PO Chair Nigel Railton sets out Transformation Plan following Strategic Review

Post Office Ltd (PO) Chair Nigel Railton this morning set out the company’s five-year Transformation Plan which has come out of the Strategic Review.

Mr Railton said that he was genuinely excited by the future which, subject to government funding, would see a new deal for postmasters. He added he hopes it will start a new chapter in PO’s relationship with postmasters, but that PO is a business in need of an urgent fresh start.

Mr Railton then spoke about the commercial, operational, cultural and reputational challenges faced and shared his views on the future of PO.

NFSP Calum Greenhow has released the following statement HERE regarding the plan, which includes plans to close or transfer wholly-owned Crown post offices to third parties.

NFSP Members’ Editor Tim Allen has wrote the following blog HERE about the plans.

Subject to government funding, Mr Railton said the plan provides a route to add an additional £250m annually to remuneration by 2030. He added that up to £120m could be expected in additional remuneration from the next financial year.

Mr Railton spoke about dramatically improving remuneration and revenue share to postmasters and Strategic Partners, achieving lasting financial stability for PO and to deliver an enhanced service for communities across the UK by becoming a platform of choice for government and businesses.

Mr Railton added the plan would be set out by five key pillars:

• Strengthen the commercial offer that postmasters make to customers by doubling down on big market opportunities, especially in banking. 
• Ensure the network is fit-for-purpose, with a significant increase in the number of Banking Hubs – rising to 500 by 2030 – and a more consistent experience for customers in branches. 
• Transform technology and data to better serve postmasters and their customers, starting with lower-risk, better-value new branch IT for postmasters. delivered through gradual changes, rather than a ‘big bang’ moment. 
• Create a new operating model for the business, right-sizing the central organisation, embedding a new culture and ensuring PO is properly set up to support postmasters. This will include the transformation of data and systems. 
• Set a new relationship with postmasters and Strategic Partners through a new remuneration deal and a stronger voice in the day-to-day running and operations of the business and with representation from the boardroom through to the frontline.  

Mr Railton said the next update will be after the Christmas peak period. In the meantime, PO will continue to work through the details of the Transformation Plan with colleagues, postmasters, Strategic Partners and representative organisations.