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Chapter 4
2005 Performance Report and Preliminary
2007 Annual Performance Plan

Table 4-2 Total Factor Productivity Performance
2001 Actual 2002 Actual 2003 Actual 2004 Actual 2005 Actual 2005 Target 2006 Target 2007 Preliminary
1.7% 1.0% 1.8% 2.4% 1.1% 0.9% Positive Plan Positive
Based on 2006

Source: Annual reports and operating statistics.

Note: Figures represent performance compared to each prior year. Historical data is subject to updates as certain data used in calculating productivity are periodically updated. Price indexes released by the Bureau of Labor Statistics and the Bureau of Economic Analysis that are used to calculate resource usage are subject to historical updates by these agencies. When historical updates are released, they are incorporated into the TFP calculation, which can result in historical TFP updates. TFP for the reporting year is also subject to update when final Postal Service cost data for the reporting year are available. Generally, this update occurs in April of the following year.

The target for 2006 is to continue with a 7-year trend of positive productivity, increasing performance over 2005. The preliminary 2007 target is to continue to extend productivity improvements and cost reductions, enabling the Postal Service to take $1 billion out of the cost base each year through 2010 as committed to in the Strategic Transformation Plan 2006—2010. There are no major adjustments to the corporate goals, objectives, indicators, or measurement systems planned for 2006 or 2007. However, the Postal Service is refining additional performance objectives and indicators around operations quality, process standardization, and other activities below the TFP level.

3. Achieve Results with a Customer-Focused, Performance-Based Culture: Workplace Improvement, Developing People, and Safety

The Postal Service strives to provide a workplace that
encourages employees to give their best efforts to meet customer needs, provide service, and reduce cost. It is committed to a safe and secure workplace, developing its people, and enhancing performance accountability and recognition. Every Postal Service employee receives the opportunity to respond to a survey designed to assess progress in several aspects of workplace improvement. The VOE survey is conducted and analyzed by an independent firm under contract to the Postal Service. The survey is administered to one-fourth of all career postal employees every quarter, so that every employee is surveyed once a year. An index score is developed from positive responses to key survey questions.


The 5-year trend shows continuous, positive improvement in the Postal Service workplace environment despite the challenges faced from increased staff reductions throughout its labor-intensive business. In addition, the percent participation in the VOE survey has steadily increased each year.

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