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Improvement Delivery Group
Monthly Update - 3 June 21
Board Noting Paper
v1
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Exec Summary
* We continue to make strong progress against planned improvements. The vast majority are being completed as
planned, and for those that are experiencing problems, the IDG is actively engaged to resolve. In addition, Internal
Audit are assuring each delivery and this too is progressing well, with only a few minor areas requiring additional
work,
The main primary issue currently blocking the progress relates to the scope of the HSS, and whether it should be
expanded to include additional items. This is preventing the finalisation of a number of treatment strategies. A
8 separate paper is being prepared to provide the details and seek a Board level decision on the way forward. The delay
a to the treatment strategy is not expected to delay the resolution of the detriment.
Since the last Board update, the status of the Inquiry has changed to Statutory. We await guidance from the Inquiry
team on the next steps (both until the interim report, and then beyond) and hope to receive this within the next two
weeks. Using this guidance we will then update our preparation plans, including the associated timelines. The change
to the Inquiry does not change our improvement plans, nor our close focus on maintaining progress.
* The GLO conformance review, being led by Norton Rose Fullbright (NRF), is nearing completion on the CIJ. Draft
findings are in alignment with expectations, showing that some items have been completed and others are inflight to
delivering conformance. There is one area of concern that has been identified where additional actions are required
(relationship with the NFSP and the Grant Agreement), and this is being actioned as a priority.
The corresponding HIJ conformance review has taken a little longer due to NRF not being as familiar with the Horizon
improvement work. We expect this to complete in June 2021.
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Progress update on full range of
improvements
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71% of our identified improvements have been completed, and of those 67% have been tested
as effective by Internal Audit
Good progress continues to be made on getting improvements delivered. We're also maintaining pace on completing the audits to demonstrate
successful delivery.
From the audits, we have identified five improvements where further work is required, and these are (or have been) resolved.
Where we identify additional improvements, they have been added to our tracker and hence the totals below reflect these additions.
Improvement Status Improvements by PM Impact
62 57 Activity complete but awaiting Internal audit
assurance review
Activity and subsequent internal audit
assurance complete
Activity is either inflight or planned
Previous update
06/05/21
Non-compliance with the outcomes of the
CJ ruling and / or where there is a
detrimental impact on PMs, where
detrimental means any form of PM harm
There is potential detriment to Postmasters,
or a reputational risk to POL
12
188 Previous update
oa 06/05/21
2
Ge
oe This change would significantly improve the
23 Postmaster experience
# Beneficial to make this change to improve
the Postmaster experience
% 15 36 33 16 100
Note: Data presented in these slides is as of 21/05.
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Improvements in phase I are being delivered, with 92% on track to meet end of May target
date
+ As the end of May approaches, the vast majority of the planned improvements have been delivered as intended. A short summary of those
outstanding is contained on the next slide
« Of note, a number of the red RAG items relate to resolving historic detriment and share the same root cause for delay — a decision needs to
be made on the scope of the Historical Shortfalls Scheme. Once this decision is made, the red items will rapidly clear and return back to
making good progress. Despite the delay, the team are still forecasting that the next phase (repayment of detriment) will not be delayed.
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Postmaster Impact Current delivery status
9 6
9
Impact Ratings
Non-compliance with the outcomes of the
CI) ruling and / or where there is a
detrimental impact on PMs, where
detrimental means any form of PM harm
There is potential detriment to
Postmasters, or a reputational risk to POL
This change would significantly improve
the Postmaster experience
Beneficial to make this change to improve
the Postmaster experience
Previous update Previous update
06/05/21 06/05/21
a
A I
Grand Total
Delivery Status
Off track against agreed dates
At risk against agreed dates
On track against agreed dates
Not Started Activities have not yet started
‘Note: Data presented in these slides is as of 21/05.
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Progress on May deliverables is being maintained, with the three red status item being closely
managed by IDG
Postmaster balance uncertainty is linked to the HSS scope decision mentioned on previous slide {note, this slide only focusses on deliveries to end
May}
Appeals and Disputes is flagged red below due to Post Office taking additional time to create and agreed the right format and style for the appeals
panel. This is an important improvement and hence the additional time is felt appropriate. This action is expected to complete within the first 2
weeks of June.
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Memoview has been largely completed but is currently being held at red due to an ongoing piece of work looking at a resolution for those
postmasters where we do not have an email address or other contact details. There are a range of reasons why POL does not have this information.
(Nu (ssue
mb
Taccountable
No. Irefler
(waa [OC I 2IPostmaster Balance Uncertainty Tim Perkins
(wiize [or I 2ISetIed Genraly Review: Documention paves/aoe [Tim Perkins
(w3%6_OF I 1IAppesisand disputes foc contract terminations i705 7200 Jandy Kingham
[wi120a [(Wr I_7IProactive identification of Horton HNGA software sues 1,0- Recommendations to improve processes paas7202a [simon Oldaall
Iwi125a [(Ar I 12] Privileged Access Management / Remote Access to Horizon Branch Database 110 Review, assess and bispoa [simon Orda
1w123a I(Ar I 10ISoRware Development fe Gye / Gualty Assurance (SDLC/GA) Process improvements 1.0: New process 30/05/2004 [simon Oldaall
Iwi145a [OC I _3IUse of memo view may meen that PMs are not sighted on al urgent communications 1/0s/2024 [lacy Marshall I
16150 [eI I 4IAccounting dputes process (including policy approval 1/05/2021 [Tim Perins I
(wi%9_JOF I_2IPeception of bias in Investigation process fai7asr2071 [andy Kingham
{wi1256 [(Wr I 13 orion Help Inorovervents 1.0- Initial OM changes to address priority sofware sues 1/05/2024 Isimon oidaall I
Iwi1t6a [lH] 31PO1 stat direct access to transaction data 1.0 updated process for sourcing ARG. data with set SIAS, [simon Oidnall
Iwitt6a [tar I 2IKeystroxe Logaing 1.0 — New proces for souclag keystroke logging data from Branch counter terminals [simon Oldaall
Iwitt6a [OC I 11Itack of PM focus in POL employee suppor centre objectives ult tang
[Mi116a [OC I 10IRotes and responsibilities for product management jowen
(MiL16a [OC I 12ILack of Cultural and Soft Skil Training provided to Key Support Teams tet tana
IMiL16a [BC I _9[twentory Team Ways of Working sel
Iwit16a [BI_I _7ILimited AM visiblty over PM contractual dbigations 1705/2021 Jandy Kinga
[M1163 [6 I 6lLack of an overarching communications framework 1/05/2021 Richard Tayior
IMi116a [OF I 3[Absence of early warning indicators to fag issues 5/05/2021 Jandy Kingham
(Mitt6a [ON I 1IUptront On Boarding Communications i057 [Trey Mahal
IMi16a IEm I_I TOM1.0- New mandated IT governance, KPV/Met'ics dashboard v1.0, 10b Dost 31/05) [simon Oidaall
Iwit6a ‘stamps and Stork Guide fs17os2021 Mark sivter
Note: Data presented in these slides is as of 21/05.
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Look forward
June — August 2021
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Forward view to August, at which point 85% of all currently tracked improvements will be
complete
The table below captures the improvements that are scheduled to deliver between June and August 21. Some have already
started, but others are not due to commence until a little later. For those which are showing as amber, IDG is already
actively monitoring and assisting where required to facilitate progress.
eter
vaecounta
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Note: Data presented in these slides is as of 21/05.
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Some notable Improvements planned for delivery June-August ‘2 I
ae ed
Implementation of a Cross-functional Implementation of a cross-functional training review forum (with August 21
Training forum to improve Postmaster representation from training schedulers, classroom trainers, Quality
training (ON6) Assurance Training Leads, on-site trainers, Branch Support Managers)
to gather feedback on training provision and recommend
improvements
Implement offboarding enhancements to Exit interviews are now carried out for all outgoing Postmasters and Complete early
ensure the efforts of Outgoing Postmasters __ there is a process in place to thank them for their service (was due August 21)
are recognised and their feedback is
recorded and acted upon (OF4 and OF6)
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Board Actions Update
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Board Action Tracking
Board Owner &
Mee’ RAG
To consider having
half a dozen + The Postmaster engagement team is in the process of pulling a list together of around 40 key
Postmaster PM Influencers.
champions who ‘ ‘ ae "
May 21 could help validate * Regional Manager Forums are held monthly to actively facilitate direct feedback.
the changes made + Co-creation sessions with PMs, following the consultation, have already worked with
from their postmasters to generate improvements to the Drop & Go services from the initial sign up
perspective. process, to providing better information and support in how to use the service
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+ Complaints were expected to rise initially as we encourage Postmasters to voice issues and
To consider and complaints, and new initiative were introduced to gather additional feedback.
confirm how we + In progress Complaints now steady at around 300 at any given time, but many of the items
were remediating captured under the complaints process are feedback and observations, particularly from
May 21 complaints in a Adopt-an-Area. Team are reviewing whether we can separate to allow more fidelity on
timely fashion. tracking and action (this doesn’t change importance or commitment to resolve, but does
allow items intended as complaints to be highlighted)
+ Annex C contains some additional detail on complaints
To provide an
example of the + Examples of the trading statement, along with all the surrounding documents are covered in
Branch Trading Annex A. Alongside there is a flowchart detailing the Postmaster discrepancy decision tree.
Statement
May 21
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Board Action Tracking
Board Update Owner
Meeting RAG
DZ invited board directors to send
any questions they had following
further reflection [on the briefing ~ No further feedback received following the board session
material to support Inquiry] to
May 21 him, Gareth Clark and Jeff Smyth. » process for settle centrally has been included in Annex xxx and is part of the
The team would come back with explanation for the earlier action around the branch trading statement.
some examples of what settling
centrally looked like now.
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For the IDG Inquiry support
material to show the historical + Format for these slides has been update, with the new and old formats shown
position and the current position together in Annex B.
8 May 21 side-by-side.
& To have a decision tree approach ‘* Decision trees are still being created and the first example is shown for
with examples at each point of the disputes and settle centrally in line with the actions above.
decision tree.
To produce a succinct overview of
sr isiay Hist spanGiors Sai + The materials are being prepared and are being used in parallel to support the
May 21 us NRF appraisal of legal conformance. We will provide supporting materials and a
the changes that had been i i
Hades ine dear Would be chard further implementation progress update at the July Board.
with Ken McCall and Tom Cooper.
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May 21
May 21
To include the “top of the
pyramid” headline issues
where we needed to
explain how the most
egregious failings of the
historical prosecutions had
been rectified.
To arrange for the Board to
see some of the systems
actually running, for
example, what happened
at a month end now
compared with what used
to happen.
To commission external
assurance on the key
systems and processes in
addition to the assurance
we had already sought on
conformance with the
Judgments.
Progress has been made against both of these actions (draft pyramid created
and options identified for Board to see systems), but the recent announcement
around the Inquiry means we may need to reassess timings.
We want to ensure the Board has the most up-to-date and appropriate
preparation for the Inquiry. Given our sustained progress with improvements,
our story will change (and improve) over time, so timeliness of activity will
ensure we can support the Inquiry in the best way.
The Inquiry team will provide some additional guidance within the next two
weeks and have indicated that they hope to set out if/how evidence provision
and oral sessions may change. This may therefore change our current
preparations.
The timing and nature of the additional assurance activity is closely aligned
with the Inquiry timescales. We already use our own Internal Audit team
(supported by Deloitte) to review all completed improvements and will set out
a plan for any required additional assurance to meet the new Inquiry
timescales in the coming month,
Of note, the GLO conformance work is also underpinning the overall assurance
of completed actions and is due to complete in June 21.
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Reminder of Intent for GLO Conformance work
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* Post Office has started a process to formally review the actions and improvements delivered, comparing them to the
requirements of the judgements and hence determining whether POL is now, or will be at a defined future point, fully
GLO conformant.
* Board will be aware that over the course of the last few years there have been many reviews conducted, each rightly
building on the last and drawing on improved Post Office understanding in the intervening time. Whilst each of these has
delivered recommendations and reassurance on progress, none have formally compared changes with the original
judgement to formally assess conformance.
* Following this short package of work, Post Office will :
* Be able to make a determination on its current conformance position
* Understand any remaining legal conformance gaps
+ Have the reassurance that plans are in place to close those gaps.
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For those at the Inquiry, this work will enable confidence in articulating our current position and clarity on the specific
areas which are still in-flight to finalise conformance.
* The work focussed on the two judgements (CIJ and HIJ) and there are two parallel but closely couple workstreams
delivering an overall view on GLO conformance
* The determination of GLO conformance will be made by POL staff. Whilst three external companies have been asked to
support this work, they will not make the decision. They will only collate the required evidence and analysis upon which
a decision can be taken.
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Cl] Conformance Progress update
* The draft CIJ report, which provides a view on legal conformance, is on track to be circulated to SteerCo for review by w/c
7% june 21.
* The report will provide an assessment of legal conformance against each of the CIJ themes and an overall view of
conformance. The following ratings have been agreed by Steerco:
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(a) Full conformance: It appears that POL has fully remediated the underlying reasons for an adverse CIJ finding
such that the criticism no longer applies;
(b) Substantive conformance: It appears that POL has remediated the underlying reasons for the adverse finding
subject to relatively minor deficiencies (i.e. which do not go to the root of the relevant criticism) which may be
addressed to ensure ‘full’ conformance;
(c) On the path to substantive conformance: It appears POL is in the process of altering its practices to remediate
the underlying reasons for an adverse CIJ finding, where: 1)the pending changes will, once implemented,
achieve substantive conformance; and 2)substantive conformance will be achieved in a well-defined period of
time;
(4) Need to develop a path to substantive conformance: It appears that POL has not remediated the reasons for the
relevant criticism in the CIJ, and there is no evidence which suggests substantive conformance is likely to be
achieved in a well-defined period of time, based on the information provided.
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+ At this stage, it is anticipated that there will be some areas where the legal opinion is that Post Office is fully conformant
3 with specific areas of the judgement (e.g. terminations)
8 « There are some areas where Post Office has met the intent of the judgement, but has not yet delivered a specific
S recommended change. An example of this is the branch trading statement where Post Office is providing all of the
required information to postmasters, but have not yet been able to make the IT changes such that it appears on the
statement itself. For this and similar examples, Post Office will be substantively conformant
« With regards to what Post Office has done to change the culture, it is anticipated that this will be classed as “on a path to
substantive conformance”. This recognises the fact that considerable work has and is being done to address the issues of
the past, but this is on-going and it will take more for Post Office to say it has fully changed the culture within the
organisation.
« There will be one area that is expected where it will be identified as needing to develop a path to conformance, which
relates to the relationship with the NFSP and the Grant Agreement. It has been identified that whilst initial proposals
were made to reflect the requirements of the CIJ, this was never completed and remains a gap. Given the changes to the
Horizon Inquiry timeline, this will be a priority for Post Office to remediate.
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HIj Conformance Progress update
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« There have been a series of workshops with NRF, KPMG and Post Office to discuss how the HIJ team and KPMG have
interpreted the HIJ, and the subsequent actions that have been taken and are planned to address the findings.
« NRF are in the process of using the output of the workshops and supporting collateral to determine whether the findings
have been interpreted correctly and that the actions taken and those planned are appropriate to achieve conformance.
The report will also acknowledge that due to the technical changes that are required and the scope of the plan, this will
take time to deliver and that Post Office is on more of a journey in comparison with the CIJ which is almost complete.
« NRF are in the process of drafting the findings and making their conclusions. It is anticipated that the draft report will be
ready by w/c 7* June, subject to the initial outline meeting the business requirements. This is currently being circulated
to the Steerco for review.
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* As the timelines for the Horizon Inquiry have changed, Post Office will need to make further assessments as to how well
they are delivering against the plan as time goes on.
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