POL00446790
POL00446790
Confidential
POST OFFICE GROUP EXECUTIVE
Branch Support Programme Improvements Update
1. Purpose
The purpose of this paper is to:
1.1. update the Post Office Executive Committee on the improvements made to the
support offered to postmasters as a result of the Branch Support Programme.
2. Improvements to Training
2.1. The content of the classroom training provided to new postmasters has been
refreshed with more focus on:
e balancing and how to look for discrepancies when they occur within branch.
¢ contractual obligation regarding discrepancies that do occur and how to
process discrepancies correctly
e explanation of False Accounting and the potential consequences i.e. criminal
offence
2.2. A revised balancing guide has been introduced to help new postmasters
balance their accounts correctly; this is a hand-out from the initial training
provided to new postmasters and assistants where appropriate. A further best
practice guide to identify discrepancies in branch has been introduced. This is
a hand-out at on-site training for new postmasters and follow-up visits where
branches are experiencing balancing difficulties.
2.3. A revised training offer that replaces approximately two thirds of the
classroom training for new operators with online training to be completed prior
to attending classroom training has been designed. Partnering with Capita
Digital Learning, we have created multi-media online learning, including video,
games and quizzes to ensure to appeal to the broad range of end users that
will consume content. The on-line training for Postmasters, and their
assistants went live on 5" February 2015.
« The learning material wraps in messaging around customer service and sales
conversations, and has been developed with a cross-Post Office team
including Crown, Network and Commercial teams. The first classroom training
for the blended training offer takes place w/c 23rd February.
« To ensure that each postmaster has a smooth onboarding journey, access to
compliance training and to the product training is available via SubSpace
Online. Options to extend the availability of the on-line training are being
scoped with a view to delivering in Q2 15/16.
BSP Improvements update Angela Van Den Bogerd Page 1 of 4
12th February 2015
POL00446790
POL00446790
Confidential
2.4. I Compliance testing is a precursor to new postmaster training and is an annual
regulatory requirement for all branch staff. This is now being provided on-line
to the branch network replacing the traditional paper workbooks.
3. Balancing/Accounting Support Improvements
3.1... A refreshed approach to supporting branches with discrepancy issues was
introduced in 2013. Where NBSC is unable to resolve a caller's query/issue
this caller is referred to the Branch Support Team who can provide more in
depth telephone support to the branch. This team also assesses whether on-
site additional support or further training is required and will organise if
appropriate. The learning from the Mediation Scheme investigations is that the
recording of the support given needs to be consistently documented. A
revised approach will be introduced in Q1 15/16.
4. NBSC Improvements
4.1. I The volume of calls from branches is now assessed by the Network Business
Support Centre (NBSC) with the branches that have a higher than average
call volume being proactively contacted by the Branch Support team to
understand the reason for the high level of calls; establish what extra support
can be offered and whether any changes need to be made to training etc.
4.2. Anew approach has been developed to analyse the calls received by NBSC
to identify the root cause of the issue; to identify the solution for the branch in
the first instance and implement wider business changes if appropriate eg
content of and method of delivering new product training.
5. Managing Postmaster Material Contract Breaches
5.1. The suspended termination approach was launched in April 2014 to deal with
postmasters where mitigating circumstances are such that it is inappropriate
to terminate the contract. The Postmaster remains in post on the condition
that if a further material breach of contract occurs in an agreed period (set by
the nature of the first breach and typically a year) then the contract termination
may be triggered. Postmaster suspensions are running at 33 at period 10. 112
postmasters have been kept in post that would probably been suspended pre
policy change. A condition of remaining in post is that the postmaster makes
good the audit deficient. This has resulted in £552k being made good by
period 10 which pre approach change would have transferred to agent debt.
6. Horizon System Transaction Improvements
6.1. The transaction for customers paying by debit or credit card for bureau
transactions was changed in Sept 2014. The transaction now includes 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. Previously, the branch would have to remember to request a
reprint and would be liable for the loss if they failed to provide it to Finance
Service Centre. Postmasters were held liable for £65k in 13/14 (average per
branch £2.5k). Since introduction no chargebacks to Postmasters have been
made.
6.2. The end of day cheque remittance process has been reviewed and a new
solution to drive out errors has been identified. This is scheduled for the next
BSP Improvements update Angela Van Den Bogerd Page 2 of 4
12th February 2015
POL00446790
POL00446790
Confidential
software release in May 2015 reducing calls into NBSC (650 per month) and
the Transaction Corrections (c.570 pm periods 1-5 2014) issued by Finance
Service Centre. Efficiencies in resource realised as a result are £86k pa
7. HORIce
7A.
The pilot has proved that HORIce is an effective and an efficient tool — and an
improvement on anything we have had to date - for focusing on any one
particular branch and extracting the information for a number of purposes
including those below. Comprehensive list of benefits is at Appendix 1.
investigating accounting anomalies whilst considering whether to
precautionary suspend a postmaster.
NBSC accessing branch data when assisting a branch with an accounting
problem so that they establish exactly what the branch has done rather than
relying on what they say they have done. This results in the branch being
provided with the correct advice rather than advice based on the information
from the branch.
HORIce reports raising flags to support branches and identify branches for
further checks by Grapevine team. This results in telephone calls being made
to branch to establish whether there are any training needs. If fraud is
expected an audit will be arranged.
7.2 We are currently working with Fujitsu to refine the outputs of HORIce so that it
highlights anomalies in branch performance across the whole network with a
view to moving to risk based audits only which is a more targeted and efficient
model.
8. Recommendations
The Group Executive is asked to:
8.1. note the update on improvements as a result of Branch Support Programme.
Kevin Gilliland
12" February 2015
BSP Improvements update Angela Van Den Bogerd Page 3 of 4
12th February 2015
POL00446790
POL00446790
Confidential
Appendix 1
HORIce Benefits
Reduction in Audit/Special Audits (Grapevine to supply numbers) as Contract Advisors
and Grapevine team can monitor branches remotely and/or verify transaction balancing
information
Contract Advisors able to verify information given at time of audit from HORIce to
improve decision making if loss identified.
Improved quality of support to branches-Enables queries to be answered at first point
of contact (NBSC) where previously some enquiries would have been escalated to
other teams or for intervention. (Examples answered to date include alleged rogue
stock unit being set up, ATM balancing verified, duplicate Horizon transaction entries
and phantom cheque entries explained.
Visibility of data not previously available- For example internal stock unit transfer
information, Cash declaration, Branch Trading Statement, Mails despatch, TC
information now available.
6 months data available on most HORIce reports previously only 3 months data
available in Credence.
Near real time transaction data available, (Credence data available next day).
HORIce reports are now raising flags to support branches and identify branches for
further checks by Grapevine team. (In last week since new reports made available 5
branches allocated for audit, 17 offices telephoned and supported with training on cash
declarations, 7 branches flagged to National Multiple Partners for support or action).
Coin safe saving - £1310 saving per office 4 requests already avoided. (Total saved
£5240).
Assisted Rollovers for Horizon, avoided cost (£1500 per branch £16,500 to date).
10
FSC-Less Fujitsu support needed to investigate enquiries.
11
Reduction in time spent sending ARQ requests to Fujitsu.
12
Assists with Police/Security manager requests for info.
13
Ability to identify branch users onsite prior to contact. Branch Standards Team to track
contact information for time saved on aborted calls. (For example -Regulatory
Compliance chase up/Failed mystery shopper/Dangerous Goods scanning
performance/Sales capability Branch Standards to supply numbers.
14
Ability to check automated bill payment enquiries. Customer Care Unit able to speed
up customer enquiries and avoid the need to escalate certain enquiries to Finance
Service Centre.
BSP Improvements update Angela Van Den Bogerd Page 4 of 4
12th February 2015