Strategy

The Postal Service has maintained three strategic goals for many years — improve service, improve financial performance, and improve employee engagement.

Each year the Postal Service publishes an annual performance plan, containing a limited number of priority objectives to advance its long-term strategic goals. Challenging annual objectives help focus the organization on near-term priorities, including the rapidly changing market, financial conditions and Government and contractual mandates that have weakened our financial condition and made recovery difficult. The Postal Service monitors performance against its objectives throughout the year, and adjusts strategies and resources continuously to help maximize success. It publishes its results in an annual performance report after the close of each fiscal year. The annual performance plan and annual performance report are included within the Comprehensive Statement of Postal Operations, which is available at www.usps.com.

In addition to the annual performance plan discussed above, the Postal Service published a plan entitled Ensuring a Viable Postal Service for America in March 2010. This plan is intended to focus attention on longer-term viability issues facing the Postal Service. It suggests structural changes in the following areas: retiree health benefits pre-funding; delivery frequency; modernized access to postal services; workforce flexibility; pricing flexibility; expansion of products and services; and oversight.

• Reduction of Retiree Health Benefits Pre-funding: The current pre-funding requirement has a significant impact on Postal Service losses and liquidity position. We seek to restructure to a “pay-as-you-go” system, comparable to what is used by other federal agencies and the private sector. In addition, the Postal Service believes that the historical funding formula for CSRS has resulted, over many years, in the Postal Service overfunding its CSRS obligation. This overfunding should also be addressed.
• Delivery Frequency: To adapt to changing mail volumes and customer needs, the Postal Service seeks legislation granting it the authority to reassess and adjust the frequency of delivery.
• Modernized Access to Postal Services: As consumer behaviors and needs change, the Postal Service must have the flexibility to increase and enhance access to postal services by investing in new options that improve service while lowering costs.
• Workforce Flexibility: The Postal Service must increase workforce flexibility in order to adapt to changing demand patterns.
• Pricing Flexibility: The Postal Service needs the authority to adjust its pricing to better reflect market dynamics and offset future volume and revenue declines. Therefore, we will seek modifications to the laws related to pricing.
• Expansion of Products: As technology and customer needs change, so will the definition of mail. The Postal Service seeks additional flexibility to innovate and introduce new products to better meet changing customer demands.
• Oversight: The Postal Service is subject to oversight by multiple bodies. This limits the flexibility and speed required to adapt and respond to the rapidly changing environment. It is crucial to clarify oversight roles and responsibilities and to streamline processes.