UKGI00001534 - Meeting Notes of Jo Swinson’s Visit to Post Office with Paula Vennells and Kevin Gilliand

Evidence on official site

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UKGI00001534

Note of Jo Swinson (JS) visit to POL HQ and meeting with Paula
Vennells (PV) (Chief Executive) and Kevin Gilliland (KG) (Network and
Sales Director):12 November 2012

Following a visit to the POL Model Office for a demonstration of Horizon, AEI,
Post &Go equipment, the meeting focused on the Network Transformation
(NT) programme against the background of the award of the new DVLA
contract to POL.

JS said she was planning to send out a ‘Dear Colleague’ letter to all MPs to
focus attention on NT as the majority so far had had no direct experience
through the pilots. PV commented that that there had been much positive
local media coverage of the new models, associated retail sales were around
10% higher on average and customer satisfaction levels remained very high,
giving grounds for confidence in the strength of the model in the right
circumstances. PV noted that at a meeting earlier in the day the NFSP had
indicated that they would be withdrawing support from NT unless an element
of fixed pay was retained in the new model and greater flexibility for post
office opening hours to be shorter than retail where appropriate.

JS asked if the target of 1200 conversions by March 2013 could be achieved
without NFSP support. PV said it would be more difficult but doable, provided
the NFSP remained neutral. KG noted that 300 new model branches were
now operating — a mix of independents and multiples - and a further 40
contracts signed. Average time from signature to opening was running at
around 6 weeks. A further 150 contract signatures were expected by end
December but few more would open after late November until the new year to
avoid changes in Christmas peak period.

JS noted that it was always planned for NT to move fully into gear in January-
March. KG said that the expected 2012-13 split was 900 independents and
300 multiples. As most of the independents were NFSP members, the
NFSP’s position on NT would be crucial. JS asked what the NFSP were
asking for; was it purely more money or more fundamental concern about the
models? PV said it remained unclear and a further meeting was scheduled to
clarify. POL had however made clear that there was no more money
available within the NT funding envelope. JS asked what the range of core
tier payment (CTP) was. KG gave the range as £10k-30k which was
reviewed annually in line with traditional business trends and less ‘fixed’ than
spms tended to think.

JS noted that when she first met GT and MJ, they had expressed the view
that the NFSP should be more widely involved in the business and its
developing strategy. Was this a factor? PV thought not as the were regular 1
to 1 meetings, a strategic partnership board with MJ also on the NT
programme board and 2 representatives on the Stakeholder Forum (CWU
also).

KG noted that there was still a good flow of volunteers but to keep the
programme on track more needed to be done to speed the return of the
financial assessments and to identify ‘early adopter’ benefits. At present
there were indications that many spms planned to delay active commitment to
convert until late in the programme, retaining CTP for the maximum period,
and then benefitting from the guaranteed 3 year transitional payments. WG
suggested that guaranteeing transitional payments to a set date rather than
for a rolling 3 years might be an incentive to consider.

JS asked what steps could be taken to minimise and manage the risks. KG
noted that POL had now combined the area sales manager and field change
advisor teams into a single NT resource to focus on close contacts with those
spms who had flagged interest in converting to close the deal and expedite
the process. JS noted that a sales led approach was essential and asked
about the performance incentives for this team. KG confirmed that case by
case bonuses were paid in month of contract signature and there was also an
overall target bonus structure in place.

In terms of the wider NFSP environment, it was noted that elections for the
Executive Committee are taking place in January. JS offered to speak to GT
if it would be helpful at any point. JS also suggested that POL should identify
opportunities to promote NT and new models at constituency level as around
450 still had no direct local experience, with particular regard to key
stakeholders e.g. Shadow Cabinet, BIS Select Committee. JS also
suggested a drop in sessions at Portcullis House for groups 10-15 MPs with
early adopter spms and photo opportunities for use in the constituencies.

Actions:
Bi-monthly update to JS on NT numbers (open and contracts signed).

POL to develop a Comms plan with focus on familiarising MPs with the
benefits of NT for constituents.

BIS to investigate the UKTI seminar scheme for MPs and local businesses
and the scope to replicate as a vehicle for MPs to engage with Local
Authorities in their constituencies and their use of the post office network as a
service delivery channel.

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UKGI00001534