What the ‘New’ US Postal Service  Means for Your Business

By Kathy J. Siviter

The U.S. Postal Service (USPS) is in the midst of a sweeping reorganization and change in focus, which began with the October 2010 appointment of a new postmaster general, followed by significant organizational changes in January, which will continue for some months to come.

What does this mean for cross-channel retailers and others who depend on the use of the mail? According to the new postmaster general, it means a new focus on improving the customer experience and growing the mailing business.

Changes Began at the Top
The USPS's organizational changes really began when former Deputy Postmaster General Patrick Donahoe was appointed postmaster general (PMG) upon the retirement of former PMG Jack Potter.

To date, the new PMG has made changes or announced plans which include a 16 percent to 25 percent reduction in the USPS's headquarters/senior management ranks; a possible reduction in workforce and/or voluntary early retirement process to come; a new "flatter, leaner" organization; consolidation/elimination of field organizations at the area and district levels; and a more aggressive focus on network design changes, including consolidating processing facilities and post offices.

Along with the new leadership at the USPS comes a new focus: improving the customer experience and growing the mailing business — both for the USPS and for companies and service providers that use the mail.

The USPS has created a new consumer and industry relations organization as the first step in its efforts to improve the customer experience. The organizational changes to date also bring new resources and focus to the USPS's information technology, engineering, mail acceptance/postage payment and product information organizations under one umbrella, headed by a newly appointed chief information officer with a strong operations background.

Concrete Changes in Approach Already Being Seen
Proving it not only can "talk the talk" but also "walk the walk," the USPS's leadership already is putting in place changes that demonstrate its new approach.