Flexibility and Authority Needed to Close $20 Billion Gap
WASHINGTON, July 17, 2013 /PRNewswire-USNewswire/ — Postmaster General Patrick R. Donahoe told a House committee today the Postal Service continues to face systemic financial challenges because it has a business model that does not allow it to adapt to changes in the marketplace and it does not have the legal authority to make the fundamental changes that are necessary to achieve long-term financial stability.
In his latest State of the Business video, PMG Pat Donahoe describes the progress USPS has made mid-way through 2013, along with some of its plans for the rest of the year.
Donahoe says the Postal Service made notable improvements in delivery times thanks to employee efforts to raise service performance. “Our service continues to remain at all-time highs with the on-time delivery of all the mail — First-Class Mail, periodicals and standard packages,” he says.
Revenue also increased by $400 million, due to increased package business and Standard Mail. The PMG says the new seven-year delivery contract USPS recently signed with FedEx offers substantial savings over the previous agreement.
Looking ahead to the second half of 2013, Donahoe describes upcoming changes to Priority and Express Mail. Both services will go under the name Priority Mail. To help customers determine exactly when they can have their packages delivered, USPS will offer Priority Mail 1-Day, 2-Day and 3-Day services along with Priority Mail Express.
Along with guaranteed delivery times, customers will benefit from the Postal Service’s progress in scanning. Donahoe notes that USPS has produced 2.5 billion more scans this year than last.
“This is going to give us tremendous coverage and the real-time scans our customers want,” he says. “That means a lot more package business and a lot more revenue.”
The PMG closes the video by thanking employees for their continued hard work. “You’re doing a great job,” he says.
May 3 Bloomberg — U.S. Postmaster General Patrick Donahoe talks about the Postal Service’s projected loss, challenges and the need for legislation in Congress to help the agency cut costs. He speaks on Bloomberg Television’s "Conversations With Judy Woodruff." Source: Bloomberg
WASHINGTON, April 17, 2013 /PRNewswire-USNewswire/ — Postmaster General Patrick R. Donahoe told a House committee today that the Postal Service is currently operating with a broken business model and the gap between revenues and costs will only get worse in the coming years unless the laws that govern the Postal Service are changed.
“Our financial problems are due to the restrictive laws that prevent us from fully responding to changes in consumer behavior,” Donahoe testified before the House Oversight and Government Reform Committee. “Any private sector company could quickly adapt to the market changes we have experienced, and remain profitable. However, we do not have all of the flexibility we need to adapt to a changing marketplace.”
The report was apparently based on comments made at a recent “Industry Focus Group”.
In a related item, the Cleveland Plain Dealer reported that the Postmaster General told Congress that “the post office will run out of money this year unless it gets help… as he sought permission to cut delivery to five days a week.”
Before you get too excited about the PMG’s dire warning (or reporter MacFarlane’s “scoop”), I should tell you that the PMG who issued that warning wasn’t Pat Donahoe- it was Jack Potter, and the Plain Dealer story is from 2009.
And they wonder why their warnings aren’t taken seriously?
In his latest State of the Business video, PMG Pat Donahoe addresses some of the mixed messages employees may be hearing regarding the future of USPS.
The PMG begins the video by focusing on the steps the Postal Service is taking to address the financial challenges created by declining First-Class Mail volumes.
“We will continue with the necessary actions that we have to take — things that we can control,” says the PMG. These actions include network consolidations; the Post Plan; and discussions with Congress and stakeholders regarding the USPS plan for 6-day package, 5-day mail delivery.
“When all these things are done, that will be it for the big, major changes,” Donahoe says.
The PMG then clears up misinformation employees may hear on postal issues, such as fears that a move to six-day package, five-day mail delivery will result in massive layoffs. “We have made major changes in this organization without having to lay anyone off,” says Donahoe.
He also emphasizes that there are no plans to reduce mail delivery to fewer than five days a week, saying that doing so would be detrimental to the Postal Service’s business. He points out that five-day delivery is critical for commercial First-Class Mail.
The PMG closes by thanking employees for their hard work, noting that service levels remain at an all-time high, thanks to employee dedication.
Urges Mailing Industry to Focus on Innovation in Delivery, Digital Integration and Targeting
SAN FRANCISCO, March 18, 2013 /PRNewswire-USNewswire/ — Technology and changing consumer expectations are helping to transform mail into an even more powerful communications channel, Postmaster General and CEO Patrick R. Donahoe told the nation’s largest annual gathering of mailing industry leaders today.
“As the mailing industry, we must continue to work to drive innovation and leverage data and technology to improve the consumer experience and grow revenue,” Donahoe said in his keynote address at the National Postal Forum. “Our challenge as an industry is to shape those moments when people are experiencing mail, and make them more powerful in the future. That’s part of getting our game on — shaping our future and building excitement about the power of mail and the future of mail.”
I am pleased to announce the appointment of Randy S. Mlskanic as Vice President, Secure Digital Solutions. Randy’s expertise at the intersection of digital technology and online security makes him the ideal person to lead our important investments in digital product development. Read the rest of this entry »
In an exclusive interview with MSNBC’s Craig Melvin, Postmaster General of the United States Patrick Donahoe talks about the future of the U.S. Postal Service—and says the organization will soon start delivering packages on Sundays.