Chapter 1 Compliance with Statutory Policies

Table 1-1 Management Annual Planning Cycle
blank Oct. Nov. Dec. Jan. Feb. Mar. April May June July Aug. Sept.
Establish Set preliminary targets for the next year. Set final targets for the next year.
Deploy Negotiate requirements and develop budgets for the next year with headquarters' departments and field operating units.
Implement Implement and manage current year's programs and budgets.
Review Assess prior year's performance. Monitor current performance and adjust programs, budgets, and, where necessary, targets.

3. Strategic Planning

The process of strategic planning in the Postal Service includes an ongoing assessment of the business environment; formulation of strategic goals, performance measures, and targets; and tracking and integration of major strategic programs.

A. STRATEGIC PLANNING CYCLE

The strategic planning cycle shown in Table 1-1 includes development and deployment of performance targets, assignment of accountability, allocation of necessary resources, program implementation, and program review and reevaluation. Each year, the Postal Service establishes organizational objectives, performance indicators, and measurement systems, and sets annual targets in compliance with the requirements of the Government Performance and Results Act.

B. STRATEGIC TRANSFORMATION PLAN 2006–2010

The Strategic Transformation Plan 2006–2010, published September 2005, is the Postal Service’s blueprint for the future. It commits the organization to new advances in service, customer convenience, productivity, and employee engagement. It describes how the Postal Service will improve the value of mail and sustain a financially stable enterprise. It describes strategic challenges, trends, and transformation strategies, and gives stakeholders essential information on developmental programs. It is organized around four strategic goals: generate revenue, reduce costs, improve service, and achieve results with a customerfocused, performance-based culture. The Postal Service updates the Plan annually to accommodate continuing changes in its business environment. Strategies and targets are then deployed throughout the Postal Service for implementation

C. STRUCTURAL RESPONSIBILITY FOR IMPLEMENTATION

Postal Service operations are managed and supported by a Headquarters and field organizational structure streamlined over the years for maximum efficiency and responsiveness. Headquarters management reports to the Postmaster General and consists of the Deputy Postmaster General and Chief Operating Officer, three executive vice presidents, five senior vice presidents, and 30 vice presidents. The Deputy Postmaster General and Chief Operating Officer has management responsibility for Headquarters and field operations.

Responsibility for operations within each of the nine area offices rests with the vice presidents of Area Operations. The area offices have oversight for 80 performance clusters. Performance clusters, some spanning multiple states, consist of customer service district offices and processing and distribution centers.

The following table shows areas, as well as, states that are served by each performance cluster. Some states are served by multiple performance clusters.