2010 Comprehensive Statement on Postal Operations - USPS.com

The <strong>2010</strong> Annual Performance Report and 2011 Annual Performance Plan
Since 2004, the Postal Service has combined the <strong>Comprehensive</strong>
<strong>Statement</strong> on Postal Operations with the Annual Performance Report
and Plan. Combining documents responsive to different legislative
requirements not only reduces duplication, it also provides a more
consistent presentation about actions taken to achieve results for the
proceeding year, and efforts underway to support the plan for the
coming year. The following describes the process used to determine
corporate objectives, and the results for <strong>2010</strong> and targets for 2011.
Information is also provided on performance background indicators
and objective measurement systems.
Performance Management
The Postal Service employs a disciplined, well-documented
performance management process, based on Malcolm Baldrige
National Quality Award requirements and incorporating industry best
practices such as the balanced scorecard.
Since implementation of the Government Performance and
Results Act (GPRA) in 1993, the Postal Service has maintained the
same three corporate strategic goals: improve service, employee
engagement, and financial performance. The goals balance the
interests of customers, policy-makers, and employees. The stability
of these goals has helped the Postal Service and its stakeholders
develop a clear understanding of its mission over time, and drive
significant results.
The Annual Planning Process
Establish: Each year the Postal Service selects a limited number of
high-priority objectives to advance its goals and publishes them in its
Annual Performance Plan. Setting annual targets allows management
to focus on near-term priorities and current conditions, a practice
consistent with the Government Performance and Results Act of
1993 (P.L. 103-62) and guidelines of the Office of Management
and Budget. The Annual Performance Plan explains how results will
be measured and describes any indicator or measurement changes
from prior years.
The Postal Service’s Annual Performance Management Process
Based on Malcolm Baldrige National Quality Award Criteria
1. Establish
high-priority
objectives to advance
strategic goals
2. Deploy
resources and
assign
accountability
4. Review performance and make resource adjustments throughout the year
The Postal Service publishes its Annual Performance Report for the
prior year at the same time as the Annual Performance Plan for
the next year. The Performance Report provides results against the
prior year’s objectives and serves as a baseline for establishing new
objectives. Setting objectives is the initial step of the performance
management process.
Deploy: Once corporate objectives are established, the Postal
Service sets goals and assigns accountability for achieving them
down to the area, district, unit, and individual levels. Tailoring
objectives to specific functions ensures that managers are
accountable for results within their respective spans of control.
Any adjustments to non-bargaining unit employees’ salaries are
based on a pay-for-performance system that recognizes how
their specific performance contributed to objectives. Unlike most
government agencies that provide automatic pay increases,
cost-of-living adjustments, and locality pay, the Postal Service’s
pay-for-performance system is the sole source of pay adjustments
for non-bargaining unit employees.
Implement: The various actions and strategic initiatives described
throughout this <strong>Comprehensive</strong> <strong>Statement</strong> are designed to achieve
the three strategic goals. With few exceptions, most achieve
multiple goals and objectives. For example, the various initiatives to
reduce energy use simultaneously improve efficiency by reducing
cost, promote employee engagement, and help assure more
sustainable operations.
Review: In the review phase, performance is monitored against
objectives. Resources and processes are adjusted as needed to
assure success. This is a continuous process. The Postal Service’s
record of progress against its strategic goals stems from its use
of process management to define and replicate best processes,
intensive data analysis to target improvement opportunities,
and insights provided through continuous employee and
customer outreach.
3. Implement
actions to
achieve results
<strong>2010</strong> <strong>Comprehensive</strong> <strong>Statement</strong> on Postal Operations | 1