Transformation Plan

In April 2001, United States Comptroller General David Walker placed the Postal Service’s transformation efforts and long-term outlook on the General Accounting Office’s “high risk” list because of the Postal Service’s significant financial, human capital, and structural challenges. Walker stated that:


The Service’s ability to provide universal postal service … will be increasingly threatened unless changes are made, both within current law and to the legal and regulatory framework that governs the Service.50


The General Accounting Office, now the Government Accountability Office, asked the Postal Service for a comprehensive plan that addressed these concerns. A year later, on April 4, 2002, the Postal Service submitted its Transformation Plan to Congress. The plan presented targets to improve service and manage costs. The Postal Service began to implement the plan’s service, customer satisfaction, workplace improvement, and financial recommendations even before submitting it to Congress.

In September 2005, the Postal Service published its Strategic Transformation Plan, 20062010, which identified further strategies to enhance the Postal Service’s core business of delivering mail. The results?

From 2002 through 2006, the Postal Service saw:


Record-level service performance and customer satisfaction scores during a period when the Postal Service had added nearly 7 million new addresses to its delivery network.

Consistent growth in total factor productivity.

Nearly $5 billion in cost savings since 2000, a five-year savings target identified in the plan.

A 7.5 percent reduction in the number of career employees with no layoffs.

Greater efficiency and added value to the mail through innovative technology.