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08/2006
Agency Changes Communique
To: Contract and Service Managers cc Jackie llesley
Heads of Area Service
Relationship Team
Heads of Sales George Hooper
SAMs / RSMs
From: Carola Ramsden Date: 15 February 2006
Restrictions Manager
Subject: Corrective Action for agents - Process, Timescales and
Letters
1. Introduction and Purpose:
Our ability to offer friendly, personal, face to face service gives Post
Office® branches a unique identity. The cornerstones of our brand are
to be fair, accessible, commercial trusted and straightforward. The new
sales and service standards seek to clarify our expectations of
subpostmasters and their assistants in achieving business goals. It is
vitally important that subpostmasters make every effort to meet these
standards, in order to retain customers who have an ever-increasing
choice of going elsewhere for their business.
The last two years have seen a significant shift in the direction and
culture of our business, and although many subpostmasters have
committed to the new reality, there are still some who have yet to do so.
There are various ways we can support subpostmasters, to help them
embrace the changes and challenges the business faces, although for
some this will be both difficult and stressful.
The purpose of this ACC is to provide: (i) a process, and (ii) supporting
documentation, so that Sales Account Managers and Contract and
Last Communique: 06/2006 ( R) Automated Postal Orders!
07/2006 ( R) Post Office Paystation
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Service Managers are able to:
Objectively identify room for improvement
Put in place appropriate remedial actions
Monitor progress
Take appropriate contractual corrective action, should there be
no progress
The most cost-effective outcome from these actions will be that a
subpostmaster improves his/her performance, and he/she becomes an
active participant in our sales culture. However the business
recognises that not every agent will be willing - or able - to adapt to the
new environment. In some case this will mean that some
subpostmasters ultimately may want to leave the business and sell
their branch. In the most extreme cases, Post Office Ltd may decide
that we have no choice but to end the relationship with subpostmasters
who simply will not, or cannot, make the transition to the new culture.
This ACC also contains guidance on dealing with such cases.
2. Underperformance
In today’s increasingly competitive business environment, non-
compliance in all branches must be challenged and performance
improved. In particular, the Sales Account Manager managed
branches are the economic engines of our business, and our long-term
survival depends upon the agents at these branches being active
participants in our sales culture.
Unfortunately there will be occasions when subpostmasters fail to meet
the performance standards set out by the business. Examples of
underperformance would include:
e Poor customer service;
¢ not properly maintaining their premises to support Post Office
Ltd’s +1 Standards;
¢ accounting errors, which generate [frequent] transactions
corrections;
e repeatedly providing inaccurate or incomplete information on
products /services during Mystery Shopper visits results,
e noncompliance or non observance of rules;
e failure to improve operational performance to the required
standard;
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e failing to implement actions on +1 service measures;
e failing to pass knowledge on to staff;
e failing to implement training for counter staff in sales skills.
The examples listed above are by no means an exhaustive but once
evidence of underperformance at a branch has come to light it is
important that appropriate steps are taken to notify the subpostmaster
of his/her shortcomings.
3. Corrective action
As a reminder, there are a variety of actions that make up the various
strands of the Corrective Action process. These actions are:
Performance Discussions (Oral Warnings)
Written Warnings
Termination of Contact by Three Months’ notice
Precautionary Suspensions
Summary Termination
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3.1 Performance discussions
Performance discussions are used when weaknesses are identified
within the Subpostmasters ability, or behavioural attitude, with a view to
improvement before they get out of hand. There is no limit to the
amount of times in which you can conduct performance discussions,
which is dependent, to a very large degree, on the nature of the
occurrence. Clearly you have to take account of all the operational
problems the subpostmaster may be experiencing, and offer any
support - e.g. training, coaching, role modelling, or shadowing.
3.2 Written Warnings
If, however, the problems persist, and if you think that the
subpostmaster is either not keen to improve, or cannot, then you need
to progress to a more formal structure - i.e. a Written Warning. This is
the preferred approach, where Performance Discussions have had no
effect and when termination of contract may look like being an option.
Please also note an offence may be so severe that a written warning
could be the first stage of corrective action.
3.3 Termination of Contract by Notice
Termination of Contract by Post Office Ltd should only be used when
you have sufficient written evidence of: (i) the subpostmaster’s
underperformance; (ii) the steps taken to bring it to their notice; (iii) the
agreed actions to resolve, and (iv) failure to improve.
Termination of Contract with pay in lieu of notice should only be used if
you suspect there is a real threat to the safety of Post Office cash and
stock.
Although Performance Discussions may have been held and diarised,
legally, they cannot be relied upon as a basis of termination at a later
date.
You should also note that the Three Months Termination process must
not be used as a means to avoid the Summary Termination route and
its associated appeals provisions.
3.4 Precautionary Suspension and Summary Termination
In dealing with subpostmasters who are failing to meet the performance
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standards required, it is highly unlikely that there will have been a
breach of contract sufficiently significant for this course of action. It is
the case that such procedure will most likely be followed in
circumstances when there is evidence of dishonesty or other material
breach of the contract for services.
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4. Tackling Underperformance
The matrix attached as Appendix 1 tabulates the most likely range of
issues and remedies.
Many of the Service failures at branches _ such those involving
accounting matters or customer complaints - are already being reported
to the Contract & Services Managers by means of management
information from other teams within the business. The Contract &
Services Managers will continue to ensure that remedial actions are put
in place and performance discussions held with the subpostmaster, to
address the gaps via an Area Intervention Manager visit.
4.1 Sales Account Manager Responsibilities
Where there are clearly either sales or retail standard issues in a
branch, these may not be picked up by centralised management
information systems and so the Sales Account Manager will need to
begin the corrective action process. (See appendix 3 and 4 for the full
mapped processes)
When a gap in performance has been identified it should be discussed
fully with the subpostmaster. The Subpostmaster must be offered
appropriate assistance in terms of coaching, training etc. and every
effort should be made to understand what issues might be causing the
non-conformance. The subpostmaster should be given a proper
opportunity to explain why the gap in performance has occurred and a
realistic timescale for improvement agreed and noted on the branch’s
action plan. Deployment of the agreed improvement should be checked
by means of a further visit by the Sales Account Manager or mystery
shopper. Where the improvement action has not been deployed, the
Sales Account Manager needs to review the performance gap and
either raise the matter directly with the subpostmaster again, or where
there is sufficient documentary evidence refer the matter to the
Contract & Services Manager.
To ensure sufficient documentary evidence to support further
contractual action, the Sales Account Manager should ensure that all
gaps have been recorded, along with the actions agreed to remedy the
gap and any remedial training /coaching provided. The evidence
provided to the Contract & Services Manager should be: (i)
comprehensive; (ii) factually correct, and (iii) objective. A sales action
plan (Appendix 2) should be used to document the discussions and a
copy left with the Subpostmaster
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4.2 Contract & Services Manager Responsibilities
On receipt of a case from the Sales Account Manager, the Contract &
Services Manager will then review the evidence to ensure it is sufficient
to instigate the first level of contractual action. If the C&SM determines
that further evidence is required before nay corrective action can taken,
the SAM must be informed and the reasons why the evidence is not
sufficient given.
Depending on the response from the subpostmaster, the Sales
Account Manager will be informed either: (a) that the agent will comply
(and therefore further monitoring will be needed), or (b) that the agent
refuses to comply (and the next stage of corrective action will therefore
need to commence).
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Prior to any interview the Contract and Services Manager should
discuss the case with the Sales Account Manager to ensure that they
are fully aware of the background. In some cases where the issue is
associated with the physical environment in the branch, it may be
advisable for the Sales Account Manager to attend the interview.
(Appendix 5 8 Standard letters)
5. Conclusion and Contact
By adopting the processes outlined in this ACC, Sales Account
Managers all be able to instigate corrective action in a consistent and
timely fashion across the network. A flow chart of the process is
attached as Appendix 2, with the standard draft letters to be used as
Appendices 3 to 6.
Should you require any further advice or clarification about this issue,
please do not hesitate to contact me at the number below.
Carola Ramsden
Restrictions Manager
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APPENDICES
1. Standards
pal
matrix.doc
2. Sales Action Plan ce
"Subpostmaster
Sales blank Action PI
3. Corrective action process map i)
for Agents "Network
Service_Corrective Ac
4. Corrective action process map i)
for Multiples and Franchise iano
Service_Corrective Ac
5. 1% stage - written warning ey
"Stage 1 v1.0.doc"
6. 2" stage - Invite to interview,
consideration of terminating
hi
"Stage 2 v1.0.doc"
contract
7. 3% stage termination of i
contract by 3 months notice “Stage 3 vi.0.doc"
8. 4" stage next steps and sale
of office "Stage 4 v2.doc"
&