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UNITED STATES POSTAL SERVICE DEPUTY POSTMASTER GENERAL
Prepared by: Assignment: Date:
Leslie Hortum 61639-006 January 2011
Confidential: This document and the information contained within is confidential and is provided to the named recipient. This information has been prepared in good faith by Spencer Stuart but may require future verification or correction. Distribution or reproduction of this document and/or its contents is strictly prohibited.
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POSITION SPECIFICATION About the United States Postal Service (USPS) In the more than two centuries since Benjamin Franklin was appointed our first Postmaster General in 1775, the USPS has grown and changed with America, boldly embracing new technologies to better serve a growing population. A self-supporting government enterprise, the USPS is the only delivery service that reaches every address in the nation — 150 million residences, businesses and Post Office boxes. The USPS receives no tax dollars. With 36,000 retail locations and the most frequently visited website in the federal government, the USPS relies on the sale of postage, products and services to pay for operating expenses. The USPS is wholly owned by the government and controlled by US Presidential appointees (the Board of Governors) and the Postmaster General (who is appointed by the Board of Governors). Named the Most Trusted Government Agency for five consecutive years and the sixth Most Trusted Business in the nation by the Ponemon Institute, the USPS has annual revenue of more than $68 billion and delivers nearly half the world’s mail. If it were a private sector company, the USPS would rank 28th in the 2009 Fortune 500. In the 2009 Global Fortune 500 list, the USPS ranked 84th. The USPS is the core of the trillion dollar mailing industry that employs more than 8 million people. It employs roughly 700,000, making the mail service the second largest civilian employer in the country, second to Wal-Mart but ahead of McDonald's, and the fourth largest civilian employer in the world. These classes of mail brought in most of the $68 billion in revenue in 2009: First-Class Mail Advertising Shipping Services Periodicals Package Services $35.9 $17.4 $8.1 $2 $ 1.7 billion billion billion billion billion
Envisioning America's Future Postal Service “Ensuring a Viable Postal Service for America,” the Postal Service action plan for the next decade, describes a flexible, agile Postal Service that can adapt to America’s changing mailing habits and preferences. The USPS understands that to best serve the American people in 2020 and beyond, it must be leaner and more able to quickly respond to customer mailing needs. The presentation in its entirety can be accessed at http://www.usps.com/strategicplanning/_pdf/ActionPlanfortheFuture_March2010.pdf.
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Financial Information The USPS faces a number of financial challenges due to the combined effects of the economic recession, increased use of electronic communications, and its legislatively-mandated obligation to prepay Retiree Health Benefits. In the face of these financial challenges, the USPS has responded aggressively, saving over $1 billion every year since 2001, including $6.1 billion savings in 2009 alone. A loss of more than $7 billion is projected for 2010, and with current trends expected to worsen over the decade, the USPS will be pushed more deeply into crisis. Without fundamental change through legal, legislative, and regulatory action, cumulative losses could reach more than $238 billion by 2020. To avoid potential insolvency, the USPS has developed an ambitious but achievable plan, taking steps allowed under current law to reduce the projected gap by $123 billion. These savings would be unprecedented, even by the standards set over the last several years; and even if its plan was to succeed in every action that present legislation allows, the USPS would still face unsustainable losses of at least $115 billion by 2020. The remaining gap can be closed, and the USPS can continue to fulfill its mission at no cost to American taxpayers, but only with additional flexibility that would have to come through legislative changes. Legislative & Regulatory Priorities The USPS will work with Congress to address the prepayment of retiree health benefits, change frequency of delivery, and restructure price caps mandated by the Postal Act of 2006. Restructuring prepayment of retiree health benefits and changing delivery frequency provide the greatest costs savings opportunities. These two changes could reduce cumulative costs by as much as $90 billion by 2020. The following bullets provide specifics on each of the legislative priorities: Restructuring Retiree Health Benefits Prefunding Restructure retiree health benefits payments to “pay-as-you-go,” comparable to what is used by the rest of the federal government and the private sector. This will add an average of $5.6 billion in cash flow every year. Adjusting Delivery Frequency Adjust delivery days to better reflect current and anticipated volumes and changing patterns in customer use. Survey data show that the public favors 5-day delivery over using taxpayer funds and other alternatives. In FY 2000, $1.80 in revenue was generated per delivery stop daily, based on six days of delivery. In FY 2009, $1.40 in revenue was generated per delivery stop. That number is expected to drop to $1 by 2020. Under current law, the Postal Service cannot determine the number of days to deliver mail, regardless of costs or declining revenue.
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Restructuring Price Caps Ensure that prices for mailing products (Market Dominant) are based on demand for individual products and their costs, rather than capping each class of mail at the rate of inflation currently required by the Postal Law of 2006. The Consumer Price Index should apply to the entire group of products, rather than each individual mailing class.
Additional Information Guiding Principles for Implementation of the Postal Act of 2006 can be accessed at: http://www.usps.com/postallaw/_pdf/GuidingPrinciplesFinal.pdf. Postmaster General Patrick Donahoe’s most recent statement to the Senate Committee on Homeland Security & Governmental Affairs, Subcommittee on Federal Financial Management, Government Information, Federal Services and International Security can be viewed at: http://www.usps.com/communications/newsroom/testimony/2010/pr10_pdonahoe1202.htm For general information about the US Postal Service, please visit www.usps.com.
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Position Summary The Deputy Postmaster General (DPMG), a member of the Executive Leadership Team (ELT) and Board of Governors, will serve as a senior partner, thought leader, and key advisor to the Postmaster General (PMG), ELT, and Board of Governors on all USPS matters related to government relations and internal and external communications. In this newly structured, outwardly-facing role, s/he will be: a voice for the USPS, crafting and delivering clearly articulated messages for Congress, regulators, the Office of the Inspector General, and other external stakeholders, including businesses, consumers, and the media; a legislative strategist responsible for advancing the Postal Service’s legislative goals and initiatives; and the internal point person responsible for building/enhancing relationships with the many organizations and groups associated with the USPS. In addition, the DPMG will ensure these efforts, goals and results are coordinated internally with and among the Board, ELT and appropriate members of his/her team. Specifically, s/he will be responsible for driving and influencing the public dialogue about the USPS’s qualities and capabilities in a positive direction. This includes: developing and deploying business, political and communications strategies to shape conversations and achieve public policy goals; managing key stakeholder relations; improving the industry tone through strategic messaging to a diverse group of constituents including but not limited to the US Congress; customer groups (i.e. relevant associations); postal interest groups; “individual” customers; and the American public; and promoting a constructive dialogue with businesses and consumers to align interests and support the USPS commercial agenda. Internally, this individual will be charged with leading, developing and managing a world-class internal communications/public policy team and agenda.
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Key Relationships Reports to: Postmaster General (Patrick R. Donahoe); also a member of the Board of Governors Vice President, Industry Affairs (Vacant) Vice President, Government Relations & Public Policy Vice President, Corporate Communications Consumer Advocate Judicial Officer Executive Leadership Team President and Chief Marketing/Sales Officer Chief Operating Officer and Executive Vice President Chief Human Resources Officer and Executive Vice President Chief Information Officer and Executive Vice President Chief Financial Officer and Executive Vice President General Counsel and Executive Vice President Office of the Inspector General (OIG)
Direct Reports (5):
Other key relationships:
The USPS Board of Governors Louis J. Giuliano, Chairman Thurgood Marshall, Jr., Vice Chairman Mickey D. Barnett, Member James H. Bilbray, Member Alan C. Kessler, Member James C. Miller III, Member Dennis J. Toner, Member Ellen C. Williams, Member
Governance Structure The Board of Governors of the US Postal Service is comparable to a board of directors of a private corporation. The Board includes nine Governors who are appointed by the President with the advice and consent of the Senate. The nine Governors select the Postmaster General, who becomes a member of the Board, and those 10 select the Deputy Postmaster General, who also serves on the Board. The Postmaster General serves at the pleasure of the Governors for an indefinite term. The Deputy Postmaster General serves at the pleasure of the Governors and the Postmaster General.
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CANDIDATE SPECIFICATION: KEY SELECTION CRITERIA
Ideal Experience • The ideal candidate will have 20+ years of experience taking an organization’s agenda and advancing it in “understandable terms” on the Hill. This includes: o o o • • • Demonstrating a high level of access across the Hill and Administration, and in-depth knowledge of the legislative and regulatory process in general. A successful track record of influencing senior lawmakers and regulators, resulting in tangible progress on key public policy priorities. Leveraging past experience to posture an organization on public policy issues, factoring in the important nexus between the federal government and business.
An exemplary track record of leadership and management of a highly functional team in a large and complex organization. Experience and a comfort-level serving as a spokesperson for an organization. An understanding of the industry and business, preferred. A sincere appreciation of the complexity of the business required.
Critical Competencies for Success Political Acumen As one of the USPS’s top representatives to Congress, s/he will effectively lead advocacy efforts on behalf of a multibillion quasi-governmental enterprise that faces a multitude of complex legislative issues. S/he will do this by: • • Serving as chief legislative strategist for the USPS on Capitol Hill and throughout the federal government. Maintaining, cultivating and leveraging relationships with key decision-makers in the public policy arena. This includes establishing credibility and trust with multiple constituencies, including Members of Congress, the Postal Regulatory Commission, industry groups, consumer advocates, and the American public. Influencing legislation and regulatory policy by working with Members on both sides of the aisle on issues and activities relevant to the USPS. Knowing when and how to utilize business relationships to advance the legislative agenda on Capitol Hill. Looking at the “big picture” and considering all political angles and affected stakeholders.
• • •
Strategic Communicator The USPS’s ability to meet ambitious long-term goals depends, in part, on the Deputy Postmaster General’s success in creating, leading, and executing a strategic government relations and communications plan designed to address a number of issues, including: the
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prepayment of retiree health benefits; frequency of delivery; and restructuring price caps mandated by the Postal Act of 2006. To this end, the Deputy PMG will be an outstanding communicator who: • • • • • Will work collaboratively with the 140+ different organizations that connect with the USPS, including PostCom, the Association of Mailers, the Parcel Shippers Association, and the Direct Marketing Association. Uses a compelling data-driven approach to shape messaging and reason, proactively informing lawmakers and key decision-makers on the financial status of the USPS to garner support for immediate legislative action. Works collaboratively with the ELT to refine unified messages around numbers and metrics as appropriate. Will be an effective spokesperson for the USPS, not only on the Capitol Hill, but also to Wall Street, other media outlets, industry groups, and postal interest groups. Will build and support execution of a strong coherent internal communication agenda which aligns with both the strategic agenda of the USPS and external messaging.
Leadership In this newly-structured role, the DPMG will manage a significant team. S/he will: • • • • Work in “lockstep” alongside the PMG, leading with optimism, recognizing and successfully communicating the USPS’s agenda in a positive fashion. Serve as a strategic partner and advisor to the PMG, Board, and ELT, providing a crisp view of external opportunities and threats and an action plan for addressing them. Strengthen the focus on business ethics and conducting affairs with the highest degree of integrity through internal communication and best business practices. Evaluate and build organizational and human resource capabilities from a long-term perspective.
Other personal characteristics This leader will have the intellect, passion, gravitas, energy and optimism to be a formative leader at one of the world’s largest enterprises. Additionally, s/he will have: • • • • • • • • • • Unquestioned integrity Impact and influence Acute political sensitivity and sound judgment Superb communications and presentation skills Strong executive presence Solid customer-facing skills A positive attitude Intellectual curiosity A proactive nature and sense of urgency Exemplary interpersonal skills and diplomacy skills