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Branch Support Programme
Steering Group Meeting — Friday 6"" June 2014
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Agenda E>
Programme Overview
Programme Governance
¢ Link into Transformation Committee
* Role of Steering Group and working group — sign off Terms of Reference
Overall Programme Status
* High level milestone plan
Work Stream Status
Risks and Issues
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Branch Support Programme - Overview E>
Purpose
The purpose of the Branch Support Programme (BSP) is to improve the
effectiveness and efficiency of the
support we provide to our subpostmasters and operators in the running of their Post
Offices from an
operational and engagement perspective.
Business Case
* Spend £8.678m (£4.678m exceptional £4m VR)
¢« Payback £3.2 years
KPls
« Reduce operating costs by £3m pa
¢ Spmr suspensions less than 60 pa
* Agent debt reduced by £1m pa
* NBSC call volumes reduced by 25%
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Post Gatisfaction with on-line training negHles/9D7e
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Post Office Limited Governance Structure
KEY
TRANSFORMATION
BUSINESS AS USUAL
RISK
Remuneration Committee
(at least 3 meetings per yea)
Audit, Risk & Compliance Committee
(at least 3 meetings per year)
First Rate
Exchange
C Nominations Committee 2) Pensions Committee +) warvices anti’
(2 or 3 meetings per year) {at least 3 meetings per year) Gos Joniverkro
Post Office
Advisory with Bank of Ireland
Council
(3 meetings Financial Services Committee POL/BO! Senior
per year) (2 or 3 meetings per year) Executive
Committee
ai
aE
of
8=
aS
TRANSFORMATION RISK AND COMPLIANCE COMMERCIAL 8
COMMITTEE COMMITTEE FINANCE COMMITTEE COMMITTEE
soni General Counsel sia Commercial Director
LY Gating Forum I-} Financial Services
Siac eippett Crown Transformation’ Health and Safety Meeting r
Meeting g
I Pay and g
Network I I __ Information Security Reward Meeting I =
Network Expansion Transformation meeting Trading Meeting 4
Meeting T ;
a i
Multi-Channel IT Transformation Information Security 7
Platform Meeting Working Party + Digital U Ccomiestore 3
+ Network Expansion ‘orum
+ Mails : Speratnya
Business LI Meeting?
Transformation Business Continuity Steeri + Government
Meeting + Telephony
O
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Branch Support Transformation Programme Time
_Toi - Programme Scale Cost
Programme Summary To improve the support we provide to subpostmasters Cost C. £4.25m (+ VR c £4m) fi
and operators in the running of their Post Offices from the moment they join to the Ti \ lete by March 2015 Benefit
point where they leave the business. acre dae Aida Quality [I « I
Performance (Benefits) Customers, Colleagues and Third Party Engagement
Period 2 Full Programme
ICustomers Whilst there is no direct impact on customers, the activity within the work
Programme KPI Target Actual Target Forecast streams should have a positive impact on the customer experience. The reduction in
(RAG) (RAG) subpostmaster suspensions has meant a continuity of service in areas where the branch
Operating cost reduction £3m 15/16 full year may previously have been closed due to sourcing and transferring to a temporary
- subpostmaster.
Number of spmr suspensions 5 60 p.a.
Reduction in agent net debt 90k a £1m 15/16 full year
IColleagues A number of agency branches, Crown branches and Blakemore (multiple
Satisfaction with training 1 Tee 95% Eullyear’ partner) have signed up to participate in on-line regulatory compliance prototype testing.
Reduction in calls to NBSC 25 TBe 25% Eullyest Colleagues continue to be engaged in individual work stream activity. Large exercise
Reduction in >£10k shortages 7 [ST 50% Eulivean undertaken with wide range of stakeholders to understand IT requirements for branch
view tool.
Status Update _(1) Business Case and funding agreed by POLIC (2) IT requirerrents for CRM
systemagreed with stakeholders and joint approach agreed with NT (3) On-line regulatory
compliance training prototype being built with supplier and on track for testing with users w/c 16th
June (4) Bureau 2nd receipt transaction scripted and passed to Fujitsu for build and testing (5) Top
branch contact into NBSC process launched with Branch Support Team
Third Parties Positive feedback from NFSP conference regarding work the Programme
is doing to make improvements. Workshop with NFSP is planned for end June/early July
to understand Programme workstreams in more detail and identify areas where the
NFSP can add specific value. Attending NFSP regional meetings in June/ July.
Risks Delivery Plan RAG status (Time) On-line
RAG Impact] Likelihood] Ba training
Risk Summary Gross _I(Gross)I (Gross) ‘Current Risk Mitigation modules
The m ajorityof operating cost Manage the resource plan with HR to ensure HORIce Regulatory uth)
reduction is delivered through ie 4 4 IWeoptimise redeployment opportunities and Revised launched Compltance
reduction in resource. Risk to exit via VR however CR mayneed to suspension Sees =
savings if surplus pool is created. considered approach Branch view tool
launched launched
Issues with IT resource to deliver Working with IT&C to understand specific
changes and support projects will reasons for delays in delivering activity.
impact on delivery times of specific 5 s 5 IAppears to be a business wide issue with
és 2013-14 014-15 wh 2015-16
project activity capacity and planning of change with Fujitsu a4, ho h2 rer} as at @
.
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Dependencies Actions
Dependent on IT and
Fujitsu to deliver
Programme changes and
projects
Currently experiencing delays in receiving
ICRs back from Fujitsu and being
allocated POL resource for writing and
testing scripts for transactional changes.
Escalated to Dave H
land also raised as
issue at Programme
Portfolio meeting
Dependent on Business
Transformation identifying
whatis in scope and out of
scope to prevent double
counting of benefits
Branch Support part of BT Steering Group.
Programme representation also
nominated to work with new partner.
Awaiting invites for
meetings
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Slide 5 Notes
Performance
* 12 suspensions in Period 2, however, only 5 were due to audit shortages which is the metric impacted by the change in policy. 4 other cases were due
to insolvency, bankruptcy etc, 1 was due to abandonment of service and the other was due to a Royal Mail investigation. We will be doing a
retrospective exercise to review last year’s numbers to ensure they are accurate.
+ Interms of debt, the Period 2 figure is a £23k positive change in debt, resulting in a cumulative figure of £113k. This was impacted by a £181k audit
shortage which has not been recovered. The £1m reduction equates to an approximate 15% reduction in overall debt.
* There is an issue with the reports provided by NBSC. However, we would not expect to see a downturn in numbers until 2015.
+ The number of audit shortages over £10k is showing amber at the moment due to a delay in the implementation of HORIce. It is amber rather than red
as we expect to recover it before the end of the financial year.
Delivery Plan
The delivery date for HORIce has not been achieved and has been re-planned for middle of Q2. The delay has been created by the time it has taken
ATOS and Fujitsu to formally respond to a Change Request to something which was positioned as a tool that was already built.
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Roles and responsibilities of groups
Steering Group meeting Working Group meeting
. Understand progress against the milestone plan, costs, ° Formal up-date on progress with each work stream
Daniels ‘anid Quel or i Programime:and reperttnis Manage interdependencies between each work stream
to Transformation Committee
7 F F . Identify risks and issues associated with delivery of
. Ratify milestone changes if necessary I 5 3 rsa, 23 4
milestones and benefits, proposing mitigating actions
. Understand risks and issues of delivery of the
Programme and ensure actions proposed by work
streams will be adequate to mitigate those risks
. Agree proposals and make decisions regarding
deliverables to present to the Steering Group
Agree on which issues need to be escalated to
. Make decisions on deliverables as required by the Steering Group
Work Stream meeting
. Challenge each other and respective teams who are
responsibl le for delivering certain areas of the Attendees: Pam Heap, Drew McBride, Craig Tuthill/ Lin Norbury, Sarah Malone, Julie
Thomas, Ann Miller, Claire Langley, Amanda Stevens, Kendra Dickinson, Rod Ismay,
Doug Brown, Andy Hayward, Michael Brown, Andy Holt, Karl Oliver, Andy Garner,
Programme
Richard Weaver/Jonathan Knox, Georgina Blair, Angela Van-den Bogerd, Gayle
. Ensure Programme is administered in line with Post Peacock, Anne Allaker, Peter Prior-Mills, Dave Ireland
Office governance standards and controls are in place
Attendees: Kevin Gilliland, Paul Brown, Michael Larkin, lan Kennedy, Brian Deveney,
Dave Hulbert, Harry Clarke, , Sharon Bull, Nick Beal, Angela Van-den Bogerd, Gayle
Peacock
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Milestone Plan
Activity/Work Benefits/Metric
stream associated
Launch revised application process
Pre-appointment Craig Tuthill/Lin £30k per annum
Norbury resource saving Streamline supporting interview process A
Training Sarah Malone/Julie £450k saving Revise counter training room content JM
Thomas 95% satisfaction to on-line platform
Communications Richard Weaver A Launch branch communication research
Review findings of research to identify solutions
Agent engagement survey launched
Operational Amanda Stevens £635k NBSC A Deploy CRM
Support £640k FSC Dates for revising call categorisation into NBSC, call , across Ops
£530k Network Services review, review of FSC teams and Network Services to be H Support areas
identified and agreed I
Physical Support Pam Heap £250k audit admin A Canvalenian of auch eine: i
£100k audit review Revised audit process
launched
IT Peter Prior-Mills H
A Branch profile requirements identified & Deploy CRM
A Branch profile options scoped, agreed and build starts
A Bureau duplicate receipt launched A Revised cheque rem process
launched
Leavers Craig Tuthill/Lin £1m net debt sal
Norbury 50% spmr suspensions A Revised contractual breach policy launched
On-line Gayle Peacock £51k joiners (14/15) -
Regulatory £135k additionally after A [pases ice Ae Lesvatied
caneraics falinataiceee New joiners process launched
A Being migration of remaining network
HORIce Gayle Peacock 50% reduction in audit
shortages > £10k A Launch of HORIce pilot
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Workstream status
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ESS EE —_—
Pre-appointment
Training
Communications
Operational Support
High level plan and benefits identified
“End-state” vision agreed by group
Potential options for improved web-
application process scoped
Synergies with NT electronic business
plan identified
“End-state” vision agreed by group
Activities identified to deliver business
benefit with high level milestones identified
High level plan and milestones agreed with
work stream group
Analysis undertaken on costs associated
with “corrective” communications
“End-state” vision agreed with group
High level list of required activities
identified
Analysis done on NBSC call types to
initiate areas for root-cause analysis. Top
3 areas are “mails”, “stock” and “telephone
numbers” driving in 25% of calls
Input into branch profile tool
Improvement plans created with NBSC
and FSC to tackle “quick wins” in bau
Agree lower level plan detail with
specific business owners
Understand electronic business
plan in more detail
Progress improved on-line
application process
Agree lower level plan to
progress to end state
Discussion with Steering Group
about how the work stream fits
with overall Agent Engagement
hub work
Agree lower level plan to
progress to end state and to
deliver business case benefits
Business plan review on 13"
June
Work stream meeting planning
session on 17" June
Agreement next week regarding
owner
Commission research by end
July 2014
18" June workshop to agree
lower level plan
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Workstream status
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ES eee “ ue “
Physical support
Leavers
On-line Regulatory
Compliance Training
HORIce
Options for supporting 2020 strategy
identified
Revised way of logging audit results
currently being tested after FSA training
Agreement reached with Risk and
Compliance on suggested alternatives for
compliance audits
Branch profile requirements identified with
business stakeholders
Suggested approach discussed with NT
and IT architecture
Bureau 2™ receipt transaction scripted and
passed to Fujitsu for build
Revised cheque rem process identified
Revised suspension process already
implemented with supporting policy change
Recognition process to be scoped
Supplier currently progressing build of
prototype
Users identified for involved in testing
prototype
Saba providing ORBIT prototype for
testing
CR and purchase order raised with Fujistu
Arrange meeting with key
stakeholders to review the
compliance audit process
Track benefits of revising audit
logging process and identify
how this translates into longer
term FSA resource plan
Agree plan for delivering branch
profile tool
Get ATOS to complete formal
assessment of options
Policy PIR to be undertaken
Review of plan with work stream
group
Test prototypes
Agree short, medium and long
term plan
Impact assessment to be
returned by Fuitsu
June/July deployment of revised
audit logging
21° July for model office testing
for bureau receipt
10" June for CRM meeting
Work stream meeting scheduled
for 1% July
Saba BUPA demo on 9" June
EMC prototype demo on 11"
June
Testing for users 16" June
10" June is re-planned date
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Risks and Issues
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Fujitsu and internal POL IT
teams do not have resource to
deliver Programme changes
which is significantly
impacting on delivery date
Majority of savings costs are
through people/resource
savings, increasing risk of
surplus pool
Other pressures on time
creating inability to mobilise
work streams
Subpostmasters and operators
don’t embrace new on-line
training methods
Reduction in spmr
suspensions increases net
debt figure
HORIce may not be tool to
reduce debt
Call reduction into NBSC may
not be realised
Potential double counting of
benefits for NBSC cost savings
16
Plan to be produced by IT mapping areas for
change, priorities and resource required. Plan
for escalations within Fujistu need to be made
available to stakeholders
Plan to be created across Programme where
resource efficiencies are identified. Vacancies
to be sourced on temporary basis or not filled
where there is a reduction
Steering group to review area representation
on Programme and ensure priorities are
clearly communicated
Involvement throughout in on-line build and
testing of solutions. Planned phases of
delivery to ensure buy-in.
Number of suspensions, reasons and impact
‘on overall debt being monitored. HORIce will
enable earlier intervention.
Requirements fully scoped with experts from
the area based on knowledge of fraud/non-
conformance activity
Review BAU operational plan with NBSC and
identify metric for identifying “exceptional
activity” driving calls into NBSC
As above.
Dave H
Drew
Craig
Amanda
Rod
Programme Steering
Group
Angela/Gayle
Craig/Rod
Gayle
Amanda
Gayle
Amanda
Gayle
13" June 2014
30" June 2014
30" June 2014
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