CIRCULATION: NATIONAL EXECUTIVE COUNCIL A/3__ PC _NW_O
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INVESTOR IN
Ms C Baker Post Office Counters Led
General Secretary
National Federation of Sub-postinasters
Evelyn House
22 Windlesham Gardens
SHOREHAM-BY-SEA
Sussex our ref: NESPupditeOct0O
BN4 5AZ 5 October 2000
4
Dear ein
I promised you an update on the current progress and issues on Horizon.
National rell out progress
e Allavailable outlets are now in the programme and the main infrastructure phase
(survey and preparations) is largely complete. There are 25 outlets which are
suspended pending resolution of site/electrical supply problems and around 500
outlets, mainly mobile solutions, awaiting survey work,
« We have now migrated 12702 outlets (70% network). Our roll out rate equates to
an average of a counter terminal every 5 mins and an outlet every 12 mins.
° Training over 60,000 people has not been without its problems. Course
scheduling and occupancy levels have been major issues with ICL Pathway over
recent months. Happily their administration of user training events is now
within acceptable bounds but we now find ourselves in the position of training
fewer people yet needing more courses than the contract provides for. To address
the gap we have developed a number of initiatives including allocating 7
delegates to some courses, redistributing training costs including making more
prudent use of user awareness events and extending the training window to 10
days before installation. The extension of the distance limit to 25 miles will also
have a beneficial effect.
e Pre-Christmas installations. Unlike last year, when we paused earlier for
acceptance deliberations, we have a contractual commitment with ICL Pathway to
deliver installations until 8 December. Whilst this may be less than ideal there are
other busy times in the year when migrations have taken place. Without wishing
to understate the impact on those subpostmasters and branch office staff affected
we do need to automate our trading environment as quickly as we can to deliver
the commercial benefits we all wish to see. The wake of the PIU report and
advent of the regulator is not the time to be hanging back. There is only so much
that can be done to accommodate individual requirements and we have
developed an appropriate response with the NFSP.
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5 October 2000
Mr C Baker
* Redeployment of team - Plans are being laid for redeploying 90 managers and 330
staff on the project. A preference and counselling exercise is almost complete.
Most field staff have a right of return to their previous job.
* All project milestones are being met. We have virtually completed our initial
installation sweep across the country; subsequent phases of the project will
include installation of 320 outlets with mobile systems and around 500 that
require satellite communication systems. Our first live satellite migration is
planned for 23 October at Shotton Colliery. The first mobile installation is
scheduled for w/e 15 January 2001. The projected main roll out end date is mid
April 2001 with a sweep up on a small number of outstanding cases by June 2001.
Live environment
¢ Helpdesk performance - although there have been some blips as a result of recent
incidents, such as the introduction of the Inland Revenue Working Families Tax
Credit facility, there has been an improvement on both Network Business Support
Centre (NBSC) and Horizon System Helpdesk (HSH) performance. The
introduction of Interactive Voice Response (IVR) on the HSH on the two busiest
days of the week, namely Wednesday and Thursday, was well received though it
did impair the % calls answered in <20 secs as a consequence of the duration of
the recorded message. This facility was introduced as a temporary expedient and
is to be withdrawn next week now that all HSH operators are fully effective.
Average number of weekly calls per outlet to HSH is currently 1.17 compared to
1.40 for NBSC, which in itself is 5% lower than regional helpline internal calls.
NBSC are now achieving almost all their call handling performance in all
dimensions; the latest time to answer performance is 8 secs with over 75% calls
now being resolved by the initial call handler.
* ICL Pathway performance against service level agreements - although there is an
improving trend there is an underlying cause for concern and a contractual
process of remedies has been invoked. Problems have been experienced in recent
months with the non-polling of transactions from some outlets. ICL Pathway are
working on changes to enable a quicker resolution of any failure in outlet
communication links at the time this occurs to minimise inconvenience to both
subpostmasters and customers.
* Cash accounts - since the introduction of Horizon there has been a significant
reduction in amounts held in unclaimed payments/uncharged receipts, The
same cannot be said of authorised shortages and internal processes, including
additional help to specific outlets, have been improved. The level of errors on
Horizon continues to fall but has still not returned to pre-Horizon levels; an
analysis of root causes has led to a number of remedial actions being taken.
¢ Service improvements - continue to be recorded and evaluated. A number of user
ideas are incorporated into the CSR+ release, which is also expected to deliver a
reduction in roll over time. Many of the service improvements have come from
user groups.
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5 October 2000
Mr C Baker
The User Group process has been developed to capture feedback from users of the
Horizon system which can be progressed into service improvement proposals.
User Groups meet every 3 months and the agenda for these meetings is
formulated from feedback from questionnaires sent to a representative sample of
offices, who have been on the Horizon system for between 8-11 weeks, together
with any service improvement ideas sent separately to the NBSC. The responses
from the questionnaires are also used by Post Office Consulting to compile a
periodic summary of user perceptions. User groups consist of approximately 8-10
subpostmasters/ office managers, the location of the mectings being selected ona
geographical ‘best fit’ for attendees. A number of NFSP officials have attended
these meetings. If we have a shortfall in the number of people willing to attend
we then invite a selection of subpostmasters located in the geographical area
chosen. The meeting takes the form of a discussion group around proposals for H
improvements to the system. All proposals which are worthy of taking forward
are subsequently subjected to a cost/benefit analysis and the outcome of the
proposals, whether accepted or rejected, are communicated via national
publications, such as ‘Your Business’.
¢ Electronic scales - to facilitate the connection of D104 scales to Horizon we have
agreed a leasing deal with Avery Berkel and hope to tie up the loose ends with
ICL Pathway shortly. Once this is done we will announce details. 1 understand
Avery Berkel will be displaying the scale at the Telford exhibition.
¢ Out of hours policy - solutions to handle sales outside office hours, primarily of
bill and pre-payment products, have now been developed. These include
extending opening hours, carrying out transactions on the private side of the
business, and re-entering the secure area to carry out the transaction.
Software upgrade (CSR+)
* CSR+ introduces new functionality (eg Smart cards, cash/ stock provision
enhancements). CSR+ is our first major new release during national roll out and
co-ordinating the training and preparation for this change whilst still rolling new i
outlets is a big logistical challenge. Two training briefs and a workbook on i
revised remittance procedures have been distributed. The pilot was delayed by
some problems with software, which controls the download of the upgrade to
outlets, but is now fully operational with 277 offices live. The problems initially
encountered have proved useful insomuch as we confirmed the capability to
regress without service interruption to the original software. Itis still the
intention to switch to new CSR+ migrations on 23 October and complete the
upgrade of the remaining live CSR offices before the end of November. Outlets
are being advised in advance of their upgrade date.
Two elements of this upgrade will not be fully enabled at the outset. As a result
of client problems Quantum will not be ready to roll out until January 2001, and
the link between Horizon and the automated cash and stock replenishment
system (SAPADS) will not be active until January 2001 for cash and July 2001 for
stock.
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5 October 2000
Mr C Baker
Staff and subpostmaster feedback
¢ The latest research across a sample of staff and subpostmasters some 2-3 months I
after migration to Horizon indicates a better feel good factor across the network. '
94% find the system easy to use, 80% say user training is good and 90% find
balancing easier. Results show a significant positive movement on live trial and
encouraging improvements on previous research in December 1999, Not
surprisingly subpostmasters find transactions easier than balancing to master.
After an intense training course they need time for familiarisation with the system
in their own environment. Other feedback from outlet visits, helpdesk calls and
other communications (eg The Subpostmaster journal) echoes this feedback.
Thave tried to keep this report as brief as possible but if all is not clear or you would !
like more detail on some aspects please call.
Yours sincerely
DON GREY
Horizon National Roll Out Project Manager
‘Telephone numbe: