2012 Annual Report to Congress and Comprehensive Statement

Strategic Change Initiatives

The Postal Service has developed a balanced portfolio of strategic change initiatives to close the gap between revenue and cost over the next five years.

The portfolio is dynamic and will change as priorities and resources require, and as programs are completed or adjusted based on external events.

Infrastructure and
Operations Optimization

Revenue Generation Programs

Workplace and Workforce Initiatives

Mail processing and transportation

Shipping growth

Talent management and development

Delivery

Transaction mail preservation

Employee engagement

Retail access

Marketing mail growth

Dispute resolution

Facilities management and disposal

Global growth

Total labor cost

Financial and information systems

Digital and hybrid mail growth

Workforce optimization

Product visibility

Pricing optimization

 

Sustainability

Increasing sales force effectiveness

 

Supply chain integration

   

Commercial mail acceptance transformation

Customer experience

 

Ongoing legislative and regulatory agenda

   

Measuring Performance — Strategic Change Initiatives

Measuring the performance of this broad, inter-related portfolio of complex and dynamic strategic change initiatives remains a work in progress.

Most programs will require several years to complete and are likely to be adapted as time goes on to respond to the economic and competitive environment and Congressional or regulatory requirements.

Aligning programs to a specific strategic goal is difficult, since many programs contribute to multiple goals.

Management is developing performance metrics for the entire portfolio. Some of the key external performance indicators are outlined below.

Cross-Portfolio Performance Metrics

Metric Description Planned Actual

FY 2012
Variance

1

Total revenue ($)

$935,718,028

$813,556,920

-$122,162,108

2

Total cost savings ($)

$581,000,000

$346,338,000

-$234,662,000

3

Total work hours reduced (hours)

6,000,000

1,940,200

-4,059,800

4

Total headcount reduced (FTEs)

67,080

29,390

-37,690

5

Total facility square feet reduced (sq. ft.)

2,200,000

3,308,811

1,108,811

6

Commercial mail in Full Service (%)

48%

45%

-3%

7

IMb adoption rate (%)

80%

81%

1%

8

Package scanning rate (%)

94%

94%

0%

9

Overall customer experience score (%) (National Performance

Assessment index)

82%

79%

-3%

10

Legislative impact ($b)

0

0

0

 

The achievement of revenue goals is partially dependent on the economy and market conditions, including competitive activity and new regulations.

Progress of the initiatives is tracked through a detailed reporting system and intensively reviewed on a frequent basis by the Postal Executive Leadership Team and other key executives.