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ICL Pathway
Bringing
Technology Monthly
to Post Office Progress
Report
Counters & epo :
Benefit Payments iCL
POH-392D
December isos IMM
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ICL Pathway Programme Monthly Report Ref: PA/REP/O33
Version: 1.0
Date: 02/02/98
Document Title: Pathway Monthly Report- December 1998
Associated Documents:
Reference Vers Date Title Source
{1} PM/PRO/002 1.0 26/09/96 Pathway Programme - Project
Planning, Reporting and Control
Approval Authorities:
Name Position Signature Date
J. H. Bennett Managing Director
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ICL Pathway Monthly Report
Contents:
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Managing Director’s Summary
Systems Report
Commercial & Financial Report
Customer Requirements Report
Customer Service Report
Quality & Risk Report
Business Development Report
International Sales Report
Organisation & Personnel Report
Post Office Client Report
rt
il
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Managing
Director’s
Summary
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ICL Pathway Managing Director’s Monthly Report Ref: PA/REP/033
Version: 1.0
Date: 02/02/98
Managing Director’s:Summaty
PROGRAMME PROGRESS
e . Version 7 of the Pathway Programme Plan has been agreed with both our
customers.
e The technical testing work for January 1999, which will prepare the main
release of software for Live Trial continues:to progress to plan.
«The key event.is the start of National Roll-out, since this is thé time when
we begin to implement the critical infrastructure in the: Post Office Network
and on the completion of this, then the revenue flows to ICL Pathway begin
in earnest. We and Post Office-Counters Ltd are in.agreemént that August
1999 is the appropriate date-to-start National Roll-out with sufficient
contingencies to cover the likely problems we will encounter. We believe
that National Roll-out can begin in early August, whereas POCL view that it
is more likely to be the last week in August. We continue to press for a more
aggressive plan to avoid ‘any unnecessary delay to this activity.
e Release 1c runs extremely well, has now been live for well over a year and is
meeting.all its design ‘and performance objectives as agréed.
PROGRAMME ISSUES
e There are 4 number of the critical, technical and programme issues which
we are actively addressing at this point and the ones we know are essential
for successful management in order to achieve the major milestones for
1999.
‘e We continue to focus aggressively on the quality of the software and use-all
-our efforts to drive out.the, remaining software bugs. Along:side-this, we do
need to get the agreement of the customers to what we refer to as our
Known Problem Register, which. records often low level.and low impact
software and design issues which we intend to-clear at a future date but not
in 1999.
e There are a number of activities we must complete in order to be able to
* commence Live Trial in May this year. All of these are technically
challenging, and probably the one we have.given most attention'to, and
have the greatest concern with, is the Acceptance Process. This requires the
commitment and support of our customers in order to allow successful
completion of the Live Trial activity.
e The contract contained a large number of “Agreements to Agree”. Most
have been agreed informally, but it is essential that these agreements be
captured and baselined as part of the new contract.
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ICL Pathway Managing Director's Monthly Report Ref: PA/REP/033
Version: 1.0
Date: 02/02/98
e — The physical difficulty with the 19,000 Post Offices has been with us for a
long time and although we have substantially upgraded the process to
handle this task, it still provides us with a challenge. Included in this is the
task to not only start, but maintain an implementation rate of 300 Post
Offices a week for nearly 18months, covering two winter periods. The team
is well trained and well practised to tackle this but until we start it has to
remain one of our major risks. Of great importance is the fundament
ownership and commitment on behalf of the two sponsors to seriously
apply their efforts for the successful delivery of this Programme. Without
customer support this programme will remain difficult and a clear cut
ministerial decision will energise our two customers and remove any current
hesitations they may have.
NEGOTIATIONS WITH THE AUTHORITIES
° We have now been in continuous detailed negotiations with POCL and
Benefits Agency through the Treasury Review process for nearly five months
now. The position we have reached in late December last year has been
agreed in principle with POCL and now forms part of the ministerial
discussions as to the way forward.
e There are a number of major components of the proposition currently with
Government. Firstly and most importantly the operating life of this contract
is doubled from a five year timeframe to 10 years. We have argued this
consistently for over two years on the grounds that a programme of this
complexity and high development risk must provide a sensible operating life
to give the contractor any opportunity to recover a reasonable position.
Notwithstanding the difficulties Government has expressed around
procurement law, this extension period now looks secure.
© We have also progressed the argument that the increased complexity and
requirements of the programme have to give way to increased prices and
these, which largely fall on POCL have been accepted. In particular POCL
have agreed to fund the technology refresh necessary in the Post Office
Network in 2005/6.
e In addition to this POCL have built into the business plan and to their
guarantees a whole new strand of transactions covering their ambition to
enter the banking arena with their proposals for Network Banking Systems.
These transactions are essential in the later timeframe of the programme to
substitute for the BA transactions which we know will decline from 2006
onwards and will be close to zero by the end of the contract period.
e We have also established arrangements between ourselves and POCL to
share costs and risk in areas such as Post Office Site preparation.
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iCL Pathway Managing Director's Monthly Report Ref: PA/REP/033
Version: 1.0
Date: 02/02/98
e = We have also included within our business ‘plan contingency, funds to cover
the critical known-risks. The single largest of these is‘any risk or delay to the
beginning of National Roll-out and possible problems in maintaining the
beat rate of implementation. These contingency plans are an essential
component of Risk Management which we.must have in a programme
which has elements of risk between medium arid in some cases high severity.
° Progress with negotiations with BA have not been.as good.as those with
POCL. BA have been asked. only to maintain the Corbett offer of October
1998, They have.been protected from the pricing adjustments we have
made subsequently. which have fallen almost universally on POCL.
Nevertheless one critical arca of negotiations with BA.remains open and this
includes their role:in Acceptance. They have'to date decliried to accept and
agree.to the artangements which are now agreed. with POCL. This is a vital
area. for resolution after the ministerial agreenient on the programme.
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ICL Pathway Systems Monthly Report Ref: PA/REP/033
Version: 1.0
Date: 02/02/98
Systems Report
MONTHLY SUMMARY
December gave us the opportunity to.re-establish the customers confidence
in the Systém and to overcome some misconceptions in terms of operational
readiness, via a number of pre-proving activities. These were designed to
demonstrate that the majority of the software incidents identified in
previous end to end tests had been resolved satisfactorily. These and other
tests planned in January would ensure a smoother Model Office Test and
help us.all'to navigate the release authorisation (RAB) process successfully.
All of the final test cycles for'system test and business integration test have
now been completed, comprising’some 36,000 test conditions.
The EPOSS Usability study planned to take place at Twickenham is to
resume‘now that the electrical compliance work has been rectified.
A considerable amount of parallel activities is now being undertaken by the
team. In.addition to the critical tasks associated with NR2 testing, release
authorisation, contractual acceptance and roll-out preparation, the team is
planning the introduction of a series of performance’ releases in the autumn
involving the data warehouse, the host platforms and network configuration
and is also well advanced with the design and development of NR2+.
These represent another group of challenging milestones and deliverables
forthe team:and. will inevitably generate a:new set of demanding
management issues.
We have had limited success’ with the. permanent recruitment campaign both
internally within ICL and'externally. The IT market place.is buoyant and it
is becoming increasingly difficult to attract good people. In addition, the
company is struggling to identify individuals currently on the ICL payroll
~ who possess the required skills and willingness to work in Feltham.
PROGRESS
The design and.development teams continue to support the pre-proving and
model office testing activities. This involved a CAPS 4 day target test which
was extended. to include the TIP interface. An initial 2 day counter test
followed by a 4 day POCL end to end test utilising the external interfaces.
All of these. satisfied the exit criteria and further proving activities are
planned to be run in January 1999. Stage 1 commences 6™ January and
stage 2: week commencing 18" January. The formal E2E and MOT streams
are schedule to start’8" and 15" February respectively.
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.
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ICL Pathway Systems Monthly Report V Ref: PAREPIOBS
ersion: 1,
Date: 02/02/98
e The final pass test cycles for BPS core, temporary tokens & online, BES
recovery & reconciliation, EPOSS, TPS, OBCS, APS, AP Reconciliation,
RDMC/RDDS, Training Mode, RODB, MIS (including SLAM, Common
Charging System & Fraud Case Management System), Migration and
Business Integration are now all complete. The closure reports for all the
streams are in:production. The testing teams-are now concentrating on
regression testing-and. fault clearance.
e — The-design activities for NR2+ are broadly on schedule: There is some
evidence of requirements creep and this is being addressed.
e Aconsolidated development plan for NR2+ will be available for review at
the end of January-1999. The initial resource estimates: for KMS suggest
that this component is:much larger than anticipated, consequently more
detailed plans have been requested.
« Preparation for the Multi-Benefit testing streams has commenced with the
CAPS script proving exercise scheduled to start in,early January.
CURRENT CRITICAL PROBLEMS
° Software fixes not considered critical. for MOT and technical infrastructure
changes not exercised in MOT are implemented in the Live Trial
Build/Baseline. This version is currently being regression tested in parallel
with Customer pre-proving and MOT. There is a risk however, that the
customers will insist that this version is also subject to a MOT resulting in
consequential slippage to the roll-out schedule,
e Due the number of problems encountered with the.Audit functionality in
the BIT Firial Pass cycle, it was removed and rescheduled for the BIT
regression test. Acceptance will be achieved via BIT and MOT. If we
encounter serious issues-we may now have insufficient:time to resolve them.
ISSUES
e Software problems which cannot be rectified in the time available continue
to be submitted to the. sponsors for business impact evaluation. There‘is a
tisk.that the.sponsors will insist that certain errors are rectified before
National Roll-Out, although this has not been the.case to date.
e The elapsed tirie-required to download the appropriate data from the data
centre to the PC during initial outlet installation is too long and will exceed
the SLA. Options to overcome this problem are being evaluated.
e We have still to prove the new message store replication mechanism when
PC’s are replaced in outlets. The current approach takes too long and is
unworkable.
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ICL Pathway Systems Monthly Report Ref: PA/REP/O33
Version: 1.0
Date: 02/02/98
e There.are still-issues surrounding the appropriateness of the MIS. Standing
Data used in the test streams. POCL have been appraised of their
responsibilities in this area (i.e. Common Charging Data) and the
implications.of not responding in a timely manner.
© The initial manpower resource estimates for the development of the Key
Managemént System (KMS) are much larger than anticipated. Further work
is being carried out and a management review is planned for January 1999.
e —_ A ‘get well’ programime has been agreed for the:Service Level Agreement
Monitoring:System (SLAM). This includes performance improvements for
the host and.client components, usability and presentational enhancements
and a small number of functional amendments. It is hoped that these can be
tested and implemented before.NRO.
e We.have now identified anumber of infrastructure performance upgrades
which are necessary to support all 20,000 outlets. They include the
introduction of VPN into the network and an upgrade of the Riposte
Message Server. Plans are currently being drawn up to describe how and
when these changes can be implemented.
« — Now that the total Pathway system is built and will shortly be in full
operation, it.has become apparent that there is a need for.a Riposte
regression facility, i.e. a special environment which enables new versions of
Riposte to be properly regression tested.
° ICL Pathway believe that-it should now assume responsibility for the BES :
‘application developed forthe counter by Escher. The commercial .
negotiations must be settled quickly if we rather than Escher are to develop
the enhancements for NR2+.
e The existing EPOSS product has-undergone-a‘number of significant‘design
changes during the past 2 years and has had a very large number of fixes
applied to it, resulting in early maintenance decay. A detailed engineering
review was commissioned.in October 1998 and the findings due-in January
1999. The way forward will not be easy to determine due to'the
implications/risk of large change vérsus future development constraints and
maintenance difficulties.
e Now that it has been agreed that the host platforms must.be upgraded from
Sequent SE70 to NUMA-Q during the early stages of roll-out, detailed plans
are being produced to ensure a successful and low risk implementation.
However, it is being carried out if parallel with many other important tasks.
° The:permanént recruitment campaign has had limited success and the
formation of A&TC has.not brought the’benefits anticipated. Further
discussions are planned in an attempt to improve the situation.
¢ — The:Systems: Directorate organisation needs to evolve to handle the
additional workload anticipated in the immediate future, particularly the
applications emerging from the Citizen Direct/Golden Cloud initiative.
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ICL Pathway Systems Monthly Report vert “PARED/O33
Date: 02/02/98
COSTS
e The budgets for the systems directorate continue'to be refined and regularly
reviewed but are now being used to-monitor expenditure on a monthly
basis.
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Commercial
& Financial
Report
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ICL Pathway Commercial & Financial Monthly Report \ Ref: PA/REP/033
ersion: 1.0
Date: 02/02/98
Commercial & Financial Report
MONTHLY SUMMARY
° The draft MOU with POCL agreed on 18 December will, if confirmed
with DSS and Treasury, provide the starting point for detailed restructuring
of the main. contracts.
° The Business Case was used extensively to inform negotiations in December.
e A Pathway comimitment was agreed with Fujitsu prior to the 9" December
offer to HMG, andthe bottom line‘is ‘frozen at that level.
. Work continiied with $.G.Hambros and Grant Thorriton to validate the
Business Model and assumptions, and this is close to being concluded
satisfactorily.
¢ — All CNT and Joint Programmes and Commercial forum meetings have been
cancelled by BA/POCL pending the outcome of contract renegotiation.
e The A2A activity remains critical and a great deal of work has now been
identified to drive it forward to a conclusion. This work falls on many parts
of Pathway.
¢ Supplier negotiations have gone on in parallel with WTL, Sequent,
Girobank, flat screen suppliers, Sorbus, Fujitsu and.others.
. Finance and Programinies are jointly reviewing the end-to-end WBS/ cost
control/ forecast processes including time recording-and tighter linkage to
the Business Case.
° 1998 actuals showed an underspend against forecast reflecting below target
activity on below target headcount - good news for cash but not for work
completed.
PROGRESS
° Draft MOU with POCL
e Continued smooth running of the R1c service
e — Although some contingency has been used, pre-MOT work has been going
well and the Programme is still on track to achieve start of roll out in
August - just.
BUSINESS CASE
° The Business: Case was'used extensively during December'to. inform the
negotiations and to quantify options. The bottom. line.against which we are
now working was frozen at 9" December Pathway offer status, as agreed
with Fujitsu.
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ICL Pathway Commercia! & Financial Monthly Report Ref: PA/REP/033
Version: 1.0
Date: 02/02/98
1998 actuals have been factored into the Business Case.in place of prior
forecast. Run rates for 1999 and beyond are being reviewed in the light of
experience. The result should be no net change-although there will be some
line item variations and the level of risk in the plan could increase or.
reduce. ©
Work continued: with $.G:Hambros and Grant Thornton to validate the
Business Model and assumptions, and this is close.to being-concluded. The
work.includes the modelling of Government Gateway and POCL Smart
Card.
The Risk Register was recast according to which risks had been catered for
within the. Business Case and which remained outside. High risk items have
generally been covered within the Business Case, and this represents a level
of contingency not previously included. However, planned revenues now
include re-engineered POCL services, universal banking, household
budgeting and magistrates courts-fines and:as such.are at the top end of
what we can reasonably expect: Reductions to headcount and other costs
during steady state are already assumed although there are no firm plans to
achieve them. It follows that without real action on the part of the
Management Team there is currently a significant balance of risk in the base
case. Bringing the programme back to profitability depends on identifying
significantly lower cost ways to deliver and operate the business (Cost
Down) and/or the inclusion of Better Government, POCL smart cards ‘and
other additional revenue streams’ (Revenue Up).
The work continued with $.G.Hambros and Grant Thornton to validate the
Business Model and assumptions, and this is close to being concluded
satisfactorily. It includes the modelling of Government Gateway and POCL
Smart Card.
Discussions were held with our auditors PwC as ‘to project profitably and
thé implications for accounting based on the: latest negotiations. These
remain to be concluded.
We took the Fujitsu team through the cost. model, including analysis by sub-
contractor and headcount, and the track from previous versions of the
Business Case. 1
COMMERCIAL - CUSTOMER FACING
Al CNT and Joint Programmes and Commercial forum meetings havé been
cancelled by BA/POCL pending the outcome of contract renegotiations.
Joint-work has gone on in the background to progress key CCNs and
establish a solid contract-baseline suitable foramendment when the time
comes to incorporate the outcome of the high level negotiations. The agreed
target, as a minimum, is Baseline Version 8. plus CCN117.
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ICL Pathway Commercial & Financial Monthly Report Ref: PA/REP/033
Version: 1.0
Date: 02/02/98
° The A2A work continues. There is a great deal for Pathway still to do, much
Of it essential for a viable. Acceptance process and smooth Release
Authorisation into roll out. A’series of workshops is being held to move the
A2As forward, specifying the actions and responsibilities:required to clear
each one. Changes to Solutions are required in many cases. Some are
. administrative, some substantive. Some require changes to Requirements,
but because the Requirements are so loose, these are in:the minority.
e The likely outcome is a new CCN tally of circa 150, the majority of which
will need to be signed off as contract baséline if'our. product and service
specification is to be protected. We aré currently not adequately resourced
to carry out this work in the limited time available. Special-actions are being
considered to meet the demand. We should expect howls of protest from
BA/POCL when we insist that these CCNs be-signed as condition precedent
to the new agreement (even though this was heralded in the commercial
proposal of 9% November). Delay in closing that agreement will be difficult
to avoid if we stick to our guns (which in my view we must - this is our
third and last chance to secure an agréed specification).
e Enormous,.sustained pressure will be needed to ‘achieve a restructured
contract in less‘ than three months. Even.this assumes that the eventual
HMG instructions to. DSS and.POCL are clear, that the draft MOU and s
Partnership Plus agreements with POCL hold and that DSS act positively. &
COMMERCIAL - SUPPLIER FACING
° Supplier negotiations have gone on with WTL, Sequent, Girobank, flat’
screen suppliers, Sorbus, Fujitsu (PCs) and others to deal with changing
requirements and the.programme slippage.
* Programme slippage will result in further payments for fixed costs in 1999,
in lieu of activity, in the region of £51 plus. The majority of this value is
accounted for by Girobank and De La Rue.
. Good progress has been made on enhancing the equipment, at reduced cost
in the case of PCs and little net additional cost.in the casé of flat screens (on
a-cost of ownership basis).
FINANCIAL CONTROLS
° Finance and Programmes are jointly reviewing the end-to-end WBS/ cost
control/ forecast processes, including the introduction of time recording.
‘Changes will be announced very shortly with the objectives of i improving
the quality of resource planning, forecasting and control, and providing a
more robust basis for product profitability and customer charging (CCNs).
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ICL Pathway Commercial & Financial Monthly Report V Ref: PARER/O33
ersion: 1.1
Date: 02/02/98
e Weare looking at how procedurally to tighten the link between these short
terms processes and the Business Model which deals with the entire life of
the project. The.intention is that each component of the Business Plan will
be allocated to a department Director for him to ‘own’ as an extension to
the current short term budget window he currently deals with. The. Business
Model will become the primary tool for driving “Cost Down’ (and ‘Revenue
Up’) as well as the basis for project accounting.
e = More on this soon.
CURRENT CRITICAL PROBLEMS
e Dealing with the‘shear volume of A2As.
ISSUES
e — The continuing cash drain without any agreement with HMG.
e The poor state of the current Business Case.
«The current balance of risk in the Business Case - pending identified,
committed and achievable actions to achieve cost. reductions:and revenue
increases:
° Funding requirements.
e Customer attitudes to the Programme.
COSTS
e ‘The Controller’s report follows.
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ICL Pathway Commercial & Financial Monthly Report Ref: PA/REP/033
Version: 1.0
Date: 02/02/98
DECEMBER ACTUALS 1998
KEY NUMBERS (£000’S)
‘Month of December 1958 ‘Year to Date / End December 1988
Varanca ve Varances 3.
Actual I Forecast Actual [Forecast I "aude
Trading/Project Costs’ Revenue 174 $0 1017 m2 393
Project Costs before Capitalisations: 9413 1,157, 103,753 967 (20.154)]
Deciared PBT Losses a 121 1,296 144 (296)
CasWBalance Shaet. Business Operating Cash Flow (8.444) 2.675, (108,617) 33589 (16,132)
Project WIP 195,210 82 (19,298)
Net Fixed Assets 40.895 850 1597
‘Tolal Borrowings: 198,773 3,358 (11,275)
End of December 5B
Variances v=
Headcount: Aeual__[ “Forecast _[ —“Oodge™
Permanent 195, 20 (60)]
Non-Pormanent (ITs and Temporaries) " 3 @)
(Memo): Freelancers procured through ICL IT Contractor Services 179 5 (91)
Comments:
A falty positive end to the calendar year, with overall cost levels well below forecast and a much smaller than forecast deficit en Intemational operations.
Although short-term variances agains! forecast wenl Ine right way, the signifcant ful year adverse variances agalnst our budgeted expectations in all areas
rust not be overtooked. 3
Improved working capital Ievels and lower fixed asset investment gave a favourable borrowings variance againsI forecast of £3.56m,
Total Neadcount levels for permanents and trelancers were both lower than forecast, alinough the above-forecas use of treetancersin lieu a harde-find
permanenis in Systems delivery arias continues.
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ICL Pathway Commercial & Financial Monthly Report Ref: PA/REP/033
Version: 1.0
Date: 02/02/98
PROJECT COST ANALYSIS (£000’S)
Toninot Oxcerter 8 Year o December 1988
‘Variance ve Variances vi
acu__I Forecast Actual I —Foretast I “e0aet
Revenue 174 50 1017 2 393
Diect Cos! of Sates 1499 a1 isate iit 192)
Gross Margin (Defic Tisza 2a 719.380] 1a (2785
Opex:- Labour - Own Stat 1 136 ast Ey i725}
Travel & Subsistence 80 5) 1626 (5) (5)
Freelaricers 1,991 93 19,245 102 (5.243)
ICL'Subcontracts 1,496 216 16,083 206 (3,687)
Other Subconiracts: 484 268 8653 ag (889)]
Depreciation 1,290 4 13,473 44 (3471)
arneting 45 6 547 2 ‘909
Professional 251 98 2239 162 (5279)
‘Other opex 289 7 4.182 @) 708}]
Gross Project Opex 6.783 73,560 806 (16,695)]
interest costs. 1,305, 11,794 16 (659)
Costs before Capitalisations 3413 103.753 BET (20.154)]
Dedared PBT Lasses 21 421 1,206 141 (298)]
Capitalised into WIP during year 9.392 1,036, 102.457 826 (19.858)}
Comments:
Revenue gos wre deed fa aunt n overeas pst fice pects n Hungry, Namib and Porig
ty at coe areas regi stigh ain recast. Th 0.2m gan cat of sts was erat Lig tom the fri. Sorbus neat eld
‘seivice and lechrical helodesks being lower than accrued amounls. Further accrual adjustments on charges from Enerais were also favourable, Payroll costs were
lower than forecast because of a combinalloa af cecrullment lag and revised local bonus accruals.
‘Subcontract savings were recorded with both ICL and extemal subcontractor... Internal cost gains arose rom lower than fore
Credii from Outsourcing reluéng to 1sU/4th Hne support. Extemal subcontract varlances of £0.27m
detered implementation related costs (Hartzon Field Support Orficers).
sse of ISTL resources and a
‘Eicher development costs and,
‘The other significant favourable variance was one of £0. 1m on legal fees, due to laler than forecast actives on extra Bet Mnarcing requieients,. ——
DECEMBER ACTUALS 1998
HEADCOUNT
Eo BST TO
ormanont Headcount Taian
Actual Forecast “Budge!”
systems 7 10 zal
Implementation 46 7 (12))
Customer Service 56 1 417))
for departments a 2 SI samme
‘Touts. Parmanent Stat we ra TE] December ts never an eoty eerie month, ond
this Is tufy reflected in te across the board lower
Era a Deere TE than forecast permanent headcount numbers.
Non Permanent Headeount Tetncoe
fctot_[TRRERT [Bumper —] The continuing scarey appropiate condéatos for
plc inlertchrery fut chennai
Industria Trainees and Teinporary Stat 7 z 7B] Design end Development forces he hagher han
tovcost uo of reelance sain ode o mee! ght
Freelancers sourced through penn
ICL IT Contractor Services
‘Systems. 138 45) {78)]
ui 3 ‘
Customer Service 6 ‘ H
fons deparments 2 ; 7]
Total - Higher Skits Fraciancers 7 z re)
Totals -Non Permanent Saft 756 7 Ta}
Grand Totals a) A) 3)
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Version: 1.0
Date: 02/02/98
CASH. FLOW (£000’S)
‘Month of December 1998 ‘Year (o December 1968
Variance w-] Varances
tnflows/(Outhiows) acual_I Forecast Actuat__I“Foretost I "Buaget
Net Projéct Casts - eaptlised into WIP 9.382) 1936 (102,457) 626 (19.888)
Project costs taken sirpight to P & L (21) 120 (1,296)} 141] (296)
Depreciation 1,290 is) "13473 (44) aart
‘Moverment In other Wérking Capital Items. 2572 1,918 (461) 1.542 2.903
Fixed Asset Additions (2,893) (388) (18,076) 84 (2.352)]
Business Operating Cash Outflow (8,444)] 2875 (108.617) 3.359 {16.432}}
Opening Net Borrowings TwOse or roo 7 Ta5T
Casing Net Bemowings 198,773, 3358 $9873, 9356] 11276)
BALANCE SHEETS (£000’S) :
‘Comments:
Decerrner 1988. Patiway Total
December I Forecast com Allhough fixed asset aadions were higher than
Actual msde in Nov. r@udger” I forecaslin the marth, this was main caching up
‘of the previous period's deferrats. Several
Net Fixed Assets 40,896 41,746, 42,493 December items arrived Just afler the calendar
Project Work in Progress 195210] 196020] 175.912 I year-end, leading fo a lower fixed asset levels at
Other Working Capa (19218) (17,679) (12.210) month-end ~ -
Totals TiEEE I 376705 I ——~“ZOBTASI in site owe omer levels of project expencure,
~ ‘Sonne exira days were squeezed oit of our rade
Share Capital 20,000 20;000 20,000] creditors ta give a favourable variance 6 £1.54m
Retained Esmings (reas (2.025) (1403)] on December working coptal balances, This was
the major conttbuloro the £2.68m favourable
Grovp Pooled Borrowings 25.053 9601 188,692] cash fow vartance the month raging te toi 7
Extemal Loans 473.120 193,100. 98,606 I favourable vanance against ihe November
Total Borowings 198-773 202.131 I 197.496] forecast over the 2 months to £3.36m,
Totels ZieaeE] —DAOTOE I ——FOETIS] This cushioned some hey tintorecast oufows
‘made in tie early days of 1999.
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Customer
Requirements
Report
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ersion: 1,
Date: _ 02/02/98
Customer Requirements Report
MONTHLY SUMMARY
e The progress on closing down the Acceptance Specifications continued
during December and the New Year break. The numiber agreed rose to from
13 to 20 leaving just three overdue (POCL Infrastructure, Referénce Data
and Benefit Encashment Service (BES)), and one due in Febriary (Service
Boundaries). The Trials Closure Report phase has started and the first
Review Closure Report has been issued.
DETAILED PLAN ACTIVITIES
NEW RELEASE 2
© The PinICL (testing incident) situation is under control, with only ten-with
Customer Requirements or the PinICL Impact Assessment Team (PIAT) -
mostly lower priority.
e The Known Problem Register (KPR) (declared problems which should not
prevent Acceptance provided there-are few medium:severity entries) stands
at exactly 100 PinICLs.
. The BES, Card Issue (PCDF) and Help Desk (PCHL) Contractual
Procedures (PPDs) are under. formal review. The BES one is of particular
importance to Acceptance and several issues have been flagged.
° The High Level Test Plan (HLTP) for Security Penetration Testing (not‘an
Acceptance activity) is available and costings are favourable.
° Benefit Payment Service (BPS) Reference Data at Release 2, was revised for
DSS and will go forward as a Contract Controlled Document (CCD).
RELEASE NEW 2+
¢ We have lodged a number of issues for resolution at the.next DSS Processes
(CAPS) review, including problems being encountered on the live 1c system.
DSS continues to send both file changes to both the Payment and Card
interfaces even where a change only affects one, thus causing a. nugatory
incident to be logged on the other.
© — The equivalent POCL forum, the Joint End-2-End Board, is struggling with
its identity: the POCL bias is for Pathway technical architecture and design,
rather than its own business process functionality.
e Thedesigns for BPS at New Release 2+ were’ reviewed. A sessioni-to-go firm
on the final content.is to be held.
e — Aécess Control Policy was baselined as planned.
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CARS
e There was again no Contracting Authorities’ Responsibilities activity.
A2AS
e Agreements to Agree-for Order Book Host system (ESNCS) and BES
encashment-data were achieved.
CCNS/ CRS / CPS
e Customer Requirements is responsible for 38 open Change Items of which
30 are complete:as submitted Change Control Notes or rejected Change
Requests, and four are raised as Change Proposals. Of the. remainder:
e CR BSb (single signature receipts) requires Design costings, two (CR
R32,33) for EPOSS and TIP raised 23/12 are being assessed and one (CP
1392) to introduce new AP schemes requires Customer Service timetable
agreement-and a reworked CCN.
° In addition, for CCN 117, more comments and text revisions for
Requirenients.and Solution changes were discussed; the details are
understood to be now close to agreement.
ACCEPTANCE RESOURCING
e¢ Jan Holmes has been, brought in ds the Audit:Acceptance Test Manager and
has produced an initial Reviews plan.
e Dave Groom has similarly been brought in to cover the Policies &
Standards area - an all-Review task.
ACCEPTANCE SPECIFICATIONS
e There are ten specifications approved and ten more with approval in
progress, leaving four outstanding:
e BES: The specification is approved at working levels but POCL has
been legally advised not to approve it. A formal letter from POCL has
been sought in writing and is awaited. DSS is willing to approve it.
This issue is believed to be that POCL do not have legal powers to
incur a liability should Pathway’s liabilities under the contract be
exhausted. Normally, difficult issues like this are handled by
separating them from operational work for legal/commercial
agtéement, but in this case no such “caveat” has been proposed.
. Reference Data: A further few.comments were responded to and a
further revision provided to.POCL 8/1.
. POCL Infrastructure: POCL are reviewing version 1.7, 22/12 together
with two requested caveats (Office Platform/Transaction Management
(OPS/TMS) boundary and Technical Documentation).
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© Service Boundaries: With DSS/POCL for review, not due for approval
until 2/99. Acceptance will be discharged by a review of the SADD
Appendix B (with some. minor additions needed) and a new document
on Boundary Performance Methodology.
. Security: The document produced for Requirement 897/2 (Security Threat
Analysis) was'well received by Horizon, underpinning the original
agreement to the specification. The list of caveats has been reviewed by
Pathway. Approval of the caveats is a dependency on completing
outstanding approvals.
* The Acceptance database has been updated for BES and.Service Boundaries
specification changes.
© The Acceptance caveats were reviewed.
ACCEPTANCE TRIALS
. OBCS (Order Books): The Closure Report was revised and re-issued. One
PinICL (and thus one Acceptance Criterion) is awaiting retest.
° BPS (Benefit Payments): The Final, Test Pass’ went reasonably well with 93%
of Acceptance:scenarios running error free. The Acceptance Closure Report
will classify the PinICLs noting those which result in any form of
Acceptance-Incident. Several categories have been identified:
e Previously known faults, which were repeated under:Final Pass
e New faults (grouped as fix underway or fix deferred/KPR)
e — Observations, where the underlying system operation is deemed
correct, but some clarification needs to.bé agreed: with Horizon
Acceptance Managers
° Areas of major incidents were:
° Card renewal (not critical operationally until NR2+)
° Foreign encashmerits under certain circumstances
. Error. handling on manual card entry screen, particularly in casual
agent transactions (a limited fix has been agreed for this due to
complexity of full;solution and.risk of destabilising‘ NR2)
° Data Warehouse & Management Information (MIS)
© Audit
e Inaddition:several problems:relating to. payment migration between the
current Release 1c and New Release 2 were identified and these will
grouped together for KPR purposes.
° EPOSS: The Final Pass was completed and the retests are being progressed.
The test results are being analysed ftom the Acceptance standpoint.
° APS (Automated Payment): No activity.
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Date: 02/02/98
e Service Levels (Performance): All but one of the 25 “Tranche 1”
performance tests were run‘and most test reports are in draft. These reports
will be used by Systems to document Scalability and Performance for the
Release Authorisation Board as well as Acceptance. The Performance
Testing baseline will specify two-further tranches and will need.to provide
the 20 counter tests required for Accéptance. Of the 82 Performance
PinICLs raised all but 16 are now closed.
e Security: The issues affecting test completion are. platform. availability - Roll-
Out Database will definitely need to be deferred - and certain build items
such.as MiECCO (a migration utility). Third party testing has made good
progress and Horizon is satisfied with the projected schedule for
completion. There are 99 open Security PinICLs, two of which are agreed as
HIGH, and seven more, mainly in the FTMS area, are rated HIGH by the
customer. (but not us) and nine jointly agreed MEDIUM. Of the 99, 38 are
ready ‘for build. The-test phase formally closes on 18 January.
e Systems Management (supports POCL Infrastructure): The excellent test
report indicates that all testing in this area was complete and there are no
Business Impact 1 or 2 PinICLs outstanding:
° Technical Integrity and Networking (part of Security): The report shows
that 111 of the total of 191 PinICLs have been closed, with Audit the main
work area,
e. The OBCS sample Trials Closure Report comments were-responded to.
ACCEPTANCE REVIEWS
e The Review Closure Report for Customer Education was issued.
. BPS: Work has started on getting the documents together.
° Security: The documentation needed is in good shape; with just a:few still in
early draft. .
NEW BUSINESS SUPPORT
e SPM: (Simple Payment Module (British Gas Smart Card support)) The
target is to get a firm Requirement Specification by the end of January to
underpin.design. The remaining, issues, Regional Tariffs and a customer
Standing Charge, are both potentially subject.to decisions of the
Government’s regulator (OfGAS).
¢ — Token Verification - Customer Service is agreeing the operating timetable
for introducing new batches.of AP tokens for inclusion within the revised
CCN.
OTHER TEAM ACTIVITIES
e —_Dave.H has been nominated unopposed to chair the Workflow
Management Coalition Technical Committee for a further year.
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CURRENT CRITICAL PROBLEMS
. None.
ISSUES
. Technical & Security Testing (Bracknell): There is-a considérable amount of
PinICL clearance to achieve during January.
e There is also a considerable amount of Feltham-based deferred testing and
retest to achieve-during January and February.
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yloday
IAI Fa
—ees
; ————=_
ASULIOJSND Sa
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Version: 1.0
Date: 02/02/98
Customer Service Report
MONTHLY SUMMARY
Counter service was good with few problems and.no new major ones. The
most serious outstanding issue remains that of BA issuing order books with
bar codes that ‘cannot be read. This is causing extra workload for the
Helpdesks and could become a significant customer satisfaction issue if not
resolved quickly.
The Data Centre experienced.a major problem when the EMC:SCSI adapter
failed. PAS/CMS was down for 6 hours. This also impacted:the PCHL
service.
A second problem occurred with the Energis switch at Kearsley where,
despite efforts to improve process quality, Energis allowed one of-their
suppliers to apply an untested patch to the live system.
RELEASE 1C VITAL STATISTICS
Installed base : 204 Post Offices, 334 counters .
° Number of Cards issued 46,664
° Number of Active Cards in use 36,816
e Total number of BES Counter Transactions 841,020
° BES Counter Transactions in month 89,013
¢ Total value of Benefit Payments received £26.7m
° Value.of Beriefit Payments received in month £3.0m
© — Total value-of Benefit Encashmenits made £25.5m.
* Value of Benefit Encashments in month £2.7m
° Total number of OBCS Transactions 6.4m
e — Fotal number of books impounded : 17,721
PROGRESS
OPERATIONS
The Data Centre experienced a major problem. when the EMC SCSI.adapter
failed. PAS/CMS was down for 6 hours. This also impacted the PCHL
service. The major-issues concern the poor response times of ‘the EMC
engineer and the-time taken to recover the Database. Oracle World-wide
Support was called in and they were puzzled why the database failed to
restart automatically. A full investigation is underway.
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e . Asecond problem occurréd with the Energis switch at:Kearsley where,
despite efforts to improve process quality, Energis again allowed one of
their suppliers to apply an untested patch-to the live system. This has been
explained by Energis as human error. A full report has been requested.
BUSINESS SUPPORT
° The overall incident rate increased slightly to 0.04% in December with 40
incidents being received against 89k payments. Of these,.21 were ‘Non
committed’ transactions all due to the clerk voiding the transaction after
paying the customer. ~
e The number of incomplete transactions increased to 13 (0.015%) 4 of
which were entirely due to power failures during severe weather.
e There: were no SLA non-conformarices:and the BES stream continues to be
fully reconciled.
@ In preparation for NR2, the BSU was able to reconcile TIP and CboS data
for each.day of the end-to-end test. This has given a welcome confidence
boost to POCL.
BA & POCL SERVICES
e¢ PCHL suffered loss of system due to-the Sequent failure. Calls were still
taken and more than half, that did not require PAS/CMS access, were
processed successfully.
e¢ An RML trial was conducted to test the payment.card delivery and hand-
over procedure. It found that the PO address data is-far from accurate. A
report has been received and shared with the implementation team.
_ CUSTOMER SATISFACTION
° Customer perception of our service continues to be high, reflecting the
efforts of the helpdesks and engineering teams.
¢ The 3 most significant problems by volume are:
e ‘Shiny barcodes’ - Despite early optimism, the initial resolution has
only been partly successful. BA owns the problem, but POCL are
currently reluctant to send any briefing to the Postmasters.
¢ Power cuts - The recent-storms particularly in the North East caused
significant problems. Knock on effect with missing PMMC cards.
e Ithaca printers - A persistent problem although there were only 3
genuine printer hardware faults this month. This is within expected
reliability levels.
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SYSTEM SUPPORT
e Agreement hasbeen reached with Workplace Technology over plans for the
extended machine:room on the 6" Floor at BRA01. The work is expected to
be complete by the end of February.
e A draft of the support agreement.for Eicon software has:been produced.
° Agreement has been reached with Oracle for residual 1C-support.
° Filtration from the SMC remains a problem. We are meeting with OSD this
weck.to establish improvement plans.
CURRENT CRITICAL PROBLEMS
e None.
ISSUES
° None
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HULL
iy
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ICL Pathway Quality & Risk Monthly Report Ref: PA/REP/033
Version: 1.0
Daté: 02/02/98
Quality & Risk Report
MONTHLY SUMMARY
° FRM progress - Sign. off.of CCN243 is still being pursued, with issues raised
by POCL. Hangouts in FRM reports for NR2 have been identified.
° Risk Management - Theré is now significant activity in roll-out risks. The
NRO Risk Register is highlighting the need to tightly contirél the end to-end
process, including the dependency on.POCL and. modelling of processes has
begun. The Programme Risk.Réview has shown an-increase in overall risk
exposure, due mainly to the identification of increased roll-out and
Acceptance risks.
° System Security - Penetration. testing (counter and technical) has been
defined at high level. Security Event Management and general security
processes continue to be progressed. Issues regarding the. incomplete
adoption of security requirements continue to be raised and dealt with.
° Quality - Dave Groom has‘now assumed responsibility for Acceptance Test
Manager for Policies & Standards. Disaster Recovery Planning; collection of
information to support the: plans continues. Packaging recycling returns
have started.
e — Audit - There are still significant issues remaining with the Audit solution
and testing. Substantial progress has been made with the operational.
definition of the function (Audit Manual and Trail Specifications). Two
internal audits have been completed - Customer Services and Verification
Centre. Jan Holmes has assumed responsibility for Acceptance Test
Manager for Audit:
. Year 2000 Conformance - Internal testing continues well, with only. a few
faults raised. Some gaps in test coverage have been ideritified. Testing of
Implementation systems and thé potential impact of Y2k. problems on roll-
out remain issues.
PROGRESS
FRAUD RISK MANAGEMENT
NEW RELEASE 2
° FRM reports, - There are still outstanding issues with the EVP, Lost 8
Stolen Cards and Impounded Cards reports, anticipated to be fixed for Live
Trial.
° Modelling of FRM activities has started, so that investigation costs can be
determined.
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NEW RELEASE 2+
EVP: The sign off of CCN 243 (‘Soft EVP) is still being pursued, with
POCL arguing about Card Reader failure issues.
RISK MANAGEMENT
NRO Risk Register, December. It is highlighting the‘need.to manage:the end
to end process (including the dependency on POCL) very tightly to achieve
a beat rate of 300pw. Two major impacts have been identified:
e A high risk of a long tail of hangouts, potentially 4 months, at the end
of roll out.
e —_ A low to medium.risk of interruption. to the roll out (worst case
scenario), the impact-decreasing as roll owt progresses.
Modelling of the NRO process.has now assumed a high priority.
The December Programmes Risk Review showed an increase in overall risk
score:
° NR2 risks have decreased overall; there remain concerns over-software
quality, level of PinICLs, and recent changes to the schedule to
introduce pre-proving exercises before MOT.
e- NR2+; the major risk remains‘conflict of resources with NR2
e Implementation / roll out. Risks have increased with the identification
of significant levels of exceptions in the.infrastructure programme.
This has resulted in a.need to restructure the approach and, with
POCL dependencies, a significant risk of a long tail of hangouts.
e Acceptance. The risks associated with dependency on POCL resource
level and ability.remain.
Business Continuity plans for all providers of roll out.services-are being
reviewed and a risk assessmént conducted.
SYSTEM SECURITY
GENERAL
A Security Awareness programme has been agreed for use.internally, in the
HSH and SMC. Trevor Birch, an ICL Consultant is creating a programme
to Pathway requirements and will conduct the sessions in the New Year.
An article is being prepared for inclusion in the April ’99 édition of ‘The
Courier’.
RELEASE 1¢
Concerns regarding physical security at sites is being addressed:
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e Bootle, car borne devices; escalation’ procedures-diring security alerts
are being discussed with A&L
¢ Wigan; changes to the site security are well advanced.
e LSA; solutions to the issue of cryptographic vulnerability are being
discussed,
° Horizon;Security Passes Audit Procedure and Horizon Security Passes
Procedure have been updated.
NEW RELEASE 2
* — Work continues on.documentation and procedures for NR2;
° The Security Management Procedures; Horizon comments have been
discusses and incorporated as appropriate.
© One Shot Passwords, POCL processes have been included in PPDs.
e — SecurID Token and PIN Management processes are being reviewed.
e Penetration: testing - Discussions with T&I re: rigs,resourcing and timing
are planned during January.
e Technical penetration. The HLTP prepared by Admiral has been
agreed.
° Counter penetration: The high.level definition has been produced.
° Testing;
° Business impacting of PinICLs continues.
° Security Joint Working Team has visited A&L and Outsourcing to
observe and review third party testing.
. PACE - ICL Outsourcing obligations have been agreed for the provision of
data.and documentation to support the production of certification for fraud
prosecutions.
e Antivirus - Requirements for initial installation and monthly upgrades of AV
software on workstations in the live environment (e.g. MIS, SEM, Audit;
FRM, RoDB clients) are being produced and agreed with Design.
e SEM - NT codes for Tivoli filtering are being agreed. Patrol security event
retention needs to be improved to include more details. The SEM
Requirements document is being updated.
° Issues:
. Clearance of Pathway and.other ICL staff'to view NSI data - with BA
° Password quality on CAPS boxes - with DITSG.
e — PCHL cannot harvest NT events as there is no system management =
with Customer Services.
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QUALITY
e Disaster Recovery Planning continues. 36 out of 44 sets of data has now
been forwarded to SMH. Reviews of draft Plans have been fed back.
e Packaging recycling - 1998 returns. Collection.of.data has.begun. During
rollout, Pathway packaging will form a significant proportion of the total
ised by ICL. The recycling process is capable of relatively easy contro] and
modifications to the Exel contract have been discusséd, so that they provide
Packaging Recycling Notes.
e Dave Groom has now added to his responsibilities the role of Acceptance
Test:Manager for Policies & Standards.
AUDIT
° The Horizon System Audit Manual (HSAM) has been reviewed by BA /
POCL. Comments have been incorporated.
¢ Audit Trail Specifications. These are intended to'be detailed descriptions of
data flows for business streams, to help with audit extraction. Draft
specifications for OBCS, APS, CCS, SLCA and SLAM have been produced.
e The Legato interface has been confirmed.as totally unsuitable for Audit
retrieval. Legato is being consulted regarding a more. practical front end.
e — Customer Service Audit has completed. Audit meetings have been held to
discuss findings - a few minor issues have emerged. The draft report is due
to be issued and discussed with CS managers, during January.
° Verification Centre Audit has completed. Issues raised includé verification
of rig builds, Celestica quality assurance, manufacturing security, process
definition and updating of On-Line Standards.
e Jan Holmes has now added to his responsibilities the role:of Acceptance
Test Manager for Audit..A draft analysis and matrix of reviews, visits, tests
that are required has been produced for discussion.
e —_- Audit testing. Audit acceptance-activities had‘to be dropped.from BIT due
to the unacceptable number of PinICLs. These activities will-have to be
addressed during the BIT regression cycle. The provision of MOT audit
testing facilities is being progressed.
YEAR 2000 CONFORMANCE
e¢ 2k testing continues well with only a few faults raised. A test coverage
review has revealed.a number of issues including Audit archive, Data
Warehouse, script gaps and.Implementation systems.
e We have now seen the draft DSS Millenium Operating Regime overall plan
(no detailed plans). There is nothing of substance that is not covered by the
ICL Policy.
° 3” party issues continue to.be monitored and changes impacted.
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CURRENT CRITICAL PROBLEMS
e Sign off of CCN243.
e Audit delivery; particularly content, testing and assurance for R2
authorisation jis still an issue.
ISSUES
e Disaster Recovery Plans; loss of'SMH staff.
e Audit; requirement 816 states that Record retrieval shall be packaged in
weekly batches as complete POCL Outlet Accounting Period.cycle: This has
not been resolved.
e Roll out vulnerability to Y2k problems.
e Test coverage of implementation systems.
e Ensuring Y2k readiness of external support organisations.
° Business’critical systems continue to be run on platforms not recognised in
the TED or TEI and not subject to proper verification and configuration
control.
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Business
Development
Report
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Version: 1.0
Date: 02/02/98
Business Development Report
MONTHLY SUMMARY
BUSINESS DEVELOPMENT
. Overall progress is somewhat difficult.in the current climate of uncertainty.
POCL do not want.to engage until ‘there is a clear geen light from
Government. In this fallow period, we are continuing to progress plans for
activity.as soon.as the green light is.given. These ‘Plans principally: cover
banking, bill payment and mails.
LOGISTICS FEEDER SERVICE (LFS)
¢ The CCN. is now signed off by all parties. There are a number of contracting
authorities responsibilities (CARS) which now need to be delivered. No firm
commitment has been given yet for Release 2+ as that is dependent on
delivery of the CARS. However the planning assumption is for delivery in
NR2+.
NETWORK BANK
° No discussion with POCL. Their programme director ‘for Network Bank is
leaving to head up Royal Mail in USA. No replacement has as yet been
found. I.am chécking ICL.contacts for possible candidates. However despite
that, there-has been major progress on the‘architeéture front with a high
level design document:due by end Jan.
EFTPOS
° POCL’s trial has finished but the results have not as yet been shared. The
project.mmanager has moved to another role but we continue to press. for a
statement of requirement,
PARTNERSHIP
e On the assumption.of:a green light, Partnership +: will come into being. I
am éngaging with a number of different groups right now to assess how we
need to change to make Partnership + work. My concern revolves around
the fact that we will be dealing with the same people on a day-to-day basis.
There is no reason for them to modify their behaviour and to join up ina
partnetship way. While we must continue to make this point at the highest
level in Post Office, wé need to examine how we can. work the system to
best advantage.
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CUSTOMER EDUCATION & COMMUNICATIONS
As the plan moves, we are continuing to hold to our customer education
baseline. This:is. vital to ensure that we stay within our budgeted figures. If
any change is proposed, J want the customer to raise this issue, not us,
There is currently not a lot of agreement between the two sponsors on the
detail of the advertising campaign. We can but await the outcome of their
deliberations while still keéping an eye on progress. The crux of this debate
is that'BA hold the upper hand on customer education and POCL would
like to do so.
There has been little press interest in the past. month. We still receive
regular calls from journalists but they can’t find any new story.
PROGRESS
The One ICL presentation given to Post Office in November has now been
passed to Group Comms. We expect this to appear on CafeVIK for cross-
company use.
Steve Cowburn’s management of change work is on'hold again pending the
outcome of the review.
Work on A2As has continued with a renewed urgency following the need to
clear all outstanding contractual areas as part of the detailed work'to form a
new baseline.
Meetings/presentations have continued with Fujitsu, National Savings,
Royal Mail, Camelot and ICL Government.
The marketing suite is'in the process ‘of being upgraded, We are.also
examining an enhanced set of demonstrations that better show the end-to-
end nature of the system.
Training has taken up quite some time in an effort to tie down our
contractual baseline and limit any exposure. This appears to have‘been
successful and POCL are now raising a Change Request to cover the
shortfall in training as a result of them underspecifying their requirements.
CRITICAL PROBLEMS
NETWORK BANK
We need design resource available for early February to follow on the
architecture work. This resource is not yet in place.
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JOINED UP COMMUNICATION
° There is an obvious need for a joined up approach to both internal and
external communications. Having raised this at John Roberts & Stuart
Sweetman level, there is now a meeting in diary with Rob Durrant, POCL’s
Director'of Communication. I do not hold great hopes for the outcome but
I go with an open mind.and a set of proposals.
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International -
Sales
Report
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ICL Pathway International Sales Monthly Report Ref: PA/REP/O33
Version: 1.0
Date: 02/02/98
International Sales Report
MONTHLY SUMMARY
e No submission this month
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ICL Pathway Organisation & Personnel Ref: PA/REP/033
Version: 1.0
Monthly Report Date: 02/02/98
Organisation & Personnel Report
MONTHLY SUMMARY
e Recruitment activity remained at a high level although-the numbers of
candidates actively looking to.change jobs declined as Christmas
approached. The Personnel team continued to work with managers, group
H&R. and.the Career Action Learning Centre to prepare for the introduction
of. Performance + and Professional Communities.
PROGRESS
e Recruitment of permanent employees was as follows: -
° Permanent appointments in December 3
e Currently under offer 3
e . Appointments YTD 103
° Current requirements 31
e . Recruitment activity took place across a number of departments within ICL
Pathway. The main source of candidates was external recruitment through
careers fairs. Internal advertising did not produce enough suitably qualified
candidates and external advertising is currently not seen as cost effective,
given the level of response. Therefore, ICL Pathway will continue to be fully
committed and highly visible at recruitment fairs throughout 1999.
e It was also recognised that ICL Pathway needs to strengthen its links with
A&TC in order to increase the numbers of vacancies filled by professionals
from this unit. A-key requirement is speed of-turn round.of CV’s by ICL
Pathway managers to ensure suitable candidates-are-not-lost. The Personnel
department will undertake more progress chasing activity to improve the
situation, : ,
e In-respect of graduate:recruitment,:the numbers and skills:required for 1999
were-identified-and a number of assessment centres set up for early/mid
1999.
e Provisional allocation of all permanent employees into a Professional
Community was completed during the month. The next:step is a discussion
between the employee and their manager to check the correct assessment
has'been made. It is expected-this will take place in Q1, probably as part of
the appraisal discussion.
e Performance + workshops were generally well attended. 50 managers will
have been on the course by the end of the series. Feedback was generally
good and it has been decided to hold additional 2 courses to cover everyone
who was not able to attend.
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ICL Pathway Organisation & Personnel Ref: PA/REP/033
Version: 1.0
feport
Monthly Rep Date: 02/02/98
e A report-has been created to support .the appraisal process, which will allow
managers to track.their progress in completing appraisals, objectives and
personal learning plans. This will be issued to the Management’Team on a
weekly basis until all are complete.
CURRENT CRITICAL PROBLEMS
° None
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ICL Pathway _—The Post Office.- Client Director's Ref: PA/REP/033
Version: 1.0
Monthly Report Date: 02/02/98
The Post Office - Client Director’s Report
MONTHLY SUMMARY
° Another satisfactory month’s revenue from the One ‘Stop Shop contract.
The Golden Cloud work.has.been completed. The [WIM Integrated
Workflow and Image Management bid was delivered and final presentations
made. The Technical Resources contract is being extended to include work
packages, in addition to the existing bodyshop supply.
BETTER GOVERNMENT
° Presentations and demonstrations'to David Cooke head of CITU were well
received.
° Work has started with Govt Division on planning how Government
Gateway / Golden Cloud should fit within ICL’s.Government market plans.
IWIM
e Following submission of ITT and final presentations from ICL, IBM (with
Bull), Unisys and Price WaterhouseCoopers, Post Office awarded the
contract to PwC. We met.PwC early January, it is clear a.major factor in. PO
decision was PwC’s strengtlis in Change Management and BPR. We await
the formal debrief from PO.
TECHNICAL RESOURCES SUPPLY CONTRACT
° Having booked orders for over £500k in 1998, this contract is being
extended from initial bodyshop supply of technical skills to small-to-
medium work packages, of which there are an estimated’ 400 outstanding.
This should deliver. around £4m‘in 1999.
ONE STOP SHOP
e The ICL MC contract-for supply of desktop PCs and infrastructure has
proved very successful, with over £20m of revenue won in 1998. This
represents around 80% of the business awarded with Computercenter
confined to 20%.
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