FUJ00175310 - PowerPoint Slides - Post Office Account: The first 30 days
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Post Office Account:
The first 30 days
8 May 2016
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30 days in: Whatitlike? ~)\ FUiITSye
The Purpose of this call is to highlight some of the relationship challenges and
perceptions Post Office are raising with me and my proposed plan to respond.
At a high level the perception is Fujitsu are not being helpful, in some instances
deliberately delaying projects and not committed.
The outage on Monday was serious, as is Als note but the response to us
reflects the depth of feeling in Post Office and the extreme pressure they are
working under from public scrutiny and trying to deploy a massive IT programme
of change alongside a business plan that is due to be signed off in June and
until then there is uncertainty.
If feels like :
“We renewed our vows”
“Had a romantic week in Venice”
Returned back to work
and are now in Danger of reverting to back to type
As someone said:
Time to change the game (again)
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Recent Service Impacts I iN FUTSyr
Service Items raised:
The issue on Monday was serious and the team responded quickly to fix the issue and service
resumed within 80 minutes from first alerts. 65% of txns failed during that period.
The Agents pay item FJ responded strongly to support an issue new suppliers and POL
caused. On this it is disappointing the effort put in to resolve is not recognised by the business
at worst it would appear there is a view we either caused this or were not interested in its
resolution.
The Outage on Monday will not have triggered any service credits. I am sure this will further
aggravate their perception.
Graph of days trading
a ne \
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Draft note on outages and agents pay
On the agents pay item the team absolutely understood the severity of the issue and itis \
disappointing the effort the team putinto resolving and recreating the data was not visible to you.
We had to ensure and documentthe process we followed would survive a Sparrow scrutiny and
exportall the data to a test system and roll forward though the trading days. This took significant
effort andthe team worked through the nights and weekend to get the data created on the day they
promised. This following an issue not of Fujitsu’s making and highlighting the need to manage the
endto end reference data process flowing in from Atos and Post Office.
I agree the outage yesterday was the worst outage for a number of years and is being taken
seriously by Fujitsu. From our monitoring picking up the issue on the morning the team acted quickly
to identify a plan of action with options, raise these with your appropriate teams and Gavin was in
communication with Chris. All of this enabled the service to be restored quickly and prove itself
reliable forthe rest of the day. What we do not understand yet is that the primary system has been
running fora year withoutincident and yet on fail back from the secondary system we had to make
new setting changes not used on the primary before to restore service underload. We are
investigating the route cause and have raised incidents with Oracle.
I and the team also recognise the timing of this incident was poor given Paula’s speech at the NFSP,
but we did ensure our representatives at the NFSP had the same briefing as Paulato ensure
consistency of message.
When the similarincident happened earlierthis yearonthe weekend and Gavin had to make the
hard decision to call Chris on the Sunday to say we needed to fail back to protect the Monday
trading, while it impacted the Sunday, it was the right call and one you would want us to make again.
The issue that caught the team on the primary system yesterday was thata stable platform forover
a year developed similar memory symptoms despite no changes to that platform.
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The challenges coming back : N FUTSyr
Complaints that lead individuals being difficult and not “shaken off’ the exit mentality
Generally coming from the remaining exit space where pressure remains and
relationship with other suppliers may be challenging
The fact their business plan is not set — drives uncertainty and change which
disrupts plans
When a team member identifies an issue — despite how it is raised this can be
interpreted as old FJ behaviour.
Frustration on some of our insights in business propositions/ IT solutions. The view is
we are being negative rather than helpful. - the challenge we face is a lot of what POL
want to do needs business reengineering — before they get to the IT and this is
leading to tension between the two areas in POL and we find ourselves caught
inbetween.
A number of low-level items around change process, invoicing and CTs that in
isolation are small issues but combined begin to cause bad feeling. Again mostly
driven by changes in POL business model such as change management or a new
finance platform but again we are seen as difficult.
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The actions i I Otsu
I have already had an awayday with the team to ensure they understand the style of engagement \ we need to ‘
project. \
* that we always identify a path out from an issue
* That we will take on work that technically should be other Towers responsibility provided we are paid for it
* Weare not trying to delay exits of the other Towers — we have a vested long term relationship here
* The can do approach
I will rotate one or two faces to different areas of the account to stop specific relationship perceived issues
I have brought on a PD to manage the Trinity projects and ‘provocations’ to ensure we respond to our
commitments
I am recruiting a CTO — this needs to be a retail/ cloud experienced individual
I believe we need a CE style role to bolster the front team
We have added two architects to the front team giving a team of three — this will need to be increased back
towards 5-6 as per pre exit days
We need the kick off reset POL GE to FJ UK exec meeting to clear the air as the perceptions/ frustrations start at
this level
Similar for the working level leads (my team)
There are a number of pre sales investments we should make to show agility and lead the innovation process —
EPOSS integration etc.
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Must : Intend. I I
(M)Front Office Closed Trinity 1
= £138m :Invest2Save
= Apr 2023 “£10m Cost Out
=» Land & Expand ‘Roadmap to Cloud
(1) Aspirations FY 16/17
» EUC Win-Back € 15-
€20m
= Test Rigs Ext & Expand € 8- €20m
«= Other : EROS AHaeNbyrs MFP OD €15m
» Journey to the Cloud Enabled
= Lower Price Point Scope 4 Term
= 10 Year Relationship 2027
= Seat at Top Table
" $SI/SD Win Back / EUC / Network
. Joint Sales : Non UK Post / Retailers / Transport / Local Gov
© internat use one © 2015 FUJITSU
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Challenges to overeome : \ FUjitsye
People / Process / Technology
*
Has been known to misdirect the traffic in the past
* Top level down “feeling” of mistrust with each other
Account Team
Gavin Bell
Danny MacLean
Chris Broe (Interim CIO: *contractor)
Post Neil Wilkinson (Transformation Dir : contractor
Muhunda Satchithananda Office WV Gill Tait (Business Change : Contract Aug16)
Tom Leishman Strategy & CTO: Vacant (Search in place)
Torstein Godeseth A services & Rob Haughton : New CIO ( Started last week)
+ Martin George : Mkting & Commercial Dir
_ David Hussey: Transformation Dir
~ Kevin Gilliland : Networks & Sales Dir
Alasdair Cameron : CFO
Pauline Vennells : CEO
EC] Nw Py ~*~ a es
Tim Parker : Chairman
Example : EUC HNGx Mar17 : BNS Mar17 : EPOS Integration
8 © 2015 FUJITSU
Pete Newsome
Carol Dunsford
Michael Harvey
Regina Moran
Paul Patterson
Duncan Tait
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Backdrop and Challenges to overcome N FUTSyr
People / Process / Technology
CC won EUC Tower : 4+1+1 (Central Admin upgrade plus Counters Support) 1
Central Admin: Late and over budget (View €15m)
Branch counter Refresh: BCR programme: Late: Was Mar16 / Oct 16 / Jan 17 / Sept 17
POL bought 30,000 keyboards : (View sold back to CC to save €50k/mth)
FJ EuC provocation seen as : Lower Cost/Risk/More Secure & Higher Confidence
Provides Opportunity to defer CAPEx €50m by utilising Hybrid HNGx & HNGa
CC playing hard ball: View for de-scope + 2 years + Sizable €M compensation
CC to POL :Face2face CFO to CFO discussion next month
Verizon won the Network Tower : 4+1+1 June15
BNS terminates Apr17.
Last month POL requested a mini extension option
Last week POL latest is decouple deployment and complete by Mar17 no contingency !
FJ View (ROI on Network 15 Years ! )
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Summary & Followoon actions. N PUTS yr
We rarely get conflict on service delivery, but this is actually what POL pay for.
How do we get them to value this mission critical element in the business ?
We only get push back when we hold up the mirror to change.
New CIO quote on business change “ I don’t understand how our operating model
could possibly work !”
Before we throw the entire account team under the bus : pause for thought
Interim ClO : Leaving imminently Transform Dir : Not a detail man: Will be challenged
Business Change Owner : 1 Year contract (unlikely to renew) CTO Vacant Position
New CIO: Detail man: Engineers are the key Rest are Overheads
Hates the term “trusted partner” fan of insourcing
View KPmG engaged at CIO level : Old or new requirement?
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Summary & Followoh actions I
BO
Investments to move forwards: I
1) BNS study to validate what could be extended / sweated Est €50 to € 100k
2) EPOS Trail to validate technology and build confidence Est € 30k
3) Journey to the Cloud: Phase evaluations : K5/MetaArch Est € 100 to €150k
4) Put some new faces in place to refresh thinking an demonstrate change
Actions to discuss/challenge and find way forward :
ONCE SERVICE CONVERSATION SETTLED
Snr Exec Kick Off : To rise above the noise:
Financial Discussion : Does Capex avoidance hold value FY16/17
Does financial advantage of FJ provocation on EUC balance against CC demands
Could a financial discussion with FJ being sub to Verizon avoid €15m transform
Could same improve 15year RIO on network
De-risk transformation BCR that delivers no material business value
Defer BCR that delivers no material business value
POL business strategy yet defined
ONOoaRWND =
NNN
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