e@ The correspondence server upgrade in the data centres ‘designed to provide extra capacity
has now been completed satisfactorily.
e The sixth (audit) cycle of the Business and Technical Conformance testing completed on
the 14” July achieved a 97% coverage and an improved pass rate of 97% against the
23,985 scripts executed.
¢ Horizon completed the formal User Confidence Test successfully on 21" July as-planned
and consequently did not request a further cycle. The witnesses target tests which followed
between 24" — 27" July to demonstrate clearance of certain high priority incidents were
only partially successful. In parallel, we ran a regression test of the live pilot software
baseline and this showed signs of instability due to the.amount of fixes applied and
functional enhancements targeted directly at this version.
© The volume target testing was completed in the required timeframe but it identified two
issues that required resolution before the migration of the Data Centre could take place.
© Asa result of the events described above we'recommended a delay of 3 weeks before
commencement of the live pilot. This would give us the time necessary to resolve the six
outstanding high priority incidents and carry out further regression testing.
© The mobile and satellite options continue to progress.according to schedule although we
are aware that our supplier may be experiencing difficulties with the casing for the mobile:
unit which may impact the 8" January 2001 roll-out date. The first satellite installation is
due to take place 1* November 2000.
e@ Development of the ‘Maintenance Release’ remains on schedule and the first delivery to
release integration is due 4" September. Distribution to the live estate is planned to.occur in
late January.
© Work on preparing for the ISO 9001 certification continues ata pace in all the
development departments. We are not aware of any major issues in the design and
development domains.
2 PROGRESS
© The sixth B&TC testing cycle (Audit Run) was run against the UCT software baseline and
exercised 97% of the scripts and achieved a 97% success rate. Only 643 script lines of the
24628 (2.6%) were deferred. This is the lowest ever achieved.
© The customer completed their User Confidence Testing (UCT) on 21* July and due to
positive results found did not request a further cycle. They did however ask to witness
certain high priority fixes applied to the live pilot baseline during 24" - 27" July to
produce the evidence required for the Release Authority Board. Unfortunately, we
encountered several build and code problems which indicated that we had introduced some
system instability.
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ICL Pathway Development Report Ref: PA/RED/0S2
Version: 1.0
Date: 09/08/2000
e In parallel with this we were running a regression‘cycle against the live pilot software
baseline (14° July - 2"! August) and completing the targeted volume and performance
testing of the APS Host/Agent system (18"— 28" July).
© The results from all the above cycles suggested that.our strategy to focus on stabilising the
UCT baseline and try to keep the amount of change in.the live pilot baseline down to a
minimum failed. We were left with 6 major incidents that had to be cleared before we
could enter the live pilot with a high degree of confidence. Accordingly, we recommended
to Horizon that we delay the start'of pilot by 3 weeks. This would enable us to resolve the
issues identified and run another regression cycle against the live pilot baseline (11 - 23%
August).
© In the revised plan, the Data centre is to migrated during the weekend 26"/27" August. The
pilot outlets will begin operating the CSR+ software from 4" September and the migration
of the existing estate will commence 25" September.
e Development of the Maintenance Release (M1) is progressing according to plan. The first
handover into the integration stage is due 4° September. Several deliveries are scheduled
throughout September/October and testing is planned to complete 13" January. The release
will be committed to the live estate 28" January 2001.
e System testing of the interim solution for the OCMS system has been going well.
¢ The proof of concept project for network banking is nearing completion. The formal report
and presentation has been delayed by 1 week to allow more time for evaluating the
findings.
© Work:continues on the set-of management and corrective action plans.in preparation for
the IS09001 accreditation.
3 COST DOWN
e No newinitiatives have emerged this:month.
4 CURRENT CRITICAL PROBLEMS
e@ We must be able to demonstrate that we have satisfactorily resolved the seven major
incidents to the Release Authority Board schedule to meet 18" Avigust. The latest position
is encouraging, two have moved on and have now been downgraded, three are fixed and
fixes for two are undergoing tests.
e Wewill incur further delays if we encounter a major incident during the live pilot
regression testing which cannot be resolved, either before the Data Centre:is scheduled to
be migrated (26"/27" August) or the outlets scheduled to be ‘committed’ (3° September).
5 ISSUES
© The ISDN element of the OBCS foreign response time is non-compliant with the
contracted requirement. The solution has been defined and the changes will be
implemented in the Maintenancé Release scheduled for January 2001.
e The Operational Change Management System (OCMS) supports Customer Services'in
responding to changes in the Post’ Office Network (e.g. temporary closures, permanent
closures & new outlets). An interim solution will be delivered late November 2000 and this
will substantially reduce the manual effort involved in handling these changes:and
consequently reduce the risk of human error. The final solution willbe available towards
the end of February 2001 and will totally automate, the process.
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ICL Pathway Development Report Ref: PA/REP/OS2
Version: 1.0
Date: 09/08/2000
© We are still experiencing a number of non-polled outlets in the live estate. This impacts our
file delivery service level agreements because the transactions cannot be harvested from
these outlets in the required timeframe. The current thrust is to ensure that we have resolve
all the system issues and to improve the quality of the various reporting facilities available
to customer services.
¢ The new enhanced invoice functionality in the MIS programme suite was to be included in
the Maintenance Release planned for January 2001. Unfortunately, this is part way through
a financial quarter (defined as Dec — Feb in the contract) and therefore unsuitable. Plans are
now in place which will enable the functionality to be exercised from the beginning of the
final quarter i.e. December.
e We believe that our supplier (Celestica) is encountering difficulties with their sub-
contractor regarding delivery of the casings for the mobile units. This could adversely
impact the 8" January 2001 roll-out date if it is not addressed urgently.
6 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/OS2
Version: 1.0
Date: 09/08/2000
Commercial & Financial Report
1 FINANCE
Financial performance continues to track better than plan. In particular, rol! out continues to
run ahead of plan. This has had a beneficial effect on revenue and hence profit. Cash costs
have at the same time been held consistently below plan, month on month. Cash flow has been
further improved by careful control of working capital.
1999/00 ended with a favourable outcome against Budget and Business Plan on all counts, with
revenue at £230m and Pathway PBT at £39.4m. PwC declared themselves entirely satisfied
with the project accounting treatment (specifically, revenue accrual and margin recognition)
and detailed audit.
Good progress has been made towards cost down. Project-to-date cash cost savings amount to
some £26m (excluding phasing improvements), of which £19m are saved subcontractor
termination costs. A further £22m of cost reductions have been secured from subcontractors
over the life of the project as compared with the May 1999 Business Plan. Areas of cost
underestimate have also been identified, the net effect being broadly neutral, but the plan is
now much lower risk than it was last May. £68m of the cost savings assumed in the May 1999
Business Case (total assumed £115m) have been secured. The main item still to secure is the
much reduced resource level assumed after completion of CSR+.
Important early progress has been made in establishing the new business revenue stream
although it is too early to tell whether the current plan (some £60 million of new business
above the core contract to 2005) is set at the right level. Early customer commitments mean
that we are currently on track to drive out an ‘Option B’ approach (emphasis on new business
as well as cost down rather than Option A which was all about cost down) but this will need to
be kept under close review. In particular, resources will have to be very carefully managed to
match supply to demand.
The Business Plan continues to show a £15 million overall project loss at Group level. A
number of significant risks have been successfully managed out at low cost over the past six
months. The most significant near term risks are currently around CSR+ implementation. If
these can be successfully dealt with, the risk profile of the project will improve significantly and
the dependency on task to offset risk will come down to quite modest levels. Currently task
stands at £21m against risk contingency at £23m.
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ICL Pathway Commercial & Financial Report Ref: PA/REP/OS2
Version: 1.0
Date: 09/08/2000
2 COMMERCIAL
The status generally on change control continues to be-good (in sharp contrast to a year ago).
We.now have a consistently low CR/CCN backlog, high resolution rate, few issues and a high
hit rate on chargeable change.
Initial CCNs to a value over £1m have been signed for Network Banking and Project ERA.
As always, there are a-‘number of contractual matters to resolve, e.g. around service level
agreements, training, the final roll out milestone, help desk, and the like. These are all ‘in the
normal course of business’ and, although not trivial, are under contro]. The joint Contract
Administration Board oversees the resolution of such issues. They tend to be as much
operational and practical as commercial and contractual. With selective involvement of
technical experts and lawyers as necessary, the outcomes are generally regarded as reasonable
and workable by both sides. The aim is to achieve a win/win, and there have been notable
successes. Since exiting from extended Acceptance, we have not had to make any commercial
concessions of significance.
Agreements to Agree. have been virtually eliminated. There:is only one left which may still
cause us:some difficulty (internal service levels), but there is no need to:resolve.it quickly and
we are playing it long. Notably, CCNs for mobile terminals and satellité Communications have
now been approved. These complete the solution definition for CSR+ and infrastructure
implementation.
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ICL Pathway Commercial & Financial Report Ref: PA/REP/OS2
Version: 1.0
Date: 09/08/2000
Pathway Business Case
Planning Case: March 1999/ 2000/ 2001/ 2002/ 2003/ 2004/ I Total Total Project
/With new business included 1999I 2000 2001 2002 2003 2004 2005 ITogo]I July IMay INov
cum 00 I 99 I 99
FINANCIAL SUMMARY
REVENUE
Base Contract 2 230 2059 «118 «6118 S118 111 900 II 902 I 897 I 900
New Business 0 0 3 12 22 16 12 64 64 0 I 44
Total 2 230 208 130 140 134 123 964 966 I 897 I 944
PBT before extraordinary item
Base Contract 2 20 22 15 13 17 19 107 II 105 I 132} 105
New Business 0 0 0 2 5 0 1 8 8 0 9
Total 2 20 23 17 18 17 20 115 113 I 132 I 114
Extraordinary item -182 19 0 0 0 0 0 19 -163 I-182}-164
Pathway PBT -184 39 23 17 18 17 20 134 -50 I -50 I -50 =
Group intercompany profits 2 8 6 4 5 5 5 33 35 I 35 I 35 .
PBT - ICL GROUP -182 48 29 21 23 22 25 167 -15 I -15 I -15
Project PBT % before 9% 11% 13% 13% 13% 16% I 12% I} 12%] 15%]12%
extraordinary
Margin % on New Business 17% 14% 13% 11% 14% 13% II 13% 20%
PROJECT CASH FLOW after
interest
Discrete -253 7 -23 92 36 44 48 203 -50 I -S0 I -50
Cum -253I -246 -269 -178 -141 -98 -50 -50 -50 I -50 I -50
FUNDING
Equity 20 152-152, 1S82,) 152 152-152 152 }} 152 I 152 I 152
Year end borrowings -233 -94 -118 = -26 10 54 102 -118 II -118 I-232]-232
B/(W) May 99 Business CaseI -1 34 9 3 4 -l 0 -4 34 0 0
Peak cash requirement -253} -310 -306 -191 -175 -137 -93 -310 II -306 I-342]-321
INET PRESENT VALUE ~ ~ - I
AFTER TAX 75 I 77 I 76
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ICL Pathway Commercial & Financial Report Ref: PA/REP/OS2
Version: 1.0
Dare: _ 09/08/2000
Planning Case: March 1999/ 2000/ 2001/ 2002/ 2003/ 2004/ I Total Total Project
[With new business included 1999} 2000 2001 2002 2003 2004 2005 {To go}I July IMay INov
cum oo I 99 I 99
FINANCIAL SUMMARY
REVENUE
Base Contract 2 230 205 118 4118 4118 111 900 II 902 I 897 I 900
New Business 0 3 12 22 16 12 64 64 I 0 I 44
Total 2 230 208 #130 140 134 123 964 II 966 I 897 I 944
COSTS - Base contract
Opex - Base Contract 199 112 «143 82 77 79 74 568 766 I 731 I 759
Opex - New Business it} 0 2 10 16 12 10 50 50 0 I 35
International 2 0 0 3 0 2
Treasury recovery 8 8 3 I -8 I -8
Liquidated damages - SLAs 0 0 1 2 1 1 1 6 6 12 I 8
Sub-total 201 104 146 94 94 93 85 617 II 818 I 735 I 796
Depreciation - Base contract I 32 18 32 32 25 5 0 111 143 I 145 I 142
Depreciation - New Business 0 0 0 1 3 1 5 5
Utilisation of BPS Provisions -25 -19 0 2 2 -1 -49 -49 I -68 I -50
BPS subcontractor 8 0 8 8 I 27} 9
termination
Losses on forward exchange 1 2 0 0 0 0 4 4 3 4
cover
Interest 18 11 9 3 1 2 -5 18 36 I 38 I 43
Risk contingency (opex) 0 5 6 5 4 3 23 II 23 I 0 I 17
Cost Task 0 -1 2 -5 -6 -7 -21 -21 I 0 I -17
Transfers (to)/ from WIP. -247 92 10 “19 2 21 27 133_II-114 I-114}-114
PBT before extraordinary item -2 20 23 17 18 17 20 115 113 I 132 I 114
Write off of BPS spend to 114 0 114 I 114} 114
date
Provisions for BPS spend not I 68 0 68 I 68 I 68
yet incurred
Release of excess BPS -19 0 -19 II -19 I O I -18
provision
Pathway PBT -184 39 23 17 18 17 20 134 -50 I -50 I -50
Group intercompany profits 2 8 6 4 5 5 5 33 jf 35 [3s I 35
PBT - ICL GROUP -182 48 29 21 23 22 25 167 -15 I -15 I -15
Project PBT % before 9% 11% 13% 13% 13% 16% I 12% }I12%}15%]12%
extraordinary
Margin % on New Business 17% 14% 13% 11% 14% I 13% }II13%IN/AI20%
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ICL Pathway Commercial & Financial Report Ref: PA/REP/052
Version: 1.0
Dare: _ 09/08/2000
With new business included
£m Cost reductions assumed in May Business Case
Project forecast Committed to date Gap to close
Manpower related costs
Percentage of freelancers reduced from 37% to 15% 19.0 4.0 15.0
Resource shortfalls to Plan/ recruitment lag 8.0 8.0 0.0
Post CSR+ Development headcount reduction 22.5 5.0 17.5
795 17.0 305
Communications costs
Line connections made every 30 minutes instead of 15 13.0 13.0 0.0
Price reductions of 2-4% p.a. 11.0 7.0 4.0
a0 00 To
Data centre and product support savings (no BPS)
Data centre operations and OSD support 11.6 9.0 2.6
Product support 14.2 12.0 2.2
25.7 210 aT
Help desk calls
Steady state call rate down from 4 p.m. per outlet month to 2.5 (cf. 2.8
to 1.9: see Cost Up) 11.0 5.0 6.0
OBCS software licence costs (Oracle)
Annual fee eliminated by bringing product within POCL licence 4.7 47 0.0
Gross savings assumed TIS BTT ITI
Meno
Status in December 118.0 $0.0 65.0
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TRACK OF COST MOVEMENTS SINCE MAY 1999
With new business included
£m
Cost down initiatives since May 1999
Cost increases since May 1999
Inclusion of New Business - contribution basis
Additional revenue
Additional cost - marginal
Inclusion of contingency for Risk
Inclusion of Task
Net improvement since May 1999
Variances from May Business Case - B/ (W)
Project forecast Committed to date ‘To go' projection
62.8 49.1 13.7
-69.2 -46.4 22.8
64.1 64.1
-55.8 -55.8
8.4 0.0 8.4
-23.2 -23.2
21.3 21.3
0.1 27 -2.6
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ICL Pathway Commercial & Financial Report Ref: PA/REP/OS2
Version: 1.0
Date: 09/08/2000
COST DOWN INITIATIVES SINCE MAY 1999
W ith new business included
riances.from May Business Case-B /(W): includes margin on
im additional revenue Jen May
Project foreenst Committed to date Gap to cloée :
BPS termination costs
Girobank 10.0 0.0 :
De La Rue 1s 0.0
Other 4:7 0.0
19.2 19.2 0.0
System service costs
Reduced use of counter printer - no. BPS 5.7 8.7 0.0
Extended warranty terms on equipment 7.0 7.0 0.0
Substitution of laser back office printer 5.0 5.0 0.0
RPI settlement with OSD 45 48 0.0
Less: Increased capital cost ofextended warranty “1.6 “16 0.0
Less: increased capital cost of laser printers over ink jet 21.0 =1.0 0.0
19.6 19.6 00 48 68
Communteations costs
Line connection intervals set to transaction count: equiv
1o 60 minutes instead of 30 6.0 6.0
Satellite instead of frame relay for non-ISDN 3.0 3.0 0.0
90 v0 6.0
Capital costs
Riposte licence fee reduced (APS) OT 0.0
PC price reduction of 4% - 6% 17 0.0
Less: POCL credit note re. 750 counter redo -0.5 0.0
1.9 Tr 0.0 145 140
Overheads
Professional fees/ bid cost repayments 2.9 219 0.0 9 12
Pre-sales work pared back 3.0 1.0 20
5.9 39 TO
Interest costs reduced on improved cash flow profile 2.0 1.0 1.0
Liquidated damages forecast reduced $.2 0.5 47 6 12
Grossim provements identified since May 1999 62.8 a9.1 13.7
Status in December 59.0 33.0 26.0
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ICL Pathway, Commercial & Financial Report Ref: PA/REP/OS2
Version: 1.0
Date: 09/08/2000
ADVERSE VARIANCES SINCE MAY
W ith new business included
in Variances from May Business Case.- B/(W)
Project forecast Committed to date ‘To go' projection
Manpower related costs
Development resource level held higher post CSR+ to enuble new
business 6.0 2.0 4.0
Freelancer dependency higher, contractor rates higher 5.0 3.0 2.0
Increased operational support (CS) 4.6 2.0 2.6
TS. TT we
Maintenance and support costs - test environments 5.0 4.0 1.0
Systems management costs'were understated 146 8.0 6.6
Help desk useage was underestimated 11.7 4.0 I
Comms useage - downloads etc. 20.3 12.0 8.3
Non- DN outlets increase (to close to 500) 7.0 5.0 2.0
Acceptance related costs
Pre-training event 0.7 0.7 0.0
Extended rollout pause around Christmas 1999 1.5 1.5 0.0
Delay to CSR+ (3 months) 4.0 4.0 0.0
TIP charges td 0.2 1.2
T.6 6.F T.T
Other -12.6 0.0 12.6
Net adverse variances since May Cor TGF Tre
Memo
Status in December 76.0 24.0 $2.0
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TASK
With new business included
£m
Unallocated task - candidates to close gap
Rationalise certain Pathway uctivities, e.g.
Testing - streamline systems test through to OTT (CS) testing
Design and development = streamline lifecycle processes post CSR+
Business development/ business requirements/ TDA consultancy - streamline/ improve utilisation
Staff functions - devolve to line unils/ streamline
Rationalise certain Pathway and OSD services, e.g.
Combine SSC (Pathway) and SMC (OSD)
Service Management - eliminate OSD layer into Pathway
Rationalise certain Pathway activities into ICL, e.g.
Im plementation into e-A pps or Large Projects (£0.5m already assumed in Budget baseline)
B&TC testing into e-Apps or Large Projects
Recovery plans - recover half forecast overshoot against original planning assumptions
Systems management
Dependency on freelancers
Help desk useage
Comms useage - download’ ete.
Renegotiate banking lines to reduce the interes! margin down from 0.7% to say 0.2% (Fujitsu)
Reduce SLA remedies (LD's) by, say, one third
(Profit im provement opportuni
Total Unallocated task
‘To go' projecti
onan
woos
o
3
0
)
2
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4.0
09/08/2000.
PATHWAY RISKS FOR INCLUSION IN PATHWAY CONTINGENCY
Prob'y
Planning Case: Comment
Option B
ASSET CO. CAPITAL SPEND
PC compatibility 4: last time buy Reduced limits agreed
made:early would require a with POCL
contingency stock of 1000
additional PCs
CAPITAL SPEND - GROSS RISK
CAPITAL SPEND RISK - WEIGHTED BY PROBABILITY
ASSET CO. IMPLEMENTATION
SUBCONTRACTS.
PC compatability 2: Increased costs
Availability causes a 1 month break
in rollout (September 2000)
PC-compatibility 5: new PC Increased costs
delivered late on in the roll out
would require an extension to
Celestica etc. subcontracts
Two week delay to national roll Delayed revenue for NRO
out restart. milestones 2 and 3.
POCL want additional time to Loss of interest.
monitor reconciliation and Increased Implementation
progress Ref Data Agreement costs.
Specification.
ntl: remedial costs. No longer required and
Additional-costs to mitigate / stood down
remedy inadequate infrastructure
quality:
1. Man ina van
2.Additional installation teams
Installation beat rate: Low risk now
Only 250pw can be sustained.
Implementation tail: site prep. Assumed in base case
ntl & Pearce contract extended by
3 months (+ internal staff)
Implementation tail: Assumed in base case
Installation tail from March 2001
extended by three months:
mobiles, satellite, etc.
POCL reduce beat rate or stop roll Increased Implementation
out: Business Service costs - assume 2 months.
Management, or Help Desk
performance, or issues around
CSR+ migration
0% .
0%
0%
10%.
0%
0%.
50%
20%
Total
1.0
0.0
2.0
0.5
2.5
0.5
0.8
1.5
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Date: __ 09/08/2000
Training occupancy: below Increased number of 40% 0.5
average 6 target, results in need for courses, and an argument
additional courses with POCL & KP as to
blame and cost
apportionment
Slip to achievement of final rollout Interest loss .5, increased 30% 0.7
milestone: tail, satellites, mobiles costs .2
delay by 1 month the 99%
achievement
IMPLEMENTATION - GROSS RISK 10.2
IMPLEMENTATION RISK - WEIGHTED BY PROBABILITY 1.2
OPCO OPERATING SPEND
Develop PC compatibility 1: Increased costs 0% 1.0
ment Replacement pc requires
substantial development work
(new software, validation &
support). Possible delay to CSR+.
Additional work for NRO restart Delayed reduction in 0% 1.0
causes a 1 month delay to CSR+. Development staff levels.
POCL require additional Ref Data, Increased costs.
reconciliation or Help Desk work
which diverts resource from CSR+
and results in a delay.
One month delay to CSR+ Delayed reduction in 40% 2.0
programme: Development staff levels.
Due to eg rig build, quality, Increased costs over the
Riposte 6 intercept slowed reduction already
assumed.
Flip of CSR+ general release into Delayed reduction in 30% 2.0
2001: Development staff levels.
Combination of factors - NRO Increased costs. Revenue
work, quality, rig build, pc loss.
compatibility cause sufficient slip
to push CSR+ into 2001
Cost recovery processes not Reduced margins 30% 5.0
adequately implemented:
Time recording controls are
inadequate to support charges/
plan and control resourcing.
System architecture/ structure Increased costs 0% 5.0
causes significant rework activity
in R3:
Re-development required to
address outstanding shorcomings
eg. SLAs
Correspondence server re-configuration work not completed 0% 1.5
in time: stops roll out for one month
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Version:
Date:
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1.0
09/08/2000.
Custome
is
Services
Loss of key staff: uncertainty over Increased costs and delay- 30%
Option direction results in key knock ons to recruitment,
staff leaving: backfill by more SLAs, help desk, CPs
freelancers, re-training, and delay
Headcount cost down: not able to Increased costs and delay 30%
manage down the headcount in
absolute or mix
Ability to recruit key skills to fulfil Margin loss at 25% on, 50%
new business commitments: say, 20% of toral revenue
impact is loss of margin through
lost business
PC compatibility 3: CM, Tivoli, Increased costs 0%
CS field (spares, etc.)
Increased CS cost ongoing as a
result of running 2 pc
configurations
CSR+ quality results in increased Increased costs 25%
support costs:
High level of Help Desk calls, fixes
to be applied
Remedial work to sustain SLAs: _ Increased costs 30%
Development required to reduce
SLA LDs or to satisfy SLA
termination conditions.
E.g. SLA measurement, OBCS
transaction times
Cash account discrepancy Increased payments to 50%
payments to POCL: POCL
Discrepancies occur at a higher
level than planned or require
remedial work:
Assumed attributable to Reference
Data process rather than code
errors.
Help Desk workload (1): Increased costs 20%
Higher than in plan because of
poor turnover training
Communications costs: Increased costs 20%
Eicon problem (or similar)
continues resulting in comms costs
higher than in plan
Help Desk workload (2): Higher £1m_ additional cost built 30%
than in plan because of poor back- into CS Budget for help
fill training re. APS smart & LFS — desk costs. This is on top.
Buyout of SLA conditions - help I Expectation of a deal. 40%
desk and transaction times
CSR+ migration: 2 week firebreak Increased costs/ delay 60%
to apply CSR+ (additional fallow
payments/ delay to end of roll out)
49
15.0
4.0
1.0
3.0
2.3
2.9
4.0
0.5
1.0
1.5
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Business New Business margin shortfall: Assumption is that 20% of 40% 9.7
Develop unable to charge for all the work planned work is not
ment which has been resourced/ done: carried out/ completed,
additional risk over the under- and that it is only possible
utilisation assumed to save 25% of the
planned costs: hence the
margin loss is 75% of 20%
of planned revenue
New Business volume shortfall: £20m revenue risk at 50% 40% 10.0
unable to develop full revenue margin loss on
stream, with loss of contribution _ contribution basis
to fixed costs
Aggregation - eliminate double counts 100% -3.0
OPERATING SPEND - GROSS 79.9
RISK
OPERATING SPEND RISK - WEIGHTED BY 22.0
PROBABILITY
GROSS NOMINAL RISK 91.1
TOTAL ASSESSED RISK 25% 23.2
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IN
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Requirements
Report
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ICL Pathway Customer Requirements Report Ref: PAVREP/0S2
Version: 1.0
Date: 09/08/2000
Customer Requirements Report
1 MONTHLY SUMMARY
The Performance and Innovation Unit (PIU) proposals for pilot projects is in hand and will go
to POCL.on 10/8. The ERA business analysis work is.underway. -All CSR+ release business as
usual dependencies are being covered. The Mobiles & Satellites holding factors for roll-out
completion have been cleared.
2 PROGRESS
2.1 NEW BUSINESS
2.1.1 NETWORK BANKING
Because there is no customer funded requirements activity running during the Network
Banking Engine procurement and the Pathway Proof of Concept project, the main task has
been document review and origination. The following were reviewed:
e¢ POCL Requirements & Solutions draft F (for internal POCL use only)
e Pathway and Escher architecture documents
e@ PoC draft report
© Two sets of NBE'vendor questions and answers
New documents issued included:
° A competitive NBE architecture based on RS 6000
A competitor analysis
A longer term Pathway architecture
An alternative architecture cutting out the NBE
An initial risk register
We also prepared for a Network Banking end-to-end review with POCL, particularly
concerning reconciliation requirements, but this was cancelled by NBU at the last moment.
2.1.2 ERA
Alan Paterson and Mike Chawner started on the ERA project, based out of Chesterfield, on
16/7.. We now know this was later than should have been the case because most of the POCL
workshops were complete and the opportunity for business analysis input into the. requirements
was passing.
Much of the input to the business requirements, and hence the shape of the new Pathway
requirements, is being influenced by our competitors. There are currently five from Deloittes,
four from.SEMA, two from FI, in addition to the ten or so Post Office staff on the project.
These numbers dilute the influence of the (three usual) ICL staff even though the analysis
centres on the re-engineering of the Pathway solution.
2.1.3 POCL SERVICE DEVELOPMENT PLAN
No activity.
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2.1.4 PIU REPORT
The Network Banking team has produced two: documents, whilst waiting for Network Banking
to come back on to the agenda. These are in response to the Performance & Innovation Unit
(PIU) report seeking ways of replacing the Post Office Counters business that will be lost when
Automated Credit Transfer (ACT) of benefits becomes more widespread-from 2003.
One was 'one.a-general Pathway response to the PIU proposals and a second. detailing our
proposals for pilot opportunities. A presentation was also’developed and given to POCL as
part of the discussion on PIU response actions. An initial internal-response against the POCL
“11-bundle” wish list was generated and this is in course of elaboration to a proposal that will
be provided during the week of 7/8 and will help POCL-make its response to central
government.
2.1.5 CARD SYSTEMS
ICL is sub-contractor to EDS in the bid for the “Youth Card”. We sent:documentation on CMS
to the team involved, but their initial feelings are that CMS appears too specific to benefit
payments. We have offered to go and talk to them.
2.2 CSR+
2.2.1 ACHIEVING SLAS
We have produced a Change Proposal (CP) to address the major issue Customer Service has
where the office is.not being harvested. because one or more counters have become
disconnected, typically because they are powered off or: not POLO'd following power being
restored after a cut.
The Tidy Closedown facility, which was put into CSR+ to help bear down on users.shutting
counters off in fixed outlets, was forced through the.CCN process. We will now beable to
document.these wilful switch-offs. and can therefore expect these to disappear from the
statistics.
We have resisted a further attempt by POCL to call our TIP File Repair Facility into question.
2.2.2 AP CLIENT MIGRATION
Specifications for migrating more AP Clients were put through and a disaster standby facility
for Girobank was proposed.
2.2.3 AP FILE DELIVERY
The cut in of migration depends on introducing facilities to allow Client files to be sent
according to customised schedules. This requirement has been developed and the CCN
produced.
2.2.4 QUANTUM/SPM
The CCN to licence the secure Siemens .dll for enforcing security of these smart cards at the
counter’ was forced through. Quantum is still not a first day player in CSR+.
2.2.5 OBCS
We produced the CP to change the statistics to be generated for OBCS local/foreign
encashment counting.
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Version: 1.0
Date: 09/08/2000
2:2.6 SADD
A version.5.4 of the SADD, responding to 200+ POCL comments, was issued on 20/7. There
were a further 29 supplementary comments, now resolved, and a version 5.5 will be previewed
the week of 7/8 August and published on 18/8. This version will have been maintained for
CCN approvals to.the date of issue and should correspond with the CSR+ system, which is due
to be approved for release at the Release Authorisation Board on that day.
2.2.7 RELEASE NOTE
An Appendix, in effect updating the year-old CSR+ Release Contents Description for the 80 or
so significant CCNs that have been Approved in the last year, was produced for incorporation
in the CSR+ Release Note.
2.2.8 PINICLS ETC
Customer Requirements helped in the “scrubbing down” of the PinICL inventory to help
define what had to be fixed at the various stages of CSR+ and to evaluate new PinICLs as the
release date approaches.
2.2.9 MOBILES & SATELLITES
The CCN for the Mobiles Configuration specification and introduction was approved and the
volume requirement of 340-349 units set by POCL. The Physical test was also completed by
POCL so all the holding factors on product line production have been cleared.
The CCN for introduction of Satellite communications access method was approved.
Now that these two CCNs have been seen through it will be possible to complete the rollout i ing = a
Q1 2001. Customer Requirements will now withdraw gracefully from these areas of ¥ .
endeavour.
2.3 ISO PROCESSES & PROPEL ® :
John € has attended the Siebel release update session. He produced the Customer Solution
Life Cycle (CSLC) checklist to qualify new projects and maintain the Siebel entries.
He has reviewed the new Business Management System roles and processes intranet and the
associated Process Review Forum, the group that-reviews the ISO9001 processes. He-has also
contributed to the process.that includes Customer Requirements input at Stages 3 and 4 of
CSLC, functional and system requirements specification.
We have got John P through the scarce-second part of Macroscope training, and Alan P
through the two-day Macroscope course on Business Analysis using ArchitectureLab and OPAL
techniques & software.
3 CURRENT CRITICAL PROBLEMS
None.
4 ISSUES
I believe we may need to look again at.the commitment to ERA, particularly in terms of
sales objectives, earlier than we had planned. Our representation is strong for our
numbers but is entirely systems.oriented. The opportunities appear to be crystallising
earlier than anticipated even though.their delivery will be protracted. Liam and I will
discuss this before offering the team a proposal.
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y10dayy
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a
won) ==
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ICL Pathway Customer Service Report Ref: PA/REP/OS2
. Version: 1.0
Date: 09/08/2000
Customer Service Report
1 SUMMARY
© Data Centre performance has been marred.by problems with the Correspondence Servers.
These caused major failures for the transaction deliveries for OBCS/HAPS/TIP. Significant
numbers will show up as. DAY B transaction failures and are expected to result in high
penalties. The problems are under investigation but in the meantime a workaround has
been initiated which requires SSC to stop and restart Riposte twice a day.
e The LRDP is tiow complete and the final report-issued. The release of CSR+ data to the
live estate has been completed with time to spare.
e There are currently issues within the APCM plan with resourcing for bespoke
developments. The bespoke interface for Northern Ireland Electricity is stretching APS
Host resources and the current view is that development will not be completed before
January 2001. Furthermore, BT has indicated that they may not have any resources
available during the next 12 month to perform tests of the new interface. The AP Client
Migration programme needs to be replanned to incorporate the changes required to
address these-issues and there is a high risk that not all activities will be completed by the
end of March 2001.
e There is concern over the amount of change currently being pur into the CI_4 baseline to
be used for the Live Pilot and the consequent risk to the successful running of the system
following the upgrade.
e Following the successful trialing of the revised Non Polled Outlet incident management
procedures during early July, PON have now agreed to suspend the BIMS process and
accept updates to incidents via a summary column on the Non Polled Outlet report.
e Remedies have now been calculated and submitted for Q1 2000 for Data file delivery
(£26,199.13), OBCS stops (£998.92) and System Service (£255,574.19 of which
£192,403.82 is recoverable from-OSD).
e OSD continues to work to achieve service levels and many improvements in SLA
performance have been achieved. The red alert has been downgraded to Divisional alert for
continued monitoring.
e Reg Barton, Nick Crow, Wendy Kerrigan and Claudia Walker join the team on 14/8/2000
as Field Service. Managers. Christine McKay joins on 21/8/2000. They will be the eyes and
ears for Customer Service in the live estate concentrating on Manager Care visits and
Outlet Problem Management.
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Version: 1.0
Date: 09/08/2000
1.1. VITAL STATISTICS
Live Base as at 1* August 2000: 9814 Post Offices, 22,198 Counters
Cumulative from 1* December 1999
OBCS
Total number of payments to date 100,524,027
Total number of payments in July 28,858,272
Total value of payments to date £7,653,950,795.95
Toral value of payments in July £2,140,997,022.43
EPOSS
Toral number of receipts to date 162,773,795
Total number of payments to date 52,309,938
Total number of zero value transactions to date 12,369,038
Total number of receipts in July 37,312,683
‘Total number of in payments July 7,542,502
Toral number of zero value trarisactions in July 2,934,795
Total value of receipts to date £8,984,101,567.69
Total value of payments to date £4,739,326,163.42
Total value of receipts in. July £2,301,609,748.09
Total.value of payments:in July £698,531,699.90
APS
oral number of receipts to date 50,423,968
Total number of receipts in July 11,936,285
Toral value of receipts to:date £1,083,691,935.86
Total value of receipts.in July £325,775 ,004.05
NOTE:
Data from May 1999 will be published once-analysis of archived Data Warehouse data
is.complete (end of August 2000 target-date).
The above data is monthly. Weekly data is now available.on the Customer Service web
site at the following location:
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Version: 1.0
Date: 09/08/2000
2 PROGRESS
2.14 OPERATIONS
2.1.1 AVAILABILITY MANAGEMENT
e Data Centre performance has been marred by problems with the Correspondence
Servers. These caused major failures for the transaction deliveries for OBCS/HAPS/TIP.
Significant numbers will show up as DAY B transaction failures and are expected to
result in high penalties. The Bootle Bootserver is currently off-line for investigations
into the recent failures.
¢ During July there were no major network incidents, although on Sunday 30" July there
was a fibre break affecting one half of the ATM service into Bootle. Due to the network
resilience, there was no impact upon service.
2.1.2 REFERENCE DATA
e The CSR+ LRDP is now complete and the final report has been issued. A number of
minor problems are outstanding but these should not cause any issue with signing. off.
e The release of CSR+ data to the live estate has been completed with time to spare.
© PON data quality is still'a cause of concern. PON have not yet been able to appointa 2
problem manager.
2.1.3 POCL INTERFACES I .
x #
© A draft CP has been raised to start the LFS operational schedule earlier and avoid excessive
phone costs. This is still under discussion. POCL have raised a CR concerning 6 or 7-day
working in the weekly schedules, but this has not yet been received by Pathway.
2.1.4 AP CLIENT MIGRATION
© The forthcoming release of Cl_4 is diverting attention away from APCM issues, resulting in
slippage across the patch.
¢ The current view is that the required functionality to deliver files 5 days per week instead
of daily will not be available before Q1 2001. So far, only 5 clients have been confirmed
which can be migrated without the 5-day delivery functionality developed for. Girobank,
leaving a short window to migrate the remaining clients.
© The bespoke interface for Northern Ireland Electricity is stretching APS Host resources and
the current view is that development will not be completed before January 2001.
Furthermore, BT has indicated that they may not have. any resources available. during the
next 12 month to perform tests of the new interface.
e The AP Client Migration programme needs to be replanned to incorporate these changes
and it is almost certain that not all activities will be completed by the end of March 2001.
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2.1.5 PERFORMANCE MANAGEMENT
¢ Work has been proceeding on the confirmation of the short-term and the long-term
designs. It is planned to issue a draft end to end design document at the end of next week
and follow that up with a walkthrough.
e Resource has been devoted to addressing the live performance issue with the
Correspondence Servers. As an interim workaround, it has been resolved by reloading
Riposte twice daily on the Correspondence Servers in both Wigan and Bootle.
2.2 SUPPORT SERVICES
2.2.1 GENERAL
SSC are performing the closure-and reload of Riposte at 07:00 and 18:00 daily.
Interim arrangements have now been put in place with TeamWARE for on-going support
of Crypto. In the medium term it is expected that the service will be provided via
OSD/E-Applications.
2.2.2 MAJOR RELEASE IMPLEMENTATION
The Data Centre migration plan is now fairly stable.and:the.upgrade of the OTT rig isnow
due to start on.Monday 7"-August. The HAPS and TIP upgrade were merged into the-
overall upgrade plan but this is currently being revisited due to the change.of upgrade date.
e Counter implementation planning continues with weekly reviews. Discussions with POCL
are ongoing.and further discussions this week may chafige:the migration schedule.
© The amount of change currently being put into the baseline to be used for Live Pilot seems
to be slowing down. The problems that require urgent fixes are being reviewed on a regular
daily/weekly basis.
2.2.3 RELEASE MANAGEMENT
© 57 Release Notes for Cl_3R have been raiséd over the reporting period and 26 have been
authorised for live. To date, 48 Release Notes for CI_4 have been raised from the system
baseline document.
Release Management has completed its move to the 6th floor in BRAQ1.
Rebecca Burger, Amanda Knight and Shadini Hussein (I.T.) have joined the team as Release
Controllers.
2.2.4 ISSUES
There is concern over the amount of change.currently being put into the CI_4 baseline to be
used.for the Live Pilot.and the consequent risk to the:successful running of the.system
following the upgrade.
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Date: 09/08/2000
2.2.5 METRICS
For the month of July 2000.
Release.Notes cleared’ by OTT 59
Total Calls raised-through SSC 1293
Total Calls closed through SSC * 1662
Of the total calls closed, 1040 were in categories (e.g. Advice and Guidance, Published
Known Error) which should have-been closed by SMC.
2.3. INFRASTRUCTURE SERVICES
2.3.1 MANAGEMENT SUPPORT UNIT
2.3.1.1 I BUSINESS INCIDENT MANAGEMENT
© Following the successful trialing of the revised Non Polled Outlet incident management
procedures during early July, PON have now agreed to suspend the BIMS process and
accept updates to incidents via a summary column on the Non Polled Outlet report. This:; mE
has enabled MSU to devote more time and effort into the reporting and follow up rs 4
procedure in addition to a resource saving of approx. one half man-days effort. PON are Ee
exceedingly happy with the new procedure which they say assists them in monitoring the ‘
Outlets and, more particularly, APS transaction delivery, more closely.
e Charges for MERs have been submitted by POCL for April, May and June 2000.and April
and May have been agreed with the exception of those incidents which are identical to the
incidents referred to the Commercial Department for ratification in March this year. We
are awaiting the outcome of their deliberations.
© The joint. Accounting and.Reconciliation incident review was held at Chesterfield on
17th July. Once again this went well with both sides commenting on the positive aspects of
now working together. Concern was expressed though at the number of APS réconciliation
errors and differences within PON where HAPS and TIP were brought into balance within
PON central systems. As a result a meeting was held with the APS reconciliation team on
24th July at BRAO1 to identify the main problem areas. The feeling within Pathway was
that PON were making a.good deal of noise over minor problems, which had now either
been fixed for Cl_4, or were in the process of being fixed. As a result, PON went away
confident that we were handling any incidents we had received correctly and that Pathway
were taking the appropriate steps to ensure the service was delivered to specification.
2.3.1.2 MIS
© Remedies have ‘now been calculated and submitted for Q1 2000 for Data file delivery
(£26,199.13), OBCS stops (£998.92) and System Service (£255,574.19 of which
£192,403.82 is recoverable from OSD). MSU are now calculating the weekly and have
completed June 2000 for Q2 (Data file delivery = £6911.42, OBCS stops = £663.97 anid
System sefvice = £8274.03). Data file delivery remedies have been agreed with PON a
further meeting to discuss the System Service remedies is scheduled for 18th August.
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e Pathway and PON have now agreed on the way forward to ensure remedial calculations are
delivered on a weekly basis for review. This will ensure that agreement can be reached as
soon as possible after the end of the quarter.
© The July service review (discussing June 2000 service performance) was held on 26th July
with PON. The review book showed a steady improvement in HSH / System service SLA
performance which was enthusiastically received by PON. Quarterly conformance figures
were shown for all SLAs from Q4 1999 to date.
2.3.1.3 IT SUPPORT (FELTHAM)
No issues to report.
2.3.1.4 GENERAL
Procedures for ISO 9001 are currently well under way and in a good state around the whole.of
MSU.
2.3.2 BUSINESS EFFECTIVENESS
A draft of the Cl_4 AP Outlet migration process is out for comment, as is a draft of the
complaint management process. Work is on going in the:areas of the.re-write of the Service
Management Framework and in preparation for the BSI audit.
2.3.3 FIELD SERVICE MANAGERS
Reg Barton, Nick Crow, Wendy Kerrigamand Claudia Walker join the team on. 14/8/2000.
Christine McKay joins on 21/8/2000. They will be the eyes:and ears for Customer Service in
the.live estate concentrating on Manager Care visits and Outlet Problem Management.
2.3.4 STRATEGIC SERVICES UNIT
2.3.4.1 BUSINESS AS USUAL
1. OSD Red Alert
OSD continues to work to achieve service levels and many improvements in SLA
performance have been.achieved. The red alert has been downgraded to Divisional alert
for continued monitoring.
2. Help Desk Forum
a) July's HSH/NBSC review took-place on the 18" July in Manchester. The Helpdesks
were actioned to meet to look at the impact of CI_4 on the c/a scripts and interface
agreement.
b) The Joint.ICL Pathway/PON/Helpdesk CI_4 meeting was held as planned. The
output has been widely reported and recognises how well both desks work together.
c) A CI_4 training meeting was held with HSH this week. 60 staff will be trained
before.Live Pilot and the remainder will be trained before migration. There are still
some areas requiring clarification of training detail.
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2.3.4.2 OCMS
The first release of OCMS will now be delivered at the end of November and the final
release, which introduces the capability to update Tivoli configuration changes
automatically, will be delivered at the end of March 2001. Before’this the Tivoli
configuration will have to be completed in a semi-automated manner but this is not
critical to the. success of the change business.
2.3.4.3 OPERATIONAL BUSINESS CHANGE
The - following tables'show actuals for June & July and firm.orders raised for changes:up
to the beginning of September.
1. Opening/Relocation/Refurbishment (Outlets)
Month Total Actual Deliveries I Actual Deliveries Additional
Deliveries Allowed Within to Contract
Contract
June 41 10.31 30.69
July 32 12.25 19.75
Month Total Orders I Forecast Deliveries Forecast Deliveries
Allowed Within Additional to Contract
Contract
August 37 14.05 22.95
Sept 6- 15.64 0
2. Closures (Outlets)
Month Total Actual Deliveries Actual Deliveries Additional
Deliveries Allowed Within to Contract
Contract
June 4 6.44 0
July 13 7.66 5.34
Month Total Orders I Forecast Deliveries Forecast Deliveries
Allowed Within Additional to Contract
Contract
August 7 8.78 0
COMPANY IN CONFIDENCE
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FUJ00058193
FUJ00058193
ICL Parhway Quality & Risk Report Ref: PAVREP/052
Version: 1.0
Date: 09/08/2000
Quality & Risk Report
MONTHLY SUMMARY
Security. Virtually all effort is still-focused on implementation of KMS. Issues are being
addressed daily to maintain progress, including demand on and performance of
Certification Authority Workstations (CAWs), incorrect build of tive KMS platforms,
Siemens metering code, testing live keys on OTT rigs. Additional resource has been
identified to fulfil the role of Key Manager - this now being further reviewed to impact the
proposal for increasing migration rate.
Risk Management. The Business Case:risk-exposure has increased slightly in the last month,
mainly as a.result of a further increase in new business risk and increasing headcount
pressure. The pressure of CSR+ activity has resulted in cancellation of several risk reviews.
Business Continuity plans continue to make progress despite replacement of a member of
staff in the last month.
Quality. [S09001. Progress is being made with process update. Most Directorates will be
complete by end August. A date for formal assessment has still to be agreed with BSi - it
will be timed so as not to coincide with critical programme activities. Process readiness,
cross-directorate issues, and Business Management System (intranet) content are being
reviewed via the Process Review Forums.
Audit. The audit programme continues to plan. It is generally raising issues of poor
adherence to process, lack of document control, poor project definition. The audit solution
is still the major issue — problems continue to plague it and large chunks of data cannot be
extracted and are having to-be reconstructed.
Issues:
e Build problems are emerging again - on Audit workstations and live and test
security workstations.
© = Turnover-and recruitment of suitably experienced QRM staff.
PROGRESS
2.1 RISK MANAGEMENT
e Risk reviews have been conducted with Customer Service’and B&TC.
© The Risk Analysis & Management Process (RAMP) has been defined.
© The Business Case Risk Register. The weighted total now stands at £23.1mn, an
increase of £0.6mn from June. The major risks are now associated with:
© New Business (increased by £0.5mn to £9.3) — continuing recognition of the
difficulty in realising the total volumé in the business case.
© Staff (increased by £1mn to £8mn) as.a result.of increasing pressure on headcount
and therefore risk to the cost reduction plans.
© Implementation risks have remained the same at £1.2mn, despite an additional risk
being identified - slip to the achievement of the final roll out.
© Development risks have fallen by £0.6mn to £3.3mn, as a rsult of reducing long
term technical risk of the solution architecture. The CSR+ risk will reduce
significantly in September as a result of completion of data centre migration-and
COMPANY IN’ CONFIDENCE Page 31.0f 45
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ICL Pathway Quality & Risk Report Ref: “PA/REP/OS2
Version: 1.0
Date: 09/08/2000
start of counter migration. The impact of the 3 week slip will be included in
forecast costs.
© Operational risks have decreased (by £0.4mn to £4.4mn), as a result of the
reduction in helpdesk workload risk.
e Business Continuity plans. The first draft of a high-level project-plan'for. completing and
implementing the plans has been defined. A control document to track the number and
structure of Business Recovery Teams (BRTs) has been developed. The structure of each
BRT team is being reviewed and an awareness campaign developed.
2.2 SYSTEM SECURITY
2.2.1 GENERAL
© CP2292 et al (Anti-Virus software on the Live-Estate). This CP still being
progressed as a matter of real urgency. A meeting has been held to finalise
arrangements for implementation. Progress delayed by other Cl4 activities.
© DPA. Responsibilities under the DPA for ownership of data have been agreed and
work is underway on producing requirements as a precursor for contractual
negotiation on processes for handling Subject Access Requests.
e Security documentation continues to be reviewed.as part of the ISO 9001 plan.
Most documents have been re-baselined or are in the process.of formal review.
Work is required'on establishing a security presence-and. process on the Pathway
Intranet.
2.2.2 CSR+
© The draft continuity plan for the security administration. workstationsis progressing:
© Cryptographic Key material continues to be provided for test purposes.
e 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.
e The KMS User Guide has béen completed and is being baselined. All PinICLs raised
for changes to the Guide during Technical Testing have been signed off. Some low
priority PinICLs-remain for software issues.
© KMS Implementation. KMS supporting documentation, including processes for key
handling and exception events during migration is undergoing formal ceview. Work
continues on a number of hangouts from the Plan. These include finalising
arrangements with SMC for problem/resolution and reviewing KMS events to
determine security-related incidents and to produce KELs for SSC. A solution to the
problem of testing live keys on the OTT rigs has been found and implemented. A CP
has been prepared to raise additional resource for a full-time Key Manager until
April 2001.
e Network Security tools. A CP is imminent and a presentation given to interested
parties.
e Implementation.of agreed recommendations from the RODB-risk assessment is being
monitored,
2.3 QUALITY
© 1$09001 Programme.
© Quality Management processes continue to be reviewed and updated.
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ICL Pathway Quality & Risk Report Ref: PA/REP/OS2
Version: 1.0
Date: 09/08/2000
e Process Development update:
¢ Risk-process complete; security processes progressing - many will be revised
as CSR+ experience is gained.
* Completion of C&F processes is:still proving difficult.
¢ Development is still on target; the major process (DE/PRO/003) is being
reviewed. Interfaces, primarily to CS-are being discussed.
¢ Customer Services processes are being re-structured; target end August.
e Programme Office; Document Management Process update-is under review.
© Business Development and’ Customer Requirements will use the CSLC
processes as relevant for new business.
e Implementation processes are in final stages of review.
e Process Review Forums have been started, with the objective of defining Business
Management System (Intranet) content, identifying process issue and interfaces.
e Business Management System.(BMS). Reviews of Directorate requirements have
been completed. Intranet test site set up.for-review purposes. High level
overviews of Pathway processes and of Pathway responsibilities for ICL processes
created. Utility established in PVCS to automatically update the site, each day,
with links to the current approved versions of QMS documentation.
¢. The.date for the final assessment has-been delayed, so.as not to coincide‘with
CSR-+ migration. Exact dates:are to be discussed and fixed with BSi.
© Propel implementation. 1
© Stage 1 outputs have been reviewed. Those of relevance to Pathway have been ..
identified and will be completed prior to. moving to Stage 2 (for Network
Banking initially).
© Other programmes are being reviewed, discussed to understand the relevance to
Pathway and timing.of rollout.
2.4 AUDIT
¢ Internal audits: "
e CSR+ Migration Audit. Comments on the draft report have-been incorporated
and Corrective / Preventive actions being discussed.
e@ Commercial/Financial Audit. The first part of the audit (documentation) is in
progress. Lack of documented procedures and due diligence activities for
flotation have delayed proceedings
2 Supplier Management - Training. Audit is in progress.
e Data Centres Audit has been completed and the draft report circulated to the
Data Centre managers. A CAP is considered inappropriate but the report suggests
possible action within the Data Centre and OSD to remedy deficiencies identified.
e Joint Audit preparation. A meeting was held with Chris Paynter.in Chesterfield to
discuss POCL’s planned audit programme. Although: most of their auditing will be in
the POCL domain, there are possible end-to-end issues on Reference Data and
Invoicing, which might point to joint audits. These issues were raised with Dave
Wilcox and Graham Wingrove who do not foresee problems given the likely
timescales.
* Audit documentation update for CSR+ has been nearly completed.
« CSR+ preparation. Audit server and workstation migration activities were found to
be missing from the migration plan, and the missing steps have been added. Audit
workstations at Wigan: & Bootle were found:to be markedly off-spec on test;
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ICL Pathway Quality & Risk Report Ref; PA/REP/05S2
Version: 1.0
Date: _ 09/08/2000
representation has.been.made to OSD to correct the deficiencies in line with
Migration timescales.
e Audit Solution Problem List. The top problem still coricerns rebuilding of missing
file-indices. OSD’s data initial recovery plan was rejected; Richard Laking is assisting
them.
e Brian Mooney has now left Pathway. A direct replacement is not being sought. A
data analyst is being recruited to conduct audit extractions and support security
event management.
3 ISSUES
© There are certain areas of Pathway’s.business that need to be more.actively involved in the
risk analysis and management process e.g. TDA.
© Risk reviews.are re-scheduled or postponed indefinitely on the basis that there are more
urgent problems to’ which to attend; these problems arise more often than not from
unanticipated or discounted risks. This is symptomatic of an underlying lack of discipline in
certain areas within the business - in for example following’processes, definition of
projects, document control.
¢ A plan has been devised to handle the demand on the availability of the limited number of
Certification Authority Workstations (CAWs). There are emerging issues over the
performance-of CAWs under volume conditions. This is being addressed by KMS
Development.
e It is apparent that the test and live KMS platforms have been built with the incorrect
increments and a complete re-build is required. This places further demands on QRM
resources to repeat commissioning. activities.
© Delivery of secure storage for cryptographic key material has been delayed. Existing secure
facilities mitigate risk in the short term.
e There is an urgent-need to establish that we have the correct. version of the Siemens
Metering deliverables for AP Quantum/SPM and that the code as prepared-will interact
correctly in the live environment. Tests have been scripted and will be undertaken
imminently.
© The impact on the Key Manager of recent proposals to increase the daily number of
migrations will need to be assessed.
Staff turnover in QRM has been very high and it.is proving more difficult to recruit.
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yoda
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FUJ00058193
ICL Pathway Business Development Report Ref: PA/REP/0S2
Version: 1.0
Date: 09/08/2000
Business Development Report
1 SUMMARY
ee Prin
cipal efforts continue to be focussed on Network Banking ‘and ERA with a renewes
emphasis on Government gateway asa result of the PIU report.
e Network Banking:
The Proof of Concept work is nearing complétion with the final report and
demonstration available 11" August. The POC exercise has achieved all objectives
to date and there is now a clear view of the forward development path with the
associated risks identified. Web enabled Riposte is achievable within the Horizon
environment and this will also provide us with a clear forward strategy on Horizon.
The ITT responses for the Network Banking Engine have been received by Post
Office and are currently being evaluated. A decision is expected by end August. We
continue to review the Pathway strategy regarding Horizon being the interface to
the banks. We are ready to respond to Post Office if needs be.
Post Office are now under pressure to respond to the government's call for
Universal Banking. The banks have come out against supporting Universal bank.
There is a real [political play going on and our position is to stay low in that we can
respond to whatever direction is taken.
A successful visit to Escher’s premises:in Boston took place earlier in the month.
Five PO people attended and came away impressed by what they saw and heard.
« ERA:
Progress on the. ERA project is good with additional resource now being applied
from ICL Pathway. This involves requirements, TDA & counter development staff
and this resource will be involved up till end October when the next phase of work
starts.
e Government Gateway:
* The PIU report has emphasised'a number of key areas where it believes the Post
Office can be the:focal point of delivery, namely GGP (Government General
Practitioner) and ILAP (Internet Learning Access Point). The Post Office.must put
clear business cases to Government by 1" September. The PIU report has stressed
that it wants to see pilots in place in Spring 2001. We are currently discussing
these with Post Office and reviewing options.
© Marketing Communications:
Slow progress. This is a real grind. Post Office are not tuned in to positive pro-
active comms. They much prefer a reactive defensive position. We continue to try
to break down the barriers. The good news as I write.is that we have approval to
use their material to promote the fact that we have just installed the 10,000" post
office.
© NAO Report:
Looks like this is finalised at long last. It is now due for publication on 18" August.
NAO have also given us sight of their press release which we have commented on.
2 PROGRESS
Business Development:
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ICL Pathway Business Development Report Ref: PA/REP/OS2
Version: 1.0
Date: 09/08/2000
e EFTPOS: We understand that Andy Radka, ex BSM manager returns:from
extended leave 7 August to take overall project management control for EFTPOS.
We expect to engage with him within two weeks.
e Mails: A very useful Mails workshop has taken place with Escher’s support. This
has given Post office a lot of thoughts and ideas for them to build into a forward
plan to engage'their Royal Mail and Parcelforce colleagues.
Internal Communications in ICL Pathway
© Brief EnCounters was distributed w/c 17" July. It has been redesigned and launched
via email with a. hyperlink to the ICL Pathway Community on CafeVIK. Positive
comments received from. staff members regarding the re-launch.
e An internal ICL Pathway Opinion Survey on marcomms. has been produced and
sent to all ICL Pathway staff. To-date approx. 100 replies have.been received. A full
evaluation report will be produced and distributed to the Management team first
and ther to all staff via Brief EnCounters.
© The ‘Induction Pack’ - produced as a slot-in document for new joiners, is at present
with Document Control, waiting for PVCS approval.
© We have placed an urgent request in for an additional 5 systems to be built:
e 1x P1 - Future Focus for DTI
¢ 4x CSR+ PII = 2 for Marketing Suite, 2 for external demo
Communication within ICL
© The ICL Pathway Community on CafeVIK has been re-launched and has received
positive feedback.
* ICL's Future Focus has now been signed off with the inclusion of Horizon. This is
for the REA24 Future Focus, with the same going to the additional Future Focus
site at the DTI late summer.
© The ICL Pathway rolling demo has proved a huge success within ICL. Because of its
success, it is being updated and redesigned by the ‘Design Studio’ in BRAQ1, such
that we can distribute it to a wider field.
External communication/ PR/Media
e Working with a number of suppliers (Energis, Eicon and Metron) regarding case
studies and press releases --all of which are with the Post Office for approval.
* Relationship building with National and IT media continues and-is improving.
* Please find attached two summaries on press coverage received during July on ICL,
ICL Pathway, Horizon & Post Office automation.
Post Office Network Communications
e Pastiche event is due to take place in. September with key players from the Post
Office attending. To-date:Stuart Sweetman, David Miller, Alan Barrie, John Main,
Tim Thorpe and Ann Nevinson have accepted.
‘COMPANY IN CONFIDENCE Page 36 of 45
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ICL Pathway Business Development Report Ref: PA/REP/OS2
Version: 1.0
Date: 09/08/2000
© We are working with the Post Officé on the forthcoming Party Political
Conferences. They are deciding whether to run with demonstration offices or
operational temporary offices. Dates of the Conference are as follows:
© 17-21 Sep - Liberal, Bournemouth
© 24-29 Sep -'Labour, Brighton
2 2-5 Oct --Consérvative, Bournemouth
Government communications
« Reviewed executive summary and press release of the NAO report; drafted an ICL
positioning statement and forwarded to flotation document clearance team for
checking.
© Wording on Horizon for the MP's newsletter (Information Technology Bulleting)
has been approved between Jane Warriner (PO) and John Cheetham (ICL
Corporate Affairs). Due to be’ published in August.
Marketing Communication Team
¢ All team members have attended Conversations for Change.
© Alex Garforth replacing David Hilton started on 3 July.
International
© Continue to receive requests about Horizon from overseas. Interest this month
includes Egypt and Mauritius. Profiles and achievements have been forwarded.
3 ISSUES
e None
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ody =
uonEeuoWsdwy
HMI
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FUJ00058193
FUJ00058193
ICL Pathway Implementation Report Ref: PA/REP/OS2
Version: 1.0
Date: _ 09/08/2000
Implementation Report
1 MONTHLY SUMMARY
A total of 10,116 outlets have now been migrated to Horizon, as of close of business.at 4
August 2000, representing 56% of the network. Achievements in the installation programme
continue to exceed the planned levels on a weekly and cumulative basis.
The programme remains on track to achieve the 1" November 2000 rollout payment milestone
of 10680 live outlets. It is currently forecast that this will be achieved in mid-August.
Training scheduling, specifically invitation timeliness has improved considerably. At a working
level this is no longer believed-to be a major issue. However, a significant deficit in the number
of courses required compared to-the contracted quantity is being forecast:and is likely to create
a dispute with PONU over responsibility for the issue and the costs involved (see Critical
Concerns). .
Activity continues to align all staff with future opportunities in ICL in preparation for the
closedown of the Implementation team at the end of rollout next spring. This includes the
planned transfer of staff into E-Applications and into vacant roles in Pathway Customer
Services. This work also includes the creation of a rollout services group to provide a shared
rollout service to this and other rollout programmes in ICL.
2 PROGRESS
The infrastructure tail plan continues to make good progress and is on track to be completed
by the end of September. The deadline for accepting non-compliant outlets was passed on
3oth June. From this point outlets can only be accepted if they are already compliant
otherwise they will need to be managed through Operational Business change. On an
individual outlet basis Pathway will consider accepting outlets, provided dates can be agreed for
completion of infrastructure activity which meets the requirements of the installation
programme.
Review of formal documentation for the survey and preparation activity for satellites is at an
advanced stage‘and has included PONU review. These activities remain on target to achieve
the planned dates for satellite and mobile installations. The CCNs for mobiles and satellites
have now been approved by PONU.
Preparations for CSR+ the introduction of CSR+ and the live pilot remain on.track for
the revised CSR+- live pilot dates. Up to 20-new installations will be included in the
live pilot.
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ICL Pathway Implementation Report Ref: PA/REP/OS2
Version: 1.0
Date: 09/08/2000
ACTIVITY. NGE ULATIVE
Number of Open Post Office Outlets 9 18,147
INFRASTRUCTURE PROGRAMME
Sites Entered Into the Programme - 18,050
Sites Remaining to’be Surveyed - 674
Sites Remaining to be Prepared : 1,491
INSTALLATION PROGRAMME
Sites Migrated and Live - 8,553
Percentage of Open Sites Live - 56%
Counters Live > 23,000
3 CURRENT CRITICAL PROBLEMS
Examination of course usage, relative to the contracted number of training course, and the
introduction of a detailed usage forecasting model has identified a large potential shortfall of
courses. This would require PONU to purchase approximately 2,000 additional training
courses. The driver for this is course occupancy. Levels of course occupancy reduced in the
last two months consecutively, exacerbating the problem. The'deterioration in occupancy
levels is considered to be caused by an increase in the number of postmasters refusing training
dates because of holidays. Postmasters are made aware of installation dates and the training
window, relative to the install date, up to 14 weeks prior to: installation, but the dropout ‘occurs
several weeks after this. This indicates that acceptance.of training dates and lack of
enforcement by PONU is having a considerable impact on-attendance. This has, and will
continue to add to, the shortfall in training courses currently being predicted. All parties wili
need to increase their efforts to improve this situation.
Not surprisingly PONU are concerned about this and are likely to claim the issues around
training scheduling caused this situation. Although training scheduling has contributed to the
problem, PONU have a large degree of responsibility for the status also. Pathway and PONU
are currently working together to determine actions to resolve the issue. Once such action,
allowing 1 additional person to be scheduled onto a training course at the point of re-
scheduling, will be introduced from 1* August and is forecast to reduce the impact by 25%.
Good progress is being made introducing other actions to reduce the magnitude of the
problem.
4 ISSUES
During the last reporting period an increase in the number of modification snagging issues was
observed. This occurred, as a-result of the supplier under-estimating the complexity of the
work required. This‘also resulted in the supplier being unable to complete the work by the
planned date of 30" June. By agreement with PONU, the work has been reviewed and it was
determined 24 sites required snagging items to be addressed for which all appointments with
outlets have been made and work is underway.
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ICL Pathway Implementation Report Ref: PA/REP/052
Version: 1.0
Date: 09/08/2000
ISDN line failures have been noticeably less this reporting period. This area of work will
continue to be monitored until the.end of the programme to ensure a consistent level of
acceptable performance is maintained.
Telephone sampling by PONU has continued with the aim of monitoring improvements in
training invitation timeliness. Actions taken last month by Pathway have enabled a clearer view
of the issues to be determined, action to be taken and improvement to be put in place. An
RODB. audit determined two key issues:
« Inconsistent implementation of the scheduling process for the Preview event
introduced in January and the consequential change in process timing for the UAE
event. Consequently, outlets would have been scheduled late until the. point where
improvement would be:seen in calls made week commencing 19" June. This
improvement was observed in the actual results reported.
¢ Occasional failures in. data format transmission between Pathway and their training
supplier. This resulted in incorrect or missing scheduling data for a small
proportion of outlets such that UAE events where impacted in terms of invitation
timeliness. Data format corrections‘are in place.such that from the.end of July no
further occurrences should be observed. Until then a small percentage of outlets
will be impacted with late UAE invitations (worse case 10-15%).
The following additional issues were also been identified after examining the reported
failures from PONU:
e Sampling calls being made too early by PONU staff
¢ Discrepancies between when invitations were seiit.and postmasters response, which “4
remains unexplained * “
e Evidence of invitations being received when. postmasters claim they have not.been . 3
(questionnaires returned to KPL).
© Late notification by PONU to KPL of outlets to be invited to Preview events. -
The results and supporting evidence of this analysis has been shared with PONU for
each of the 4 weeks where.it was undertaken such that corrective action can be taken.
The analysis will continue until such time-as a consistent acceptable level of
performance has been achieved. It is considered that the issue of training invitation
timeliness has improved markedly and is above or close-to the level of performance
required.
A CCN for the extension of the Countér Manager training course has been submitted
for PONU approval but has since been rejected. There will be an unacceptable impact
to the training quality after the-introduction of CSR + if the extension is not taken up.
Feedback from postmasters continues to support this.view.
5 COSTS
Implementation forecast for the period remains within budget.
Headcount forecast costs have reduced following efforts to begin the transfer of staff to
alternative positions at the end of rollout. This is in line with the Implementation cost
improvement programme.
Negotiations continue with ntl: over weekly site shortfall charges.
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Organisation &
Personnel
Report
FUJ00058193
FUJ00058193
ICL Pathway Organisation & Personnel Report Ref: PA/REP/OS2
Version: 1.0
Date: 09/08/2000
Organisation & Personnel Report
1 MONTHLY SUMMARY
Good progress was made with the transition plan for the Pathway Implementation team.
Employees were notified of the EIP/PVP bonus schemes for 2000/01 and managers were
supported in the associated activity of objective:setting:
2 PROGRESS
. Appointments in July:
External Recruits
Transfers In
E-Apps
- LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
ow
VeAnoy
. Known Joiners
External Recruits
Transfers In
e-Apps
LINKwise
Freelance
Fixed Term Contracts
Adecco Temps
TOTAL:
scooooHco
e July Leavers:
Permanent Staff
Freelance
Transfers Out
Linkwise.assignee
e-Apps
Fixed term Contracts
Adecco Temps
TOTAL:
ONAH
BONY
Known Leavers
Permanent Staff
Freelance
Transfers Out
oN
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ICL Pathway Organisation & Personnel Report Ref: PA/REP/OS2
Version: 1.0
Date: 09/08/2000
Linkwise assignee
e-Apps
Fixed term Contracts
Adecco Temps
TOTAL:
eon
=
© Letters confirming the details of the 2000/01 EJP and PVP schemes were issued to
all eligible Pathway employees. The PVP scheme requires specific personal
objectives to be set for each participant and the Personnel department is working
with managers to ensure all employees have SMART objectives set. The Pathway
Managing Director will review these in early August. To date there has been a
reasonable amount of work undertaken by managers but'so far only approximately
25% of objectives have. been received by the Personnel Department.
© The Roll-Out transition team met and a proposal was tabled by e-Applications to
transfer the Pathway team virtually in its entirety into e-Applications in one group
as soon as it can practically be managed. The original working plan had envisaged
people being transferred to e-Applications once their individual work on the
Pathway Roll-Out was complete. The new proposal involves a group transfer taking
place as soon as the details can be agreed and with employees still needed by
Pathway being placed on assignment to Pathway until their roles have. finished. E-
Applications would then place them on other assignments within ICL.
This proposal is currently being considered in detail by Pathway and the Technical
Centre to decide whether it is workable and is the best way to manage this activity.
The implications for the supply of roll-out services to Large Projects are also being
examined. Many of the Pathway team. will have-a role in delivering the roll-out of
these projects and this has therefore also to be factored into the transition plan.
e Agreement was reached on the roles of the first group of people who are working
full time on roll-out services for Large Projects. Changes to Terms and Conditions
were made which reflected the new roles and offers were made confirming these
changes.
20 appointments were made in July. The number of live vacant requirements: has
reduced from 27 at the end of June to 19 at the end of July. Only 4 new
requirements were submitted by Line Managers for approval.
e Junior Business Analyst roles remain outstanding in Customer Service. 8 external
candidates will be interviewed in early August.
¢ Substantial progress was made on the rectification plan to clear the non-
compliances identified by the Health and Safety report on the Pathway laboratories
in BRAQ1. The Manual-Handling course was completed on 27" July and
Workplace Assessments were completed on 21* July.
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ICL Pathway Organisation & Personnel Report Ref: FAREEIOS 2
Versi .
Date: 09/08/2000.
¢ The Pathway Accommodation plan was'préesented to the Management Team and it
was agreed to implement the plan as proposed. The plan is now being
implemented and will also be formally reviewed in Quarter 3.
e A large number of questions and requests for help were generated by the
implementation of the Personal Choices benefits programme. These were dealt
with by members of the Personnel Department with support from the HR Direct
team.
fee ee we
ae be
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FUJ00058193
FUJ00058193
ICL Pathway Post Office Client Report Ref: PA/REP/OS2
. Version: 1.0.
Date: 09/08/2000
The Post Office - Client Director’s Report
1 MONTHLY SUMMARY
The problems with the OneStopShop contract (MC), the ParcelForce WDM contract (MC-and OSD) and
the SMPP contract (OSD, eAPPS) continue despite escalation within ICL.
Renewed dialogue with PO on the government market has been encouraged by the demands of the PIU
report.
OneStopShop
1CLMC have been informed by PO that the cancellation of new orders will continue until end-
August and ComputerCenter will supply 6,000 laptops single tender. MC have yet to establish
the criteria for renewal of orders. PO have also now informed MC that the selection process
for a single supplier under OneStopShop starts in September.
SMPP
This staggers on with OSD still failing to satisfy customer expectations on either closing down the original
contract or presenting a strong sales case for the proposed Peregrine-based asset management service.
WDM
This ParcelForce Worldwide Despatch Manager contract was a spinoff of OneStopShop, which
has caused problems in OSD and MC for over 12 months. After much agitation by Caroline
this was straightened out, but now MC have run into MC product supply problems and OSD
are failing to meet SLAs - this'is particularly critical to ParcelForce as the kit is installed on their
customers’ premises. Caroline is attending a service review with Parcelforce on 10" August
2000, with MC and OSD and ParcelForce.
Penalties start to be applied to OSD/MC from 1“ August 2000.
E- Infrastructure
Windows 2000 initiative kicked off in Man0S with some key Windows2000 resources. ICLMC
and A&TC are now working together to.sell W2K services into Post Office.
eGovernment
PO, in response to the PIU report, are developing various plans for govt services under project names
CMCO, ECLIPSE as well as PIU and are evaluating GovWorks. ICL Govt Division are now involved, with
Yatin Mahandru meeting P Rich and D Waltho 4" August. PO intend to ask several suppliers if they wish
to partner in some/all of these initiatives and in effect we have been given early briefing. The key (hard)
part will be to establish exactly what ICL is expected to do, and to evaluate the associated:risk/reward.
John Roberts is personally leading the PIU response (not just while S Sweetman is on leave) and there have
been a number of tough meetings with Treasury. It is clear that PO are expected to produce strong
commercial business.cases before they will see the PIU pilot money; of which £15m is earmarked for govt
pilots. Debate continues as to what constitutes a "pilot", where it.should take place, who pays for what etc.
Treasury are insisting on a PO response by 1* September.
CMBU
CMBU's earlier plans for reaching parnering agreements for joint bids with [CL for Customer
Management business in govt, utilities, financial services and retail have been scaled back-to Government
market only. This is realistic recognition of the difficulties PO face in pitching for external CRM business
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Date: _ 09/08/2000
given the state of their in-house CRM capability; and the importance of Gove as a client.
eBusiness -
An ITT for a "management of change and eServices partner" is being issued. John Bell has
helped e-Inniov to submit the qualifying first response.
Jim Reed, Director of IT Procurement has expresséd a strong desire to understand "how PO
can exploit the Horizon asset" - date fixed for 30" August. Jim also attended a FJ seminar at
which Andrew Boswell's session on e-futures was well received.
Network Banking
The ICL response to the ITT, based on Lifestyle, was submitted on time and a host of follow-
up.questions are being dealt with. Bids were received from IBM, ICL, UNISYS and Brokat-
Sanchez.
Smartcard
Discussions continue with PO Network Banking Div regarding the potential for London
Transport Travel Cards issued by PO - we took Alan Oliver MD of Transys to meet Paul
Rayner 4" August. Some mutual potential is being explored.
In the course of his consultancy work for Dave Waltho, Mike Jenkins has been asked to switch
focus to a 3-million cardholder scheme which could support a Government General
Practitioner pilot in (possibly) Northern Ireland.
VIACODE
Have now held two meetings with Peter Taylor GM of ViaCode, with Andrew Boswell and
assorted ICL security people. Andrew's aim is twofold: i) to establish if Via€ode:could be
brought into internal ICL use as our own encryption and digital signature-service; and ii)
whether it would be a good Go to Market offer for ICL to take to our customers. There is
strong interest in PO but much work’remains to be done.
Account Team
Owing to a clash of dates with Post Office the Account Planning session planned for Sep 27/28 is being re-
scheduled.
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