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 |
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 |
|---|---|---|---|---|
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.