50 | <str<strong>on</strong>g>2010</str<strong>on</strong>g> <str<strong>on</strong>g>Comprehensive</str<strong>on</strong>g> <str<strong>on</strong>g>Statement</str<strong>on</strong>g> <strong>on</strong> <strong>Postal</strong> Operati<strong>on</strong>s
Appendix: Strategic Initiatives Background. In its March <str<strong>on</strong>g>2010</str<strong>on</strong>g> Annual Compliance Determinati<strong>on</strong>, the PRC requested additi<strong>on</strong>s to the <str<strong>on</strong>g>Comprehensive</str<strong>on</strong>g> <str<strong>on</strong>g>Statement</str<strong>on</strong>g>, specifically to provide more informati<strong>on</strong> <strong>on</strong> the performance of individual programs and the c<strong>on</strong>necti<strong>on</strong> between programs and the strategic goals. The three Strategic Goals c<strong>on</strong>tinue to be: ■■ improve service, ■■ improve employee engagement, and ■■ improve financial performance. Limited Corporate Objectives. Each year the <strong>Postal</strong> Service sets a limited number of corporate objectives to advance its three strategic goals. 8 This is c<strong>on</strong>sistent with industry best practice, the requirements of the Government Performance and Results Act, 9 and guidelines of the Office of Management and Budget (OMB). OMB directs agencies to establish a limited number of high priority objectives: “…usually three to eight, as representative of the agency’s most pressing priorities. (They) must have high relevance to the public and reflect the achievement of key agency missi<strong>on</strong>s. They must further progress in achieving a strategic plan goal, and must c<strong>on</strong>tain near-term, measurable targets, the results of which are reviewed <strong>on</strong> a quarterly basis.” 10 Linking Strategic Goals and Corporate Objectives to Strategic Initiatives. Corporate objectives are not set for individual programs, which would dilute the organizati<strong>on</strong>’s focus <strong>on</strong> its high-priority objectives. However, to help clarify the c<strong>on</strong>necti<strong>on</strong> between strategic goals and objectives, and the acti<strong>on</strong>s necessary to achieve them, the <strong>Postal</strong> Service identified nine key strategic initiatives. These nine were chosen based <strong>on</strong> their strategic importance and the degree of attenti<strong>on</strong> they will require over the next few years. They are c<strong>on</strong>sistent with priorities identified in the <strong>Postal</strong> Service’s Acti<strong>on</strong> Plan for the Future and the corporate objectives c<strong>on</strong>tained in the 2011 Annual Performance Plan. Success indicators were established and aggressive 2011 targets set for each. Results will be reported in next year’s <str<strong>on</strong>g>Comprehensive</str<strong>on</strong>g> <str<strong>on</strong>g>Statement</str<strong>on</strong>g>. The relati<strong>on</strong>ships between the strategic initiatives and the three strategic goals are described below. The many acti<strong>on</strong>s underway to achieve the strategic initiatives are described in more detail in the <str<strong>on</strong>g>Comprehensive</str<strong>on</strong>g> <str<strong>on</strong>g>Statement</str<strong>on</strong>g>. 8 More informati<strong>on</strong> about the strategic goals and the process of setting annual corporate objectives may be found in the <str<strong>on</strong>g>2010</str<strong>on</strong>g> Annual Performance Report and 2011 Annual Performance Plan following this Appendix. 9 The Government Performance and Results Act of 1993 (P.L. 103-62), or GPRA, established processes for federal agencies to set goals, measure progress, and report results. 10 Office of Management and Budget, Preparati<strong>on</strong> and Submissi<strong>on</strong> of Strategic Plan, Performance Plans, and Annual Program Performance Reports. July <str<strong>on</strong>g>2010</str<strong>on</strong>g>. Intelligent Mail (IM). The purpose of the initiative is to use IM technologies to enhance performance and customer value. By improving visibility at all points in the process of creating, processing, and delivering mail, IM helps the <strong>Postal</strong> Service and customers improve service and efficiency. An effective measure of success is the amount of mail with Full-Service or Basic IM barcode. The 2011 target is for 90 percent of workshared mail to c<strong>on</strong>tain an IMb. In-county Periodicals are not included in the measure since they are mainly small newspapers that are dropped off close to or at delivery units. Strategic goals supported by IM: ■■ Service is improved by increasing the amount of mail that can be measured and the informati<strong>on</strong> available to the <strong>Postal</strong> Service and to mailers to identify and correct any problems. ■■ Employee Engagement. Providing more detailed, acti<strong>on</strong>able informati<strong>on</strong> about mail in process allows employees at all levels to identify opportunities and implement soluti<strong>on</strong>s to improve performance. ■■ Financial Performance is impacted <strong>on</strong> both the cost and revenue sides of the equati<strong>on</strong>. Additi<strong>on</strong>al informati<strong>on</strong> about mail flow allows for improvements to both mailers’ and the <strong>Postal</strong> Service’s operati<strong>on</strong>s, thereby increasing the value of mail and mailers return <strong>on</strong> investment. Flats Sequencing System (FSS). The focus of this initiative is to reduce carrier sortati<strong>on</strong> and associated costs through automated processing of flat mail into delivery sequence. FSS will replicate for flats the benefits achieved by letter sequencing. The indicator is the percent of flat mail in delivery point sequence for delivery z<strong>on</strong>es <strong>on</strong> FSS in operati<strong>on</strong> at least six m<strong>on</strong>ths. This allows for ramp-up by mailers and the <strong>Postal</strong> Service. The 2011 target is 72 percent. Strategic goals supported by FSS: ■■ Service historically has improved as mail is automated. This includes <strong>on</strong>-time performance as well as more c<strong>on</strong>sistent delivery times for customers since carrier departure for the street is less impacted by daily variati<strong>on</strong>s in volume. ■■ Financial Performance is impacted mainly through significant work hour reducti<strong>on</strong>s. Less manual handling and fewer routes, vehicles, and support staff will reduce expenses. Improved service also drives revenue. Expand Access. To provide access c<strong>on</strong>sistent with customer preferences, the <strong>Postal</strong> Service must ensure that appropriate alternatives are available when and where customers want them, often 24/7. The target is to expand the share of retail revenue generated by means other than at a postal retail counter to 35 percent by the end of 2011. <str<strong>on</strong>g>2010</str<strong>on</strong>g> <str<strong>on</strong>g>Comprehensive</str<strong>on</strong>g> <str<strong>on</strong>g>Statement</str<strong>on</strong>g> <strong>on</strong> <strong>Postal</strong> Operati<strong>on</strong>s | 51