Postal Regulatory 

 Commission

 Strategic and Operational Plan

2008 through 2012

901 New York Avenue NW, Suite 200

Washington, DC 20268-0001

Phone: (202) 789-6887 Fax: (202) 789-6886

nanci.langley@prc.gov | www.prc.gov

ns

Postal Regulatory Commission

Strategic and 

Operational Plan

2008 through 2012

Contents

Chairman’s Message 2

About the Postal Regulatory Commission 4

Mission 

Guiding Principles 

2012 Vision 

Key Strategic Goals 10

Strategic Goal 1  .

Strategic Goal 2  .

Strategic Goal 3  .

Strategic Goal 4  .

Strategic Goal 5  .

Strategic Goal 6  .

Strategic Goal 7  .

Appendix A: Definitions  .

Appendix B: Organization Chart 28
2 | Postal Regulatory Commission

Chairman’s 

Message

My fellow Commissioners and 

I are pleased to present 

the Postal Regulatory 

Commission’s first Strategic 

and Operational Plan for Fiscal 

Years 2008 through 2012. This Strategic and 

Operational Plan outlines our core Mission 

and Vision for the next five years, the key 

Strategic Goals to help us fulfill our Mission 

and Vision, and the Operational Strategies 

to meet our time frame. The Plan outlines

the strategies and activities that the Postal 

Regulatory Commission will use to help 

ensure transparency and accountability of the 

United States Postal Service and foster a vital 

and efficient universal mail system.

The Plan incorporates responsibilities 

established in the Postal Accountability and 

Enhancement Act (PAEA), Public Law 109-435, 

which transforms the Postal Rate Commission 

into the Postal Regulatory Commission (PRC). 

The PAEA strengthens the authority of the 

Commission, changes the method of regulatory 

oversight in many key respects, and provides 

the Commission with enhanced independent 

regulatory oversight to achieve accountability, 

transparency, and efficiency of the operations 

of the United States Postal Service. 
Strategic and Operational Plan 2008–2012 | 3

Following enactment of the PAEA, the 

Commission began exercising its new 

authority and comprehensive oversight of the 

U.S. Postal Service with the goal of ensuring 

transparency, accountability, predictability, 

and responsiveness. The PAEA gave the 

Postal Service greater autonomy to set 

postal rates, while generally limiting average 

rate increases for market-dominant products 

to changes in the Consumer Price Index 

for All Urban Consumers (CPI-U). The law 

now requires the Commission to complete 

a review of new rates for compliance with 

the CPI-U cap within 45 days of filing by 

the Postal Service. To balance the Postal 

Service’s new authorities to set rates and 

introduce new services, the PAEA assigns 

continuing oversight responsibilities to 

the Commission. The law appropriately 

equips the Commission with authority 

to use broad enforcement mechanisms. 

Oversight includes, but is not limited to, 

annual determinations of Postal Service 

compliance with the CPI-U, consideration 

of complaints, and periodic reports on 

Commission operations. Enforcement tools 

include subpoena power, authority to direct 

the Postal Service to adjust rates or take 

other remedial actions, and authority to levy 

fines in cases of deliberate noncompliance 

with applicable postal laws. 

The Plan is designed to guide the Commission 

as it implements the key provisions assigned 

to it under the PAEA. Consequently, this 

plan emphasizes the operational work the 

Commission must accomplish through 

2012. As the Commission carries out its 

responsibilities and duties pursuant to the 

PAEA, we will evaluate our progress and 

performance on the strategic goals outlined in 

this Plan and make appropriate modifications, 

as needed, as new challenges arise to further 

advance the Commission’s mission.

In developing our Strategic Plan, I would like 

to thank Commissioners Acton, Goldway, and 

Hammond, as well as former Commissioner 

Tisdale, the senior leadership team, and 

Commission staff. Their hard work and 

assistance were instrumental in creating this plan 

to guide us through our years of foundational 

work as we serve the American public. 
4 | Postal Regulatory Commission

About the 

Postal 

Regulatory 

Commission

T

he Commission is an independent 

agency that has exercised regulatory 

oversight over the Postal Service 

since its creation by the Postal 

Reorganization Act of 1970. 

Initially, this oversight consisted primarily of 

conducting public, on-the-record hearings 

concerning proposed rate changes, mail 

classification or major service changes, and 

recommending decisions for action by the 

postal Governors.

The Postal Accountability and Enhancement 

Act (PAEA), enacted on December 20, 2006, 

significantly strengthens the Commission’s 

authority to serve as a counterbalance to 

new flexibility granted to the Postal Service 

in setting postal rates. The PAEA requires 

the Commission to develop and maintain 

regulations for a modern system of rate 

regulation, consult with the Postal Service on 

delivery service standards and performance 

measures, consult with the Department of 

State on international postal policies, prevent 

cross-subsidization or other anticompetitive 

postal practices, promote transparency and 

accountability, and adjudicate complaints.
Strategic and Operational Plan 2008–2012 | 5

The PAEA also assigns new and continuing 

oversight responsibilities to the Commission, 

including annual determinations of Postal 

Service compliance with applicable laws, 

development of accounting practices and 

procedures for the Postal Service, review 

of the Universal Service Obligation, and 

assurance of transparency through periodic 

reports. New enforcement tools include 

subpoena power, authority to direct the Postal 

Service to adjust rates and to take other 

remedial actions, and levying fines in cases 

of deliberate noncompliance with applicable 

postal laws. 

The Commission is composed of five 

Commissioners, each of whom is appointed 

by the President, with the advice and by 

consent of the U.S. Senate, for a term of 

six years. The Chairman is designated by 

the President and serves as the head of the 

agency. A Commissioner may continue to 

serve after the expiration of his or her term for 

up to one year. No more than three members 

of the Commission may be from the same 

political party. 

Assisting the Commission is a staff with 

expertise in law, economics, finance, 

statistics, and cost accounting. The 

Commission is organized into four operational 

offices: 

♦ Accountability and Compliance; 

♦ General Counsel; 

♦ Public Affairs and Government 

Relations; and 

♦ Secretary and Administration. 

The Commission maintains an independent 

office for its Inspector General.

See Appendix B for the Commission’s 

organizational structure. 
6 | Postal Regulatory Commission

Mission

Ensure transparency and accountability of the 

United States Postal Service and foster a vital and 

efficient universal mail system. 
Strategic and Operational Plan 2008–2012 | 7

Guiding Principles

The Commission is committed to and operates by the principles of:

♦ Openness;

♦ Stakeholder (public) participation;

♦ Collegiality and multi-disciplinary approaches; 

♦ Timely and rigorous analysis;

♦ Fairness and impartiality;

♦ Integrity; 

♦ Commitment to excellence; and

♦ Merit.
8 | Postal Regulatory Commission

2012 Vision

Five Year view for postal system: The Commission will ensure transparency and 

accountability of the United States Postal Service and foster a vital and efficient postal system 

that includes universal service.

In five years time, the Postal Service will have several years of experience operating under a 

modern rate regulation system. There will be more consistency in postal rates because of a 

predictable ratemaking process as well as transparency and financial accountability across 

postal classes. The public will better understand the Postal Service because of enhanced 

transparency. The Postal Service will be better able to respond to changing market conditions, 

factors, and concerns as identified in the PAEA. The Postal Service will be a responsive service 

provider focused on efficiency and effectiveness. 

Vital and Efficient Universal Mail System Transparency Accountability Predictable Rates Competitive Market Service Oriented
Strategic and Operational Plan 2008–2012 | 9

The role of the Commission in the 

future of the postal system: Over the 

next five years, the Commission will become 

a mature regulator exercising statutory and 

comprehensive oversight of the United 

States Postal Service. We will promote 

transparency, accountability, predictability, 

and responsiveness. 

We will achieve these core objectives and 

inspire the trust of our stakeholders by:

♦ Continuing to utilize strong technical 

expertise to our role as regulator;

♦ Maintaining open communication with all 

stakeholders;

♦ Establishing and implementing rigorous 

methods to assess Postal Service 

adherence to compliance reviews that 

focus on objectives and factors of 

customer service and financial standards;

♦ Creating a consistent and proactive 

reporting mechanism;

♦ Operating by our guiding principles; and 

♦ Achieving our strategic goals.

Over the next five years, the Commission 

will establish and refine rules, regulations, 

and procedures to fully meet the intent and 

spirit of the PAEA. The early years of work 

will be dedicated to development of the 

rules, regulations, and procedures to comply 

with the PAEA and to plan and perform 

appropriate studies for the U.S. Congress. 

As these regulations and procedures are 

employed, they will be assessed and refined in 

partnership with stakeholders, moving toward 

a more streamlined mail system coupled with 

effective oversight. 

The Commission will communicate to the U.S. 

Congress, and other stakeholders, concerning 

Commission operations through a series of 

annual and periodic reports, which includes: 

♦ Annual Report to the President and the 

Congress;

♦ Annual Compliance Report;

♦ Report to President and the Congress on 

universal postal service and the postal 

monopoly in the United States;

♦ Report on rates (costs) for periodicals; 

jointly with the Postal Service;

♦ Five year review to determine if 

the institutional cost contribution 

requirements specified in the rule 

applicable to competitive products 

should be retained in its current form, 

modified, or eliminated (section 3633(a)

(3)); and 

♦ Ten year review of the system for 

regulating rates and classes for marketdominant products to determine whether 

the system is achieving objectives of the 

PAEA.
10 | Postal Regulatory Commission

Goal 1 - Modern Rate and Product 

Regulation

Establish and maintain a predictable, 

transparent, and effective system of rate and 

product regulation.

Goal 2 - Service Performance 

Evaluation

Ensure appropriate and transparent United 

States Postal Service performance standards 

and measurements to promote an efficient, 

effective and responsive mail service.

Goal 3 - Financial Accountability and 

Compliance

Ensure transparent, accurate, and informative 

United States Postal Service data reporting 

sufficient for evaluation of financial 

performance. 

Goal 4 - Complaint Process Ensure United States Postal Service 

accountability through a fair and open public 

complaint process that provides appropriate 

and timely resolution.

Goal 5 - Public Participation and 

Government Relations

Ensure the Commission is visible and readily 

accessible to all stakeholders.

Goal 6 - Human Capital Enhance a system that fosters recruitment, 

development, and retention of a talented and 

skilled workforce.

Goal 7 - Program Integration and 

Support

Utilize latest technology, operational systems, 

and organizational infrastructure in achieving 

Commission goals.

The remainder of the plan describes the operational strategies to achieve each Strategic Goal. 

Key Strategic Goals

The Strategic Goals describe the primary focus areas that will enable the Commission to meet 

its five-year vision. Both internal and external priorities are described. 
Strategic and Operational Plan 2008–2012 | 11

Modern Rate and 

Product Regulation

Establish and maintain a predictable, transparent, and 

effective system of rate and product regulation.

The Postal Accountability and 

Enhancement Act of 2006, (PAEA), Public 

Law 109-435, charges the Commission 

with establishing, within 18 months of 

PAEA enactment, a modern system for 

regulating rates and classes for marketdominant and competitive products. The 

system will be designed to achieve the 

objectives of the PAEA, including to: 

♦ Maximize incentives to reduce costs and 

increase efficiency;

♦ Create predictability and stability in rates;

♦ Maintain high quality service standards;

♦ Allow the United States Postal Service 

pricing flexibility;

♦ Ensure adequate revenues, including 

retained earnings, to maintain financial 

stability;

♦ Reduce the administrative burden 

and increase the transparency of the 

ratemaking process;

♦ Establish and maintain a just and 

reasonable schedule for rates and 

classifications; and

♦ Allocate the total institutional costs of the 

Postal Service appropriately between 

market-dominant and competitive 

products. 

Short-term Operational Strategies

1. Develop a system for regulating rates 

for market-dominant and competitive 

products. Refine and augment the new 

modern system for regulating rates and 

classes for market-dominant products, 

which was established in response to 

the PAEA in October 2007. 

2. Develop a method to examine workshare 

discounts by June 2008. Establish 

a method to ensure that workshare 

discounts do not exceed the cost that 

the United States Postal Service avoids 

as a result of the workshare activity, 

except under certain circumstances as 

specified in the PAEA. 

3. Establish regulations and procedures 

by June 2008 for the market testing of 

Postal Service experimental products; 

establish a process for ascertaining 

small business concerns; and establish 

procedures for the appropriate 

administration of market tests.

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12 | Postal Regulatory Commission

4. Refine and augment the October 2007 

regulations regarding competitive 

products. The regulations will prohibit 

the subsidization of competitive products 

by market-dominant products; ensure 

that each competitive product covers 

its costs attributable; and ensure that all 

competitive products collectively cover 

an appropriate share of the institutional 

costs of the Postal Service.

5. Develop a method to examine 

Negotiated Service Agreements by June 

2008. Establish a method to ensure 

that such agreements improve net 

financial position or increase the overall 

contribution to the institutional costs of 

the Postal Service; or enhance functional 

performance; and do not cause 

unreasonable harm to the market place. 

6. Assess and refine the rules, regulations, 

and systems established and revise as 

needed over the course of the first year 

of operation.

7. Develop and submit first annual Report 

to Congress (section 3651).

8. Conduct first five-year review to 

determine if the institutional costs 

contribution requirement, specified in the 

rules applicable to competitive products, 

should be retained in its current form, 

modified, or eliminated. 

9. Consider all relevant circumstances, 

including the prevailing competitive 

conditions in the market, and the degree 

to which any costs are uniquely, or 

disproportionately associated with any 

competitive products (section 3633 (b)).

Ongoing Operational Strategies

1. Review and evaluate Postal Service 

Proposals to move products between 

market-dominant and competitive 

products.

2. Categorize Postal Service Products.

3. Annually determine Postal Service 

compliance.

4. Evaluate Workshare Discounts.

5. Examine Negotiated Service 

Agreements.

6. Analyze Market Test Information.

7. Regulate Market Tests.

8. Conduct a review every five years 

to determine if the institutional costs 

requirement specified in the regulations 

should be retained in its current form, 

modified, or eliminated.

9. Ten years after the date of the enactment 

of PAEA, review the system for regulating 

rates and classes for market-dominant 

products to determine if the system is 

achieving the objectives of the PAEA 

(section 3622 (d)(3)). 

Measurement Indicator:

NOTE: Congress directed the Commission 

to design a new regulatory framework for 

rate adjustments for market dominant and 

competitive postal products. Only after a 

baseline has been established with historical 

data will the Commission be in a position 

to determine the functionality of these 

regulations. The Commission will continue 

to analyze and receive feedback on the 

operations of the regulatory framework. 

1.1 Established regulations eights months 

ahead of statutory requirement Pub. L. 109-

435, 120 Stat. 3198.

1.2 Review of proposed rate change issued 

within 45 days. Develop baseline data 

for improving the accuracy, consistency, 

security, and completeness of the Postal 

Service’s data. The number of database 

errors, including omissions of relevant 

data, will measure quality of the data.

1.3 Conduct focus groups every three years to 

ascertain satisfaction on the regulations.
Strategic and Operational Plan 2008–2012 | 13

Service Performance 

Evaluation

Ensure appropriate and transparent United States Postal 

Service performance standards and measurements to 

promote an efficient, effective and responsive mail service. 

The Postal Accountability and 

Enhancement Act of 2006, (PAEA), Public 

Law 109-435, requires the Postal Service 

to establish a set of service standards for 

market-dominant products within twelve 

months of the PAEA and in consultation 

with the Commission. The standards 

will be designed to achieve the following 

objectives: 

♦ Enhance the value of postal services to 

both senders and recipients; 

♦ Preserve regular and effective access 

to postal services in all communities, 

including those in rural areas or where 

post offices are not self-sustaining; 

♦ Assure Postal Service customers 

delivery reliability, speed, and frequency 

consistent with reasonable rates and 

best business practices; and 

♦ Provide a system of objective 

performance measurements for each 

market-dominant product as a basis 

for measurement of Postal Service 

performance. 

Short-term Operational Strategies

1. Consult on development of service 

performance standards for marketdominant products to be adopted 

by the Postal Service by December 

2007. Refine and augment the service 

performance standards for marketdominant products, which were 

established in December 2007, in 

response to the PAEA.

2. Evaluate and approve a system for 

measuring Postal Service achievement 

of service standards. Define what to 

measure and the level of expected 

performance. Make a determination on 

the extent to which the Postal Service 

must use an external measurement 

3. system or give permission to use internal 

measurement systems by December 

2007.

4. Consult on development of service 

performance goals, to be adopted by 

the Postal Service by June 2008, which 

achieve the December 2007 service 

performance standards.

2

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14 | Postal Regulatory Commission

5. Consult with the Postal Service on 

the development of transportation 

and processing facilities network plan 

by June 2008, which strides towards 

achieving the adopted serviceperformance goals.

6. Develop an annual review process and 

develop reporting mechanisms for the 

annual Compliance Report by June 

2008.

7. Develop and submit the first annual 

Report to Congress (section 3651).

Ongoing Operational Strategies

1. Determine Postal Service compliance 

annually.

2. Enforce compliance determinations.

3. Review, evaluate, and develop an 

opinion on Postal Service proposals for 

changes in the nature of postal services.

Measurement Indicator:

2.1 Concluded the initial consultation of modern 

service standards by December 2007.

2.2 Conclude by June 30, 2008, consultation 

with the Postal Service on a plan to 

Congress on establishing the performance 

goals and network realignment. 

2.3 Evaluate data every six months to identify 

potential problem areas.

2.4 Monitor on a regional basis adherence 

in achieving the service performance 

standards.

2.5 Conduct user satisfaction surveys to gauge 

service performance – after the first full year 

of implementation.

2.6 Measure the time necessary to correct a 

delivery problem.

2.7 Measure the cycle time to correct customer 

problem.
Strategic and Operational Plan 2008–2012 | 15

The Postal Accountability and 

Enhancement Act of 2006, (PAEA), Public 

Law 109-435, requires the expansion of 

current annual cost, revenue, and volume 

data requirements to support annual 

analysis of worksharing discounts and 

provide greater financial transparency 

through reporting and analysis of the type 

required of businesses with stakeholders. 

This will require an expanded set of rules 

for the periodic submission of appropriate 

data to the Commission. The Commission 

has been given subpoena power to 

ensure required data are submitted in a 

timely manner. In turn, the PAEA requires 

the Commission to issue an annual report 

based on these data.

Short-term Operational Strategies

1. Issue updated periodic data reporting 

rules to be consistent with sections 3652 

and 3654 of the PAEA by December 

2007. Preserve transparency achieved 

under the Postal Reorganization Act 

of 1970 regarding costs, revenue, and 

volumes which include worksharing. 

Incorporate Commission decisions on 

cost attribution and distribution from the 

Docket No. R2006-11 rate case pending 

modification through rulemaking. Reflect 

the additional financial and Securities 

and Exchange Commission (SEC) type 

reporting requirements.

1 This is the last rate case under the old regulations.

Financial Accountability 

and Compliance

Ensure transparent, accurate, and informative United States 

Postal Service data reporting sufficient for evaluation of 

financial performance.

3

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16 | Postal Regulatory Commission

2. Develop a system for modifying the 

periodic data-reporting procedures 

and cost-attribution methods. Issue 

rules defining procedures for initiating 

modifications. Apply procedures to 

outstanding cost issues such as the 

attribution of City Carrier costs and the 

PAEA required payments for retiree 

health and pension benefits. Establish 

a system for review and modification 

of all cost segments, components, 

and cost pools used for attribution and 

worksharing cost avoidance 

calculations.

3. Report on Universal Service Obligation 

costs to determine cost of services that 

the Post Service would not offer, if not 

required by law.

4. Review and modify accounting and 

auditing practices and regulations to be 

followed by the Postal Service by June 

2008. Review recommendations from 

the Secretary of Treasury; establish 

rules to specify accounting practices 

and principles; and specify the annual 

and periodic data reports that the Postal 

Service should submit.

5. Obtain appropriate SEC-type reports 

from the Postal Service by September 

2008.

6. Evolve a segment reporting system 

appropriate for the Postal Service by 

December 2009. Examine applicability 

of current CRA categories; consider 

applicability of the Postal Service list of 

products; consider SEC criteria.

7. Establish rules for determining the 

assumed Federal income tax on the 

Postal Service’s competitive products 

income by September 2008.

8. Begin by June 2008, the yearly process 

of reviewing steps taken by the Postal 

Service to become Sarbanes-Oxley 

(SOX) compliant by 2010.

9. Develop and submit first annual Report 

to Congress (section 3651).

10. Provide a report to Congress on 

effectiveness of the PAEA by December 

2011.

Ongoing Operational Strategies

1. Determine Postal Service compliance.

2. Report findings through an annual 

Determination of Compliance report. 

3. Enforce compliance determinations.

4. Assess effectiveness of Commission 

rules and regulations in achieving the 

objectives and factors of the PAEA and 

report annually to Congress.

5. Review and evaluate Postal Service 

financial data.

Measurement Indicator:

3.1 Develop accounting regulations for the 

Postal Service by December 19, 2008.

3.2 Evaluate the periodic data-reporting to 

determine the relevancy of the 

information. The Commission’s Annual 

Compliance Report will contain an 

explanation of findings.

3.3 Develop baseline data for improving the 

accuracy, consistency, security, and 

completeness of the Postal Service’s 

Sarbanes Oxley data. The number of 

database errors, including omissions of 

relevant data, will measure quality of 

the data.
Strategic and Operational Plan 2008–2012 | 17

Complaint Process

Ensure United States Postal Service accountability through 

a fair and open public complaint process that provides 

appropriate and timely resolution.

The Commission is committed to 

developing a fair and impartial process 

for the resolution of complaints brought 

against the United States Postal Service 

concerning its adherence to postal 

policies as prescribed in the Postal 

Accountability and Enhancement Act of 

2006, (PAEA), Public Law 109-435.

Short-term Operational Strategies

1. Establish rules for initiating complaints.

2. Develop procedures for a formal 

complaint system that provides due 

process to complainants and the 

Postal Service. Include provisions for 

assuring participation of an officer of the 

Commission to represent the interests of 

the general public. 

3. Establish a referral process to facilitate 

Postal Service assistance for individual 

or local problems.

Ongoing Operational Strategies

1. Maintain a transparent and equitable 

complaint process for the public 

concerned with Postal Service 

adherence to PAEA’s policies.

2. Establish methods for prompt review of 

complaints and speedy administration 

thereof.

3. Develop precedents for investigating 

potential problem areas raised in 

complaints.

4. Issue prompt, clear decisions that 

resolve issues fairly and provide 

meaningful guidance for future behavior.

5. Identify patterns in appeals and/

or complaints and order appropriate 

remedies and achieve compliance.

6. Review appeals of post office closings 

(section 404(d)(5)).

4

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18 | Postal Regulatory Commission

Measurement Indicator:

4.1 Issue timely decisions within 90 days.

4.2 Determine the percentage of written PRC 

decisions which were either not appealed 

or, if appealed, affirmed by Federal Court.
Strategic and Operational Plan 2008–2012 | 19

The Commission promotes its visibility, 

transparency, and accessibility by 

educating, responding to, and interacting 

with the general public, mailers, the U.S. 

Congress, federal agencies, and the media. 

Short-term Operational Strategies

1. Enhance government relations function 

through proactive outreach and 

relationship building with the Congress, 

the Executive branch, Federal, State 

and local governments, and postal 

stakeholders.

2. Develop a comprehensive plan and 

strategy for outreach to the public and 

media. 

3. Refine editorial appearance standards 

and maintain consistent messaging 

and branding for public documents and 

website.

4. Establish and coordinate a system 

to respond to public and consumer 

inquiries and correspondence.

Ongoing Operational Strategies

1. Identify legislative and public affairs 

issues.

2. Review and modify the content of the 

Commission’s website as necessary.

3. Perform outreach with the general 

public, the U.S. Congress, federal 

agencies, and the media about the 

activities of the Commission.

4. Assist in the development of annual 

reports, including, but not limited 

to, the annual Compliance Report in 

consultation with the other entities of the 

Commission.

5. Track and manage public inquiries and 

correspondence.

6. Track, classify, and maintain a record of 

“informal complaints” which do not rise 

to the level of formal complaints.

7. Build on and maintain media 

relationships.

8. Build on and maintain effective working 

relationships with the Congress, the 

Executive Branch, and the United States 

Postal Service.

Public Participation and 

Government Relations

Ensure the Commission is visible and readily accessible 

to all stakeholders. 

5

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20 | Postal Regulatory Commission

Measurement Instrument:

5.1 Determine the number of Commission 

personnel participating in agency, state, 

regional, national, international, and 

industry leadership roles.

5.2 Conduct a number of public comment/

educational forums with public 

participation. Benchmark polling of public 

awareness as resources permits.

5.3 Track monthly the number of times the 

PRC website is accessed.
Strategic and Operational Plan 2008–2012 | 21

Human Capital

Ensure a system that fosters recruitment, development, and 

retention of a talented and skilled workforce.

The Commission recognizes that its 

most valuable asset is its employees. 

The Commission is committed to a merit 

based human resources program that 

ensures an exemplary and responsive 

workforce which continues our expert role 

as a recognized leader in the industry. 

Short-term Operational Strategies

1. Create a comprehensive Human 

Capital Plan with clearly defined 

competencies for all positions, which 

are communicated to all Commission 

employees. 

2. Recruit to meet the expanded 

responsibilities of the Commission. 

3. Refine and align the Performance 

Management System with the strategic 

plan. 

4. Develop and implement succession 

planning management system. 

5. Update and clarify human resources 

policies and procedures and rules and 

regulations to ensure a fair, consistent 

and sustainable application of the 

policies.

6. Integrate the Commission’s human 

resources systems into United States 

Postal Service Human Capital Enterprise 

System.

Ongoing Operational Strategies

1. Conduct employee surveys to identify 

opportunities for improvement.

2. Maintain a fair and confidential forum for 

addressing employee concerns.

3. Effectuate agency policy on employee 

rights, benefits, and protections. 

4. Review and update the Human Capital 

Plan, as appropriate, to encourage 

diversity and proper staffing levels, 

and to ensure individual development, 

succession, and training plans are linked 

to job competencies, the mission of 

the Commission, and its performance 

management system.

Measurement Indicator:

6.1 Continue human capital planning by 

ensuring there is a cadre of highly 

skilled employees available for key positions 

through structured planning and training 

activities.

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22 | Postal Regulatory Commission

6.2 Identify the percentage of agency 

positions and core responsibilities 

covered under the Commission’s 

Succession Planning system.

6.3 Identify the percentage of Position 

Description reviewed and updated. 

6.4 Identify the percentage employee with 

Individual Development Plans (IPDs) 

completing continuing education 

classes, training courses, seminars, 

receiving tuition reimbursement and other 

required federal mandates to further 

develop professional expertise.

6.5 Conduct survey to identify improvement 

opportunities.
Strategic and Operational Plan 2008–2012 | 23

Program Integration 

and Support 

Utilize latest technology, operational systems, and 

organizational infrastructure in achieving Commission goals. 

Program Integration and Support 

provides systems for the efficient, 

effective and secure fulfillment of the 

Commission’s responsibilities. These 

include the strategic use of internal 

databases and systems, websites, 

and other infrastructure technology 

systems based on best practices and the 

Commission’s own business procedures 

to allow the Commission to efficiently 

accomplish its mission.

Short-term Operational Strategies

1. Initiate a strategic process from a 

top down approach to create an 

Enterprise Architecture structure of the 

Commission’s Information Technology 

(IT) infrastructure.

2. Develop and maintain a Document 

Management and Tracking system for 

internal Commission documents and 

workflow. Restructure internal databases 

to meet the new data requirements from 

the PAEA, and to simplify Commission 

workflow processes. 

3. Redesign and maintain currency of the 

Commission’s website.

4. Modernize financial controls to clarify 

the approval process, monthly variance 

forecasting, and review of internal audits.

5. Develop and maintain the Commission’s 

budget and fiscal processes.

Ongoing Operational Strategies

1. Enhance IT security policies, practices, 

and enforcement procedures.

2. Enhance purchase, travel and training 

processes and procedures.

3. Develop and refine processes and 

procedures for annual budget.

4. Maintain records disposal procedures 

and transfer official Commission records 

to the National Archives as scheduled.

5. Ensure equipment and facilities are 

adequate, safe, and secure.

Measurement Indicator:

7.1 Complete the redesign of the existing 

website by March 31, 2008.

7.2 Create a Content Management System 

for ongoing management of content/

documents of the website by September 

30, 2008.

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24 | Postal Regulatory Commission

7.3 Reprogram the current Docket’s 

database to increase its capacity and 

flexibility to handle other Commission 

documents, and display contents on the 

website by December 31, 2008.

7.4 Develop and implement an Enterprise 

Architecture structure by March 31, 2009.

7.5 Identify the percentage of the 

Commission’s in-house Support Help 

Desk calls successfully completed within 24 

hours.

7.6 Implement an information technology 

security plan including an enhanced 

password and desktop configuration 

policy by June 30, 2008.

7.7 Identify the percentage of implementation 

of e-Government initiatives completed.

7.8 Submit Federal Register notices 

electronically to the Government Printing 

Office by December 31, 2008.
Strategic and Operational Plan 2008–2012 | 25

Appendix A: Definitions

The strategic plan is organized using the following terms:

Mission: Brief statement of the organization’s core purpose – what the 

organization is about and why it exists. 

Guiding Principles: What the organization is committed to; how the organization 

operates internally and externally. 

Vision: A compelling, meaningful and clear description of how the 

organization wants to operate in five years and the benefits stakeholders are receiving from the services provided. Defines “where” 

we are going.

Strategic Goals: The key focus areas that will enable the Commission to meet the 

five-year vision. Defines “what” should be achieved in order to 

meet the vision and mission. Both internal and external priorities 

are established.

Operational 

Strategies:

Defines the methods and initiatives the Commission will undertake 

to meet the strategic goals. The strategies are organized into two 

categories: Short-term Strategies, which are time critical, and 

Ongoing Strategies, which will be achieved over time. Defines 

“how” we will get there.

Technical Terminology as defined by the Postal Accountability and 

Enhancement Act of 2006, Public Law 109-435 (PAEA):

Competitive Products: Products that are not market-dominant. The initial competitive 

product list includes: Priority Mail; Expedited Mail; Bulk Parcel 

Post; and Bulk International Mail. This list is subject to any 

changes the Commission may authorize under the PAEA section 

3642.

Consumer Price An index prepared and published by the Bureau of Labor Statistics 
26 | Postal Regulatory Commission

Index (CPI-U): (BLS) of the Department of Labor that measures the average 

change over time in the prices paid by urban consumers for a 

market basket of consumer goods and services.

Costs Attributable: The direct and indirect postal costs attributable to products 

through reliably identified causal relationships.

Market-Dominant 

Products:

Products for which the Postal Service has market power to set 

prices substantially above costs without risk of losing business 

to others. The initial market-dominant products are: FirstClass Mail letters and sealed parcels; First-Class Mail cards; 

Periodicals; Standard Mail; single-piece Parcel Post; Media Mail; 

Bound Printed Matter; Library Mail; Special Services; and singlepiece International Mail. This list is subject to any changes the 

Commission may make under PAEA section 3642.

Market Tests: The offering of products or services on a limited basis to 

determine if they will be successful prior to commitment of 

significant expenditures.

Negotiated Service 

Agreement:

A written contract, to be in effect for a defined period of time, 

between the Postal Service and a postal mailer that provides 

for customer-specific rates or fees and/or terms of service in 

accordance with the terms and conditions of the contract. 

Non-Postal Services: Any service provided by the Postal Service as of January 1, 

2006, which is not a postal service defined as the delivery of 

letters, printed matter, or mailed packages, including acceptance, 

collection, sorting, transportation, or other ancillary functions.

Postal Monopoly: The monopoly on letter mail granted to the Postal Service by 

Congress. Generally, it provides financial support for the universal 

service obligation. 

Service Performance 

Standards:

Standards developed by the Postal Service in consultation with 

the Commission defining the Postal Service’s expectations for 

timely service performance. 

Universal Postal 

Service or Universal 

Service Obligations: 

Generally represents the minimal level of service to be provided to 

all U.S. citizens imposed on the Postal Service by Congress.

Workshare Discounts: Rate discounts provided to mailers for their preparation and/or 

processing of mail such as presorting, pre-barcoding, handling or 

transportation of mail.
Strategic and Operational Plan 2008–2012 | 27

Other Terminology included in the Strategic and Operational Plan:

Sarbanes-Oxley: The Sarbanes-Oxley Act (Public Law 104-204) was enacted 

in 2002 to improve the integrity of corporate governance and 

disclosure for companies doing business in the United States 

by providing a series of guidelines on governance and reporting 

standards. 

Securities Exchange 

Commission (SEC):

The U.S. Securities Exchange Commission is a Federal agency 

with the mission to protect investors, maintain fair, orderly, 

and efficient markets, and facilitate capital formation. The SEC 

regulates corporate financial records and provides penalties 

for their abuse. To that end, the SEC requires registered public 

companies to provide periodic accounting reports and evaluates 

them for data integrity and transparency. The PRC has been given 

a similar role in evaluating the financial data of the Postal Service.

Segment Reporting 

System:

System to be designed by the Commission guiding how the 

Postal Service shall report financial data across various market 

segments.

Universal Postal Union: Established in 1874, the Universal Postal Union (UPU) is the 

primary forum for cooperation between postal-sector players 

and helps to ensure a truly universal network of up-to-date 

products and services. The UPU fulfills an advisory, mediating 

and liaison role, and renders technical assistance where needed. 

It sets the rules for international mail exchanges and makes 

recommendations to stimulate growth in mail volumes and to 

improve the quality of service for customers.
28 | Postal Regulatory Commission

Appendix B: Organization Chart

Dan Blair,

Chairman

Tony Hammond,

Commissioner

Mark Acton,

Commissioner

Ruth Goldway,

Commissioner

Vacant,

Commissioner

Office of the 

General Counsel

Office of the 

Secretary & 

Administration

Office of 

Accountability 

& Compliance 

Office of 

Public Affairs and

Government 

Relations

Office of the 

Inspector General

§ 505 Officer of the Commission 

representing the general public 

The PRC shall designate an 

Officer of the Commission in all 

public proceedings who shall 

represent the interests of the public 

POSTAL REGULATORY COMMISSION

901 New York Avenue NW, Suite 200

Washington, DC 20268-0001

Phone: (202) 789-6887 Fax: (202) 789-6886

www.prc.gov