Cost cutting alone cannot sustain the business. Continuing advances in service and growth in revenue are crucial. The Postal Service is now able to generate profit and retain earnings. Profits are vital for reinvestment in continuing innovation and service enhancement. The Internet is diverting some business formerly carried in First-Class Mail, and fierce competition exists for other products as well. But every business has competition, and experience with services such as Click-N-Ship and Package Pickup demonstrate that the Internet can be a complementary partner to mail.

For mail to grow, the Postal Service must continue to add value to its core mailing and shipping services. Postal products will become more intelligent and customized with less complexity. The law grants new flexibility to tailor products and prices to specific customer needs and market conditions. The Postal Service intends to take full advantage of the opportunity to promote growth. Pricing flexibility will require innovative approaches and new levels of insight into the costs and profitability of specific market segments.

Postal employees at all levels are committed to continuous improvement. Next year they will be asked to take the next step with the expansion of service measurement for all mailing services. This is an opportune time to expand measurement. For the first time, barcode and scanning technologies allow in-process tracking of individual mailpieces. These technologies, supported by increasingly powerful management tools to pinpoint and correct service failures, promise even more consistent service in the years ahead for all mail classes.

This updated Plan includes new chapters on Postal Service strategies to enhance its Sustainability efforts and outlines the regulatory studies and reporting obligations required by the new law.

Publication of this updated plan occurs at a crossroads in postal history. Much work is now underway to adapt to the provisions of the Postal Act of 2006. However, a number of important issues must still be addressed. A new 5-year strategic vision will be published next year. By then, implications of the law should be clearer for all stakeholders, and the Postal Service will be in a better position to retool its strategies as necessary to continue its transformation.