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The Postal Service maintains a balanced set of goals and objectives, measured by stable, verifiable systems. The stability of the goals and the reliability of the systems allows stakeholders to monitor performance over time. The strategic goals are based on an assessment of stakeholder needs, and are not expected to change. However, the specific objectives and measurement systems may change over time as customer requirements and the business environment changes. New capabilities or technologies may also give the Postal Service access to more effective and efficient measurement systems. The Postal Service will continue to evaluate its performance against the best practices in the public and private sector.
1. GENERATE REVENUE
The Postal Service is charged with being self-sufficient; taxpayer dollars do not fund its operations. The Postal Service is mandated to set prices to cover costs. Few other federal government organizations operate in this manner.
The Postal Service's revenue target is an incremental increase over the estimated 2005 revenue requirements. The longer-term target is to continue to achieve the break-even requirement while supporting the growth of the universal delivery network, investing prudently in improvement initiatives that improve the value and effectiveness of mail for postal customers, and building a financially stable organization.
Recent Performance Trends
Economic trends and the timing of rate increases affect this requirement on an annual basis, while postage rates have not increased since 2002. For 2005 the plan at the beginning of the year was a negative net income.
|($ 676)||$3,868||$3,065||$1,000+ (est.)|
The Postal Service benefited from P.L. 108-18, which adjusted overpayments to the Civil Service Retirement Fund. A full discussion of the financial position is included in the Annual Report.
Performance Indicator and Measurement System
A national revenue target is established each year, based primarily on mail volume forecasts. Achieving the goal on an annual basis is affected by changes in economic conditions and competitor initiatives which affect mail volume. Postal strategies, such as pricing and product development, service performance, customer service, sales, and marketing communication, also affect revenue.
The Postal Service uses its financial and budget systems to develop the data and track performance. The data are verified annually by independent auditors, and financial processes and systems are subject to review by an internal audit group, an independent Office of the Inspector General, and the Government Accountability Office.
As the Postal Service becomes more customer-focused, it has developed additional customer and market data systems. The Postal Service intends to supplement its current revenue indicator, and different options will be examined and tested over the next several years.