Performance indicators and measurements are critical elements of the GPRA. The Postal Service has developed a set of reliable, verifiable measurement systems to track performance.

The Postal Service has two organization-wide performance measures.

The Postal Employees' Safety Enhancement Act of 1998 (PESEA) made the Postal Service subject to the reporting requirements of the federal Occupational Safety and Health Organization (OSHA). The illness and injury rate is calculated using a formula set by OSHA: "Total number of illnesses and injuries divided by the number of hours worked by all employees multiplied by 200,000 hours. The 200,000 hours represent the number of hours 100 employees working 40 hours per week would work, and provide the standard base for calculating incidence rates." The Postal Service uses OSHA's record keeping forms and complies with OSHA reporting and review requirements. Postal Service managers can review current and historical data on the internal Web site.

Every Postal Service employee has the opportunity to participate in a survey conducted and analyzed by an independent firm under contract to the Postal Service. The survey is administered to one-fourth of the employees every quarter, so that every employee is surveyed once a year. Responses are anonymous. An index score is developed from key survey questions. Data is available at the national, area, and performance cluster level on a quarterly basis. The data can be reviewed on the internal Web site.

The Total Factor Productivity (TFP) indicator is a measure of efficiency based on comparing changes in the relationship between resources used (input) to changes in workload (output). Workload is adjusted by the work content and volume of different mail categories and changes in the number of possible deliveries. Input is adjusted to account for the different categories and costs of labor. The productivity index ignores changes in postal rates and resource rates, since they are external factors. Reports are based on data from audited postal financial data sources, and are analyzed by an independent contractor. Postal Service managers can review TFP data and other productivity indicators on the internal Web site.

The Postal Service tracks the performance of major mail categories. It does not track all mail since the costs would be prohibitive. As tracking technology improves and is implemented, service for more mail categories will be measured.

External First-Class Measurement System (EXFC) is not a system-wide measurement of all First-Class Mail service performance. However, it does measure, on a sampling basis, service performance from a customer perspective. It provides accurate and timely results using reliable and verifiable processes. The Postal Service also has a separate internal system used for operations management (Origin-Destination Information System). While not strictly comparable to EXFC, the internal system provides a relevant cross-reference to general service trends for all ZIP Codes. The EXFC monitoring system is conducted independently by a contractor.

A contractor monitors EXFC results on a daily basis and issues monthly reports. The contractor conducts special analyses to verify that the information is accurate and fairly represents the actual service provided to customers. Postal Service managers have access to detailed analysis using the internal Web site.

Priority Mail service is measured by an independent firm under contract to the Postal Service's Office of the Consumer Advocate. Modeled closely after EXFC, the Priority Mail End-to-End Measurement (PETE) system measures Priority Mail from the time a sample piece enters the mailstream to the time it is delivered. PETE measures service performance from a customer perspective.

The PETE system provides quarterly estimates of destinating Priority Mail service performance for the 80 districts, encompassing 302 three-digit ZIP Code areas. These areas represent about 70 percent of destinating identified Priority Mail volume.

The Office of Consumer Affairs monitors the program on a daily basis, and provides official results quarterly. The contractor conducts special analyses to verify that the information is accurate and fairly represents the actual service provided to customers. Detailed data is available to Postal Service managers on the internal Web site. The Postal Service also has data from the Originating and Destinating Information System (ODIS) and tracking data from the Delivery Confirmation System. While not strictly comparable, these systems provide useful cross-checking of Priority Mail service performance issues.

The Postal Service implemented the Product Tracking System (PTS) to provide information-based services and enhancements that make traditional postal products more valuable. Internal users and customers can obtain information about Express Mail pieces from acceptance to delivery. The Postal Service uses this system to measure the performance for Express Mail and other services. A variety of diagnostic reports have been developed to highlight areas where greater management attention is required to improve service performance. Information is provided to customers through a variety of channels, including telephone and web-based systems. Postal Service managers can also track performance online through the internal Web site.

Revenue to operate the Postal Service is derived primarily from the sale of domestic and international mail services, and is supplemented by special service fees; money order sales; rents from Post Office boxes; and the sale of stamped envelopes, mail related supplies, merchandise, and philatelic items.

Audited postal accounting systems collect financial data and generate a number of reports. The Postal Service accepts funds from customers over the counter at retail and from commercial customers at business mail entry units. Data is reported on a daily basis and reports are generated on a monthly, quarterly, and annual basis.

The measurement systems for the organization-wide GPRA goals, objectives, and targets are supported by a balanced set of more detailed measures. The Postal Service has developed relevant indicators for field operating areas (multistate regions), districts, and operating units (processing plants and Post Offices). Every nonbargaining employee of the Postal Service has a personal scorecard, as well, which relates individual performance to the performance of their unit and the Postal Service nationally.

Postal Service programs, including the performance measurement systems, are subject to internal and external audit and review.

A key goal of the Transformation Plan is that the Postal Service culture be more performance based. Realization of that goal requires that the Postal Service assure accountability in each of its processes. Supporting this goal, the Postal Service established an internal control function in 2003.

The Internal Control Group is staffed by field managers and analysts, each of whom has received over 40 hours of training related to internal control. Control analysts are charged with evaluating control processes and policies and identifying those needing improvement. This active, integrated internal control system will enable the Postal Service to enhance revenue assurance, accountability, and operational efficiency and, thereby, enhance customer satisfaction.

In 2004, field staff received advance training focused on the requirements of the Sarbanes-Oxley Act of 2002. The Headquarters Internal Control Group includes the Corporate Audit Response Management group. The Headquarters team provides direction to the field units, assesses risks and controls at the national level, and provides analysis tools and reporting standards.

The Postal Service is subject to audit by the Office of Inspector General (OIG) and the General Accountability Office (GAO). The Postal Service has established a unit, Corporate Audit and Response Management, to serve as a focal point for all audit activities, assisting management in all phases of the audit process.

The financial statements of the Postal Service are independently audited each year by an independent certified public accounting firm that reports directly to the Board of Governors. The audits are conducted in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. The audited financial statements and the auditor's opinion letter are included in the Annual Report.

Postal Service goals, objectives, indicators, targets, and associated measurement systems and programs are developed in a process that depends on participation by postal stakeholders. Postal Service management attempts to balance the competing demands of different stakeholders by effectively addressing the key requirements of each.

Mapping Stakeholder Requirements

United States Postal Service Goals, Objectives, Indicators, Measures, Targets

Customers	• Timely, reliable, and accurate delivery • Products and services that meet needs • Convenient access and ease of use • Timely, relevant, and accurate information • Respectful, responsive customer service • Effective solutions and results • Reasonable, competitive prices
Business, Industry, Trade Press and Other Media	• Timely, reliable, and accurate information • Convenient access • Responsiveness
Other Stakeholders	• Citizens (universal service, consumer protection, privacy, security, safety) • Foreign posts (effective and efficient inbound/outbound transfer) • Other government agencies (cooperation)
Mailing Industry	• Timely, reliable and accurate delivery • Effective consultation and partnership • Respectful, responsive problem solving • Ease of use and integrated payment • Seamless integration • Reasonable postal costs with opportunities for profit • Reasonable cost
Employees	• Fair employment practices • Competitive wages and benefits • Safe and secure workplace • Relevant and effective training and support • Opportunity to participate and contribute • Fair and effective supervision • Open and honest communication • Career opportunities and job security
Suppliers	• Fair and efficient processes • Effective consultation • Timely, relevant, and accurate information • Profit opportunities • Ease of use and integrated payment
Competitors	• "Level playing field" (fair competition)
Congress and Regulators	• Compliance with statutory requirements • Timely, relevant, and accurate information • Effective management and control systems • Effective consultation and response

It should be noted that the process is significantly more complex than represented by the summary. Each stakeholder represents a high-level aggregation of different groups. For example, customer requirements may vary depending upon the intensity and frequency of their use of the mail (major mailers, small mailers, consumers) or whether the customers are categorized as senders or recipients. Customers may be further segmented according to the use of different services or geography. Each of these levels adds further dimensions and complexity to customer requirements.

The Postal Service devotes a significant amount of time, attention, and resources to determine the requirements of each stakeholder group, to work out reasonable compromises among the various groups, and to assess the effectiveness of various programs. The methods include surveys, focus groups; market research; media analysis; meetings with customers, suppliers, and employees; communication programs; working groups; industry task forces; congressional oversight hearings; and participation in industry and public policy conferences.