A LETTER FROM THE POSTMASTER GENERAL/CEO AND
THE CHAIRMAN OF THE BOARD OF GOVERNORS

When we published our first Transformation Plan over five years ago, we knew it would require long-term commitment. Our goal was to position the Postal Service to succeed in a dynamic market, one marked by increasing competition and evolving customer needs.

The Postal Act of 2006 introduced several changes to the way the postal business is managed. Although a number of issues are still being determined, the broad outlines are clear. The law provides improved flexibility for responding to a changing market, and we will use it to tailor products to customers‘ needs. There are new expectations of accountability and new requirements. We are moving quickly to meet these requirements. Our actions and plans for these areas are reflected in this document.

Our Transformation Plan was designed to be a living document. It had to be comprehensive to reflect all aspects of our business and the entire mailing industry. It had to be focused to target key opportunities. And it had to be flexible to accommodate new challenges as they arose. We knew that one thing would not change — the fact that everything must begin with a commitment to our customers. By staying focused on that principle, we knew we would deliver — and we have. Service performance is the best it has ever been. Efficiency continues to climb. New features and services continue to make mail a better value. Today‘s mail is among the most effective channels of communication in a crowded marketplace. We‘re proud of our accomplishments, and we‘re ready to raise the bar to ensure a viable postal system for future generations.

We continue to move forward on key Transformation strategies. We are applying new technology and management tools to drive continuous improvement in service and efficiency. Intelligent Mail is rapidly emerging as a source of new value. A major priority is helping mailers quickly take advantage of it. The Flats Sequencing System, which begins deployment this year, is also a key focus. At the heart of everything we do are our employees, with a single, unchanging goal — providing customers with the best service and the best value.

There is no question that there are challenges. Resource costs continue to rise and competition for all of our products has only intensified. But for every challenge there is also an opportunity, and our experience with Transformation demonstrates what we can accomplish. In the Postal Service we‘re used to taking on challenges. It brings out our best.

John E. Potter
Postmaster General and
Chief Executive Officer

James C. Miller III
Chairman,
Board of Governors