# Presentation: 730367

## Comprehensive Transformation

- Plan
- Mailers Technical Advisory Committee
- November 8, 2001

**Notes:**
Introduction
The Postal Service is currently working on developing a Comprehensive Transformation Plan
A few months ago, Mr. Reisner and Julie Moore briefed the MTAC Steering Committee on this subject
I would like to give you a brief overview of the topic to ensure you have  an opportunity to provide input on the plan.

## Background

**May 15: GAO recommended the Postal Service prepare a Comprehensive Transformation Plan addressing challenges currently facing the Postal Service.**
**Plan should include:**
**a variety of options**
**a long-term approach**
**consideration of new regulatory frameworks**
**operational, human capital and financial strategies**
**June 14: Senate Oversight Committee**
**specified stakeholder involvement**
**requested submission by end of the year**

**Notes:**
Just a brief background
In April, the GAO put the Postal Service on its high reisk list  for Transformation
At a subsequent hearing in May, GAO recommended that the Postal Service prepare a Transformation Plan that:
Long term approach, looking out 10 or more years
wasn’t constrained by the currently regulatory framework
In June, the Senate requested a submission at year end and emphasized that stakeholder involvement was key 

## Future Challenge

***Rate increases and productivity will not be enough***
***to close the gap between these diverging lines.  ***

- 1.7 million new deliveries annually

- Health Care, Retirement and Compensation Cost Increases

- Economic Decline

- Increasing Competition

**Notes:**
The key challenge, simply stated, is that the Postal Service’s costs are rising faster than its revenues.  
Recent events have only exacerbated the problem and risk of rapid volume diversion of our First Class Mail.
Even if we are able to curb this erosion, we cannot continue to fund increasing costs
The major challenge is the increasing fixed cost associated with our growing delivery infrastructure
We must find a way other than rate increases to finance universal service
Thus, we are working on a plan that will Transform the Postal Service

## Transformational Scenarios

**Notes:**
We are looking at strategies that will cover a range of “future visions”
We are developing strategies that will cover our baseline structure -- primarily strategies aimed at reducing costs.
For the mid-term we are looking at how to best price our products and services to meet customer needs.  Increased pricing flexibility is key to becoming a more business-like enterprise.
In the long range, we are examining what type of structural change will be needed to meet the needs of the future.  These potential end-states cover a range from a subsidized government agency to a privatized corporation.
The key question is what this end state should be, and how do we get there.
As part of the planning process, we are asking stakeholders to provide their input.

## Stakeholder Input 

_**OUTLINE FOR DISCUSSION**_
**www.usps.com; keyword: transformation**
_**STAKEHOLDER INPUT**_**Comments accepted via **
**email: transformation@email.usps.gov**
**mailed comments: Julie Moore**
**	****       ****USPS Headquarters **
**	****       ****Room 4011**
**                 ****475 L’Enfant Plaza, SW**
**                 ****Washington DC 20260-1520**

**Notes:**
For more information about our challenges and potential strategies, you can obtain the Outline for Discussion through our website by typing in keyword Transformation
Comments can be sent to the Office of Transformation either through email or via hard copy at the address shown here.
We would very much like to hear from you.