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5. Preliminary FY2003 Goals, Indicators, and Targets
The Postal Service has developed a “balanced scorecard” approach to performance planning that includes customer requirements (Voice of the Customer), employee needs (Voice of the Employee) and financial requirements (Voice of the Business). These are based on the strategic plan, and usually do not change on an annual basis. The goals and objectives reflect corporate priorities and are supported by additional functional, departmental, operating unit and program goals.
Recent performance trends are provided in Chapter 5, Annual Performance Report.
For FY 2003, little change in most organization-wide indicators and targets is expected. The general economic decline and the associated reduction of mail volume have reduced the funds available for significant investments in future improvements. Furthermore, the necessity to divert resources to address the disruptions caused by threats to the mail system, its employees and customers also has reduced the resources available to fund improvements.
Review of FY 2003 Changes
For FY 2003, the Postal Service is focusing on improving its organizational results by identifying the most important measure of organizational success and providing clear accountability for performance.
Voice of the Customer
The FY 2002 indicators and targets for timely and consistent service performance remain unchanged for FY 2003. A scan rate target was added for Express Mail.
Voice of the Employee
The performance targets for the OSHA Illness/Injury rate and the VOE Survey were increased. In FY 2002, the target was a 2 percent national improvement in the OSHA Illness/Injury rate. The Postal Service is seeking a 3 percent improvement for FY 2003. In FY 2002, the VOE Survey target was “equal to or better than” the previous year. For FY 2003, the Postal Service is seeking “better than” the previous year.
Voice of the Business
The national Total Factor Productivity (TFP) goal for FY 2003 is to improve over the previous year. In FY 2002, the national TFP goal was a 1 percent improvement.
The performance of the Areas and their Performance Clusters (PCs) are a major driving factor that contributes significantly to the achievement of the national TFP goal. To supplement the TFP measure in FY 2002, additional productivity indicators known as Area and PC Productivity Improvements were utilized. This measure was calculated using multiple factors that were not easily recognized at all levels. Therefore, our plans for FY 2003 call for their contribution to be measured by achieving or beating their Total Operating Expense (TOE) plans, after workload adjustments. Since workhours and operating expenses are tracked virtually on a real-time basis, this change will provide a direct line-of-sight performance indicator at all levels.
Review of FY 2003
Executive Merit Performance Program Changes
The changes in the published FY 2002 Merit Performance indicators and targets are expected to be extensive for executives and key operating managers. The Postal Service is attempting to create a more detailed set of indicators that are more relevant to individual operating units and functions.
The purpose is to increase accountability and provide a clear “line of sight” between individual and unit targets to the strategic organizational targets. Such specificity would also enable managers to recognize significant improvements in performance over the previous year as well as achievement of basic targets.
Voice of the Customer (35 percent)
The following indicators are among the relevant unit specific and individual service performance under consideration:
- EXFC Overnight Destinating
- EXFC 2/3 Day Originating/Destinating Composite points to Same Period Last Year
- EXFC 2 Day Originating/Destinating Composite
- PETE Overnight Delivery
- PETE Surface within 2 days
- Express Mail Intra-district
- BMC Intra-district
- Advance (Ad Mail)
- Customer Satisfaction Measurement
- Delivery Confirmation Priority Mail Scanning Performance
- Delivery Confirmation Priority Mail Service Performance
- Effectiveness
Voice of the Employee (20 percent)
Relevant unit specific and individual indicators might include:
- VOE Survey
- OSHA Injury and Illness Rate
- OSHA Injury and Illness percentage of same period last year
- Motor Vehicle Accident Rate
- Motor Vehicle Accident Rate compared to same period last year
- Training in specified subjects
- Skills Proficiency
- Contribution to Affirmative Action and Equal Opportunity Programs
Voice of the Business (45 percent)
Relevant unit specific and individual indicators might include:
- Budget (35 percent)
- Total Adjusted Operating Expenses
- Total Adjusted Workhours
- Overtime (5 percent)
- City Carrier Overtime
- Customer Service Clerk/Mail Handler Overtime
- Mail Processing Clerk/Mail Handler Overtime
- Penalty Overtime
- Attendance (5 percent)
- Total Sick Leave
- Total Sick Leave percentage compared to same period last year
The merit items are still under development and will include discussions during the Deploy phase of the planning cycle and negotiations with Postal Service management associations. The initial results will be published in the final Performance Plan in September, but the process of developing and implementing a complete set of interconnected goals, indicators and targets is expected to take several years to implement.
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