Slide 1: Vision 2013
Five-Year Strategic Plan
2009-2013
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
Welcome.
Thank you for the opportunity to share the future direction of the Postal Service.  The goal of this presentation is to provide a good understanding of our approach and the main elements of the Strategic Transformation Plan, Vision 2013. 

Slide 2: Purpose and Focus
* Message to stakeholders
* Strategies for long-term success
* All about the customer
* Where we need to be
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
We are required, under Gov’t Performance Result Act (GPRA), 
to issue a new plan ever three years.
This provides us with an opportunity to speak to the vast array of stakeholders. 
It defines what strategies we’re following long term.  But all of these strategies must be grounded in the present.
We talk frequently about the importance of balance . . .  about keeping our eye on the ball ahead of us, 
while moving to adapt to a future that’s likely to be very different from what we’ve been used to.
I think you’ll agree that long-term changes will require a culture change.  We need to incorporate strategies built around customers and the importance of growth.  The plan is high level.  You won’t find a lot of tactics.
Instead, it presents a picture of where need to be.  It might be best to think of Vision 2013 as set of core principles.

Slide 3: Background
* Input from many stakeholders
- Began with NEC 2007
- Internal and external
* Broad consensus
- We know what needs to be done
- Faster. . . Internet . . . more agile . . . take risks
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
A little background . . .  
We asked for ideas about revenue . . . efficiency . . . and changing our culture at our National Executive Conference
last year. Later, Officers went through a similar exercise -- what we need to do to succeed . . . and what we need to
stop doing. We reached out to others, too:  Mailers Technical Advisory Committee (MTAC), Unions, PCCs and management associations.
The feedback was consistent:  “We know what must be done . . . We can’t wait . . .  We have to get focused and move!”
Vision 2013 starts the distillation of what you said. 

Slide 4: Overview
* Building on a Strong Foundation
* Mission does not change
* Strong brand
* Still bind the nation together
* An engine of business growth
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
We’re not starting from scratch.  We’re building on a solid base – years of focus on service and efficiency improvement.
Compared with 2002, we deliver to 10M more delivery points using 150K fewer employees.
Service and satisfaction are better than ever.  We cut costs by more than $20B.
Our mission hasn’t changed.  To provide trusted, affordable universal service.  
Our brand remains strong.  It’s our job to make sure it stays relevant.
And this is worth repeating – especially now:  we help keep Americans connected.  And we help businesses grow.

Slide 5: Overview
Invest in Continuous Improvement
- New advances in service measurement 
and improvement
- Still much to gain from automation and standardization (FSS)
- Making mail Intelligent
- Flexible networks
- Customer-driven products & pricing
- Performance-based culture
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
Part of that strong foundation is that we’re committed to investing in continuous improvement strategies.
Our success comes from doing “first things first.” 
The plan makes it clear that we’re not deviating from what we laid out previously in the Strategic Transformation Plan. 
We have a wealth of new data . . .  Service measurement includes all market-dominant products . . . 
There’s still plenty to gain from automation and standardization – especially with Flats Sequencing System (FSS). .
 … value stream mapping . . . data for more efficient staffing.
Intelligent Mail will redefine how people think about mail. 
Our networks will be more flexible.  Changes in volume are a challenge, but also an opportunity to become more efficient
 . .  Think of the impact of FSS on space, retail, etc. 
We’re already taking advantage of pricing flexibility to better tailor our products.
And we’re offering more ways to buy and use our products. 
And we’ll continue to eliminate distractions in the workplace, so employees can focus on customers and building the business.

Slide 6: Challenging Times
* Volume and revenue declines
* More dependent on ad mail
* Costs rising
* Gap expected to increase
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
But our present challenges have more to do with what’s occurring outside the Postal Service.
Even before the Wall Street meltdown, we were seeing a fundamental change in the economy.
Technology . . . Competition . . . continual pressure on costs – they’re all changing how people do business.  
Fewer bills, statements, and payments . . .and a different, less profitable mail mix.
We’re much more dependent on advertising.  It’s a discretionary expense and much more sensitive to changes in the economy.
Most of our prices are capped at inflation . . . but many of our costs are not.
Costs for paper and other resources are skyrocketing, too . . . making mail a more expensive proposition. 
Unless we make changes, the gap between revenue and costs will only get bigger.
 
Slide 7: More Stops...Less Mail
Image of a chart, depicting mail volume declines from 2000 to 2008.  In 2000, there were 1,788 pieces per delivery point per year.  In 2008, there were 1,579 pieces per delivery point per year.
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Chart Data Table:
More Stops, Less Mail		
Date 2000	Volume per Delivery Point 1,788
Date 2001	Volume per Delivery Point 1,760
Date 2002	Volume per Delivery Point 1,696
Date 2003	Volume per Delivery Point 1,665
Date 2004	Volume per Delivery Point 1,684
Date 2005	Volume per Delivery Point 1,703
Date 2006	Volume per Delivery Point 1,691
Date 2007	Volume per Delivery Point 1,661
Date 2008	Volume per Delivery Point 1,579
Slide Notes:
Because we operate a national network, most of our costs — such as a carrier’s stop at every address,
every day — are fixed, regardless of volume.  Our network continues to grow even if mail volume doesn’t.
That means fewer pieces per stop . . . almost 10 percent fewer since 2002.
It also has meant less revenue per stop . . . 

Slide 8: More Stops...Less Mail
Image of a chart, depicting mail revenue declines from 2000 to 2008.  In 2000, there was $664 in revenue per delivery point per year.  In 2008, there were $562 in revenue per delivery point per year.
Chart Data Table:
More Stops, Less Mail		
Date 2000	Revenue Per Delivery Point $664 
Date 2001	Revenue Per Delivery Point $647 
Date 2002	Revenue Per Delivery Point $634 
Date 2003	Revenue Per Delivery Point $633 
Date 2004	Revenue Per Delivery Point $627 
Date 2005	Revenue Per Delivery Point $596 
Date 2006	Revenue Per Delivery Point $589 
Date 2007	Revenue Per Delivery Point $585 
Date 2008	Revenue Per Delivery Point $562 
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
. . . about a 14% decline in revenue.
This isn’t a business model that’s sustainable over the long term.

Slide 9: Customers in 2013
* U.S. population grows by about 30 million
* Consumers with more control over marketers' messages
* Traditional ways to attract customers disrupted by technology and demographics
* Social and mobile networks will increase and evolve
* Sustainability will be a basic part of business practice
* Small business more integrated into global commerce
* E-commerce may slow but volume will still double from today
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
Looking at external trends  --  the market we’ll be serving in a few short years will be very different.
For starters, there will be more of us -- 30 million more by 2013,   and that’s a conservative estimate.
That means more deliveries.     It could also mean more customers and more revenue.
Consumers will have even more control over the messages they receive from business. 
Technologies like “DVR time-shifting” to skip TV commercials are already revolutionizing advertising. 
Social networks like Facebook means more of us will be getting information from each other than from Madison Avenue.
E-commerce will continue growing, if a little more slowly. 
Small businesses will continue to expand and, increasingly, with the help technology will sell to a global market.
And sustainability will be here to stay – a fundamental part of standard business practice.

Slide 10: Viable Postal Service for Future Generations
Image of a building with a triagular roof, three pillars, and a foundation.  On the roof is the phrase
"Viable Postal Service for Future Generations Affordable Universal Service".
On the left pillar of the building image are displayed the words Focus on What Matters Most to Customers
On the center pillar of the building image are displayed the words Leverage Our Strengths
On the right pillar of the building image are displayed the words Embrace Change
At the bottom foundation of the building image are displayed the words "Strong Foundation"
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
Vision 2013 is designed to have a simple message and a simple structure.  We’ve built a solid foundation . . . 
And we’re committed to the long-term.
. . . We’re committing to doing what’s necessary to ensure a strong, viable postal service for future generations . . .
 . . . to remain viable and keep mail relevant.  We need to meet customer needs to grow revenue.
That’s why the first of our three key strategies is Focus on what matters most to customers . . . 
We have incredible assets – our network, our people, and information about the mail.
We need to take full advantage of all that we have . . .  Leverage our strengths.
To grow we must do things differently.  That means new solutions that meet the needs of tomorrow’s customers.
This will require that we Embrace change . . . 
. . . Using new technology, new tools, and new approaches wherever they help us move more quickly, expand our markets,
and increase profit.

Slide 11: Focus on What Matters Most to Customers
Image of USPS customers using our products such as Priority Mail, P.O. Boxes, and Express Mail
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
We think about Vision 2013 as a set of guiding principals.
And the first principal is this — we exist for our customers.  
We have to meet the needs of today’s customers, of course.
However, to sustain the business, we also have to create products and service that meet the requirements of
a changing market.  How to know where to look?  Focus on the things that matter most to our customers.

Slide 12: Focus on What Matters Most to Customers
Start with Customer Needs
Provide Excellent Customer Experiences
Build on Trusted Relationships
Communicate Effectively
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
The plan highlights four areas . . . 
The first, appropriately, is Start with Customer Needs.
. . . provide excellent customer experiences
. . . build on our trusted relationships with customers . . .
and communicate, communicate, communicate.

Slide 13: Focus on What Matters Most to Customers
Start with Customer Needs
Find out what is important to customers
Tailor solutions to specific segments
Use data to make products more relevant, service more responsive
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
The first step in creating value is to get a better understanding of customer needs.
Their needs are changing — fast. We have to listen closely and respond quickly . . . or lose business.  
We have to match our products to the jobs customers need to accomplish. 
We often have information – think of the insight a retail associate gets from customers.
But frequently the information isn’t shared or used to create value.  
We’ll integrate Intelligent Mail data from multiple systems, including creating a more comprehensive
view of our customers and their interactions with us . . .  . . . then tailor solutions to specific customer needs. 
One-size-fits-all is no longer a model that works.  Think of the opportunities in selling to segments we haven’t
paid much attention in the past -- small businesses . . . ethnic markets . . . 
college students . . . and mail recipients. 
Most of our products were designed to meet the needs of the senders.  But there is more that we can offer to 
recipients, including providing more convenient tracking, notification, and redirection services – all revenue opportunities.

Slide 14: Focus on What Matters Most to Customers
Provide Excellent Customer Experiences
Reduce customer effort
Expand access, streamline information
Consistent experiences
Entire value chain
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
Regardless of the customer or the nature of the transaction, we must create a positive, consistent experience -- 
no matter where, when, or how they choose to do business with us. 
(Online, in post offices, on the phone…)
Start by reducing distractions . . . reducing forms . . . and eliminating outdated requirements.
We now offer many more options for access.  Regardless of where, when, or how the customer reaches us, 
we must make sure our information is consistent.  Quality must be high, regardless of the channel.  
This applies to commercial customers as well as consumers.  
For many business, the mailing experience is not limited to us.  They’re frequently need help from list providers, 
designers printers, remittance processors, and others – and every one     can influence the customer impression 
about mail.  We must work with our partners to create an easier, more seamless experience to our customers.  
This is especially important for helping to attract more small businesses to mail. 

Slide 15: Focus on What Matters Most to Customers
Build on Trusted Relationships
Leverage personal contact
Open dialogue about building the business
Safeguard information
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
Trust is the core of our bond with customers.  The relationships that customers have with carriers, postmasters,
retail associates -- and all of us -- are an important platform for creating new business.
We will provide new tools and support to help employees reach out to customers, such as business/customer connect,
rural reach, mail handlers, etc.
Helping customers understand the many ways we can meet their needs will be the job of every employee.
At every level, we need continuous dialogue about what we can do together to grow.
Our work with commercial customers through the Forum, PCC, and other venues is great.
But to gain new markets, we have to expand how we use these relationships in new ways. . . and pay attention to and
listen as well as speak   . . . so we can identify opportunities more quickly.
We’re recognized as one of the most trusted organizations in the country.  That cannot change . . . 
We must continue to lead in protecting the privacy of personal information, the security of mail, and the safety
of customers and employees.

Slide 16: Focus on What Matters Most to Customers
Communicate Effectively
A clear message about the future of mail
Engage all employees
Two-way communications
Incorporate new tools
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
The mail has many stakeholders. . .  but it’s our responsibility to   take the lead . . . to deliver a clear
message about the future of mail.  This has never been more important. 
Our employees are the most passionate advocates for mail. Employee communications will focus on customers and
business results . . .  
We’ll make it clear to everyone how their efforts directly impact our bottom-line.
We will use the full spectrum of communicating tools.  Customer preferences for getting information and giving
feedback are changing.  We’ll change with them.  Blogs, podcasts, and social networking sites offer new ways to
make our conversations more timely and relevant.

Slide 17: Leverage Our Strengths
Image of a postal van on a snowy, winding road.
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
So our first strategy is to focus on customer needs –  on what you say is important. 
How, then, do we create value and new revenue opportunities?
We have unique strengths . . . when put to good use, they’re powerful competitive advantages.

Slide 18: Leverage Our Strengths
Build on the Reach and Capability of the Network
Blue colored icon image of a post office
Use Information to Enhance Products and Performance
Blue colored icon image of four puzzle pieces connected as a square
Empower Employees to Build the Business
Blue colored icon image of a postal employee handling a package
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
Vision 2013 focuses on the potential of three key advantages: 
. . . the reach and capability of our network . . .(post offices, carriers reach)
the powerful new amounts of information we’re gaining from the mail . . .
. . . and the potential of a workforce where everyone is engaged in efforts to build the business.

Slide 19: Leverage Our Strengths
Build on the Reach and Capability of the Network
Blue colored icon image of a post office
Renew Post Office operations
Integrate delivery, Post Offices, and online
Make the most of carrier services
Build on domestic strengths to grow international
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
Let’s start with our network . . . 
Post offices are a huge asset – impossible for anyone to duplicate.  Yet there are things we can do – 
obvious things – to improve quality and efficiency.
We will better integrate our delivery, Post Office, and online services to deliver more convenience . . .
. . . That includes making the most of carrier services to eliminate any unnecessary customer trips or inconvenience. 
We must continue to simplify receiving and returning merchandise.  Many customers still don’t know that they
can do most of their mailing and shipping right from their home or office.  Earlier, I mentioned how small
businesses increasingly selling to a global market.  That’s another opportunity we have. 

Slide 20: Leverage Our Strengths
Use Information to Enhance Products and Performance
Blue colored icon image of four puzzle pieces connected as a square
Create information-based services
Integrate data
Reduce paperwork
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
A few years ago, we would never have included information on a short list of leveragable assets.
But that was before Intelligent Mail and other technologies created the potential of total mail visibility — 
the ability to “see” mail at all points in transit.
Visibility will give customers much greater insight into the effectiveness of their mailings.
The trick now is to quickly use this technology to add new value for customers – and new revenue-producing products.  
New information will continue to drive breakthroughs in operating efficiency.  Our challenge is to integrate the data to turn it to our advantage quickly. 
We must also make full use of technology to cut bureaucracy for customers and employees.  Eliminate needless
paperwork and data collection helps mailers concentrate more on their business. . . . and allows our employees
to focus more on customers.

Slide 21: Leverage Our Strengths
Empower Employees to Build the Business
Blue colored icon image of a postal employee handling a package
Focus on gaining and keeping customers
Equip with the skills, support, and flexibility
Everyone is responsible
Innovation encouraged
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
Another big change with Vision 2013 is how we view the role of our employees.  
Since then, we’ve done a lot to eliminate distractions . . . for example, improving safety and reducing grievances. 
We’re already well on our way to a critical next step:  Creating a top-to-bottom shift to a culture focused on
gaining and keeping customers - to focus on more profitable products.
For it to work, we’ll have to continue to equip our people with the skills, support, and flexibility they’ll need
to compete – and win – in a changing market.
We’ll know we’re succeeding when it’s clear that business success is everyone’s job.
For our part, we have to encourage and reward innovation wherever it exists – among employees, partners, even
customers.

Slide 22: Embrace Change
Image of three photos, a child and her dog using a laptop computer, an iPhone, and a man hiking in the woods with a t-shirt
that spells out "en-vi-ron-mail-ist".  Tagline in the third photo says "make every message you send a green one"
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
Many parts of Vision 2013 are based upon things we are already beginning to do.  
However, to succeed in the future, we’ll also need to enter less familiar territory . . .  and get more comfortable with risk.
In fact, the greatest risk we could take is not changing.  Resisting change is pointless.  It’s better to use it to our advantage.
True, the Internet is diverting a lot of mail.  That’s no reason not to use the Internet more extensively to create new business, or make our operations and customer service world class.
Many people are using environmental arguments to attack mail.  That’s all the more reason why we should assume a leadership role to help the mailing industry become more sustainable.  
We’re not always on the same page with our business partners, our regulator, or even our unions.  But often we are.  And when we have common interests, we can often partner to move faster, spend less, and gain more that we would have gotten working alone.

Slide 23: Embrace Change
Use the Full Potential of the Internet
Green colored icon image of a globe with the letters www on the equator, supported by a hand
Be a Sustainability Leader
Green colored icon image of a leaf within a stamp
Collaborate to Grow
Green colored icon image of a light bulb
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
For many customers, especially younger consumers, the Internet is the first choice for gathering information and performing countless other tasks.  
Staying relevant requires that our services be seamlessly integrated with the Internet, and that we will use the Web more extensively, and in new ways, to build our business. 
We will take a leadership role in adopting environmentally sustainable business practices.  
And we will collaborate to drive change, accelerate innovation, and create new value.
.

Slide 24: Embrace Change
Use the Full Potential of the Internet
Green colored icon image of a globe with the letters www on the equator, supported by a hand
A user-friendly, comprehensive, interactive experience
Integrate mail applications and online services
Innovate to share information and improve access
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
Yes, we need to upgrade usps.com – and we are.  That’s only part of it, however . . .  
With access to the Web and direct-to-the-door service by our carriers, every customer can have a personal Post
Office, including essential postal services on mobile devices.  Business mailers will have a range of interactive
services that offer greater control of their mail and insight into our operations. 
Most messages are now created on computers before they are transformed into print.  Our services will be more
closely integrated with the online development process, providing a more seamless process for creating mail and
getting it delivered. 
There is a wealth of innovation we can tap into.  We will work with innovators to design mailing and shipping
services that complement the Internet . . . and take advantage of the demonstrated effectiveness of mail in
driving customers to Web sites.  We will pursue new ways to build print applications into the Internet experience
 — for example, making it easy for sites to include “mail me” options through the mail. 
Advanced shipping tools and wizards will provide easy-to-use, interactive information for customers.  Blogs and 
social networks will help share best practices and offer suggestions.

Slide 25: Embrace Change
Be a Sustainability Leader
Green colored icon image of a leaf within a stamp
Build a conservation culture
Help customers go green
Engage employees, suppliers, and communities
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
We will build a conservation culture, reduce energy use in facilities and transportation, and extend efficiency
practices to water and other resources. 
We will help our customers “go green,” helping then conserve their own resources, consolidate trips, and expand
use of recycling. 
We’ll engage suppliers, employees, and the communities we serve to adopt environmentally sustainable practices.
We will measure our greenhouse gas emissions to serve as a baseline for a long-term strategy to reduce our carbon
footprint.  Provide an example (UAA).

Slide 26: Embrace Change
Collaborate to Grow
Green colored icon image of a light bulb
Focus current relationships on innovation and improving the relevance of mail
More effective product development and innovation process
Partner to create new value
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
We don’t have the answers yet to how we will do all of this. What we do know is that we can’t do it alone. 
Mailers want improved return on investment . . .  households want relevant information.  We’ll encourage best
practices, and we’ll support new ways to increase response rates and improve address and list quality to ensure
messages have the desired impact.  We’ll support the industry in new approaches that allow households to express
their preferences about mail they receive.
A key goal is to bring new products to market more quickly, to be more agile, and innovative. We will reengineer
our development process from idea generation to market introduction.  We’ll build from our core . . . expand product
lines and channels . . . develop new features . . . and make much more productive use of our assets. 
Strategic alliances have enhanced our service performance and created new products – think of GXG or the online
Movers Guide.  We’ll pursue new alliances where partners help us enter profitable markets, and offer new opportunities
to leverage our assets.    And we’ll continue to pursue outsourcing and insourcing when they creates more customer
benefit and better bottom-line results.

Slide 27: Affordable Universal Service
Image of a building with a triagular roof, three pillars, and a foundation.  On the roof is the phrase
"Affordable Universal Service".
On the left pillar of the building image are displayed the words Focus on What Matters Most to Customers
Start with Customer Needs
Provide Excellent Customer Experiences
Build on Relationships
Communicate Effectively
On the center pillar of the building image are displayed the words Leverage Our Strengths
Build on Network Reach and Capability
Use Information to Enhance Products and Performance
Empower Employees to Build the Business
On the right pillar of the building image are displayed the words Embrace Change
Use the Full Potential of the Internet
Be a Sustainability Leader
Collaborate to Grow the Business
At the bottom foundation of the building image are displayed the words "Strong Foundation"
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
Slide Notes:
Recap:
Vision 2013 is our roadmap for building our business and sustaining a strong, viable Postal Service during turbulent times. 
We are building on a solid foundation of service and efficiency.  
. . . We must adapt to changing customer needs to remain viable and grow the postal business.  
. . . We have many competitive strengths to leverage in order to create new value.  
. . . And we must embrace change, incorporating new technology and new approaches to respond more quickly to changing customer needs, to ensure affordable universal service for future generations.


Slide 28: Ideas and Suggestions
Images of the USPS Vision 2013 Overview brochure and Vision 2013 full document
Image of the Postal Service Logo in the upper left corner of the presentation, blue eagle head with the words United States Postal Service
transformation@usps.com
Slide Notes:
A printer-friendly version of plan and the short overview can be downloaded on usps.com.
So please let us know what you think!

Questions . . . ?

1