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Branch Support Programme
Steering Group Meeting — 04 February 2015
Post Office®
CONFIDENTIAL
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Agenda
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Update on actions from January meeting
Status update
Baton passing
Progress against work streams
a F WN >
Risks and issues
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Update on actions from January
meeting
Potential £230k within NBSC_ was identified
Provide breakdown of the impact of from call categorisation however lack of detail
20150108.1 not progressing case management Angela Next meeting 4" Feb available through not having CM tool impacts
tool on programme benefits this area, this would have been in addition to
the now £400k BAU
20150108.2 Who owns the IPR for HORIce Dave H 419" Jan 2015
Confirm budget owners to Sharon On-going currently £36k avoided roll overs form
roves for any HORIce changes Network Operations
Present full picture of HORIce Ble te present at
20150108.4 benefits including both hard and soft Angela i. P On track
i 12" Feb ExCo
measures and cost associated
oon ll full breakdown of
ove Sl benefits and costs
ove I Craig 19" Jan 2015
Angela Next Meeting 4" Feb Breakdown at slides 7 and 8.
Sharon Bull reports Rod was to indicate a
percentage of the funds recovered at audit
which should be used — current view is 50%
Angela/Sharon Next Meeting 4" Feb however have not yet included this in overall
benefits calculation — currently forecast to
recover £663k therefore benefit of 14/15 would
be £332k
Angela and Sharon to agree best
way of presenting reduction in agent
net debt KPI and include in next
meeting pack
20150108.6
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Branch Support Transformation Programme Time
Programme Summary — To improve the support we provide to subpostmasters programme eoatR £4 Cost
and operators in the running of their Post Offices from the moment they join to Timesoales on lote b "ich Benefit
the point where they leave the business. 5018 plete by Quality
i Customers, Colleagues and Third Party Engagement
Performance (Benefits) Periods Full rregramine
Target I Actual I Target Customers
Pregtanms 1a YTD YTD (RAG) bolted The programme has had a positive indirect impact on customer experience. The impact
Operating cost reduction £0 am lof less Spmr suspensions has resulted in 16 postmasters in pd 10 being kept in post
Number of postmaster suspensions 50 60 whilst investigations in performance are on-going. Year to date this has meant that 112
Losses recovered at audit. See note £ee3K Eim branches have had no disruption to service that would have occurred previously, i.e.
Satisfaction w ith training 95% 95% before our new approach was introduced.
Reduction in calls to NBSG 25%
Target in reduction in =£10k Shortages at
audit, See note below. Colleagues
= = : = aS ae Full review of HORIce took place at meeting with stakeholders and users on 6th Jan
frbiap rr clodncal SACL Nes iad laid rape MGs mula uanel ohm nEnp One naaa itn 2015 to assess the current capabilities and refine the outputs of HORIce so that it
Standards teams. An additional £10k (total £631) is this month show nas attributable to this highlights anomalies in branch performance across the whole network enabling early
Programme follow ing finance advise and is saved from debt team in FSC of 1FTE from
dS. As reported last month there w as a negative impact of resource release timeline intervention te fake place; a further review is ta take place ard Feb. 14 ettsure that
slippage for GR & VRw hich impacted the in year savings originally forecast from forecast savings are delivered in 2015-16, activities will be baton passed to the
Migration to on-line training, overall in year savings forecast Is £230k, including £16k from i identi ich wil
w ithin FSC debt team. (2) Reduction in Agent net continues to be positively influenced by eeprorrate 2ude et Tioidel wal curently. Uf Gators identified wile wlll fort Batt of
new suspension approach w ith £552k made good (p10) as condition of remaining in post personal objectives for the budget holders. New Baton Owner is based on the current
This is the figure now show n in table above how ever target has not been adjusted. (3) structure. If this changes, the baton and objective will pass to the new budget owner.
Satisfaction w ith Training - the 88% is based on user feedback on the On Line Regulatory
‘Compliance Training. (4) Reduction in calls to the NBSC. - currently no clear line of sight
but a 30+ point plan has been shared w ith programme by BAU ow ner w hich w ill impact
this measure. (5) Target in reduction in =€10k shortages at audit. This is HORIce related Third Parties
and until fully deployed not expected to see impact
Risks Delivery Plan RAG status (Time)
RAG Iimpact [Lketinood
Risk Summary Gross _I(Gross)I (Gross) ‘Current Risk Mitigation A
Hie majoriy of operating cost Ianage the resource plan wit HRW ensure s od
reduction is delivered through we optimise redeployment opportunities and tomate ¢ Regu I passing
receipt for BdC compliance Cheque rem agreed by
eduction in resource. Risk to ext va VR however CR mayneed'o be ees ence ts
savings if surplus pool is created. considered. sselalueh roll out go live ‘out changes I budget
PORCWL jointstatement sist I 1 I 4 ‘ Hep I holders
Dee could negatielyimpact oo
resource release timeline for CR Revised Regulatory
la VR suspension Compliance HORIce On-line ‘Branch
ROOG. BSP initiatives in FSC and [On-going engagement from BSP with FSC and approach on-line pilot pilot training ‘wiew tool
INBSC have not progessed as NBSC teams, including offers of support launched modules Jaunched modules: launched
Iexpected due to other initiatives ie Further work with NBSC and FSC in Q4 to launched
]BTr and BAU budget savings. 16 4 4 jembed Lean ways of working and identify
Potential to adversely fect further improvements in 15/16.
forecast staf! savings in both areas 201p-14 2pi4-15 2015-16
a4 a @ 4 Qi @
Dependencies A A ph.
Dependencies Status Actions
Dependenton IT and On track Continue to track H
Fujitsu to deliver progress te
Programme changes and
project A A 4a 4
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Status update - February
. Operational cost reduction: YTD savings as a result of the release of agency staff in TAM & Branch Standards teams (as at
end pd 9) is £52.8k. This activity generates savings of £143k for 14/15 with full year effect savings of £508k. Impact of the
changes to audit admin and training detailed within HR1 show reduction of 27 FTE FSA and 3 FTE FTL as a consequence of
Branch Support Programme, with a release date of 23" Feb 2015 for VR & CR. No pd 9 impact but in year effect for 14/15 is
£91k with full effect savings of £947k.
. Bureau de Change 2™ receipt: the transaction for customers paying by debit or credit card for bureau transactions was
changed in Sept 2014 to include an automatic re-print of the receipt which includes the card and identification details of the
customer, which needs to be presented in case of fraudulent use of the card. Since the change FSC has received 96
Chargebacks totalling £188k. 95 branches were able to provide a copy of the 2™ receipt, resulting in no chargeback to POL or
branch.
. Cheque Rem out: the end of day cheque remittance process has been reviewed and a new solution to drive out errors has been
identified. This should reduce calls into NBSC (650 per month) and the Transaction Corrections (c.570 pm periods 1-5 2014)
issued by Finance Service Centre. CAF has been processed detailing cost of £109k with savings of £85k pa from reduction in 3
FTEs at FSC and 0.5 FTE at NBSC however the go live has been delayed from March to May due to capacity issues in the
previous release. Recalculated savings for 15/16 are £63.8k
. HORIce : The pilot has proved that this is a valuable tool for focusing on any one particular branch. We are currently working
with Fujitsu to refine the outputs of HORIce so that it highlights anomalies in branch performance across the whole network. The
capabilities of HORIce were showcased in meeting on 6" Jan when the effectiveness of HORIce was fully assessed by the BAU
teams taking part in the pilot. Next HORIce pilot review meeting 3 February.
. On-line training: go-live for training has been rescheduled to 6" Feb to enable sufficient user testing to take place. This will not
affect the forecast savings as the HR1 timeline resource release is 23rd Feb. Project brief accepted by Gating forum 19"
December 2014. Project is on track.
. 15/16 savings: BSP activity in Dec and Jan - (1) NBSC have produced high level plan to identifying activity required to achieve
the forecast 25% reduction in call volumes (2) FSC to identify further efficiencies from a forecast reduction in the number of
Transaction Corrections issued and investigated
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Baton Passing E>
* To ensure that forecast savings are delivered in 2015-16, activities need to be
baton passed to the appropriate budget holder and formal acknowledgment
gained
¢ 17 batons have been identified
¢ It is recommended that delivery of the these batons form personal objectives
for the budget holders, who will be expected to accept the baton with an
electronic signature
¢ Where roles have been removed from the 14/15 template this has flowed
trough to 15/16 template. If New Baton Owners want to put costs back in for
2015-16, new Business Cases will need approval
¢ Full Year savings start from 1 April 2015. Any slippage must be recouped later
in the year, so that the Full Year total is still achieved
¢ New Baton Owner is based on the current structure. If this changes, the baton
and objective will need to pass to the new budget owner
Post Office® CONFIDENTIAL
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Benefit Breakdown
Field Support Advisors + Field Team Leaders 27 x FSA +3 FTL £67,000 £947,106
(Training + Audit Admin)
Telephone Account Managers 10x FTEs £110,347 £322,574
Branch Standards Team Gx FTES £32,376 £185,298
Debt Recovery Team 1x FTE in 2014-15
1.8 FTE in 2015-16 a ee
Debit/Credit Card Team 41x 0 £23,800
Cheque Processing & Transaction Corrections 3x FTEs 0 £71,400
Team
Network Business Support Centre (bureau 0.5 x FTE 0 £15,442
Calls)
Network Operations (training class admin) 2x Files 0 £61,766
Operational Business Change (assisted Non Staff 0 £36,000
rollovers)
Network Operations (reg compliance print & Non Staff 0 £51,000
distribution)
Network Services (locks) Non Staff £4,200 £4,200
Debt Recovery Team (solicitors, write offs) Non Staff 0 £45,617
Network Ops, Comms, Product Teams (class Non Staff 0 £123,000
room training print & distribution)
TOTAL £230,313 £1,930,043
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Post Office® CONFIDENTIAL
Project Costs Breakdown
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Actual programme and supplier costs Fujitsu £627,418
(P1 to P9) EMC
Forecast programme costs (P10 to P12) N/A £169,200
Forecast Supplier costs:
* Online Training Capita £231,000
* Horizon Cheque Rem Out Fujitsu 0 £110,000
* subspaceonline additional development EMC £3,600
* EMC on-boarding (initial cost) Atos £27,991
(cost has been challenged)
+ Atos - EMC on-boarding (recurring monthly cost) Atos £7,234
(cost has been challenged)
* Online Training Re-branding Distance Learning Packs Linneys £8,000
Total excluding VR £1,074,433 £110,000
Voluntary Redundancy (auditors & trainers) N/A £2,540,000
95 people have over 20 years service and several are over age
55, so max. 2 years (including pension) has been used in the
calculation. £2.54m is therefore the maximum figure.
Total including VR £3,614,433 £110,000
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Post Office® CONFIDENTIAL
Milestone Plan
Activity/Work
stream
Pre-appointment
Training
Operational Support
Physical Support
Leavers
On-line Regulatory
Compliance
Horizon Information
Centre (HORIce)
Lin Norbury
Sarah Malone
Amanda Stevens
Drew Mcbride
Peter Prior-Mills
Lin Norbury
Craig Tuthill
Craig Tuthill
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Benefits/Metric
associated
No benefit identified for 14/48 kaunchyraviees en process
potential benefits for 15/16 Streamline supporting interview process
currently being scoped
£67k 14/15 benefit and £569k Revise counter training room content to ;
15/16 on-line platform
45/16 £400k attributable now to A Root cause analysis of NBSC calls begins
BAU therefore NBSC 15/16 for A
BSP is nil.. 14./15 Nil A -<<-=----=>
FSC 14/15 £16k 15/16 £89k Start of Network Services review
Network Services
14115 £147k 15/16 £512k
Revised audit process
15/16 Audit and admin £439k A A .
Sue Sy US ae launched
Centralisation of audit admin
£65k Bureau duplicate receipt
paid out by agents last year, £52k A ae
paid out p1-7 14/15 to the P7
Intro 96 branches £188k no.
>A
payback Revised cheque rem process
Bureau FSC £24k 15/16 A launched — this is moved to Q1
Chq Rem Out £71.4k savings in — a as per narrative
15/16 when live from FSC and 7 4
£15.4k NBSC Bureau duplicate receipt launched
50% reduction in spmr A Revised contractual breach policy launched
‘suspensions is being achieved
14/15 nil 15/16 £123k work
printing and distribution A
A----
New joiners process launched
A Being migration of remaining network
Prototype ready for testing
14/15 nil 15/16 £36k
Launch of HORIce pilot
& monthly review meetings
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Post Office®
CONFIDENTIAL a
Work stream status1
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Attraction
Pre-
appointment
Training
Operational
Support
Define what is required to promote
Post Office brand and culture
the
Define ‘options’ (cost, time, customer
experience) for revised attraction
process and policy
Map out end to end process,
identifying what it means for the teams
involved
Plan Implementation
Selection
Review end to end process
Review whether NT Financial
Assessments for existing conversions
process can be used as part of BAU
Interim solution to be implemented in February a
2015. Supplier is Capita
Interim solution to be in place for 12 — 18
months while the permanent solution is sourced
and developed
HR1 form issued 24" November
NFSP and key stakeholders engaged
Training modules signed off
Gating members updated via Project Brief — no
issues. No further Gating requirements before
go live.
Case management tool
Business Transformation Programme
Steering Group decision to stop all
further investment spend on MS.
Dynamics and Case Management
Produce business case to identify if » End of Feb 2015
investment in front end system should be
funded within BSP or BAU as work has
progressed in both areas
Complete and sign off testing * 6 February 2015 — go live
Complete and issue communications (users
and POL stakeholders)
No further action to be initiated by this
Programme
The Programme will monitor and input to any
development of a Case Management Tool by
the Business Transformation Programme
10 —
Work stream status 2
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Physical .
support ¢
IT «
Leavers :
Post Office®
Revised audit admin process launched
Revised compliance audit content launched
HR1 form issued 24" November
Cheque Rem Out
+ Contract Approval Form and Purchase
Order raised
+ High level benefit established from Cheque
Rem Out = 3.5 FTEs
* Cannot be included in the March release
due to capacity issues and delays in POL
Finance Approval process
Bureau automatic 2™ receipt
+ Live (19" September).
+ Postmasters were held liable for £65k in
13/14. Since 19" Sept, total is £0.
Horizon Lost Connection Transaction Reversal
* CR submitted to Atos/Fujitsu
Production of Automatic ATM 16:30 Figure
+ Initial discussions with Bol and POL
Stakeholders
Revised suspension process live
Revised contractual breach policy live
Revised Death in Service & Family Transfer policies
live
Revised Debarment policy and process live
Revised Performance Management policy and
process live
Revised Recognition policy and process live
Develop risk profile and approach for physical
audits
Review MI for compliance audits to ensure activity
has been successful
Identify people change process requirements for
realising efficiencies
Begin consultation on FTE reduction
Cheque Rem Out
+ Discuss options for release slot with
Fujitsu
+ One option may be to have a ‘stand alone’
release, so that it can't be delayed by
slippage to other changes
+ Plan communications to branches and
stakeholders
Horizon Lost Connection Transaction Reversal
+ Atos/Fujitsu to respond to the CR
Production of Automatic ATM 16:30 Figure
+ Bol to investigate and respond with a
proposal
Discussions with legal services continue regarding
informal meetings vs. criminal proceedings. This
now has implications for legacy policy as well
Review and revise Temporary Sub postmaster
policy
CONFIDENTIAL
+ 23 Feb- End of
consultation period
* Cheque Rem Out -
Horizon release slot
— planned for end
May
+ Feb 15— Temporary
Postmaster policy
live
A1)—
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Work stream status 3
On-line « New Entrant training live 12 Nov * Plan for rollout to Crowns and Agents + Feb 2015 — start of
Regulatory * Supplier has developed: rollout to Crowns
Compliance * 72,48,24 hour emails and Agents
Training * Reminder text and emails
+ 72,48 and 24hr texts
+ Admin Area User Management
+ Transfer date field
HORIce + HORICce pilot live + Use evidence from the pilot to determine whether * 3 Feb 2015 —
+ Review meetings used to: HORIce provides what POL needs and/or forms the HORIce Review
+ Review user experience basis for requirements for a similar tool when Forum
* Share best practice Horizon is replaced
+ Identify system improvements
+ Document benefits & issues
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Risks and Issues
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Top 8 ks
R001. Fujitsu and internal POL IT teams do
not have resource to deliver Programme
changes which is significantly impacting on
delivery date
R002. Majority of savings costs are through
people/resource savings, increasing risk of
surplus pool
ROO3. Other pressures on time creating
inability to mobilise work streams
R004. Subpostmasters and operators don't
embrace new on-line training methods
R005. Reduction in spmr suspensions,
increases net debt figure
R006. Perceived conflicting cost reduction
initiatives have resulted in lack of
engagement and support for BSP initiatives
in FSC and NBSC which may result in
failure to achieve forecast staff savings in
both areas
R007. Call reduction into NBSC may not be
realised
5
16
12
12
12
16
12
Plan to be produced by IT mapping areas for
change, priorities and resource required. Plan for
escalations within Fujitsu 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. Engagement with Multiple business partners.
Number of suspensions, reasons and impact on
overall debt being monitored. HORIce will enable
earlier intervention.
Regular conversations with FSC and NBSC teams,
including offers of support, visits to Chesterfield and
Dearne 6" and 7" Jan 2015 to agree improvement
activities and subsequent efficiencies for 15/16
onwards delivery.
Review BAU operational plan with NBSC and
identify metric for identifying “exceptional activity”
driving calls into NBSC (link to RO06)
elihood gating action Date
Raised
Dave Hulbert
Drew
Craig
Amanda
Rod
Programme
Steering
Group
Angela
Craig
Craig
Rod
Craig
Peter
Amanda
Craig
06/06/14
06/06/14
13/06/14
06/06/14
06/06/14
29/12/14
30/06/14
Post Office®
CONFIDENTIAL
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