FUJ00096312 - Email from Gavin Bounds to Duncan Tait, Re: forwarding email of 30/06/2010 re: response to your letter

Evidence on official site

FUJ00096312
FUJ00096312

To: Bounds Gavin” a
From: Tait Duncan[/O=EXCHANGE/OU=ADMINGROUP1/CN=RECIPIENTS/CN=TAITD]
Sent: Wed 30/06/2010 5:04:21 PM (UTC)

Subject: Fw: response to your letter

Fyi.

----- Original Message
From: mike.youngI
To: Tait Duncan
Sent: Wed Jun 30 17:44:34 2010
Subject: Re: response to your letter

Duncan
Thank you for your response to my letter.

It won't surprise you to learn that I am somewhat disappointed that it took
so long to formally reply to my correspondence of 10 May and with the
apparent 'sea change’ on approach to some of our concerns. As my letter
intimated, these areas of concer were brought to the fore in a Royal Mail
Group Review of the current Horizon contract. My understanding from our
weekly calls was that you had taken advice from KPMG as to how you could go
‘open book' with us and therefore didn't foresee a problem in doing so. On
the issue of having a qualified independent party audit to evaluate

Fujitsu Programme execution, along with staffing levels and skills base, I
had been briefed that you had spoken to several entities to pursue this
endeavour. Indeed, I was told you were close to agreeing terms with one of
these. Additionally, in our calls you will recall I had asked whether

there was a possibility of the Post Office 'owning' the Terms of Reference
and again, this was something you were going to strongly consider.

As it stands now, I feel I have been led down journey of a number of
months, just so that you can now Say, 'no'. This does not reflect well on

our relationship and will not be well received in the next review. I have

as a matter of course, been keeping both the Post Office Executive and the
Group Executive aware of the progress I was told we were making in these
areas.

It is now even more imperative that my Managing Director gets a view from
the Japanese Board on just how they feel this relationship is progressing.
We would like to see if the meeting between Dave Smith and Richard can be
brought forward to a date closer than the current August date.

In the meantime can I suggest you and I get together in person sometime
next week and talk through where we are. If, it makes things easier I'd be
happy to come into Baker Street.

Regards

Mike

Chief Technical & Services Officer
Post Office Ltd
148 Old St

Tait Duncan
<Duncan. Tail

To
Mike Young/e/POSTOFFICE
29/06/2010 08:46 cc

Subject
response to your letter

Dear Mike,

Thank you for your letter — we have recently been having similar meetings
and have come to some similar conclusions in the Governance area. We would
like to support your initiative and formalise into the contract a periodic

on-going senior level relationship review and a more operational level

board at which the current Governance relationships in the contract come
together. In advance of formal agreement, Gavin and Lesley have scheduled
the first of these to take place on 7th July. This should improve the

visibility to both parties of the other's operations and concerns and

facilitate dialogue.

Our intended review with David and Richard will go ahead, albeit later than
we had hoped. I believe we now have a date scheduled.

Since your letter, I am extremely pleased with the progress that has been
made. We have located the source of the troubles and taken steps to rectify
the issues and we have now re-commenced the pilot. Currently counters
running on HNGx stands at just under 20% of the estate. We are now rolling
out at about the maximum levels originally envisaged with no further sign
of the problems that initiated our discussions. Tuning will continue and

we expect to emerge from the pilot with high levels of confidence for the
remainder of the deployment.

The cause of the issues that delayed High Volume Pilot was deficiencies
within the Oracle product code. Oracle has confirmed this and that the
issue has been resolved. I am sure this conclusion will have restored your
confidence in Fujitsu and both our teams ability to deliver this programme.
As a result, I think it makes sense to allow our teams to maintain focus on
the remainder of the pilot and the full roll-out phase, as you appreciate
with all complex major programmes there will always be issues to deal with.
At this crucial phase of the programme, we can see no benefit and will not
be pursuing a 3rd party review.

You will have seen a tremendous effort from the Fujitsu team and business
in getting the issue resolved, it should serve as assurance to you that
Fujitsu is committed to POL and this programme. Our finances are under
control and acceptable to me and so in turn to the Fujitsu Executive, we
can see no benefit in sharing our financial status at this time.

Thank you for your offer of assistance over our Red Alert, as you will have
been made aware the Red Alert has now been lowered and so no action here is
needed.

Finally, I would like to thank you for your understanding during these
teething issues; we are hugely sensitive to the operational interruptions
and the impact to your network that the HNG-X pilot has caused and, whilst
we both know this is what pilots are for, the level of interruptions and

the time taken to determine the root cause for this ‘Oracle/BRDB issue’ has
been longer than we could have expected. I assure you that we do not take
any disruption to you or your customers lightly.

.-Duncan

Regards..

FUJ00096312
FUJ00096312
Duncan Tait
Managing Director
Fujitsu

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