FUJ00095658
FUJ00095658
148 Old Street
London
EC1V 9HO
7 020 7012 3171
E mikeyoung@
Duncan Tait
MD for Private Sector Division Fujitsu
22 Baker St
LONDON
W1U 3BW
10 May 2010
Dear Duncan
Recently, members of the Post Office Executive team met with some of our Group
Executive colleagues to review our current standing on our Fujitsu contract. The
purpose of this meeting was twofold, one to review the current situation of the HNGX
Programme and secondly, to review the Fujitsu contract as a whole. These types of
review follow best practice and are common within the Group where there is a significant
reliance on a partner and/or supplier.
It was recognised during this review process that our relationship with Fujitsu is of long
standing, has thus far proved fruitful to both parties and continues to play a pivotal role
in the successful delivery of Post Office's products and services. There were several
areas where we believe there is room for improvement that would allow us to follow
best practice and further reinforce confidence in delivery. There remains a concern that
with the long running roll-out of HNGX and the fact you are already contractually
realising our savings that this may be too onerous and may be affecting the profitability
of the contract. This fear could be allayed if you were prepared to go ‘open book’. This
has been approach we have used with other contracts of this nature.
The second and third points are related to the HNGX programme itself. We would very
much like to see the executive correspondence within Fujitsu related to the recent Red
Alert. This, we feel, would give us an understanding of how the Executive Management
within Fujitsu are aware and responding to some of the problems we have seen in roll-
out, Additionally, we would like you to consider bringing in a qualified independent party
and asking them to review and audit how the current programme is being run, as well
as testing resource and skill levels both on the programme itself and other key initiatives
that we have underway with Fujitsu.
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FUJ00095658
FUJ00095658
As a consequence of where we are with the implementation of the HNGX programme
and now that the Post Office has a new Managing Director, I think it is imperative that
Dave Smith and myself meet Richard Christou and yourself as soon as possible.
Following our call on Friday and knowing that Richard has now relocated to Japan, I have
no issue in his participation being via video phone or conference call. At this level, we
believe it is important that executive relations are maintained, Board to Board.
I must emphasise that the points I have raised in this letter are designed to assist and
not hinder our mutual execution in the systems and services arena. Should you need
clarification, feel free to drop me a call, otherwise I look forward to your response on the
above mentioned issues.
Yours sincerely
GRO
Mike Young
Operations Director
Post Office Ltd