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Strategic Transformation Plan 2006—2010 2007 Update Strategic Transformation 2007 Update January 30, 2008

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Strategic Transformation Plan 2006— Update  How the law impacts strategy  Update and reinforce goals  Refine key strategies  Set the stage for Update

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Page 1: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

Strategic Transformation2007 Update

January 30, 2008

Page 2: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

Start with vision – realistic but ambitious

Break it down: priorities

Commit to aggressive targets

Sustain change

Transformation

Page 3: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

How the law impacts strategy

Update and reinforce goals

Refine key strategies

Set the stage for 2013

2007 Update

Page 4: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

2007 Update Generate Revenue

Increase Efficiency

Improve Service

Create a Customer-Focused Culture

Enhance Sustainability

Page 5: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

Add value, improve relevance: Intelligent Mail

Collaborate on new applications

Simplify acceptance, expand access Build on domestic to grow international Strengthen outreach

Generate Revenue

Page 6: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

Reinforce the value of mail.

Responsive to customer needs.

Generate Revenue

Page 7: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

Flats sequencing Expand standardization Efficient, customer-focused

network Streamline processes ─ beyond

operations

Increase Efficiency

Page 8: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

Accelerate existing efforts: >$1 billion annual savings.

Costs under CPI by class.

Increase Efficiency

Page 9: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

Quality and consistency at all access points

Updated standards, externally-validated service measurement

Cut UAA in half. Improve addresses and lists.

Move to total mail visibility

Improve Service

Page 10: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

Use data to target opportunity, reduce variability, and drive continuous improvement.

Improve Service

Page 11: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

Create a Customer-Focused Culture Develop and sustain skills

Minimize distractions

Align compensation and recognition with results

Page 12: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

Align to new technologies and evolving markets

Engagement to ensure viability for future generations

Create a Customer-Focused Culture

Page 13: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

Improve understanding of the benefits of mail

Improve address and list quality Help customers go “green” Expand recycled and recyclable products Reduce fuel use. Reduce energy use in

facilities by 20%

Enhance Sustainability

Page 14: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

Build a conservation culture.

Partner with customers, suppliers, and government.

Enhance Sustainability

Page 15: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

2009 2010 2011 2012 2013

What’s Next?

Page 16: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

What do you see as growth opportunities?

Where does your business need to be in 5 years? How can we help get you there?

How do we work together to get new customers using mail?

We need your thoughts . . . 2013

Page 17: Strategic Transformation Plan 20062010 2007 Update Strategic Transformation 2007 Update January 30, 2008

Strategic Transformation Plan 2006—20102007 Update

Questions?

Your comments questions

ideas

Transformation @usps.gov