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Project Initiation Document Template v1.04 - This document describes a single change
project, and will be kept updated throughout the project life. It serves to inform
stakeholders, project team, and project board of the purpose and impact of the change
project. The Project Sponsor is accountable for the quality of this document.
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in. Please remove all red italicised text from your final document. All document
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1 Investment Committee Business Case
Sponsor / Kevin
Source of Unbudgeted Gilliland/Angela
Project
Funds —
Manager Van Den Bogerd
oe
Ultimate Chief Financial Officer/ POL IC
Authority
Cut/paste guidance: If you need to cut/paste this info from/to other
documents, use “Paste Special, Unformatted Text” to avoid pasting the
from-format into the to-format.
Detail the main objective of the change. Describe critical success
factors for each objective.
How will you measure success? What indicators will you use to judge
success? Provide descriptions of the Key Performance Indicators (with
targets) for this change.
(If not applicable to the project, please enter N/A)
Describe the contractual framework and terms.
Identify any supplier(s). Add commentary on the supplier’s track record of
delivering such projects and delivery risk.
Identify any client(s). Describe settlement terms and the working capital impact.
Contact Head of Finance to include comment on any financial issues impacting the
decision of the case. Economics and financials should be based on the Group impact
(i.e. strip out the effect of Inter Business payments etc).
REQUEST
This paper seeks approval for the funding of the Branch Support Programme the purpose
of which is to improve the effectiveness and efficiency of the support provided to
subpostmasters and operators in the running of their Post Office branches. The
Programme is one of the key strategic programmes which reports into the Network
Transformation Committee.
Approval is sought in 2014/15 for £3.581m! one-off operating expenditure and £0.675m
annual operating expenditure which includes resource costs and investment to deliver
specific activities within the individual work streams. This is broken down into the
following areas:
¢ Internal resource costs to manage the Programme
£1.046m
¢ Investment in appointment process to attract and recruit higher quality
subpostmasters £0.035m
1 There may be an opportunity to further align the Branch Support Programme with the Network Transformation Programme to avoid duplication
of costs. The full extent of this will be identified following further analysis
Branch Support Programme - Business Case Final 09 05 2014.docx
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* Investment in on-line training modules to replace 80% of classroom training
£0.550m
© Investment in the development of IT software to create unified case management
system
for all support functions
£1.000m2
* On-going running costs, licences and hosting for IT software for case
management £0.500m?
* Annual hosting costs for recruitment and on-line training portals
£0.175m
* Re-writing of HNG transactions to remove opportunity for errors and losses
£0.250m
¢ Investment in internal training and communications to support culture change
£0.200m
© Commissioning of resource to support with the revised operating model
£0.250m
* Legal fees to review appointment and contractual processes
£0.250m*
In addition, due to the fact that most of the cost savings will be realised by
reducing headcount there will potentially be Voluntary Redundancy (VR) of
approximately £4m which has also been included in the case economics.
Approval CapEx Exceptio Lease Disposal
Request (£m) nals Obligati Proceeds
Total Request
NPV @ Payback Pv/I Recurrin Steady
12% g PBITDA State -
bi
38.2% £3.855m I 2016/17
Green Green Green
Resource Requirement for 2014/ Hea Duration Cost
Skills Group 5 11 I 556,894
Skills Group a 3 79,600
Total Request 7 15 I 636,494
2 BACKGROUND
To address the concerns of some subpostmasters over recent years about Horizon, the
Post Office commissioned forensic accountants, Second Sight in 2012 to undertake an
independent review of the cases. The interim report was published in July 2013 and
2 Budget for this spend is not currently within the IT Strategy plan, hence the request for this funding.
° As per footnote 2.
+ Figure based on information provided by Crown Franchise Team for contract piece
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whilst the report identified that there were no systemic issues with the Horizon
system, it suggested that Post Office should examine the training and support offered
to its subpostmasters.
As a result of this, the Branch Support Programme was established to review the
lifecycle of the subpostmaster’s experience with Post Office; “fix” the issues
identified in the Second Sight report and the subsequent mediation cases and ensure
any lessons learnt are factored into future ways of working. To do this, nine work
streams have been established as part of the Programme to capture all of the touch
points a subpostmaster has when running their branch. These are working to the
Programme guiding principles of:
¢ Treat people with dignity and respect
¢ Stand in the subpostmaster’s shoes
¢ Right first time
A LEAN approach is being used to map the critical business processes within the scope
of the work streams to ensure that the most cost effective process is delivered to
reduce non-value add activity. This methodology also helps to embed the principles of
continuous improvement within the relevant work areas. The work streams are detailed
at Annex 1.
A number of “quick wins” have already been implemented and funding was provided to
the Programme until the end of April 2014 to initiate some further critical
initiatives, including the development of the Horizon Information Centre (HORIce)
data tool and the development of on-line regulatory compliance training to address
the key themes highlighted in the Second Sight report including how subpostmaster
material contract breaches are dealt with; how problem branches are identified
(HORice); improving the way we identify and support branches experiencing accounting
issues; and how we provide training and support to new subpostmasters
In addition to this, specific activity has been undertaken with the Network Business
Support Centre and Finance Service Centre to identify improvement opportunities in
ways of working.
The areas currently out of scope within the Programme are:
© Crown network as an entity
¢ supply Chain (with the exception of the Retail Cash team)
¢ Network Transformation Programme as an entity
* Business Transformation Programme
However, as part of the work streams, the Programme will be mapping out the
dependencies and impacts to avoid potential duplication or unnecessary costs.
3. OPTIONS
A number of options have been considered. Option 2 is the preferred option.
Option 1
Do Nothing - Do not act on theI/Post Office has publicly stated that
improvement opportunities the issues identified in the Second
Sight Interim report will be fixed.
Option 2 - Preferred Option
In order for the issues identified in
the Second Sight Interim report and the
internal review to be fixed for the
future, a programmatic approach to
reviewing the end to end support
processes is required. The complexity
of the work streams and their
interdependencies create a need for
this approach. This inclusive,
programmatic approach will ensure that
the level of cultural change required
Adopt a programmatic approach to make
the desired improvements
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to embed the new ways of working is
achieved.
Option 3
Some of the required changes could be
made within the existing business as
Make the required improvements withinIusual teams. However, this would only
the existing business as usual structure Iexacerbate the issue of silo-based
working which impacts on the support
provided to subpostmasters. Delivering
change within isolated areas would not
improve the end to end experience and
it would mean that the reduction in
operating costs would not be realised,
largely due to the fact that a full end
to end review of the processes would
not have taken place.
Option 4
The case management system could be
Make the required improvements withinIdeveloped as part of the Business
the existing business as usual structureITransformation Programme with the
and request that the BusinessIsupplier incurring the investment cost
Transformation Programme deliver theI (estimated at £1m in this business
case management IT tool. case) however the timescale in
appointing the partner could delay the
benefit realisation.
4 .CUSTOMER JOURNEY/MARKETING CONSIDERATION
Part of the cultural change which the Programme has to embed is to place the customer
at the heart of our internal processes. If the work streams achieving their
objectives, the customer will see a number of positive changes:
¢ Recruiting higher quality subpostmasters will result in viable, sustainable
businesses which offer a great customer experience
¢ Improving the way subpostmasters trained and supported will result in a
better service to our customers, creating a highly professional brand and
reducing the number of complaints
¢ Re-writing Horizon transactions to make it simpler for branch will make
easier for customers to do business with us
¢ Creating a stream-lined operational model with everybody trained to a high
standard, putting customers first and using a common IT platform to record
contact with branches will make it easier for customers to do business with us.
* The presence of real-time Horizon information and effective intervention
processes will enable better targeted training and support to branches which
will prevent small issues turning into bigger ones
* The revised approach to dealing with suspensions and contractual breaches will
create a more stable environment for the customers accessing those specific
branches.
5. BENEFITS
The remit of the Branch Support Programme is to improve the experience for the
subpostmaster in the long term and to fix the root causes of the issues identified as
part of Project Sparrow so Post Office is not exposed to the same level of risk
(reputational and financial) in the future. Each of the work streams has been tasked
with identifying a more cost effective method of providing support to branches and
therefore each investment identified will have a specific return as part of the
Programme however some of these need to be determined as part of the 14/15 Programme.
Benefits areas identified to date are set out below.
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The Programme will also be tracking subpostmaster and operator satisfaction with the
new ways of working. This will include tracking the specific questions regarding
support within the Agent Engagement Survey, gathering feedback from the Branch User
Forum and also using on-line feedback surveys as part of the roll-out of on-line
training.
Improvement Cost of Activity Overall
Activity® Implementation I Specific Programme
Benefit Level
Benefit
Revised on-line subpostmaster I £35k in 14/15. I Actual £3.03m
appointment - an improved web-site I annual hosting I benefit to reduction
to attract agents, a revised I cost of £20k be in support.
selection process to ensure we are I pa determined costs®
recruiting the right people and an in Q2 14/15.
improved support package following
transfer.
Replace the majority of new entrant I £550k in Recurring
classroom with on-line training - 14/15. saving of 20
80% reduction in classroom training I Annual hosting I FTES which
course content for new colleagues costs £155k pa I equates to
and subpostmasters with on-line £600k per
learning modules. There are year.
additional benefits to this which
include the provision of a digital
platform which is available to the
whole network and where other
benefits such as compliance
training and “real-time” learning
could be realised.
Re-writing Horizon processes - to £250k in Dependent on
reduce the rate of errors and 14/15. what changes
losses will deliver both a to processes
financial and a resource benefit in are made
chasing those errors. A transaction
process is currently being re-
written which has resulted in
Finance Service Centre
investigating 364 cases for bureau
debit card transactions to the
potential loss value of £895k. 30
of these cases were passed to
subpostmasters to pay which
totalled £65k in value. Whilst Post
Office was able to defend the
majority of the charge-backs,
resource was still required to
chase down these enquiries and
provide evidence.
Introduce a Customer Management £lm in 14/15" I oBc as part
System - delivering a consistent 17 I for investment I of Programme
in the
5 The table below outlines some of the Programme activities which will deliver the £3.03m cost reduction in support
costs.
6 Detailed breakdown of activities and assumptions are attached in Annex 7.
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platform for those teams supporting
branches will enable operating cost
reduction benefits to be realised.
The requirements will be determined
from across the business to ensure
that the system dovetails with
existing or future business
development of
IT software to
create unified
case
management
system. Annual
running costs,
14/15.
Migrating
teams within
network,
NBSC, FSC,
Security and
others to a
systems. licences and I common CRM
hosting for ITI tool will
software enable
£500k pa. processes
and true
workload to
be mapped
and
identified.
Once this is
in place,
this 11
allow for
meaningful
reviews of
activity to
be
undertaken.
Subpostmaster material contract Nil Cost
breaches - revised approach has reduction in
resulted in c. 50% reduction (from resource
188 in 2012/13 to 99 in 13/14) required in
number of precautionary sourcing
suspensions. temporary
alternative
solutions to
be
determined
in Q2 14/15.
Subpostmaster material contract I Nil £1lm pa net £lm pa net
breaches - revised approach to reduction in I reduction
suspensions is already having a agent debt in agent
positive impact on the amount of debt
former agent debt that needs to be
recovered. The number of
suspensions is now less than half,
and the amount of new debt added to
be recovered by Finance Service
Centre has reduced by approximately
£900k. This figure is based on the
actual new debt amount in Period 10
compared to the year-end period
figure for 2012/13.’ This amount
doesn’t include the legal costs or
resource that is required to chase
repayment.
Implementation of HORIce - will I Nil. (£100k TBC on TBC as
reduce the amount of losses to Post I one off cost output of output of
office and the amount that Iwas funded in I trial ending I trial
subpostmasters and operators have I Q4 12/13. Oct 2014. ending Oct
to re-pay by ensuring intervention Whilst we 2014.
7 Whilst the current agent debt has increased by £600k, the former agent debt has decreased by £1.5m, providing
a net figure of £900k.
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happens sooner to prevent losses anticipate
escalating into larger amounts. In that quicker
one case alone where losses were access to
perpetrated by the subpostmaster’s better data
son over the space of a year could
totalling £185k, the activity he initially
was doing to facilitate the fraud increase the
would have been evident within the amount of
space of possibly two months losses
instead of a year identified
in the short
term, the
overall
average
value of
losses
identified
will
decrease
over time.
6.KEY RISKS AND DEPENDENCIES
Because the majority of operating cost reduction benefit is delivered through a
reduction in resource, then there is a risk that the cost may be taken out of the
specific process area but not off the bottom line of the overall business. This could
be particularly evident where CWU represented grade jobs are removed and we seek to
exit via the voluntary redundancy process. Compulsory redundancy may need to be an
option considered.
The Network Transformation Programme also makes it difficult for some operating cost
benefits to be fully realised immediately. For example, the new contractual processes
will result in a decrease in the number of contractual cases that need to be managed,
but the upsurge in NT recruitment cases means that full-scale cuts in resource may
not happen immediately.
This Programme is as much about culture and behaviour as well as processes and
systems. If the guiding principles are not embedded into the organisation, then there
is the significant risk that subpostmaster engagement will not improve and the
relationship between Post Office and its subpostmasters worsens.
The Programme is also dependent on other projects which are:
* Project Sparrow. The two Programmes need to be closely aligned to ensure that
all the gaps and issues identified in mediation cases have been resolved. The
prosecution policy which the Programme will define will also have a direct
impact on the action taken with subpostmasters to recover losses. The business
as usual complaints process and the independent resolution of future cases also
needs to be aligned.
e Business Transformation. The Programmes need to ensure that there are no
double-counting of benefits regarding operational cost reduction. Meetings
between the two Programmes have taken place and Business Transformation is
fully aware of the scope of the Branch Support Programme. It has been agreed
that the Design Partner will not spend time investigating the areas already
completed by Branch Support, which potentially will reduce the costs in
Business Transformation, but will spend time with the Programme to ensure
business processes are mapped consistently and the operating models being
proposed align with the overall blueprint of the Business Transformation
Programme. The timeline of the two Programmes and the fact that Branch Support
will transfer into business as usual by the end of March 2015 means that we
cannot wait for a CRM tool to be developed by the new Partner. However, what we
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will do is ensure that the Programme is fully aligned with the IT strategy of
the Business Transformation Programme.
* Network Transformation. The new policies and processes created within the
Branch Support Programme will support the new operating models.
® Branch Counter Refresh/IT Roadmap. Some of the improvement opportunities
required to support branches, such as having the ability to self-help more
successfully and interacting with the support functions in a more engaging way
will only be delivered once Horizon moves to a different web-based platform.
The estimated timescales for this are between 2015 and 2017.
* Digital Programme. A big focus of the Branch Support Programme will be to
provide subpostmasters and operators with alternative channels for training and
support, namely a digital channel. Therefore the Programme needs to ensure that
g towards a common digital platform. There are already close links
ital Programme as they are assisting in producing an on-line
Regulatory Compliance channel for new entrants.
The Branch Support Programme will ensure it remains aligned with other Programmes
through the governance required by the Programme. Progress will be reported at the
Network Transformation Committee, ExCo and POL Board. The Programme Director is a
member of the Business Transformation Committee.
SUMMARY FINANCIALS
Incremental Profit & Loss (€) 2014/15 2015/16 2016/17 2017/18 2018/19
Incremental Revenue B - = 2 =
Recurring benefits 5 £4,030,000 I _£4,030,000_I _#4,030,000 I _£4,030,000
Recurring costs : (£175,000) _I_(£175,000)_I__ (£175,000) _I__(£175,000)
Lease Rental 5 - - - -
Group Recurring PBITDA = £3,855,000 I £3,855,000 I £3,855,000_I £3,855,000
(One-off Costs (OpEx) — Operating : - = - =
Group PBITDA : £3,855,000 I £3,855,000 I €3,855,000 I £3,855,000
Depreciation - = = =
(One-off Costs (OpEx) — Exceptional (€8,503,400) : = : 7
Group PBIT (€8,503,400) I £3,855,000 I £3,855,000 I £3,855,000 I £3,855,000
Incremental Cashflow (£) 2014/15 2015/16 2016/17 2017/18 2018/19
Recurring PBITDA (as per above) : £3,855,000 I £3,856,000 I £3,855,000_I £3,855,000
Other Change in Working Capital s - - 5 ©
Group Cashflow from Operations : £3,855,000 I £3,855,000_I £3,855,000 I £3,855,000
(One-off Costs (OpEx) (€8,503,400) - - e e
Capital Expenditure (CapEx) = : : = 5
Total Cashflow (€8,503,400) I £3,855,000 I £3,855,000 I £3,855,000 I £3,855,000
8. KEY PERFORMANCE INDICATORS
Current End-State Achieving the End-state
This will be achieved by adopting the
“right first time” approach to:
© Recruiting the right people
poet teen ¢ Engineering products and processes
reduction to remove the opportunity for
errors and the amount of
Transaction Corrections issued
Operating cost
¢ Delivering training and support in
8 Calculated based on the teams within scope who provide support to branches. Includes the Crown structure.
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a more effective and cost
efficient way
¢ Having sight across all branch
contact to ensure effective issue
resolution. This will also enable
the business to understand true
workload and make the relevant
efficiencies
¢ Reducing former agent debt
A full breakdown of the individual work
stream activity and the associated
benefits along with assumptions are
included within Annex 7.
Adapting the process for how branch
investigations are carried out. The new
approach will be to keep the
subpostmaster in post while
investigations are carried out, unless
there is a risk to customer, funds or
brand damage.
Number of ¢.200
subpostmaster suspensions
suspensions for 2012/13
60 per
year
* Revising the suspension approach
to reduce the amount of new former
£2.67
: agent debt.
million ;
Agent debt Parvin £1.6m ¢ Intervening earlier with branches
2012/13 to reduce the amount of current
agent debt
25%
reduction
per
period
ce. 47000
calls per
period
Reviewing the call types into NBSC and
undertaking root cause analysis of those
call types to reduce the calls.
Reduction of
calls into NBSC
Introducing HORIce will enable earlier
branch intervention which will reduce
ae the average losses at audit.
reduction I 392 branches out of the 3372 branches
Reduction in £740 audited last year had a loss that
0 in number ;
average loss at average I o% pranch I exceeded the average loss. 75 branches
audit loss losses I exceeded the £10k loss mark, with the
over ssok I Laxgest loss being £179k. HORIce will
test what intervention is required to
reduce those losses and therefore bring
down the average loss at audit.
Migrating regulatory compliance training
onto an on-line platform to enable a
more flexible and tailored approach to
testing compliance. Making all
transactional training available on-
line.
Satisfaction with
95% 95%9
Whilst the Programme will not have Agent Engagement as a Key Performance Indicator,
we will be tracking the results of the elements of the specific questions which are
related to branch support within the Agent Engagement Survey.
9. SENSITIVITIES/TOLERENCES
°® Due to the fact that on-line training modules are a new concept for most agency branches, the target for year 1
would be to maintain satisfaction levels with a view to increase this in year 2.
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E.G 10% Growth I Worst Case (1.2) 22.9 No pay back
ESS 20 % Growth I Factor used 0.5 Son BES
E.G 25% Growth I Best Case Lad 39.2 1.8
E.G 18% Growth I To Hit 0 30.0 4.0
Hurdles
INVESTMENT APPRAISAL (IA) COMMENTARY
Co]
Key Considerations
cd
Conclusion and Recommendation
cl
[Name]
[Head of Investment Appraisal]
[Month/Year]
ANNEX 1. Programme Workstreams
Name of work Objective Level of change required
stream
Training To provide co-ordinated, Full review of who, where, when,
flexible, effective training to
post office branches, delivered
by highly trained individuals
supported by a multi-channel
approach.
what and how we train our
ludes IT development
and structure review.
branches.
Business change processes for
delivery of training
People change required for
delivery of training and the
accountability
Communications I TO ensure all of our
communications are personal,
simple, co-ordinated, relevant,
accurate and timely. They must
also be signed off by a release
authority, be measurable and
visible to all.
Full review of how we interact
with branches and development of
new channels or materials to
support that interaction.
Specific communications to support
the visions of the other work
streams.
Cultural change to embed the
principles across the business
To provide effective support and
meaningful MI to colleagues,
customers and clients, enabling
sales and improving support
Transaction processes to make
things easier for customers and
branches
Tools for branches to access help
and support, and to improve the
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Name of work
stream
Objective
Level of change required
experience
Tools and systems for internal
teams to support and record
contact
Systems and MI in place to reduce
inefficiency among teams
Behaviour to support new ways of
working
The information that is provided
Pre- To ensure our agents are
appointment consistently informed, to applicants and how we share
supported, knowledgeable, that
confident and feel part of Post
Office Ltd. To ensure that our How we support people through the
leavers in this process also process, both from a structure and
feel informed, supported and behaviour process
valued.
The process of how we attract and
recruit agents
The process of how we support
agents leaving
Operational To ensure consistent, quality, Structure of the operational
Support efficient and co-ordinated support model and change in
support is provided to branches I business process
to ensure they can serve
customers effectively and have Development and deployment of
their issues resolved in a tools and technology to support
timely and quality way. the model
Way we deal with suppliers
Streamlining of transactions
causing business inefficiency
Behaviour towards our branches
Physical To engage and support our Structural review of support and
Support branches effectively to ensure I necessary transition including
great customer service is recruitment, assessment and
provided and business growth. transition
Roles and responsibilities,
including behaviours
Development of different skill
sets
Leavers To ensure that quality and Review of the suspension process,
Process consistent support is provided I policy and contractual approach
to branches, issues are
investigated before contractual
Behavioural change in how we treat
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Name of work Objective Level of change required
stream
decisions are made and agents agents with issues
supported during the exit
process and Structural change to support
processes
Approach to how we support agents
with issues with assistants
HORIce To develop a proof of concept How we gather, store and analyse
that tests the availability of branch data
near real-time data to inform
earlier intervention with Tools and systems used to gather
branches who are displaying data
unusual behaviour, especially
with regards to branch Capability of teams to use and
accounting. interpret data
Intervention and management
processes
Hagqulavery To develop an on-line solution I Replacement of manual process for
Compliance on- I for colleagues, subpostmasters all new entrants with on-line
line training and their assistants to complete I modules
regulatory compliance.
Migration of all regulatory
compliance training from Horizon
platform to on-line solution
ANNEX 2. KEY RISKS AND MITIGATIONS
Risk Factor Impact Mitigation Mitigated Financial
Impact Impact
Resource savings mayIBenefit Manage the Key owners £4m potential
not be realised by Ireduction Iresource plan of Ialready VR costs
2015 if there are teams with HR to Jengaged with
not enough people ensure that we the Programme
willing to leave the have the right Iand the policy
business. people in the of recruitment
right roles and Ifreeze is
vacancies are already in
not filled. place
Whilst the systems [Benefit Guiding Engagement of
and processes may _Ireduction principles of all key people
improve, the cultureIin terms of Ithe Programme across the
of the organisation Isubpostmast Jhave been organisation
does not change ex established as _Iand their
engagement Iwell as a teams is
“vision” for already in
behaviours with Iplace. The
measures has Communications
been created.
LEAN approach is
also been
adopted within
the work streams
work stream
will also be
looking at how
we bridge the
gap between
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Risk Factor
Impact
Mitigation
Mitigated
Impact
Financial
Impact
to try and embed
culture of
continuous
improvement
Post Office
and branches.
The drive to achieve
Network
Transformation
conversion numbers
drives the wrong
behaviour, resulting
in the wrong type of
person being
appointed
If people
don’t
realise
what they
are signing
up to, this
increase
the risk to
future
claims for
mediation
We are working
closely with the
NT Programme to
ensure they are
aware of the
guiding
principles of
the Programme,
and reviewing
their processes
which impact
this area.
Revised
recruitment
process
Subpostmasters and
operators don’t
embrace new training
methods
Benefit
reduction
A series of
pilots will be
undertaken to
test usability
before full
roll-out. On-
line training
will only
replace training
modules where it
is appropriate
to do so.
Operating
procedures which
can only be done
on a face to
face basis will
continue to be
done on a face
to face basis.
4000
subpostmasters
and operators
already active
on subspace
on-line
Revised approach to
suspensions could
increase losses in
network or un-paid
debt. It could also
move former agent
debt into current
agent debt and
prolong repayment.
Benefit
reduction
Tracking
mechanisms in
place to
understand the
end to end
journey and the
impacts on each
metric. Support
provided by
HORIce will also
enable us to
identify if
branches are
undertaking
certain activity
to hide gains
they have
created to pay
back losses. A
revised policy
for large debt
may also need to
HORIce is
effective in
early
detection
10 Figure provided by Digital Programme and EMS who manage the “single-sign on” site for Post Office.
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Risk Factor Impact Mitigation Mitigated Financial
Impact Impact
be introduced.
Headcount may be Benefit HR is closely Alignment of
reduced before new Ireduction Iinvolved with milestones
processes are the Programme
embedded and an
Organisation
Design plan is
being developed.
Also, the
Programme has to
start
documenting
business
policies and
processes which
will reduce the
chance of
activity not
happening.
HORIce may not be [Benefit The pilot will
the tool required byIreduction Ienable Post
the business to Office to
reduce fraud or non- understand the
conformance requirements or
a replacement
for HORIce if
HORIce is not
able to provide
the
requirements.
ANNEX 3. PROJECT MILESTONES
Work stream Milestone Date
Programme Governance I Lower level work stream plans in place to deliver I March 2014
changes
HORIce Build of HORIce commences May 2014
Pilot of HORIce commences May 2014
Leavers Process Revised approach to contractual breaches launched I March 2014
Pre-appointment Revised approach to recruitment process launched I September
2014
Iv Begin programme of Horizon transaction I March 2014
improvements
IT requirements fully specified, documented andI June 2014
agreed
Begin migration of support functions onto common August
platform 2014
Training Build and testing of on-line training modules December
2014
Full roll-out of on-line training modules January
2015
Communication Complete research into branch communications I June 2014
issues
Agent engagement survey launched to the network September
2014
Physical Complete operations model design piece June 2014
Support/Operational [Begin migration to new operating model September
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Support 2014
Complete operating model migration March 2015
Programme migration I Branch Support Programme migrates into business I March 2015
as usual
Programme PIR is concluded May 2015
ANNEX 4. CONCURRENCES
Directorate/Area of Name, Title Version Date
Responsibility Reviewe I Agreed
a
Project Sponsor Kevin Gilliland, Network and Sales v.8 2.5.2014
Director
Sponsoring Director As above
Programme Director Angela Van Den Bogerd v.8 2.5.2014
Programme Manager Gayle Peacock v.8
Role — Concurrence
Finance Sharon Bull, Head of Finance, v.8 9.5.2014
Network
Security John Scott, Head of Security v.8 8.5.2014
FSC Rod Ismay, Head of Finance Service v.8 7.5.2014
Centre
Operations Lesley Sewell, Chief Information v.8 8.5.2014
Officer
Marketing Paul M Brown, Head of Commercial v.8 9.5.2014
Network Tan Kennedy, General Manager Network v.8 7.5.2014
Transformation Transformation Programme
Compliance Dave Mason, Head of Risk Governance v.8 9.5.2014
Business Brian Deveney, Business v.8 9.5.2014
Transformation Transformation Programme
Programme &
Procurement
Network Julie Thomas, Head of Crown Retail v.8 8.5.2014
Operations
Agents Policy & Craig Tuthill, Head of Network v.8 6.5.2014
Contracts Services
Legal Rodric Williams, Legal Services v.8
BR Sarah Malone, Head of Organisation v.8 7.5.2014
Development
Strategy Michael Brown, Integration Lead, v.8
SPMO
ANNEX 5. FINANCIAL DETAIL
Summary of one-off costs EXCEPTIONALS - 2014/15
Costs PB 2014/15
Ge 1 I P2 p3 I pa PS P6 P7 P8 Po pio I P11 I P12 I torar
Resourc 95.1 I 95.1 I 95.1 I 95.1 I 95.1 I 95.1 95.1 I 95.1 I 95.1 I 95.1 I 95.4 I £1,046,4%>
e costs
Re- 100 50 50 50 £250
writing
HNG
op 1oo I 75 75 £250
model
resoure
e
‘1 Full breakdown of costs can be found in Annex 6.
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Trainin 20 20 20 20 20 20 20 20 20 10 10 £200
g&
comms
On-line 300 250 £550
trainin
g
platfor
m
IT 500 500 £1000
solutio
n build
IT 500 £500
solutio
n
hosting
ete
Web- 35 £35
site
changes
for
appoint
ment
Legal 50 50 50 50 50 £250
fees
Total 365. I275. I 790. I165. I 465. I1165. I 115. I 365. I 165. I105. I 105. I 4081.4
1 1 1 1 1 1 1 1 1 1 4
ANNEX 6 - RESOURCE COST INFORMATION
ROLE GRADE NUMBER I DURATION I COST
Programme Director SLT 1 11 mths £151,020
Programme Senior Lead Level 4 1 li mths £52,937
Programme Operational Lead Level 3b 1 11 mths £43,542
Programme Manager £640 day rate Ii 11 mths £140,800
PMO £440 day rate I1 11, mths £96,800
Business Analysts £472 day rate I 2 11 mths £213, 694
IT project manager £480 day rate I1 Full year I £105,600
IT Architect £720 day rate Ii 16 weeks I £57,600
Testing resource £440 day rate Ii 10 weeks I £22,000
Branch User Forum Co-ordinator I Level 3A 1 12 mths £57,000
Programme T&S £105, 417%
Total £1,046,410
ANNEX 7
’? Includes Branch User Forum T&S.
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Bim
Cost benefit
information for busine
Remember to update the headers & footers! (Add project title and doc classification
to footer.)
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