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Position Specification
Post Office Ltd
Chief Executive Officer
Private and Confidential
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Position Specification
Ref: Chief Executive Officer
Post Office Ltd
Our Client
The Post Office is unique. With over 370 years of history, it is part of the social fabric of the UK as well
as being the country’s largest retail network in Europe, with 25,000 outlets; 11,5000 Post Offices and
13,500 Payzone branches across the UK. Ninety three per cent of the UK population live within three
miles of a branch and some 17 million customers visit a Post Office branch each week, including athird
of the UK’s small businesses. The Post Office has over 68 million website visitors each year. In addition,
it is the largest financial services chain in the UK with more branches than all of the UK’s banks and
building societies put together with a network of 2,700 ATMs. In 2017/18 Post Office branches serviced
by its supply chain, processed over 120 million transactions and £45 billion of cash on behalf of the
high street banks who participate in the Everyday Banking scheme covering 99% of personal customers
and 95% of business customers in the UK. The Post Office is a commercial business that makes profit
in competitive markets to deliver a social purpose: it does not pay dividends as profits are reinvested.
The Post Office has recently innovated, introducing Identity, Insurance and Digital businesses; it has
growing contact centre and online channels. The business offers more than 170 products and services
to millions of customers. Its retail network is predominantly franchised and managed on an agency
basis or through partners such as the Coop, Spar and WH Smith.
For many rural communities the Post Office is the only retail outlet, making it a vitally important
community resource in supporting local economies and helping small businesses to trade and grow
through access to banking services and a worldwide logistics network. The Post Office is the second
most trusted brand in the UK and the social value of the network is estimated at £4.3 billion to £9.7
billion. With access to a Post Office, a bank and a phonepeople in the UK can run a small business and
trade with the world. The customers it serves can be ones who are seeking to complete their
transaction as quickly as possible, through to those who see the Post Office as their main social
interaction of the day. The Post Office is diversity in action in its people and its customers.
The Post Office had a commercial turnover of c.£1 billion in FY 2017-18 and has improved underlying
profitability from a loss of £115 million four year ago, to a trading profit of £13m in 2016, £35m in
2017, and £50m in 2018. The value of transactions undertaken and processed by the Post Office was
worth £60 billion last year. It directly employs c.5,000 people at head office and throughout the UK
in c.300 owned and operated Crown branches. The wider workforce totals c.55,000 across the network
of franchisees, which includes independent agents and retail partners such as WH Smith. This network
of partners is very diverse: from highly entrepreneurial local retailers to larger corporates. The size of
the network is now at its most stable for decades.
The Post Office provides products in four strategic business areas;
™ MAILS & RETAIL — revenues of £448m and is responsible for the Post Office branch network and
for the distribution of products including Mails (parcels and other mail products provided by Royal
Mail and Parcelforce represented revenues of £334m in 2017-18); Lottery and Retail services
(£45m). Banking Services for consumers and small business across the country were transferred
into the Retail division in April 2018, a growing part of the business which is expected to increase
significantly following the recent acquisition of Payzone.
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Position Specification Ref: Chief Executive Officer
Post Office Ltd
= FINANCIAL SERVICES — revenues of £263m in 2017-18 of which £215m was from sales of Post Office
branded personal financial services products such as mortgages, credit cards, savings and travel
products and banking; and £48m from insurance through Post Office Insurance, the Post Office’s
FCA regulated subsidiary.
= GOVERNMENT SERVICES AND IDENTITY — revenues of £156m in 2017-18, and covers services
provided under contract to Government departments. This includes the Department for Work and
Pensions (DWP), the Driver and Vehicle Licensing Agency (DVLA), UK Visas and Immigration (UKVI),
and Her Majesty’s Passport Office (HMPO) for whom the Post Office has just launched the first
digital passport application. These services together represented turnover of £99m, with Bill
Payment services representing £57m.
= TELECOMS — revenues of £147m in 2017-18 including Post Office HomePhone and Broadband
services, as well as E Top-up services and phonecards.
The Post Office has made strong progress over the last five years in laying the foundations for longer
term success. It has modernised almost 7,000 branches and provided customers with 200,000 extra
hours of opening every week. There has been a continual programme of investing in, and modernising,
its branch network alongside streamlining and driving efficiencies in the provision of support services
and shifting to more sustainable retailer-hosted models. Legacy systems and IT are being addressed
and upgraded now that the separation from Royal Mail Group is complete and this will deliver around
fifteen percent reduction in annualised operating costs by March 2018.
The business is increasing its digital capability through the creation of the Innovation Hub, ensuring
customers can access its products and services online, whilst also introducing world-leading
technology to support customer journeys in branch. This has started with the launch of the Post Office
Travel app which enables customers to manage their Travel Money Card on the go, and also gives
them the opportunity to buy Travel Insurance along with the additional tools of ATM finder and Branch
Finder.
A key area of strategic digital development is Identity Services improving the current services offering
physical check steps such as identity verification and developing digital identity products which are
crucial to ensuring the UK seizes the opportunities of the digital revolution.
On 24th October 2018, Post Office acquired Payzone Bill Payments Limited. This is an exciting strategic
investment, presenting a strong growth opportunity for both Post Office and Payzone networks
offering a combined network of 25,000 branches across the UK for bill payment services. This move
effectively reduces the number of providers in this market space to two, with the other competitor,
PayPoint currently holding a 70% market share. This acquisition will be better for customers as the
combined business will be able to provide a more competitive offer to clients and provides an
increased network which helps the Post Office to be there for its more vulnerable and hard-to-reach
customers.
Strategic Priorities
With a stable network, and ongoing investment to modernise the network, improve convenience and
service for the customer, the Post Office has identified the following five key strategic priorities to
2020/21:
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Position Specification Ref: Chief Executive Officer
Post Office Ltd
= Delivering a lean, competitive cost base
= Strengthening and growing the branch network through a continued shift to retail hosted hubs
= Driving growth in financial services through digitally-enabled customer propositions
= Safeguarding its position as the UK's number one letters and parcels retailer
= Establishing a leading position in the growing identity services market
Corporate History
On 1 April 2012, the Post Office separated from the Royal Mail Group and became an independent
business. It has since made good progress towards its ambition of achieving commercial sustainability,
continuing to reduce its reliance on the Network Subsidy Payment from the Government, £60m in
2018-19, while at the same time continuing to accelerate the investment programme to transform its
branch network. These Post Offices — around 3000 — are at the heart of often deprived or relatively
isolated communities, where they are most needed.
Since 2010, the Government has invested nearly £2 billion to secure the future of the Post Office
through the modernisation of branches and the upgrading of key infrastructure. Post Office secured
its final round of investment funding of £370 million in December 2017 to support the business
through to 2021. The ambition will be to deliver self-sustaining profitable business generating in excess
of £100m per annum by 2021 so that it can continue to reinvest in the business. It is on track to do so.
The Executive Team
The Post Office Group Executive team consists of the Chief Financial and Operations Officer, Chief
Executive - Retail, Chief Executive - Financial Services and Telecoms, Group Director Legal, Regulatory
and Governance, Chief Information Officer, Group Communications and Corporate Affairs Director,
and the Group HR Director.
The Board
The Post Office Board currently consists of the Chairman, four independent Non-Executive Directors,
a Shareholder appointed Non-Executive Director, the Chief Executive Officer and the Chief Finance &
Operations Officer. Biographies for all the Board can be found in the Appendix.
Following the retirement of the current incumbent, Paula Vennells, the Post Office is seeking a new
Chief Executive Officer to take up the role in 2019. In the interim between Paula’s departure and the
appointment of a new CEO, the CFO, Alistair Cameron will be responsible for managing the day-to-day
business.
The Role
The primary role of the Chief Executive is to:
= Lead on the development of the longer-term strategic agenda.
= Lead and oversee the strategic agenda and specific opportunities and challenges facing the Post
Office and its subsidiary companies.
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= Lead the Group Executive team, playing an active and positive role in the direction of the business,
focused on driving performance and applying their experience and background to the continued
development and growth of the Post Office.
= Be the leader and role model for a business that is undergoing rapid culture change and
transformation.
= Work with key stakeholders (e.g. Agents, clients, partners, the public and politicians) to ensure
that the Post Office vision and objectives are successfully delivered.
= Work closely with the Department for Business, Energy and Industrial Strategy (BEIS) — Post
Office’s shareholder and for whom the Post Office is a ‘Partner Organisation’.
= Work closely with the Chair and the Group Board so that its members actively contribute to the
quality of the debate by providing appropriate challenge and intellectual analysis and keeping the
focus on strategic issues and its evolving business model.
= Provide leadership within the framework of prudent effective controls helping identify and
manage risks.
Candidate Profile
In terms of the performance and personal competencies required for the position, we would highlight
the following:
= Candidates will have deep executive experience in either retail, multi-site, financial services,
consumer services or logistics businesses coupled with a strong understanding of the customer
to ensure delivery of seamless customer experiences. Expertise of franchise operations would be
helpful.
= Candidates will also have some experience of working in complex and/or regulated environments.
They should be a strategic thinker across all channels, both digital and physical.
= Candidates will demonstrate a strong passion for, and experience of, data, digital and the use of
technology in optimising customer and business outcomes, including knowledge of online
distribution and transformation experience of meeting customers’ needs through digital.
= Experience of working with multiple stakeholders is a critical requirement, given the diverse
nature of constituents including MPs, Parliament, Unions, Banks, Customers and members of the
communities The Post Office serves.
= Candidates will be required to work closely with other Government Departments to develop the
Post Office’s social purpose delivering a range of initiatives and services which create value for
communities across the UK. The candidate will need to be politically savvy, effectively developing
and nurturing the organisation’s influence with these stakeholders.
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Position Specification Ref: Chief Executive Officer
Post Office Ltd
= Candidates who can lead improvements in both efficiency and effectiveness will be viewed
favourably, as will the ability to bring a diverse perspective to the board.
= Candidates must have significant experience of leading Executive teams and have had significant
engagement with boards. As a result, this role will appeal to individuals who have already made
their mark leading another successful enterprise and are now looking to take on the challenge of
completing the transformation journey and reinventing a national, iconic and much-loved British
institution.
= Prospective candidates must complement the culture and dynamics of the Executive team and
the Board and play an effective role as a team member. The Executive and the Board is
transparent, collegial, thoughtful and commercially focused.
The next phase of the transformation is to complete the journey to commercial sustainability,
securing the Post Office for another generation, making enough money to reinvest without
seeking further funding from the Government. This will continue to bring about significant change
to the way the business operates and will need someone with the skills and experience to lead
colleagues and key stakeholders, such as Agents, through cultural change in order to make this a
success.
In terms of personal qualities, the successful candidate will bring personal stature and credibility,
have strong analytical skills and be articulate and personable. They should display confidence,
humour and enthusiasm and reflect the Post Office values of trust, reliability and customer focus.
They must of course bring the highest ethical standards of integrity and probity.
Contact
Jim Hinds Emma Combe
Russell Reynolds Associates Russell Reynolds Associates
Almack House, 28 King Street Almack House, 28 King Street
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Francesca Bailey
Russell Reynolds Associates
28 King St, St. James's
London SW1Y 6QW
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Appendix - Board Biographies
Tim Parker - Independent Chairman Joined the Board 1st October 2015.
[Chairman of the Nominations Committee and member of the Remuneration Committee]
Tim took on the role of Chairman at the National Trust on 8th November 2014. He also took on
the role of Chairman of HM Courts & Tribunals Service on 27th April 2018. He is Chairman of
Samsonite. Tim has enjoyed a long business as CEO of several well-known companies. After a spell
in the Treasury as an economist, he studied at the London Business School, and soon after was
appointed as general manager of a subsidiary of Thorn EMI based in Chicago. In 1989 he led the
management buy-out of Kenwood, the kitchen appliances company. Subsequently he has been
CEO of Clarks, the shoe company, Kwik-Fit, the AA, and until recently, Samsonite, where he
remains Chairman. Tim has been Chairman of Channel Nine TV in Australia and the Autobar
Group, Europe’s largest vending company. He has also served as a non-executive director on the
Boards of Legal & General, Alliance Boots and Compass Group. He is also a director and owner of
the British Pathe film archive.
Ken McCall - Senior Independent Director Joined the Board 21 January 2016
[Chairman of Remuneration Committee and member of both the Audit, Risk and Compliance and
the Nominations Committees]
Ken’s position with Europcar is Group Chief Operating Officer and Head of Global Operations.
Formerly, he was Chief Executive of DHL Express UK and Ireland, instrumental in achieving a full
business turnaround and transformation. Previous positions include Chief Executive of TNT Asia,
Middle East, African and Indian sub-continents. Ken has extensive experience in mails, logistics
and business transformation. Ken is a Non-Executive Director of Supergroup plc.
Tom Cooper — Non- Executive Director Joined the Board 27 March 2018
[Member of both the Audit, Risk and Compliance Committee and the Remuneration Committee]
Tom was appointed a Director at UKGI in November 2017. He was most recently Global Co-
Chairman of M&A at Deutsche Bank where he has spent the previous 8 years. Before joining
Deutsche Bank, he worked at UBS Investment Bank for 21 years latterly as Head of European
M&A. He started his career at KMPG.
Shirine Khoury-Haq - Non-Executive Director Joined the Board 24 May 2018
[Member of both the Nominations Committee and the Remuneration Committee]
Shirine is Chief Operating Officer of Lloyd’s with responsibility for its global operations, business
transformation, data, IT, operational risk management and real estate functions. She is
responsible for driving the modernisation and digitisation of the Lloyd’s and the wider London
(re) insurance market as the sponsor of the London Market’s Target Operating Model (TOM)
initiative. Shirine joined Lloyd’s from Catlin, where she was Group Head of Operations and UK
Chief Operating Officer. Prior to this, Shirine was an Associate Partner at IBM, specialising in the
retail and consumer products industries, and focussing on large systems and business
transformation projects, as well as post-merger/acquisition integration.
Tim Franklin - Non-executive Director Joined the Board 19 September 2012
[Member of the Audit, Risk and Compliance Committee and Chairman of the Post Office Advisory
Council]
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Tim has had over 30 years executive experience in a variety of organisations in the banking
industry and joined the Post Office board in 2012 as a non-executive director. Tim sits on the
Audit and Risk Committee as well as the board of Post Office Insurance. He is an experienced non-
executive and is Chairman of AIM Listed Bank Private and Commercial Finance Group PLC anda
non-executive Board member of Topaz Finance Limited. He is also an accredited executive coach
working with boards internationally.
Carla Stent - Non-Executive Director Joined the Board 21 January 2016
(Chairman of Audit, Risk and Compliance Committee)
Carla, a qualified Chartered Accountant, has held a number of senior positions in banking, private
equity and in retail industries. She has had direct responsibility for corporate finance and post-
merger integration, strategy, business operations, brand development and management and
business transformation. Carla has worked at Board level for organisations including Barclays
Bank plc and Virgin Group. Carla is Chair of Savernake Capital Limited; Non-Executive Director of
JPM Morgan Elect plc, Marex Spectron Limited and Power to Change Trust (which she also chairs).
Alisdair Cameron - Chief Finance & Operations Officer Joined the Board 28 January 2015
Alisdair joined Post Office in January 2015. Prior to this appointment, from 2002 to 2014 he
worked in a variety of roles for Centrica plc, a FTSE 100 company, including Director of Audit and
Risk, Group Financial Controller, Finance Director of British Gas and Managing Director of British
Gas Enterprise. Previously he was a partner with Deloitte and Arthur Anderson and served as a
trustee of the e-Learning Foundation. Alisdair is a Non-Executive Director of Dover Harbour Board
and has just finished an 8-year term as a Non-Executive Director of Oxford University Hospitals
NHS Foundation Trust.
Jane MacLeod - Company Secretary Appointed as Company Secretary 31 August 2017
Jane joined the Post Office in January 2015 as a member of the Post Office Group Executive with
responsibility for Legal, Governance, Risk & Compliance and Internal Audit. Having qualified as a
solicitor in Australia in 1985, Jane has subsequently gained significant experience both in private
practice and in-house in a variety of roles predominantly in financial services. Jane was appointed
as Company Secretary in September 2017.
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