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INTRODUCTION

The Strategic Transformation Plan 2006–2010 is the Postal Service's blueprint for the future. Like the Transformation Plan, published in 2002, it describes how the Postal Service will improve the value of mail and, by doing so, help sustain a financially stable enterprise that best serves the nation's mailing needs as it provides affordable and reliable universal service.

The 2002 Transformation Plan helped the Postal Service become a far leaner, more effective and modern organization. It attained record levels of service and customer satisfaction, and will achieve its goal of $5 billion in cost reductions ahead of its 5-year target. Postage rates have been stable since 2002 as a result of improvements in postal productivity and a legislative change that temporarily eliminated postal overpayments to the Civil Service Retirement Fund.

Under the 2002 Transformation Plan, the Postal Service has been using the flexibility available within current law to think beyond what was perceived as possible only a few years ago. This is consistent with recommendations of the Government Accountability Office (GAO) and The President's Commission on the United States Postal Service.

Government Accountability Office Review

The 2002 Transformation Plan was developed to address the challenges outlined by the GAO in 2001 ¹. In its most recent follow-up to that study, the GAO concluded that the Postal Service: ²

Has had a notable result in controlling costs and improving productivity.
Addressed a number of critical financial issues.
Improved human capital.
Greatly improved the transparency and quality of its financial information.

The President's Commission on the United States Postal Service

In July 2003 the President's Commission on the United States Postal Service offered recommendations for improving the Postal Service. Progress has been made on many of its recommendations, including expanded customer access to postal services, negotiated service agreements, testing personalized stamps, and pay for performance.

Purpose of the Strategic Transformation Plan 2006–2010

This plan enables the Postal Service to maintain and build upon the momentum of the 2002 Transformation Plan, while helping ensure that the organization can respond to changing customer needs, market requirements, technological developments, and legal requirements. The Postal Service will continue its commitment to take $1 billion out of the cost base each year, which, in combination with revenue growth strategies will sustain the mission of providing universal service at reasonable rates.

1 Major Management Challenges and Program Risks: U.S. Postal Service, GAO-01-262, January 2001.
2 Major Management Challenges at the U.S. Postal Service, GAO-05-207, January 2005.