POL00199737
POL00199737
@
Initial Complaint Review and Mediation Scheme
Programme Board
17% January 2014
©)
COMMERCIAL IN CONFIDENCE
POL00199737
POL00199737
Agenda 2)
1. Programme Director's Update
2. Terms of Reference
3. High Level Success Criteria
4. Performance Dashboard
5. Key Risks and Issues
6. Financial Outlook
7. Early Settlement Criteria
Decisions for this meeting
Agree the terms of reference for the Programme Board
Agree the high level success criteria for the programme
Agree mitigating actions/resolutions for escalated risks & issues
Consider/agree the budget and the resourcing proposal
Approve the early settlement criteria
Approve the communications plan (in correspondence by 24 January)
©)
COMMERCIAL IN CONFIDENCE
POL00199737
POL00199737
1. Programme
Beane Terms of Success Performance \ Key Risks Financial _@
Pogais Reference Criteria Dashboard & Issues Outlook Settlement
Delivery & likelihood of success Trajectory
Overall the scheme is stabalising with a firmer grip on facts and data, however
there is still a lot of work to be done to mitigate the risk the Scheme poses to
Post Office’s reputation and business (through the quality of our administration,
investigations and delivery).
¢ Administration — a full review of the Scheme’s administration is almost complete.
This has brought to light issues with purchase orders, payments, correspondence
dispatch and logging and the approval of advisors
* Governance - first programme board meeting today, resources for programme not
yet confirmed, revised risks and issues management in place, process mapping
and documentation ongoing
¢ Stakeholders — relationship with JFSA and Second Sight in a challenging phase
as we seek to agree engagement terms with Second Sight
¢ Legal — revised support model with Bond Dickinson in place
¢ Risk — programme is very high risk - including a high risk of delivery failure
@)
COMMERCIAL IN CONFIDENCE
POL00199737
POL00199737
Terms of Reference 2)
Programme
Director's
Terms of Success Performance \ Key Risks Financial \ Early
Reference Criteria Dashboard & Issues Outlook Settlement
Frequency Chair & Secretariat Core Membership.
* Fortnightly * Chris Aujard, Chair
* Nicky Mal, Secretariat
Fay Healey (NED) Belinda Crowe, Angela Van-Den-Bogerd, Charles
Colquhoun, Andy Holt, Rodric Williams, Andy Parsons, Sophie
Bialaszewski, Jess Barker, Max Warren, Nicky Mal, David Oliver, Ben
Maddison, Caroline Culver
Objectives
* To provide the overall direction and management of the programme + Programme Board reporting pack
+ Key management information from case tracker
+ Escalated risks or issues for review
+ Draft deliverables for sign-off
puts
+ Agree key programme artefacts including the programme plan and + Agreed programme artefacts
comms plan + Signed-off programme deliverables
* Ensure the appropriate coordination across the projects that + Agreed mitigating actions for risks /resolution to issues
comprise the programme + Agreed escalations to ExCo
* Reviewing/signing-off deliverables + Success criteria for the programme
+ Review civil and criminal cases + Minutes and actions
* Define acceptable risk profile and risk thresholds for the programme
& its projects
* Resolve issues between projects, which need the input and
agreement of senior stakeholders to ensure the progress of the
programme
* Own the resolution of risks and issues that the programme faces
* Ensure resource availability for programme activities & resolve
conflicts
+ Resolve dependencies across programmes
* Define the success criteria for the programme
+ Review programme budget every month
* Ensure the programme complies with Post Office data security
policies
+ Ensure suggestions for improvement/themes arising out of the
programme are fed into the Business Improvement programme and
vice versa 4 J
COMMERCIAL IN CONFIDENCE
POL00199737
POL00199737
3. High Level Success Criteria
Hee” Terms of Success Performance \ Key Risks Financial arly
Reference Criteria Dashboard & Issues Outlook Settlement
Short-term Medium-term Long-term
Post Office is seen as a fair partner which values its
agents and handles their complaints fairly and
efficiently
Trust in Post Office as a brand enhanced to
support expansion of products in line with
2020 strategy
Wider strategy not undermined by loss in
confidence in Post Office as a brand and
franchise partner.
+ Reputation enhanced
+ Strategy delivery augmented
+ MPs supportive of Post Office
+ Subpostmasters energised and engaged
Second Sight engagement satisfactorily completed
+ Good value for Tax payer achieved
New complaints scheme in place
New prosecution policy and intervention policy implemented
+ AllScheme complaints resolved
+ Ability to attract high quality Subpostmasters increased
Bayens JOpIM
Reputation improved among
Subpostmasters, MPs and with journalists
covering the Scheme
Reputational damage caused by ongoing
Horizon issues stopped
Interest among MPs in Scheme declines
as they feel constituents are being treated
fairly (proxy measure MPs
correspondence & PQs)
yore ave
90% cases
investigated by POL
by end of July and
90% of cases
mediated by end of
September
Subpostmasters feel positive
about the way the scheme has
been administered and
confidence in Horizon is
increasing
Post Office engages directly with
interested MPs and is the first point of call
for enquiries about the
Scheme/Horizon/SPMR complaints
100% cases settled
within policy
guidelines. Scheme
administration in
budget
Second Sight
endorse the
Scheme as fair and
robust
oer
e\
Feel that Post Office is
engaging in good faith and the
Scheme is being administered
efficiently and effectively
Scheme administered in an
efficient and professional
manner
Second Sightis focused
‘on providing timely,
evidence based reports
Cases are triaged to effectively
identify cases that are
appropriate to settle early or
removed from the Scheme
(target TBC)
on applications that allow
successful mediation or
settlement of most cases
Investigations are thorough
and impartial. Reports are
balanced and professional
Su,
SPostm, Ste
rs
Second Sight Finance Case Processing
POL00199737
POL00199737
4. Performance Dashboard @
Hee” Terms of Success Performance \ Key Risks Financial \ Early
eas Reference Criteria Dashboard & Issues Outlook / Settlement
BOGEHoH
HEREERHBEGRERE GRE
¢ The Performance Dashboard has been developed
¢ Data cleansing/administration activities continue to improve the data quality
prior to populating the dashboard
* The first report will be available by the next Programme Board meeting
©)
COMMERCIAL IN CONFIDENCE
5. 1 Key Issues — extracted from programme register
POL00199737
POL00199737
Terms of Success Performance \ Key Risks Financial \ Early
Reference Criteria Dashboard & Issues Outlook Settlement
Second Sight (SS) lack
resources to progress the
investigation of cases
Second Sight and JFSA
consider the scope of Second
Sight’s work to extend beyond
the Scheme and in any event,
have taken a very wide view of
Second’s Sight’s investigatory
role within the Scheme
Delays in getting all the Fujitsu
data requests returned in the
timeframes expected by WG —
technically we are limited to the
number of queries we can run
(about 30 months of data per
week, e.g. 1 x 30 month
request or 30 x 1 month
___. requests).
SS have been relieved of Scheme administration activities .
Their contract is being revised and resource requirements
are being monitored through the WG. Although they have
provided a CV for an additional resource to CA, this will be
insufficient to manage the workload soon to commence;
should we be seeking alternative resourcing arrangements?
1. Continuing discussions with Second Sight about their
engagement
2. Conversations with AH about the role within the
Scheme
3. Clarification with PV and AP about scope
1. Arrange a meeting with Fujitsu to explore the possibility of
improving the number of queries which can be processed at
any one time
2. Investigations team to schedule and prioritise requests in
a weekly meeting with Fujitsu.
3. Investigations team to look at how we focus cases to
more specific data ranges rather than broad requests.
Accept and manage impacts of the schedule back to the
WG via Angela.
COMMERCIAL IN CONFIDENCE
CA
AH
POL00199737
POL00199737
Hicupe oy lemme oF Success \ Performance \ Key Risks \ Financial \ Early
oe Reference Criteria Dashboard & Issues Outlook Settlement
The list of POL representatives for 1. The Programme Board is requested to endorse the selected CA
mediation have not been confirmed. representatives
Potential representatives have been 2. CA to seek confirmation from relevant Director and ExCo
selected however agreement for their
release from BaU has not been sought.
This could potentially delay the
mediation timescales.
POL process for raising purchase orders 1. Administration activities including the clarification of purchase orders is BC
are cumbersome; this could potentially underway.
delay the progression of cases through 2. BC and JS to meet AH to discuss the mediation purchase order process
the Scheme
There is a risk that the POL Initial training provided at the Investigators’ workshop on 17 December. AVDB
investigators will not have the required Quality assurance of Investigators’ reports commenced. Feedback being
Capability to write the reports to the provided.
standard required
Risk that a challenge emerges whether 1. Action appropriate person to develop a set of contingency plans RW
founded or unfounded in relation to the
safety of a conviction which requires
deployment of substantial resources,
with associated with PR implications
Risk that Fujitsu technical specialists are This will be managed/mitigated by scheduling requests in the weekly meeting AH
not available when required for as well as by creating a forward plan for Fujitsu to look at how they create the
questions relating to functionality/data. required capacity for the skill set needed. POL may also have to consider
prioritising between this and other project work, this requests will be escalated
by the Programme team where required.
COMMERCIAL IN CONFIDENCE
POL00199737
POL00199737
6.1 Financial Outlook @
Hee” Terms of Success Performance \ Key Risks Financial \ Early
eas Reference Criteria Dashboard & Issues Outlook / Settlement
¢ The Scheme is currently assumed to be all exceptional next year in the
budget process
* Compensation paid to agents in relation to the Scheme could be treated as
exceptional on the basis that the total amount paid out is significant in the
context of a specific financial year (spend >c£5m) however the
compensation could not be linked to Network Transformation as it is in
relation to past events
¢ Review and set up of new internal processes can be treated as exceptional
as, for accounting purposes, it can be seen as part of Network
Transformation as this relates to the establishment processes required for
the future models
* However it is unlikely to be possible to treat the project costs of mediation as
exceptional because it will not be significant in amount. This element relates
to a past event (the dismissal of the subpostmaster concerned)
¢ Therefore we need as much of the mediation spend to be incurred this
financial year.
©
COMMERCIAL IN CONFIDENCE
POL00199737
POL00199737
6.2 Financial Outloo
rectors Terms of Success Performance \ Key Risks Financial \ Early
ie) Reference Criteria Dashboard & Issues Outlook / Settlement
Mediation costs* ek Other project costs* ok
Bond Dickinson 1,080 Project Management 19
Cartwright king 392 Bond Dickinson 60
Brian Altman QC 169
Independent Chair 40 PA consulting 26
Second Sight 504 Total Other Project costs £273k
Mediators (CEDR) 466
Fujitsu 616
Mediation venue costs 112 Total Sparrow costs £4,973k
Subpostmaster’s advisors 422
Project Management 167 (a
PA Consultants — to end March 232 Mediation Costs
Mediation case team 610
FSC 50
The budget line only takes account for
Other cost: 9
reo the budget we have on PA spend.
Total Mediation cost £4,700k
Is there anything further we can do
erg ee Pe CO soso was £32k to draw spend forward to 13/14?
*Based on 147 cases (40)
we
COMMERCIAL IN CONFIDENCE
POL00199737
POL00199737
6.3 Finance — PA proposal @
Hee” Terms of Success Performance \ Key Risks Financial \ Early
eas Reference Criteria Dashboard & Issues Outlook / Settlement
* In late October 2013 the governance of the Programme was revised
¢ The Steering Group recognised that the lack of full time resource was leading to a
business risk
¢« PAConsulting were engaged to establish Scheme governance and programme
management
* The CFO has extended PA’s engagement to the end of March 2014
* However PA's current proposal from now until end of September 2014, for £926k is:
¢ Programme Manager to the end of September 2014
¢ Programme Office Manager and Secretariat to the end of September 2014
¢ Policy Development Lead to the end of July 2014
e Scheme Process Support to the end of July 2014
e Expert advice on complaint handling and programme management (as &
when necessary)
* Case Management resource to the end of July 2014
* The Board is invited to consider and decide:
1. Whether there is a requirement for a case management resource
2. How we resource the programme and if that is through PA’s proposal to
mandate the Programme Director to negotiate detailed terms (with CC and
proct rement)
&)
COMMERCIAL IN CONFIDENCE
POL00199737
POL00199737
7. Early Settlement Criteria ©
Hee” Terms of Success Performance \ Key Risks Financial \ Early
eas Reference Criteria Dashboard & Issues Outlook / Settlement
* Detail on the early settlement policy is set out in the paper
circulated with these slides
¢ In summary:
* Early settlement will reduce costs for the Programme
* The policy can be applied at every stage of a case as it
progresses through the Scheme
* Bond Dickinson will lead on identifying suitable cases
* Senior managers at POL will engage with Applicants
* Awide range of different cases could be settled early:
* Low value claims — under £15k
¢ Where POL is clearly at fault
° Where a case is too old to investigate mediation could be
unproductive
* Follows the process in settlement policy for scoping and
approving settlements so that governance controls are in
place
@)
COMMERCIAL IN CONFIDENCE
POL00199737
POL00199737
AOB @
1. Communications Plan
2. Next Programme Board — Tuesday 4"" February, 11:30 — 12:30, Room 108
Agenda:
a) Programme Update
b) Mediation Scheme
c) Second Sight first case report
d) Themes arising from CQRs
e) Performance Dashboard
f) Risks & Issues
g) Development of future complaint resolution model
©)
COMMERCIAL IN CONFIDENCE