Postmaster General Restructures U.S. Postal Service

WASHINGTON — A 16 percent reduction to the officer ranks, realigning revenue-generating business units and closing one Area office are among steps taken today by Postmaster General Patrick R. Donahoe to create a leaner, faster, smarter U.S. Postal Service.

While cost savings will be realized, the main objective of the restructuring is to enhance and strengthen customer service and relationships. The realignment flattens the organization, enabling flexibility to more quickly adapt to changing market forces and continuing mail volume decline.

The actions today also provide a more integrated focus toward accomplishing key business goals: Strengthening the business-to-consumer channel; improving the customer experience; competing for the package business; and becoming a leaner, faster and smarter organization.

“It is imperative that the Postal Service continue its evolution as a forward-thinking, fast-acting company capable of providing quality products and services for customers and a welcoming, diverse, professional workplace,” Donahoe said.

Major changes include:

* Developing both market dominant and competitive products now is the responsibility of one officer, the vice president of Domestic Products. Where those products are sold – in retail, online or in alternative spaces – becomes the responsibility of the vice president of Channel Access.

* All customer interaction and support, whether for large corporations, small businesses or individual consumers, will be the responsibility of the vice president of Consumer and Industry Affairs. The Consumer Advocate remains a vital part of customer service and will report to this officer.

* The engineering technology and systems that keep mail moving and prepare the Postal Service for the future of mail, including Intelligent Mail, will become an integral part of the Information Technology department.

* All Human Resources functions will be led by the Chief Human Resources Officer, supported by the vice presidents of Labor Relations and Employee Resource Management.

* The Chief Sustainability Officer will continue the leadership role in greening the Postal Service and the mailing industry. This officer will report to the Deputy Postmaster General.

* The senior vice president title has been eliminated.

The Southeast Area Office, based in Memphis, TN, will be closed to help streamline Postal operations. All previous Southeastern districts now will report to the Southwest Area Office, with two exceptions: Tennessee District will report to Eastern Area and Atlanta District will report to Capital Metro Area. No implementation date has been established yet.

“The Postal Service is committed to making necessary changes to continue to provide quality service to our customers and to reinforce the value of the mail,” Donahoe said. “Ensuring customer satisfaction is the ultimate goal of all plans and strategies we develop.”

via USPS News Release: Postmaster General Restructures U.S. Postal Service.

  • Charley

    A leaner, flater postal service without eliminate a level of management. Areas accomplish nothing that HQ could do. Let’s eliminate Area Staffs, move AVP to HQ and have them handle their Districts as MPOOs handle their offices. Why should their be one Analyst doing a report at HQ, so a different Analyst can do it at the Area, so finally the districts can pull a report that drives action. We are in the computer age, with a little programing the HQ report should provide all that is needed.

    Donahoe shows his alligence to the AVPs instead of the Postal Service.

  • M. Jamison

    At first blush this seems no more than window dressing, little more than moving boxes around on an organizational chart. What remains is the same echo chamber where the same tired voices repeat the same group-think. There is no indication that those who lead the organization have any recognition of the real problems that confront this organization, a crippling, dissonant management culture, an outmoded and unsustainable business model and a Byzantine regulatory and rate structure overseen by a feckless and ineffective Congress.

    The prescriptions will be the same, cut service, shed jobs, retrench and dissemble. The Postal Service needs a new strategic vision that recognizes the value of the network as an integral part of our national infrastructure and builds on that potential by focusing on our core mission of binding the nation together – something that easily translates into building our last-mile capabilities while recognizing the value and potential of our retail, delivery, data and intellectual property infrastructure. Part of articulating a viable strategic vision will also entail the willingness to engage in some serious truth telling to those on Capitol Hill who have used the Postal Service as a cash cow and a whipping boy for far too long. Another component must be a willingness to reorient an institutional culture that is far too autocratic, top heavy, and deaf to any but its own voice.

  • Rob

    What else can they do w/o incurring the wrath of Congress, the Unions or their customers…..inevitable to close more areas until only five areas previously called regions. Headed back to five regions just like the 80s and 90s…

  • Isaac Cox

    I was going to say what M. Jamison said…

  • Nutzy

    P.G. restructures USPS
    Its the same old five knuckel shuffel!!!look close he is creating jobs for his friends.

  • Ralf

    Ha Ha Ha~
    Postmaster General, You have Area, Vps, District & their yes men and women, driving in USPS owned cars, usinf USPS ga, with USPS credit cards, working-I meanvegitating in high rent buildings in private parking spaces.
    It add insult, you give millions in quarterly bonuses to these parasites.
    We’re falling apart, and you are too blind to see it.

  • Ralf

    Wall Street judges a business by its workers parking spaces. If its management parks separate from its labor, then it’s a failing business because it doen’t get a long with its labor.
    Look in the mirror. Your labor hates you. Your brutal 1880s business model of battering elder employees to retire, employees leaving via ambulances. No Christmas parties, and routine letter of warning parties.
    How do you plan to move forward without your labor?

  • david miranda

    Great, now only thirty six people report to him. That should make things easier. Both the labor that hates management and management need to get a grip on reality. According to the unions it’s always managements’ fault and vice versa…they decry the so called spin management is using during negotiations while disregarding the spin they are creating ….such as: we agreed to use the numbers but we didn’t agree with the numbers….reality is right in front of our eyes…mail volume continues to shrink…so we can complain all we want …consolidate facilties (which has worked so well in Ohio) or we can get to work and address the truth….stop making stupid moves like providing golden parachutes to people who have screwed up while there is no money available for raises to those who actually do the work….address poor performance once ad for all….I hope Congressman Issa does half of what he intends to do to see how we will react then…

  • Finally

    A PMG who is willing to get the dirty work done and start saving our company.

  • 8 mile walker

    WE need a business leader not an inside fool!

  • Jack

    At least he is starting at the top
    and working his way down.
    Good for him. I hope he
    gets rid of Saturday too.

  • cyclops

    lets change our name back to the U.S. Post Office. We may as well, we are definitely not a SERVICE anymore!!!

  • So There!!

    For once there’s some informative comments posted here (except for Ralf). As an employee directly effected by the decision to close SE, it’s about time we have a PMG that’s willing to make the hard decisions that Potter was not. More re-alignments are coming, folks. Districts will be consolidated as will HQ functions. Look for more work to be contracted out, such as the VMF’s. If you’re offered a VERA, seriously consider taking it. Pat may not be perfect, but he’s going to do what it takes to turn this organization around.

  • mofo

    16% – a good start

  • Can be done!

    Many have suggestions, however, the USPS is a very complex service. Be willing to try what the leadership is attempting to do. They are responsible for the outcome and will answer to our Lord at the great white throne.
    Having worked from the backdoor of a small post office up to a detail in the Southeast District and now retired after 42 years of service, there are definite changes needed! Be willing to do what it takes as we all want this service to continue into the future!
    Best wishes, Pat, as you work to make the necessary changes, consolidations, and closings.

  • paul grzesiak

    The billions of dollars paid to Fed-Ex and UPS over the years by the US Postal Service is criminal. Those two business’s take our money and then have the mail that we paid them to deliver brought back to the POST OFFICE at a lower rate and we deliver the package or parcel because we are mandated to reach every municipality, business and home in this country (the USA). Those businesses do not have the same mission or duty. Fed-Ex and UPS can cherry pick the mail and packages and deliver to the dense population and forget the rural or less populated areas because it is not financially profitable. USPS has lost money while the other carriers have made a profit on this ill advised busi-
    ness model. On top of that the top executives in the USPS have made bonuses on Paid For Performance and the red ink is flowing. Anyone out there knows how to retrieve wage and bonus statistics for all VP, PCES and EAS Positions leave a notice. Thanks

  • Victoria

    A number of post offices are slated to be closed in small neighborhoods in our area. I suggest that the postal service use mobile (van) post offices for these areas, which would enable them to offer the same services but just once a week in each area, on a schedule, but still save money with closures of the sites. I suggest that this is a good idea for many areas in the U.S. Many of these areas have disabled and elderly who cannot drive to a major post office in their city. This would provide the same level of service but on a weekly schedule.

    I also firmly believe we can survive on a MWFS mail delivery schedule.