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POLB(08)1*
POLB'08/01 — POLB08/15
Post Office Limited
(company no. 2154540)
Minutes of'the meeting of the Board
held at 80-86 Old Street, London
January 21° 2008
on ry.
Present:
Alan.Cook Managing Director, Post Office Limited
Peter’Corbett Finance Director
Ric: Francis Operations. Director
David:Glynn Sales Director
Gary’ Hockey-Morley Marketing Director
Deborah Moore P&OD Director
Paula Vennells Network Director
Sue Whalley Strategy Director
In attendance:
Neil Owen Notes
Clare Wardle Head of Post Office Limited Legal Services
Apologies
Allan Leighton Chairman, Royal Mail Holdings ple
POLB08/01 PREVIOUS MINUTES
(a) The Board_approved the minutes of the previous meetings
and-noted the Investment:Committee minutes:of 19"
December.
POLB08/02: STATUS REPORT POLB(08)01
(a) The Board noted the report which showed all actions from
the previous meeting were completed or in hand. The
Board also noted that:
(b) POLB07/59(d):.the customer advocacy score was
calculated from 1000 interviews over a3 month period. A
movement of:the score of 4.5% was required for the result
to.be considered statistically significant, and-therefore the
score of 45% against a target of 47% would be considered
‘amber’ rather than ‘red’;
(c) POLB07/59(f): the. mails segregation numbers had been
circulated although.it had discovered that regionally
branches were sent different information and.this was
being investigated;
(d) POLBO7/60(d):.Alan Cook reported that talks continued
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with Bank of Ireland and mutual understanding was slowly
being reached over Travel Insurance in anticipation of
Postbank.
POLB08/03 POSTBANK UPDATE
(d)
- Irrelevant.
(d)
POLB08/04 JUDICIAL REVIEW OF NETWORK CHANGE
DECISIONS AND THE. DISABILITY EQUALITY DUTY
FOR THE PUBLIC AUTHORITIES POLB(08)02
(a)
(b)
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ACTION:,
Paula Vennells
(d)
(e)
(f)
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Post Office Ltd was committed to complying with the spirit
of the Disability Discrimination Act 1995 .and the Sex
Discrimination Act 1975 (including as amended by the
Equality Act 2006) even when it is not required so to
comply. The Board appreciated that this commitment was
currently actively recognised and effected throughout Post
Office Ltd. Nonetheless, pursuant to this commitment, the
Board considered it appropriate to formalise current
practice. Accordingly, the Board agreed that any
individuals taking ‘any decision or exercising any other
function on behalf of Post Office Ltd must be instructed to
do so having due regard to the need:
(i) to eliminate unlawful discrimination;
(ii) to eliminate harassment of disabled persons
that is related to their disabilities;
(iii) to promote equality of opportunity between
disabled persons and other persons;
(iv) to take steps to take account of disabled
persons' disabilities, even where that involves
treating disabled persons more favourably than
other persons;
(v) to promote positive attitudes towards disabled
persons; and
(vi) to-encourage participation by disabled persons
in public life;
(vii) to.eliminate unlawful discrimination and
harassment;
(viii) to promote equality of opportunity between men
and women;
it was also agreed that appropriate steps should be taken
to.inform all such individuals of the Disability Equality Duty
and the Equality Duty;
itwas further agreed that the documents and processes for
the Network Change Programme would be reviewed to
ensure that these reflected the actions and processes that
were in place to implement the commitment in relation to
the Disability Equality Duty and the Equality Duty.
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POLB08/05
ACTION:
Deborah Moore
(b)
(c)
()
(
2
(f)
(9)
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ACTION:.
Deborah Moore’
POEB08/06
ACTION:
David Glynn
Sue Whalley
ACTION:
David Glynn
(a)
(b)
(c)
(d)
(e)
(g)
(h)
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_-to.ancuire.ans.neaativainanacton.salas.icreviarsed/Simoan...
(k)
ACTION:
Paula Vennells
Simon Whale
()
ACTION
Paul Vennells
ACTION:
Simon Whale
~ Irrelevant
(0)
()
POLB08/07 FINANCE.FUNCTIONAL REPORT POLB(08)05
(a) Peter Corbett circulated the period 9 performance pack
and a budget summary. The following matters were
highlighted to the Board:
(b) the Company was on track to achieve a £30m loss, i.e. the
stretch target. Tight cost control and management of the
risks would continue to be essential to achieve this;
(c) an Operating Profit budget was being put to the ET for
approval on 17 January. This would meet the targets
providing the activity and discretionary spends could be
prioritised within a £36.5m cap. The budget and Operating
Plan would be reviewed with the Group Chief Executive on
13 February;
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(d) cancellation of the ‘automation of First Rate Bureau Pre
Order’ has had some consequences for cost savings and
loss reduction and resolution of P&BA backlogs;
(e) the Board noted the period 9 performance pack.
POLB08/08: NETWORK FUNCTIONAL REPORT POLB(08)06
(a) The Board noted the report and in particular that:
(b)
(c) Income Migration: a number of BDM's would have
significant branch closures in their areas over the next
quarter. Their main activity was focused on delivering
income migration plans. However this. has been impacted
by the lack of marketing, support for a customer offer;
(d) Network Change: there were now 27 area plans that were
live and in various stages of the 25 week process. These
27 area plans involved 1418 activities, a mix of closures
and outreaches;
(e) Outlet Support: three recent cases where sub-postmasters
have been held culpable for part of the losses from
robberies had resulted in adverse media interest. The
situation had been reviewed and it appeared the challenge
was to handle:the process better rather than change the
rules. The risk of a more compassionate approach being
adopted was that there would be.an increase in instances
of fraudulent activity.
POLB08/09
ACTION:
Gary Hockey-Morley
» Irrelevant
(c)
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POLB08/10
(a) Total POL income at end P9 was £706.6m YTD, which was
£3.13m or less than 1% below target. Focus product
income was £83.47m YTD, achieving 94% of target;
(b) Credit Card performance:for the network remained well
above target (14%), but overall performance at POL level
is only at 79% due to the failure of direct performance to
achieve target levels. This was due to the decision at
POFS Board not to maintain investment in Direct sales of
credit cards due to increasing cost per acquisition and
adverse impact P&L performance. Crown performance
continued to support network. numbers, and overall the
network was forecasting to achieve full year target. There
were some issues concerning the levels of incomplete
applications received, which were adversely affecting total
sales. This was being jointly addressed by POL and POFS;
(c) performance in Car Insurance remained just above target,
‘although this was due to ongoing strong performance
within Direct channels. Network sales remained below
target (64%) and were not expected to recover until the re-
introduction of the £50 cashback offer in February;
(d) instant Saver sales had seen a significant drop off in the
last couple of weeks, but this was likely to be primarily due
to an expected downturn in savings activity in the key pre-
Christmas period.
POLB08/11 i I
@) I
) I
. Irrelevant.
ACTION: (4)
Alan Cook
Peter Corbett
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POLB08/12
ACTION:
Deborah Moore
POLB08/13
ACTION:
ALL
POLB08/14
POLB08/15
(a)
(b)
(c)
(a)
(b)
(c)
(a)
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Irrelevant
STRATEGY REPORT POLB(08)11
The Board noted the report and in particular that:
Programme Manager: recruitment of a candidate of
suitable calibre had been difficult. There were now 3
candidates identified for final review;
Government Review: the review had.now begun and
feedback would be provided by 28" March. POL’s
contribution to the USO would likely be examined, together
with potential separation issues. It was agreed that Sue
Whalley would be informed should any director be
contacted by any party concerning the review.
CLOSE
There:being no further business, the-meeting was closed.
DATE:OF NEXT MEETING
The next meeting of the Board was scheduled for 17 March
2008.
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