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USPS Presentation 2 16 12

USPS Presentation 2 16 12

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Published by: bsheehan on Feb 16, 2012
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05/19/2012

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 ® 
February 16, 2012
Plan to Profitability
5 Year Business Plan
 
1
February 16, 2012 
Introduction
The United States Postal Service (“USPS”) continues to endure the negative effects ofelectronic diversion combined with a weak economy and increased funding obligations
This confluence of events has had financial impacts on the organization which havebecome untenable
While the USPS has continuously sought to make operational improvements andimprove efficiency, the organization’s current financial position requires additionalaction to ensure viability and self sufficiency
The following presentation has been prepared by the USPS in order to communicateits business plan (“Business Plan”) to key stakeholders
Specifically, the document covers
Challenges facing the organization today, notably electronic diversion and theimportance of First-Class Mail
Financial impacts of both the difficult operating environment and regulatoryframework under which the USPS operates
Actions USPS is planning to take to address its financial position and outlook
Financial benefits of the identified initiatives and impact on USPS stakeholders
Overview of continuing actions to confront revenue declines through innovation
Business Plan risks and sensitivities
 
2
February 16, 2012 
1,4591,4231,3731,2581,1831,1491,091$0.0$1.2$3.2$9.3$12.3$13.7$16.2$0$3$6$9$12$15$181,0001,1001,2001,3001,4001,5002006200720082009201020112012
 $  i  n  b i  l  l  i   on s 
   T  o   t  a   l   W  o  r   k   h  o  u  r  s   (   M   i   l   l   i  o  n  s   )
Continuous Efficiency Improvementsat USPS
Annualized Savings vs. Workhours
U. S. Postal Service ranked the bestpostal service within the world’s top 20largest economies
(1)
Delivers 200% more efficiently thanthe nearest Post
Delivers 500% more efficiently thanDeutsche Post (#5 Post in the world)
(1) Oxford Strategic Consulting report issued December 15, 2011
Career EmployeesPostal Service is More Efficient Than Ever
Annualized SavingsFY12 PlanTotal Workhours
788776753729707705696685663623584557500550600650700750800850200020012002200320042005200620072008200920102011
   C  a  r  e  e  r   E  m  p   l  o  y  e  e  s   (   0   0   0   )
21.6197219801990200020110.05.010.015.020.025.0
   T   F   P   C  u  m  u   l  a   t   i  v  e   T  r  e  n   d
Total Factor Productivity

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