Postal Service reports progress on transformation plan
Agency reduced workforce by 68,000 and increased productivity by 5 percent during the past two years.
Over the last three years, the Postal Service has managed to save billions of dollars through a broad range of organizational improvements, and in November, the agency issued an annual report on progress toward the Transformation Plan, a comprehensive strategy put into place in April 2002.
"Transformation of the Postal Service is succeeding and will continue to drive further improvements," wrote Postmaster General John Potter in the report's introduction.
Since 2002, the Postal Service has reduced career employees by 68,000 and boosted productivity by 5 percent. These and other advances have helped to offset a loss of revenue due to shrinking volumes of first-class mail. However, agency officials say that a legislative overhaul still is necessary to ensure the Postal Service's financial viability.
The report outlines achievements in a spectrum of areas, including value to customers, operational efficiency, performance-based culture, financial and real estate management, supply-chain management, technology, security and privacy.
The Postal Service has introduced a range of self-service options to expand customers' access. These include selling stamps online, by mail, at ATMs and in kiosks and vending machines. Options also allow customers to print labels, buy insurance online and change addresses online or by telephone. The Postal Service also has begun a pilot program of Business Solutions Centers where small-business customers can meet with postal consultants.
The agency made progress toward its goal of achieving growth by adding value to the mail. In August, it completed the rollout of Carrier Pick Up, an online service that allows customers to schedule a pickup and give specific instructions to their carriers. The Postal Service also developed and deployed technologies for mail tracking services for business customers.
The Postal Service improved efficiency with new mail processing equipment, though it suspended testing of the Segway Human Transporter scooters for mail carriers because the machines' batteries were deficient.
In human resources, the Postal Service completed a succession plan that identified 1,417 employees as prospects to step into roughly 800 executive spots. It also expanded a new pay-for-performance program to 78,000 nonbargaining employees and automated the process for annual reviews. Employee satisfaction reached an all-time high.
The agency achieved savings through better supply-chain management and by simplifying its technology resources. It reduced its number of software programs from 270 to 60, removed 12,000 servers from the field, and eliminated 780 technology contractor positions.