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Deloitte.
Postmaster Journeys
Post Office Limited
Final Report - March 2021
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Important Notice
This document (“Report”) has been prepared by Deloitte LLP (“Deloitte” or “we”) for Post Office Limited (“POL”) in accordance with our engagement letter dated 4 January
2021. The report is produced solely for the use of Post Office Limited for the purpose set out in the Engagement letter. Its contents should not be quoted or referred to in
whole or in part without our prior written consent except as required by law. Deloitte LLP will accept no duty or responsibility to any third party, as the report has not been
prepared, and is not intended for any other purpose.
The Report has been prepared on the basis of the limitations set out in the engagement letter and on page 13 and 92. The scope of our services and any deliverables will be
limited solely to the Services set out in this engagement letter. We will make no representations in respect of and will not consider any other aspect of your operations.
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Contents
Page
Executive Summary
1.1 Executive Summary 6
1.2. Background, Scope and Approach 12
1.3 Summary of Urgent Priority Findings 14
1.4 Summary of High Priority Findings 15
Key Themes
2.1 Summary of Thematic Findings 18
2.2 Governance 19
2.3. POL Culture and Staff support 20
2.4 Data and Management Information 21
2.5 POL and PM Communications 22
2.6 Systems and Technology 23
2.7. Cash and Products 24
2.8 PM obligations and disputes 25
2.9 Roles and responsibilities and Organisational Design 26
2.10 Proactive support to PMs 27
Roadmap
3.1 Prioritised Roadmap 29
Detailed Findings
4.1 Detailed Findings - Overview 36
Governance
5.1 Overview 38
5.2 Improvements Identified 40
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Contents (continued)
Contents
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Page
On-Boarding and Early Days
6.1 Overview
48
6.2 Improvements Identified
51
6.3. Improvements Noted
58
Business As Usual (Continuous Activities)
7.1 Overview
61
7.2 Improvements Identified
62
7.3. Improvements Noted
74
Business As Usual (Issue Resolution)
8.1 Overview
77
8.2. Improvements Identified
79
8.3. Improvements Noted
84
Off-Boarding
9.1 Overview
87
9.2. Improvements Identified
88
9.3. Improvements Noted
91
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Contents (continued)
Contents Page
Appendices
Appendix A— Terms of Reference 93
Appendix B — Prioritisation Ratings 94
Appendix C — Summary of Meetings Held with POL Leadership 95
Appendix D — List of Stakeholders Engaged 96
Appendix E — Table of Abbreviations 98
Appendix F - Data and Management Information 99
Appendix G — Systems landscape 100
BE
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1.1 Executive Summary
Introduction
In January 2021, Deloitte was commissioned to undertake a piece of work for Post Office Limited (POL) looking at the extent to which the organisation has moved towards its stated
aim of ‘putting Postmasters (PMs) at the heart of the business’. Postmasters operate their businesses through a variety of different business structures. Therefore, a reference to a
Postmaster or PM in this report could, depending on the circumstances, mean an individual, a limited company or a partnership. In the case of a limited company or partnership,
the recommendations in this report will typically apply to the partner/director or employee with main responsibility for running the branch, and, in the case of individuals who do
not work in their branch regularly, many of the recommendations in this report apply as much to a branch manager or officer in charge of operating the branch on their behalf as to
the individual who has entered into a contract with Post Office.
This work builds on findings and improvements made by POL as a result of both the Common Issues Judgement (Cll) and Horizon Issues Judgement (HIJ), as well as looking at wider
improvements that have been (or should be) made to mitigate the risk of PM detriment. This work looks at cross cutting organisational themes such as culture, systems and
management information in the governance section (see pages 38-47) as well as specific potential improvements across each element of the PM journey from on-boarding to of f-
boarding (see pages 48-91).
The work was completed between January and March 2021 with this report summarising both improvements made over the last 12-18 months as well as making recommendations
around areas for further focus and investment going forward - setting out the position and progress on findings at the beginning of March 2021. Each finding is classified as urgent,
high, medium or low priority based on the potential PM detriment (see table on page 8 for definition). These findings were based on evidence obtained from across the business
and through a series of interviews and conversations with key stakeholders. This work did not include detailed systems assessment, testing or verification of the timing of
improvements made, planned and in progress, nor did it include direct contact with PMs (see section 1.2 for full details of scope, approach and limitations and Appendix D those
spoken to as part of this process). All findings and recommendations have been discussed and verified with business owners.
For each finding the report makes associated recommendation(s) setting out proposed activity to address the finding, as well as specifying named responsible and accountable
individuals. The recommendations are structured into an overall roadmap of activity (see section 3). This roadmap has been developed to prioritise urgent and high-risk areas of
activity around preventing PM detriment. This work did not take into account cost or resourcing implications and POL will need to consider these further in finalising
implementation plans.
Context to the work
Post Offices are a key part of the UK high street and supporting PMs to succeed and thrive is key to the long-term success of the organisation. However, over many years, layers of
culture and working practices across POL have built up that have considered PMs in part as a means to securing network coverage, with the organisation focussed on moving
towards a more commercial footing rather than consistently prioritising support to, and interactions with, PMs. Related to this there has also been a lack of significant or ongoing
investment in information technology or wider processes to support PMs, meaning that the working practices in branches are outdated and not consistent with elements of good
practice that would be expected across comparable sectors.
Over the past two years there has been positive change in the way that POL looks to support PMs. A good example of this is the introduction of area managers (AMs) around two
years ago - a move almost universally recognised by PMs as a huge step forward in terms of the support they receive. On the receipt of the CU, Post Office undertook a significant
programme of work led by the Operations Director to implement improvements to both comply with the judgement but also to make things easier for branches. Further
improvements have also come about since the launch of the new Purpose statement, and ongoing organisation changes, including senior management organisation re-design
rolled out from September to November 2020. These positive changes have helped to simplify and improve POL interactions with PMs and to start to change culture and ways of
working. The HU and Cl have also acted as catalysts for change making a number of specific recommendations that the business has been taking forward. The linkage and
relationship between this piece of work on ‘PM Journeys’ and these wider activities is shown in Figure 1 the following slide.
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1.1 Executive Summary
Scope
This PM Journey work looks wider than the specific recommendations from the Cl to call out a range of potential further improvements that have been, and could, be made
across the PM journey to support the strategy of ‘Putting PMs at the heart of the business’. This is aligned with ongoing improvements, including work taking place as part
of the wider organisational redesign activity and through the culture change programme.
Following the HU and CU a number of operational and wider improvements have taken place across the organisation. Work completed by Norton Rose Fullbright (NRF) has
looked at the operational progress in meeting specific requirements from the CU and remaining gaps, with Internal Audit tracking progress against closing any NFR found
when reviewing the operational improvements made. Similarly, KPMG has undertaken work to look at progress in addressing HlJ requirements, and there have been ongoing
improvements on some of the specific technical Horizon issues raised in the HlJ. This report does not repeat specific findings from these activities but does note the work
being progressed and the tracking of progress that is now taking place through the Improvement Delivery Group (IDG).
Figure 1: How PM Journey fits in with wider work across the network
NRF report looking at KPMG report into the .
Reporting and progress made to progress made to PM Journeys work — Tracking of ae a
recommendations address CU and address 6 HITJ Report this report implementation pove ment De ively Group,
identify any gaps issues (draft 26" (March 2021)
(23'4 June 2020) February 2021 )
actions (IDG), from February 2021
Common Issues Horizon Issues Wider strategy to put ore Deven care
Drivers for change Judgement Judgement PMs at the heart of Supporting fei ee
Requirements Requirements programmes of
work
In addition to these areas, business owners have been undertaking reviews as part of business as usual and have changed and improved ways of working. The creation of the
Historical Matters Unit (HMU) has also added focus and momentum to activity to address historic issues (not covered by the scope of this Project).
This work has been taking place over the last 12 months against a backdrop of a global pandemic, with the organisation adapting to new ways of working and supporting the
safety and wellbeing of PMs and POL employees whilst maintaining, and in many cases enhancing, PMs’ ability to improve the support and offerings provided to customers.
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1.1 Executive Summary (continued)
Overall Findings
We have called out 44 areas where we have noted improvements that have been made over the last 12-18 months. These improvements span right across the business and
include improved onboarding processes (e.g., improvements to initial assessment and training processes) guidance and support for PMs (e.g., through the PM support guide, and
improved branch support tools) and communication (e.g., improved call centre scripts and wider PM communications) introduced over the last 12 months. There is evidence of
increased focus and momentum across the organisation to deliver improvements and ‘Put PMs at the Heart of the Business’ with many of the findings and recommendations set
out in this report being addressed through activity that has started and been prioritised over the last three to six months. Examples of positive changes implemented over the two-
month period that this work has been underway include setting up the new ‘Voice of the PM’ Forum, changes and further improvements to direct communications with PMs and
the progress being made as part of the culture change programme to instigate activity such as pairing of senior leaders with PO branches to facilitate understanding and knowledge
sharing
There remain significant opportunities for further improvements in POL interactions with PMs. Some of the findings raised as part of the HlJ and CU, (e.g. transaction disputes and
the defining and communicating of an appeals process for PMs who have a dispute with) have not yet been fully addressed (though we note action is in progress), and several
wider areas identified as having potential to go further to make a real difference to PMs are not yet in place. The cultural shift needed to support a focus on the PM is key to this
and has not yet been fully communicated or embedded across the organisation
Specifically, we raise 6 urgent priority, 13 high priority and 27 medium priority findings, with Figure 2 below showing how these are spread across different elements of the
PM Journey. The urgent and high priority findings are summarised in Figure 3 alongside an indication of progress made to date in addressing these.
Figure 2: Table of findings and improvements identified, by rating and work stream
Number of finding d by work stream
Rating Description On-Boarding& I BAU:Continuous I BAU: Issue omscedn rata
Early Days Activities Resolution bd
Urgent priority, must fix issues — non-compliance with the
outcomes of the CU ruling and / or where there is a
detrimental impact on PMs, where detrimental means any
0 0 2 3 1 6
form of PM harm —including where that there is a significant
contractual issue and, a negative financial impact and/or an
impact on PMs from a relationship or wellbeing perspective.
There is a risk of potential detriment to Postmasters, or a 5 0 4 3 1 13
significant reputational risk to POL.
h ar 7
This change would significantly improve the Postmaster p ; a , 4 7
experience
It would be beneficial to make this change to improve the 0 6 ; , ° 7
Postmaster experience.
Total 7 12 23 11 6 59
Improvements noted as part of this work that have been
made in the last 12-18 months.
- 13 21 9 1 44
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1.1 Executive Summary (continued)
Overall, the majority of findings (particularly those rated as urgent or high priority) raised in this report can be grouped into nine thematic areas, which are
summarised below and set out in detail in Section 5 of this report. These align closely with the areas flagged in the recent PM consultation survey as priorities for
improvement.
(@)) Governance
POL Culture and Staff
Support
Data and Management
Information
POL & PM Communications
Systems and Technology
Cash and Products
PM Obligations and Dispute
Resolution
Roles and Responsibilities
and Organisational Design
Proactive Support to PMs
®®@®™OO@®
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There are currently limited mechanisms in place to review POL performance in providing services to PMs, nor a single overarching
governance forum to help oversee and drive required PM related decisions and actions through to completion. The Voice of the Postmaster
Forum recently created is a step forwards, but we recommend a wider risk-based governance forum focussed on PMs, building on the
current IDG.
The culture developed across POL over many years has not focussed on PMs. The new purpose statement and plans currently underway as
part of the culture work stream is starting to drive improvements. However, there is a long way to go to truly achieve this shift in attitude.
Developing detail below the purpose and continuing to communicate expectations across the business will be key in making further
improvements here.
Although POL has access to a significant amount of data, this is not used proactively to drive insight to support action and decision-making.
Whilst there is an overarching data strategy, there is no detailed plan below this nor funding/resources set aside to deliver against this.
Examples of areas for improvements include PM remuneration data and proactive sharing of branch performance with PMs.
There have been improvements in both operational communications (e.g. tone in letters to PMs) and more strategic communications, but
there is still more to be done to develop a communications framework and ensure consistency of messaging and approach to create the
appropriate balance between focus and use of a range of channels to communicate with PMs.
There has been a historical lack of investment in IT to support PMs and there are many known issues in Horizon which are being progressed.
Multiple systems are in use by different teams, and a combination of these systems are required to paint a holistic view of a PM at any one
time. This results in a siloed approach to working and the provision of disjointed support to Postmasters.
Cash handling is an issue frequently raised by PMs as a problem area. Cash forecasting to meet branch cash requirements is not close to good
practice and there is confusion and inconsistency around the support provided to PMs. Products such as Lottery and ATM are also flagged as
problem areas, with issues around transactions correction processes and manual cash processes representing key parts of this.
PM responsibilities are not always clear and, despite some simplifications, there is still huge complexity in the number of different contracts
and related obligations. The appeals and dispute process regarding contract terminations or suspension or for general issues, such as
transaction corrections, has not been clearly documented and communicated to PMs. SLAs have not been set for issue resolution processes
and there is also no effective monitoring in place for the efficiency or quality of POL’s response to issues raised.
Roles and responsibilities across teams supporting PMs are not always clear. The organisational design work in progress is making changes to
improve this and it will be critical to ensure that there is sufficient clarity and that changes are communicated effectively and consistently to
support their implementation and drive improvements.
There is opportunity to provide further support to PMs to help them grow and manage their businesses. Some data is currently shared, but
this is limited and not provided consistently meaning some PMs receive more proactive support than others. Training is not always aligned to
the needs of different PMs e.g, business improvement training to help in driving revenues is not provided to all branches.
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1.1 Executive Summary (continued)
Progress made to date
As well as the 44 areas where improvements have already been implemented, in approximately two-thirds of the recommended areas for further improvement we
noted that work was either already underway or has started during the duration of this project. Specifically:
* Out of the 6 urgent priority findings, 4 have activity in progress
* Out of the 13 high priority findings, 12 have activity in progress
* Out of the 27 medium priority findings, 17 have activity in progress
* Out of the 13 low priority findings, 8 have activity in progress
In addition, Internal Audit has been assessing the implementation status of the Norton Rose Fulbright (NRF) recommendations to address the CU findings. As of 10
March 2021, Internal Audit reported that 29/34 recommendations were complete, 4/34 were in progress (with a significant overlap with those called out in this report
e.g. around onboarding policies and procedures and operator engagement) and the remaining 1 had been postponed. Of those in progress all are reported as being on
track for completion at the end of March 2021. (Note: We have not independently checked or verified these findings as part of this Project).
Furthermore, we note that progress is being made on implementation of the HI actions through the work being undertaken through the IT teams and supported by
KPMG. However, aside from the high-level recommendations we make here about overall IT and systems strategy, and a small number of references to specific
technology fixes needed (e.g. finding BC3 around use of memo view for urgent communications), we do not list out or repeat progress and recommendations reported
in this area, as this was beyond the scope of this piece of work.
Suggested Roadmap
As well as identifying a number of thematic and specific findings this report also sets out a high-level roadmap for delivering the recommendations. This roadmap (see
section 3) sets out groups of activities against different topic areas and is broken down into three recommended time periods for completion:
* ASAP - To be implemented as soon as possible, with completion by May 2021.
* Short Term - To be implemented in the near future, after the ASAP improvements, by August 2021.
* Medium Term - To be implemented over the course of FY21/22, with completion reached before March 2022.
Where recommendations are by their nature more complex and require a longer-term action, we have used an arrow box to indicate that they will remain a work in
progress beyond March 2022.
On the whole, urgent and high priority findings are flagged to be addressed immediately, though we note that there are some findings, that while work can start, will
not be completed until later in the time period because of the complexity or reliance on third parties. Similarly, medium and low priority findings are typically included
later in the time period; however, some are grouped with more urgent issues where it makes sense to address them at the same time or where they represent a quick
win and can be addressed more immediately.
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1.1 Executive Summary (continued)
Closing down recommendations
Assuming that recommended actions from this report are completed in line with the targets set in the roadmap, the charts below illustrate how the status of findings will
evolve (please note we have broken down our 59 findings out in to 66 actions, as some findings contain both shorter and longer term actions).
Figure 3: Charts illustrating the progression of findings resolution
Total Incomplete Recommendation Total Incomplete Findings Total Incomplete Findings Urgent
Start of March 2021 By end of May 2021 By end of August 2021 I_I
High Hi
Medium II
i tow a
Complete
By the end of March 2022, only longer term actions should remain incomplete, such as: embedding cultural values and behaviours, implementing technology and data
strategies, plus any actions which cannot commence until after the period of time included within the Roadmap e.g. transition of ATM management to POL and review of
the Lottery agreement with Camelot.
This roadmap does not take into account cost or resourcing implications and POL will need to consider these further in finalising the more detailed implementation plans
to deliver against this. Meeting the timescales suggested will require investment and focus of the organisation both in the short term (e.g. through the shifting of
resources to urgent and high priority areas), and over a sustained period to genuinely drive change, particularly given that some elements of this (most notably, shifting
culture and addressing the technology debt) will take time.
Throughout the report, we have been clear to set out accountable and responsible owners for each action, as this is key to delivery. We recommend that this action plan
is delivered as a focussed programme or set of programmes of work going forwards with a single overall accountable owner and work package and work stream
leads. Progress should initially be reported to and monitored by the Improvement Delivery Group (IDG) as an interim measure and then moved to the new
(recommended) PM Governance forum, once this is operational.
Implementing these changes provides a real opportunity for POL to build for the better, moving towards its aim of ‘Putting Postmasters at the heart of the business’ and
supporting long term success for both POL and the PM community.
Post Office Horizon IT Inquiry to establish a clea
the implementation and failings of
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1.2 Background, Scope and Approach
BACKGROUND AND OBJECTIVES
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SCOPE
Post Office Limited (‘POL’) has a core strategic aim to put Postmasters (‘PMs’) at the
heart of its business. As part of the implementation of this strategy, POL needs to
understand the extent to which the interests of PMs’ have been embedded across POL,
and where additional activity can be taken forward to better take into account PMs’
needs.
In January 2021 Deloitte (referred to as ‘we’ throughout this report) was commissioned
by POL senior leadership to undertake a piece of work looking at the ‘Post Master
Journey’ (the ‘Project’) and areas of interaction between POL and PMs, to consider the
progress made by the organisation towards it aim to ‘Put Postmasters at the Heart of the
Business’.
This Project involved the consideration of core activities and overall end-to-end
processes across POL in relation to PMs - looking at the extent to which there have been
improvements made over the last 12-18 months, where there are activities in progress
or planned, and where there are existing gaps in PM support that POL should consider
addressing and any further work that may be needed to support achievement of this
strategic aim.
Note: Post Office's Postmasters operate their businesses through a variety of
different business structures. Therefore, a reference to a Postmaster or PM in this
report could, depending on the circumstances, mean an individual, a limited
company or a partnership. In the case of a limited company or partnership, the
recommendations in this report will typically apply to the partner/director or
employee with main responsibility for running the branch, and, in the case of
individuals who do not work in their branch regularly, many of the
recommendations in this report apply as much to a branch manager or Officer in
Charge operating the branch on their behalf as to the individual who has entered
into a contract with Post Office.
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This purpose of this Project was to:
+ Understand POL’s core processes and activities in respect of PMs to identify:
1. What improvements have been made over the past 12-18 months in terms of POL
interactions with PMs
2. What improvements are planned or in progress to improve POL interactions with
PMs
3. Any existing gaps and further improvement opportunities (referred to as ‘findings’
throughout this report) POL should address in support of its strategic aim.
* Consider wider thematic areas that could strengthen POL interactions with PMs including
(but not limited to) governance and organisational structure, accountability and
responsibilities, communications and relationship management and training.
+ Develop a risk-based prioritised roadmap showing potential sequencing of
improvements to support interactions with PMs. Whilst this did not include an
assessment of the costs of implementing these changes, it does focus on the areas that
are likely to have the largest potential impact in reducing the risk of PM detriment.
We considered the above by conducting a wide range stakeholder interviews across POL to
understand current processes and activities across the organisation from a Governance
standpoint, and across the four stages of the PM journey below:
Continuou:
‘olution
Activitie:
We have also performed a high-level review of documentation to aid process
understanding, or to validate stakeholder feedback, where we felt this was required.
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1.2 Background, Scope and Approach (continued)
APPROACH
LIMITATIONS
This Project was conducted as follows:
* We mobilised a leadership team and five core teams each consisting of two to three
individuals with access to relevant additional subject matter experts. Four of these teams
led the analysis of activities within in each of the four stages of the PM journey based on
the initial list of activities within each stage as provided by POL. The final team focused
on the wider thematic areas that could strengthen POL interactions with PMs including
(but not limited to) governance and organisational structure, accountability and
responsibilities, communications and relationship management and training.
* Work was broken down into three two-week ‘sprints’ across the project with key findings
reported to POL project leadership at the end of each sprint phase (refer to Appendix C
for a list of meetings held with POL leadership, including summary of content presented).
* Each team conducted interviews with stakeholders across POL to understand what
improvements have been made to date and what improvements are planned or in
progress. We also considered what further improvement opportunities exist for POL.
+ Information was obtained by:
- Interviewing the head of each business unit and relevant team members across POL
- high-level review of documentation to aid process understanding, or to validate
stakeholder feedback, where required.
+ Where we identified any gaps or further improvement opportunities, we validated our
findings and suggested recommendations with POL responsible and accountable action
owners.
+ We presented emerging findings and recommendations periodically at weekly
Postmaster Experience Roadmap Steering Committee meetings and bi-monthly
Postmaster Experience Roadmap Forum meetings (refer to Appendix C for a full
schedule of meetings held, including POL attendees and information presented at each).
Our fieldwork was completed based on review of key business documentation and
workshops and interviews with stakeholders across the business between 11 January and 2
March 2021 (see Appendix D for a full list of stakeholders consulted). The findings in this
report reflect the latest position as of 3 March 2021.
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The scope of this Project did not include:
* Direct contact with PMs (however, we did consider the extent to which POL engages with
PMs to support the overall strategic aim of putting PMs at the heart of the business and
looked at feedback e.g. from the PM Survey on issues that matter most to them, spoke
to Area Managers around issues faced by PMs and considered information and wider
evidence including on PM complaints).
* Operational effectiveness testing.
* Review of the underlying IT system controls and environment.
+ Assessment of improvements in activities and processes made prior to March 2019.
+ Assessment of the design or effectiveness of improvements made, or improvements
planned or in progress.
+ Testing or verification of the timing of improvements made, or of improvements planned
or in progress. Information on timings has been obtained through discussion with
Management only.
* Cost assessment of any additional activities that could be used to further strengthen POL
interactions with PMs. (Given the limited funding available POL may therefore need
to prioritise activity contained with the recommendations or in some cases may choose
to implement a different approach).
* Detailed consideration of the historical issues covered by the 2019 Horizon Issues and
Common Issues Judgements — though as highlighted on the previous slide this work was
completed with awareness of activity happening in these areas and any findings and
recommendations mentioned here are made in with this wider context.
+ Validation of work under taken by Internal Audit or other third parties.
* Legal analysis or engagement in connection with the process and report.
Furthermore, this Project is one of a number of related activities taking place across POL
following the Commons Issues and Horizon Issues Judgements (the ‘Judgements’). This
includes work around culture and IT system (See figure 1). This Project has been conducted
separately and does not:
* Summarise the work performed across the different areas of POL
* Formally assess any follow on or follow up activity in relation to these Judgements.
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1.3 Summary of Urgent Priority Findings
The following table summarises the urgent priority findings with a brief description of each of these and an indication of progress in addressing each of these. Further detail on the finding,
recommendations and details of the accountable and responsible owners for each of these is included is included in Sections 5 to 9.
Urgent Priority Improvements
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Reference tnd inci
Finding Name Findi Progress
Number " ” ’
OF1 Appeals and disputes for contract The appeals and disputes process regarding contract terminations or suspension has not been clearly communicated to PMs
terminations or suspensions to ensure they understand the options available to them and that the procedures and timescales are clear.
BIL Maintained Error Limits Where there is a difference in a POL settlement account for a process affecting branches (for example ATM or Lottery) for a
specific amount (which varies by product), rather than issuing a transaction correction which would move the difference to a
PMs branch account, the amount is instead ‘written off’ to a POL P&L account leading to potential PM financial detriment.
Biz Settle Centrally Currently the PMs can only ‘Settle Centrally’ for amounts of > £150 and any amount less than this currently needs to be
‘made good’ by either cash or cheque by the PM each month. Also, there is no dispute functionality within Horizon in order G)
to allow PMs to easily dispute any amounts that have been ‘settled centrally’.
BIZ ATM transaction disputes There are a lack of effective procedures in place to manage ATM transaction disputes, raised by customers through Bank of
Ireland (Bol), who are the Link member currently managing the POL ATM network. This leads to potential PM detriment.
BC1 Shortfall Resolution Scheme The historical shortfall resolution scheme does not cover the period between each branch’s migration to HGNA in 2017 and
Exceptions 2018 and the common issues judgement in 2019. Should PM detriment have occurred in this period (e.g. arising from
contract termination or unpaid suspension), this detriment will not have been investigated or compensated.
BC2 Postmaster Debt Uncertainty No investigation has been conducted to identify and resolve any PM debt accrued between the implementation of HGNA and
the establishment of new ways of working between HMU and BAU. This leads to a risk that PMs who accrued debt in this O
period do not have certainty over their historic debt balances and do not understand if, how, or when they will be resolved.
Progress Summary: The Harvey Balls give an estimate of progress made towards addressing the findings at start March 2021 based on conversations with key
stakeholders across the business, These progress updates have not been fully tested or verified and are included here to given a high-level indication of progress only:
O =0% Cr O i =75% i =100%
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1.3 Summary of High Priority Findings
The following table summarises the high priority findings with a brief description of each of these and an indication of progress in addressing each of these. Further detail on the finding,
recommendations and details of the accountable and responsible owners for each of these is included is included in Sections 5 to 9.
High Priority Improvements
Reference
Number Finding Name Finding Progress
G1 Complex Systems landscape There are a number of different systems in use for processing and recording interaction with PMs, as set out in the diagram
making single view of PM shown in Appendix G. Multiple systems are in use by different teams, and a combination of these systems are required to O
challenging paint a holistic view of a PM at any one time.
G2 Values and Behaviours not yet The desired cultural shift to putting the PM at the heart of all activities has not been consistently embedded yet across POL.
embedded across organisation Additionally, ‘Post Office Values’ have yet to be developed and communicated.
G3 No overarching PM focussed To date, there has been no overarching mechanism in place for review of POL performance in providing services to PMs or a
governance forum governance forum to help oversee and drive required PM related decisions and actions through to completion
G4 No detailed plan to implement the There is no detailed plan for activity behind the high-level data strategy or agreed funding and resourcing to take forward
high-level Data Strategy activity around MI, data utilisation and optimisation
GS Insufficient clarity on roles and POL’s organisation is complex and there is a lack of clarity between teams on roles and responsibilities, which undermines a
responsibilities cohesive approach across the Postmaster journey. This is being addressed by some of the organisational re-design activity, q)
but will need to be embedded.
BC3 Use of memo view may mean that The processes in place to push urgent operational communications (e.g. around notification of scam calls) to branches is
PMs are not sighted on all urgent based around memo view. At present, messages are not retained on the system, meaning that if PMs miss them initially they G)
communications may be unaware of security or other business critical risks.
BC4 Insufficient PM Remuneration MI PMs are not provided with sufficient information to understand their remuneration from a performance perspective and are
unable to readily assess how their remuneration compares with other similar branches or their own trading performance in G)
prior years.
BCS Design methodology and process Many existing products have been designed based on cost-based metrics and in isolation, rather than in a manner that
prioritises the PM experience. This has led to several PM-operated day-to-day processes being complicated and difficult to
administer.
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1.3 Summary of High Priority (continued)
The following table summarises the high priority findings with a brief description of each of these and an indication of progress in addressing each of these. Further detail on the finding,
recommendations and details of the accountable and responsible owners for each of these is included is included in Sections 5 to 9.
High Priority Improvements
Reference
Number Finding Name Finding Progress
BC6 Cash discrepancy investigation There is no Service Level Agreement (SLA) for investigating cash discrepancies (e.g. a PM having less cash in their tills than
procedure misalignment their system declares), which can result in such discrepancies, on occasion, not being fully investigated before the CCTV data @
is removed, which happens after 90 days.
BI4 ‘Accounting disputes process Accounting disputes processes have not been clearly documented and effectively communicated to relevant POL staff, nor
has guidance been produced and shared with PMs to clearly explain the options available to them and what the procedures O
and timescales for reply and resolution are.
BIS Complaints handling processes Complaints processes have not been clearly documented or effectively communicated to relevant POL staff. Additionally,
guidance has not been produced or shared with PMs explaining the options available to them and what the procedures for
complaint reply and resolution are.
BI6 Absence of SLAs for issue SLAs have not been set for issue resolution processes across POL and there is also no effective monitoring in place for either
resolution processes efficiency or quality of POLs response to issues raised.
OF2 Perception of bias in Investigation There is no clear objective party involved (from a PM perspective) during POL’s suspension, investigation or termination
process processes, or in situations where there has been appeal lodged regarding these items.
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Key Themes
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2.1 Thematic findings
In the course of this work, a number of themes have become apparent in respect of the observations raised. Nine themes span the entire Postmaster journey, where there
are a number of significant (particularly urgent and high priority) findings, which we have summarised in this section..
The nine themes are:
Figure 4: Themes illustration
@) ©
3. Data and
1. Governance Management
Information
4, POL& PM 5. Systems and
Communications Technology
8. Roles and
Responsibilities and
Organisational Design
9. Proactive Support to
PMs
7. PM Obligations and
Dispute Resolution
6. Cash and Products
Each theme has been structured to show a summary of the observations made, key progress or activities in progress and suggested recommendations or principles for
consideration. The findings in these nine themes are summarised in this section then described in more detail in the Detailed Findings Sections 4 to 9.
These align closely with the areas flagged in the recent PM consultation survey as priorities for improvement. Beyond PM renumeration these key priority areas raised
by PMs included efficiency of systems and processes, including IT systems, the need for better communication, transparency around queries and complaints and
improvements in training and MI.*
* See PM consultation themes, final data, 22nd Feb 2021
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2.2 Themes: Governance
Theme Summary of observations recommendation:
1. Governance Context
Governance is key to supporting business strategies and objectives, to support alignment and focus on the right areas of activity and to ensure risks are mitigated
in areas that are critical to delivering desired outcomes. POL’s desired shift to a PM centric business needs clear governance and end-to-end oversight.
Current position
There is no single overarching end-to-end governance over risks and activities that could be detrimental in their impact on a PM. Our findings have highlighted a
number of areas where key aspects have been lacking across POL in respect of focussing attention, resource and activity on PM centric issues.
How are PM centric
risks identified,
mitigated and
monitored?
* To date, there has been no overarching mechanism in place to review POL’s performance in providing services to PMs or a governance forum to help oversee
and drive required PM related decisions and actions through to completion. This lack of an end to end PM centric forum and visibility of PM related issues has
manifested throughout POL and resulted in a disparate and non-cohesive way of working with PMs and with less focus on the issues that matter most to PMs.
In addition, there has been insufficient information made available across POL and to PMs to support driving a more PM centric approach e.g. branch trading
MI (Ref G3).
* Risks impacting PMs have not previously been well articulated, and further effort is required to make the impact on the PM clearer in risk descriptions. There is
also currently no mechanism supporting the shifting of attention onto emerging risks that may require more attention or are operating outside of risk appetite
as the risk management framework in place does not allow these to be identified or discussed in an appropriate governance forum (Ref G3).
+ Management information is key to supporting governance and decision making and multiple observations around the quality and use of it have been
highlighted in section 2.4. Improvements are required to ensure the right information is being collated in order to drive appropriate decision making by POL, so
that activities and focus can be on those areas where attention is required. The current MI and reporting in place does not provide sufficiently clear
insights into how POL is performing against its PM centric objectives, or a clear enough view on branch performance or conformance insights through the KPIs
in place. MI has not been optimised to support decision making, and there has been no centralised forum where end-to-end PM related MI has been received
and reviewed by management to support these objectives. We note some good recent progress in this area with the introduction of the Voice of the
Postmaster forum in February 2021, which will review PM insights and some PM metrics.
* As noted further in the Culture section (3.3), POL has not historically had a culture which encouraged transparent feedback or continuous improvement
activity. This is a key part of an effective governance framework, to learn and improve processes on a continual basis. (Ref G7).
Recommendations
Specific recommendations for these areas are set out in Section 5. The Voice of the Postmaster Forum and Improvement Delivery Groups recently created are a
step forward in addressing some of the issues, and the Postmaster Director role (once filled) should also add more focus to the governance aspects. We
recommend a wider risk-based governance forum (section 5, G2) is developed where focus is on risks and issues that impact PMs and POLs ambitions with respect
to working with PMs. Information and data, including intelligence from AMs, should inform areas of focus and where attention is required. Actions should be
driven through to completion by this forum, with clear accountability and responsibilities in place. A forum of this nature would be considered good practice for a
significant area of business risk.
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2.3 Themes: POL Culture and Staff Support
Theme Summary of observations and recommendations
2. POL Culture and Context
Staff Support
Historically, POL has not consistently focused on the organisational culture and how this can support and drive desired strategic objectives. Focus has been on a
commercial perspective rather than on ways of working with PMs to focus on their needs and requirements to deliver outcomes. A clear shift is required across
the organisation which requires a significant amount of effort. Steps are underway to progress this through the work being undertaken as part of the Culture
programme but this will need ongoing focus to ensure a genuine shift in focus towards PMs happens across POL.
Current position
A number of observations have been made in the course of this Project about the culture of the organisation in regards to ways of working with PMs,
Does the culture communication, and shared values and behaviours. Putting the PM at the heart of the business is not yet embedded throughout POL's culture, processes, and
support the strategy I resourcing structures. Examples include:
and are mechanisms
in place for
colleagues to
support PMs?
* Values and Behaviours are not yet articulated across POL (at the time of reporting). Whilst we understand there are plan in place to do this, as yet these have
not been clearly articulated or agreed (Ref G2). Cultural initiatives and activities (described at G2) under the Driving Postmaster Centricity workstream have
already started prior to these values being articulated.
* Core policies and processes in operation across the PM lifecycle have not always considered PMs needs or had the view of a PM embedded within them. The
POL strategy has previously focused on cost reduction and commercial return. We also noted a lack of cultural and soft skill training provided to key PM facing
teams, such as the security team and support teams, which has not adequately equipped teams to support PMs effectively (Ref BC12).
+ In addition job descriptions, recruitment and induction processes don’t currently reflect the PM centric approach or focus on how PM services needs to be
built into performance objectives (Ref BC9).
* Consistent feedback mechanisms and continuous improvement have not been in place across the organisation. Many issues have been raised to various
external and internal groups over a period of years but no action has been taken or followed through as a result. This has impacted colleague motivation
across POL and PMs who do not feel as though their concerns or suggestions have been listened to and taken into consideration. In addition, it is not clear to
some colleagues how to make suggestions for improvements and what the appropriate mechanism is to do this. This absence of a continuous improvement
culture also impacts the ability of the organisation to assess and respond to valid feedback that may be gained from those in operational roles (Ref G7).
Recommendations
Plans are in place to start addressing the required shift in culture throughout the organisation, and these activities (Ref G2) will bring POL up to date with what
many organisations have been doing for some time, e.g. twinning of senior leadership to day to day operational teams, spending time in different parts of the
organisation, articulating clear values etc, These will provide a baseline from which POL should continue to develop and embed the required cultural changes.
Overall, the organisation needs to define its core values, behaviours and purpose in a way that can be understood by all, embedded and consistently adopted
across POL’s ways of working and colleague communications. The new purpose statement and plans underway as part of the culture workstream will drive
improvements, but there is a long way to go to truly embed this shift in attitude. Developing detail below the purpose and continuing to communicate
expectations across the business will be key. Focus needs to be on where the PMs fit into the organisation, what their critical role is and how POL teams
can ‘work together’ to achieve strategic ambitions.
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2.4 Themes: Data and Management Information
Theme Summary of observations and recommendation:
3. Data and Context
Management
Several observations and findings have been made in the course of this work about ways of working with PMs and how to use management information (Ml) to
drive effective, data-led decisions and positive outcomes and behaviours. In the recent PM consultation survey, 55% of PMs mentioned that they wanted to see
more/better MI available e.g., branch sales information.
Information
Current position
There are a number of areas where MI has been lacking across POL around (1) Overall ownership and strategy; (2) How data is collated and accessed; (3) How the
data and MI is used, and by whom; (4) How insights are drawn and presented; and (5) How and where MI is being reported. Currently, significant organisational
redesign is underway. Whilst the design principles and need for PM prioritisation have been considered, detail behind the overarching MI, data utilisation and
Does POL use data optimisation strategy has not been developed. The key findings in respect of Data and MI include:
and Ml effectively
to support the
achievement off
strategic objectives,
and the decisions in I* Numerous systems exist in POL, and there is no single view of a branch and all the interactions that POL has with them. This limits the ability to have a clear
relation to better view of insights that can be used to enhance the PM experience. For example, it was found that the field teams can view what the central teams’ action, whilst
outcomes for PMs? the central teams cannot view what the field teams are actioning. (Section 2.6, Ref G4, OF3, POLIA Review: Postmaster Reporting)
+ At present MI and reporting does not provide complete end to end PM insight or enable forward looking decisions to be made, nor does it show how POL's
strategy is performing to ensure that POL is achieving the desired outcomes (Ref G2, BIG). Where metrics exist, there are no early warning indicators or
baseline metrics that exist in either the Branch Insight Tool (BIT) or in the Ml available to POL management and the AMs, which limits POL’s ability to take
proactive measures to prevent issues or capitalise on consumer trends. (Ref OF3, G1, BI6, POL IA Review: Postmaster Reporting)
+ POL has a high-level data strategy but there are no detailed plans to support putting this in place or resources or funding allocated to progress this activity. As
a result, this limits the ability for POL to make use of best practice in relation to data optimisation and utilisation, such as leveraging data to innovate products
and services and using telemetry to enhance and improve the PM and customer experience. (Ref G4)
* PMs are not provided with sufficient information to understand their remuneration. Whilst remuneration advice slips are provided, PMs are not able to assess
how their trading compares to other similar branches or compare their trading results (and remuneration) with prior years. Additionally, whilst remuneration
and sales reports are available on Horizon, these are not user friendly, and PMs are often not aware of these reports or how to use them. (Ref BC4)
* POL could do more to actively support PMs to improve branch performance. Heavier emphasis is placed on the tier 1 branch network, with tier two and three
branches having access to some remote support but less frequent AM contact and input. Further details of this are set out in Findings BC4, BC7, BI6, BI7, and
OF3. PMs additionally have limited visibility of their performance data (including TCs) and do not have access to standard, automated information that will
improve revenue or sales. POL also does not use the data it has available to prioritise the provision of support to improve branch performance.
Recommendations
A plan setting out further detail to deliver the data strategy should be developed (Ref G4) centred on the needs of PMs and the business in support them. This
should include the approach, priorities and requirements for funding and resources to take this forward. It is key that PMs are provided with the tools enabling
them to monitor and grow their own business using MI. Whilst it is recognised that data analytics is an area where a lot of investment could be made, short term
focus should be on optimising existing data to support governance forums in ensuring that the right outcomes are being met. The data strategy should be in line
with an overall technology strategy (Section 2.6). Potential longer-term considerations would be costly and take significant investment, such as an overarching
data lake, which is supported by a reporting warehouse and MI Insights/Reporting Team or implementing a Self-Service MI Function through existing tools such as
Branch Hub.
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2.5 Themes: POL and PM Communications
Theme
4, POL& PM
Communications
How are PMs
communicated with,
and how are internal
communications
considered?
recommendatio
Context
Effective communication between POL and PMs is key to strengthening effective working relationships. Communication methods have been raised multiple
times during this project with respect to the need to improve specific day-to-day operational communications with PMs and their effectiveness, clarity and
consistency. The recent PM consultation survey further highlighted that 62% of PMs want to see ‘better communications in general’, with 57% noting
the importance of simpler communications’. Communication to date has often focused on what POL want to share or think is important, rather than what
PMs need or what is important to them.
Current position
Some important improvements in day-to-day operational communications that have already taken place, with tactics and content rationalisation ensuring
PMs have clearer and more accessible messages. Examples of this are at findings BI23 and BC29 and include areas such as updates to letters and call centre
scripts to reflect more PM centric wording. At the strategic level, there have been attempts to communicate ‘the why’, listen to PM feedback, expand the
conversation on different channels, and better target messages (G6).
There is now a clear effort in ensuring communications to PMs are more useful and tailored to PMs
Despite these improvements, this Project identified several key areas where further work is needed, including:
* Development of an overarching communications framework, including a documented, scoped and planned project to improve the communications
between PMs and POL, setting out clearer distinctions and accountabilities between operational and strategic communications.
+ The proliferation of new ways of communicating to PMs (e.g. new channels such as use of WhatsApp) — perhaps in response to the difficulties of
targeting this audience, the current approach risks confusion, incoherent messages, and insufficient POL control on the information going to PMs.
Careful consideration should be applied here.
+ — The need for a formal processes to ensure that the contents of this strategy (e.g. key messages or vital PM-centric information) is disseminated to the
people and functions (AMs and Contact Centre, for example) that have the most touchpoints with PMs.
As well as these overarching themes, there are several specific findings that touch on PM communications e.g., BC20, BC3 and ONS 80.
Recommendations
Overall, we recommend implementing and coordinating a strategic communications framework for PM engagement to cement the planned activities and
formalise the work already being done — this should be resourced appropriately to allow effective delivery. Recommendations are set out in the detailed
findings section for the specific day-to-day communications issues noted.
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2.6 Themes: Systems and Technology
Theme Summary of observations and recommendations
5. Systems and Context
Technology Across POL there is currently no centralised enterprise technology strategy and no vision overall for the target desired technology landscape. There has been
historic under-investment in technology (particularly to support PMs) which has resulted in a disparate and disjointed system landscape. The most recent PM
survey shows that a desire to ‘simplify/improve horizon’ is the 2" highest priority area for PMs, with 71% of them flagging this as an issue.
Current Position
There are numerous different systems in use for processing and recording interactions with PMs, as set out in the diagram shown in Appendix G. Multiple
systems are in use by different teams, and a combination of these systems are required to paint a holistic view of a PM at any one time. This results in a siloed
approach to working and the provision of disjointed support to Postmasters, with customer support teams not having visibility of previous issues / or queries
raised. The systems in use often do not ‘speak’ to each other, so there is potential duplication, and effort spent on aligning information or entering
data. Systems are very limited in terms of a two-way flow of data (Ref G1).
Does the IT
infrastructure support
a single view of PMs
and support them in
running their
businesses?
Some systems are old and do not contain the level of functionality required for day-to-day tasks, which leads to slower processing, limited use of systems and
teams using workarounds to enable them to access and utilise data e.g., Galaxy. There has been a lack of investment in Supply Chain technology, which
has contributed to several issues for PMs and has not enabled them to be able to effectively manage cash and stock, for instance.
Recommendations
There are specific recommendations for individual findings in the detailed findings sections 4-9. However, there are thematic recommendations for POL to
consider which are longer term to optimise the systems and technology landscape.
Specifically, there is a need to develop an overarching and enterprise-wide forward technology strategy, setting out a vision for each component of technology
estate required to support operating processes and an overall timetable for key changes required to more away from legacy infrastructure.
As part of this strategy there should be a clear view, developed based on the needs of the PM and in conjunction with the business teams supporting them, on
critical elements including:
* Clarity on standard operating procedures and processes which should be supported by technology.
+ Isasingle customer view the goal? What is the optimal way to achieve this?
+ How can POL systems provide a branch with all the details needed to provide the support in one place: such as cash and stock management requirements,
transaction data, onboarding processes, and transaction corrections?
* What information would be self service for PMs? How does this link to PM requirements/capability/ training?
+ The extent to which POL continues to rely on third-parties vs. investing in developing internal capability for systems changes and upgrades.
(Note: wider specific Horizon related IT improvements as a result of the HIJ are being taken forward as part of the work being undertaken by KPMG. Findings
and recommendations here are consistent with that activity but do not seek to replicate the detail of that work).
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2.7 Cash and Products
Theme Summary of observations and recommendati
6. Cash and Context
Products This theme summarises the high priority findings noted around cash and product management, each of which could lead to PM detriment and collectively comprise a
thematic area where significant improvement is required. Overall, 65% of PMs report day-to-day systems, processes and products (including ordering stock, getting
cash) as a priority areas for improvement, in the recent PM consultation survey . Currently, processes around cash management require heavy manual involvement,
which is inefficient and leads to cash handling risks. Furthermore, transaction disputes remain an area of concern, with further clarity required around POL’s strategy
in this area (particularly in relation to investing in systems and products that reduce the risk of disputes occurring) and additional assurance needed to ensure any
historic detriments are managed effectively.
Current position
What processes
‘ There are a number of areas where we have raised observations, including:
are in place to
support PMs in
aie menogieg * Cash forecasting remains heavily manual, with an excel spreadsheet used by teams. Additionally, cash counting devices are not consistently used across the
and network, which leaves PMs vulnerable to cash counting errors. Whilst it may not be financially expedient to provide all PMs with cash counting devices, further
cash and providing
alaly product consideration is required around the provision of such devices across the network given their importance in mitigating errors. (Ref BC22)
offerings? * Transaction disputes continue to be an area of concern, with no consistent procedures in place. This risk is particularly high around ATM transaction
corrections, with aged machines and reliance on Bank of Ireland's data leaving PMs vulnerable to financial detriment. (Ref BI1)
+ Key products operated by PMs daily are cumbersome and require heavy manual input, most notably ATM and Lottery products. (Ref BC6)
Recommendations
Detailed recommendations are set out in sections 4-9 of the report. Overall, POL should consider enhancing its processes for cash forecasting, as well as use of good
practice equipment and procedures in order to ensure processes in this area are robust and meet the requirements and challenges of PMs. Aligned with this, POL’s
‘historical matters’ should continue to be the subject of scrutiny, with an assurance review required to ensure PMs are compensated for any historical detriment in a
fair and transparent manner. Additionally, key products used by PMs must be intuitive, simple to use, integrated within Horizon (in so far as is possible) and support
robust financial controls to support and protect PMs.
Central to the challenge of addressing these known product issues (particularly ATMs and Lottery) has been a lack of organisational clarity around who is responsible
for addressing product issues, which has been coupled with an under-investment in long-term solutions. ATMs provide a good example, with some PMs not having
access to cash counting devices and counting cash in their ATMs manually. The risk of manual cash counting error this results in is amplified by POL providing PMs with
insufficient support in managing Bank of Ireland discrepancy claims, which leads to an increased risk of PM detriment.
Organisational design review activities intend to make this clearer, by placing end-to-end responsibility for all product customer journeys with the product teams, who
will be equipped with the authority and accountability to resolve product issues. The key challenge for management will be supporting product owners (and holding
them to account) in working with the business to ensure optimisation from a PM perspective, rather than solely in support of POL cost drivers. Additional challenges
are presented by contractual relationships with third-parties vis-a-vis products, which will require robust commercial and contract management.
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2.8 PM Obligations and Dispute Resolution
Them Summary of observations and recommendation
7.PM Obligations and I Context
Dispute Resolution This theme summarises several of the urgent and high priority findings identified around PM obligations and dispute resolution, noting that clarity in PM
obligations — together with the dispute resolution process — has been a historic area of weakness for POL (as referenced in Cll). For example., in the PM
consultation survey 57% of PMs highlight the need for more transparency regarding the status of questions, queries and complaints.
Current position
The key findings in relation to this theme are summarised as follows:
+ There is a large degree of complexity in the number of PM contracts in place. Following the Cl this has been reduced, but there are still a large number
(c30+) of variants that can be used. PMs and AMs have inconsistent understanding and knowledge of such contracts due to their complexity and varied
contractual obligations, which at times results in the non-enforcement of contractual terms. There has also been a reduced desire to enforce such terms
following the GLO. This has resulted in a significant downturn in suspensions and terminations, with four suspensions and zero terminations in FY20/21
compared with 70 in FY19/20. An example was given by an AM whereby a PM was unaware that operating a MyHermes alongside a Post Office is a breach
of contractual obligation (Ref BI7).
Are the processes and
practices in POL
ensuring fair and
transparent treatment
for PMs?
* The appeals and dispute process regarding contract terminations or suspension is still being developed. Work remains to be done to establish an
independent party's involvement in the investigations (and decision-making processes) for both POL and PMs regarding terminations. It was noted that
there is a contractual appeals policy in place for legacy contracts, which is documented; however, for Locals and Mains contracts, the right of appeal
was taken out. Work is underway to address this gap. (Ref OF1 & OF2)
* The process for handling complaints and dealing with queries or issues raised by PMs has not been clearly defined, nor have appropriate guidelines been
developed and made available to PMs, to help ensure that they are aware of the assistance available to them. Additionally, clear SLAs for issue resolution
activities have not been set, to enable monitoring and help to identify and address any emerging areas for improvement. (Ref BI4, BIS & BI7)
+ Three instances have also been identified where issues have been noted with the accounting reconciliation processes, which are highlighted below:
© Maintained error limits — Where there is a difference in a POL settlement account for a branch affecting process (for example ATM or Lottery)
of specific amounts rather than issue a transaction correction which would move the difference to a Postmaster’s branch account, the amount
is instead ‘written off’ toa POL P&L account. These differences could result in a write off being a cost or a benefit to the PM. (Ref BI1)
© Settle centrally - Currently PMs can only ‘Settle Centrally’ for amounts of > £150 and any amount less than this currently needs to be ‘made
good’ each month by either cash or cheque by the PM (Ref BI2)
© ATMs - Procedures in place to manage ATM transaction disputes, raised by customers through Bank of Ireland (Bol), who are the Link member
currently managing the POL ATM network, are not effective. (Ref BI3)
Recommendations
Recommendations with regards to specific findings are made in the detailed finding section of the report. In summary, there is a need to create a clear
framework for contracts, including a schedule of obligations to the contracts. Additionally, policies and procedures need to be drafted, communicated and
trained on in relation to appeals, dispute escalation, and accounting reconciliation processes. Furthermore, in relation to the accounting reconciliation,
processes, systems and controls need to be reconsidered in line with the revised practices (Ref BI1, BI2, BI3, OF1, OF2).
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2.9 Roles and Responsibilities and Organisational Design
Theme Summary of observations ai ‘ecommendati
8. Roles and Context
Responsibilities and In order to put the PM at the heart of the business, the organisational structure and the POL teams’ roles and responsibilities needs to be reflective of this PM
Organisational Design centric goal. This work has highlighted the complexity of the current POL organisation and an overall lack of clarity between teams on roles and responsibilities,
which undermines POL’s ability to apply a cohesive approach across the PM journey. The organisation redesign work in progress seeks to remediate this, but
there will need to be high clarity in order for the changes to be successfully embedded across the organisation and drive tangible improvements. (Ref G5).
Current Position
Throughout the course of our work, we noted several findings that highlight a lack of clarity over roles and responsibilities, which could have a detrimental
impact on PMs. Overall, sentiment has indicated a need to simplify the organisational structure to support POLs future strategic ambitions and goals.
* AMs spoken to over the course of the Project had different views on their core roles and responsibilities. For example, one AM considered themselves to be
the conduit between the PM and POL from a perspective of facilitating conversations between the parties, while another stated that helping PMs grow and
Are Pots manage their business effectively was their core responsibility. (Ref BI8)
organisational
structures and teams’ I* To reduce organisational complexity, all PM support teams have recently been brought together under the Retail & Franchise Network Director. However,
roles and interviews with support team members indicated that the roles and responsibilities of the teams are still unclear. Agreement of the field and support
responsibilities centre teams roles and responsibilities is required between functional heads.
conducive to
supporting the right
outcomes for PMs?
* Due to numerous organisation shifts over the recent years, there have been many name changes to the support function roles resulting in
confusion amongst both PMs and POL over who is the correct team to contact. For example, the Cash Management team was recently renamed as the
Inventory Management team, but due to a poor communication programme PMs were not adequately aware of this change and have thus not been willing
to engage with outbound calls from this team. Similarly and the Network Provision Lead 'NPL' has changed names up to five times in the last five years.
Whilst their role has had minimal change, but this has led to confusion from other teams. (Ref BC10)
* As set out in the governance theme, there has been no overarching mechanism or forum in place with the specified role and responsibility for reviewing
POL performance in providing services to PMs (See section 2.2).
Recommendations
Organisational redesign is in progress, and good improvement has been made to date, with the aim of simplifying the organisational structure to support the
desire to put at the heart of the business. To date, reorganisation to the GE-1 level has been rolled out, with the second tranche of changes announced on the
3 March 2021. As an example of the changes made, product owners (ATM, Lottery etc.) will now be responsible for the end-to-end processes for their
product, including any historic issues and/or future activities. This clarity in accountability is crucial as it has been a critical issue previously. However, the
changes will be challenging to the individuals directly involved, so there is a clear need for the change to be clearly communicated, understood and for
consultation to be undertaken on capacity and knowledge issues, particularly in respect to historical matters, to ensure that the issues can be addressed
effectively.
The organisational redesign process will help to ensure roles and responsibilities are clear as there will be a focus on PMs specifically for those teams who are
directly PM serving below GE-1. However, further work is needed in ensuring the roles and responsibilities of the support teams and field teams are clearly
documented and communicated to the PMs as well as the wider business; following this, POL should reassess and consider whether the support levels are
sufficient to support the desired op model and outcomes (G5). Detailed recommendations can be found within section 5-9.
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2.10 Proactive Support to Postmasters
Theme
Summary of observations and recommendati
9. Proactive Support to
PMs
°°
eS
How does POL provide
proactive support to
Postmaster in relation to
Branch Growth,
Postmaster Training and
Upskilling, and on-going
customer support?
Context
Part of the move towards putting PMs at the heart of the business should be around POL providing more proactive support to PMs to improve their branch
performance - for example, supporting them in increasing sales of certain products, or improving elements of their customer service. With access to
information on transactions and sales across a branch network of 11,500 branches, there is a huge potential to use this information to identify suggestions
and improvements to support individual branches. This has the potential to have a significant positive impact on both PMs and POL.
Current position
At present, however, as set out in the detailed findings sections, there are several observations that demonstrate support levels are not consistent, or
delivered in a way to maximise impact:
* Despite the improvements in the last 18 months to the on boarding training process, PM training is still primarily focussed on products and common
transactions with limited direct PM training around areas such as how to grow or improve business performance only provided to a limited number of
branches. (Ref ONS)
+ The Branch Insight Tool (BIT) pulls together all the back-office information on a branch and compiles it for ease of use by AMs. PMs do not have access to
this tool and as such must request any information directly from the AM. Due to limited AM capacity, MI is usually only shared when they visit PMs, and
therefore since Tier 3 branches are visited much less frequently (every 6 months) when compared to the tier 1 and tier 2 branches, there is less
opportunity for them to receive relevant insight data. (Ref BC4, BC7, BI8)
* To date, there is no self-service function for PMs to access their branch MI, and as a result all Mi must be requested directly through the AMs. This limits
the ability of a PM to easily make informed decisions to grow their business and thus limits POL’s ability to meet strategic objectives. (See Section 2.4)
+ While AM job descriptions include a focus on supporting PMs to grow their business, the approach taken by AMSs differs significantly. Of the AMs spoken
to, not all were aware of this wider role but were focussed only on query and issue resolution. (Ref BI8)
It is also understood that in relation to training there are a number of improvements underway, and consideration of delivery methods is in progress to
make training as flexible and innovative as possible (ON27).
Recommendations
Recommendations with regards to specific findings are made in the detailed finding section of the report. In summary, POL should provide more consistent
proactive support to their PMs to support them in building their businesses. This would include better access, utilisation and sharing of insights and MI (See
Section 2.4). Additionally, further training for PMs is needed which should be targeted to what would be the most valuable to them based on their input and
feedback. Both points in relation to MI and training were incorporated into the hothousing programme which significantly grew branches and it is therefore
recommended that the hothousing programme is restarted.
Such proactive support in areas as diverse as customer services, managing teams, sales and marketing is typically seen in wider retail/franchise businesses
and therefore could be positively leveraged in POL too.
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Roadmap
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3.1 Prioritised Roadmap
Introduction to the Roadmap
The following pages set out our suggested roadmap for the implementation of the recommended actions identified. The Ref. PM focussed questions
roadmap groups of activities against different topic areas, which focus on questions about the Postmaster Journey from the _ 4 , - dh »
PM and POL perspective as set out in the table on the right. Focussing on these questions is key in moving towards putting a, I Bones sane lly rereprecponablitessee howe tuhiiy.cost
Office (PO)?
PMs at the heart of the business.
Do I have the appropriate technology I need to run my PO
The required actions to address the recommendations made in this report have been organised into three ‘lanes’ to effectively?
indicate the time period in which we believe the action should be completed. We have 59 findings, with recommendations
relating to each divided into the following categories: : c Do I regularly have the information I need to run my PO effectively
* ASAP-To be implemented as soon as possible, with completion by May 2021. Ahead of the submission of evidence for and is the appropriate tone used in communicating this?
the inquiry!.
* Short Term - To be implemented in the short term, after the ASAP improvements, and by August 2021. Before the D. I Do! feel POL supports me to adequately run my PO?
expected release date of the Inquiry? report. If Ihave an issue, am I clear who to contact and am I confident it will
* Medium Term - To be implemented over the course of FY21/22, with completion reached before March 2022, E I beresoved?
Where recommendations are by their nature more complex and require a longer-term action, we have used an arrow box
to indicate that they will remain a work in progress beyond March 2022 f I Wren Ietap betes tA, now ee Iensiayrettionsniwnnjeour
There are several findings that need to be addressed over a longer time scale. These include some of the low priority
findings that are not expected to commence until the end of the roadmap activity as well as longer term improvements,
such as the move away from the Horizon system and the implementation of a full IT and data strategy, which will continue Hotwido oie ensure-hat all of our people pukeMs at the:fieartjaf our
beyond this period. Relevant ‘owners’ have been identified for each action, and group of actions, on the following basis: decision making and that they are supported to do this?
* Accountable Owner- the individual (at GE level for Governance findings and GE-1 level for all others) with responsibility
for ensuring that the action is completed.
+ Responsible Owner—the individual who has functional responsibility for developing the solution and completing the AE POI, le technology wed tfecdvely to supporeou Interactions
action. \T with pms?
For each action, or set of actions, we have included a single accountable owner to ensure that there is clarity, even when
activities may straddle more than one Business area. Having this single accountable owner is key to ensuring that the set of I 4. I At POL, are weset upto support PMs in the most effective way?
recommendations is addressed fully and to avoid issues ‘falling between the cracks.’
Ref. POL focussed questions
H. I How do we ensure that we are delivering satisfactorily for PMs?
This roadmap has been developed to prioritise urgent and high-risk areas of activity around PM detriment. This work did not take into account cost or resourcing implications and POL will
need to consider these further in finalising implementation plans. Meeting the timescales suggested will require investment and focus of the organisation both in the short term e.g.,
through the shifting of resources to urgent and high priority areas, and over a sustained period to genuinely drive change, particularly given that some elements of this, particularly shifting
culture and addressing the technology debt, will take time.
Our Recommended actions - The Roadmap includes recommended actions that have been identified by us as sensible ways to address the issue identified in the relevant finding. We
recognise that when assessing the actions, Post Office Limited (POL) may identify an alternative approach to address the issue, to a similar or better level, and is within the spirit of the
action identified by us — which is fine and to be expected in some instances.
Guide to the roadmap - the roadmap combines recommendations from multiple findings to address specific themes. Each box groups a cluster of actions that logically sit together and the
position of the box indicates the period when the recommended action is expected to be completed. The circles provide an estimate of progress to date and the overall accountable owner
for the activity within the box is show in the top right. Some activities- including implementation of the IT and data strategy and embedding of culture changes will continue beyond the
time period shown as indicated by the arrows.
ost Office Horizon IT Inquiry to establish a clear account of the implementation and failings of Horizon over is lifetime 29
Deloitte LLP 2021 — Postmaster Journeys — March 2021 Private and Confidential
PM questions
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3.1 Prioritised Roadmap (continued)
Inquiry evidence Inquiry report FY 21/22 End
submission
ASAP — next 12 weeks (End May 2021) 1 Short term — following 12 weeks (End August 2021)" Medium term - FY2122 end (End March 2022)
id how
I-boarding and early days improvements Tracy Marshall
: Clearly define overall on-boarding journey and timelines.
training Tracy Marshall
I ons Broaden the current training programme for new PMs to cover the Practical aspects of running a branch.
ities ant
f
is captured centrally to enable effective analysis, investigation and TracyMarsoall
review.
arding process improvements
Increase f2f meetings during on-boarding and offer,
introductory video calls to new PMs.
Bring Suitability Assessments forwards.
understand my role,
to run my PO?
responsil
A. As a Postmaster, do I
i}
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away from legacy infrastructure. : i
ical Horizon improvements Simon Oldnall for IT system update
& Upgrade MemoView functionality in Horizon ~ (HU).
sss to security equipment Tim Perkins
Implement a process that enables PMs in lower
risk level branches to request and receive
additional security equipment.
effectively?
1g Branch Hub to provide information to PMs Nick Beal
4) PMs to be provided with sufficiently clear information to enable
them to confirm that remuneration is correct. Controls over
remuneration to be assessed by IA.
2
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technology I need to run my PO
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jelop and implement PM Commu ions Framework "12! ‘@ylor
strategic communications plan for PM engagement should be
ity & Comms around support roles R&R Tim Perkins
: Provide clear structure of support teams responsibilities,
efisuring consistent training and communications on their roles.
:: Review the communication approach for PMs and assess
t forums are best suited to meeting PMs support needs.
Tracy Marshall
is
Training development for PMs
(ona: introduce mandatory refresher training for PMs
th
ing
ti
jentory Team Ways of Wor! Russell Hancock
sa Continue deploying actions identified in the improvement
plan, in order to ensure PMs receive appropriate support around
cash provision.
in communicat
C. Do I regularly have the
my PO effectively and is
the appropriate tone used
1
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POL should develop an overarching and enterprise wide forward tech fology strategy ~which sets out a vision for each component of technology eslate and overall timetable for key changes required to move »
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PM questions
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3.1 Prioritised Roadmap (continued)
Inquiry evidence Inquiry report FY 21/22 End
submission
ASAP — next 12 weeks (End May 2021) Short term — following 12 weeks (End August 2021) Medium term— FY2122 end (End March 2022)
Frequency of PM Support 1 piavnatats
Continue to adjust the tiring system so that its based on PM sugport-focused metrics. Consider transparently communicating
the system to PMs.
On-boarding performance metrics Tracy Marshall
Ensure there is a process to analyse and investigate
M Feedback survey results, and review existing
processes to drive continual improvements to on-
oarding and training
ipdate the performance metrics of the on-boarding
‘eam to include KPI's around quality, experience or
satisfaction measures.
D. Do I feel POL
supports me to
adequately run my PO?
Develop consistent process forloss reclamation" "e's
‘Agree a set of processes for recovering established
losses, as per POL's vision and risk tolerance.
\ppplement appeals and escalation framework processes “Cy Kingham
Implement appeals policy for local and mains contracts (HU).
Introduction objective independent PM & POL rep or panel to
few termination and suspension decisions.
Assess detriment for ATM reconciliation Martin Kearsley
(G99) Assess PM detriment from ATM reconciliation issues identified by Bol
and ensure that there is no further detriment to PMs.
will be resolved?
roving dispute resolution processes ees
Brees and finalise the disputes resolution procedures and clearly
‘communicate the dispute process to PM's.
JAgree and finalise the Complaints Handling policy and procedures.
Develop SLA's for Issue Resolution related activities to ensure
effective monitoring can take place.
Implement SLAs around how long Post Office has to identify a cash
discrepancy and how long a PM has to query it.
Adjust the CCTV retention period, aligning to the investigation
period.
and am I confident
8
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itinterviews ‘Andy Kingham]
: Introduce process to conduct exit interviews with PMs.
ing PMs for their service ‘Andy Kingham]
Grptmve that there is a process in place to thank all outgoing
Ie.
F. When I stop being
a PM, how do! end
my relationship
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POL focussed questions
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Inquiry evidence Inquiry report FY 21/22 End
submission
ASAP —next 12 weeks (End May 2021) Short term — following 12 weeks (End August 2021) * Medium term — FY2122 end (End March 2022)"
1 I
ablish and embed cultural values and behaviours [J \ Lisa Cherry t
Geontrming Values and Behaviours should be a priority activity frgm which other activities and messages shouldbe talored. These values and bhaviours should be embedded in traning and policies, andi shoul
be clear how they support the strategy of the organisation.
Develop plan to deliver data strategy
velopment of a holistic plan to deliver the data strategy
he creation of an overarching Data Lake, which is supported
Reporting Warehouse and MI Insights/Reporting Team
Jeff Smyth
ow PM centricity across support network Juliet Lang
: Develop and implement targeted soft skills training for frontline teams.
6a Introduce objectives for front ne teams and review remuneratiqn structures / incentives. Additionally establish consistent call quality
monitoring practices, around PM centric metrics.
Review On-boarding financial assessment Process {athryn Sherratt
Complete review of Financial Assessment process and
‘communicate updated process to all teams relevant to on-
Review and agree shared terminology
Bis: Review terminology across Business Support Teams.
Tim Perkins
boarding.
essment and update of Training Tracy Marshall
Implement a cross-functional training review forum.
onic: Review classroom training assessment format.
decision making and that they are supported to do this?
Data Utilisation and Indicators Tracy Marshall
Create on-boarding SLAs in line with the new cultural
direction.
‘Assign appropriate resource to analyse eLearning MI to
improve training. Ensure data integrity issues are resolved as,
part of this.
Review owner, intent and purpose of the branch contact file.
G. How do we ensure that all of our people put PMs at the heart of our
Training development for AMs
(rae a clear framework with a set of SOP's for the
Is to help consistently deliver branch performance in
relation to branch optimisation, revenue growth, non-
erence or branch related issues.
Roll out AM training programme re off-boarding and
branch management.
‘Andy Kinghan]
p- -------------->
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8
POL focussed questions
3.1 Prioritised Roadmap (continued)
H. How do we ensure that we are
delivering satisfactorily for PMs?
Inquiry evidence
submission
ASAP — next 12 weeks (End May 2021)
Short term - following 12 weeks (End August 2021),
Inquiry report
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Medium term — FY2122 end (End March 2022)
FY 21/22 End
Branch performance ‘Andy Kingham
Create branch performance management framework.
Assess what contractual information should be made available
to AMs to allow them to understand and identify what might
constitute a breach of contract.
CR Introduce early warning alerts to BIT to flag issues to AMs.
tablish PM governance forum ‘Amanda Jones
esse an overarching forum focused on PM risk
management, PM performance and issues oversight,
management with clear accountability assigned.
Establish and define key metrics and thresholds for
tracking and prioritising actions.
Tracy Marsall
‘A continuous improvement mechanism should be visible
stablish Continuous improvement processes
©) available,
PM reporting Nick Beale
: Complete Internal Audit recommendations on PM.
reporting.
Feedback on the resolution of issues Tim Perkins
(3 Formal feedback avenues for PMs to be integrated
in service provision processes.
Third party data Rob Wilkins
Review current end-to-end approaches to
‘managing the integrity of third-party data, including
areas where errors could lead to financial loss for
PMs.
1. At POL, is technology used effectively
to gather all the information needed to
enhance our interactions with PMs?
Resolving historic system control issues
Investigate and quantify the maintained error limit issue.
4) Remove the £150 settle centrally’ limit.
Tim Perkins
Resolve maintained error limit issue, including any disclosure
and reporting requirements
Review end to end settlement and transaction processes
Assess Stock entry processes Russell Hancock
I: Assess the stock entry process with a new process and
7 or system implemented that allows automated,
barcode based replenishment, to reduce the need to
enter stock codes manually.
Improve cash forecasting process Russell Hancock
fm :Consider use of a more sophisticated cash forecasting
tool to replace the Excel spreadsheet that is currently
used to perform forecasting.
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3.1 Prioritised Roadmap (continued)
Inquiry evidence Inquiry report FY 21/22 End
submission
ASAP — next 12 weeks (End May 2021) I Short term - following 12 weeks (End August 2021) Medium term— FY2122 end (End March 2022)
Product management MM. Kearsley, Mark Siviter & Ed Dutton
Review products against design principles to ensure
they are fit for purpose & meet needs of PMs’,
customers and POL.
Clarify and communicate responsibilities for product
management.
& Digitise POL processes to remove the manual
elements and reliance on paper.
Confirm the scope of the historical shortfall scheme and agree
the process to resolve potential PM financial detriment
between 2017/18 and the CU.
Determine how PM debt balances that arose after the HGNA
implementation will be managed
(Soon and debt resolution Tim Perkins
Tim Perkins
Assess support resources reqi
): Assess service delivery timescales to PMs to assess
whether additional service support resources are
required to provide an efficient and timely service to
PMs.
Conduct a resourcing assessment to determine
additional resources required for the security team to
provide a strong level of proactive support for PMs.
selopment of knowledge articles Tracy Marshall
bats: Ensure that enough time is available to update
associated knowledge articles into all product change
projects prior to project close
: Cleanse existing Branch Hub and BSC
product knowledge articles to remove outdated ones
and add in the latest product guidance.
implifying PM support Tracy Marshall
: Further simplification of the suitability assessment
process.
Inge Management Process
Engage a comms programme to all teams, to support
‘open and available for PM-centric changes. Additionally
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anisational redesign Lisa Cherry
Embed roles and responsibilities following op model
thanges.
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Detailed Findings
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4.1 Detailed Findings - Overview
Sections 5 to 9 of this Report outline the detailed findings across our five work streams. This begins with governance and then considers each of the four stages of the PM journey:
sue Resolution
BAU — Continuous Activities
Each section is structured accordingly:
1. Overview — includes a high-level narrative of the activities involved in each stage of the PM journey, including a summary of all improvements made, planned and / or in progress by
management. We also provide a summary of findings identified from this Project, mapped against the rating methodology as defined in Appendix B.
2. Improvements Identified — each improvement opportunity / finding has been rated in accordance with our view of PM detriment or experience, based on the definitions outlined in
Appendix B. Our recommendations are suggested actions for consideration by POL Management only, and there may be alternative ways to address the findings identified. For each
finding, we have set out:
+ Reference No. — each finding has been assigned a prefix based on the work stream it relates to. For example, On-Boarding and Early Days is prefixed with ‘ON’, BAU —
Continuous Activities is prefixed with ‘BC’. Each finding then appears in numerical order starting with 1.
+ Recommendations — each recommendation appears in the prioritised roadmap for POL (refer to section 2 of this Report). The Reference No’s have been used to cross-
reference the activities in the roadmap against the findings and recommendations in the following sections of this Report.
+ Responsible — we have included POL responsible action owners based on who is currently responsible for the processes or activities raised in the recommendations. In most
instances, this has been validated with, or nominated by, the POL accountable person. There may be additional responsible owners than whom we have identified, and it will
be up to the accountable action owners to identify this. Whilst these names may be current at the time of this report, this is subject to change based on the organisational
structure and roles and responsibilities of these individuals when these recommendations are addressed.
+ Accountable — at GE-1 level, with the exception of Governance Findings which have been assigned GE sponsorship given the size and nature of these findings. Whilst there is
typically only one accountable owner for each finding, there are some findings that have multiple accountable owners. For example, finding ref BCS has multiple GE-1
accountable product owners.
+ Progress and Estimated Completion Date — Harvey Balls have been used to indicate management's progress towards addressing our findings and recommendations. We have
also included a suggested completion date for our recommendations, which maps against the suggested completion dates in the roadmap in section 2 of this report.
3. Improvements Noted — this is a summary of improvements made by management in the past 12-18 months in line with the strategic aim of putting PMs at the heart of the POL
Business. We obtained this information through anecdotal evidence from stakeholder workshops only. We did not verify the timing of improvements made, nor did we assess the
design or effectiveness of such changes.
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4.1 Detailed Findings — Overview (continued)
The following table sets out the total number of findings identified from this project (by rating) and management's progress towards addressing these. This table does not include findings
identified from other projects (for example Norton Rose or KPMG work) as outlined on page 7. Therefore, in addition to the 59 findings below, POL should, as a matter of high priority,
complete the Cli actions as agreed with Norton Rose and the HIG actions as agreed with KPMG.
Planned or In Progress Not Yet Started
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5.1 Governance: Overview
High-level Overview
This section encompasses our broader observations that have arisen across holistic areas such as:
* Organisation design;
* Roles and responsibilities;
* Communication;
* Culture;
* Data;
+ Technology;
* Risk management; and
* Governance
These areas all underpin the day to day operational business activities and are therefore fundamental in supporting and driving the shift towards a PM centric business, and ensuring the
focus is on the PM. Each of these areas plays a role in the end-to-end PM Journey and the support they receive, as well as the support that the POL teams require to deliver on their PM
centric objectives.
Specific observations on particular stages in the PM journey are outlined in sections 5-9. However, there are additionally some general overarching observations which are outlined in this
section.
The following table sets out the number of findings or improvements identified by risk rating:
Planned or In Progress Not Yet Started
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5.1 Governance: Overview
Summary of improvements to date
Anumber of change initiatives are underway in some of these broader areas, such as the Driving Postmaster Centricity cultural workstream, which includes activities that have commenced
in respect of cultural understanding such as listening groups, and commencing the articulation of desired values and behaviours.
From a governance perspective, a Voice of the Postmaster forum has also recently been created, which meets on a monthly basis and reviews PM Insights gathered and a selection of
Postmaster metrics on a dashboard. There is also ongoing work in respect of identifying risks that have an impact on PMs, which will allow greater insights into areas that may require
additional mitigating activities if the activities are outside of risk appetite thresholds.
There has also been a notable shift in communications with PMs, with better targeted communications for PMs being developed, and listening initiatives to open up conversations between
POL and PMs on a more regular basis.
See Section 5.3 for further details of improvements noted.
Summary of further improvements identified
We have outlined five high priority improvements and two medium priority improvements across these overarching areas. The high priority findings are summarised below, with full details
and recommended actions provided in the following section:
1. Complex System Landscape making single view of PM challenging (G1): There are a number of different systems in use for processing and recording interaction with PMs. Multiple systems
are in use by different teams, and a combination of these systems are required to paint a holistic view of a PM at any one time.
2. Values and Behaviours not yet embedded across Organisation (G2): POL values, ways of working, and leadership behaviours, which will support the purpose and cultural change desired,
have not yet been identified and articulated. These are not being approved and agreed by the GE until at least mid-March.
3. No Overarching PM focused Governance forum (G3): There has been no overarching mechanism in place for review of POL performance in providing services to PMs or a governance
forum to help oversee and drive required PM related decisions and actions through to completion.
4. Lack of a plan to deliver against the high-level data strategy (G4): There is no detailed plan for activity behind the high-level data strategy or agreed funding and resourcing to take forward
activity around MI, data utilisation and optimisation.
5. Insufficient clarity on POL roles and responsibilities (G5): In line with the current organisational redesign work underway, it is essential that roles and responsibilities and expectations of
those roles are embedded throughout the organisation as these changes take place.
The medium priority improvements relate to a lack of an overall communication strategy (G6) and the need for a well managed, clear feedback mechanism to support continuous
improvement and suggestions from PMs (67).
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5.2 Governance: Improvements Identified
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PM at any one time. The systems in use often do not ‘speak’ to each other.
This lack of an overall picture results in a siloed approach to working and the provision of
disjointed support to PMs, with customer support teams not having visibility of previous issues
/ or queries raised. This results in a risk of duplication, time wasted or the wrong interventions
and/or decisions being made due to incomplete information. There is a risk of detriment if a
PM raises a dispute that is not effectively dealt with if multiple teams on different systems are
involved
There has been some consideration to date of systems landscape and mapping, but this is in
the early stages.
2. Perform additional systems training to ensure that systems
are being used as effectively as possible, e.g., on Dynamics, to
ensure joined up across Business Support and other PM facing
teams.
3. In parallel, POL should develop an overarching and enterprise-
wide forward technology strategy, which sets out a vision for
‘each component of technology estate and overall timetable for
key changes required to more away from legacy infrastructure.
As part of this strategy there should be a clear view, which
should be developed in conjunction with the rest of the
business, on some critical elements including:
+ Clarity on standard operating procedures and processes
which should be supported by technology.
+ Is asingle customer view the goal? What is the optimal way
to achieve this?
+ How can POL systems provide a support PM with all the
details needed to provide the support in one place:, such as,
cash and stock management requirements, transaction
data, onboarding processes, and transaction corrections?
* What information would be self service for PMs? How does
this link to PM requirements/capability/ training?
+ The extent to which POL continues to rely on 3rd parties vs
development internal capability for systems changes and
upgrades.
4, Longer term activities would then involve architectural
improvements to the underlying systems required in line with
POL's technology strategy.
Progress &
Reference saa i Suggested
Number Finding Recommendation Responsible Accountable Corpjetion
Date
Gi Complex System Landscape making single view of PM challenging 1. In the short term, a detailed review of systems should be Responsibilities Jeff Smyth 1, 2, 3: Short
performed to understand where there could be better for term ~
There are a number of different systems in use for processing and recording interaction integration. Management should work with POL IT to identify requirements following 12
with PMs, as set out in the diagram shown in Appendix G, Multiple systems are in use by which technology solutions will best meet the business needs will sit across weeks (End
different teams, and a combination of these systems are required to painta holistic view of 2 and outline requirements dittarent August 2021)
business areas:
Gary Walker,
Simon Oldnall,
Tracy Marshall,
Andy Kingham,
Tim Perkins,
Russell Hancock,
Henk van Hulle
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Whilst there are already activities being undertaken through the culture workstream
{such as Roadshows and Adopt an Area initiatives), until high-level values are defined,
such activities will not be able to consistently reinforce the POL vision. Continued and
regular communication must be conducted to reinforce values and behaviours desired,
‘once these have been established,
Significant effort has been made to improve cultural engagement over recent months,
and the initiatives are similar to what other organisations have had in place, such as
townhall meetings, job twinning etc. Specific improvements are:
+ Engagement events (prior to COVID}, consisting of small groups of invited PMs and
executive and senior POL colleagues, as well as regional listening groups hosted by
AMs. A survey was issued in April 2020 to understand what Post Office could do to
help PMs during COVID. There were also ‘We're Stronger Together’ events in July
2020 across nine regions and POL has subsequently published ‘you said, we did’
feedback
* ADriving Postmaster Centricity culture workstream was commenced in January 2021
and will run to July. This will support deliverables aimed at developing value
led behaviours in line with POL’s ambition to be PM centric. Currently, some
activities had commenced, including an "Adopt an Area" activity aimed at
encouraging SLG members to meet with AMs to listen to PM feedback. Key themes
arising from this activity will be fed into the new Voice of the PM forum (discussed in
the Governance section), and into discussions with the GE in March 2021, on key
priority areas to focus improvement efforts on. There is also an org-wide Pulse
Survey this year, which has included a number of new questions to gain insights from
colleagues on satisfaction, strategic engagement, values and leadership and to act as
a baseline for further improvements.
* Listening groups were also commenced in February, to gain insight from PMs to help
drive the design of the POL new values, ways of working and leadership behaviours
that will support the POL purpose and the culture changes required. The results of
the initial listening groups are expected in March 2021, with a review of the results
and definition the subsequent values and behaviours expected to be agreed with the
GE in April 2021. This will trigger further activities to embed these agreed ways of
working, through a formal launch of the values and behaviours via the "We are Post
Office” campaign. A Week in the Life of a PM is a further activity designed to provide
support function colleagues with an immersive experience to see what itis like for
a PM running their own business.
changes so that messaging and the right audience are targeted at the
appropriate time, There also should be continued liaison with the
Communications team to share the desired values and behaviours ina
co-ordinated approach.
Key cultural aspects for POL to ensure are focused on throughout the
planned activities are:
Being clear about purpose, values, and aligning purpose and
values into the business model and strategy.
Defining what PM-centric really means on a day to day basis, and
how this can be measured and assessed,
Delivering a clear tone from the top in embodying the purpose
and values, promoting a positive workplace culture.
Using the purpose and agreed values for decision making and
focusing on key priorities.
Communicating and motivating colleagues to exhibit the desired
behaviours.
Having a mechanism in place to measure whether the desired
culture is being achieved, to ensure that progress is being made
Acting on feedback received through cultural surveys e. the Pulse
Survey which is currently underway will be really insightful and
includes cultural questions for the first time, so it will be key to
review the results and adjust culture workstream activities as
required
Consider other data sources to evaluate the culture, such as
turnover, sickness, community impact, quality of service etc.
2) Specific and regular communication on values and culture is
required to embed the PM centric focus across the whole organisation
to ensure the cultural shift becomes part of the norm for all POL
colleagues in all roles
Progress &
Reference Suggested
a Finding Recommendation Responsible Accountable Coe ton
Date
62 Values and Behaviours not yet embedded across Organisation 1. Confirming Values and Behaviours should be a priority activity from 1) Juliet Lang, Lisa Cherry ASAP—next 12
The desired cultural shift towards putting the PM at the heart the business has not been _ which other activities and messages should be tailored. These values Daisy ope, weeks (End May
consistently embedded across POL. POL values, ways of working, and behaviours (which —_ and behaviours should be embedded in training and policies, and it Stephen O'Reilly 2021 Long
will support the cultural change desired) have not yet been identified and will not be should be clear how they support the strategy of the organisation. The Term
approved and agreed by the GE until Q1/Q2 2021. planned activities should happen in tandem with wider org. redesign bs chara
aylor
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Progress &
Reference Finding Recommendation Responsible Accountable eaaetit
Date
G3 No Overarching PM focused Governance forum Use the Voice of the PM forum to review the collated PM Insights in the short term, to Gareth Clark, AmandaJones Short term—
understand priorities and other MI that may be required, whilst establishing an overarching following 12
To date, there has been no overarching mechanismin place to governance forum/committee to sit on a Quarterly basis that achieves the following: bate weeks (End
review POL performance in providing services to PMs, nora ‘August 2021)
governance forum to help oversee and drive required PM + Understands all the risks associated with PM across the POL and the controls in place to
related decisions and actions to completion. This lack of mitigate these risks
visibility has manifested throughout POL and resulted in a * Sets clear risk appetite for each area of risk and therefore can prioritise mitigating activities
disparate and non-cohesive way of working with PMs anda + Identify and set out assurance requirements across the 3 Lines of Defence over the key risks
lack of focus on the issues that matter most to PMs. None of * Has an agreed mechanism for prioritising activity onto the key areas of risk across the
the existing forums consider all the required elements of a organisation
cohesive risk-driven BAU committee, which we believe is + Establishes key PM metrics that require tracking and establish thresholds/ risk appetite for
required to oversee and govern the progress required in order these metrics
to place PMs at the heart of the business. Each current group + _Receives relevant Ml on key agreed metrics that align to key areas of risk identified
has a specific remit for a specific purpose, but there are several * Receives regular input from AMs and field teams on issues across the network
aspects that are not being captured by the current groups. * Reviews MI in relation to branch performance at a product level, (including for instance
transaction corrections)
Additionally, there is no mechanism in place to shift attention «Has the authority to review points routed through for escalation and make decisions and
nko emeralna risks thet may cequite more focusorare resolutions e.g. appeals or discrepancies that require resolution
‘operating outside of risk appetite as the risk management + Has a mechanism for identifying emerging trends and issues, using risk indicators from the
framework in place does not allow these to be identified key metrics
currently or discussed in an appropriate governance forum. * Agreeing required actions based on any emerging trends/ MI and who is accountable for
The current Ml and reporting in place does not provide clear these actions
insights into how POL's strategy is performing, ora clear view * ‘IS able to clearly measure against agreed targets and objectives
con branch performance or conformance insights through the Hold relevant individuals to account for any actions deemed necessary and track actions
KPI's currently in place, to ensure that POL is achieving the through to completion; and
‘outcomes it desires, and there is no forum for this information * Responds to feedback received through feedback channels, and has the ability to action
to be reviewed within. change requests up to a certain magnitude.
There is also an existing Risk and Compliance Committee (RCC) _b) The following principles and elements should be considered to support the governance
which is in place and meets six times a year prior to Audit forum which should include:
Committee meetings. The ToR for this group is specificto * Consideration of who the Chair of the forum should be. This individual should be senior
broader Risk and Compliance topics, and in discussion with enough to hold others to account, for instance a GE member, GE-1 member or the Chief
management was not considered the appropriate forum to Risk Officer.
address all the required risks and reporting metrics * Consideration of attendees by role and responsibility e.g. COO, Head of PM Engagement,
recommended. CRO etc. and also representation from AM and field teams
+ Frequency of the forum: e.g. monthly or quarterly. Who the secretariat should be
+ Ensuring there are Agendas, pre-reads, action tracking, and that each meeting is formal and
minuted.
Consideration of alignment and interaction with other governing bodies within POL should also
occur,
Progress to date is outlined on the next slide.
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Progress &
Suggested
‘Completion
Date
Reference
Number Finding Recommendation Responsible Accountable
G3cont’d No Overarching PM focused Governance forum (cont’d) Gareth Clark, AmandaJones Short term—
following 12
Progress to date has included: Mark Baldock weeks fEhd
Risk management activities are underway to help ensure that the impact on PMs has been clearly August 2021)
articulated across the group risk registers. The aim is then to have these risks approved by the May Audit
Committee and loaded into the GRC tool. PM risks should then be identified easily and able to be
reviewed as required. Risk appetite is similarly being reviewed at present and articulated, so that it will
be possible to see the risks where POL are operating within or outside of desired risk appetite. This is
underway for both legal risk appetite, and shortly for operational risk appetite. A number of activities and
groups have recently been established to support the transition to being more PM centric focussed and
to provide some overarching visibility of the key matters that require addressing.
Voice of the Postmaster (VPM)
The Voice of the PM is a forum set up in early February 2021, the purpose of which is to understand PMs
feedback and complaints and measure how effectively root causes are being remediated. The objectives
of this group are to:
+ Measure how effectively the areas that matter most to PMs are being improved, eg. the most
frequently occurring issues
+ Incentivise by making connection between cause and effect. Identifying trends and prioritising
actions to resolve issues.
+ Leadership through cross-functional alignment on priorities and accountabilities
* Communicate to PMs and colleagues using Voice of the PM Insights
This forum will meet on a monthly basis and will review PM Insights, received through activities such as
‘Adopt an Area, and will also review a number of PM metrics that are being developed. These include
complaints data, Going forwards, if there are new insights then additional metrics will be considered and
data gathered where these would be useful to get further understanding of the insights that are arising.
This forum has had one formal meeting (at the time of writing). Actions will be agreed at each meeting
with accountable individuals tasked with completing these by agreed due dates set out in the action log
after each meeting.
Improvement Delivery Council /Group (IDG)
The IDG has recently been set up and had its first meeting on 12th February 2021. The aim of this group
is to ensure there is a clear set of workplans and action tracking to provide confidence that the historical
POL issues are being tracked and remediated. This group has representatives from Supply Chain, Inquiry
process and Legal Compliance, PM Team and Culture, IT and Network Teams. This is a weekly meeting
where the agenda focuses on four lists of required actions relating to Supply Chain, IT, PM and Network
and these are consolidated on a weekly basis. This Group is designed to be a short term forum for a 16
week period to track the required actions through to completion within this timeframe and is not
designed to be a BAU group going forwards.
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October 2020. However, there is no detailed plan for activity
behind this nor has funding or resourcing been agreed to
move this forward. Without this in place, POL is limited in its
ability to apply data to improve products and service, its ability
to use telemetry to enhance the PM and customer experience,
and its ability to use data across business operations to
improve performance and support data-driven decisions.
‘As noted in G1, there is no single MI view of a branch and
allthe interactions with them. This limits the ability to have a
clear view of insights that can be used to enhance the
PM experience. BIT tool provides lots of information
and is used by AMs, but Mi and data is still limited. Area Teams
can view what central teams action, whilst the central teams
cannot view what the Area Team are doing. Itis therefore
difficult to understand what the key issues are, plus
develop an understanding of emerging risks, large scale
problems. (see POL IA Review: PM Reporting)
We recommend that Mi should be divided into three MI reporting tranches, namely:
+ Governance Forums MI;
+ Operational POL BAU MI; and
+ PM ML
Inthe short term, focus should be on incremental improvements to what is in place, and making
better use of the MI available at present, this can be done through:
* Creating a plan to deliver against data strategy using the guiding data principles outlined
in Appendix to support both POL and PMs in leveraging data. This strategy should support
the use of data to:
+ innovate products and services;
+ use telemetry to enhance and improve the PM and customer experience; and
+ apply data across business operations to improve overall performance in POL,
using insights to support data-led decisions.
+ kPls, KRis and SLAs should be developed that align to both the strategy and the developing
POL risk appetite thresholds. As part of this base line metric positions should be
considered, together with clear performance and conformance indicators that can quickly
and easily articulate insights and strategy execution. In addition, early warning
indicators should be created alongside KP!'s and applied.
+ We recommend that POL review what types of insights and metrics are required to support
better insights. We have included in Appendix G a list of potential MI metrics that should be
considered.
In the longer-term, consideration should be given to:
+ The implementation of the data strategy
+ The potential creation of an overarching Data Lake, which is supported by
a Reporting Warehouse and MI Insights/Reporting Team.
+ POL should consider the benefits of implementing a Self-Service Mi Function through
existing tools such as Branch Hub which can be linked to the reporting warehouse.
Progress &
Reference ; Suggested
—_ Finding Recommendation Responsible Accountable (eee ton
Date
Ga Lack of a detailed plan to implement the high-level Data Further detail to deliver against the data strategy should be developed, including details of Rob Wilkins Jeff Smith Short term =
Strategy approach, priorities, timings, budget and resources needed — with priorities aligned to the needs following 12
, - of PMs and the business in supporting them. Funding should then be sought through the change uk Shah weeks (End
POL's data strategy was presented to and agreed by GE in tre August 2021)
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Progress &
Reference i ? Suggested
umber Finding Recommendation Responsible Accountable CoPpletion
Date
65 Insufficient clarity on POL roles and responsibilities + POLroles and responsibilities should be clearly set out, agreed and documented, before Daisie Jope Lisa Cherry ASAP—next 12
being communicated clearly to all relevant teams and PMs. weeks
Our review has highlighted the complexity of the current POL
organisation and an overall lack of clarity between teamson + _ POL should subsequently assess whether current resource, support and skills levels are
roles and responsibilities, which undermines a cohesive sufficient to support the proposed operating model.
approach across the PM journey. The organisation redesign
work in progress seeks to remediate this but there will need to
be complete clarity in order for the changes to be successfully
embedded across the organisation and drive improvements
Consistent monitoring and supporting activity should be in place to embed the new op
model over the subsequent 5-6 months,
However, further work is needed in ensuring the roles and
responsibilities of the support teams and field teams are
clearly documented and communicated to the PMs as well as
the wider business.
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5.2 Governance: Improvements Identified
Progress &
Reference Number Finding Recommendation Responsible ‘Accountable SuBeested
Completion
Date
66 Lack of an overarching communications framework A strategic communications framework for PM engagement should be developed Rina Patel RichardTaylor ASAP—next 12
The framework would need to include the following: weeks (End May
Effective communications between POL and PMs is key to Alice Cookson soni hah
developing and sustaining effective working relationships Governance term—
' h fi 1 Executive sponsor; POL owner; delivery teams and roles, budget and PM insights T*@eY Marshal following12
At present, there lsino(overarching communication framewor + Areview of research, including branch correspondence review, surveys and poorer
resulting in a lack of clarity on roles and responsibilities, the finding from ‘listening exercises’ to understand communications requirements,
‘communications channels in place, and the formal processes ‘August 2021)
concerns or challenges and including specific needs of different PM types including for
open to make communications. strategie parmershipg
* An ‘audit’ of communications channels used and PM-POL relationship matrix
{assessing who is talking to whom, through medium and utilising which information)
Objective and Strategy:
* A formulation of communications goals and strategy covering both strategic and
operational/change communications
+ Definition of tone of voice, language, and information-required.
Campaign planning:
+ Setting out a formalised rhythm and/or forward-looking plan to communicate with
PMs.
+ Formalised process should be created to share key information, including
announcements, messages and strategic shifts to auxiliary communications functions,
including AMs and Contact Centre.
Measurement
+ Measurements and tracking tools should be implemented as required to measure
progress and define success.
Landscape analysis
+ Anunderstanding should be developed of the dependencies this strategy has on
other parts of POL’s change programme.
Guides
+ Updated style guides and templates for communications led by professional from
@ communications background.
Best practice would be to develop an overarching framework to a) understand what
success looks like; b) measure that success; c) better coordinate; d) manage and fix
issues; and) identify risks associated with the planned activities.
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Progress &
Reference 7 Suggested
Number Finding Recommendation Responsible Accountable ‘Completion
Date
a7 Continuous improvement and feedback mechanisms ‘A continuous improvement mechanism should be visible and KatrinaHolmes Tracy Short term —
available to all colleagues and PMs, so that feedback and Marshall following 12
POL has not historically had a culture which encouraged transparent feedback or continuous improvement suggestions from all colleagues and PMs are weeks (End
improvement activities. Such practices form key parts of an effective governance framework considered, triaged and addressed in an appropriate forum (see August 2021)
and should function to support continual learning and process improvement. As such, there Governance theme for more detail)
has been a lack of clarity over the channels by which PMs and front line support teams should
provide their feedback. This lack of a continuous improvement in POL's culture can impact on _There should be clear guidance on how these routes should
morale, and also reduces the ability of the organisation to assess and respond to valid work and what the channels are for raising suggestions and
feedback that may be gained from those in operational roles. comments, to address the issues raised regarding knowledge of
how and where to raise feedback. Actions taken should then be
fed back and communicated in response. Continuous
improvement suggestions could be funded through a small
funding budget which is owned and managed by the suggested
new governance forum for example.
POL should also incorporate a channel for PMs to provide
feedback on specific change initiatives and proposed business
cases, to obtain their views, so that the focus of improvements
always incorporates a PM focus.
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6.1 On-Boarding & Early Days: Overview
High-level Overview
On-Boarding and Early Days covers four key areas of the PM journey:
1. Attract & Appoint 2. On-Boarding 3. Training 4. Early Days Support
1. Attract & Appoint — Potential new PMs are typically attracted via face-to-face interactions with NPLs, who are responsible for maintaining service across the Post Office network, or via
commercial transfers from one PM to another.
2. On-Boarding — Managed by Support Advisors who are the key point of contact for new PMs, on-boarding includes the Financial Assessment, Suitability Assessment, SMART ID, vetting,
Fit and Proper and contracting processes.
3. Training — Based on the branch type (e.g. mains vs locals), this involves between 14-18 hours of online eLearning covering products, services and compliance. This is followed by 2-3
days of face-to-face classroom training with QATLs to cover Horizon online training, and learn about transactions, processes, products and services. After go-live, PMs can access
additional eLearning and classroom courses on topics such as ATM, Lottery and Investigating Discrepancies, and access further distance learning packs on common products and
services.
4. ‘Early days’ support — BSMs are responsible for providing intensive early days support to new PMs, typically for the first 6-9 months before being handed over to the AMs. From branch
go-live, an on-site trainer is scheduled for the first six days to help with branch set up, on-site training and completing a trading period balance. An Operational Training Guide
(containing operational instructions on common transactions) and AS laminated work aids are also available to support new PMs. BSMs will then provide on-going support to new PMs
where required; for example, BSMs can arrange for further on-site training (called Interventions) to be conducted where needed.
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6.1 On-Boarding & Early Days: Overview (continued)
High-level Overview (continued)
The overall on-boarding journey is currently 6-9 months long, including 12 weeks build time. The following table sets out the number of findings or improvements identified by risk rating:
Planned or In Progress Not Yet Started
Summary of Improvements To Date
Over the past 18 months, significant improvements have been made to enhance the PM experience. In on-boarding, the Support Advisor role has meant PMs have one key point of contact
compared with multiple different individuals previously (see ref ON14). Some improvements have already been made to the Financial Assessment process (see ref ON15), however, further
improvements are still being made and are required (per ref ON2) in this area. Suitability assessments are now conducted by the BSMs to identify if a potential new PM is suitable for the
role. The tone and approach of these sustainability assessments is now a lot more welcoming and friendly compared with the structure and nature of the assessments formerly conducted
by the On-Boarding and Assessment Managers (see ref ON16). Management have planned further improvements to on-boarding with an ambition to reduce on-boarding timelines,
currently from six to nine months down to four months by the end of 2021 (see ref ON1)
Since August 2019, a full review of PM training has been performed and significant changes made to eLearning and classroom content. In particular, additional eLearning and classroom
courses have been introduced for complex / common problem area topics such as ATM, Lottery, Monthly Balancing and Investigating Discrepancies (see ref ON19). Two additional Portable
Horizon Units (‘PHU’) have been introduced so that classroom training facilities can be brought to new PMs (particularly in rural areas), which eliminates the need for PMs to travel long
distances to training facilities (see ref ON21). There are now a total of three PHUs. Looking forwards, Management are currently working on ways to digitise training to encourage PM
uptake and improve learning (see ref ON11).
In terms of early days support, since November 2020, BSMs and on-site trainers are now part of the Franchise Partnering Team alongside AMs (previously part of On-Boarding). This has
helped to improve the communication and ways of working between PM-facing teams responsible for early days support (see ref ON13).
See Section 6.3 for further details of improvements noted.
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6.1 On-Boarding & Early Days: Overview (continued)
Summary of Further Improvements Identified
For On-Boarding and Early Days, we have identified six medium and six low priority improvement opportunities to further enhance the PM experience. Four out of the six medium findings
relate to on-boarding — namely, ensuring clear and upfront communications with potential new PMs around on-boarding processes and timelines (which although improved, are still
considered lengthy and require a lot of information and input from the PM) (ON1); further work to review and improve the financial assessment process (ON2); review of current on-
boarding SLAs which are very timeline driven rather than focused on PM experience or satisfaction measures (ON3); and ensuring PM feedback is captured centrally and reviewed
periodically for ongoing future improvements in this area (ON4). Two further medium priority findings relate to training, specifically to broaden the current training content which is
currently focused on common products and transactions (ONS), and implementing a cross-functional feedback loop to review and improve the training process and experience for new PMs
(ON6).
Six low priority improvements have been identified, where it would be beneficial to make these changes to improve the PM experience. Management are aware of all of these improvement
opportunities and will consider our suggested recommendations to address.
Refer to Section 6.2 for a full list of findings identified.
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+ Anumber of documents needed for the FA are not in the PM's direct control to obtain within a timely
manner (e.g. Value Property Interest) and anecdotally, this is one largest contributors to delays in the
process,
* Once a new PM has passed the FA, there is no further follow up or monitoring of actual branch
performance. This raises the question of whether the current FA process is appropriately balanced
against the financial risks POL is assessing and measuring during on-boarding
Feedback from stakeholder interviews indicates that the current process is based on a legacy POL investment
in mains (~£80k) and local (~£20k) branches from Network Transformation. There was a government
requirement to maintain an audit trail to justify the investment decision, and the Financial Assessment arose
as a response to this requirement. Although POL's investment is now minimal, the level of due diligence has
not been updated accordingly.
A draft document (‘On-Boarding Financial Assessment - Scenarios’) which proposes a more risk based tiered’
approach to the FA is currently being written and reviewed in collaboration between On-Boarding and
Finance. The on-boarding team also intend to hire a new Business Analystin Qi to help review overall on-
boarding processes and timelines, which will include review of the FA Process
Progress &
nas Finding Recommendation Responsible ‘Accountable eeiction
Date
ONL Upfront On-Boarding Communications 1. Clearly define the overall on-boarding Jayne Pardoe Tracy ASAP — next 12
journey and timelines (including training Marshall weeks (End May
There is no clear documentation or communications to inform new PMs upfront of end-to-end on-boarding cothmitments} for hel PMA, Fotinally 2007
timeframes, common challenges faced, any delays or changes to the process, or on the nature of training publish this in an easy to digest format (e.g
commitments which would help inform and manage PM expectations from the outset. ona page Via averview):<o all PMtaclng
Whilst Support Advisors send out a welcome email containing 12 different attachments, none of these teams (NPLs during the attract and recruit
documents cover the above (they mainly relate to POL privacy notices, vetting, financial assessment process, Support Advisors during on-
instructions, etc) boarding and BSMs during the Suitability
Assessments) can share and discuss this
Note: The PM Effectiveness Director has secured funding to recruit a Business Analyst in Qi to support with potential new PMs from the outset.
further improvements to on-boarding, specifically around Financial Assessments and digitising the contracting
process. The ambition is that such changes will reduce overall on-boarding timeframes from 6 months down 2, _Brief all PM-facingteams on the importance
to.4 months. of sharing the above with potential new
PMs at key stages of on-boarding.
on2 Financial Assessment Process 1. Finalise review of the FA process. Jayne Pardoe— Kathryn Short term —
Management should ensure that the FA On-Boarding Sherratt following 12
The financial assessment (FA) process continues to be lengthy and onerous and this has been acknowledged process addresses POL's due diligence weeks (End
by all teams involved in PM on-boarding. The current aim is for new PMs to return all FA documents within 28 requirements whllst being pragmaticand ‘August 2021)
days. However, the average turnaround time is closer to 56 days. Current challenges include: practical for new PMs in terms of the ype Charlotte
* A’one size fits all’ approach that does not take account of the size and type of branch for which is being and volume of documents required Ukaige & Sam
applied. Bancroft-Wilson
2 Communicate any new FA processes and =Finance
requirements to relevant POL teams (i.e.
NPLs, Support Advisors and BSMs) to
ensure consistent understanding and buy-
in, and update on-boarding documentation
(both internal-POL and PM-facing) to reflect
the changes.
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Progress &
Reference 7 7 ‘Suggested
iuumaber Finding Recommendation Responsible Accountable Completion
Date
ons (On-Boarding SLAs 1. _ Revise the on-boarding team’s JaynePardoe —TracyMarshall__ Short term—
_— R _— performance metrics to include KPIs following 12
The On-Boarding team’s performance is currently measured against 30 sls for 2020-21, all of which are around quality, PM experience and PM weeks (End
focussed on on-boarding new a within target timeframes. However, there are no performance metrics reahisfaciion ine atures The mieusres ised ‘August 2021)
around quality, experience and / or satisfaction measures to assess whether on-boarding has been a positive to assess this could be linked to the post-6
‘experience for new PMs. Example of the current SLAs include: month PM Feedback Survey (although the
* Allocations (90% of notice to end contract/resignation acknowledged within 1 day). questions within the Feedback Survey
would need to be updated to ensure that it
* Financial Assessments (Links to be sent within 1 to 3 days of allocations). captures the relevant information around
Furthermore, feedback from Support Advisors interviewed indicated that they see themselves as ‘document satisfaction with their experience)
checkers’ and used language such as ‘at day 14 and 28, we chase the PMs to return Financial Assessment a
” 2. Use training and communications to Medium'term
documents’
remind Support Advisors of the importance — FY2122 end
The on-boarding SLAs and Support Advisors’ view of their role and language used is inconsistent with POL's of their role for new PMs, and to continue (End March
Vision of putting PMs at the heart of the business, and inconsistent with the Support Advisor role which was driving mind-set and culture change 2022)
introduced to positively support PMs through the on-boarding journey. towards a more PM-focussed organisation.
The organisational design T2 work announced in early March 2021 will help to address some of the above, by
equipping all Support Advisors to undertake end-to-end on-boarding activities (including SMART ID, vetting
and fit and proper), resulting in one contact for every PM. Management are also in the process of diarising
culture sessions with the full on-boarding team, to remind them of the PM focus in terms of experience rather
than timeframes for delivery.
ona Post 6-Month PM Feedback Survey 1. Ensure that all PM feedback relatingtoon- Jayne Pardoe & Tracy Marshall ASAP —next 12
‘ boarding and trainingis captured centrally Ranjeet Jouhal weeks (End
apn Fees Survey was launched in Oct / Nov 2020, sent by the Support pai to new PMs 6 months to eniable effectivejanalysls investigation, May 2021
after on-boarding is complete. Opportunities exist to use this feedback to drive further improvements to on- review and reporting to be performed on a
boarding processes and training. For example, the Period 8 survey results revealed that: monthly or quarterly basis at a minimum,
* 33% of respondents disagreed that classroom training prepared them to run their post office. This feedback should then be used to drive
continual improvements (where valid and
* 20% disagreed that after initial training, they were confident with weekly / monthly balancing. required) to on-boarding and training.
Management are aware of the above, and are currently updating the feedback surveys to gain better insights
into the on-boarding experience overall. In addition:
+ Management have introduced additional mechanisms to capture PM feedback and complaints (currently
logged in a complaints feedback tracker).
+ Totara is also being investigated as another tool for capturing PM feedback.
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Training for new PMs (specifically eLearning, Classroom and on-site) is primarily
focussed on products and common transactions (e.g, Mails, Money Travel Services,
‘ATM, Lottery) with limited coverage of the day-to-day operational running of a branch
(e.g. a day in the life of a PM), common customer-related issues, customer service, soft
skills training, or practical input on how to build and grow their business.
Similarly, the Operational Training Guide and physical Work Aids mainly provides
operational instructions on common transactions and operational activities around
setting up a stock unit, cash management, weekly and monthly accounting etc.
Furthermore, we have noted issues relating to PM's first cash deliveries. Cash may be
delivered to new branches before the on-site trainers are due at the branch to carry out
the setup, and in this case the rem will be stored in the safe until the on-site trainer
arrives. When branch transfers take place, the on-site trainer is not always on-site for
any rem deliveries/collections, as some branches are on fortnightly rems and the on-site
trainers are only on-site for 6 days. In this case, the on-site trainer can only talk the PM
through what to do using handouts left on-site and, where possible, make up a bag of
notes for despatch. Whilst classroom training is performed on this procedure and PMs
have access to an AS Remittance Deliveries work aid, PMs may be performing a high-risk
process without adequate on-site support.
Management are aware of the above and action has already commenced to review ways
of improving PM training
for new PMs to cover the practical and operational
aspects of running a branch, common customer
issues (and how to resolve them), what good
customer service entails and support to grow and
develop their business. Some of this training content
is already available for AM but consideration could
be given to using some of this directly across the PM
community.
2. Consider introducing a PM shadowing programme to
help new PMs experience ‘what it's like’ to run a
branch after either eLearning or classroom training,
but before go-live
3. With respect to cash management, review the on-
site trainer scheduling process to ensure that a
trainer is on-site during the first cash delivery
Reference
Finding Recommendation Responsible Accountable Progress
Number me big
Ons, PM Training Content 1, Review and broaden the current training programme Ranjeet Jouhal Tracy Marshall Short term —
following 12 weeks
(End August 2021)
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training process and experience for new PMs. All of the above teams playa key role in PM training, however, as
they are separate teams that support different stages of the PM journey, there is a risk that potential
improvements to training are not effectively shared, reviewed and implemented.
Examples of suggested improvements to training from stakeholder workshops include:
+ There are various views on the format and length of on-site training (currently 6 days from branch go-live).
Certain stakeholders believe that 6 days is enough, but that this should be split across a number of weeks.
Others believe that the number of on-site days needs to be doubled as not all transaction types will occur
within the first 6 days {although on-site trainers perform role plays if this is the case)
* On-site face-to-face support cannot be scheduled for intervention cases unless work aids and classroom
training are first offered to the PM. It is felt that this approach could be seen as dismissing or failing to
adequately address the PM's call for help, especially as on-site training is by far the most requested form of
support. Feedback has also been provided to indicate that an on-site visit after an intervention class would
ensure PMs are fully confident of what they have learnt in the classroom.
+ AlleLearning needs to be completed before classroom training but feedback shows that PMs may be
‘answering questions to which they do not know the answer, and that splitting this so that half is done
before and half done after classroom training may be more effective.
* eLearning (8-10 hours) is too long for most PMs who are already running businesses and it could be
shortened or delivered in other ways (e.g. via additional on-site training or BSM support) without
compromising PM learning,
* Classroom training has been compressed and is not long enough, so it feels like a rush to deliver and embed
this knowledge to new PMs.
* Additional Horizon training would be beneficial to PMs as the system is clunky and not intuitive to use.
Note: there is an annual review process conducted by the Training team around eLearning and classroom
content. This finding is about a cross-functional review between the On-Boarding, Training and Franchise
Partnering Teams. Further work is already underway to consider additional options for further digitisation of
training content.
QATLs, on-site trainers, BSMs and
any other relevant business
stakeholders) for feedback on
training to be periodically reviewed
and assessed, As training is a
responsibility shared between
different teams, this forum would
ensure that overall training
objectives for new PMs are being
covered across the entire PM
journey.
Reference pees
Finding Recommendation Responsible Accountable Suggested
Number ‘i
Completion Date
ONé Internal feedback mechanisms to improve PM training 1. Implement a cross-functional Ranjeet Jouhal Tracy Marshall 1. Short term —
training review forum (with following 12
Stakeholder workshors held with Support ola (who raise interventions QATLS (classroom trainers), on- Teprésentation from the schedulers weeks (End
site trainers, BSMs and AMs indicate that there is no cross-functional feedback loop to review and improve the Wholbook interventiotis classroom ‘August 2021)
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[ewPrirtymernemens
Reference iovest
Finding Recommendation Responsible Accountable Suggested
Number
Completion Date
On? ‘On-Boarding face-to-face contact 1. Support Advisors to offer Jayne Pardoe Tracy Marshall (for Short term —
Introductory video calls to new PMs recommendation 1) _ following 12 weeks
Opportunities exist to improve the on-boarding experience for PMs by offering face-to-face contact, {aside from the Welcome Email) to (End August 2021)
with thelr Support Advisors and BSMs. introduce themselves and put a face
‘Whilst NPLs manage on the ground relationships with new PMs as part of the attract and recruit toa name. An application such as
process, Support Advisors liaise with new PMs via phone and email and BSMs conduct Suitability Skype, Teams or Zoom would
Assessments via recorded telephone calls facilitate this.
Offering face-to-face engagement at key stages of on-boarding (acknowledging work-aroundsfor 2‘ BSMs to offer Suitability Andy Ringham {for
COVID and that PMs may decline as they do not have the technology needed for this) would help Assessments either in person or via recommendation 2)
deliver a positive experience for new PMs, particularly as current on-boarding timelines are lengthy video call
(6-9 months).
ons Conducting Suitability Assessments before Financial Assessment 1. As part of on-boarding re-design Jayne Pardoe Tracy Marshall Short term —
I work, bring Suitability Assessments following 12 weeks
Suitability Assessments are currently conducted after the Financial Assessments; swapping these forward (End August 2021)
processes around would improve the on-boarding experience because applicants would know that
they have passed the ‘interview’ stage before moving forward in the on-boarding journey (and onto
what is currently a lengthy Financial Assessment process).
This change would allow BSMs to build strong relationships from the outset: ‘set the scene’ around
the benefits and challenges of becoming a PM, 'manage expectations’ around the on-boarding
process and timelines, training commitments, ways of working etc., and answer any questions the
applicant may have before continuing with on-boarding.
Management already have plans in place to implement this change as part of an overall review of
the on-boarding process this year
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+ Name two business banking services.
+ What'is the maximum daily withdrawal limit for a Post Office Card Account card?
* When a customer comes into your branch and you introduce a product to them, depending on their
response, what might you do next?
assessment pass marks.
Reference Progress &
Finding Recommendation Responsible ‘Accountable Suggested
Number
Completion Date
ONS Learning Mi 1. Upgrade to latest version of I Ranjeet Jouhal Tracy Marshall Short term —
Totara available to POL. following 12 weeks
Whilst the eLearning system Totara is capable of tracking eLearning MI, itis not currently used to help drive checktheteare pedal (End August 2021)
improvements to training. Examples of the types of MI that could be captured include: inbeaitty tstles one
* Level 1 evaluation to get feedback on the system and what the PM thought of the eLearning module. complete
+ Time taken to complete eLearning modules.
* Average time to complete eLearning assessment and number of attempts. 2, Startariaystngetearniig
Mito help improve trainin
Sufficient resource has not been available to analyse this data to date. Management have expressed concern eesge wea
about data integrity within the system (for example, one user was shown to have completed an eLearning
module in four seconds) and will need to investigate and resolve this before they can confidently rely on this,
information,
There are plans in place for the Compliance Learning Manager to start performing analysis of this Ml and do
calls to PMs to elicit feedback approx. 6 weeks after they have gone live. Work has already been initiated to
collect feedback on a rolling basis that will eed into the annual review cycle of the learning materials
Management are in the process of upgrading to a higher version of Totara, which will enable POL to make
better use of the functionality and MI reporting available.
oNn10 Embedding of Classroom Learning 1. Review current classroom Ranjeet Jouhal Tracy Marshall Short term —
, . assessment quiz and following 12 weeks
A"level 2' learning quiz is conducted to test PM knowledge and understanding from classroom training. We concider whether the pap ribenteee
have identified that: format and questions are
* Pass marks are not assigned to the quizzes. appropriate to test PM
knowledge. We suggest
+ The quiz questions are basic and does not elicit useful enough information to drive real improvements to more difficult questions
content and delivery. that require the new PM
+ The quiz does not assess the higher risk / more complicated processes that PMs struggle with such as taidemonstrate;
hedaman knowledge of key topics,
ry and the introduction of
Examples of quiz questions include: role play assessments, or
a combination of both.
+ When is it ok to share your SMART ID username and password?
2. Introduce classroom.
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Reference Progress 2
Finding Recommendation Responsible Accountable Suggested
Number
Completion Date
Ona1 Refresher Training. 1. Consider making refresher training Ranjeet Jouhal Tracy Marshall Medium term —
{currently optional) mandatory to FY2122 end (End
Clssroom ibernitiied bali optional (etresher courses to PMs. There is an opportunity to ‘ periodically help PMs with ‘problem March 2022)
a whether refresher training should be made mandatory to ensure theta consistent level - topics’, as identified from the
knonledge and understanding is maintained Paps the network Bespoke refresher training could Franchise Parthefing or Serviced
also be used to address ‘problem areas’ or inform on ‘hot topics’ relevant to PMs. Support teams.
Under PSIP, Management have funding for a new Business Analyst in on-boarding to look at how
POL digitise training and allow remote training delivery to encourage uptake, including production
of more video content. Enablement of Horizon training mode is also being explored.
on12 Branch Contact File 1. Identify the team that owns the BCF. Regional Managers Andy Kingham Short term —
following 12 weeks
fs the PM moves throught on-boarding, taling andearly deysjoumey hand-offs are fodlated 2. Review the intent and purpose of (End August 2021)
yy an Excel format 'Branch Contact File’ (BCF). The BCF is initiated by the Support Advisors an BCF: what information is being
stored on SharePoint; itis then used by classroom QATLs, on-site trainers, line managers and capturedand why?
auditors to document any interactions with, and training undertaken by, the PM. The BCF is
ultimately handed back to BSMs for review and tailored early days support. 3. Assess whetherthe BCFis
From our review of the BCF in addition to feedback from stakeholder workshops, the BCF is clunky, appropriate and fit for purpose, or
complicated and not fit for purpose to allow effective and efficient communication of information whether there are alternative ways
between field teams, For example, the BCF: of working that are more aligned to
the ways that field teams currently
* Contains 228 rows of Instructions‘ and has 19 different tabs that can be populated (although communicate and operate.
not every tab will be applicable depending on the branch type)
* Does not support the way field in which teams work (i.e. on the ground f2f with PMs rather
than in front of a computer with an Excel file).
* Is time consuming and very lengthy to review, particularly given that BSMs can be supporting
anywhere between 30-50 branches (depending on location) at any one time
* There does not seem to be a dedicated owner, but rather it seems to be a document that is
used to record information before being passed onto the next team to do the same.
Management are currently in the process of reviewing the handover from On-Site Trainers to BSMs,
which will partially address some of the above.
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6.3 On-Boarding & Early Days: Improvements Noted
The following table outlines the improvements made by Management in the past 12-18 months, in line with the strategic aim of putting PMs at the heart of the POL Business.
Reference
‘lumber Improvement Name Description
ON13 POL Re-Org All on-boarding and early days processes have been brought under one GE member (Retail and Franchise Network Director) when this previously resided with 2-3 different GE members.
Further, since November 2020, the on-boarding and early days process has been split into 3 different teams under Head of PM On-Boarding, Head of Training Delivery anda Franchise
Partnering Director. On-site trainers and BSMs are now part of the Franchise Partnering Team with AMs (where previously part of On-boarding). Feedback from stakeholder workshops is
this move has greatly improved ways of working and communication between these teams and will have a positive impact on PMs
ona Creation of Support The Support Advisors role was created in 2019 to be the one point of contact for new PMs during on-boarding. Formerly three separate teams, new PMs would interact with a large number
Advisor role of different people and the multiple hand-offs resulted in a fragmented on-boarding experience and delays.
‘Along with improvements to the Financial Assessment process (see below), this has reduced on-boarding timelines from 12 months down to 9 months.
Onis Improvements to Certain improvements have been made to the Financial Assessment process to help reduce on-boarding, This includes:
Financial Assessment * Making the Financial Assessment form easier to navigate (when previously this had to be completed section by section)
* Creating a low risk business plan option based on net profit margin, allowing certain businesses to be fast tracked through on-boarding
+ Removing the need for forecasts if 2 years trading accounts or tax returns are available
+ Re-aligning the profit benchmark (previously £10k) to net profit margin, a much fairer and more relevant benchmark
* Holding Q&A sessions on the Financial Assessment process with Support Advisors and NPLs to enable common understanding of the process
Onis Suitability Assessments BSMs now conduct 'Suitability Assessments’ to identify if a new PM is suitable, in place of Assessments formerly conducted by the On-Boarding and Assessment Managers. The tone and
approach of the Suitability Assessments is a lot more welcoming and friendly compared to the old Assessments which were more process driven and contractual.
ona7 Post-6 month PM Since Oct / Nov 2020, Support Advisors send a PM Feedback Survey to new PMs 6-months after on-boarding is complete. This feedback is collated and presented to Senior Leadership on a
Feedback Survey monthly basis.
Onis Scheduling team Two schedulers from the Support Advisors team (within On-Boarding) who do scheduling for classroom and on-site training and interventions will be moved into the PM Training Team from
changes 8 March 2021.
oNni9 PM Training Since August 2019, a full review of new PM training has been performed. The following changes have been made to eLearning and classroom content:
* Monthly Branch Balancing eLearning module: Aug 2019
+ 3xnew work aids: Dec 2019
+ ATM/Lottery eLearning: Dec 2019
* 1x Investigating Discrepancies work aid: March 2020
+ Investigating Discrepancy half day classroom course: March 2020
* Learning Catalogue: V1 June 2020, V2 Nov 2020,
* Norton Rose updates to training materials: changes live Aug 2020
+ Internal Tone of Voice changes to classroom courses: Sep 2020
* New classroom 3 x 1 day courses: Oct 2020
* Internal Tone of Voice changes on all eLearning modules: Dec 2020
+ Operational Training Guide: Live Jan 2021
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Reference
"
Number Improvement Name Description
N20 PM training process The Training Team have created Process Maps which documents the PM training journey. This was published internally and shared across the retail network and all PM-facing teams via the
documentation Knowledge Centre in February 2021,
ON21 Portable Horizon Units Two new Portable Horizon Units (PHUs) have been provided to QATLSs so that classroom training facilities can be brought to new PMs (particularly in rural areas), eliminating the need for
PMs to travel long distances to training facilities. There are now a total of 3 PHUs
N22 Refresher Training QATLs provide refresher training to PMs every second week and feedback indicates that the uptake on these sessions is exceptionally high
N23 BSM and AM Ways of BSMs and AMs have introduced new ways of working (particularly in response to COVID) to ensure that their wide network of PMs are appropriately and sufficiently supported. This
Working includes ‘curry nights’ to bring PMs together in an informal setting to raise concerns or share knowledge with other PMs. Facebook and WhatsApp Groups have also been created to
disseminate information or communications quickly.
N24 Creation of BSM role In April 2019, POL introduced Business Support Managers (BSMs) to provide dedicated early days support to PMs in their first 6-9 months, before handover to the AMs.
ONn25 Expanded AM role In April 2019, the role of AMs changed such that every PM branch was assigned an Area Manager irrespective of size. This combined two former roles (those of AMs who looked after DMBs
and Area Sales Managers who looked after mains branches).
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7.1 BAU (Continuous Activities): Overview
High-level Overview
Business As Usual (‘BAU’) Continuous Activities covers a broad range of day-to-day services and processes, core to the experiences of PMs, including
Supply Chain
Management
Ongoing Training
Provision
Network
Property & Maintenance &
Equipment IT Operations
PM Commercial Security
Remuneration Partnerships
PM Development Product
Management
. tai Cri PMs’
Financial Crime scat
Communications
PM Support
(incl. BSC)
The BAU Continuous Activities part of the PM Journey comprises of all day-to-day activities of PMs after the conclusion of BSM support provision 6-9 months after they commence
service. This includes a broad range of critical process areas, including supply chain management, IT operations, ongoing training provision, PM development and remuneration, support
activities (including the Branch Support Centre), commercial partnerships, financial crime (including training and investigative support), property and equipment, day-to-day
communications, network maintenance and security provision
The following table sets out the number of findings or improvements identified by risk rating:
Planned or In Progress Not Yet Started
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7.1 BAU (Continuous Activities): Overview
Summary of Improvements To Date
POL has taken steps to improve the BAU experiences of PMs and establish the interests of PMs in POL's day-to-day processes, with 21 completed improvement noted. In particular, the
Branch Hub tool has been launched across the network (see ref BC24), providing 9,500 branches with 24/7 access to knowledge articles and self-service support around key processes. A
review of branch correspondence from POL to PMs has been conducted, to ensure the tone is positive, supportive, and aligns with POL’s purpose (see ref BC29).
Additionally, processes around managing cash discrepancies and potential branch losses have been improved (see ref BC39), with POL ceasing the practice of automatically deducting
such losses from PM's remuneration and strengthening associated dispute processes.
Summary of Further Improvements Identified
This project noted several areas where further improvement is required to reflect the interests of PMs in POL's BAU processes. Overall, the vision of placing PMs at the heart of the
business has not been consistently embedded within central BAU activities, with further cultural change and process enhancement required in order to support PMs in line with POL's
vision.
Specifically, POL does not provide all PMs with high-quality cash management equipment, which leads to process inefficiencies and poor cash management practices, leaving PMs
vulnerable to financial loss. Additionally, key process areas (such as those around ATM machines and lottery products) are complicated and have not been primarily designed with the
interests of the PM in mind, which leads to daily PM operational challenges.
Historically, branches have been assigned a tier to determine the level of proactive support provided to the PM by their AM, with PMs in higher tiers provided with more proactive AM
support. This approach is used as AMs have a wide span of responsibility and cover between 75-125 branches, which limits their capacity to apply the same level of proactive support
and management across all their branches. This approach is not currently based on PMs’ needs and is not transparent to PMs. POL has identified the metrics underpinning the tiering
system and is looking to build PM centric metrics into the system, which will be available to AMSs via the Branch Insight Tool (BiT) and there is further opportunity to improve the approach
further an introduce greater flexibility and transparency.
We identified two urgent priority, four high-priority, thirteen medium-priority and four low-priority improvement opportunities to further enhance PM’s BAU activities. The urgent-priority
findings summarised, below, with full details provided in the following section:
1. Resolution Scheme Exceptions: The historical shortfall resolution scheme does not cover the period between each branch’s migration to HGNA sometime in 2017 or 2018 and the Cl
in 2019 when the policy changed. Should PM detriment have occurred in this period (e.g. arising from contract termination of unpaid suspension), this detriment will not have been
investigated or compensated.
2. PM Debt Uncertainty: No investigation has been conducted to identify and resolve any PM debt issues accrued between the implementation of HGNA and the establishment of new
ways of working in the PM support team. This leads to a risk that PMs who accrued debt in this period do not have certainty over their historic debt balances and do not understand
if, how, or when they will be resolved.
Out of the high priority improvements, we identified one relating to products, which focuses on the product change processes inefficiencies and the lack of a clear design methodology
for new products . The remaining high priority improvements related to a risk that PMs are not adequately sighted on urgent communications, an insufficiency in the renumeration MI
provided to PMs, and problems in the cash discrepancy investigation procedures.
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7.2 BAU (Continuous Activities): Improvements Identified
gent Priority Improvement
Reference rogress
Finding Recommendation Responsible Accountable Suggested
Number
Completion Date
BCL Shortfall Resolution Scheme Exceptions 1. Confirm the scope of the historical shortfall Jacki Adams Tim Perkins ASAP —next 12
4 fehareall reso h efor resol . h f scheme and understand whether there are any weeks (End May
The historical shortfall resolution scheme is responsible for resolving PM claims where the potential plaristo Identifyand rasoWelsriyissuesthat ad
detriment suffered occurred in the time period before the branch's migration to HNG-A, which occurred during the pertadnot coveredlby the
concluded between 2017 and 2018 depending on the migration schedule. The scheme covers this ahene:
period as the CU concluded the HNG-A system to be sound.
2. If agap is noted, quantify the size of the gap and
produce recommendations on the best solution to
resolve (e.g., scheme extension)
However, there is a period of time between the completion of the HNG-A migration project
concluding in 2018 and Post Office implementing new ways of working following the receipt of the
Cid in 2019, which is not covered by this scheme and where any shortfall has not been resolved.
No assessment has been completed to determine the financial volume or the no. of PMs effected.
Therefore, there is a risk that PMs may have suffered financial detriment (for example, arising from
contract termination or unpaid suspension) in this interim time period, with no analysis performed
on the potential size of this risk to-date. Additionally, there is currently no formal avenue for PMs to
resolve this dispute
Bc2 Postmaster Debt Uncertainty 1. Undertake analysis to identify and quantify the Jacki Adams Tim Perkins ASAP—next 12
financial volume such debt and the number of PMs weeks (End May
The role of the Historical Matters Unit (HMU) is to assess PM debt created on HNG-X and to involved. 2021
establish processes to resolve and/or write-off such balances. New processes and ways of working
have been implemented across the Service and Support Team structure to ensure discrepancies are >
Reach a decision on how such debt balances will be
thoroughly investigated and a resolution is identified, n line with the CU.
managed by POL.
However, there is a time period between the implementation of HNG-A and the introduction of the
new ways of working where some PM accounts have accrued a debt, which will display on their
balance sheets.
3. Determine how the decision will be communicated
to relevant PMs and managed appropriately
thereafter.
‘Such debt has not been investigated or resolved, leaving PMs who have accrued a debt in this
period without certainty as to if, how, or when the debt will be investigated and/or resolved.
Additionally, no assessment has been completed to determine the financial volume or the no. of
PMs effected
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7.2 BAU (Continuous Activities): Improvements Identified
High Priority Improvements
taken
Reference Prosrest&
Finding Recommendation Responsible Accountable Suggested
Number :
‘Completion Date
BCs Use of memo view may mean that PMs are not sighted on all urgent 1. Implement a multi-channel strategy for communicating all urgent Simon Oldnall-TracyMarshall_ ASAP —next 12
‘communications messages to PMs, including, but not limited to, text messages, to System update weeks (End May
maximise the probability of these messages being received in a 2021
The processes in place to push urgent communications (e.g. around notification of timely mania: [hiked to Gets overal cominuniestions
scam calls) from POL to branches are ineffective and can result in the PMs being framesvort)
unaware of security or other business critical risks.
Memo view messages are often used to deliver urgent operational communications 2. _ Ensure that there is clarity on messaging requirements and
to branches via Horizon. However, these can be missed if they come through when implement tracking accordingly e.g. read receipts and or formal
a customer is being served and cannot be retrieved at a later point in time, which agreements/acknowledgements.
increases the risk that such messages are missed
3. Implement a ‘message history’ for urgent messages that is
There is a planned Launch of the ‘One Touch’ app (an online reporting system for accessible to PMs (or staff working within branch), so that such
PMs to report crime more easily) in 2021, which will improve operational messages are not erased and can be viewed at the convenience of
‘communications, with further plans in place to incorporate a message history the PM.
function in Memo view.
4. Use knowledge articles in Branch Hub to provide detailed
information about known errors and defects with Horizon.
Bca Insufficient PM Remuneration MI 1. The current development of reporting functionality within the BIT Alex Todd Nick Beal ASAP — next 12
tool should be offered to the PM via Branch Hub once it is designed weeks (End May
PMs are not provided with sufficient information to understand their remuneration effectively. This strand of activity will now be owned by BTU. 2021
from a performance perspective. Whilst remuneration advice slips are provided to
PMs, PMs are not able to assess how their trading compares to other branches, or —>.—_The work that is currently underway by the audit team to assess
compare their trading results (and remuneration) with prior years, Additionally, this data and how it could be used better should ensure that it
whilst remuneration and sales reports are available on Horizon, these are not user considers the PM requirement for timely remuneration data
friendly and PMs are often not aware of these reports or how to use them.
This is currently being worked on in the BIT tool, and the audit team have been Short term —
looking at data for remuneration management information as this can be random following 12
and uncontrolled. Their recommendations should be fed into any action that is weeks (End
August 2021)
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High Priority Improvem
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Reference Progress.
Finding Recommendation Responsible Accountable Suggested
Number
Completion Date
BCS Design methodology or process 1. _ Review design principles to ensure they are fit for Chrysanthy Mark Siviter Short term —
purpose and meet customer, PM and business _Pispinis— following 12
Several existing products were designed in isolation based upon cost-based metrics, third party heeds productdesign MartinKearsley weeks (End
provider constraints and/or without reference to industry best practice, rather than designed peiicioles ‘August 2021)
holistically in line with agreed principles and in such a manner that prioritises the PM experience. This > Ensure new products are developed, designed Ed Dutton
has led to several PM-operated day-to-day processes being complicated and difficult to administer, and implemented in ine with the updated design Henk van Hulle
particularly around the operation of ATM and Lottery products. principles, and (where possible) industry best ~custoniee
Product design principles have now been developed by the Commercial Strategy Team, who have practice, design
sought to put the needs of the PM at the heart of the design. As such, future products should be principles
developed and designed in line with these principles and reference to best practice, which will 3. _ Review the existing product set to understand
improve the end-user experience for PMs.(These revised principles will not resolve issues with and seek to mitigate the main pain points for 2dravko
product design, with existing products (particularly ATMs and Lottery Products) remaining difficult for PMs. This process for review shouldstart with the — Mladenov—
PMs to use). products that have the most impact on PMs postmaster
(using information from PM surveys etc) andthen design
set out a plan to progress to lower priority principles
products.
Product:
4, Develop a Service Improvement Plan with key Managers
business stakeholders to align existing products to
new principles that have been agreed.
NB., recs are assigned to the three relevant product,
portfolio directors, who will apply to their products.
Bc6 Cash discrepancy investigation procedure misalignment. 1. Implement SLAs around how long Post Officehas DougBrown ——RussellHancock Short term —
to identify a discrepancy and how long a PM has following 12
There is no Service Level Agreement (SLA) for investigating cash discrepancies (e.g. a PM having less to query it. These SLAs should be less than 60 weeks (End
cash in their tills than their system declares), which can result in such discrepancies, on occasion, not days, to support alignment with the CCTV ‘August 2021)
being fully investigated before the CCTV data is removed, which happens after 90 days. retention policy.
Once CCTV footage has been automatically deleted discrepancies cannot be addressed, resulting in
financial loss for the PMs and / or POL. a Adjust the CCTV retention period to retain data
for a longer period that aligns to the investigation
This has been identified as part of the PM Support Improvement Plan and identified as a potential period
issue by Legal. A risk exception note has been raised around the CCTV retention period.
3. Investigate a means of sharing CCTV footage with
PMs electronically as part of the discrepancy
investigation process.
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7.2 BAU (Continuous Activities): Improvements Identified
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Reference Finding Recommendation Responsible Accountable cotton
Date
BC7 Lack of transparency and PM-centric metrics in tiering system Continue to adjust the tiering system so that it is more flexible Regional Managers + Andy Kingham Short term —
and based on PM need focused metrics, with indicators that a following 12
Historically, branches have been assigned a tier to determine the level of support PMirequireshhigher support (including transaction correctiots, weeks (End
provided to the PM by their AM, from Tier 1. (high ‘priority’ )to Tier 3 (lower 'priority’), thallenath of time the'PM has been n roleyand support ‘August 2021)
with PMs in higher ties provided with more proactive AM support. This approach is requests from indidaal PAs) determining tie level of support
used as AMs have a wide span of responsibility and cover between 75-125 branches so provided. Further; consider enfiaricing transparency and making
do not have the capacity to apply the same level of proactive support and management the'sjsten clearto PMs,
across all their branches.
The tier system is based on POL-focused metrics (e.g. transaction volume), rather than Ensure that any new tiering approach is communicated
metrics that identify the PM’s needs, such as the number of transaction corrections effectively to AMs and PMs.
required for each branch and / or direct customer feedback. This may result in PMs in
lower tiers not being provided with the support they require.
Additionally, PMs are not aware of the tiering system (despite the fact this system
influences the level of support they receive) which may represent a lack of
transparency.
POL has identified the metrics underpinning the tiering system and is looking to build
PM centric metrics (as outlined above, such as transaction corrections and direct
customer feedback) into the system, which will be available to AMs via the Branch
Insight Tool {BiT).
Bc8 Change processes are seen as complex by business teams Continue working on streamlining the change management Saira Burwood Tim McInnes Short term —
process in order to process smaller system changes in a more following 12
Feedback from teams supporting branches and product development is that there has agile manner. weeks (End
been a historical prioritisation of cost over PM experience, leading to some changes not ‘August 2021)
being designed to prioritise improving the PM experience. The change process has Engage a comms programme to all teams, to support awareness
improved over the last 12-18 months to increase governance and control and there has that the change management process is open, easy-to-use, and
been recent evidence of understanding PM impact as part of the business case process. should be used in all cases where an improvement is required in
order to better support PMs.
However, there is still a perception that the change process is complex and focuses on
cost minimisation, which results in teams requiring funds to implement a change not Ensure that business as usual and PM support teams who are
consistently submitting business cases, as they believe they will not be approved. This impacted by the change are engaged as part of any change
leads to business cases not consistently being submitted, even when a positive, PM process review or lessons learned exercise
focused change is required.
During our work, we were notified of one particular example:
Subsequent to understood changes in legal requirements for Northern Ireland around
parcel checks, a prompt was introduced into Horizon that stated ‘make sure a customs
form is attached to any parcels going to Northern Ireland.’ Given the historic political
situation, this was distressing to several PMs in Ireland, but the prompt was not
removed due to the team’s lack of faith in the change management process, and
instead merely reworded, which is a source of frustration and upset for several PMs.
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boobed Finding Recommendation Responsible ‘Accountable cotton
Date
Bco Lack of PM focus in POL employee support centre objectives 1. Review / introduce / update front line teams objectives and Maxine Cross - Juliet Lang ASAP — next
introduce a capability matrix to confirm that they support a high Reward and 12 weeks
POL employee objectives (which are only in place for managers above) and incentivised iqualtyof service to'eMs leg, based uponipostePMfeedback, Recognftion (End May
remuneration are not based on PM centric metrics for key PM facing teams. or high numbers of issues resolved, rather than fast call 2021
Performance continues to be appraised and monitored through historical, efficiency times). These should be monitored and appraised regularly. Tracey Lloyd-
based metrics, such as call handling times, rather than alternative measures focussed Training
on the PM. This results in limited cultural focus - and individual incentive - to provide 2 Review the remuneration structures for front line advisers Mel Fischer-
excellent service to PMs, which may have a negative impact on the quality of support (bithin PMA support teams and consider whather'thasa are canine
Provided to PMs. competitive, with a view of reducing employee turnover in Support Teams
Call monitoring arrangements have been identified in call centre teams to assess the these roles, This would likely result in pay rises.
quality of calls and ensure messaging around tone is being consistently followed, Doug Brawn —
However, call monitoring arrangements vary between teams according to resource 3. _ Establish consistent call quality monitoring practices (linked to Inventory
levels {in terms of the number of calls monitored and the checklists used) and there are the capability matrix) to confirm that front line staff are Management Team
no plans in place to review remuneration for front line advisers or to change (or, where demonstrating the partnership tone and putting the PM at the Jayne Pardoe—On-
applicable, introduce) employee objectives to align with the new PM-centric approach heart mind-set in their interactions with PMs. This willinclude ding Team
on the floor and off the floor coaching from team managers
{coach the coach training to be launched in April 21) Stephen O'Reilly —
People Partners
4, Launch the new recognition scheme to celebrate successes for
teams members actively improving PM experience.
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boobed Finding Recommendation Responsible ‘Accountable cotton
Date
BC10 Roles and responsibilities for product management. Clearly define roles and responsibilities for product Product Managers Mark Siviter ASAP — next
management and the linkages between the teams, across all 12 weeks
The recent organisational design changes have changed roles and responsibilities relevant Business units and communicate this nforination (ii Martin Kearsley (end May
within the Commercial Team, Product Managers have overall accountability for their Hlaison with the comms team, to Identify the most effective eabution aoat
product, even though activity for delivering or supporting elements of that product may approweh) ‘to the teaine affected
sit in different business units. These new ways of working are not completely
‘embedded yet with there being some confusion remaining as to who is responsible for Communicate teserolee and responsibilities wider In the
what. organisation, especially where there is a dependency on other
We note that this recommendation will be partially addressed as a part of the business units to deliver part of the product journey. This will
organisational design activities under Tranche 2, which intends to place end-to-end include working with teams such as network, data protection,
customer journey responsibility for all products with the product teams (though noting compliance, operations, and training etc. to bring them together
that they will need to work closely with other across the organisation to discharge to ensure everyone is aware of responsibilities to deliver.
these responsibilities).
BC11 Lack of PM focus in POL employee support centre objectives Review / introduce / update front line teams objectives and Maxine Cross - Juliet Lang ASAP — next
. introduce a capability matrix to confirm that they support high Reward and 12 weeks
POL employee objectives (which are only in place for managers above) and incentivised quality of service to PMs (e.g, based upon positive PM feedback Recognition (End May
remuneration are not based on PM centric metrics for key PM facing teams. or high numbers of issues resolved, rather than fast call 2021
Performance continues to be appraised and monitored through historical, efficiency times). These should be monitored and appraised regularly Tracey Lloyd-
based metrics, such as call handling times, rather than alternative measures focussed Training
on the PM. This results in limited cultural focus - and individual incentive - to provide
excellent service to PMs, which may have a neuativeimpacton the quaity of support Reviewne olienibalanamirie front line advisers Mel Fischer-
Sonelere within PM support teams and consider whether these are Service and
competitive, with a view of reducing employee turnover in Support Teams
Call monitoring arrangements have been identified in call centre teams to assess the these roles. This would likely result in pay rises.
quality of calls and ensure messaging around tone is being consistently followed. Doug Brown —
However, call monitoring arrangements vary between teams according to resource Establish consistent call quality monitoring practices (linked to Inventory
levels {in terms of the number of calls monitored and the checklists used) and there are the capabllity matrix) to confirm that front line staff are Management Team
no plans in place to review remuneration for front line advisers or to change (or, where demonstrating the partnershiptone and puttingthe PM atthe = ne pardos—On-
applicable, introduce} employee objectives to align with the new PM-centric approach. heart mind-set in their interactions with PMs. This willinclude ting Team
on the floor and off the floor coaching from team managers
(coach the coach training to be launched in April 21). Stephen O’Reilly—
People Partners
Launch the new recognition scheme to celebrate successes for
teams members actively improving PM experience
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7.2 BAU (Continuous Activities): Improvements Identified
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product from the system and product details are often left on Horizon. This can lead to PMs receiving
out of date information on the product catalogue.
Similarly, Branch Hub knowledge articles and articles used by BSC advisers to resolve PM queries are
not always updated to reflect product changes. Product change projects are cost-constrained and
project team members are encouraged to move off a project as soon as the change has been
implemented, Associated knowledge article updates are viewed as ‘tidying up’ and a cost, as opposed
toa priority, and therefore often do not get actioned, The potential impact of this is that PMs do not
have access to the most up to date product guidance on Branch Hub and / or are given out of date
product guidance by the BSC.
‘Additionally, too much information is provided to PMs which can make finding the answer to product,
related queries difficult. This results in queries being raised in PM WhatsApp groups, rather than via
self-service systems. We noted one example where a PM developed their own guidance document
and shared this with others to address a common query.
Reference Progress
Finding Recommendation Responsible Accountable Suggested
Number
Completion Date
Bc12 Lack of Cultural and Soft skill Training provided to Key Support Teams Develop a clear set of memorable principles and soft- Tracey Lloyd —JulietLang- ASAP—next 12
skill values that PM facing teams must demonstrate weeks (End May
There has been limited or no recent training provided to PM facing teams (such as the support teams in their interactions with PMs, This should be 2021
and the security team) focussing on cultural matters and /or soft skils. As such, PM-facing support repeatedly emphasised via comms, training, Job
teams do not consistently understand the practical implications of the cultural requirement to put PMs descriptions, and erty other evalfable forums
at the heart of their operations and are not always equipped with the soft skills required to
‘communicate with PMs in an effective and supportive way. Design a training package for all PM facingstaff that
sets a consistent tone, emphasising the need to put
the PM first in all interactions. This should be
consistent with the values in (1).
Deliver training programme to all teams and check
the quality of their understanding of the training via
call monitoring checks.
Bc13 Product guidance Bbuild in enough time to update associated Katrina Tracy Short term —
knowledge articles into all product change projects Holmes Marshall following 12
When a product is no longer available or discontinued, there is no set process for the removal of the weeks (End
prior to project close.
Perform a cleanse of all existing Branch Hub and BSC
product knowledge articles to remove outdated ones
and add in the latest product guidance.
Consolidate product knowledge guidance on to
Branch Hub and re-communicate its location to PMs
through the updated PM Support Guide.
‘August 2021)
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7.2 BAU (Continuous Activities): Improvements Identified
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and can lead to stock availability issues.
consuming and inherently prone to error.
branch stock levels and allow auto-generation of orders when stock items are running low.
Currently PMs must monitor their own stock levels, which is an inefficient use of PM time
2. Stock order tracking: PMs cannot track the status of stock orders from dispatch through to
planned / expected delivery date. This gives rise to a lack of certainty for the PM and results
in calls being placed to POL querying when deliveries will be made, as well as potential
wastage due to additional orders being placed. Stock orders are currently placed on a
planned order schedule set by POL; the ordering process is not dynamic or intuitive for PMs. 2. Consider implementing a technical solution that
3. Manual stock entry: There is no automated stock entry system in place, with branches
required to physically book in stock on a line-by-line basis, using the correct stock codes
While cash pouches can be booked in using a barcode on the front of the pouch, stock items, 3, _ Replace the stock entry process with a new
such as stamps, cannot be booked in in this way due to Horizon system limitations. This
results in a slow and manual process, with an increased risk of entry error.
4, CViT driver PDAs: The PDAs used by CVIT drivers to record the movement of stock between
dispatch and branch delivery operate on end-of-life software which is prone to failure. This
can result in deliveries being manually recorded on paper forms for part of the delivery
round, thereby increasing the risk of manual error. Further, PDAs do not update centrally in
real-time and must be downloaded at the end of each day when drivers return to the depot.
Where paper forms have been used, the details must be manually input, which is time
Plans currently being considered are as follows:
For point(s) 2 and 4. The ‘Future of Swindon’ business case is intended to address auto-
replenishment of stock and manual stock entry issues.
allows stock auto-replenishment, at a stock
level determined by the PM. This system should
have the ability to generate orders
automatically, at the discretion of the PM. This
roll-out should be accompanied by clear tra
to each PM on how the system works.
rs
enables PMs to track stock orders in real-time
and place additional orders when required.
process and / or system that allows automated,
barcode-based replenishment, to reduce the
need to enter stock codes manually.
Consider implementing a stock management
system that allows stock movements and
deliveries to be recorded in real-time, thereby
reducing reliance on paper forms and removing
the need to download delivery details centrally
at the end of each day.
For point 3, High-level Horizon improvements are being considered by POL to address system
enhancement and integration concerns, but no formal plans are currently in place.
Johann Appel —
Internal Audit
Assurance
Reference Progress e
Finding Recommendation Responsible Accountable Suggested
Number
Completion Date
Bci4 Lack of Investment in Supply Chain Technology The technology and systems involvedin the supply Gary Walker - Russell Short term —
chain process should be reviewed, with improvements IT systems Hancock following 12
There has bean a lack of investment in Supply Chain technology, resulting in PMs not having access consideredin fine withthe specierecoramendatlons [perspectives weeks (End
to equipment that supports effective management of cash and stock. Examples include: below: August 2021)
‘Andrew Stevens -
1. Stock auto-replenishment: There is no replenishing model to provide POL with sight of 1. Considerimplementing a technical solution that Stock replenishment
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7.2 BAU (Continuous Activities): Improvements Identified
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Reference Finding Recommendation Responsible Accountable {uBBeseG
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Bc15 ‘Absence of Consistency in Loss Reclamation Agree a set of processes TBC by POL Tim Perkins Medium term
‘Where a branch loss is established, POL processes are not in place to reclaim such losses. For example, for recovering established losses, as per POL's = FY2122end
if there is an instance where a PM intentionally misappropriates POL funds and admits to doing so, clear and Vision and risk tolerance (End March
consistent POL processes are not in place to reclaim the balances accordingly. 2022)
This creates a risk that PMs are not treated consistently and / or fairly by POL, with some PMs choosing to
make payments for established losses, whereas others do not
Bc16 Lack of Third-Party Data Integrity Reviews Consider current end-to-end approaches to Matt Warren Rob Wilkins Medium term
managing the integrity of third-party data, = FY2122end
POL relies on client and supplier data in order to complete branch account reconciliation and client including identifying areas where any data errors (End March
settlement activities and ultimately ensure PMs receive the correct remuneration. It is unclear what could lead to PM loss. 2022)
processes are in place to gain assurance regarding the integrity of data that is consumedin order to Define the required process that would need to
complete these activities. It is also unclear who is responsible for completing this activity, what happens be implemented to ensure data assurance
when an issue is identified and who is responsible for resolving. process meets standards
Complete a gap analysis on data
Arecent example has been flagged to the HMBU regarding errors that have been identified in the Camelot processes/consumption flows that don’t meet
data file that could have had a detrimental effect on PMs’. A review has been completed of the case, but it the required standards.
is unclear as to whether this is an isolated case or if the two PMs’ have suffered detriment. Where such high-risk areas and gaps are
identified, establish processes to gain further
assurance around the accuracy of data flows.
Agree a process for flagging data issues and a
process for resolution of them that is in line with
obligations to fix, size detriment and disclose.
8c17 Provision of security equipment based on risk-based costing rather than PM safety requirements and Consider the implementation of an ‘exceptions MarkRaymond Tim Perkins Short term —
comfort process’ that enables PMs in lower risk level following 12
branches to request and receive additional weeks (End
The provision of security equipment to PMs (such as reinforced protective casings around branch counters) security equipment (such as reinforced ‘August 2021)
is currently driven by a risk-based approach to costing, based on branch locations, rather than the safety protective casings'eround branch counters),
requirements and comfort levels of individual PMs and staff working within branches. based on their individual requirements and sense
For example, certain equipment is marked as ‘high risk’ and can only be provided to ‘high risk’ branches, of safety.
with any requests from PMs in lower-risk branches being declined.
Where PMs request additional security
There are clearly cost implications associated from a wider approach but building equipment provision equipment, above and beyond the automatic
around what PMs require in order for them and their staff to feel safe and supported in their role (rather allocation, such requests should be reviewed by
than a cost-based risk classification) would enable a higher level of support to be delivered by the security the security team and, if determined to be
team, conducive to supporting the PM and their
members of staff's wellbeing, provided
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7.2 BAU (Continuous Activities): Improvements Identified
cash levels as far as possible. Whilst the Supply Chain has successfully achieved such cash reduction
objectives, focus on reducing cash has resulted in cultural ways of working around cash supply that do not
prioritise the needs of PMs.
This has led to issues for many PMs, where the Post Office view of what cash they need (and when) differs
from the PM view, which has a negative impact on PMs ability to respond to changing business patterns
Additionally, some PMs are not clear on who to speak with in order to resolve cash supply issues and feel
they are not consistently listened to. Furthermore, the tone and support provided to PMs around cash
supply issues is not consistent and their experience varies depending on who is spoken to.
The Supply Chain lead team has recognised the issue described above and implemented an action planto
address related feedback from PMs. This includes adjusting ways of working, training members of the team
around tone of voice and customer service, implementing call monitoring and coaching mechanisms,
ensuring PMs have ways of providing feedback, tracking issues raised, and the resolution and identification
of new ways that proactive support can be provided to PMs who experience such problems
Progress &
ola Finding Recommendation Responsible Accountable ae
Date
Bci8 Lack of clarity and communication around support function roles and responsibilities 1. As part of the future OE work, the structure Mel Fischer Tim Perkins Short term —
showing the support teams which are following 12
\Whilst PM facing-support teams (with the exception of Cash Management) have been brought together into responsible for each area should be revised and weeks (End
one ‘PM Team’ under the Retail & Franchise Network Director, the roles and responsibilities of, and linkages documented, with a simple approach created ‘August 2021)
between, the teams are not clearly defined and communicated to PMs and staff within the teams. that clearly Kesitfes(each teamn’saréas of
For example, changes to support function names are not clearly communicated to PMs, resulting in responsibility.
confusion. In particular, the Cash Management team was recently renamed as the Inventory Management
team, but due to a poor communication programme PMs were not adequately aware of this change and 2. The support teams should receive consistent
have thus not been willing to engage with outbound calls from this team. training and communications on A) What their
roles and responsibilities are; and B) What roles
and responsibilities other areas of the support
function offer, to allow them to point PMs in the
right direction for further support.
3. The communications strategy for informing PMs
of the support options available to them should
be embedded within Branch Hub, alongside a,
multi-channel communication approach. This
should include updating the PM's Support Guide
to incorporate a section clarifying each team’s
roles and responsibilities.
8c19 Inventory Team Ways of Working 1. Continue with deploying the actions identified in DougBrown Russell Short term —
the improvement plan Hancock following 12
The business has a requirement to control costs and operate within its funding limits. Against a backdrop of weeks (End
high volatility in consumer behaviour around cash, this has led to a business wide focus on reducing network > continue to communicate with PMs the ‘August 2021)
improvements that are being made.
3. Work with the Postmaster Governance Forum
teams to ensure any new issues are identified
and actioned with the appropriate owner.
4. Work with the Postmasters Teams to ensure
colleagues benefit from any new training offered
across the Service and Support Teams in order to
offer a consistently good service to PMs.
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Reference _ . Progress &
Number Finding Recommendation Responsible Accountable Suggested
Completion Date
BC20 Ineffective Methods and Forums for Communicating to PMs Review the communication strategy and approach Mel Fischer Tim Perkins Short term —
for PMs and assess what forums are best suited to following 12
The methods and forums that POL uses to communicate to PMs are not consistently tailored to the meeting PMs needs, including the following weeks (End
requirements of PMs. This can lead to PMs (who may be busy in branch and unable to answer phone calls, ‘August 2021)
for example) not receiving or being able to respond to POL's communications, resulting ina lack of support 4 —_groaden the Branch Hub web chat
provision and delays in resolving issues, functionality to enable more teams to
There is an ambition to move more interactions on to Branch Hub, including potentially broadening the provide real-time responses to PMs at a
web chat element to cover more support functions, beyond IT. time that is conventent to them.
‘Additionally, a review of the support guide is underway and the adjusted version will be re-shared with 2. Resissue the PM Support Guide to all PMs in
PMs. hard copy and digital formats.
Please refer to the communications theme (Ref 3.5) for further context around communications findings.
3. Define a communication policy around
complaints and media, including social
media, and provide AMs with support and a
consistent approach for managing
complaints. Train all AMs on best practice
for managing complaints and use of the
different channels.
B21 Insufficient Security Team resources limiting proactivity 1, Conduct a resourcing assessment to MarkRaymond Tim Perkins Medium term—
determine the level of resources required Fy2122 end
It is unclear whether the proactive security support provides adequate support to PMs. There are 11.5k forthe security team to providea'stronig (end March
branches and only nine members of the security team, which limits the extent to which the team can level of proactive support for PMs, utilising 2022)
provide support, training and guidance to PMs. This observation was further supported by feedback from relevant security-related MI and data such as
the Security Team, who noted that the team predominantly work reactively (responding to issues as and fromiGrapevine, Where necessary, \provide
when they arise) as they do not have sufficient headcountto perform proactive support activities. additional rescurcasto'supportefargerand
Work is currently underway to recruit a Security Awareness Manager to drive security comms and to stronger security team, based on the
ensure that the current Security Manager provision of 8 (UK coverage) is retained lsforementioned assessment,
The Security Ops Manual is currently being revised to make it more user friendly, including a review of
tone and simplification where needed to make it clearer. This review will be concluded at the end of March
prior to launch on to Branch Hub.
BC22 Immature Cash Forecasting Processes 1. Consider use of a more sophisticated cash Gary Walker Russell Short term —
forecasting tool to replace the Excel Hancock following 12
PM Cash forecastingis performed manually in an Excel spreadsheet, which increases the risk of manual spreadsheet that is currently used to weeks (End
error and lowers the level of analysis and management information that can be provided. This may result perform forecasting ‘August 2021)
in inaccurate cash forecasts and cash shortfalls in branches.
Whilst a forecasting tool was originally planned as part of the CWC system implementation, it did not meet
requirements and development was stopped
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[Low riortyimprovements
Reference Progress &
Finding Recommendation Responsible Accountable Suggested
Number
Completion Date
BC23 POL processes are too manual and reliant on paper 1. Mapand review key POL processes and Mel Fischer Tim Perkins Medium term—
a ‘ f d j 4 challenge areas, including identification of Fy2122 end (End
POL's key system processes involving PMs are frequently reliant on paper and are not suitability digitise where there is reliance on paper-based March 2022)
This leads to inefficiency, delays and errors when data is entered manually. activities. Allinstances where paper-based
For example, The PM expenses and remuneration process is very manual and reliant on two separate or manual activities are required (e.g.
forms being printed and posted to the PM, who must fill it in and post back to the team to start the sending forms via post) should be digitised
processing activities, which usually takes 7 days to complete. if any information on the form is incorrect the to increase efficiency.
whole process needs to be restarted which causes unnecessary delays
Progress has been made to automate key processes through the introduction of Branch Hub, which
reduces the manual input required in several process areas, such as requesting or notifying changes to
branch opening hours.
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7.3 BAU (Continuous Activities): Improvements Noted
The following table outlines the improvements made by Management in the past 12-18 months, in line with the strategic aim of putting PMs at the heart of the POL Business.
Description
Introduction of Branch POL launched Branch Hub across the network in order to improve the level of self-service support available to PMs. There are over 9,500 branches registered to date on Branch Hub, with
Hub the tool allowing PMs to self-serve across a number of key support areas, including accessing knowledge articles, The tool is available 24 hours a day, 7 days a week, and enables PMs to
receive basic levels of support at a time convenient for them and their business activities. The tool is under ongoing development, with new features added regularly by the implementation
team
BC25 Additional AM Support The level of support provided by AMs has increased since April 2019, with a total of 94 AMs now supporting PMs across the network. Previously, such support was restricted to the central,
largest branches, but is now available to all branches.
BC26 Branch Support Tools POL has introduced new tools to help PMs manage their businesses effectively and provide a higher quality of management information to POL and PMs around key branch metrics. In
particular, please refer to the points below:
1. The Branch insight Tool has been introduced to give a snapshot of key branch operation indicators, such as cash declarations, calls to branch support, etc. This enables POL to identify
branches where further support may be required and is shared with the applicable AM, who has the ability to focus on supporting PMs in these areas during their visits.
2. POLhasintroduceda ‘Missed Remuneration Potential’ tool within the Branch Insight Tool, which provides high-level guidance to PMs around how they might increase their POL
income, based on the performance of similar peers within their geographic area,
However, further improvement is required in the area of management information. Please refer to finding BC4 for full details.
BC27 Security Team Focus The security team’s role has been adjusted to focus on providing proactive, preventative service and support to PMs, moving away from their previous, reactive approach. In particular, the
Change team have implemented Horizon scanning (to identify and provide communication around new crimes and ways that PMs may manage them) and works more closely with PMs to provide
education and support. Additionally, security visits no longer take place unannounced and the PMs are consulted with to determine the best time for a security visit
8C28 Introduction of One The security team are trialling an application called One Touch (owned by Grapevine) which enables PMs to report incidents (particularly those which are time sensitive) in a timely and
Touch Application simple manner. This will support busy PMs in avoiding having to leave the counter to make incident calls and allowing them to make reports in a manner that suits their working practices
This technology is currently being tested in 35 branches and, if successful, will be rolled out in 2021 / 2022.
BC29 Supply Chain Support and Branch correspondence from POL to PMs has been reviewed to ensure that it is fit for purpose, aligns with POL's purpose, and properly supports PMs and branch colleagues
Correspondence Review —_This review has included an assessment of the tone, with changes made where necessary. Additionally, the time limit for branches to respond to letters (where required) has been
increased to 2 weeks from the previous 5 working day limit,
BC30 Stock Management Stock knowledge articles were written in December 2020 and are available on Branch Hub to provide PMs with key information around the ordering process and stock returns. These have
Knowledge Articles been communicated to PMs to support increased awareness in this area.
BC31 Remuneration increases POL has increased the remuneration offered to PMs across several key product areas as of April 2020. This has resulted in a £37m increase in POL’'s gross spend on remuneration between
FY2018~ FY2019 and FY20 ~ FY2021. This represents an average of a 10% increase in PM remuneration.
BC32 Streamlining of stock The stock ordering process has been simplified following the ordering process being placed onto Branch Hub. The Horizon process for ordering stock was lengthy and cumbersome, with the
ordering process Branch Hub process seen as more efficient.
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Reference
Hriahl Improvement Name Description
B33 Property Team Help Help guides and videos have been introduced on Branch Hub by the property team, in order to provide the PMs with stronger support around how to manage POL equipment appropriately
Guides {e.g. weighing scales, tills) and reduce the risk of equipment failure
B34 Increased PM The Branch Operations team has adjusted the change management process in order to engage PMs at earlier stages of key change projects. In particular, a branch user forum has been
Involvement in Change _ established, which is a monthly meeting for PMs to provide input into key change programmes. Additionally, POL PMs are invited via this forum to attend regular project workstreams and
Process provide feedback from an end-user perspective.
B35 Transaction Correction _ Plans have been drawn up by the support team to analyse transaction correction disputes, in order to establish the root cause of groups of disputes and provide further support to PMs (or
MI Analysis adjust POL processes) where pain points are noted
BC36 Security Manual There is a planned roll out of a refreshed Security Manual’ from the security team. This will provide easy-to-use guidance to PMs around key security operations and the support available
from the security team. This will be rolled out in March or April 2020 and subsequently added to Branch Hub.
BC37 PM Policies POL has drafted a suite of PM policies, which were deemed necessary to facilitate GLO compliant support to PMs. This includes the following policy areas: Network Monitoring and Audit
Support, Network Cash, Stock Management, Transaction Corrections, PM Account Support, PM Accounting Dispute Resolution, PM Contractual Performance, PM Suspension, PM
Termination, PM Appeals, PM Accountability and PM Complaint Handling.
Following approval of the policies above, POL will establish programmes to ensure that A) All relevant teams are trained on the new policies by February / March 2021; B) The policies are
reviewed annually (and approved at the RCC) from March 2021; and C) An overarching PM support documentis in place, linking all relevant policies and processes in one place, by the end
of March 2021.
BC38 Hothousing Programme Since the issuance of the Cll, POL initiated the Hothousing programme which consisted of an in-depth dive for AMs on how to best optimise, attract more footfall and increase
(Phase 1) remuneration for branches within their remit. Whilst the programme is currently on hold due to COVID-19, the outputs of this programme included additional functionality to the Branch
Insight Tool as well as the AM Playbook
BC39 Supply Chain Cash The discrepancy process for cash discrepancies is currently under review, with an intention to create a new process that ensures PMs are treated fairly.
Centre Discrepancies
Bc40 Security Communication POL are recruiting a security communication manager to drive communications at a campaign level and improve relations between the security team and PMs.
Manager
BcaL BSMtoAMhandover —_Previously there was no handover between the BSM and AM at the six month point. However, plans are in place to improve this and implement a handover, as BSMs are brought into
regional teams.
Bca2 BSC to Supply Chain POL plan to complete the rolll out of branch support training to all SC colleagues that interact with PMs and branches (with the exception of CVIT crews). Training includes tone of voice, how
Training to deal with difficult conversations and the wellbeing of call centre colleagues. The training session for team leaders took place on 1st October 2020 and the plan to cascade is still TBC.
Bca3 BIT Tool The BIT tool will be added to Branch Hub to enable PMs to access all types of data from conformance to remuneration potential. This data can currently only be viewed and shared by the
‘AM with the PM via pdf, with PMs unable to access the data independently. Work to implement this change was begun and then placed on hold in November 2020. It is planned to restart
from March 2021.
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Reference
Nurbar Improvement Name Description
Bca4 Supply Chain PM PM Champions working within each of the Supply Chain customer facing teams (including CVIT Depots) have been created. The role will work with central functions, communications and
Champions local teams to drive engagement and ownership of PM relationships within operational teams. The PM Champion pilot is now implemented, to trial this approach.
BCaS Hothousing Programme The Hothousing programme is currently paused due to COVID-19, however there are plans to restart the programme in the next financial year. The aim will be to take all of the current
(Phase 2) branches through the programme to optimise their retail performance.
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8.1 BAU (Issue Resolution): Overview
High-level Overview
Contract
Management
Issues
Branch
Performance
Issues
IT Operations
Branch
Reconciliation
Management
PM
Remuneration
Disputes
Supply Chain
Management
BAU Issue
Resolution
BSC Complaint
Management
Financial Crime
Ongoing
Training
Provision
BSC Dispute
Resolution
Similar to the BAU Continuous Activities part of the PM journey, BAU Issue Resolution covers all day-to-day activities after the conclusion of BSM support provision (6-9 months after they
commence service), but is focussed on interactions where an issue has been raised, by either POL or PMs and requires an action to resolve. It covers a broad range of critical process areas
including, Supply Chain Management (relating to disputes or general issues), Branch Reconciliation Management (including accounting disputes, transactional corrections and all other issue
resolution), IT operations (relating to system integration), ongoing training provision where issues have been identified, PM remuneration disputes, Branch Support Centre dispute
resolution and complaint management, financial crime (including training and investigative support), Contract Management issues and Branch Performance Issues
The following table sets out the number of findings or improvements identified by risk rating:
Planned or In Progress Not Yet Started
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Summary of Improvements To Date
Over the past 18 months, POL has taken steps to improve the experience of Postmasters (PMs) trying to resolve issues related to their day-to-day activities. We noted 15 improvements in
total during this Project which are complete, planned or in progress. These improvements include:
* Call monitoring - Call recording and monitoring was introduced within the PM Account Support Team in December 2020. The PM Account Support Manager now has access to recorded
calls and monitors these on an ad hoc basis. Currently any development opportunities are picked up informally in a one to one meeting
+ Rebranded Loss Prevention Function - POL established a new Loss Prevention function in July 2019 under new leadership, which has since transitioned to 'Network Monitoring and Audit
Support’ to better reflect the activities of the team and reflect the move towards support opposed to a purely investigative function. The function has been focused on reducing losses to
PMs and POL by increasing the level of monitoring across the branch network, increasing the level of support provided to branches and through more frequent, earlier intervention for
branches having operational issues.
* New approach to branch losses - PO has carried out a review of its policy, processes and documentation relating to potential branch losses. The focus has been on supporting the PM and
how they can get help with understanding any balances on their account.
* Management of ATMs within the network — The current contract with Bank of Ireland for ATMs will end in March 2022 - work is underway for the transition to POL control of the ATM
network, with Vocalink contracted to manage dispute processes.
+ Microsoft Dynamics — Use of the Microsoft Dynamics case management system has been extended across all Business Support teams. This tool allows cases to be passed between
different members of the wider function and reduces the reliance on phone calls and emails for managing cases. This allows POL to maintain clearer case management information.
Summary of Further Improvements Identified
We identified three urgent-priority, three high-priority, two medium-priority and three low-priority improvement opportunities within the BAU Issue resolution work stream, to further
enhance the PM experience. The urgent-priority findings are summarised below, with full details and recommended actions provided in the following section.
+ Maintained Error Limits — Where there is a difference in a POL settlement account for a branch affecting process (for example ATM or Lottery) of specific amounts rather than issue a
transaction correction which would move the difference to a PMs’ branch account, the amount is instead ‘written off’ to a POL P&L account. These differences could result in a write off
being a cost or a benefit to the PM.
* Settle Centrally - Currently PM’s can only ‘Settle Centrally’ for amounts of £150 and above, any amount less than this currently need to be ‘made good’ by PI’s, using either cash or
cheque. BRT no longer use maintained error limits. However, there is a min/max cap set in Horizon that needs to change to let low value credit TCs flow to PMs’.
+ ATM transaction disputes — There is a lack of effective procedures in place to manage ATM transaction disputes, raised by customers through Bank of Ireland (Bol), who are the Link
member currently managing the POL ATM network. The issue has existed since Bol took over management of the ATM network in 2005 and possibly prior to this under the previous
provider, Alliance & Leicester - the level of detriment to PMs over this period is, as yet, unknown.
The high priority improvements we identified related to the accounting dispute process, the complaints handling processes, and an absence of SLAs for issue resolution processes.
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‘gent Priority Improvement
Reference Progress &
Finding Recommendation Responsible Accountable Suggested
Number
Completion Date
Bia Maintained Error Limits Remedial actions have already been identified and these Jacki Adams Tim Perkins ASAP next 12
actions should be completed in order to resolve the weeks (End May
Where there is a difference in a POL settlement account for a process affecting branches (for issue, specifically 2021
example ATM or Lottery) for a specific amount which varies by product, rather than issue a ‘
transaction correction which would move the difference toa PMs branch accout, the amount 's 4. Identfyand resolve issue in Horizon thats stil
instead ‘written off’ to a POL P&L account. These differences could result in a write-off being either impacting the resolution ofthe issue.
a cost or a benefit to the PM.
BRT no longer use maintained error limits. However, there is a min/max cap set in Horizon that 2. _ Identify the detrimental impact to PMs from the
needs to be updated to allow low value credit TCs to flow to PMs. This is in progress with the Issue.
Horizon IT team. KPMG are reviewing the detriment that this procedure could have caused in the
past. 3. _ Resolve detrimental impact (decision on whether
Net or Gross amount will be used),
4. Confirm approach for disclosure of the issue to
PMs' and initiate the process of refunding
Bi2 Settle Centrally 1. Remove the set £150 limit to allow PMs to settle Jacki Adams Tim Perkins ASAP next 12
centrally for any value of transaction correction. weeks (End May
Currently the PMs can only ‘Settle Centrally’ for amounts of > £150 and any amount less than this Bas
currently needs to be ‘made good’ by either cash or cheque by the PM each month. Also, thereis >
no dispute functionality within Horizon in order to allow PMs to easily dispute any amounts that
have been ‘settled centrally’
Determine whether a minimum level should be
set, whereby small transaction issues are not
investigated due to the time and cost involved
POL are working on the fix to reduce the Settle Centrally amount to £0. This is in plan to go live 10th {retaining the option to review where a recurring
March 2021. Following this the terminology ‘settle centrally’ will be reviewed and replaced as a pattern emerges).
subsequent change.
3. Document reason for continued way of working
KPMG (who are working with POL on the actions following Hil) have identified the need for a pre-10th March.
‘dispute’ functionality within Horizon to challenge shortfalls. Part of the KPMG action plan is to
extract keystroke information from Horizon. 4. — Incorporate the dispute related findings from
KPMG report into the dispute resolution
procedures, to help ensure that PMs are aware of
new functionality to dispute shortfalls.
5. _ Review the end-to-end transaction correction (TC)
processes to be clear and comfortable that they
work and that there are no additional issues in the
process, that have not already been identified
6. _ Internal Audit should review the TC processes to
review and assess the controls in place.
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‘gent Priority Improvement
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There is a lack of effective procedures in place to manage ATM transaction disputes, raised by
customers through Bank of Ireland (Bol), who are the Link member currently managing the POL
ATM network.
There is a risk that PMs’ may have suffered financial detriment as a result of the way ATM
Transaction Corrections have been issued to branches in the past. Previously, a customer would
make a claim to their card issuer for any cash that they claimed was not received at an ATM. The
card issuer would then raise the query with BO! who would have 15 days to investigate. BO!
typically sat on this for 14 days and then asked POL to investigate. If POL could not provide evidence
of a balance, a surplus or whether fraud had been reporting, BO! would automatically deduct the
amount from the settlement with POL. These discrepancies would then be passed on to the PMs’ as
a Transaction Correction, who may be asked to cover a reported shortfall that they are not
responsible for.
The issue has existed since Bol took over management of the ATM network in 2005 and possibly
prior to this under the previous provider, Alliance & Leicester - the level of detriment to PMs over
this period is, as yet, unknown.
The contract with Bol for ATMs will end in March 2022 - work is underway for the transition to POL
control of he ATM network, with Vocalink contracted to manage dispute processes.
POL now request that Bol make contact within 7 days of a claim being made, in order to provide
relevant information (Bo! have 15 days to respond on a claim, previously they may have waited until
the 14th day to request information, if it had not been received automatically through ATM balance
data for the relevant machine). POL are also investigating whether there are any fixes that can be
used to help prevent fraudulent transactions.
The process of raising TCs by the BRT team was paused in December 2019 on the receipt of the Cll
However, the process started again in June 2020. It is unclear at this stage why the process was
restarted, It was stopped again later in 2020/21. The HMBU team will be covering the time period
between HNG-X and HNG-A to provide opportunity to resolve from PMs’. However, PMs’ may have
suffered detriment during the time periods when TCs were still being issued.
can be initiated with Bol to strengthen the
temporary solutions that can be put in place in the
interim of on-boarding the new supplier
Review what interim improvements can be made
to help and encourage PMs’ to complete the
necessary ATM balances on a weekly basis.
Document procedures for managing and
investigating ATM transaction disputes and identify
the actions to be taken for each instance type both
for current and future state.
Identify the detrimental impact to PMs’ from the
issue historically, where possible
Resolve detrimental impact
Confirm approach for disclosure of the issue to
PMs’
Ensure the new process for managing ATMS is fit
for purpose and prevents these issues happening
in the future.
Continue with delivery of ATM change programme,
to be implemented following end of the current
contract with Bol in March 2022
Reference Progress &
ne Finding Recommendation Responsible Accountable Suggested
Completion Date
BI3 ‘ATM transaction disputes 1. Identify any further proceduralimprovements that Wendy Martin ASAP next 12
Luczywo Kearsley
weeks (End May
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8.2 BAU (Issue Resolution): Improvements Identified
High Priority Improveme:
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Reference ticle
Finding Recommendation Responsible ‘Accountable Suggested
Number ‘
‘Completion Date
84 Accounting disputes process Agree and finalise the Accounting Disputes resolution Accounting Dispute- Tim Perkins ASAP ~next 12
procedures and overarching framework Jo Milton / Neil weeks (End May
‘Accounting Disputes processes have not been clearly documented and effectively pavey 2021
communicated to relevant POL staff and guidance produced and shared with PMs Develop guidance inforrietion for PNA on the procedures from
so that it is clear that they understand the options available to them and what the their perspective. Overarching Policy
procedures and timescales are for reply/resolution Document -Jo
There is a Disputes team in place within Branch Reconciliation team, but a Communicate Policy and procedures to relevant POL staff
documented process is not yet in place. An overarching policy guide has been (particularly those interacting directly with PMs) and provide
prepared and is going to ARC in March for approval. training, as required
Communicate guidance to all PMs so they are fully aware of the
processes available to them.
Bis ‘Complaints handling processes Agree and finalise the Complaints Handling policy and. Complaints - Mel Tim Perkins ASAP—next 12
. procedures. Fischer weeks (End May
Complaints processes have not been clearly documented and effectively 2021
communicated to relevant POL staff and guidance produced and shared with PMs Develop Guidance information for PMs on the procedures from
so that itis clear that they understand the options available to them and what the their perspective
procedures and timescales for reply/resolution are.
The PM Complaints Handling Policy is going to ARC in March for approval. Communicate Policy and procedures to relevant POL staff
{particularly those interacting directly with PMs) and provide
‘An overarching policy guide has been prepared andis going to ARC in March for training, as required
approval.
‘Communicate guidance to all PMs so they are fully aware of the
processes available to them.
86 ‘Absence of SLAs for issue resolution processes SLAs should be developed for Issue Resolution related activities, Mel Fischer- Tim Perkins ASAP—next 12
ki 5 ‘ f r relevant data should be identified to ensure that effective Complaints weeks (End May
SLAs have not been set for issue resolution processes across POL and there is no monitoring can take place. 2021
effective monitoringin place for either efficiency or quality of POLs response to Neil Davey —
issues raised Accounting
Disputes
This issue has already been identified and initial plans to remediate are underway.
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‘AMs' understanding of branch performance management (as defined by POL around branch
optimisation, revenue growth, non-adherence and branch related issues) is not clear as
different AMs interviewed had differing views of this. Most AMs articulated the bulk of the
role is resolving and helping PMs with any questions while relaying management information
In this sense, they act more as a middle man than a traditional AM operating in the retail
sector. All except one AM knew branch performance management includes helping the PM to
grow their business. A few were unaware that POL conducted branch performance
management.
‘AMs have a wide remit to deal with issue resolution which is based on AM experience and as
such, can vary significantly amongst individuals. This is compounded by the number of
branches that a AM has within their remit, which can range from 75-125 branches. As a
result, AMs do not have the capacity to apply the same level of proactive support and
management across all their branches.
Reference tele
Finding Recommendation Responsible ‘Accountable Suggested
Number 7
‘Completion Date
817 Limited AM visibility over PM contractual obligations Assess what contractual information should be made David Southall Andy ASAP —next 12
available to AMs to allow them to understand and identify Kingham weeks (End May
‘AMs have varied knowledge of the contractual obligations of the PMs within their remit. In what might constitute a breach of contract 2021
order for an AM to have knowledge of contractual obligations, they have to request the
information from the contracts team and there is no other way to access this information Make the schedule of key contractual obligations from PM
contracts available within BIT and within the Playbook so
AMs can execute their duties, and regularly monitor
against PM obligations (linked to finding 8).
Big Lack of consistency in AM's approach to branch performance management and issue Create a clear framework with a set of SOP’s for the AMs Regional ‘Andy 1. ASAP next 12
resolution to help consistently deliver branch performance in, Managers Kingham weeks (End May
relation to branch optimisation, revenue growth, non-
adherence or branch related issues. These SOP’s could be
referenced within the AM support guide
Communicate the framework clearly to the Regional
Managers who would then be tasked with reviewing how
best to roll out the framework across the AM network.
This will entail communicating and training three core
components out to the AMs:
= Toclearly articulate the roles and responsibility of an
‘AM and specifically what branch performance
management refers to and their responsibility in this
process;
- Toclearly articulate the incentivisation to grow PMs
branches irrespective of tiers; and
- Toclearly articulate to the AMs how to do this
through SOP's, guidance materials and usage of
tools/resources (e.g. Hothouse programme)
POL should be aligned on the definition of branch support
and notify PMs.
Review the capabilities of an AM within the network in
accordance with the redefined roles and responsibilities
together with conducting an assessment of the AM
capacity to execute the redefined roles and
responsibilities.
2021
2. Medium term —
FY2122 end (End
March 2022)
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Reference Foes
Finding Recommendation Responsible Accountable Suggested
Number _
Completion Date
BI90 Inconsistent terminology 1. Review use of terminology across Business Support Mel Fischer Tim Perkins Short term —
Teams. following 12
Terminology can be confusing—i.e. Tiers’ is used within a number of different areas across POL and wees (End
means different things to different people - it can relate to BSC call teams, Post Office branch size ‘August 2021)
and Contract team actions.
Bi10 Resource constraints 1. Assess service delivery timescales to PMs to assess MelFischer__—_Tim Perkins Medium term —
I whether additional service support resources are FY2122 end (End
Reductions in the BSC team previously have led to delays in call answering and the ability to required to provide an efficient and timely service to March 2022)
effectively resolve issues raised by PMs in a timely manner. Resource constraints have limited the PMs.
ability for the BSC to make improvements, such as wider call answering hours and better quality
assurance of call handling. We note that one action has been taken to date with the team size
increased again recently, but further work is needed in order to provide a fully effective service to
PMs
The OE work that is planned for Tranche 2 will help resolve and make sure the teams are structured
better, with flexibility built into roles, to provide a better service to PMs’
Bit Lack of formal feedback channels for PMs 1, Formal feedback avenues from PMs should be Neil Davey Tim Perkins Short term —
integrated into the service provided by the team e.g. following 12
There are no formal document feedback procedures in place to assess whether dispute or issue followinga dispute, to determine whether help and. MelFischer weeks (End
resolution activity has been effective and the issues/disputes have been resolved satisfactorily, support has been effective. Branch Hub could be ‘August 2021)
from the PM perspective. used for this
‘As part of Neil Davey's Accounting Dispute review, a survey will be sent to PMs' to understand a
baseline satisfaction level with Accounting Dispute investigations. 2. Ensure there is an appropriate forum identified for
PM-facing teams, such as the Disputes Team to feed
Complaints will no longer be closed until a PM indicates satisfaction with the resolution. this back to the business.
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The following table outlines the improvements made by Management in the past 12-18 months, in line with the strategic aim of putting PMs at the heart of the POL Business.
Reference
Number
Improvement Name Description
Biz Support Guide The PM Support Guide now outlines the support that PO can provide to PMs, The goal for the guide is sharing what the support looks like, so every PM can access support when they need
it and to ensure PMs are aware of the most up-to-date support available to them. The Guide confirms the sources of support, including face to face, telephone and digital.
Bi13 BSC Restructure We were informed that focus has been placed on support for PMs under the new PO strategy which changed with the PO vision of putting the PM first. This includes from a Tier 2
perspective, doing more for branches to avoid discrepancy issues being unresolved. There was a restructure of the BSC in November 2020.
There has been a piece of work on culture and tone, with focus on call handling and customer service skills. Call listening and scoring mechanisms have been introduced, with quality and
coaching in place. It is also believed that there is now an opportunity for improvement in this area where previously resource constraints and cost cutting initiatives have hampered change.
Bi14 Case Management The processes have changed and have been implemented for managing cases and this is detailed in new policies for suspension, termination and contractual performance. As a result of
Processes these changes, POL has significantly reduced the number of branches it suspends (from 71 to 3 in 19-20to 20-21)
Bis, Microsoft Dynamics Use of the Microsoft Dynamics case management system has been extended across all Business Support teams. This tool allows cases to be passed between different members of the
wider function and reduces the reliance on phone calls and emails for managing cases. This allows POL to maintain clearer case management information.
Bi16 New Approachto Branch PO has carried out a review of its policy, processes and documentation relating to potential branch losses. The focus has been on supporting the PM and how they can get help with
Losses understanding any balances on their account.
POL has:
* Ceased the practice of automatically deducting payments from fees.
+ Set up dispute options for PMs and focused on flagging the opportunity to dispute discrepancies and transaction corrections at the earliest possible opportunity. See Transaction
Corrections on tab ‘Branch Standards’.
* Updated processes to reflect a new way of working that supports the PM.
+ Reviewed letters sent to PMs (to ensure message of support).
* Created a call script to support the PM Account Support Team when speaking to PMs about their discrepancies, with focus on ensuring that the PM fully understands the reason for the
discrepancy and can be encouraged to have the discrepancy investigated.
+ From December 2020, the PM Account Support Team began proactive engagement, contacting PMs by telephone, prior to sending a discrepancy notification letter out to provide a
further opportunity for the PM to understand how POL can support with their discrepancies.
NOTE: previously the focus was on recovering losses from the PM, with remuneration deductions if necessary. The above has changed this focus.
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Reference
Number
B17
Improvement Name
Network monitoring and
audit support
Description
Audit - There has been a lot of focus on improvements in this area, with the goal of creating a more supportive experience for the PM and changing the perception of the audit function
{historically perceived negatively in the eyes of PMs). 'Audit’ terminology has been amended e.g. renamed auditors as ‘audit and support advisors’.
Attendance - POL now ensures that a minimum of two Audit Advisors attend any audit. This is to ensure that there is consistency and accuracy in the audits. Each audit has a lead Auditor
who is supported by at least one support Auditor. The number of auditors attending each branch will depend on the size of the branch, with more auditors attending larger branches in
order to complete the audit as quickly as possible and allow the branch to re-open.
‘SPEAR - New support visit known as a SPEAR visit, which is completed by the Audit Advisor team (SPEAR stands for Support, Prevent, Educate, Assure and Respond). These are visits aimed
to support PMs with issues identified by the Branch Analysis team (who monitor the network) where an audit may have been used in the past. For example, a branch with higher levels of
cash or stock than expected for their trade who isn’t returning cash or stock would have a SPEAR visit rather than an audit. These visits can be completed whilst a branch continues to trade
and are attended by a single Audit Advisor
As arresult of COVID, more activity over the phone rather than through visits to branches which has resulted in more frequent, earlier intervention and support for branches, which has
reduced loss levels for PMs.
Audit Rationale Document - introduced to be shared with a PM at the outset of an audit. The purpose of the document is to ensure PMs understand the reason for an audit being
completed.
Telephone Quality Assurance - introduced a follow up telephone call to a random sample of PMs after an audit to quality assure the PM's experience of the audit and for any feedback or
questions that a PM has after an audit to be followed up on by the Area Audit Managers. - 87% were satisfied (118 calls) or very satisfied with the summary of the audit they
Bi18
Call Monitoring
Call recording and monitoring was introduced in the PM Account Support Team in December 2020. The PM Account Support Manager now has access to recorded calls and monitors these
onan ad hoc basis. Currently any development opportunities are picked up informally in a one to one and there is no formalised documentation to show this has taken place. However, a
programme has been put in place in conjunction with the Branch Support Quality and Training Manager, so that action plans can be developed for individual advisors in the PM Account
Support team.
Bi19
Grapevine scripts
Grapevine scripts have been reviewed and improved to incorporate a more supportive tone e.g. offering trauma support for PMs (where previously feedback from PMs was that the focus
was on loss opposed to support). Calls to Grapevine and outbound calls by the Security Team are now sampled by the Security Team (10 per month) and Grapevine themselves (30 per
month) to ensure that calls are being handled correctly. Cross-communication is shared between both teams in this regard. The idea is that the calls should now be about listening to the
PM and empathetic conversations. Feedback is then provided to the team if issues are found. However, no feedback is sought directly from the PM on the latter,
8120
Stopping the closure of
branches for loss
investigations
Branches were previously automatically closed for loss investigations for any losses over £1k, which would cause the PMs distress as trading was stopped. We were informed that a
Judgment call is now made on a specific incident basis whether there is a need to close the branch. PMs views are now listened to as part of this process
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9.1 Off-Boarding: Overview
High-level Overview
The Off-Boarding process is the final part of the PM Journey and as such the PM’s experience at this stage is crucial in maintaining the POL-PM relationship and protecting POL’s reputation
Placing PM interests at the heart of this process is key to POL meeting their wider objective of cultural change.
Off-boarding can be split into 3 separate areas;
* Termination due to contractual breach - If a PM is in serious breach of their contract, then that PM will be subsequently suspended. Once suspended an investigation will be carried out by
the contracts team to confirm that POL has justified grounds to terminate the PM’s contract.
* Death in service — If POL is notified of a PM’s death in service, the first port of call is to check in on the next of kin, this is carried out by the Area Manager (AM). The contracts team will
subsequently reach out to discuss the contractual options available to the branch.
* Off-boarding of own accord (retirement, commercial transfer or resignation) - If a PM wishes to resign, they will contact the on-boarding team who will subsequently send a notice to leave
pack to be completed by the PM. This pack is processed by the on-boarding team who will subsequently notify the AMs and Network Provision Leads (NPLs’) so that the process for
finding a new PM can begin. A closure audit will subsequently be scheduled for the end of the PM’s notice period and any discrepancies found will be settled or investigated further if
required.
The following table sets out the number of findings or improvements identified by risk rating
Planned or In Progress Not Yet Started
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9.1 Off-Boarding: Overview
Summary of Improvements To Date
POL is taking steps to improve the Off-boarding experiences of PMs. Improvements completed relates to the issuing and processing of the notice to leave pack which now completely resides
with the on-boarding team (OF7). the improvements that are currently in progress includes; a new termination appeals policy (OF8), a new exit interview process for outgoing
PM's (OF9) and a review of the role within the off-boarding process (OF10).
Summary of Further Improvements Identified
For Off-boarding we identified one urgent-priority, one high-priority and four medium-priority improvement opportunities to further enhance the PM experience. A summary of our findings
can be found below, with the detailed findings documented in Section 8.2.
Urgent Priority
+ Limitations in the Appeals policy for contract terminations or suspensions —The appeals and dispute process regarding contract terminations or suspensions identified two Key issues;
1. The policy has not been clearly communicated to PMs to ensure they understand the options available to them and that the procedures and timescales are clear.
2. There is a contractual appeals policy in place for legacy contracts, which is clearly documented. However, for Locals and Mains contracts, the right of appeal was taken out. Work is
underway to address this gap.
High Priority
* Perception of Bias in Investigation Process - There is no clear objective party involved in the suspension, Investigation and termination process. While POL does appoint an independent
party from within POL in the eyes of the PM this is still seen as POL against them. (OF2)
Medium Priority
* Absence of early warning indicators to flag issues - No early warning alerts are configured in the Branch Insight Tool (BIT) to proactively alert AMs when a potential breach in contractual
obligations occurs, such as acceptance of dangerous goods. (OF3)
+ Exit interviews are not systematically conducted- There is no mechanism in place to collect PM feedback regarding the off-boarding process (exit interviews are not conducted), resulting
in limited formal evidence why PMs are resigning that can be shared across the business. (OF4)
* Lack of a formal off boarding training programme for Area Managers - As are provided little and inconsistent training regarding the off-boarding process, as such the AMs interviewed
gave an inconsistent view of what their role in the process is. (OF5)
* No procedure to thank a PM for their service - There is currently no procedure or requirement in place to thank a resigning PM for their service, this is down to the AMs discretion. (OF6)
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9.2 Off-Boarding: Improvements Identified
‘gent Priority Improvement
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The appeals and dispute process regarding contract terminations or suspension has not
been clearly communicated to PMs to ensure they understand the options available
to them and that the procedures and timescales are clear. There is a contractual
appeals policy in place for legacy contracts, which is clearly documented. However, for
Locals and Mains contracts, the right of appeal was taken out. Work is underway to
address this gap.
A consistent appeals process is needed across all contracts. In the previous policy, PMs
were able to bring representatives with them to the appeal meeting which was held
with POL management, but POL should consider whether a panel approach, with non-
POL membership (independent) might work better and be seen as a fairer process by
PMs.
‘Anew appeals policy is currently being finalised which will allow PMs on all types of
contracts to appeal a termination.
Reference nn Progress & Suggested
fae Finding Recommendation Responsible Accountable CP etion Date
ort ‘Appeals and disputes for contract terminations or suspensions Create a clear and concise framework for David Southall (for ‘Andy Kingham ASAP —next 12 weeks
the appeals process which outlines PMs rights recommendation 1) (End May 2021
and the processes which should be followed in
raising a dispute. In addition to this it
is recommended that this is communicated
to the relevant stakeholders with clearly defined
roles and responsibilities. The
approach should consider the following items
which will be in line with the new Standard
Operating Procedure:
+ Define what contracts should be within
scope for the appeals/ dispute process l.e.,
all contracts.
+ Define at what point a PM can appeal or
dispute Le., at the point of suspension or at
final decision
+ POLto consider whether non-POL
membership should be involved
* Define the avenues available to the PM to
appeal or dispute.
* Identify and agree POL stakeholders to own
and be accountable for the new
appeals policy.
* Finalise appeals policy in line with new SOPs
and points above (Currently in progress)
+ Communicate finalised appeals policy and
process out to the relevant stakeholders
* Define and build training plan through
collaboration with the contracts team and
learning and development department.
Communicate policy and process to PMs.
Rina Patel ( for
recommendation 2)
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9.2 Off-Boarding: Improvements Identified
High Priority Improvemer
Progress &
Reference , Suggested
Nlarnber Finding Recommendation Responsible Accountable pars
Date
oF2 Perception of bias in Investigation process 1. As part of the appeals and investigation process, David Southall Andy Kingham ASAP —next 12
POL should mandate that PMs together with POL weeks (End May
There is no clear objective party involved in the eyes of the PM during the Suspension, ‘appoint avy oblectiverepresentathve on thelr pert ey
Investigations and Termination process, or where there has been appeal lodged regarding these It isadvised that POLshares their initial
items. This could be seen as evidence of POL bias ora failure to be impartial ifthe PM has no conclsion, decison arid Hetions to be' taken
representation from their side involved in the process. fegainst the PM with all supporting investigation
materials handed over to the representative for a
final decision
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9.2 Off-Boarding: Improvements Identified
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meet and thanka PM for their service but due to lack of communication they often aren't
aware that a PM is resigning until itis too late to schedule a visit. An example given was a
resigning PM whose family had owned the same Post office since the 1940's did not receive a
thanks for your service in any shape or form.
Progress &
Reference Finding Recommendation Responsible Accountable cancion
Date
OF3. Absence of early warning alerts to flagissues Investigate the benefits of adding alert functionalityto the BIT AlexTodd —AndyKingham ASAP next 12
; to proactively alert AMs regarding early warning indicators for weeks (End
Whilst early warning indicators are contained in the Branch Insight Too! (BIT) (e.g. dangerous struggling branches, May 2021
goods scanning data), no alerts are configured to proactively inform AMs on potential poor
branch performance, which limits the abilty of AMs to readily identify and investigate any such
issues,
Work is in progress to consider the possibility of configuring such alerts and further improving
the data contained in the BIT.
OF4 —_Exitinterviews are not systematically conducted Upon resignation, AMS to contact PMs in the first instanceto Regional Andy Kingham Short term —
understand the reasons why they are leaving Managers following 12
At the beginning of the project there was no mechanism in place to collect PM feedback vwaeks {end
regarding the off-boarding process (exit interviews are not conducted), resulting in limited Moke ext Interviews mandatory or all outgoing PMs, The August 2021)
formal information on why PMs are resigning. Information sharing with on-boarding is results from these meetings sheuldbe documented ond
therefore limited as the feedback does not exist. At best there is an informal chat between the O TDted chk thavoonmos temmencanke teetlieaucted
outgoing PM and the AM however this is completely up to the discretion of the AM upon end shared eoroes the business,
‘Anew exit interview process is being developed in conjunction with the PMs’ Effectiveness
team. Its understood this will be launched in February 2021, with accountability for completing
the survey sitting with the AM, and data analysis sitting with PMs’ Effectiveness, Exit
notifications will be issued by the PMs’ Effectiveness Team,
OFS —_Lackof formal training program for AMs Create a structured and centralised training programme Regional Andy Kingham Medium term—
outlining the AMs role and responsibilities within Off boarding Managers FY2122 end
‘AMs are provided litte and inconsistent training regarding the off-boarding process, as such ara UTereh ataigersent provsce.rveiningsncublinalae Tena aah
their ole in the process is not clear, We noted that the AM playbook which acts as a library of Sisdalaina, dossrtom talrlngandie mentoring sgeter(to 202)
knowledge for AMs did not contain documentation regarding the off boarding and branch share knowledge
performance processes.
Plans are being considered to clarify the role of an AM within the off-boarding process and to G)
roll out specific training to support the AMs’
OF6 —_Lackof formalised procedure for thanking resigning PMs for their service In the spirit of putting PMs at the heart of the business, all Regional -—AndyKingham Short term —
PMs should be thanked for their service either in person or via © Managers following 12
There is no documented procedure or requirement in place to thank resigning PM for their phone cal In addition to written acknowledgement for weeks [end
service, this is down to the AMs discretion. All of the AMs that we spoke to make the effort to formal thanks. ‘August 2021.
O
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9.3. Off-Boarding: Improvements Noted
The following table outlines additional improvements made by Management in the past 12-18 months, in line with the strategic aim of putting PMs at the heart of the POL Business.
Reference
Number
Improvement Name Description
oF7 Process Improvements The team have reviewed the process for issuing Notice to Leave packs for PMs and notifying the relevant PM support teams. The BSC will remain the contact point for PMs to request the
to Notice to Leave packs packs but steps have been put into the process to ensure the on-boarding teams are made aware as well as AMs
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Appendices
Appendix A — Terms of Reference
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The scope as set out below was agreed as part of the initial statement of work signed on 8 January 2021.
SCOPE
The scope of this Project included:
* Analysing the current activities undertaken by POL in relation to PMs based around
initial activity mapping undertaken and provided by POL in December 2020. This
examined each of the four steps (below) of the PM journey, and looked at
improvements made, in progress and planned to strengthen the PM experience
across:
On boarding — 69 activities
- Early Days — 47 activities
- Business as Usual (BAU) — a total of 204 activities, split into continuous activities
(141) and those that relate to issue resolution issue resolution activities (63)
- Off boarding - 39 activities
Any existing material gaps in plans to strengthen activities have also been called out
where appropriate.
* Considering wider thematic areas that could support strengthened POL interactions
with PMs including factors such as:
- Overall organisational strategy
- Risk and Issues escalation and Management
= Governance and Organisational Structure
- Accountability and Responsibilities
- Policies and Controls
- Incentives and Performance Management
- Performance Reporting
= Communications and Relationship Management
- Voice of the PMs Across the Business
Training
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SCOPE (CONTINUED)
* Reviewing relevant documentation and engaging with the leads of each business unit
to understand the approach POL has adopted in relation to each activity and thematic
area
+ Presenting initial observations and findings to POL senior leadership
Note: The areas of the report covering improvements made, in progress and planned, are
factual in nature and do not provide an overall assessment or opinion of this progress.
The report is not intended to provide a fully exhaustive list of all potential future
improvements that could be made.
SCOPE LIMITATIONS
The following areas were out of scope for this work:
* Direct contact with PMs (although the Services included consideration of the extent to
which the business engages with PMs to support the overall strategic aim of putting
PMs at the heart of the POL business)
* Operational effectiveness testing and review of the underlying IT system
controls/environment (activity was be focussed on user experience)
+ Improvements in activities and process made prior to March 2019. Information on
timings of improvements was obtained through discussion/documentation with
management — the work did not seek to test or verify the timings of improvements
made.
* Cost assessment of additional activities that could be used to further strengthen POL
interactions with PMs.
* Consideration of the historical issues covered by the 2019 judgements.
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Appendix B — Prioritisation Ratings
The following table explains the rating methodology used to classify our findings and improvements identified
Definition of Rating
High priority, must fix issues — non-compliance with the outcomes of the CUJ ruling and / where there is a detrimental impact
on Postmasters. Where detrimental means that there is a significant contractual issue and / or a negative financial impact on
the Postmaster.
There is a risk of potential detriment to Postmasters, or a significant reputational risk to POL.
This change would significantly improve the Postmaster experience.
It would be beneficial to make this change to improve the Postmaster experience.
The following table explains the definitions for timeframes for implementing our recommendations for the Priority Roadmap in Section 2 of our Report
imeframe for Implementation of Recommend:
ASAP To be implemented as soon as possible, with completion by the end of May 2021.
Short Term To be implemented in the near future, after the 12-week deadline for ASAP improvements and before the end of August 2021.
Medium Term To be implemented over the course of FY21/22, with completion reached before March 2022.
Long Term Longer term and more complex recommendations which will remain a work in progress beyond March 2022.
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Appendix C — Summary of Meetings Held with POL Leadership
The following table summarises the meetings held with POL Leadership throughout the Project fieldwork period, including a summary of meeting name, date, POL attendees and summary
of content presented:
Meeting Name
POL Attendees
‘Summary of Content Presented
Postmaster Experience
Roadmap Steering Committee
14 January 2021
Dan Zinner, Amanda Jones, Nikki James,
Gayle Peacock
+ Update on status of fieldwork, workshop plan, team structure, weekly reporting template and data capture format as
well as discussion of SteerCo Terms of Reference.
Postmaster Experience
Roadmap Steering Committee
21 January 2021
Dan Zinner, Amanda Jones, Nikki James,
Gayle Peacock
+ Update on status of fieldwork, overview of roadmap for delivery
+ Weekly progress report:
= On-Boarding and Early Days
- BAU Continuous Activities
- BAU Issue Resolution
- Off-Boarding
* Observations and insights: Off-Boarding
Postmaster Experience
Roadmap Forum
27 January 2021
Nick Read, Declan Salter, Al Cameron, Dan
Zinner, Amanda Jones, Russell Hancock, Jeff
Smyth, Chrysanthy Pispinis, Gayle Peacock
+ Overview of delivery
+ Emerging work stream findings
+ Emerging thematic findings: Governance and Reporting, Information Systems, Culture & Values, Clarity of Team Roles,
Performance Management
+ Systems Map
+ Emerging Roadmap
Postmaster Experience
Roadmap Steering Committee
28 January 2021
Dan Zinner, Amanda Jones, Nikki James,
Gayle Peacock
+ Reflections on GE session
+ Observations and insights: On-Boarding and Early Days
Postmaster Experience
Roadmap Steering Committee
04 February 2021
Dan Zinner, Amanda Jones, Nikki James,
Gayle Peacock
+ Overview of interaction with POL stakeholders, issues identified (rated by risk category), roadmap approach, report
structure, discussion of proposed format & structure of Big Forum meeting and project progress summary
Postmaster Experience
Roadmap GE Forum
09 February 2021
Nick Read, Declan Salter, Al Cameron, Dan
Zinner, Amanda Jones, Russell Hancock, Jeff
‘Smyth, Chrysanthy Pispinis, Gayle Peacock
* Proposed options for risk classification methodology, summary of Ox Blood Red and Red findings, draft structure for
roadmap
* Annexes: summary of Amber findings, list of stakeholders engaged, draft report structure and Internal Audit progress
update against Norton Rose Fulbright recommendations
Postmaster Experience
Roadmap Steering Committee
11 February 2021
Dan Zinner, Amanda Jones, Nikki James,
Gayle Peacock
+ Feedback from GE Forum, summary of Ox Blood Red and Red findings, project timeline and validation approach
Postmaster Experience
Roadmap Steering Committee
18 February 2021
Dan Zinner, Amanda Jones,
+ Update on draft roadmap, discussion of report tone, executive summary and comments on pre-read (draft findings)
Postmaster Experience
Roadmap GE Forum
23 February 2021
Nick Read, Declan Salter, Al Cameron, Dan
Zinner, Amanda Jones, Russell Hancock, Jeff
‘Smyth, Chrysanthy Pispinis, Simon Oldnall,
Gayle Peacock
* Discussion of approach for Executive Summary, Roadmap and draft Ox Blood Red and Red findings
+ Opportunity for comment on pre-read (full ist of all draft findings, including improvements made and in progress)
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Appendix D — List of Stakeholders Engaged
The following stakeholders were interviewed as part of this Project, between 11 January 2021 and 1 March 2021:
Group Executive Franchise Partnering Service and Support Optimisation Strategic Partnerships
‘Al cameron cro
shaun Kerrison Head of Postmaster Engagement
master Engagement Mark Raymond Head of Security
Lynne Schofield Senior Partner Relationship Manager
Communications Director ‘Commercial Strategy and Planning
roost Setrettetmet min rete — te ten rr re
Postmaster Effectiveness Cristina Scaramella Area Manager “eocner Sng oes Mate
‘Tracy Marshall Postmaster Effectiveness Director
Taye Faroe ———‘Headof Postmaster Onboarng ‘vot nds fea Manage _Eearortintney Network Mentone Manneer uate etal
“netiosal ——MeadefTahing ‘Sve Mathewe Arn arger, nt manger emit Chaves frown Hea of cent Serves
Movs
Sheinaze Aboobaker Postmaster On-boardng Manish Mehia Area Manager I Ghar rd stk separ Aauoe I _StmOammey Reva accune Manaser
Micheliiewort—Neiork Engagement Manager ——~=—«Oeepakalan)—~=~=«usns Support Manager (ERSTE Fa SUDBOABVESE NNN [RUS Haneo I Svocho eT
Analyst
‘Annemarie ‘Steve Utting Contracts and Policy Advisor
Trevor Fidler Branch Hub Programme Manager Head of Cash Planning and
—_ — tanst——cnatetany SMR eens egy
N Performance end Optimisation ‘Strategy and Transformation ‘Andy Stevens Head of Stock Operations
= Se Ta
Alex Todd Data and Operations Insight Manager 5.44 Lambert Head of Network Provision "George cross __—Portfollo Govemance Manager ‘Rebecca Porch Cash Planning and Service Manager
Anil Nagar Order Input
Richard Taylor
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The following stakeholders were interviewed as part of this Project, between 11 January 2021 and 1 March 2021:
Legal, Compliance and General Counsel Finance
Recta aA Wa ak a
Jonathan Hill Group Compliance Director Niwa Head of Finance ~ Network
Laren OMe Sener Lagat Couette
‘Mark Baldock Head of Risk
en [[Georine Bi eke Perrer I
TraPoel Head of Pema Communitions conte anor
—_—_eetemice teenie,
Historical Matters Business Unk Sam Bancroft-Wilson Business Plans Team Leader
Jacki Adams Operations Director
i
Simon Oldnall Horizon and GLO IT Director
Paula Jenner Head of IT Service
Sree Balachandran _Head of Postmaster Experience
People
Daisie Jope Organisation Design Director
Jack Foden Organisational Design Analyst
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Appendix E — Table of Abbreviations
The following table is a list of abbreviations including definitions used throughout the report
Abbreviation Definition
AM Area Manager
BSC Business Support Centre
BSM Business Support Manager
cu Common Issues Judgement
DMB Direct Managed Branches
HU Horizon Issues Judgement
NPL Network Provision Lead
PM Postmaster
POL Post Office Limited
PSIP Postmaster Service Improvement Plan
SLA Service Level Agreement
Tc Transaction Correction
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Appendix F - Data and Management Information
The following diagram sets out some of the principles that should be considered in developing a MI and data strategy and reporting process.
Reflect clear accountabilities
Clear accountability, responsibility and ownership
by business leaders who are able to influence the
KPI and Data Strategy.
Easy to produce and use
Provides a workable, easy to use, easy to collate,
accessible & understandable way to assess
performance.
Quantifiable / Measurable
The KPI can be measurable for objective
comparison to targets, benchmarks, and over
time.
Provides insight
Provides meaningful assurance on performance
to the Leadership Team and the Board so they
know they are ‘in control’.
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Aligned to business strategy
KPls should be aligned to strategic outcomes.
Consistent in definition and calculation
The KPls are consistently defined and calculated
across the organisation and over time. The need for
consistency applies to input data, interpretation,
and language used to describe the KPI.
Drives action & learning
Enables meaningful decisions and interventions,
and promotes learning across the organisation.
Promotes integration & standardisation
Provides an integrated framework that triangulates
information across the organisation and facilitates
standardisation where appropriate
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Appendix G — Systems landscape
Draft systems landscape
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[_On-Boarding Early Days [BAU Support and Issue Resolution I [Of Boarding
Totara Branch Grapevine
POSTMASTERS Training Horizon nay Phone App
AREA
MANAGERS
L_)
o 365 BSC + BSC Used for Used by Transaction _—Detailed
deg + ISD + Branch Branch Hub Branch Data from Horizon data
nee) + Branch Recon with no Reconciliatio. Horizon with 10
Recon + Cash= links with nto issue minute delay.
+ Cash Tier 2 otherCRM Transaction Used by:
+ Security + Security system Corrections Tier 2
+ Network + Network BSC
Support Support + Cash
+ On. + Network
boarding Support
More detailed Stock
Horizon data ordering
showing system
every key
stroke. Used
by
Investigations
Team
' CFs
SUPPORT ' DYNAMICS ff SERVICE Core
FUNCTIONS RAPo Totara fa PUZZEL 365 CRM Now Finance ; HORICS
' System
30 PARTY ee I as
SUPPLIERS including
Taal
utacentre etc
Cash
Management
Systems
Note: this diagram provides an overall high-level summary of the current systems landscape in POL developed to support this Project. It is not designed to be exhaustive , nor has it
been fully verified and tested with the business.
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Deloitte.
Statement of Responsibility
We take responsibility for this report which is prepared on the basis of the limitations set out below. The matters raised in this report are only those which came to our attention during the course of our work and
are not necessarily a comprehensive statement of all the weaknesses that may exist or all improvements that might be made. Any recommendations made for improvements should be assessed by you for their full
impact before they are implemented.
Other than as stated below, this document is confidential and prepared solely for your information and that of other beneficiaries of our advice listed in our engagement letter. Therefore you should not, refer to or
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party is entitled to rely on our document for any purpose whatsoever and thus we accept no liability to any other party who is shown or gains access to this document.
Deloitte LLP
London
March 2021
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