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Automation Transformation Steering Group Meeting
17 March at 2.00 p.m. in Second Floor Board Room, KEB
AGENDA i
1. Improvement Opportunities from last meeting Paul Rich 2.00 - 2.05
2 Actions from last meeting Paul Rich 2.05 - 2.15
3. “Red Light” Programme Issues Dave Smith 215-245
Input: Attached summary from monthly report and verbal update from Dave.
Review of issue log and milestone report
Output: Actions and owners to resolve
e 4. Traffic light report review Dave Smith 2.45- 3.15
Input: ATSG to review circulated traffic light report.
Output: Traffic light report updated and confirmed by the ATSG.
5. Risk register Elena Marsh 3.15- 3.30
Input: Review of top risks that have been identified (paper attached)
Output: Identification of additional actions required
6. Service Management Dave Miller 3.30-3.45
Input: Verbal update by Dave on measures in place to establish service
management
Output ATSG to note progress on this issue.
7. Impact of Group initiatives Wendy Powney 3.45- 4.00
Input: Verbal update by Wendy
Purpose of item will be confirmed prior to the meeting.
Output ATSG to note progress on this issue.
8. Project Assurance Dave Smith 4.00 - 4.30
Input: Background paper to be read before the meeting, Dave to give a sho:
presentation and lead discussion
Output: ATSG to agree a model for establishing project level assurance.
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9. Communication and recognition Paul Rich 4.30-4.40
Output: To identify areas for communication and target audiences.
To identify any recognition opportunities,
9
10. AOB & meeting review Paul Rich 4,40-4.45
PLEASE NOTE EXTENDED MAY MEETING BY TWO HOURS, to start at
1.pm
Next meeting : 2pm on 21 April , Second Floor Board Room, KEB.
OFFICE
————_—_—_—_———
Fm) AUTOMATION TRANSFORMATION
PROGRAMME
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Automation Transformation Steering Group
Notes of meeting on 17 March 1998
Present
Apologies
Distribution
Next meeting is 2pm, 21 April in Second floor Board Room, KEB.
Rob Durrant:
Jonathan Evans
Lesley Lawson (for Dave Morphey)
Dave Miller
Wendy Powney
David Smith
Basil Shall (for Duncan Hine)
- Roger Tabor
Dick Wheelhouse
Elena Marsh (Notes)
Duncan Hine
Dave Morphey
Mena Rego
Paul Rich
Stuart Sweetman
Paul Thornton
As above
Automation Process Group
Automation Working Group
CEC distribution list
Action
2.3
Action
Action
2.4
Action
2.5
Actions from last meeting
See attached Action Point Summary.
Red light programme issues
There were three new red light issues
1 EPOSS design
There are significant weaknesses with the current EPOSS design
arising from a variety of reasons related to the initial statement of
business requirements and the degree to which these have been
delivered.
Reasons for the weaknesses fall into three categories:
(a) where the initial requirements have not been met
(b) where the initial requirements do not meet business needs
(©) where the initial requirements are not clearly stated making it
difficult to establish reasons for non delivery of required
functionality.
It was noted that a task force of 5-6 people will be working with the
PDA in an attempt to overcome the major issues, but it is too early to
assess whether these efforts will be successful. :
A plan is being prepared to address the issue.
2 POCL’s process for stating requirements
There are concerns about POCL’s process for stating business
requirements in such a way so they can be unambiguously interpreted
by Pathway,
The immediate concer is the statement of the business requirements
for release 2+ and the Logistics Feeder System (LFS). During the
discussion it was noted that the ADS business case assumes delivery of
the LFS in October 99 and the benefits in the case are reduced by £1m
for every quarter delay.
It was agreed that the TMT would work with ADS to state the
requirements for LFS.
It was agreed that the TMT would report back on progress with
determining the contents of release 2+.
3 Resourcing
There is a big demand for resource with front end knowledge and
demands are not being met in the time necessary to enable programme
requirements to be met, such as testing and business assurance
activities.
It was agreed that resource issues should be filtered to Lesley Lawson
and Peter Turgoose, stating the numbers required, the skills required
and the timescales.
One other issue about communication was brought to the ATSG from
the APG. There was concer at the APG that information about the
programme is appearing in the press which is not consistent with
information we produce for the clients, staff and agents and that the
message “there is nothing to say” is becoming increasingly less credible
given this speculation. © .
It was noted that there is a more positive line being worked on with
ICL.
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Actions
Dave Miller *
Dave Smith
(IMT)
Dave Smith
(IMT)
Dave Smith
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© Actions
Item 3 Traffic light report : °
3.1 The circulated traffic light report was reviewed and the following were
noted;
© O8- Release prioritisation process
This will be addressed after the service development plan is produced.
* O16- Pathway to POCL system testing
This depends on interface testing between Interim TIP and Pathway,
which is reduced from 8 to 4 weeks, which may cause slippage in
meeting the 5/10/98 date.
3.2 : It was noted that most of the other traffic lights shown as amber are
because of dependencies on 016.
Action © Dave Miller will give the ATSG a clearer view of Horizon related Dave Miller
dates at the April ATSG.
Item 4 Risk register
e 4.1 There was one new top risk reported to the ATSG, namely, financial
failure of Pathway. It was noted that this risk has increased and covers
the current contractual negotiations with Pathway.
It was noted that a contingency proposal is being presented to the CEC
by Paul Rich.
Action It was agreed that there is a pressing need. I for a contingency plan to Paul Rich
be put in place and that the ATSG should be updated on this at the
April meeting. :
4.2 It was noted that risk number 3 (“increased errors”) has been increased
as this now includes the problems with the EPOSS design referred to in
2.2 above.
43 Tt was noted that the risk of Horizon rollout being delayed was
increased and that this was related to Pathway’s performance in
meeting the initial testing stages timescales.
4.4 Tt was agreed that a new risk should be added to the register around
overdependency on key people. It was noted that a retention approach
was being deployed within the IS community and that Jane Livett also
had work in hand on this issue more generally.
It was noted that we should draw on any approaches already developed
by Royal Mail (if any).
Item 5 Service Management
5.1 Dave Miller gave a short presentation on service management.
Tt was noted that:
¢ Aninterim Service Manager is in place
¢ The proposed 1998 budget cost of service management would be
£1,2m and cover 25 people.
© The proposed 1999 cost would be £1.8m and cover 45 people.
¢ The service management function in POCL would be working with
Pathway to ensure the system is operating effectively.
¢ The ability to retain staff will be a factor considered in deciding the
location of the service management function.
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Action
Item 6
6.1
6.2
Item. 7
7A
72
73
Action
74
Action
15
Item 8
8.1
¢ Ifservice management was required for release 2 in October 98
expedient action would be required in setting it up...
© IT Services will be consulted about their ability to provide part of
POCL’s requirements.
It was agreed that there is a need to revisit the 98/99 OPB to ensure
that the costs of service management are included.
Impact of Group initiatives
Wendy Powney gave a presentation on Group initiatives and POCL’s
alignment to them (slides attached).
It was noted that in general POCL is aligned to Group initiatives.
Specifically: .
© POCL single client is consistent with the Group approach
© POCL are leading on the implementation of SAPHR on behalf of
Group.
© The TIP Project (& SEMA) will evaluate the commonality of
functionality between the-TIP & IMP Projects
e The group purchasing project will have little impact on POCL but
there is still a need for impact assessment.
Project Assurance
Dave Smith gave a presentation on project assurance which was
defined as the independent from the project manager monitoring of all
aspects of project performance.
Project assurance is a requirement of PRINCE 2 and while there are
elements of assurance in the projects there is not a consistent and
comprehensive approach to it.
It was noted that project assurance is the responsibility of project
sponsors who should introduce it to the project board. The ATSG
agreed that all the projects should put in place project assurance, and
that the project boards should report to the ATSG via the TMT (June
98) with a proposal on the form of project assurance they will
introduce.
It was noted that in arriving at an appropriate form of project
assurance the costs and benefits of introducing it must be considered.
It was agreed that the TMT should provide the projects with a core
approach to introducing project assurance,
It was agreed that Roger Tabor would ask the Chief Internal Auditor
to liaise with the TMT to discuss the type of assurance that can be
provided by audit.
Communication and recognition
It was agreed that the risk register would not be communicated outside
the ATSG.
Janet Topham was recognised for her paper on project assurance.
Actions
Dave Miller
project
sponsors/
IMT
Dave Smith
TMT
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Actions
Item 9 AOB
There was no other business.
Meeting review
The meeting was well chaired.
Item 1 Action point summary after the meeting
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Action Who When Update
raised
2 Mena Rego was actioned to ensure that the requirement MRego 18/11 Achange control note has been raised and is being
for an additional field within reference data to allow all the progressed. The commercial issue is being
changes relating to a single event to be tagged to that event to be discussed off line. Reference Data need to meet 15
addressed so that it doe not cause disruption to the programme. March deadline.
Transfer to issuc log.
3 The programme plan should: DSmith 18/11 The approach to delivering ‘a baselined plan was
(a) be presented to the ATSG once it has been baselined (January
98). Once the plan is baselined the chosen migration option
should be validated.
(b) Owners of uncertainties/ dependencies should be clarified to
ensure accountability for delivery.
(c) The plan should include the new Data Management project
(d) include dependencies of outcome of TIP/ Pathway synergy
work,
(e) track across the plan external commitments/ influences such as
Pathway negotiations, TIP commitments to suppliers and
commitments to SAP already made. Also to co-ordinate with
the plan the Mapec dates for projects re authority.
agreed at the January ATSG and this includes (a)
to (c). Due to report to ATSG in May.
Carry forward to May ATSG.
(d) A meeting has been arranged with Pathway
for the week commencing 16/3.
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4 The ATSG need to understand what the issues around the W Powney 18/11 Discharge.
3-5 group strands of activity are and how these impact on the D Smith * .
automation programme. This to be done by the February ATSG. See minutes on item 6.
5 The business case and the automation benefits should be DSmith 18/11 Further work supports the initial findings that on
revisited to assess the impact of preliminary work performed by current project designs sales data will take 6 days
Peter Charlton indicating that data will probably not be available to update SAPCON. However it should be noted
within SAPCON until days 3-6, due to the hardware processing that a single client, if viable, and the end to end
time. This could have a big impact on the commitments we can process work would significantly change the timing
make to clients and also on the viability of the business case. of data flows.
Carry forward to May ATSG,
6 Wendy Powney to discuss with Peter Dent the options Wendy 19/12 This will be addressed as part of the work required
around the delivery of POCL MIS. Powney to produce a baseline plan for May.
Carry forward to May ATSG.
7 Stuart Sweetman to nominate an appropriate member of Stuart 17/2 * Carry forward.
that team conducting the Lottery study to liaise with the TMT to Sweetman
enable impact assessments on the rest of the programme to be
performed
8 Dick Wheelhouse to ensure that the EFTPOS project Dick 17/2 Graham Siswick will be project managing
manager liaises with the TMT. . Wheelhouse EFTPOS.
Discharge.
9 Dave Smith and Paul Rich to discuss how to address the Dave Smith 17/2 Carry forward to April ATSG.
need for conformance and report back to the April ATSG Paul Rich
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10 A detailed business case and plan should be prepared to Dave 17/2 Carry forward to May ATSG.
support the single client development to be presented to the May Bhamra .
ATSG. The single client plan should does not adversely affect the TMT
delivery date for SAPHR (April 99) and the rest of the
programme.
11 A full feasibility study to be prepared on SAP retail for the Wendy = 17/2 Carry forward to May ATSG. ‘
May ATSG which may include a business case. Powncy
The feasibility study should consider:
¢ the group impacts and impacts on customers and suppliers
¢ the risk that there may be insufficient SAP experienced people
to support/ develop SAP retail.
12 A full business case on the end to end design to be Ruth 17/2 Carry forward to May ATSG.
prepared for the May ATSG taking into account: Holleran
(a) the implications on external factors namely, Pathway, BA, Ruth
subpostmasters and opportunities for negotiation identified Holleran
Mena Rego
(b) the impact of the end to end design on the Horizon roll out- Ruth -
plan and the training required Holleran
13 A service delivery approach to be prepared for the May DaveSmith 17/2 Carry forward to May ATSG.
ATSG that: .
¢ develops a first cut service development plan
¢ develops prioritisation criteria for client take on
© identifies the organisation and skills requirement
necessary in the service development team
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14 Pathway Lite: 17/2 POCL’s minimum requirements of Pathway Lite
(a) formal documentation should be obtained from Pathway Dave Miller have been identified and communicated to
describing Pathway Lite Pathway.
Formal documentation from Pathway on Pathway
Lite will be-beased on POCI minimum
requirements and is expected in April/
(b) a statement of POCL non negotiable requirements should be Dave Miller
produced for communication to Pathway and BA as a basis for Dave Smith
Pathway Lite. Mena Rego
Pathway Lite is on the April ATSG agenda.
(©) there is a need to identify the network impact of Pathway Lite Dave Miller
being installed in 3000 offices Jonathan
Evans
(d) there needs to be a communication on Pathway Lite Debra 17/2 Discharge.
Channon
There will be a minimum of communication on
Pathway Lite and this will be done within other
Horizon communication.
15 Aplan will be prepared to address the way the EPOSS Dave Miller = =—-17/3
design issues will be resolved
16 The TMT to work with ADS to ensure that the LFS Dave Smith 17/3
requirements are clearly and unambiguously stated TMT
17 The TMT to report back to the ATSG on progress with Dave Smith 17/3
determining the contents of release 2+. TMT
18 Resource issues to be filtered to Lesley Lawson and Peter Dave Smith 17/3
Turgoose, stating the numbers required, the skills required and the
timescales.
19 Acclear indication of Horizon dates to be provided forthe Dave Miller 17/3
April ATSG.
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20 The ATSG to be updated on the progress towards a Paul Rich = 17/3
contingency plan for Horizon.
21 The 98/99 budget to be revisited to ensure that the costs Dave Miller 17/3
of service management are included.
22 The project sponsors to report back to the ATSG through Project 17/3 Carried forward to June 98
the TMT on their proposals on the form of project assurance they sponsors/
will introduce. TMT
23 The TMT to provide the projects with a core approach to Dave 17/3
introducing project assurance, Smith/
TMT
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2:
ay
r ) TSG Progress Report
AUTOMATION PROGRAMME
Transformation Steering Group
Progress Report to 17 March 1998
i)
Contents Page
1. Actions from previous meetings 2
2. Key Programme Issues 6
3. Issues Log 7
4. Top-level Milestone Report . 10
5. Project Highlights Reports 14
Attachments
A. Minutes from last meeting 20
Automation Programme Printed : 3/13/98
TSG Progress Report
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17 March 1998 o
1. Actions from previous meetings
e
Action
Who When Update
raised
1 David Smith to discuss further with the interested parties
how the ISS resourcing issues can be resolved.
D Smith 23/9 Changes to ISS staff template have been agreed
and are subject to finalisation of the template for
next year.
Discharged.
2 Mena Rego was actioned to ensure that the requirement
for an additional field within reference data to allow all the
changes relating to a single event to be tagged to that event to be
addressed so that it doe not cause disruption to the programme.
MRego 18/11 Achange control note has been raised and is being
progressed. The commercial issue is being
discussed off line. Reference Data need to meet 15
March deadline.
Transfer to issue log.
3 The programme plan should:
(a) be presented to the ATSG once it has been baselined (January
98). Once the plan is baselined the chosen migration option
should be validated.
(b) Owners of uncertainties/ dependencies should be clarified to
ensure accountability for delivery.
(©) The plan should include the new Data Management project
(d) include dependencies of outcome of TIP/ Pathway synergy
work.
(©) track across the plan external commitments/ influences such
as Pathway negotiations, TIP commitments to suppliers and
commitments to SAP already made. Also to co-ordinate with
the plan the Mapec dates for projects re authority.
DSmith 18/11 The approach to delivering a basclined plan was
agreed at the January ATSG and this includes (a)
to (c). Due to report to ATSG in May.
Carry forward to May ATSG.
(d) A meeting has been arranged-with Pathway
for the week commencing 16/3.
Automation Programme
-2- Printed : 3/13/98
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TSG Progress Report 17 March 1998 >
oe
4 The ATSG need to understand what the issues around the WPowney 18/11 A meeting has been arranged between POCL IS
3-5 group strands of activity are and how these impact on the D Smith strategy and the TMT to work through the issues,
automation programme. This to be done by the February ATSG. there will be a report back to the ATSG in March.
Carry forward to March ATSG.
5 The business case and the automation benefits should be DSmith 18/11 Further work supports the initial findings that on
revisited to assess the impact of preliminary work performed by current project designs sales data will take 6 days
Peter Charlton indicating that data will probably not be available to update SAPCON. However it should be noted
within SAPCON until days 3-6, due to the hardware processing that a single client, if viable, and the end to end
time. This could have a big impact on the commitments we can process work would significantly change the timing
make to clients and also on the viability of the business case. of data flows.
Carry forward to May ATSG.
6 Wendy Powney to discuss with Peter Dent the options Wendy 19/12 This will be addressed as part of the work required
around the delivery of POCL MIS. Powney to produce a baseline plan for May.
Carry forward to May ATSG.
7 Stuart Sweetman to nominate an appropriate member of Stuart 17/2 Update at the mecting.
that team conducting the Lottery study to liaise with the TMT to Sweetman
enable impact assessments on the rest of the programme to be
performed
8 Dick Wheelhouse to ensure that the EFTPOS project Dick 17/2 Update at the meeting.
manager liaises with the TMT. Wheclhouse
9 Dave Smith and Paul Rich to discuss how to address the DaveSmith 17/2 Carry forward to April ATSG.
need for conformance and report back to the April ATSG Paul Rich
10 A detailed business case and plan should be prepared to Dave 17/2 Carry forward to May ATSG.
support the single client development to be presented to the May Bhamra
ATSG. The single client plan should does not adversely affect TMT
the delivery date for SAPHR (April 99) and the rest of the
programme.
Automation Programme -3- Printed : 3/13/98
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TSG Progress Report 17 March 1998
11 A full feasibility study to be prepared on SAP retail for Wendy 17/2 Carry forward to May ATSG.
the May ATSG which may include a business case. Powney
The feasibility study should consider:
e the group impacts and impacts on customers and suppliers
e the risk that there may be insufficient SAP experienced people
to support/ develop SAP retail.
12 A full business case on the end to end design to be Ruth 17/2 Carry forward to May ATSG.
prepared for the May ATSG taking into account: Holleran
(a) the implications on external factors namely, Pathway, BA, Ruth
subpostmasters and opportunities for negotiation identified Holleran
Mena Rego
(b) the impact of the end to end design on the Horizon roll out Ruth
plan and the training required Holleran .
13 A service delivery approach to be prepared for the May Dave Smith 17/2 Carry forward to May ATSG.
ATSG that:
e develops a first cut service development plan
develops prioritisation criteria for client take on
identifies the organisation and skills requirement
necessary in the service development team
14 Pathway Lite: 17/2 POCL?’s minimum requirements of Pathway Lite
(a) formal documentation should be obtained from Pathway Dave Miller
describing Pathway Lite
(b) a statement of POCL non negotiable requirements should be = Dave Miller
produced for communication to Pathway and BA as a basis for Dave Smith
Pathway Lite. Mena Rego
(©) there is a need to identify the network impact of Pathway Lite Dave Miller
being installed in 3000 offices . Jonathan
Evans
have been identified and communicated to
Pathway.
Formal documentation from Pathway on Pathway
Lite will be beased on POC] minimum
requirements and is expected in April/
Pathway Lite is on the April ATSG agenda.
Automation Programme -4-
Printed : 3/13/98
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TSG Progress Report 17 March 1998 >
(d) there needs to be a communication on Pathway Lite Debra = 17/2 Communication issue with Dave Miller.
Chaynon Update at the meeting.
a4) nowt
Automation Programme -5- Printed : 3/13/98
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TSG Progress Report 17 March 1998
2. Key Programme Issues this month
RED LIGHT ISSUES
There are three new red light issues this month. Two will be introduced verbally at the
meeting,
Resourcing
There is an increasing demand for resource particularly from regions. These demands
are not being met in the time necessary to enable programme requirements to be met,
such as testing and business assurance activities.
OTHER ISSUES
Communication
Information about the programme is appearing in the press which is not consistent with
information we produce for the clients, staff and agents. The APG is concerned that the
message “there is nothing to say” is becoming increasingly less credible given this
speculation.
leptin ten (an)
Automation Programme -6- Printed : 3/13/98
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eS
a
an?
Piel Progress Report
3. Steering Group Key Issues Log
Id Lastmeceting Issue Update Next Steps Owner
1. 29/7/97 Horizon re-plan In hand Dave Miller
There is a lack of clarity around the There is an agreed set of dates which has Mena Rego?
contents of release 2 and its timing. There _ not been converted into a commercial
is no agreed baselined Horizon plan which — agreement. °
makes it difficult for the backend Not all business requirements will be met
automation projects to plan with certainty. by release 2 as currently scoped. A release
: 2+ is being proposed to meet the necessary
requirements thereby enabling contractual
acceptance.
2. 22/4/97 Group IS Strategy - “TOFFEE” Ongoing. ‘Wendy Powney
Proposals from Group for consolidation of I When clear proposals are received from
SAP systems may have a substantial impact Group the impact on the POCL automation
on POCL programme plans. projects will be assessed. However there
are no clear timescales for these proposals
to be formulated.
3. 17/2/98 EMU A paper is being presented to the March Roger Tabor
Compliance with EMU requirements will I CEC which will include an appendix
have a substantial impact on POCL detailing a proposal for the conduct of an
automation programme. A statement of initial systems impact analysis.
POCL’s business requirements of
compliance needs to be produced to enable
impact assessment by the systems.
a
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Pied Progress Report ® © 17 un 1998
Id Last meeting Issue Update Next Steps Owner s
4. 18/11/98 An additional field is required within A change control note has been raised and ~— Discharge. Mena Rego
reference data to allow all the changes is being progressed. The commercial issue
relating to a single event to be tagged to is being discussed off line. The change
that event. This is necessary as not all control note has been agreed in sufficient
changes to data flows at the same time. detail to enable Reference Data to start
working towards a technical solution which
can satisfy the current release timescales.
3.1. Issues removed from this report
1. 20"May ‘97 —_ Central Business Units Implementation Programme and Business unit plans are
There appears to be a general overload now better inegrated and asa result there Discharge.
problem, particularly evident in RDC, in Thies jlen in le issues on resourcing.
resource pressures on TP, and in expediting Mr continue to be monitored by the
the migration planning work. .
2. 13"June‘97 Scope and boundaries of projects
Debates around migration options, legacy
systems ownership, and alternative
approaches to handling the balance of
functionality between ADS and SAPCON
are creating unproductive uncertainty about
projects’ scope and boundaries.
The route to achieving a baselined plan and Discharge.
thereby clarifying projects scope has been
agreed and this will be based on an agreed
business process model.
—
a9 Progress Report
&
@
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17 MMe 1998
3.
19 Nov 97
Resourcing
There are resourcing issues in TP, PRG and
IS Services.
Programme and Business unit plans are
now better integrated and as a result there
are no immediate issues on resourcing.
This will continued to be monitored by the
TMT.
Discharge.
a
Pe Progress Report
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17 umn 1998
4. Top-level Milestone Report
4.1 Milestones achieved
04 First 200 offices live I Complete roll-out of 200 offices and lessons learnt for POCL @® 30-Sep-97 30-Jun-97
(Stream A) implementation activities
B3 Automation Business I MaPEC business case produced and agreed and restructuring of projects ® Sept-97 July-97
Case complete
B4 Programme Automation steering groups in place and working well and TMT resourced @ Aug-97
G
management structures I by POCL employees
fully operational
06 Horizon Congo 4 Pathway’s BPS service and all BA and POCL activities are ready to be G 2-Nov-97
release authorised switched on in the 200 live offices @
O5 New BA settlement Testing and procedure walk-through demonstrates to POCL’s satisfaction x) 3-Nov-97 6-Oct-97
process ready that new plastic-card settlement process is ready to go live
Milestones achieved this month
B6 Start of Distribution Pilot I Agreement to proceed with ADS Pilot. Pilot region ready to proceed. 12-Mar-98 26-Feb-98
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TSG Progress Report 17 March 1998
6
Milestones removed
No milestones removed in this report.
4.2 Milestone report
Key
Traffic light conventions:
; Milestones for which dates have not been agreed will have a TBA under the date no traffic light shown
I Milestones for which there are firm agreed dates will show date in bold and underlined traffic light relates to due date
Milestones for which dates are generally accepted but not yet agreed, dates shown in normal characters traffic light relates to due date
cs
Key Milestone Activity Description bey Due Date Old Date
O7 Regions ready for a) National and regional implementation teams in place @ Jan 99
. Horizon
b) Regional plans for supporting task force developed @
G April 98
O8 POCL Release contents I Release prioritisation process agreed TBA 30-Oct-97
prioritisation process
agreed
O16 Pathway to POCL Testing between Pathway and POCL’s 3 systems (HAPS -Host A 1-May-98 15-Sep-
system testing successful } Automated Payment System, Interim TIP and Reference Data) completed ® 97?
successfully and indicating that EPOSS and APS well on track
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— Pe Progress Report 17 u@n 1998
= e
(e)
Key Milestone Activity Description Due Date Old Date
O9 EPOSS and AP Services I PDA demonstrates integrity of Pathway services and POCL’s accounting, Al 5-Oct-98 22-Dec-97
fully tested reconciliation and settlement process.
O10 Service management Service Level agreements and service management processes are in place @& Jan-99 31-Mar-97
ready and ready for live trial evaluation for release 2
O11 Horizon Nile 2 release a) Pathway’s full service and all BA and POCL activities are ready and A O Oct- 98 13-Apr-98
authorised full service authorised to go live
Jan- 99
b) Start of live trial
®
Olla Release 2+ authorised I Horizon release 2+ ready for implementation to enable contractual TBA
acceptance
O12 Live trial complete Activities to assess the acceptability of Pathway’s service complete. April 99 31-Mar-98
Authorisation to proceed with roll-out given. @
Gi
B2 Overall automation Plan agreed, including legacy systems interfacing/replacement, to A@® May 98 Jan 98
programme plan agreed I implement migration approach
BS POCL’s overall Test End to end integration testing strategy defined and end to end UAT agreed @ April 2000 Sep-97
Plan agreed to enable 6 month trilateral testing between the projects to commence
prior to all back end systems going live.
B8 Pathway Release 3 live I Pathway Release 3 accepted for go live TBA Apr-98
B15 Year 2000 Compliance work complete on all systems @ I Dec-98 NEW
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Key Milestone Activity Description Ss Due Date Old Date
B9 New accounting systems I Back end systems ready to operate new accounting + settlement x) Oct-2000 TBA
operational processes.
B10 Operational TIP Operational TIP developed, tested and ready to replace existing systems TBA
operational
B11 POCL-MIS Phasel POCL-MIS developed, tested, and ready for operation TBA
operational
B12 Distribution roll-out Final Cash Centre operating with ADS x) Nov 99 June-99
complete
B13 Final outlet live Pathway’s service available in every outlet AO Oct-2000 Dec-2000
B14 Migration complete IS Strategy systems implemented and all legacy systems replaced @ Dec-2000 TBA
WRG
TSG Progress Report
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5.
Project Highlight Reports
High Level Last Month Planned for Next Month
Summary
PDA Work continues to complete the Nile 2 replan. The Release Contents Pathway have raised the possibility of a Release 2+ to meet contractual
Description (RCD) is expected to be signed off on 3 March.
Following workshops held in December and January between Pathway
and sponsors it was hoped to finalise the high level plan at the end of
January, and from then on to monitor progress against the agreed
timescales.
Version 3.0 of the Release 2 Pathway High Level Plan was received by
PDA on
6 February for review by the 23 February. Pathway have incorporated
additional activities into Version 3.0 to make it more meaningful, and it
has been revised to bring it into line with CAPS’s planned testing
activities. The plan was released to sponsors and a mecting between the
PDA and Pathway was held on 18 February to review their comments.
The PDA working assumption for Nile 2 remains as follows:
= Pathway to continue to plan and work towards a 5 October 1998
software release date
= Live trial to commence January 1999
= National roll-out to commence April 1999.
An additional planning workshop has been held to confirm
CAPS/POCL/Pathway plan alignment in the event of fall-back to a
January software delivery, and this has highlighted potential additional
incremental options between October and January.
Progress against the Version 3.0 plan appears to be satisfactory at present.
Outstanding issues are managed through the checkpoint process.
Fortnightly meetings of the Strategic Implementation Working Group
have commenced. The purpose of the meetings, chaired by PDA
Implementation Co-ordination, is to review the high level Strategic
Implementation plan. This plan, currently being developed, will
encompass the key milestones and dependencies of the implementation
activities for this release, and which are common across POCL, CAPS and
commitments.
Discussions continue between the PDA, Pathway, CAPS and POCL on the
potential options for the timing and content of future releases, and of New
Release 2+ in particular. A workshop was held on 11 February to discuss
Pathway’s initial thinking in this area, and a working group is being
formed to progress a high-level plan and definition for the release.
The first Horizon Project Board, to be chaired by the Horizon Director, is
expected to be held mid-March.
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18 Progress Report 17 mh 1998
High Level Last Month Planned for Next Month @
Summary
ICL Pathway boundaries.
TIP © Draft functional specification produced for Operational TIP (Batch) ¢ Sign off of above documents
© Draft TIP Migration Options report produced for Operational TIP © Start of High Level Design for Operational TIP (Batch)
(Batch) © Start of DIT for Interim TIP
© Draft Technical Options Report produced for Operational TIP (Batch)
¢ Interface specifications reviewed and rework under way
Reference Data I System enhancements in Work Package Idelivered and in test (testing of I Work Package 1 release accepted and into support.
reporting database holding up the acceptance).
Reporting Database and associated reports implemented.
Work Package 2 content basclined; awaiting proposal; work commenced,
subject to contract. New server implemented in development environment.
Ttem/Outlet approach basclined and data load planning commenced. Contract placed for Work Package 2 release.
Change Catalogue data analysis completed and draft circulated for review I AIS Version 3.3 data drop to Pathway (31 March).
and comment (inc Pathway).
DIT! testing proceeding to plan, although some contingency has been
requested.
New Application Server ordered and scheduled for delivery by 3 March.
Use of project timescale tolerance approved by Project Board; project
extended to end April 1998.
SAP Con HR conceptual design and CLOUT proof of concept continues HR conceptual design and CLOUT proof of concept duc to be completed
Compcc authorisation for SAPHR obtained
ADS * PROJECT MANAGEMENT “Go Live”!
© The COMPEC took place on the 10 of February. ™ CHANGE MANAGEMENT
¢ CHANGE MANAGEMENT © Work will continue on the workstation layout.
e The first part of the training package covering keyboard and mouse Develop SAPADS appreciation course(s).
skills has been issued to the pilot sites. 74 staff trained 92% © User procedures being developed
considering that the package was excellent or very good. ™ HARDWARE PLATFORM
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High Level Last Month Planned for Next Month e
Summary
The CBT training package will be issued Monday 16" February. At
least two weeks elapsed time necded to take the pilot staff through the
modules.
The final phase of user acceptance testing (UAT) has taken place.
Classroom training is being designed for managers, and specialist
clerks.,
™ HARDWARE PLATFORM
Work continues on the platform. This is going according to plan.
Stress testing is now underway and IT are using this activity to validate
their planning assumptions.
There has been a lot of activity confirming the IT service costs
generated by the Single Client work. It has now been agreed that the
two systems will share the OS/390 platform on a proportional basis
(not equally). IT have reviewed their service costs as part of this
activity. we are now confident that a more realistic sct of costings has
been agreed.
The revised NPV is £ 3-8 m (from £ 8:2 )m.
m™ SAP IMPLEMENTATION
UAT completed successfully in terms of process cycle & script sign-
off. -
Waiting for final sign-off of:
+ Cash account - planned for 13/2/98 (Chesterfield)
= P16 & 20D reports - planned for 13/2/98 (Chesterfield)
- CFF reports - draft signed off by UAT 11/2/98
- G6301 with Giro.
Final preparations for production build in progress.
Still on track for 26" February but all activities now on the critical
path.
Inventory Management organisational analysis completed -
recommendations submitted to LBU management (sce agenda item)
PILOT IMPLEMENTATION
The LAN design for the PC configuration has been signed off by the IS
Group. This is a tactical solution pending the implementation of the
infrastructure strategy next year.
Cabling and power installation is completed in Hastings and has
commenced in Dartford.
© Build and populate production environment
© Complete stress testing
™@ SAP IMPLEMENTATION
© Obtain all outstanding sign-offs
Agree with IT & SAP on process to build production
Prepare for production build and implementation steps
Verify all data load
Complete all documentation
Prepare all audit reports for monitoring post-“go live” system.
for 1-2 weeks
¢ Hand-over SAPADS to Hastings
@ PILOT IMPLEMENTATION
Complete installation of Hastings
™ DATA LOAD
¢ Complete data load for Pilot
*
‘ a Progress Report
17 March 1998
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High Level Last Month Planned for Next Month
Summary
© Lots of problems ordering the equipment. Overcome but will need to
review the approach to this before any future volume purchase are
made,
™ DATALOAD
Loading the business data into SAP is making slow but steady
progress.
© The quality of the business data is variable.
¢ Progress has been slow due to the volumes of data.
AP Project Authority to proceed was given by MAPEC on the 11 Feb 98. First project board and working group mectings.
The draft project initiation documentation has been produced and the APT specification audited and change contro] documentation set up and
working group and project board are in the process of being established. agreed by POCL.
A letter of intent and APT specification documentation has been sent to Current APT tested for CE approval .
Keltek to progress work. Project plan and budgets established and agreed by project board.
The PDA (John Meagher ) has been approached to make use of Jeremy Terms of reference for Jeremy Folkes agreed with the PDA.
Folkes to act as a consultant to the project. Confirmation of offices to receive APT to the regions.
An early meeting with the PDA has highlighted that conflict may arise in
June and September 98 as surveys and modifications are completed for
both Horizon and APT projects. The main issue is that regions will not be
able to provide resource for both projects.
Year 2000 Summary Of Computer System Statistics (as at 20 February 1998) :- I Schedule of communications activitics developed and work in progress to
High priority / other 18 deliver to users by the end of April with advance publicity via “Your
Retired 18 (National Business” and “Talk Back”.
Comms has retired) - Complete a timetable for contacting supplicrs and confirming
Compliant (but need testing) 32 compliance in liaison with the relevant business areas and issuc letters by
Actions deferred 5 the end of March.
Being re-written 4 - UKPA; CACE(QPA); BBC TV duc to be tested in March
Transferred to IT 8 (Following ORBIT) I - Draft UAT plans up to June being agreed with the Users.
To be converted 51 - National audit to review Compliance Assurance registration process.
Converted 4 ABED, Bank of ~ Mentoring/guiding key Transformational Projects through the
Ireland, SIPS, Giro Change Compliance testing process.
Assurance - Develop Continuity/Contingency planning in light of Group
- Process to register and administer the Compliance Assurance of all requirements to deliver in March
existing systems plus the current and future developments and - Firm up plans for Test Bed use by the end of February
enhancements is being set up. This will be reviewed by National Audit. - Develop an action plan based on the KPMG recommendations
ns
. a Progress Report
17 Mh 1998
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High Level
Summary
Last Month
Planned for Next Month
- BRAG database now re-loaded and is being updated.
The Year 2000 Compliance of Current and Future Developments and
Enhancements has been widely distributed
KPMG Health Check
~ Interviews completed and draft report received. Actions to be discussed
at the February Project Board meeting.
Suppliers
- Ongoing management of Computer suppliers and monitoring progress
EMBEDDED SYSTEMS
1. Infrastructure Embedded Systems.
Of the 20% of systems subjected to a desk top compliance exercise 8%
had a date function and progressed to the next stage of compliance. A two
day exercise is planned at which 2000 security assets will be ERA tested.
The desk top exercise for all BES Embedded Systems is now completed.
Of this total, 30% have no date function and are certified Compliant.
2. Free Standing Embedded Systems.
Progress on arranging testing is going well although manufacturers
‘suppliers are slow to respond.
Both Chubb Alarms and Johnson Sccurity have both indicated non
compliance and testing is being arranged to both confirm non compliance
and prove the compliance fix (with Johnsons on 24/2/98). This equipment
is contained in every Logistics Operational Unit and the work required to
establish compliance will need considerable project management expertise
if the Logistics Operation is to feel no adverse effect.
3. General processes
+ The Property Compliance process for Embedded Systems is to be
reviewed at the Project Board
- The Compliance Certification process developed for Group-wide use,
has been agreed.
Client Take On
Client workshop held for A & L to identify way forward in light of delays.
Formal agreement made to progress Generics Project (including Financial
Services Market Analysis) and Service Development Approach (SDA)
within ADT.
This has resulted in a need within the ADT to refocus resource and
Client workshop for NS.
Development of Service Delivery approach, including workshops and
interviews.
Continued development of Generics Project, including formalisation of
‘
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High Level
Summary
Last Month
Planned for Next Month
identify a tactical plan for client management.
Generics - to date plan drafted and informal positioning to Pathway made.
SDA - draft plan & terms of reference drafted
As still no formal replan announcement, scoping of latest communication
to clients has commenced. It is intended that this communication will
attempt to manage down the expectations of when the replan will be
announced, since it is becoming difficult to constantly advise clicnts of a
date and then backtrack.
plan.
TMT
Completion of work on phasing of the automation programme
Presentations to February ATSG on end to end process design, service
development and phasing.
Workshops/ presentation of end to end process to process owners ,
business unit leaders,
Project business cases reviewed.
Draft paper on project assurance prepared.
Close working with ISSU for preparation of single client case.
Preparation of assumptions for revisiting of project business cases based.
on February ATSG decisions
Work on single client business case.
Translation of the end to end process work into a high level functional
specification to enable costing of the case.
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ge Progress Report
Appendix A Notes of meeting on 17 February 1998
Actions
Item 1 Improvement Opportunities
Traffic light report to be reviewed at the March ATSG.
Item2 Actions from last meeting
Sce attached Action Point Summary.
Item3 Red light programme issues
3.1 There were no new red light issues. Three issues were brought to the attention of
the ATSG, EMU, EFTPOS and Lottery.
32 (1) EMU
There was concern that this issue does not seem to be moving forward. It was noted.
that a paper on this subject is to be presented to the March CEC which will include
an appendix detailing a proposal for the conduct of an initial systems impact
analysis,
33 (2) Lottery
It was noted that there is a study led by Paul Rayner identifying options and
recommendations and that this team is due to report to Stuart Sweetman on 19/2.
Stuart Sweetman to nominate an appropriate member of that team to liaise with the
Action TMT to enable impact assessments on the rest of the programme to be performed. Stuart
Sweetman
34 (3) EFTPOS
The EFTPOS pilot should be integrated with the automation programme.
Dick Wheelhouse to ensure that the EFTPOS project manager liaises with the TMT.
Action Dick
Wheelhouse
3.5 Tt was agreed that all three issues should be added to the issue register to ensure that
‘we monitor their progress.
Item 4 Risk register
41 There were two new risks added to the risk register, namely increased errors and
lack of conformance, which are further explained on the attached risk register.
Tt was noted that non conformance is not a new risk to POCL but that the impacts of
4.2 non conformance are greater in an automated environment.
It was noted that
¢ itmay be worth benchmarking with a large retail organisation to see how they
achieve conformance
the retail line must drive conformance.
It was agreed that Dave Smith and Paul Rich should discuss outside the meeting
how to take this issue forward and report back to the April ATSG.
Action Dave Smith
Paul Rich
Item5 Introduction to presentations
SA Dave Smith introduced the presentations by putting them in context of the whole of
the automation plan and summarising how the deliverables from each strand of work
will affect the programme.
Item 6 Single client
6.1 Dave Bhamra gave a presentation on the single client work highlighting benefits of
single client and risks attached to it (single client involves combining the SAPADs
and SAPCON systems into one integrated system).
It was noted that:
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© one of the main advantages is the reduction in the costs of building the interfaces
and the costs of interface testing
© itreduces the risk of having large volumes of data through the interface
© it increases the impact on the business of system loss, currently if the distribution
system goes down the finance system will not be affected from a user's point of
view. However the single client is considerably easier to recover as there are no
complications of restoring the interfaces and identifying at which point the data
flow stopped.
e the SAP system was built to operate as a single client
© single client was not originally pursued due to the lack of a suitably sized
platform. However the introduction into commercial availability of the IBM.
S390 database server means that a suitable platform is now available. SAP,
IBM and IT services all support our single client development.
© as there were risks around the volumes and the system resilience but that advice
was obtained from SAP on the volumes etc and the single client can
accommodate that
© itis likely that SAP and IBM will provide POCL with expert support as this will
bea flagship project worldwide.
the single client business case will be prepared on an incremental basis from the
e current project business cases
. 6.2 The ATSG agreed that the single client is the preferred route for POCL.
A detailed business case and plan should be prepared to support the single client
Action development to be presented to the May ATSG. There is a need to ensure that the Dave Bhamra
single client development does not adversely affect the delivery date for SAPHR TMT
(April 99) and the rest of the programme,
Item 7 SAP RETAIL
ral Wendy Powney gave a presentation on the functionality of SAP Retail (presentation
slides to follow)
7.2 The following were noted:
© SAP retail is an overlay on the existing SAP systems
© The POS system could replace some of the TIP functionality
© SAP retail will need to work on Stock Keeping Unit (SKU) level information to
drive out all the benefits
«© ABIW Qusiness Information Warehouse) is available from SAP (with or
without SAP retail), which could provide some of the functionality required for
POCL MIS
Action The ATSG agreed to a full feasibility study being prepared on SAP retail which may Wendy
include a business case. Powney
It was agreed that the feasibility study should consider:
¢ the group impacts and impacts on customers and suppliers
¢ the risk that there may be insufficient SAP experienced people to support/
develop SAP retail.
Item 8 End to end process design
81 Ruth Holleran gave a presentation on the results of the end to end process design
identifying key benefits and impact on the business,
It was noted that:
«ifthe EPOSS system (which is based on ECCO) is rolled out to all outlets it will
cause a threefold increase in errors (this is based on work that has been done
comparing the number of errors made by ECCO offices to.the number of errors
made by manual cash account offices)
«the cost of the staff required to investigate incremental levels of errors is not
currently included in the Horizon business case.
the end to end process design implies a fundamental change to the way POCL
currently manages outlets ‘
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¢<° Progress Report
Actions
© achange in the legal ownership of cash by the outlets was considered but
rejected due to increased VAT costs. The design tries to emulate the behaviours
associated with ownership
«the end to end work requires a fundamental change to the front end, using the
system to drive data validation
© the end to end process work is consistent with the generics study which was
looking at how the front end system can be changed to enable speedy client take
on
© a fundamental change to the front end will have an impact on Pathway releases
and costs
the new process will enable the errors made by subpostmasters to be directly
linked to their pay, thereby facilitating recovery of monies due to POCL.
«this is yet to be approved by the APG as process owners.
Action It was noted that there are a number of external factors that will be influenced by Ruth Holleran
this work, namely, Pathway, BA, subpostmasters and that the implications for these Mena Rego
parties need to be carefully considered and opportunities for negotiation identified.
Action It was agreed that the impact of the end to end design on the Horizon roll out plan Ruth Holleran
and the training required should be considered.
Action It was agreed that a full business case on the end to end design needs to be prepared Ruth Holleran
e taking into account the above factors. The business case to be presented to ATSG in
May.
Item 9 Service development
91 Dave Smith gave a presentation on the current status of service development (see
attached slides).
Tt was noted that:
there is no overall agreed business approach to take on of clients
the business case does not include client take on other than contracted for
services
© an agreed approach to client take on can be build on the basis of the Bosco work
¢ Pathway costs need to be considered in delivering this capability
Action It was agreed that a service delivery approach will be presented to the May ATSG Dave Smith
that:
¢ develops a first cut service development plan
« develops prioritisation criteria for client take on
¢ identifies the organisation and skills requirement necessary in the
service development team
Item 10 Programme phasing
10.1 Elena Marsh gave a presentation on the results of the study on phasing of the
automation programme. This would involve delivery of back end projects 6 months
after Horizon roll out is completed (April 2001). This study was initiated as a result
of the pre-plan review.
The work involved a rework of the business case based on the in built delay and an
assessment of the effect on clients and income.
10.2 It was noted that some caution was necessary in drawing conclusions as the veracity
of some of the inputs could not be guaranteed.
10,3 Overall the feedback appears to show that whilst there would be some savings in
98/99 and 99/00 the overall business case would worsen and there would be a
difficult to quantify adverse impact through failing to mect client expectations.
10.4 It was agreed that phasing of the projects should be seen as an opportunity which
may be reconsidered in May but that there was no longer a driver to reduce costs
further in 98/99,
Item 11 Pathway Lite
M1 Dave Smith gave a presentation on Pathway Lite identifying potential impacts on
the programme plan (sec attached slides). It was noted that the scope of Pathway
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Lite was not formally defined yct but that it was a reduced version of full
automation.
11.2 The point was made that Pathway Lite would not deal with offices with no
electricity or telephone. It was noted that, were there to be a decision not to
automate all offices, this would trigger a full review of the automation programme
plan.
Action It was agreed that formal documentation should be obtained from Pathway Dave Miller
describing Pathway Lite.
Action It was agreed that a statement of POCL non negotiable requirements should be Dave Miller
produced for communication to Pathway and BA as a basis for Pathway Lite. Dave Smith
The POCL requirements should be based on the design principles used in the end to Mena Rego
13 end process design.
14 It was noted that it would not be cost effective to have two back ends, one to deal
with automated and one with non automated products.
Action It was noted that there is a need to identify the network impact of Pathway Lite Dave Miller
being installed in 3000 offices. Jonathan
e Evans
Item 12 Summary of the work strands
12.1 Dave Smith gave a summary of the work strands explaining how they will be pulled
together into business cases and a basclined plan.
12.2 It was agreed that the SAPHR project should examine the impacts of the project on
the subpostmasters contract.
12.3 The following were agreed agenda items for March ATSG:
Service Management
Impact of Group initiatives
Traffic light review
Project profiles
12.4 April ATSG:
Service Development
Pathway Lite
People/ change Management
Item 13 Communication and recognition
° 13.1 There needs to be a communication on Pathway Lite. Debra
Channon
13.2 Recognition:
Good presentation on the End to End process review (Ruth Holleran), Single Client
(Dave Bhamra) and programme overall (Dave Smith).
Item 14 Meeting review
Meeting well chaired
Good content/ structure of presentations
Good informative January minutes
Progress reports should not contain acronyms
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MARCH ATSG
RISK REGISTER
Commentary for information and comment by ATSG
A New entries
Financial failure of Pathway
This is one of the potential outcomes of current contractual negotiations with Pathway. The
business is working on identifying contingency solutions.
B Increased risks
Horizon roll out further delayed an duration extended
Pathway have issued version 3 of the release 2 plan and after close examination and review by
POCL there is a risk that the dates currently in the plan of January 99 for live trial and April 99
for roll out may not be met.
The plan is being further reviewed and contingency solutions based on new roll out dates being
identified.
Increased errors
This is a result of the now largely completed work on the end to end process design. The work
has identified that currently ECCO offices have a lot more errors than manual offices. The
current Pathway front end replicates ECCO functionality and an extrapolation of these errors has
indicated a threefold increase when the whole network is automated.
This risk has increased after further work on the impact of the current front end specification on
the programme,
Cc Non movers-
The rating for these risks have not increased/ decreased because the work being done to mitigate/
manage them is still ongoing. These are expected to reduce once the relevant work strands are
completed.
Note:
The ATSG is asked to consider whether there is a need for wide circulation (CEC recipients
receive ATSG papers) of the risk register given the sensitivity of some of the risks.
Elena Marsh 12/3/98
RISKS TO BE REPORTED TO MARCH ATSG
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Maximum score: 45
Note: Numbers in brackets show old scores
>= no movement
Ws risk reduced
= risk increased
Generic risk Risk Potential Impact for Automation I Action in Place ‘Owner I Likell I Impact ‘Scor I Action planning
category Transformation Programme. hood_IF EP a
1. Financial _I Financial failure of Pathway I © Lost confidence and © Contractual negotiations with I PRich I 5 33 3 I45
eee reputation Pathway
‘© Major cost to POCL of * Deep Pink (contingency
funding capital requirements planning) group
new entry tocontinue with automation
© Automation not delivered to
Programme plan timescales
© Project benefits lost
+ Loss of clients
2_strategic__I Horizonroll-out further a) project impacts ‘managed through PDA/POCL I DMiller I (4 [3 3 2 I @2) I« aligningof
~~ I delayed and duration loss of credibility with clients Horizon arrangements @) (24) programme with
extended (from January 99 and staff * Contingency plans being 5 40 account teams client
live trial and April 99 roll increase in complexity of cut- developed as part of taken on plans
cout) over to new accounting and ‘Transformation programme ‘* management of
settlement systems migration planning communications
b) programme impacts * ADS project assessing potential © further review of
© delays to all projects for further decoupling from plan
» © benefits not delivered to HORIZON to protect benefit © identification of
clients as promised delivery contingency solutions
© project benefits lost © realistic timescales for
implementation are being fed
into the business plans
«rollout date agreed by the
sponsors
\
03/13/98
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ASSURANCE ON THE AUTOMATION
PROGRAMME
PROJECT ASSURANCE.
PRINCE 2 METHODOLOGY
Project Board Members do not work on the project and must place a
great deal of reliance on the Project Manager who is responsible for
reporting progress. However it is the Board that bears overall
responsibility for the Project being delivered on time, in full and to
budget and there is therefore a need within the Project organisation for
independent monitoring of all aspects of the projects performance as a
safeguard. This is project assurance.
Under Prince 2 Methodology project assurance functions should be
identified by the Project Board at the Initiation stage of the Project so
that resource usage and costs can be managed.This requires an analysis
of what aspects of the project need to be assured. Within Prince a range
of these are suggested but significant ones are likely to be:-
* Adherence to Business Case
* Adequate liaison with and instruction of the Supplier
* Risk Management
* Compliance with Business standards ( Quality,Security,
Technical )
* Compliance with legislation
- * Technical assurance
* Fit with Programme/Business strategy
* Requirements v Solution management.
There is no stipulation of how many assurance roles there should be.
These will vary according to the size, complexity and nature of the
project.
Having decided in what areas assurance is required Project Boards
should determine how that assurance will be given. For example a
suppliers work standards could be assured through a requirement for ISO
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9001 certification. Financial assurance through scheduled audits,
technical assurance through use of an independent technical contractor.
Project Assurance roles can be delegated; however the work should be
commissioned and supervised by one or more members of the Project
Board as the Project Board retains accountability. Any delegation should
be documented and Assurance issues should be a Board agenda item.
The overall abiding principle is that the Project Board cannot delegate
any of its assurance responsibilities to the project manager.
CURRENT STATE OF PROJECT ASSURANCE ON AUTOMATION
PROJECTS.
Prince methodology is not fully deployed across POCL and many of the
current projects were set up before Prince was introduced as the
methodology of choice. The scoping exercises described above expected
of Project Boards have therefore not been carried out and there is no
Project Assurance in place being managed independently at Board level.
This means that the Project Boards are not getting independent opinion
about the health of their project against pre-determined criteria.
The consequences of this lack of independent control has already been
demonstrated by the need to initiate the Reference Data Enhancement
Project after the Project Board had accepted a hand over document which
overstated the level of completeness of the project. When taken into
service it was found that the original project deliverables were not
complete nor fit for purpose and that the project had not delivered its
original objectives.
QUALITY SYSTEMS AND QUALITY ASSURANCE.
PRINCE 2 METHODOLOGY
It needs to be understood that Project Assurance and Quality Assurance
are different. Within projects Quality is a matter of assessing what it is
about the projects component products that makes them fit for purpose
and measuring the development and production against those defined
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requirements. This should operate at a lower level and in a different way
to Project Assurance. Under Prince 2 methodology the following
component should be established within the project environment
encompassing all the project management activities:-
* A Quality System.
This is an organisation structure and procedures which implement the
management of Quality within the project.
* Quality Planning.
This establishes the objectives and lays out the activities necessary to
ensure that customer requirements are established for each product
and measurement put in place. This should be done at project
initiation and the Quality plan should be part of the overall project
plan so that progress can be monitored by the management team.
* Quality Control.
This is the means of ensuring that products meet the agreed criteria
through some form of examination, the nature of the examination
depending on the nature of the product.
* Quality Assurance.
This is the deployment of the totality of the Quality System and is the
means of ensuring that the end products meet customer requirements.
CURRENT STATE OF QUALITY ASSURANCE ON AUTOMATION
PROJECTS.
Each of the projects has established what is mostly being described as
Quality Assurance. Approaches range from the employment of specialist
expertise in a Quality Assurance role to oversee the work of the supplier,
through the use of the the suppliers own Quality Assurance process, to
internally managed walkthroughs and reviews as part of the sign-off
process.
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Across the projects however:-
* There is no common approach to Quality Assurance and a lack of
common definition of what this should comprise evidenced by the fact
that all the projects are doing it differently. This is probably because
there is no consistent deployment of Prince, and prior to the
introduction of Prince there were no laid down Business standards
which projects were required to follow.
* Itis likely that overall there is insufficient Quality Assurance
on any of the projects. This assumption is based on the premise that as
between them the projects have identified a range of potential areas
to assure, but none of them have identified or are assuring all of them
when the projects are mostly similar in nature.
PROGRAMME ASSURANCE.
There are some activities being carried out by the Transformation
Management Team which are providing elements of Assurance.
* The end to end work is, amongst other things, assuring that the
combined systems being automated will deliver transactional
integrity.
* The technical integrity work being carried out is ensuring technical
compatibility across the programme and considering overarching
requirements such as contingency.
* Migration planning and programme planning are providing co-
ordination and linkage between the projects; and
* Business Case management is providing financial management
of the overall Programme.
This overarching control is however focused on secure deployment of
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the totality of the combined systems with the ultimate aim of ensuring
that end to end Business processes remain intact through the migration
stages and into steady state. It does not constitute project assurance.
THE WAY FORWARD
Quite a lot of water has already gone under the bridge. If Project
Assurance is to be instated at this point a series of activities will now
need to be carried out:-
* Project Boards will need to perform the retrospective exercise of
identifying key elements to be assured on their projects.
* They will then need to agree on how this assurance will be obtained,
take individual or collective responsibility for putting it in place
independent of the Project Managers and make budgetary provision.
If the budgerary requirements are significant across the Programme
the ATSG will need to commit funds at a Business level and costs will
need to be taken into individual project, and the automation
programme, business cases.
* Boards will then need to ensure that progress is reported back at Board
level and take action where projects are not meeting standards.
As the Projects are similar in nature, i.e. they are mostly large technical
infrastructure replacement projects this would imply that a common set
of Assurance requirements could be determined. There may be some
merit and economy of effort in establishing a Business standard for
technical projects for the projects to implement as a minimum.These
should be developed and introduced by ISSU.
Once individual Project Assurance expectations have been set by
project boards there are two possible approaches to instating this within
the Programme.
* Conformance to Prince, with Project Board members taking direct
responsibility for supervising Assurance work.
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* Given the number of Projects and the other commitments of Board
members to devolve control of Assurance activity into the
Programme Management environment. It would remain the
responsibility of individual Boards to define their requirements and
make budgetary provision and take action in relation to their Projects
in the light of results. This partially devolved approach would be
consistent with the rule of keeping Project Assurance independent of
Project Management.
* If conformance to Prince is required of the individual projects,
Project Boards will need to invite individual project managers to
review Quality Systems within their domain and report back to
Project Boards on their level of conformance and measures necessary
to achieve complete conformance. Project Boards will need to decide
upon the adequacy of arrangements in place and agree action if these
are insufficient. Alternately, Project Boards may wish to commission
independent reviews as part of their own Assurance activity.
THE BENEFITS
The advantages of introducing improved assurance procedures are:-
* Financial.
Although there will be increased cost in the short term, financial
savings will be made in the medium to long term as the cost of
corrective action, as exampled by the Reference Data Enhancement
Project will not be necessary. This is effectively the Cost Of Quality
(i.e. the cost of not having it ) and it cannot be quantified.
* Conformance.
If the Business wishes projects to use Prince 2 it should support
and encourage deployment of it.
* Systems Integrity.
The suite of projects making up the Automation Programme is
simultaneously replacing and redesigning all of the key elements which
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comprise the operating process and accounting systems of the
Business. If any of these are not fit for purpose, the whole may not
function adequately. There could be significant damaging
consequences for the Business as a result.
* Overall programme delivery
The projects have a range of mutual dependencies and the
synchronisation of them is essential for delivery of benefits and
successful migration management. Quality failures lead to delay;
delay to one project could lead to delay of the whole programme.
Janet Topham
TMT
9 February 1998
Fit with Group IS
?
Strategy
aa
Wendy Powney
Head of IS/IT Strategy “>
2 Post Office Counters Ltd Slide 1
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° I
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ae See cece eee ee
POCL Single Client
¢ POCL Single Client Feasibility Study
endorsed by the ATSG
¢ Business Case in progress
encompassing SAPCon, SAPAD
SAP HR —
¢ SAP Retail to be incl :
part of the Single Cliey
¢ Initial outcome appr b
2 Post Office Counters Ltd Slide 2
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I Cs ee oom e
Group Single Client
¢ Group IS have created a vision for
a business-wide Single Client:
~ POCL, SSL, POSG and PF
* Directional piece of work being
presented to the TSSG today
“
2 Post Office Counters Ltd Slide 3
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(Eee SaaS a
SAP HR
¢ POCL to lead the SAP HR Project
on behalf of Group
* Scope agreed with Group HR
¢ Implemented by April 1999
: *
2 Post Office Counters Ltd Slide 4
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a aS I
TIP/IMP
¢ TIP Project (& SEMA) agreed to
evaluate the commonality of
functionality between the TIP &
IMP Projects
¢ Strategic technical design
principles must be followed to
support both POCL &Group Valugma
Added Services requirements:
- Hub and spoke architecture
“
ee Post Office Counters Ltd Slide 5
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Se EST 0 avers ye PUN Sar ACE SRA 2 a >
Purchasing Project
¢ Ist phase - to place all contracts
through SAP
¢ 2nd phase - to perform all
purchasing through a single Post
Office wide system
e 3rd phase - to switch off
purchasing within the businesses
¢ POCL impact assessment to be
completed - although likely
@ impact is small
Post Office Counters Ltd Slide 6
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To Summarise
¢ POCL are working closely with I
the Group IS Strategy Team to
ensure alignment to and co-
ordination with Group IS
requirements I
¢ Long term plans
ee Post Office Counters Ltd Slide 7