Chapter 4 Annual Performance Report and 2007 Annual Performance Plan

E. Performance Results

Performance trends since 2001 are shown below.

1. Generate Revenue


Table 4-2 Total Revenue to Plan Performance Trends (%)
2001 2002 2003 2004 2005 2006
Actual to Plan 97.0 96.9 97.6 100.2 102.4 100.7

Source:Postal Service Finance

There were no changes to the goals, indicators, or measurement systems, and none are contemplated for 2007.

2. Reduce Costs

Efforts to improve service must be balanced with the need to reduce the growth of postal costs. Certain drivers of postal costs, such as the growth of the delivery network or the price of fuel, cannot be easily controlled. In order to provide service as efficiently as possible to keep postal prices as low as possible, the Postal Service has focused on increasing productivity.

Table 4-3 Improvement Trends in Total Factor Productivity: Annual % Change in TFP
  2001 2002 2003 2004 2005 2006
Total Factor Productivity
 1.7 1.0 1.8 2.4 1.1 0.4

Source: Postal Service Financial Reporting and Analysis

There were no changes to the goals, indicators, or measurement systems in 2006 and none are contemplated for 2007.

This performance represents a cumulative improvement of more than 10% during a period in which the price of postal resources, such as labor and fuel, increased almost 20%. This productivity improvement has enabled the Postal Service to keep rate increases, on average, below the growth of the consumer price index. The Postal Service continues to refine additional performance indicators around operations quality, process standardization, and other activities below the overall TFP level.

3. Improve Service


Table 4-4 First-Class Mail Delivered Within Service Commitment Trends
  2001 2002 2003 2004 2005 2006
Overnight
94%
94%
95%
95%
95%
95%
2-Day
85%
85%
90%
91%
91%
91%
3-Day
81%
80%
88%
89%
87%
90%

Source: Postal Service Consumer Advocate’s Office
Notes: Results are rounded for the full year for national public reporting. More detailed data, subject to seasonal exclusionary period to reflect expected inclement weather conditions and reduced airlift capacity (generally from late November to early February) are used internally. The Postal Service has been reducing the duration of the exclusionary period. Local service performance data may also be adjusted to reflect widespread natural disasters (e.g. Hurricane Katrina).
Before 2003, First-Class Mail 2- and 3-day performance was combined and reported as a single score. Since 2003, performance has been tracked separately to reflect different operational conditions. Prior year data has been adjusted for consistency. The format of this report reflects changes to eliminate discrepancies between different Postal Service documents caused by different reporting periods.
GPRA-level service reporting uses rounded data, while pay-for-performance data used internally is more detailed. Internal data also reflect continuing reductions in the exclusionary period, while GPRA data does not include any exclusions. Exclusionary periods reflected periods, originally from late November to early February, when restricted airlift capacity and weather conditions typically affected service performance.

There were no changes in the First-Class Mail goals, objectives, indicators, or measurement systems in 2006, and none are planned for 2007.

4. Achieve Results with a Customer-Focused, Performance-Based Culture

The Postal Service is a large organization, with most employees engaged in repetitive manual labor — lifting and moving mail — with many driving long distances, exposed to weather, dog bites, and other occupational hazards. The goal is to reduce accidents, injuries, and illnesses (downward trend is the desired result).

Table 4-5 OSHA Safety Performance Trends (Illness and Injury Rate)
2001
2002
2003
2004
2005
2006
Injuries and Illness Rate
8.8
8.0
7.3
6.6
5.7
5.6

Source: Postal Service Safety and Environmental Performance Management
Note: Rates are yearly averages. Data has been adjusted to comply with OSHA requirements to show accidents in the year they occurred rather than the year reported. In addition data are changed to reflect updated medical information and improvements in record-keeping.

There were no changes to the goals, indicators, or measurement systems in 2006 and none are contemplated for 2007.

Table 4-6 Voice of the Employee Survey Performance Trend INSERT TABLE 4-6 HERE

Table 4-3 Workplace Improvement Performance — Voice of the Employee Survey Ratings (Percent Favorable)
2001 2002 2003 2004 2005 2006
VOE Survey Index
 58.1 58.8 61.1 62.1 63.7 63.4

Source: Postal Service Human Resources.

There were no changes to the goals, indicators, or measurement systems in 2006 and none are contemplated for 2007.