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GLO I Organisational Design
August 2020
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Case for Change
There is a pressing platform for change to pull out the GLO activity across the business and consolidate it into a single
‘Historic Matters’ business unit. There are three core reasons for this:
4. Centralised View: To consolidate the activity currently dispersed across the business under ‘one roof, ensuring more
efficient and proper project management, governance and operational support for the GLO and related projects from
end-to-end.
2. More Independent View: To provide a more independent and detached view of the GLO and related projects than
previously provided and allowing proper challenge to the business where necessary by splitting it out from the other
GE function, with the GLO Director dual reporting to CEO and the Chairman of the Board to ensure this.
3, Return to BAU Focus: To allow colleagues working partly on the GLO (e.g. <75%) to return to their BAU roles with
renewed focus, avoiding any competing or split priorities and for CEO and GE to run BAU and develop the business.
4. External View: to be established of BAU now and in further to ensure the culture and practices prevent this ever
eceurring again;
In light of this, some key principles follow:
* The scope is already agreed that all work relating to and of a result of the GLO and other judgements are to be
included in the BU, including Stamps (~15 projects);
* Starling yet to be determined if HM or BAU;
* People currently working >75% of their time should transfer across; this to be managed and coordinated by POL OE to
tie-in with other OE work already in plan; gaps to be identified and resourced
* Additional internal resources will still be required (as necessary) most notably Legal Counsel, Comms ete, but where it
would be wholly inappropriate to have a different view than that POL generally it will remain part of BAU.
* This needs achieving within a wholly commercial perspective, to ensure faimess to PMs and the tax-payer Q
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Historic Matters Business Unit (1/2) Reporting
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High-Level Costing
The estimated fully-loaded staff cost of the GLO / Historic Matters business unit is 6.22m annualised, with a
further 0.33m annualised in part-time, matrixed costs from other functions.
Roles See 20m In Year Cost
: Beating Rew eating New, Exit RecrulmentI
GE Function Workstream EEN? ne Ree Bet URE ew noied het .
Com tessentpant' I" 291] a0 I odom 009m I 058m I 020m acim I o2tmI corm
Gi0-Operatons I 266 © 10 I 276 I 165m tam I 177m] 065m 005m I 070m] oOtm
cio-praanme I 107 100 I 207 I 120m 084m I 204mI 049m oa7m I 086m I 0.1m
cio GLO- Legal 10 20 I 30 I or7m 029m I 046m} 008m 016m I 022m I 003m
ctor - 80 I 50 I - oramforamI - atm I o3tm I 009m
610- comms oe 10 I 12 I osm 009m I 020mI 004m oom I 008m I 001m
G10- Finance 30 30 I 034m 034m I 017m 017m I 0.05 m
GLO- People - 10 I 10 I = c09m JoosmI = o04m I 004m} corm
Total 431220 I 651 I 390m 226m I €22mI 162m 100m I 262m I 031m
Waived GLO Gio. Mauna 4 I ta [osm - _[oasmIotam - [orm] -
Total 445220 I 665 I 420m 226m I 655m I 175m 100m I 275m I 031m
‘Assumptions: -In-year assumes the stuctur is stood up on 15/09, with most new roles starting 30/10, in alignment with OF POM timelines.
That the existing x2 Legal secondments are brought in-house,
All new roles have 18% recruitment costs attached
*5 matrixed rol
*Comms Lead role FTE and costs reflected in ‘GLO ~ Matrixed' ine (see slde 3)
‘Team Support in Programme Management counted in ‘GLO ~ Supportline.
@ ecuivalent to 1.4 FTE in total and costs assume relevant % of time / costs from each of five roles (see slide 3),
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People Principles
Lift and Shift: Any roles across the business that are already project funded by GLO should
be ‘lifted and shifted’, such that reporting lines would change without any related changes to
employees’ terms and conditions.
If we are proposing that roles move into the Historic Matters business unit and they are not
current project funded / fixed term, we may need to consult them on the change to terms
and conditions. HR due diligence will be applied before reporting line changes, facilitated
by OE.
~ Back-filling of transferees has already been absorbed or will be included in the other OE
work and due diligence.
New Roles: Any new roles in the business unit to be advertised on SuccessFactors for 1 week
to encourage internal applications.
Alignment with OE: Any People changes to occur in alignment with Tranche 1 timelines of
OE’s Post Office Operating Model (POM) changes, to ensure consistency in communications
and ensure organisational changes are as smooth and seamless as possible for employees.
Internal Talent: Where possible, to utilise internal talent and legacy knowledge, ensuring we
leverage the existing skills, talent and experience in the business
Developing Talent: Related to the above, to develop and progress our talent working within
this business unit, with a view to shape the future of the business in the longer term.
Change FTE: Assumed that any Change resource will come over fully from the business unit
and be fully embedded, rather than being matrixed in, and retum to Change BU when no
longer required, with HR implementing any change. @
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Governance and Key Roles
Attendees
i CEO GLO Director
Internal Audit
To update and confirm Monthly with weekly update
decisions {noting CEO attends
SteerCo)
To test and confirm ‘After budget established
Financial management and and ongoing as necessary
assumptions.
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Governance and Key Roles
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‘Overall responsibilty
‘Graham Hemingway
Roderick Wiliams:
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received and instructions given
Responsible for all internal and external communications, particularly the Government stakeholders,
‘media and all past and present Postmasters
To create Horizon-specific IT Capabllty such that Post Office can take full ownership of the
management and control of our IT system
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Financial Governance
Establishment of this separate business unit will encompass a commercial FD to manage and control the overall bu
and a Programme Accountant (with the relevant experience) to manage the finances of each project but principal
external resources (legal and consultancy); both reporting to the GLO Director. This revised budget presented here
further scrutinised by the incoming FD and Programme Accountant.
As this unit does not generate income it will always be only a cost centre with no measurable investment case an
no internal rate of return or any other measure. This is work that has to be done and the responsibility is to manag&the
entirety including sensible, pragmatic commercial control to ensure fairness for Postmaster and with a proper regard
all stakeholders recognising that this is tax-payers’ money.
The budget will always be a range, and the range will often remain unclear because the scope of work is continually
moving and decisions by PO and (mainly) others will effect the volume and complexity. [For example the HSS will likely be
in excess of 2,000 claims; a Judicial Review was served upon PO this week; other issues discovered as part of this remit to
“Shine a light back on Post Office BAU now” has already and will undoubtably continue to add additional work.}
The final presentation of this budget will calendarize this per project and be reported upon each month for the Board and
stakeholders, as required. There will always be a huge element of financial risk and a 10% - 20% variance range should
be recognised. It will be tightly managed, reported and discussed regularly and open to internal and external audit as
required.
PO's existing procedures will be followed for procurement but, for clarity, projects will not be subject to Investment
Committee approval (as the work is not an investment and sits outside BAU).
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Programme Workstreams (1/3)
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Programme Workstreams (2/3)
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Programme Workstreams (3/3)
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