|page 2 of 87|
Transformation continues at the United States Postal Service. In the almost 4 years since publication of the first Transformation Plan, the Postal Service has delivered on its promise of focus and results. The Strategic Transformation Plan 2006–2010 builds on the foundation of the earlier plan and continues its momentum.
In 2002 the Postal Service was emerging from the multiple shocks of an economic slowdown, September 11, and the anthrax attacks. Mail volume fell, and America's confidence in the mail was undermined. The 2002 Transformation Plan became the roadmap to recovery. It reinstilled confidence among postal employees and set challenging but achievable targets in service and cost management.
Today, service is the best it has ever been for all classes of mail. Productivity growth has been steady and strong. More than 80,000 jobs have been reduced through attrition and cumulative savings of at least $13 billion will have been realized by the end of 2005. Better service and stable rates have attracted new business. Direct mail volume is up 10 percent in 2 years. So far, at least, increases in direct mail revenue have offset losses caused by competitive, technological changes that are moving bills and payments online.
In the Strategic Transformation Plan 2006–2010, the Postal Service commits to making further advances in service, productivity, and employee engagement. The Postal Service will maintain a tight focus on core products to ensure that universal, affordable postal services continue to have the power to communicate, reach key audiences, and help bind America together. The Postal Service commits to continue taking $1 billion out of its cost base each year through 2010 while employing equally aggressive measures to grow the business.
BEST VALUE IN THE MARKETPLACE
For postal customers, value is defined by quality of service, price, and ease of use. Over the next 5 years the Postal Service will continue to improve the value of its products to promote growth. It will focus primarily on advertising mail and package delivery services.
In the advertising market the focus will be to offer services that help businesses grow. New features will be added to First-Class Mail to make it a more powerful communication tool for advertisers and financial service providers. Small businesses remain an enormous engine of the nation's commerce, and the Postal Service is developing ways to make advertising mail more accessible and easier for them to use.