delivering our best
On-time delivery of overnight-committed First-Class Mail achieved a record high — 95% — through one of the harshest winters in years. We held that performance level for the rest of 2003. And it wasn't just First-Class Mail — all measured service categories were at record levels.*

satisfying customers
We delivered for our customers, and they noticed. Independently measured customer satisfaction scores for quarter four showed that 94% of our customers rated their experience with the Postal Service as excellent, very good or good. This was a one-point jump over the 93% recorded during the first three quarters. Research generated by the President's Commission on the Postal Service also found the Postal Service held in the same high regard as our private-sector competitors.

staying productive
We marked a record fourth straight year of positive total-factor productivity. TFP includes all factors of production and measures the growth in the ratio of the resources we use — the inputs — to the products and services they produce — the outputs.

cutting costs
At the Postal Service, we understand that every penny we spend is a penny we have to earn from our customers. So managing costs is important to us. In 2003, we reduced costs by $1.1 billion, increasing customer value with every transaction. Our goal? Removing another $2.3 billion in costs by 2006.

expanding access
No time to visit the Post Office? We bring the Post Office to you — with usps.com. Buy stamps. Send packages using Click-N-Ship. Print address labels — with or without postage. Add Delivery Confirmation and other special services. Send cards and letters. Schedule a pickup. Get mailing information. And check on the status of your shipment. All from the convenience of your home or office. You're busier than ever — that's why we've made usps.com better than ever.

continuing to transform
Times are changing — customers have more choices than ever. That's why the Postal Service is changing. We're increasing operational efficiency. We're adding value for our customers. And we're enhancing our performance-based culture. It's all in our Transformation Plan, defining the strategies we're following to protect the right of everyone in America — no matter who, no matter where — to affordable, universal mail service.

providing solutions
Consumers are saying "no" to telemarketing. They're blocking spam. But most still welcome direct mail. It's one of the most respected — and effective — sales tools available to marketers. This year, we've made it even better with innovations like Customized MarketMail and Repositionable Notes — two ways for mailers to make sure their messages stand out from the crowd.

helping others
Our Breast Cancer Research stamp — the first semipostal stamp issued by the United States Postal Service — has raised $34.5 million toward finding a cure. And the "Heroes of 2001" semipostal has already raised $8.6 million for the families of emergency workers

killed or injured in the 9/11 attacks. Both stamps sell for 45 cents, with the difference between the one-ounce, First-Class letter rate and the price of the stamp earmarked for their special purpose.

celebrating diversity
For the fourth straight year, Fortune magazine recognized the Postal Service as a leader in diversity, naming us one of the "50 Best Companies for Minorities." And we placed ahead of every other delivery company included in the list!

driving performance
We're implementing an innovative new pay-for-performance system. For the first time, compensation for every supervisor, postmaster, manager and executive is directly tied to their achievement of clearly-defined service, financial and employee goals.

protecting employees, customers and the mail
We tested a state-of-the-art Biohazard Detection Systems at 15 locations nationwide in preparation for deployment in 2004. The system will provide a new level of protection through early warning if biohazards such as anthrax are detected in the mail. And an independent Environmental Clearance Committee declared our decontamination of Washington, DC's huge Curseen-Morris mail processing facility a success.

respecting privacy
As we do business with our customers — from the largest mailer to the individual household — we're creating a gold standard of privacy protection. In a survey conducted by the prestigious Ponemon Institute, the Postal Service received the highest privacy trust score of any government organization examined.

safeguarding the mail
The Postal Inspection Service worked to prevent crime involving the mail through an aggressive program of education, prevention and investigation. As a participant in the Attorney General's Corporate Fraud Task Force, the Inspection Service also led a nationwide awareness campaign that showed millions of consumers how to protect themselves against identity theft, whatever its source.

board of governors
In 2003, the Board held regular, monthly meetings in each month except July, for a total of 21 days of regular meetings. Seven of the regular monthly meetings were held in Washington, D.C. Four were held in other areas of the country to allow the Board to see postal operations. In addition, the Board held four special meetings.

The Board had three standing committees: Audit and Finance, Capital Projects and Strategic Planning. The committees held regularly scheduled meetings during the year to consider matters within their areas of responsibility and refer items to the full Board for consideration.

Board actions during 2003 included:

Comprehensive Statement on Postal
      Operations.
  approval to implement a Negotiated Service Agreement
       with Capital One.
  approval of major capital pojects.
  appointment of 2nd Inspector General of the Postal
      Service.